Canberra, Feb 4 (AHN) The Australian government on Wednesday announced plans to sell up to 67 historic defence sites in order to cut maintenance costs and fund upgrades of essential bases.

Australia's Minister for Defence and Deputy Prime Minister Richard Marles said that the government has agreed or agreed in principle to all 20 recommendations of an audit of estates owned by the Department of Defence, Xinhua News Agency reported.

The independent audit, which was commissioned in 2023, found that many defence facilities were no longer required and some had already deteriorated beyond economical repair.

It identified 68 sites for divestment. Marles said on Wednesday that 64 of those would be wholly divested, with three to be partially divested and one to be retained in full.

The audit found that selling the sites would generate up to 3 billion Australian dollars (about 2.1 billion US dollars) in revenue and save up to 100 million Australian dollars every year in maintenance costs.

It said that the government would incur up to 1.2 billion Australian dollars in costs as it sells the sites, relocates staff and remediates contamination.

On January 30, Australia's federal, state and territory governments reached an agreement on a landmark five-year funding deal for the nation's public hospitals.

Australian Prime Minister Anthony Albanese announced that the federal government will spend a record 219.6 billion Australian dollars (153.8 billion US dollars) funding public hospitals and health services under a new five-year agreement that will come into effect from July.

Speaking alongside the state and territory leaders after meeting on January 30, Albanese said that the figure includes an additional 25 billion AUD (17.5 billion USD) in funding from the federal government compared to the previous five-year agreement.

"This agreement represents one of the most significant national reforms in living memory. These reforms will ensure Australians continue to access world-class healthcare as well as disability support," he said.

The deal ends a prolonged negotiation over the new agreement and comes ahead of a one-year extension to the previous 2020-25 deal expiring in June.

The states and territories in December rejected an offer from Albanese and Mark Butler, minister for health, of an additional 23 billion AUD (16.1 billion USD) in funding, which included 2 billion AUD (1.4 billion USD) to manage the increasing number of elderly Australians in hospital while waiting for beds in aged care facilities.

Peak doctors' body, the Australian Medical Association, welcomed the new deal, but warned that the additional funding alone would not stop declining hospital performance without further reforms.