RSL Tasmania has hit out at the federal government’s decision to sell off Derwent Barracks, warning the announcement leaves a critical gap in defence capability with no clear backup plan.
Prime Minister Anthony Albanese and Premier Jeremy Rockliff confirmed the divestment of the 31-hectare Dowsing Point site on Sunday.
The site is expected to deliver up to 1,000 new homes in greater Hobart.
But RSL Tasmania chief executive John Hardy said the move ‘blindsided’ the veteran community.

Hardy said Federal Defence Minister Richard Marles had assured the RSL only three weeks ago that any divestment would follow “a considered two-year process, with genuine opportunity for ongoing consultation and engagement”.
“[On Sunday], however, the premier and the prime minister met at Dowsing Point to announce the divestment of the site,” he said.

Hardy acknowledged the housing crisis was real and said extra supply would be welcomed by many Tasmanians.
But he said the government had ignored “the elephant in the room” – that Derwent Barracks holds genuine defence capability that cannot simply be shifted.
“The vehicle sheds, workshops, logistics functionality and support infrastructure located within Derwent Barracks are critical to the ongoing operation and readiness of our reserve forces,” Hardy said.
“Let there be absolutely no doubt, there is currently no publicly identified Plan B for this capability.”

Derwent Barracks hosts Army reserve units, cadet programs and logistics facilities.
Under the federal plan, personnel will relocate to Anglesea Barracks in Hobart, while a new multi-user depot is slated for the state’s north-west and a tri-service cadet hub for Launceston.
Hardy welcomed the decision to keep the Veterans’ Shed operating on site, noting the area has the highest concentration of veterans in Tasmania.
He also pointed out that significant grassed areas around the barracks were underutilised and could be released for housing without scrapping the defence precinct.

“Derwent Barracks itself must remain operational as a defence capability precinct,” he said.
Hardy said reserve and cadet forces must not become an afterthought in defence planning.
He called for further consultation and transparency, questioning whether meaningful engagement was still on the table or whether the decision had already been locked in.
“The veteran community deserves clarity on whether meaningful consultation is still intended or whether the future of Derwent Barracks and potentially other defence sites across Tasmania has already been determined behind closed doors,” he said.
“Sadly, only time will tell.”