Address to the Queensland Media Club 'Delivering Australia's Defence Capability'

I begin by acknowledging the traditional owners of the land on which we meet today and pay my respects to their Elders, past, present and emerging.

As the Minister for Defence Industry, I also pay my respects to Aboriginal and Torres Strait Islander men and women who have served our nation in the past and continue to do so today.

Distinguished guests, friends all, since the formation in 1914 of the first Australian Imperial Force, Queenslanders have been the backbone of Australia’s defence.

There are thousands of Queenslanders in the Australian Defence Force (ADF) and thousands more working in defence industry.

With its world-class military training areas, Queensland has just hosted major components of the largest-ever iteration of Exercise Talisman Sabre.

The numbers tell the story.

Talisman Sabre 25 involved:

• 19 nations and 43,000 people at its peak…
• 32 ships, including two carrier strike groups, and
• 297 aircraft.

The ADF conducted six live fires, including the successful first firing of the Precision Strike Missile on Australian soil, two years ahead of the schedule we inherited when we came into government in 2022. 

It was another example of the Albanese Government accelerating long-range strike capabilities for the ADF, and stands alongside the firing of Standard Missile 6, the Tomahawk missile and the Naval Strike Missile last year, rapidly enhancing the ADF’s ability to precisely strike targets at longer range is one of the six priorities outlined in last year’s National Defence Strategy.

Another is developing and deepening our defence partnerships with key partners in the Indo-Pacific.

Acquiring and firing the Precision Strike Missile - co-developed with the United States - is a tangible example of how we are realising the National Defence Strategy and by doing so, making Australia stronger and more secure.

I’d like to take this opportunity to thank traditional owners for their ongoing support for Defence exercises on their traditional lands. 

I’d also like to acknowledge the state and local governments for their cooperation and assistance, and thank the workers in defence industry who delivered everything from critical maintenance to logistic support.  

Finally, I’d like to thank Queenslanders for their patience as we move people and equipment through their communities as they return to their home bases.

I’m here today to talk to you about how the Government is delivering Australia’s defence capability.

We have come into the second term with more determination than ever to deliver on our commitments. 

We made the tough decisions that were shirked by our predecessors. We are now shifting the ADF from a balanced force to an integrated, focused one.

And we are increasing Defence spending by $57.6 billion over the decade compared to the trajectory we inherited just 3 years ago. 

This is the largest increase in defence spending since the Second World War, with $10.6 billion of that increase over the next four years.

We are continuing to accelerate the delivery of the capabilities our Defence Force needs to keep Australians safe. That’s important, because Australia faces significant challenges in its strategic environment. The achievements of our first term provided a strong platform from which to ramp up our efforts.

Building a sovereign defence industry and ecosystem is at the heart of those efforts, as is Queensland’s defence industry. 

From the companies like Haulmark and Holmwood Highgate, who supply Rheinmetall’s Military Vehicle Centre of Excellence at Redbank…

To hypersonics research, including at the world-leading University of Queensland Centre for Hypersonics, at Black Sky and Hypersonix.

At the industry centres which surround and support bases, like the Cairns Defence Precinct, which helps maintain and sustain the naval fleet and provides refit and training support for the Patrol Boats of our Pacific Island neighbours…

… and at the mighty home of Air Force in North Queensland, at RAAF Townsville.

As important as the capability we acquire is the way we acquire it.

You don’t have to look far to find critics of how Defence does business.

Some of that criticism is justified. 

And I acknowledge there is more work to be done to make Defence the best customer it can be for industry. 

And by industry – I am certainly not only talking about the primes. In fact, our government has put a lot of work into ensuring SMEs are part of the equation.

We recognise that in fact it’s often the small and medium-sized businesses – including those in this room today – that are the incubators of innovation.

To underscore that point, you don’t have to look any further than the drone and counter-drone space.

Now, just before I go on, …I’d like to make the point that part of what I intend to do today is correct a narrative preferred in some quarters, including among the so-called commentariat – some of them former ADF members and Defence officials – who now make a living by providing convenient criticism. 

I’ve said it before – and will say it again now. You are entitled to your own opinion but not your own facts.

While all eyes are on the accelerating evolution of drone warfare in Ukraine, their use is proliferating in conflicts around the world.   

This is acutely relevant to every defence force, in every country. Australia is no exception. 

It’s why we have accelerated the acquisition of an appropriate mix of drone and counter-drone capabilities and are continuing to examine new autonomous capabilities.

Over the next 10 years we will invest heavily on the development and introduction of a range of cutting-edge airborne, surface, and submarine drone systems. 

This funding will strengthen the sovereign Defence industry and drive innovation through partnerships with the likes of Droneshield, Sypaq Systems, AMSL Aero, Grabba Technologies and Boresight.

Today, I can confirm those last three companies - AMSL Aero, Grabba Technologies and Boresight – have recently delivered 300 drones to the Australian Army, with future orders planned.

It was just over 12 months ago that these three companies secured contracts worth $2.2 million each to grow their production capacity, finalise development of their prototypes to a production standard and produce 100 general-purpose drones.  

Another example of the speed with which are now working in this space.

Now, these are small drones that are versatile and cost-effective platforms that provide near-real-time situational awareness at lower altitudes than larger surveillance alternatives. 

It’s imperative that we work across the spectrum, whether that be in relation to drones and counter drones.

Last year, I announced we had acquired the Switchblade 300 precision loitering munition, providing a critical combat edge and adding to drone capabilities available to the ADF, and adding to our arsenal of drones, including those capable of being armed. 

Soon, we will also announce a new capability for the Army – a sovereign medium-range precision loitering munition system - developed under ASCA’s Mission Talon Strike.

But … what I am announcing today is further rapid delivery of counter-drone capabilities under what is known as Project Land 156.

In July, just four months after the announcement of Project LAND 156, the Government issued an initial rolling wave of contracts worth $16.9 million. 

Since then, we have issued more contracts, now totalling $38.7 million dollars to 20 vendors, including 14 Australian companies.

Under those contracts, and accelerated testing, at least 120 of the world’s most capable threat detectors and drone-defeating technologies will be rapidly introduced into use.

The technology is evolving rapidly … and we are moving with it.

So, today, I can reveal that the Albanese Government has set aside $1.3 billion for acquisition of counter-drone capabilities over the next 10 years. 

I’ll explain shortly why that may be of particular relevance to Brisbane. 

The Government will announce further counter-drone acquisitions in the very near future as part of Land 156, including contracts for a Systems Integration Partner for the continuous delivery of counter drone capability. 

This will include a Command and Control capability …. and additional advanced counter-drone sensors and effectors, giving the ADF more options to protect Australian defence bases.

This project is both a benchmark and a blueprint for how we will deliver speed to capability in the future…

And SMEs are at the heart of this project.

I can also reveal that under Land 156, we have adopted a continuous modernisation model. This is critical.

It means that the investments we make today, and continue to make, can help protect against potential future threats.

But let me be clear – this is not just about defence bases and defence assets.

Under Land 156, there is also a minimum interoperability requirement to enable Defence counter-drone capabilities to be deployed to assist civil society. 

This means the ADF counter-drone capabilities would be able to be used as events such as the 2032 Brisbane Olympic Games.

In Ukraine we’ve observed that it when it comes to drones, the cycle of adaptation and counter adaptation is around 3 to 6 months. 

So, through Project LAND 156, the ADF will continually upgrade and refresh capabilities to address emerging drone threats.

To make sure Australia stays ahead of the cycle, we’ve allocated over $10 billion for drone and counter-drone technology and autonomous systems in Defence’s Integrated Investment Program.

This is a rolling effort, which means the investment doesn’t stop, the technology development cycle doesn’t stop, and Australian defence industry has the security of policy and funding to keep developing this technology.

We have three priceless assets in the uncrewed capability race.

We have the smart scientists at Defence Science and Technology Group – including their partners in the Queensland Defence Science Alliance – to deliver the next generation of technologies for loitering munitions. 

We have the Advanced Strategic Capabilities Accelerator, now sitting in the Defence delivery engine-room, with a laser-focus on accelerating the development of asymmetric capabilities and getting them into the hands of our warfighters…

And we have AUKUS Pillar II – our advanced capability partnership with the United Kingdom and the United States. 

To give you just one example of what AUKUS Pillar II has achieved, during Exercise Talisman Sabre, the AUKUS partners worked together to successfully communicate with uncrewed underwater vehicles as part of the Maritime Big Play series.

Communicating underwater is no easy feat.

Handing over communication and control of an underwater drone in Australia, to a partner on the other side of the world, the United Kingdom, is even harder.

But we achieved both at Maritime Big Play this year.

It is a signal of the immense speed and scope of the advances that Pillar II is delivering. 

But as I eluded to earlier in my remarks. The ADF must own both ends of the spectrum. We have to master the manufacturing and evolution of disruptive technologies like our own drone capabilities, and we have to own the potent, high-end platforms that deliver long-range deterrent effects.

Another cutting-edge capability I want to talk about today is the MQ-28A Ghost Bat collaborative combat aircraft.

Ghost Bat is the first military aircraft to be designed, engineered and manufactured in Australia in more than 50 years.

Australia leads the world in this technology, which teams drones with crewed aircraft, allowing the drones to work together with each other and with the crewed aircraft as one team to achieve the mission.

The technology is in the early stages of adoption by Air Forces around the world.

Ghost Bat, and other drones of the future that Air Force is working on right now, will function like smart phones… 

To be upgraded often, with new and advanced features. 

They have the potential to fundamentally change the way the Air Force operates, to make it a more formidable deterrent.

Australia is a lot further down the road of developing this technology than many people realise. 

As at the 25^th of July, the Ghost Bat has performed over 20,000 hours of digital twin testing, 119 live sorties, and 146 flight hours.

In recent testing at Woomera in South Australia, a single human operator onboard a RAAF E-7A Wedgetail successfully controlled two Ghost Bat aircraft in a mission against airborne targets.

We plan to conduct an MQ-28A air-to-air weapon firing test later this year.

The Government has approved the development of three next generation Ghost Bats with an enhanced design and improved capabilities.

70 per cent of the Ghost Bat program is being delivered by Australian industry, with over 200 Australian companies contributing to the program since its inception.

Queensland companies like Ferra, Microelectronic Technologies, B&R, and Coastal Aviation are critical to the success of the Ghost Bat initiative.

We are working closely with Boeing Defence Australia to ensure we take advantage of export opportunities, because we want to entrench and enhance the skill base we’ve already created here in Queensland in this ground-breaking technology. 

If we take it to the next stage – which is full production – it will be built right here in Queensland.

The most recent ABS figures estimate that Queensland’s defence industry contributes over $1.2 billion dollars to the national economy, part of the story of Defence industry’s growing contribution to our national prosperity.

The industry in Queensland has grown year-on-year for the past three years. 

There are plenty of defence export champions in the local defence industry.

One example is GaardTech, based on the Gold Coast and founded by veterans, which creates robotic systems for military training, deception and combat. 

GaardTech has export deals with the British Army, German Army, Singapore Air Force and US Marines. 

Export has its own chapter in the Defence Industry Development Strategy because exports are essential to making the Australian defence industrial base more productive, capable and resilient. 
Exports help lock in our leadership in key defence technologies, they increase interoperability and deepen ties with our trusted international partners. 

While our Defence budget is growing, we don't always have the scale to sustain Australian Defence products.

The best way of delivering that scale is through global supply chains and innovative export initiatives that put industry’s needs at the centre.

An example of how we are doing things differently is the establishment of the AUKUS export licence-free environment, which went live on 1 September 2024.

This once-in-a-generation reform allows industry in Australia, the United Kingdom and the United States to export most military and dual-use goods and services without requiring a permit.

This reduces the barriers for industry across the three countries to innovate together, speeding up capability delivery and cutting red tape.

As of the 1^st of August this year, there are over 450 Australian entities in the AUKUS licence-free environment.

This includes 60 from Queensland.

Brisbane company, SRC Australia was one of the first to be authorised under the AUKUS licence-free environment. 

Nathan O’Leary, Business Development Manager at SRC, has spoken about the positive effect of the licence-free environment on reducing administrative hurdles and accelerating collaboration with AUKUS partners, [enabling] SRC to quickly deploy advanced technologies to enable provide war-winning effects.”

Tony Sequira, Logistics Officer at Brisbane company Emesent Proprietary Limited has said the AUKUS Licence-Free Environment has reduced Emesent’s processing time from weeks to days, if not less.  

And Richard Vorias, Managing Director at MHD Rockland said they have seen an immediate reduction in exporting timeframes, and the reforms have reduced the time they spend on paperwork.

Meaning the AUKUS licence-free environment is not only generational reform for Australian defence industry, it is also a genuine productivity-boosting reform that will benefit the whole Australian economy. 

Team Defence Australia is a trusted advisor in industry’s corner, taking Australian industry to major defence trade shows around the world, working as advocates and supporters for businesses seeking a seat at the negotiating table with our partners around the world. 

I’d like to give a shout-out to the dedicated Austrade Business Development Managers for defence industry, funded by Defence and based in the United States, United Kingdom, Japan, Southeast Asia and the United Arab Emirates.

They provide phenomenal support to Australian industry in international markets and facilitate industrial collaboration and commercial partnerships, and I encourage Queensland defence businesses who are interested in creating international partnerships to take advantage of all the help they can offer.

I want to take a moment to talk about the Government’s focus on accelerating the development of our bases across the north of Australia.

The Government is investing heavily in the north as we reshape and modernise Defence, building the capabilities Australia needs for the future.”

In Queensland, this includes:

• $200 million dollars invested in works at HMAS Cairns;
• $200 million dollars for upgrades across Lavarack Barracks in Townsville and Gallipoli Barracks in Brisbane to support the introduction of the new armoured fighting vehicles and self-propelled howitzer capabilities; and
• $700 million dollars for the Army Aviation Program of works at RAAF Townsville to support the introduction of the AH-64E Apache attack helicopters and the relocation of the 1^st Aviation Regiment and the 16^th Aviation Brigade Headquarters. 

Works are underway, and over time will create around 275 full-time jobs in construction in the Townsville region.

Army’s first Apaches will arrive in Australia in the coming months.

They represent a $4.3 billion dollar investment in the most contemporary and capable attack helicopter in the world.

The Apaches will be based in Townsville alongside the expanded CH-47F Chinook fleet.

And Townsville will become Australia’s largest Defence helicopter industry hub.

The initial support contract for the Apache is set to provide more than 240 new industry jobs across Queensland.

More than 170 jobs are estimated for Townsville, with a further 50 in Brisbane and 20 in Oakey.

The delivery of our first attack helicopters follows the establishment of the second operating node for Army’s UH-60M Black Hawk fleet in Oakey in June.

Locating elements of the Black Hawk fleet at Swartz Barracks is crucial to fulfilling Defence’s utility helicopter requirements, and is the next step in establishing a sovereign training capability.

It ensures Army can continue to develop the Black Hawk capability for employment across land, amphibious and special operations.

To support this expansion, Swartz Barracks will see more than $9 million of essential infrastructure upgrades.

And under the integrated support contract with Lockheed Martin Australia, more than 70 direct employment opportunities will exist in Oakey by the end of the decade, with industry working side by side with Army technicians to maintain the Black Hawk fleet.

The Government is absolutely committed to making the most of Defence investments for the workforce.

That includes targets for apprentices, trainees and women working on Australian Government funded projects, generating opportunities for up-skilling and job training, building the capability of local workforce and offering entry-level pathways for local school leavers and job seekers. 

This is the best way to ensure a Defence future made in Australia, by Australians.

It was a great honour and privilege to be sworn in for a second term as Minister for Defence Industry.

The Government was re-elected with a strong mandate from the Australian people to get on with the job of accelerating the delivery of the capabilities our Defence Force needs to keep Australians safe.

We are committed to a defence future made in Australia because that will make the nation more prepared and more resilient. 

That is my focus for the years ahead.

I look forward to working with Queensland’s innovative defence industry as one of our critical partners in delivery. 

Thank you.

ENDS