By Melissa Meehan in Melbourne

Contentious plans to offload a convict-era army barracks have been given the heave-ho after an unlikely coalition formed to oppose the sale.

The federal government had planned to sell off some 67 military properties to raise funds, including Sydney’s historic Victoria Barracks, a complex established in 1840.

The decision to offload the properties followed an independent defence estate audit in February that found they were not fit for purpose and were too expensive to maintain.

Prime Minister Anthony Albanese announced on Sunday his government had scrapped the barracks’ planned sale to private interests, opting instead to keep the site in public hands.

He said the site had a “special place in our nation’s history”.

But the grounds will not be kept as a Defence facility, with the Albanese government exploring opportunities to open the 13-hectare military precinct in inner-city Sydney to the public.

The move followed a campaign to stop the sale that involved high-profile opponents from across the political spectrum, including former conservative prime ministers John Howard and Tony Abbott, and current Greens leader David Shoebridge.

NSW Premier Chris Minns has also voiced opposition to the planned sale by his federal Labor counterparts.

Three other sites, Melbourne’s Victoria Barracks, Fort Queenscliff and RAAF Williams base, will also stay in public hands.

The government will explore ways to maximise community access to the locations and look at commercial opportunities at each location.

To honour the locations’ historical significance, the Australian War Memorial will be involved in work to share and preserve their stories.

Defence personnel will continue to be moved off those and other sites earmarked for sale.

The government had forecast $200 million in maintenance costs for Victoria Barracks in the next decade.

Defence Minister Richard Marles said it was important the nation had a fighting force focused on keeping Australians safe, which required a fit-for-purpose estate.

“Given the strategic landscape we face, we cannot afford to be wasting money,” he said in a statement.

“We need to look at how we best use defence money for defence capability.

“By moving personnel off these sites, and working to open them up for the public, we are ensuring that the history of Victoria Barracks is one that can be protected and returned to all Australians.”

RSL NSW president Vincent Williams, whose organisation opposed the Victoria Barracks sale, said the decision was a victory for common sense.

But he called on the government to “pause and properly examine” the implications of moving Defence personnel away from the site and into a “soulless commercial office tower” in the Sydney city centre.

“Critically, any decision about the future of Victoria Barracks must also consider the significant impact that relocating Defence personnel could have on their morale, wellbeing and sense of identity and belonging,” Mr Williams said.

Opposition defence spokesman James Patterson noted the backflip came after months of public pressure.

“While these sites will now stay in public hands, it is not clear they will remain active defence facilities, leaving questions for Labor about the critical need for a military presence and capability in Melbourne and Sydney,” he said.

“While this is a win for Australia’s defence heritage, it is only the beginning.

“The coalition will continue to fight to save other critical defence sites, including HMAS Penguin, Lancer Barracks, Irwin Barracks and more.”

Defence will have moved personnel off six sites by the end of the year.

News all day, every day at CityNewsQBN.com.au.