The medal, given to New Zealand-born Captain Alfred Shout for his bravery during the Battle of Lone Pine in 1915, was bought by a prominent Australian who wished to remain anonymous. It will mean that the highest military honour will now almost certainly go on permanent display at the Australian War Memorial, auctioneer Tim Goodman said after the sale in Sydney.
It was the last privately owned Gallipoli Victoria Cross in Australia and exceeded the anticipated price by about 50%.
Capt Shout's grandson, Graham Thomas, decided to sell the medal to finance his grandchildren's education. He said it would also be safer to keep the decoration at the national war memorial in Canberra rather than in his Sydney home.
The selling price breaks an A$595,000 record set in 2005 for a specially minted gold medal won by Captain Thomas Hardy during the Battle of Trafalgar in 1805.
Capt Shout was the most highly decorated Australian soldier to serve during the Battle of Gallipoli. He was also awarded the Military Cross for his courage during the landing at Anzac Cove. He died when one of three grenades he ignited simultaneously, to save time, blew up in his face.
