Delivering the Future Defence Estate

The Albanese Government is undertaking the most significant reform to the Defence estate ever to ensure it is fit‑for‑purpose – providing the ADF with the facilities and capabilities it needs to keep Australians safe.

Today, the Albanese Government has released a public version of the Defence Estate Audit and the Government’s response to it – agreeing or agreeing-in-principle to all 20 of the Audit’s recommendations.

Commissioned following the 2023 Defence Strategic Review, Ms Jan Mason and Mr Jim Miller led an independent process to assess whether the estate is fit‑for‑purpose and provides the Australian Defence Force (ADF) with the facilities and capabilities it needs to keep Australians safe.

Key areas of focus for the Audit included strengthening the resilience of the Defence estate, mechanisms to accelerate delivery of major infrastructure, and options for consolidation of underutilised facilities.

The Defence Estate Audit found: 

“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.”

The Audit’s 20 recommendations aim to transition the estate toward a more modern, future‑focused and fit-for-purpose capability that best enables the ADF in its tasks. 

The Audit’s first recommendation, which the Government has agreed to, calls for Defence to “reduce its property holdings through focussed divestment of sites at market value in areas not aligned with current or future capability priorities”.

The Government received the Audit at the end of 2023 and has since taken the necessary and appropriate time to assess potential impacts on personnel, capability and broader community groups.

A total of 68 sites were identified for divestment by the Audit. Following assessment, the Government has agreed to: 

• Wholly divest 64 sites, three of which have been divested since the Audit’s commissioning: Magnetic Island (QLD), Haberfield Training Depot (NSW) and Garbutt (QLD)
• Partially divest three sites: HMAS Penguin (NSW), RAAF Williams – Laverton (VIC) and Warradale Barracks (SA)
• Retain in full one site: Pittwater Annex (NSW)

Some of the sites are historically significant and have important meaning to current and former Defence personnel. The Albanese Government is committed to preserving and enhancing public access to historically significant sites and collections so that all Australians can celebrate our proud military history.

As part of the divestment process, the Department of Finance will manage the new divestments arising from the Defence Estate Audit. 

Finance is leading this process due to its experience in managing large-scale divestment programs, expertise in divestment and remediation, and oversight of the Commonwealth Property Disposal Policy and other land policy and legislation.

All proceeds from divestments under this process will be retained within the Defence portfolio and be reinvested in National Defence Strategy priorities, including continuing to upgrade and strengthen our northern bases.

The Albanese Government thanks Ms Jan Mason and Mr Jim Miller for their diligent, focused Audit, drawing on their experience in estate management, infrastructure development and financial governance.

The Albanese Government is committed to ensuring the Australian Defence Force has the facilities and capabilities it needs to keep Australians safe. This means making the hard decisions to transition to a modern Defence estate that reflects the needs of our nation and our Defence personnel.

A copy of the final report and the government’s response is available here: https://www.defence.gov.au/about/reviews-inquiries/defence-estate-audit

A full list of sites is available here: https://www.defence.gov.au/about/locations-property/delivering-future-estate

The Department of Finance expression of interest site is available here: https://www.finance.gov.au/government/property-and-construction/divestments/defence-estate-audit

Quotes attributable to Richard Marles, Deputy Prime Minister and Minister for Defence: 

“In order for the Australian Defence Force to protect our nation and keep Australians safe, it must have a Defence estate that meets its operational and capability needs.

“For many years this has not been the case, with many Defence sites vacant, decaying, underutilised and costing millions of dollars to maintain. That is why the Albanese Government is undertaking the most significant reform to the Defence estate in Australia’s history.

“We know this is significant and challenging reform, but we are clear-eyed and committed to seeing it through, because it is the right thing to do in the national interest.”

Quotes attributable to Katy Gallagher, Minister for Finance:

“The Department of Finance has the expertise to manage the large-scale Defence estate divestment program.

“This approach will ensure sites identified by the Audit are sold at market value, with careful consideration of remediation, heritage and community impacts. Importantly, proceeds will be reinvested in key Defence priorities.”

Quotes attributable to Peter Khalil, Assistant Minister for Defence: 

“We promised to ensure taxpayer money spent within Defence is aligned with the public’s expectations, and that’s exactly what we’re doing.

“These reforms present a once in a generation opportunity to reposition Australia’s Defence estate to ensure it meets the strategic challenges we are facing, and enhance our ability to maintain the stability of our region.

“The Defence estate plays such an important role for our Defence personnel and within the broader community. We will continue to support and engage closely with the community as these reforms are implemented.”

Media note

Media can access imagery/vision at http://images.defence.gov.au/S20260106