Defence investment will increase significantly over the next decade, with the Federal Government confirming an extra $50.3 billion ahead of the next Budget.
Workers at ASC sustain Australia's Collins-class submarines. Image: Russell Millard / Defence.
The funding commitment was announced alongside the launch of the National Defence Strategy, which recalibrates defence spend to align with an increasingly strategic focus for Australia's defence force.
It includes investing an extra $5.7b in the next four years and $50.3b over the next decade.
“We welcome the Government’s strong focus on defence and naval shipbuilding in its National Defence Strategy and its commitment to nuclear-powered submarines as part of the AUKUS agreement – some of which will be built in Western Australia,” says CCIWA CEO Chris Rodwell.
“WA has a significant role to play in Australia’s defence strategy and our State has the skills and knowledge needed to drive innovation and technology in the defence industry over the coming decades.”
The strategy includes some cuts to projects which would have benefitted WA, such as the future SEA2200 supply ship tender, and instead unlocks funding for other initiatives to deliver a more mobile defence force.
National Defence Strategy – what’s included?
Defence Minister Richard Marles. Image: Jay Cronan / Defence.
The strategy outlines the Government’s framework to guide significant and urgent changes required for Australia’s defence industries to fulfil increasing demand. It includes investment in:
- A Navy with an enhanced lethality surface fleet and conventionally-armed, nuclear‑powered submarines (SSNs);
- An Army optimised for littoral manoeuvre with a long-range land and maritime strike capability;
- An Air Force that can deliver long-range intelligence, surveillance and reconnaissance and an enhanced maritime, land and air strike capability; and
- A strengthened and integrated space and cyber capability, including enhanced cyber and electronic warfare and new space-based situational awareness.
“The inaugural National Defence Strategy sets out a clear and priority-driven approach to protecting against threats to Australia and our interests,” says Defence Minister Richard Marles.
“These transformational reforms are designed to ensure that peace, security, and prosperity are maintained in our region.”
Integrated Investment Program
The Integrated Investment Program (IIP) provides an approach to supporting the seven sovereign defence industrial priorities in the Defence Industry Development Strategy.
It details how the Government is making deliberate choices to invest in new capabilities and prioritise investments to bring those new capabilities into service as quickly as possible, including spending $53b to $63b on SSNs through AUKUS over the decade to 2033‑34.
Defence Industry Minister Pat Conroy says: “The Integrated Investment Plan deliberately reshapes the ADF’s acquisition program to ensure it has the critical capabilities needed for the next decade and beyond.
“This fully funded plan ensures a continuous pipeline of investment that underscores the Albanese Government’s unwavering commitment to developing Australia’s sovereign defence industry.”
Industry consultation is crucial
Rodwell says while the Government has outlined its plans at a high level, it's critical there is intense engagement and consultation with WA businesses around specific project details.
“It will be difficult for WA businesses to develop the capability and workforce required to support our nation's defence effort without this information,” he says.
“Businesses in the defence industry and supply chain in WA are still seeking clarity from the Government about the Henderson precinct, which will need significant infrastructure upgrades, including a large vessel dry dock.
“We hope to see more detail about funding for defence projects in WA in next month’s Federal Budget.”
The Industry Capability Network WA gives businesses the competitive advantage through access to suppliers across WA. Contact the ICNWA team on (08) 9365 7623 or by email at [email protected].
