Defence Strategic Review: Victoria bears brunt of defence project cancellations

A high-level decision to cancel four Victorian defence projects has come under fire, with concerns about the future of bases in the state as focus turns to the north.

A high-level decision to slash funding from several Victorian defence projects has come under fire from the defence community.

The federal government is overhauling 33 projects nationwide in response to the landmark Defence Strategic Review (DSR), as it seeks to make savings and put greater focus on the northern approach to counter the threat of China.

But the move to bolster operations in the north has sparked concern about the future of bases in Victoria, with the opposition warning that the livelihoods and futures of defence personnel and industry “are hanging in the balance”.

Out of six defence projects cancelled nationwide, four were located in Victoria.

That includes the Australian Army Tank Museum at Puckapunyal was due to re-open as the Combined Arms Heritage Learning Centre with new collections in late 2024.

Veteran and Seymour RSL vice-president Andrew Cox said the decision to cancel the project was disappointing, adding “unhappy would be an understatement” about how museum volunteers felt.

The Australian Army Tank Museum at Puckapunyal is one of four Victorian defence projects being cancelled under the Defence Strategic Review.

Mr Cox said money to preserve military collections should come out of a different pot that can’t be axed due to a change in government.

“It’s disappointing to see another defence project have money pulled out from underneath it and have so much time and effort and resources wasted,” he said.

Mitchell Shire Mayor Fiona Stevens said the council was “devastated”, adding the timing of the announcement cut even deeper because Seymour was recently hit hard by floods.

She said the educational and recruitment component planned for the museum aligned with several DSR recommendations, and would have helped support veterans.

“The museum will be a national tourist attraction that would educate and benefit the wider community,” Ms Stevens said.

“The project was shovel ready, so why would you waste this time and effort and withdraw funds at this critical stage.”

“We urge the federal government to reconsider this.”

Former veterans affairs minister Darren Chester said: “I’m staggered that the government would make any decision to reduce opportunity for Australians to get a better appreciation of our military history”.

A further three of the six projects canned include the RAAF Williams Laverton redevelopment, Fishermans Bend wind tunnels and propulsion laboratories, and the RAAF Williams Point Cook redevelopment and relocation of units from RAAF Williams Laverton.

The redevelopment of Victoria Barracks in Melbourne, Simpson Barracks Watsonia, Puckapunyal, and the “midterm” refresh of RAAF East Sale are also among 21 projects that will be “rescoped”.

The RAAF Williams Point Cook redevelopment is another project being cancelled in Victoria. Picture: Supplied

Defence experts told the Herald Sun that infrastructure works were often on the chopping block when the department needed to free up cash.

The blow comes on top of a government decision to cut the number of next generation Infantry Fighting Vehicles from 450 to 129 and abolish the second phase of self-propelled howitzer guns, which could result in major losses for the Victorian defence industry and fewer soldiers at Puckapunyal’s armed training centre.

Defence Minister Richard Marles, who last week committed $3.8bn over the next four years to upgrading Australia’s northern bases, said the “tough decisions” were in the best interest of the nation.

“Victoria will continue to play a vital role in the Australian Defence Force as we shift to a strategy of deterrence through denial, including in the Land and Sea domains and key innovation projects such as the MQ-28A Ghost Bat,” a spokesman said.

But opposition spokesman for defence industry Luke Howarth said upgrading northern bases shouldn’t come at the cost of “abandoning and neglecting other major defence regions”.

“Victorian-based defence personnel and industry deserve to have clarity about their future,” he said.

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