The government said the strategy sets out its plan to build the industrial base needed to keep Australia safe. It places industry at the centre of national defence and economic security and calls for a new era of partnership with government.
The strategy includes targets for large defence primes to grow the defence industrial workforce. It places particular focus on increasing the number of apprentices in the sector.
The government also plans to enhance broader workforce initiatives to grow required skills and encourage the uptake of STEM learning. These measures are intended to strengthen partnerships between Defence, industry and the education sector.
The Defence Industry Internship Program will be extended with more than $17 million in funding. The government said this will help more university students gain practical experience in Australia’s growing defence industry.
Nearly $30 million will also be invested to expand the Schools Pathway Program. The programme is intended to encourage school students to pursue science, technology, engineering and mathematics studies and explore careers in defence industry.
The strategy adds the Ghost Shark extra large autonomous underwater vehicle as a priority export capability for the Australian Defence Strategic Sales Office. It also reforms and relaunches the USD $3 billion Defence Export Facility, which the government said has been underutilised since its establishment in 2018.
The government said the Defence Export Facility changes will make it easier for defence industry to access the pool of funds. It will also invest an additional $80 million in Defence Industry Development Grants to build self-reliance and support Australian defence businesses.
The strategy includes procurement reforms intended to enable faster and more agile delivery of capability to Defence. These include implementing a Continuous Capability Development and Delivery approach and a Minimum Viable Contracting approach.
“Industry policy is security policy, and the 2026 Defence Industry Development Strategy recognises the critical role defence industry plays in our national security. The case for a strong Australian sovereign defence industrial base has never been clearer,” said Minister for Defence Industry Pat Conroy.
“We must ensure Australia can manufacture, sustain and scale the capabilities the Australian Defence Force needs, when and where they are required. We are powering defence industry, powering our economy and creating secure jobs. Our hardware, our capabilities, made in Australia, by Australians.”
The strategy links defence industrial policy with the government’s wider plan for a defence future made in Australia. It focuses on workforce growth, export support, grants, procurement reform and sovereign industrial capacity.
