Australian Defence Magazine Congress 2026

INVESTMENT, INNOVATION, RESILIENCE: DEFENCE INDUSTRY DELIVERING A STRONGER, SAFER AUSTRALIA

INTRODUCTION

Thank you for the invitation to speak, and congratulations on this, the 23rd ADM Congress.

I pay my respects to the Ngunnawal People, the traditional owners of this land where our Parliament gathers, and to 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.

It is as always, great to be here as Australia’s Defence Industry Minister.

You are some of Defence’s most important stakeholders.

This morning, a few points from me – in the context of this less certain and less stable world we currently face.

Now, Australia is not a bystander in this moment in history. 

As an influential middle power, we have the agency – and I would argue, the responsibility – to shape an Indo-Pacific region, and a world, that is peaceful, stable and prosperous.

Where sovereignty is respected and no one country dominates.

To deter aggression and guard against conflict. 

Hence the government’s Defence reforms.

DEFENCE REFORM – INVESTMENT AND INNOVATION

Reform is critical to build the national defence infrastructure we need to safeguard our future.

Acquisition reform. Estate reform. Funding reform.

All of these matter. 

Late last year – we announced the biggest reforms to the way Defence does business in more than 50 years.

The new Defence Delivery Agency will be an independent authority built for acquisition and capability reform. 

Responsible for ensuring Defence delivers the capabilities, skills and workforce it needs.

Overseen by the new National Armaments Director – who will be responsible for acquisition strategies and also the delivery of acquisition and sustainment projects – once they have been approved. 

We’ve made tough decisions, but necessary ones, to create the new agency, particularly in terms of the structure and operation of Defence.

The Defence Delivery Agency will begin its life as the Defence Delivery Group on the 1st of July this year. 

And as you all probably know, under this reform we are merging the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Enterprise, and the Naval Shipbuilding and Sustainment Group.

Crucially, the DDA will report directly to Ministers, and it will have control of the budget for all major acquisitions once government has approved them. 

Those two elements have been glossed over by a lot of commentators, but they are at the heart of what makes these reforms so significant and why the DDA will operate very differently to the former DMO.

We want greater accountability in defence acquisition, and to do that we are giving the DDA certainty and autonomy in managing its budget. 

Over time, this approach will allow the DDA will attract the best and brightest from the private sector to complement the strong public sector expertise that already resides in these three groups. 

We firmly believe this reform will lead to better project management, better change discipline, and greater accountability. 

Because, ladies and gentlemen, changes kill projects. Changes kill project schedule and project costs. And we are determined to avoid that by having greater discipline and accountability.

Ladies and Gentlemen, since we’ve come to office, relative to what we inherited from the former government, we have increased defence spending by $70 billion over the decade. 

And you’ll see further progress on this in the new National Defence Strategy and Integrated Investment Program to be released in the coming months.

What comes with that very significant increase in defence spending – the largest increase in defence spending in Australia’s peacetime history – is an obligation to ensure that this money is spent well. 

The establishment of the Defence Delivery Agency will see a much bigger bang for buck for the defence spend. And it will mean we will be able to do what we need to do, better and faster.

INVESTING IN AUSTRALIAN INDUSTRIES, WORKFORCE AND CAPABILITY 

The focus is always on delivery.

But I do recognise there are ongoing challenges for industry and not everything is happening as fast or efficiently as we would like. 

I would say every step we take is making us better and stronger in our work together – and clearer about the ‘how’. 

I would also say – it’s pretty clear we are serious about investment. 

As I said earlier, a record investment in defence with an additional $70 billion over the decade to 2034-35.

Last financial year saw record spending on both acquisition and sustainment, totalling $35.2 billion. 

This financial year is budgeted to be bigger again for both acquisition and sustainment.

Very importantly, last financial year, almost 80 per cent of the defence budget was spent in Australia.

On capability acquisition and sustainment, of the $35.2b we spent in total, about two thirds – $22.5b – was spent in Australia.

And according to the ABS, direct employment in the defence sector grew by 14.5% in our first two years in office. 

This is about a Future Made in Australia, by Australians. 

And for a secure Australia.

This is about defending our nation, but it’s also about our economy and our independent manufacturing capability. 

I would also say – we are serious about delivery, and the proof is in the pudding. 

In the last twelve months we’ve clearly demonstrated that Defence can move quickly. 

Take Land 156.

Streamlined commercial processes saw us go to market in February 2025, the first contracts were awarded by July – and now 21 companies have been awarded $41.4 million in contracts.

We also appointed Leidos Australia as the Land 156 Systems Integration partner in August 2025. This was achieved within nine months of the initial approach to market.

Then in December 2025, I attended the demonstration of the initial counter small UAS capability at the Cultana training facility in South Australia.

We’ve placed our first order for the production of Ghost Sharks – the best uncrewed underwater vessel in the world – designed and made in Australia at a new production line in Sydney.

This is an extraordinary platform – and again we moved at lightening speed to deliver this capability to the navy. 

Just think about this – the Ghost Shark is designed to undertake ISR and strike missions. 

It could team with our crewed capabilities

And it can fit into a standard shipping container, a standard shipping container, which means any shipping container on any wharf in Australia could have a Ghost Shark in it. 

That’s a pretty powerful deterrence factor.

Another example of speed to capability is the Ghost Bat. We are moving from prototype to production of the Ghost Bat collaborative combat aircraft with an initial $1.4b investment to help introduce it into RAAF service. 

Two months ago, a Ghost Bat successfully engaged an aerial target with an AMRAAM Air-to-Air Missile. 

Operating as a loyal wingman to a Royal Australian Air Force E-7A Wedgetail and an F/A-18F Super Hornet, the MQ-28A Ghost Bat destroyed the airborne target during trials at the Woomera Test Range in South Australia.

This is groundbreaking.

And importantly, the Ghost Bat program supports more than 440 high-skilled jobs nationwide, including roles at Boeing Defence Australia and across more than 200 Australian suppliers. 70 per cent of program expenditure is directed to Australian industry.

I’m pleased to say that we will have more to say about Ghost Bat in the very near future.

And I’m excited about its export potential.

The Australian Defence Strategic Sales Office, is driving a renewed focus on export markets to capitalise on strong interest in Australian defence technology overseas. 

And Ghost Bat is a priority project for the sales office.

At the same time, the AUKUS licence-free environment is freeing up the flow of technology, information, parts, people, and skills – between us, and US and UK companies and innovators.

The December meeting last year in Washington DC of AUKUS Defence Ministers  affirmed the shared intent to move ‘full steam ahead’ on AUKUS. 

Key to discussions was advanced capability, with opportunities to further accelerate delivery of projects with particular focus on near-term warfighting objectives.

Exercises like Maritime Big Play, aimed at enhancing capability development and improving interoperability, prove for example how we can communicate with, and use drones together, to deter threats.  

Next week I’ll be in the UK reactivating our Australia-United Kingdom Defence Industry Dialogue (AUKDID).

I’ll see the progress in SSN-AUKUS delivery, and training of Australian workers. 

There’s the $12 billion commitment for the redevelopment of the Henderson Continuous Naval Shipbuilding site in Western Australia.

And of course, there is the $30 billion investment at HMAS Osborne announced at the weekend by the Prime Minister and myself, along with the South Australian Premier.

I’m known about the House, just up the road from here, as the Minister for Missiles. I’m proud of that moniker.

I’m proud of the fact that we are now making missiles in this country. 

The first batch of GMLRS made in Australia is already on the production line at the factory in Port Wakefield, South Australia – the first facility outside of the US capable of producing GMLRS missiles. 

Earlier this week, I visited the site of the future Kongsberg factory near Newcastle and am pleased to say the slab is laid, construction is on schedule, and we will soon be producing missiles there.

And I can’t not mention our cooperation with the Japanese Government and the Japanese Mogami we’ve chosen as the design for our new general purpose frigate.

The first ship will be delivered by 2029, and we will have three major warships by 2034.

Things are really ramping up. So what next? 

TRANSFORMING THE WAY WE DO BUSINESS

I am very pleased to announce that today I am putting out the call for proposals to help set up the first-of-its-kind Advanced Capabilities Investment Fund. 

This fund will target the advanced capabilities and exports of tomorrow such as cyber, artificial intelligence and autonomy, electronic warfare, quantum technologies, and undersea warfare.

Under the proposal, there would be a path to funding defence projects with private capital – and I know there is demand from the financial sector for this – in concert with public funds.

It will catalyse growth of Australia’s innovation ecosystem, sovereign industry capability and exports potential, all while putting money back into Australians’ pockets.This comes direct from the National Defence Strategy and the Defence Industry Development Strategy – to work with private capital to support defence industry – with the Government will consider investing up to $500 million in a co-contribution model.

So, that’s potentially a $1 billion fund. 

In the current environment, we have to be innovative. This fund demonstrates that the Albanese Government is prepared to think outside the square. If we keep just doing things the same old way, we will be left behind. 

This is about a robust and thriving defence industrial base. 

And about a future made in Australia – driving growth, innovation and the exports of tomorrow.

CONCLUSION

2026 is going to be a pivotal year for Defence.

This year, our Deputy Prime Minister will launch the National Defence Strategy 2026, a critically important document for advancing our ability to deter threats and push for peace. 

The next iteration of the Integrated Investment Program (IIP) will accompany it.

The Defence Industry Development Strategy (DIDS) 2026 will also be released soon after – strengthening the commitment to prioritise our sovereign defence industrial base, and progress on elements identified by industry to help get the job done.

We have the Defence Delivery Agency.

We have the activation of the Advanced Capabilities Investment Fund.

We have the new DIDS.

And we have the mobilisation around the Defence Estate reforms.

This will create an ecosystem of greater alignment – with our partners, with our partners in industry, but also between our national civilian and military systems and sectors.

Delivering a ‘national defence’ capability – the essence of readiness. 

The Australian public expects no less than this from us – to get the job done.

To use the tools we have, to safeguard the values of justice, equality, respect and human rights that make us who we are, and to ensure deterrence and peace prevail.

I look forward to our ongoing work together.

Thank you