The Albanese government’s plan to sell Victoria Barracks in Sydney has faced renewed criticism following the rejection of a proposal to upgrade the site’s historic parade ground at no cost to the Defence Department. The upgrade offer, made by the Sydney Roosters rugby league club and Venues NSW, aimed to preserve the cricket pitch—one of Australia’s oldest—and maintain the surrounding turf while increasing community access through activities such as school cricket and female rugby league pathway matches.

Sources familiar with the discussions told reporters that while Army leadership supported the initiative, the Security and Estate Group (SEG), which manages defence property, ultimately blocked the plan. The barracks’ sale remains a contentious issue within the Labor Party and broader community.

Victoria Barracks, established in the 1840s, is among 67 defence properties slated for divestment nationwide as part of a broader strategy to raise $1.8 billion. The site holds significant historical and sporting connections. The nearby Sydney Cricket Ground (SCG), located on land originally granted to the military in the early 1850s, was initially known as the Garrison Ground, used by soldiers for cricket matches even before the barracks were constructed.

Venues NSW executive Phil Heads highlighted the longstanding relationship between the military and local sports institutions. The Sydney Roosters, based in nearby Moore Park, also have deep ties to the barracks. Historically, 77 of the club’s first 324 players served in the military, and the team maintains a formal partnership with the veterans’ group Invictus. The barracks’ parade ground has also served as a training site for the Australian rugby union team, the Wallabies, and hosted international teams such as France during the 2003 Rugby World Cup.

Opposition to the sale has come from within the Labor Party and the New South Wales government. Premier Chris Minns has publicly stated that Victoria Barracks should remain publicly owned and continue its military function. Members of Parliament Marjorie O’Neill and Greg Warren have also voiced opposition since the federal government announced its intent to sell the site earlier this year.

O’Neill criticized the federal government’s justification for the sale, arguing that the rejection of a no-cost upgrade that would have enhanced public access undermines claims that the base is too expensive to maintain. “If that’s not a win-win, what is?” she said.

The Defence Department has been contacted for comment regarding the decision and future plans for the barracks.