Backlash that forced the retreat

The planned defence property sale of four heritage-listed sites has been abandoned, with the government confirming on Sunday - ahead of a cabinet budget meeting on Monday - that Victoria Barracks in Sydney and Melbourne, Fort Queenscliff and RAAF Base Point Cook in Victoria will stay publicly owned. Once defence personnel leave, their historic elements will be preserved for community use.

The reversal followed fierce opposition, including:

• •the public campaign group Save Victoria Barracks Sydney
• •veterans
• •high-profile politicians including former prime ministers John Howard and Paul Keating

NSW opposition leader Kellie Sloane called the site an irreplaceable part of Australia's military heritage deserving protection for future generations, saying "Our military heritage and defence capability must come before a short-term cash grab".

What the audit found and the money at stake

The sites, along with 63 others, were identified in an independent audit as underutilised by defence, not fit for purpose and costly to maintain, and had been earmarked for sale to recoup $3bn in the federal budget. The multi-year audit, completed in 2023, was tasked with identifying surplus and costly property holdings, and found underutilised sites draining resources from higher priority needs. It warned that "Urgent interventions are needed to correct the unsustainable trajectory that has resulted from decades of deferred decisions on contentious estate issues".

• •The Sydney and Melbourne Victoria Barracks sales were expected to raise $1.3bn, given their prime locations in the biggest capital cities.
• •Up to $2.4bn was expected from the sale of 26 major metropolitan sites, with about $3bn saved in upkeep and security costs over 10 years, including sites in Randwick, Sandringham, St Kilda, Petrie Terrace and Fremantle.

Government case: capability over real estate

Defence Minister Richard Marles said the military must focus spending on keeping people safe and cannot afford to waste money. "Given the strategic landscape we face, we cannot afford to be wasting money," he said.

Marles said that by moving personnel off the sites and working to open them up for the public, the government is ensuring the history of Victoria Barracks is protected and returned to all Australians. Prime Minister Anthony Albanese said Victoria Barracks Sydney held a "special place in our nation's history".

Coalition keeps fighting for other sites

Shadow defence minister James Paterson said questions remain about whether the military should have a presence and capability in Melbourne and Sydney, and that while the reversal is a win for Australia's defence heritage, "it is only the beginning". The Coalition will continue to fight to save other critical defence sites including HMAS Penguin, Lancer Barracks and Irwin Barracks.

What happens to the sites next

Sydney's Victoria Barracks was built between 1840 and 1848, was originally occupied by the British army, and hosts the city's oldest wine cellar. The government hopes the wider sales free up land for housing, with a long-term target of 6,000 new dwellings.

Defence expects personnel will have vacated six sites by the end of the year. Once the sites are free, the government will work with the Australian War Memorial to transform them into public spaces that tell the history of Australia's military.