$2.4 billion investment in air and missile defence

Release details

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Related ministers and contacts


The Hon Richard Marles MP

Deputy Prime Minister

Minister for Defence

Media contact

dpm.media@defence.gov.au

02 6277 7800


The Hon Pat Conroy MP

Minister for Defence Industry

Minister for Pacific Island Affairs

Media contact

media@defence.gov.au

(02) 6277 7840

General enquiries

minister.conroy@dfat.gov.au

Release content

9 September 2026

The Albanese Government is investing $2.4 billion to strengthen Australia's air and missile defence capabilities while building a resilient sovereign defence industrial base.

Delivered as part of the second tranche of AIR 6500, this investment is a critical component of the Albanese Government’s commitment in the Integrated Investment Program of $30 billion over the coming decade to deliver a layered, integrated air and missile defence system.

This investment will be made over six years, through Defence’s existing strategic partnership with Lockheed Martin Australia providing more than 360 highly skilled jobs, in both the Hunter Region and South Australia, and support Australian Defence industry.

The foundation of this project is the Joint Air Battle Management System, a system which connects information and capabilities from across the Australian Defence Force into a single, effective network, providing a better view of the battlespace and helping commanders make faster, better informed decisions.

This $2.4 billion investment will replace the existing system and modernise air surveillance, and aircraft control functions while supporting the coordination of Defence operations in Australia and overseas.

The capability will connect current and future Defence platforms, including Hobart-class destroyers, the F-35A Lightning II aircraft and the accelerated Medium-Range Ground-Based Air Defence system. 

This will strengthen Australia's ability to operate as an integrated force and detect, track and respond to increasingly sophisticated air and missile threats.

With the capability designed and built in Australia, the Albanese government is once again prioritising Australia’s sovereign defence industrial base and supporting well-paid, secure and highly skilled local jobs.

Quotes attributable to Deputy Prime Minister, the Hon Richard Marles MP:

“Today’s announcement is seeing the Albanese Government once again supporting well-paid, secure Australian jobs and backing Australian Defence industry. 

“AIR 6500 is a landmark investment in Australia’s air and missile defence and will help ensure the Australian Defence Force can respond effectively to future threats and deliver on the priorities of both the National Defence Strategy and the Defence Industry Development Strategy.  

"The project will upgrade the command and control systems needed to strengthen the Australian Defence Force's ability to detect, track and respond to threats in an increasing complex strategic environment.

Quotes attributable to Minister for Defence Industry, the Hon Pat Conroy MP:

"The Defence Industry Development Strategy recognises that Australia's security depends not only on the capabilities we acquire, but also on our ability to design, sustain and evolve them here in Australia."

"Through AIR 6500, we are delivering a world-class command and control capability while strengthening Australia's sovereign industrial base, growing a highly skilled workforce and retaining critical integrated air and missile defence expertise in Australia.

“The Australian Government’s investment directly supports more than 360 highly skilled jobs Australian jobs helping build the workforce, expertise and industrial capability Australia needs into the future.”

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