The Albanese government has abandoned plans to sell Victoria Barracks in Paddington, Sydney, after public pressure against the sale. The decision, announced on Sunday, means the 186-year-old colonial-era sandstone military headquarters will remain in government hands.
The government had planned to dispose of the site as part of an attempt to claw back $3 billion in taxpayer money through its estate reforms. The sale was proposed following a Defence Estate Audit released in February, which identified 67 sites for full or partial divestment. The audit included historic assets also called Victoria Barracks in Melbourne and Brisbane.
The government has also reversed course on selling land containing an ancient Angophora red gum forest inside HMAS Penguin on Sydney Harbour. That land will now be handed over to the Sydney Harbour Federation Trust, while the site's physical structures and beach will be retained for the Defence Force.
Victoria Barracks will no longer be used as an active Australian Defence Force facility. Instead, it will be opened to the public, and part of the space will be commercialised to fund maintenance of the building. Part of the site may also be developed.
Prime Minister Anthony Albanese said he had lived in Sydney his whole life and that Sunday's announcement was the first time he had stepped inside Victoria Barracks. “This is an asset for Sydney that should be opened up for Sydneysiders,” he said. “Most Sydneysiders have not been to this beautiful site.”
The Headland Preservation Group, which has been protesting plans to sell part of HMAS Penguin at Balmoral, described the decision on the forest and the Balmoral site as a great result. The group said it was the outcome it had been advocating for.
Before the reversal, a rally against the proposed sale had brought together political opponents, veterans, serving military personnel and community members. Their objections extended to the heritage of a central Sydney site used by the military since the 1840s, and to how the government decides which parts of the Defence estate it can relinquish. Objectors also questioned whether affected communities had a meaningful opportunity to influence those decisions.
A Senate committee, the Foreign Affairs, Defence and Trade References Committee, released an interim report on 16 September recommending an immediate halt to the divestment program. Its final report is not due until early 2027, while Defence had been preparing to vacate Victoria Barracks Sydney this year.
Defence has argued that the site is underused and that personnel can be accommodated elsewhere. During Senate committee hearings on government spending estimates in June, however, Defence said it did not collect data on any one site's maintenance cost, which left the financial case for the sale open to question.