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Defence Ditches 64 Sites in China Scramble

The government will raise up to $1.8 billion by selling 67 underutilised defence sites to fund northern base upgrades and the AUKUS submarine program, aiming to save $100 million annually.

  • In Canberra on Wednesday the government revealed plans to sell 64 defence sites, with Defence Minister Richard Marles stating all proceeds will be reinvested into the military and the sale expected to raise nearly $2 billion.
  • The audit found large swathes of the 3‑million‑hectare defence estate were unnecessary and many facilities had deteriorated beyond economical repair, prompting divestment recommendations in December 2023.
  • High‑profile sites include Victoria Barracks Melbourne and Defence Plaza Melbourne, with Victoria Barracks Melbourne about 56% utilised and Defence Plaza Melbourne about 46%.
  • Irwin Barracks, Karrakatta will be sold, with about 1,150 reservists, 200 ADF personnel and 250 cadets relocating to Palmer Barracks, South Guildford requiring upgrades.
  • The sell-off aims to fund capability gaps and support northern bases and AUKUS infrastructure, with all sites handed over to the Finance Department over coming years to manage sales and an $8 billion redevelopment of HMAS Stirling underway.
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Sydney Morning Herald broke the news in Sydney, Australia on Tuesday, February 3, 2026.
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