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Tuesday, September 22, 2026

Marles wants Defence out of $3 billion sites ‘as soon as possible’

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Defence Minister Richard Marles has insisted he will not back down on a controversial plan to sell dozens of defence properties, even as the army sparked confusion by abruptly scrapping a plan to relocate all staff from one of the nation’s most iconic military sites by Christmas.

Marles declared he wanted to see staff removed from defence sites earmarked for sale by the end of next year as he faces fierce resistance from veterans, local communities, the Coalition and the Greens.

The government announced in February that 67 defence sites will be fully or partially sold – including the Victoria Barracks in Sydney, Melbourne and Brisbane – with an estimated sale price of $3 billion.

The Victoria Barracks in Paddington have been flagged for sale under the federal government’s defence review.Wolter Peeters

Liberal Senator Jess Collins, who chairs a parliamentary committee examining the defence estate sale, said on Tuesday night that Marles had given Army Chief Susan Coyle a verbal direction to clear Sydney’s Victoria Barracks by December 19.

“Everybody connected to Victoria Barracks Sydney, all the serving personnel, have been told to pack up and go,” Collins told News24, formerly Sky News.

A defence spokesperson said on Wednesday the army had mistakenly said all staff would be relocated to Sydney’s central business district by the end of the year.

“Defence can confirm that an Army internal planning order was issued to commence detailed planning for the relocation of specified Army units from Victoria Barracks, Sydney,” the spokesperson said.

“An initial version of the Army planning order erroneously stated that relocation from Victoria Barracks Sydney was to be complete from the end of 2026. The planning order has been rescinded.”

Planning is still under way for some staff to start relocating this year, the spokesperson added.

Victoria Barracks staff had been preparing to hear more details at a meeting on Tuesday.

The barracks in Paddington, built between 1841 and 1848, is a prized possession of the defence force and used as the army’s Headquarters Forces Command.

The defence spokesperson said the transition and divestment of the barracks will “be managed carefully and sensitively, supporting our people, families and the broader Defence community while preserving its heritage, history and legacy”.

“Detailed planning is underway to ensure continuity of capability and minimise disruption throughout the transition,” the spokesperson said.

Collins said the about-face showed the government had failed to adequately plan how to manage the sale of scores of defence properties around the country.

Senator Jessica Collins during a Senate estimates hearing in February this year.Dominic Lorrimer

The plan has attracted fierce criticism from veterans and local communities, who have accused the government of selling off Australia’s military heritage for a short-term revenue sugar hit.

The Senate Standing Committee on Foreign Affairs, Defence and Trade last week called for the government to “immediately halt the mass divestment program of Australia’s foundational Defence estate and the work of the Defence Estate Audit divestment program, until a proper public consultation process is completed, and legislative checks and balances are in place”.

A petition launched by Coalition defence spokesman James Paterson opposing the sale has gathered over 82,000 signatures.

Marles said the government has no intention of changing course, telling reporters on Tuesday: “We are spending hundreds of millions of dollars maintaining sites that we don’t use.”

He said Australia confronted “a really serious moment in the nation’s history, and it matters that we have a defence estate which is fit-for-purpose”.

“It matters that we have a government which is willing to make difficult decisions. It does not matter that we happen to have the oldest wine cellar in Sydney at Victoria Barracks Sydney. That is not a core capability,” he said.

“Let’s be clear about Victoria Barracks Sydney. Most members of the Army have never been to Victoria Barracks Sydney. Victoria Barracks Sydney is effectively off limits to the people of Sydney and the people of Australia.”

Marles said the government had made clear “we wanted Defence out of all of these sites, including Victoria Barracks Sydney, over the course of the next two years” and “we’re a fair way into that period of time”.

“It is the government’s expectation, it is my expectation, that we are seeing Defence get out of those sites as soon as possible,” he said.

The defence estate sale will expand the public’s access to important historical sites, Marles said.

RSL NSW has called for its 30,000 members to lobby the government to abandon the sale of Victoria Barracks, which it calls “the spiritual home of the Australian Army in NSW”.

“For generations, Australian servicemen and women have marched through those gates, worked in those buildings and served our nation from that site,” RSL NSW President Vince Williams said last month.

He continued: “Once Victoria Barracks is sold, it is gone forever. There is no buying it back in another 20 or 50 years when somebody finally realises what we gave away.”

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Matthew KnottMatthew Knott is the foreign affairs and national security correspondent for The Sydney Morning Herald and The Age.Connect via X, Facebook or email.

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