The Albanese Government is taking the next significant step towards ensuring Defence delivers the capabilities, skills and workforce it needs to meet Australia's strategic circumstances. These reforms will include the establishment of a dedicated agency designed to strengthen and streamline acquisition and sustainment activities.
Since May 2022, the Government has provided the biggest increase in defence spending in Australia's peacetime history, with what is now an additional $70 billion over the next decade. This includes record spending on acquisition and sustainment.
With this record funding comes the need to ensure that Defence continues to demonstrate value for money.
Once fully established, the new Defence Delivery Agency will integrate three existing Defence capability delivery groups: Capability Acquisition and Sustainment Group; Guided Weapons and Explosive Ordnance Group; and Naval Shipbuilding and Sustainment Group. The agency will report directly to Ministers and have control over its budget, enabling coordinated and holistic delivery of defence capability and growing our sovereign defence industrial base.
The Government will appoint a National Armaments Director to lead the new agency, who will be responsible for providing advice to the Government on acquisition strategies and the delivery of acquisition and sustainment projects following Government approval.
In parallel, Defence will also centralise capability development functions to support clearer prioritisation, streamlined decision-making and accountability for new capability proposals to ensure capabilities support an integrated, focused Australian Defence Force.
These reforms will support greater project and budget management, cost estimation and assurance right across the life of a project.
Work to implement these reforms, including work to design and develop the Defence Delivery Agency, will begin immediately and include consultation with relevant stakeholders, including industry.
These reforms build on a series of targeted improvements already delivered by the Albanese Government, to ensure the ADF has the capabilities it needs to safeguard Australia and its interests.
Quotes attributable to the Deputy Prime Minister, Richard Marles:
"As the Albanese Government makes the biggest ever peacetime investment in Defence, it is important that we put in place the structures and systems to ensure Australia's Defence Force can deliver the capabilities we need at speed and within budget.
"The establishment of the Defence Delivery Agency will elevate the professionalism and strategic focus of Defence capability acquisition and sustainment. It will drive stronger contestability, more accurate cost estimation, and clearer accountability for the delivery of major projects."
Quotes attributable to Minister for Defence Industry, Pat Conroy:
"The increasing complexity of Defence capabilities, systems and platforms requires a systematic rethink of the capability development and delivery system. This is about setting Defence up for success so we can modernise the ADF in line with the National Defence Strategy, while ensuring we spend taxpayers' money wisely.
"The new agency will help ensure our industrial base is resilient, innovative and aligned with our strategic priorities. It will create more opportunities for Australian businesses and workers to contribute to Australia's national security."
