Fort Scratchley Fort Scratchley , a former coastal defence installation , is now a museum . It is located in Newcastle East , a suburb of Newcastle , New South Wales in Australia . It was built in 1882 to defend the city against a possible Russia n attack . However , its guns were not fired in anger until 8 June 1942 , during the shelling of Newcastle . The Australian Army left the site in 1972 . Background . Fort Scratchley is situated atop Flagstaff Hill , overlooking the Tasman Sea and the Hunter River , less than from the Newcastle Central Business District . It is accessed from Nobbys Road . It is directly between Newcastle and Nobbys beaches . Originally built as a Coastal Defense Fort , it is located in a commanding position , guarding the Hunter River estuary . The site went through extensive renovation at the turn of the 20th century , which has affected the way it looks and shows how military technology changed during the period of its occupation . In 2004 the site was closed for renovation which the city hoped would make the fort a major tourist attraction . Unfortunately , as costs rose due to vandalism and an increase in necessary decontamination to the site , progress stalled . The Australian Government funded the project after reaching an agreement with Newcastle City Council in 2004 , and decided to increase its funding from an estimated 5 . 5 million to almost $ 10 million after reaching a second agreement in 2007 . The government wanted to ensure that the site was repaired correctly as it sees it as a special place in Australia ’ s military history . The site re - opened in June 2008 ; a museum on the site was operational by 2009 . History . Founding . Flagstaff Hill is where coal was discovered in the late 18th century . Lieutenant John Shortland had come upon the land while looking for rogue criminals , but his pursuits were unsuccessful and instead he found fragments of coal at the base of the hill . Flagstaff Hill continued to be the home of coal exportation throughout the early 19th century , until the army claimed the land in 1843 . Plans for a complete fort were not made until after 1870 , when the threat of an attack by Russia began spreading throughout Newcastle due to the increased hostility between England and Russia . The fort was finally finished in 1882 , the Russians were no longer a threat , the Japanese had become the new enemy . Beginnings . A battery of two 32 pounder SB cannons were placed upon Allans Hill in 1866 , two 68 pounder s replaced them in 1874 . On 1 April 1878 , preparations began for the installation of a battery of four 80 pounder guns upon Allans Hill , it was completed on 19 April . Design . The fort was completed on 2 April 1882 . It was designed by Lieutenant - Colonel Peter Scratchley , after whom the fort was named and included three 9 - in Rifle Muzzle Loader ( RML ) guns and a casemated battery of four 80 pounders . In 1889 three 6 - inch BL and one 8 - in BL disappearing gun were installed . The 80 pounders were replaced by quick - firing Nordenfelt machine guns in 1898 . Two 6 - in BL Mark VIIs replaced the four disappearing guns in 1911 . World War I . During World War I , the fort was upgraded with the provision of a Battery Observation Post constructed in 1914 . World War II . During World War II , the fort was further upgraded with the extension of the Battery Observation Post and provision of Searchlight Directing Station and blast walls were constructed in 1942 . The two 6 - in BL Mark VII guns fired at the Japanese submarine I - 21 , which shelled the city on 8 June 1942 . Post World War II . After World War II the fort was home to 13 Medium Coast Battery RAA , a unit of the National Service Scheme , which was renamed 113 Coast Battery RAA in the 1960s . The army left the site in November 1972 . The 6 - in guns were relocated to King Edward Park , away , as a memorial . However , after extensive lobbying , they were returned to Fort Scratchley in 1978 . In the first decade of the 21st century the site underwent a multi - million dollar renovation and reopened as a museum . Cannon disposals . Two 68 pounder cannons are now located at Stroud , New South Wales . A 8 - in disappearing gun was sent to North Head Artillery School for training purposes . A Signal cannon was relocated to Georges Heights , Sydney , then relocated to Puckapunyal , Army Barracks in Victoria .