Defence Strategy

Defence Strategy

The Australian Government has adopted a policy of National Defence – the defence against potential threats arising from major power competition – as a new approach to defence planning and strategy.

The current defence industry policy was established in a very different environment to today. Risk of major power conflict was low, policy assuming a 10-year warning time, and industry capability was viewed largely in terms of supporting individual ADF programs.

The risk of a major conflict in the Indo-Pacific is real. China is openly using military and para-military forces to change the status -quo I the South China Sea, while in Europe Russia is continuing its war to annex Ukraine.

• The Australian defence industry should be considered a capability in its own right.

• Defence industry should be embedded within and managed as part of Australia’s broader national industry structure and policy.

• Defence industries should be strategically prioritised, then supported to achieve scale and surge capabilities.

• Government should use the full range of policy levers at its disposal to shape defence industry outcomes.

• Government should establish a Defence Industry Capability Manager.