Defence land sale plan prompts interest from SA and worry from Tasmania

Feb 2026
land sale ... Defence Minister Richard Marles (left), Finance Minister Senator Katy Gallagher and Assistant Defence Minister Peter Khalil at a press conference at Parliament House in Canberra. Photo: Department of Defence
land sale ... Defence Minister Richard Marles (left), Finance Minister Senator Katy Gallagher and Assistant Defence Minister Peter Khalil at a press conference at Parliament House in Canberra. Photo: Department of Defence.

A proposed sale of Defence properties has involved contrasting reactions from South Australia and Tasmania.

A new Defence Estate Audit recommends that the federal government sell off 68 properties, which Canberra agreed to.

It was commissioned to assess the suitability of the Australian Defence Force’s (ADF) properties and believes $3 billion can be made from the sale of 68 sites nationwide.

Click here to read the audit in full

TASMANIA WORRIES ABOUT SALE

The Tasmanian Government says a decision to sell raises doubts over their ability to recruit and train cadets and reservists.

Veterans Affairs Minister Guy Barnett is seeking talks with Canberra; Tasmania has eight Defence properties slated for sale with leases to end at seven cadet training facilities.

A former Army instructor, Pearce says they are looking for reassurance from the Commonwealth.

“Our government has yet to be properly consulted on the plan proposed by the Federal Government,” he says.

“We need to be assured our local defence force personnel and future capacity are not put at risk.”

The deputy premier says a decision to walk away from sites such as the Navy Cadets’ Training Ship Sheean facility will upset many.

“Although we recognise that there may be some sites that are genuinely surplus to needs, the Federal Government failed to consult with communities and has sent a poor message about Tasmania’s role in defence with the scale of its proposed sell-off in our state.”

SA EYES OPPORTUNITIES

Meanwhile, the South Australian Government is eyeing four Defence properties across Adelaide as major urban infill sites.

The sites are: Woodside Barracks (145 hectares at Woodside), Warradale Barracks (23-ha at Oaklands Park), Hampstead Barracks (7ha at Greenacres) and Edinburgh Parks (7ha at Edinburgh).

The SA Government believes the land can be used for new homes, open spaces, allow for employment land and build community facilities and infrastructure.

Renewal SA is now investigating possible uses for the sites.

Reusing Keswick Barracks is another option once Renewal SA takes ownership of the site agreed to under a land swap with the Commonwealth, who wanted state land at Osborne for its AUKUS nuclear submarine building project.

SA Planning Minister Nick Champion says the sale of the sites would present an “incredible” chance for new residential and business development.

“There is no doubt these four sites present an incredible opportunity for thoughtful development for residential and employment projects,” he says.

“The next step is to undertake the investigations to see if that is an opportunity that can be realised.”

Woodside Barracks in Adelaide which the SA Government is eyeing as a possible urban infill site.
Woodside Barracks in Adelaide. Photo: Department of Defence

ABOUT THE DEFENCE AUDIT

The audit says there are too many historic or outdated Defence sites that are unable to cater for what is, or will be, required and that “urgent intervention” is needed.

Its first recommendation calls for a Defence sale of 68 properties: of those, three were already sold off (Magnetic Island and Garbutt (Qld) and Haberfield Training Depot (NSW). Partly sold off were HMAS Penguin (NSW), RAAF Williams Laverton (VIC) and Warradale Barracks (SA), whereas Pittwater Annex (NSW) will be kept.

The federal government says it intends to protect public access to historic sites.

All revenue will go back into funding upgrade work on northern bases; the audit expects to make up to $3 billion from the sale of these properties with up to $2.4 billion of that from large metropolitan properties.

Click here for the full list of sites

Deputy PM and Defence Minister Richard Marles says the ADF needs real estate that can allow it to serve most effectively now and into the future.

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

“We know this is significant and challenging but we are clear-eyed and committed to seeing it through.”

Finance Minister Katy Gallagher says her department has the expertise to manage the large Defence land salet program.

“This approach will ensure sites identified by the audit are sold at market value, with careful consideration of remediation, heritage and community impacts.”

Assistant Defence Minister Peter Khalil says the reforms are “a once-in-a-generation opportunity to reposition the Defence estate to ensure it meets the strategic challenges we are facing”.

“We will continue to support and engage closely with the community as these reforms are implemented.”

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