The Royal Australian Navy is selling Spectacle Island in Sydney Harbour, a restricted site for over a century, as part of a federal divestment of 67 defence properties expected to raise up to $3bn.
Island's History and Condition
Spectacle Island served as a military outpost from 1865 to 2023, initially as a gunpowder storage facility and later a naval munitions store, playing a key role in both world wars. At its peak, nearly 200 ordinance inspectors worked there. The island features four dozen buildings, including workshops, a chapel, and residences, but Peter West, first assistant secretary of estate transformation, says they are effectively 'falling down' despite superficial maintenance. The entire island is covered by a commonwealth heritage listing, preventing demolition.
Sale Process and Potential Uses
Defence expects the sale to take two to five years. West noted that rezoning would be required, adding, 'I think the chance of Spectacle Island being rezoned for use as a billionaire’s playground is probably pretty low.' The department may pay for repairs, potentially reducing net profit from $3bn to about $1.8bn after remediation costs. West emphasized that profit is not the primary goal, stating, 'Our estate is too old, it’s too big and it’s not in the right places.'
Community and Heritage Concerns
Heritage consultant Kate Paterson of Urbis sees the heritage buildings as an opportunity, citing Cockatoo Island as a successful redevelopment example. The Sydney Harbour Trust could be a 'neat fit' for ownership, according to West. However, a senate inquiry has heard opposition from locals, with David Burdon of the National Trust warning of losing heritage for 'a blip in the budget for one year.' West noted that Defence has no firm opinion on the island's future, acknowledging 'very much precedent for giving these lands to community and public use,' but military assets like guns will not be sold.
