The Royal Australian Navy is selling Spectacle Island in Sydney Harbour, a secretive military outpost that has been off-limits to the public for more than a century. The island is one of 67 Defence-owned properties being divested as part of a federal government plan expected to raise up to $3bn.
Island's History and Current State
Spectacle Island served as a military outpost from 1865 to 2023, first as a gunpowder storage facility and later as a naval munitions store. During World War I and World War II, nearly 200 ordinance inspectors tested ammunition and gun barrels there. At its peak, thousands of workers occupied its four dozen buildings, including workshops, a chapel, residences, and storage facilities. Today, those heritage-listed buildings are superficially maintained but are reportedly in poor condition. Peter West, first assistant secretary of estate transformation at the Defence Department, described them as effectively 'falling down.'
The island is patrolled 24 hours a day by guards who boat in for their shifts. No vessels are allowed to moor within 100 metres or linger. The whole island is covered by a commonwealth heritage listing, meaning any redevelopment must preserve its historic character.
Sale Process and Potential Uses
Defence expects the sale to take two to five years. West noted that the department may pay for repairs as part of the deal, potentially reducing net proceeds from $3bn to around $1.8bn after remediation costs. However, he emphasised that profit is not the primary goal. 'Our estate is too old, it's too big and it's not in the right places. We need to slim down so we can invest in places where we need it,' he said.
Heritage consultant Kate Paterson of Urbis suggested that the buildings could be repaired and reused for cafes, museums, or other public amenities, citing the redevelopment of neighbouring Cockatoo Island as a successful example. West acknowledged that a transfer to an entity like the Sydney Harbour Trust, which manages Cockatoo Island, could be a 'neat fit.'
NSW Planning Minister Paul Scully described the divestment as a 'commonwealth government announcement about commonwealth owned land' and said the state government would engage constructively as opportunities arise.
Community and Heritage Concerns
A senate inquiry into the sale of defence properties has heard objections from locals, particularly regarding the sale of Victoria Barracks and parts of HMAS Penguin. David Burdon, NSW conservation director for the National Trust of Australia, urged Defence to reconsider, warning that selling these sites would be a loss of heritage for 'a blip in the budget for one year.' He added, 'We will have sold more than the family silver and, as many submissions have noted, we won't get them back.'
West said Defence has no firm opinion on the island's future use, so long as it is removed from its balance sheet. He noted that there is 'very much precedent for giving these lands to community and public use.' However, he confirmed that old military assets, including a rusting gun turret, will not be sold. 'I'm afraid we have to take all the guns,' he said.
