Defence to Sell Canberra Golf Course in $1.8 Billion Estate Overhaul
Defence Sells Canberra Golf Course in $1.8b Overhaul

Defence to Divest Historic Sites Including Canberra Golf Course in Major Estate Reform

The federal government has announced a sweeping overhaul of the Defence estate, with plans to sell off more than 60 historical sites across Australia. This strategic divestment is projected to generate up to $1.8 billion for the military's budget, while simultaneously reducing substantial annual maintenance costs.

Canberra's Fairbairn Golf Course Among Key Properties for Sale

One of the most notable sites earmarked for sale is the Fairbairn Golf Course in Canberra. This former Royal Australian Air Force military air base, which boasted a membership of nearly 900 last year, is part of a broader portfolio of 67 Defence properties identified for partial or full divestment. The decision follows a comprehensive audit of Defence's extensive estate, which spans 2.8 million hectares nationwide.

The audit revealed that Fairbairn is among 14 Defence-owned sites currently vacant or only occasionally used. This underutilisation has prompted the ACT government to explore acquiring Defence land in South Pialligo, where disposal processes are already underway.

Historic Barracks and Costly Maintenance Drive Reform

Other significant properties set for sale include the historic Victoria Barracks sites in Sydney, Melbourne, and Brisbane. Combined, these iconic locations are estimated to be worth approximately $1.3 billion. The divestment strategy is not solely about raising capital; it also aims to address the financial burden of maintaining aging and unsustainable facilities.

Auditors found that many older Defence sites have deteriorated beyond repair, with some incurring exorbitant upkeep costs. For instance, the Defence site in Maribyrnong, Victoria, has cost taxpayers $2.8 million for maintenance despite being partially destroyed by a fire in 2022.

Financial and Operational Benefits of the Estate Overhaul

According to government analysis, divesting 68 sites would save Defence around $100 million per year in sustainment expenses. All proceeds from the sales will be reinvested into Defence, although some transactions may take several years to finalise. The Department of Finance will assume responsibility for managing the divestiture process.

Defence Minister Richard Marles, who commissioned the audit in August 2023, described the initiative as "the most significant reform to the Defence estate in Australia's history." In a statement released on Wednesday, Mr Marles emphasised that the Australian Defence Force requires an estate that meets its operational and capability needs to protect the nation effectively.

"For many years this has not been the case, with many Defence sites vacant, decaying, underutilised and costing millions of dollars to maintain," he stated.

Impact on Defence Personnel and Broader Restructuring

The sale of these properties will affect hundreds of Defence staff, who will be relocated to nearby vacant office spaces. This includes the recently refurbished Defence Plaza office complex in Sydney's CBD, which the government reports sits empty 40 per cent of the time.

This estate reform coincides with Defence's preparation for its most substantial organisational overhaul in over five decades. The restructuring will involve merging three agencies into a new independent body tasked with managing major military projects.

The release of the audit marks a pivotal step in modernising Defence's infrastructure, ensuring that resources are allocated efficiently to enhance national security capabilities.