Transforming the defence manufacturing industry

Supporting Australian industry to build and maintain our defence capabilities and secure Australia’s future

Defence industry transformation plan

The Defence White Paper sets out the Government’s vision to enhance Australia’s defence capability, deepen our international security partnerships and collaborate with defence industry and science and technology research partners in support of the nation’s security.

Underpinning this is the Government’s commitment to grow Defence funding to 2 per cent of GDP by 2020‑21.

The Defence Industry Policy Statement delivers a significant Defence capability modernisation programme to provide the Australian defence industry with new opportunities to develop innovative technologies and deliver essential capabilities for our defence forces.

The Government will provide $1.6 billion over the period to 2025-26 to fund:

• a Next Generation Technologies Fund to invest in strategic technologies ($730 million);
• a Defence Innovation Hub to encourage collaboration on innovation ($640 million); and
• a Centre for Defence Industry Capability to help build the capacity of Australian industry to support Defence ($230 million).

Cyber security collaboration

Strong cyber security provides the foundation for our online prosperity and confidence. It underpins innovation and growth in a modern digital economy.

The Government’s cyber security strategy will deliver improved cyber security for the nation through 33 new initiatives supported by over $230 million in Australian Government funding, directly resulting in more than 100 new jobs to boost the Government’s cyber security capabilities.

This includes $38 million to establish a Cyber Security Growth Centre and enhance cyber security research through the Data61 initiative as part of the National Innovation and Science Agenda.

Building a Navy for the future

Securing a long-term plan for a strong and sustainable Australian naval shipbuilding industry

A Naval Shipbuilding Plan for Australia

The Defence White Paper reaffirms the Government's commitment to a strong, internationally competitive and sustainable Australian naval shipbuilding industry.

In the most ambitious plan to regenerate the Navy since the Second World War, the White Paper sets out a range of new maritime investments, including:

• 12 regionally-superior submarines;
• 9 anti-submarine warfare frigates; and
• 12 offshore patrol vessels.

These capabilities are part of the Government's commitment to invest over $89 billion in ships and submarines for the Navy over the next 20 years.

The next generation of Australian submarines meeting our unique capability requirements will be constructed in Adelaide. This project is the largest and most complex defence acquisition Australia has ever undertaken.

The $50 billion investment in submarines will directly support around 1,100 Australian jobs for decades to come and create a further 1,700 local jobs through the supply chain.

To support a continuous build of naval surface ships, the future frigates, offshore patrol vessels and up to 21 replacement Pacific patrol boats will be built in two Australian shipyards — major warships in Adelaide and minor vessels in Henderson, Western Australia.

These three projects, representing close to $40 billion in investment, will directly sustain more than 2,500 Australian jobs and generate thousands of additional jobs with suppliers.

The Government is committed to maximising the opportunities for the Australian defence industry to participate in these programmes. In particular, the new Centre for Defence Industry Capability will help small and medium enterprises identify opportunities to join the supply chains necessary to deliver these ambitious naval shipbuilding projects.