Media Releases

11 February 2026

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.

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.

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.