The Albanese Government has launched the most significant reform of the Australian Defence Force (ADF) estate in history, ensuring it is fit-for-purpose and equipped with the facilities and capabilities needed to keep Australians safe.
Today, the Government released the public version of the Defence Estate Audit along with its official response, agreeing or agreeing-in-principle to all 20 of the Audit’s recommendations.
Independent Audit Highlights Need for Reform
Commissioned following the 2023 Defence Strategic Review, the Audit, led by Ms Jan Mason and Mr Jim Miller, evaluated whether Australia’s Defence estate aligns with current and future ADF capabilities. Key areas of focus included:
- Strengthening the resilience of the Defence estate
- Accelerating delivery of major infrastructure
- Exploring consolidation of underutilised facilities
The Audit concluded: “Defence is constrained by the weight of its past when it comes to management of the estate. Today’s estate footprint comprises numerous legacy sites without a clear ongoing link to current or future capabilities. Urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues.”
Key Recommendations and Government Response
The Audit’s 20 recommendations aim to modernise the Defence estate and enhance ADF capabilities.
Recommendation One, which the Government has fully agreed to, calls for Defence to reduce its property holdings through targeted divestment of sites not aligned with current or future capability priorities.
Divestment Outcomes
- Total sites identified for divestment: 68
- Wholly divested: 64 sites, including three already divested: Magnetic Island (QLD), Haberfield Training Depot (NSW), and Garbutt (QLD)
- Partially divested: 3 sites – HMAS Penguin (NSW), RAAF Williams – Laverton (VIC), and Warradale Barracks (SA)
- Retained in full: 1 site – Pittwater Annex (NSW)
The Government is committed to preserving historically significant sites and enhancing public access to military heritage collections.
Divestment Management and Reinvestment
The Department of Finance will manage the divestment process, leveraging its expertise in large-scale property divestment and remediation, as well as compliance with the Commonwealth Property Disposal Policy.
All proceeds from these divestments will remain within the Defence portfolio, reinvested into National Defence Strategy priorities, including upgrades and strengthening of northern bases.
Government Statements
Richard Marles, Deputy Prime Minister and Minister for Defence, said:
“In order for the Australian Defence Force to protect our nation, it must have a Defence estate that meets its operational and capability needs. For many years this has not been the case, with sites vacant, decaying, underutilised, and costly to maintain. This is why the Albanese Government is undertaking the most significant Defence estate reform in Australian history.”
Katy Gallagher, Minister for Finance, stated: “The Department of Finance has the expertise to manage the large-scale Defence estate divestment program. This approach ensures sites are sold at market value, with careful consideration of remediation, heritage, and community impacts. Proceeds will be reinvested in key Defence priorities.”
Peter Khalil, Assistant Minister for Defence, added: “These reforms represent a once-in-a-generation opportunity to reposition Australia’s Defence estate to meet current strategic challenges and enhance regional stability. We will continue engaging closely with the community as these reforms are implemented.”
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Marles wouldn’t know what Facilities the ADF needs, he’s only interested in the Facilities that the U.S. want to use. By all means assess what is no longer relevant and superflous but some of the Buildings and bases earmarked have heritage value. Surely that must count for something. Marles claims it will make up to $3 billion that will be channeled back into Defence, more likely it will disappear into the AUKUS black Hole ….Gotta pay the Yanks for the Submarines we’ll never see.