Among those listed is part of the historic and heritage listed HMAS Penguin site at Balmoral. Although the government documentation states all personnel associated with the critical capability will be retained onsite, an image of the Planned divestment of land at HMAS Penguin on Middle Head from the Defence Department website shows two thirds of the 16.64 hectare site will be sold, including pristine bushland which is host to an outstanding angophora forest.
The only site the federal government has decided to retain is a navy diving school, the Pittwater Dive annex, the former torpedo range building, on Pittwater, which underwent a major renovation and upgrade just a few years ago.
the RAN Pittwater Annexe today
The Headland Preservation Group (HPG) stated on Thursday (February 19) that selling off the land to developers would deny the community access to nature.
“Don’t be misled into thinking that developers will put up affordable housing – the location and views are such that it is most likely that luxury housing will be built,” said the group’s president Jill L’Estrange
“The Angophora forest is extraordinary. It stretches from Middle Harbour across the Middle Head ridgeline to Sydney Harbour. It is ecologically significant, visually stunning, and forms part of the 80-kilometre Bondi to Manly coastal walk, visited by thousands of people each year.
This land provides an important public benefit.
Sydney Harbour defines not only Sydney, but Australia internationally. Often described as one of the most beautiful harbours in the world, its values must be protected.
The natural headlands — North Head, Middle Head and Bradleys Head — frame the Harbour and provide rare natural respite within an increasingly urbanised city. These landscapes are the “lungs” of Sydney. They must not be compromised by further urban development.
Middle Head has long been described as the jewel in the crown of Sydney Harbour. We must not sell the Crown jewels.” Ms L’Estrange said
Selling the bushland rich site would also be killing the wildlife that live here through destroying their homes, continuing the very poor environment values of successive Australian governments through putting money before the lives of native trees and species.
Two Thirds of Site Slated to be sold
Although the exact boundaries of the land proposed for sale remain unclear, two different images show the whole site and another, labelled 'final plan', illustrates the planned divestment of land portion.
Image 1: shows full site boundaries of the HMAS site - from the Defence Department website
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Image 2: image labelled 'final plan' of land at HMAS Penguin on Middle Head from the Defence Department website
The Hon. Katy Gallagher, Minister for Finance, said on February 4:
“The Department of Finance has the expertise to manage the large-scale Defence estate divestment program.
“This approach will ensure sites identified by the Audit are sold at market value, with careful consideration of remediation, heritage and community impacts. Importantly, proceeds will be reinvested in key Defence priorities.”
The announcement was accompanied by a public version of the Defence Estate Audit and the Government’s response to it – agreeing or agreeing-in-principle to all 20 of the Audit’s recommendations. The Defence Estate Audit was delivered to Government in December 2023.
Commissioned following the 2023 Defence Strategic Review, key areas of focus for the Audit included strengthening the resilience of the Defence estate, mechanisms to accelerate delivery of major infrastructure, and options for consolidation of underutilised facilities.
All proceeds from sell-off will be retained within the Defence portfolio and be reinvested in National Defence Strategy priorities, including continuing to upgrade and strengthen our northern bases, the government stated.
The Hon Richard Marles MP, Deputy Prime Minister and Minister for Defence, said:
“In order for the Australian Defence Force to protect our nation and keep Australians safe, it must have a Defence estate that meets its operational and capability needs.
“For many years this has not been the case, with many Defence sites vacant, decaying, underutilised and costing millions of dollars to maintain. That is why the Albanese Government is undertaking the most significant reform to the Defence estate in Australia’s history.
“We know this is significant and challenging reform, but we are clear-eyed and committed to seeing it through, because it is the right thing to do in the national interest.”
The Department of Finance is already seeking expressions of interest from developers and investors for the portfolio. The approximate 10-12 hectare site at Balmoral, as shown above in what won;t be kept, would fetch millions. A Land Claim on a smaller site at Balmoral Beach in 2023 was stated to be worth around $100million then.
Stealing a People's Park
The government, in going ahead with the sell-off, is also taking an area that was dedicated to all Australians a quarter of a century ago.
The Headland Preservation Group (HPG) was formed in 1996 in response to the then Howard Government’s proposed sale of former Defence land at Middle Head for housing.
Following strong community advocacy — notably from Labor legends Jack Mundey and Bob Carr — in 2001 the Howard Government returned the land to the people of Australia as a gift marking 100 years of Federation. The Sydney Harbour Federation Trust was established to manage these lands and to conserve, preserve and interpret their cultural, heritage and environmental values for present and future generations.
''Fast forward to today, and another sell-off has been announced — this time by the Albanese Government. It is deeply ironic that the Labor Party, which once helped protect this land, is now proposing to divest part of Middle Head, one of our most precious heritage landscapes.'' said Jill L’Estrange
''The proposed divestment of parts of HMAS Penguin risks significant harm to the heritage and environmental values of this nationally important site.
It is unlikely to meaningfully address housing affordability, given the premium nature of the land. Instead, it risks facilitating luxury development at the expense of public benefit.
All sides of politics should oppose the sale of this highly prized public asset and ensure that the heritage, environmental and community values of Middle Head are protected for future generations.''
Warringah MP Zali Steggall has been working since February 4 on getting details out of the government. Ms Steggall visited HMAS Penguin in October last year, stating then:
'' It was an incredible honour to see first-hand how, from these sites, the Royal Australian Navy makes a vital contribution to our national defence capability and to the science and technology that underpin it.''
On February 11, Warringah's MP provided an update, stating:
''Following a briefing this week from the Government and officials on the Defence Estate Audit, I am updating the Warringah community on what has been outlined to date, including the implications for HMAS Penguin.
The Defence Estate Audit has identified more than 50 Defence sites across Australia as underutilised, with an estimated maintenance cost of around $2 billion over the next 25 years. The audit estimates net proceeds of $1.8 billion from divestment, based on $3 billion in revenue offset by $1.2 billion in transition costs. The Government has advised that sites will be sold at full market value, with the Department of Finance to lead the divestment process.
''While the need to raise funds from the Defence estate is understood, pursuing full market value for all sites means they are likely to be purchased only by well-resourced private developers, rather than ensuring land is used to meet pressing community needs. At a time of acute housing shortage, there must be serious consideration given to whether surplus Commonwealth land can support community use, affordable or social housing, or other uses with a broad public benefit - rather than being lost entirely to the private market.'' the Warringah MP said
''In relation to HMAS Penguin, the audit has determined that critical Navy diver and underwater medicine capabilities should be retained on site, with the remainder proposed for divestment. The Government has advised there is no set timeline for any sale and has committed to site-by-site consultation before decisions are finalised.
HMAS Penguin is an operational Defence site with deep historical, strategic and community significance. I have raised with the Government the importance of protecting its Defence capability, heritage values and connection to veterans and the local community.
During the briefing, I conveyed concerns raised by constituents, including war veterans, who fear that important military history could be lost through any divestment process. The Government has indicated it will engage with historical organisations such as the Australian War Memorial and state Shrines of Remembrance to ensure military history is preserved.
I have also been advised that the Department of Defence will engage with community organisations, businesses, personnel, veterans’ groups and sporting organisations that currently access Defence properties, including HMAS Penguin.'' Ms Steggall said
I will continue to seek detailed updates on the proposal to partially divest HMAS Penguin and will work to ensure the Warringah community is kept informed and that local voices are heard clearly and early in this process.''
HMAS Penguin is part of the historic First Nations and defence installations that define Middle Head.
Broken Bay and Pittwater's Bungaree was 'given' land here on January 31st, 1815 by the colonists - who obviously didn't know this is Cammeraygal land, of the 'Manly' peoples, nor did they recognise it wasn't theirs to give. The Sydney Gazette records:
On Tuesday last, at an early hour, His Excellency the GOVERNOR and Mrs. MACQUARIE, accompanied by a large party of Ladies and Gentlemen, proceeded in boats down the Harbour to George's Head.
The object of this excursion, we understand, was to form an establishment for a certain number of Natives who had shewn a desire to settle on some favourable spot of land, with a view to proceed to the cultivation of it. The ground as signed them for this purpose (the peninusla of George's Head) appears to have been judiciously chosen, as well from the fertility of the soil as from its requiring little exertions of labour to clear and cultivate; added to which, it possesses a peculiar advantage of situation; from being nearly surrounded on all sides by the sea; thereby affording its new possessors the constant opportunity of pursuing their favorite occupation of fishing, which has always furnished the principal source of their subsistence.
On this occasion, sixteen of the Natives, with their wives and families were assembled, and His EXCELLENCY the GOVERNOR, in consideration of the general wish previously expressed by them, appointed Boongaree (who has been long known as one of the most friendly of this race, and well acquainted with our language), to be their Chief, at the same time presenting him with a badge distinguishing his quality as "Chief of the Broken Bay Tribe," and the more effectually to promote the objects of this establishment, each of them was furnished with a full suit of slop cloathing, together with a variety of useful articles and implements of husbandry, by which they would be enabled to proceed in the necessary pursuits of agriculture : - A boat (called the Boongaree), was likewise presented them for the purpose of fishing.
About noon, after the foregoing ceremony had been concluded, HIS EXCELLENCY and party returned to Sydney, having left the Natives with their Chief in possession of their newly assigned settlement, evidently much pleased with it, and the kindness they experienced on the occasion. Sydney, SITTING MAGISTRATE—W. BROUGHTON, Esq. (1815, February 4). The Sydney Gazette and New South Wales Advertiser (NSW : 1803 - 1842), p. 1. Retrieved from http://nla.gov.au/nla.news-article629052
Bungaree didn't stay long.
The military heritage of Middle Head is unparalleled in Australia, spanning more than 200 years. A military presence was first established there in 1801 to protect the colony of New South Wales during the Napoleonic Wars.
The land was dedicated to defence purposes by 1870 as part of the Middle Head–Georges Heights headlands, which were strategically vital in defending the approaches to Sydney Harbour through the Heads.
That presence has continued to the present day, with HMAS Penguin remaining a strategic military asset.
HMAS Penguin comprises:
- A built environment constructed between 1940 and 1945 during World War II important for its Inter-War Classical Style of architecture and of exceptional significance as a purpose-built naval training and hospital complex.
- Several hectares of exceptional native bushland, including a spectacular Angophora forest of remarkable environmental and aesthetic value.
- Both the built environment and the native Angophora forest are Commonwealth Heritage Listed, Place ID 105581.
The Albanese Government's commissioned Report: Delivering the Future Estate: Defence Estate Audit Report (PDF, 4.26 MB)
Taylor's Point and Torpedo Testing- Divers Training Annex in 1960's - photo courtesy Gary Cook.
Section from 1950's Searle aerial showing Taylors Point wharf showing torpedo wharf much longer beside it - item: SLNSW_FL18904354, courtesy State Library of NSW