FOR IMMEDIATE RELEASE                                                                                               15 OCTOBER 2025

Canberra:

The Australian Industry and Defence Network (AIDN) is calling for wide-ranging reforms of Defence procurement and a boost to Defence funding to lift flagging productivity and safeguard the country’s national security.

In a wide-ranging speech to the National Press Club on Wednesday, AIDN CEO Mike Johnson called for sweeping reforms to Defence and Defence industry policy and a boost to Defence spending to ensure a sovereign self-sufficient Defence industry.

‘’A strong sovereign Defence industry offers numerous economic and strategic benefits,’’ Mr Johnson said.

He said Australia’s current reliance on foreign imports for military hardware maintenance and technology represented a risk with the risk of supply chain disruption if conflict should break out.

But by investing in local industries, Australia reduced its reliance on imports which would save the government and taxpayers money over time.

“A thriving Defence industry will drive innovation in other sectors such as manufacturing, IT, and cyber security and strengthen Australia’s overall economy,’’ Mr Johnson said.

“Australia could become a leading exporter of Defence products to other nations, particularly in the Indo-Pacific strengthening its role as a key player in regional security,’’ he added.

To spell these elements out in more detail Mr Johnson said government should:

• Mandate a minimum percentage of Defence procurement contracts for Australian SME’s.
• Ensure a greater release of open tenders to expand direct access opportunities for Australian SME’s across the supply chain.
• Secure binding commitments for Australian SME content in every Defence program with transparent reporting and accountability measures.
• Ensure the 2026 Defence Industry Development Strategy explicitly seeks to prioritise SME led contributions to sovereign capability.
• Establish a body to perform an independent audit of Australian Industry Plan compliance and Australian SME involvement with publicly reported findings to ensure accountability and measurable outcomes.

Mr Johnson said AIDN supported an increase in Defence spending because it was required to meet the geostrategic challenges of the day and ensure the Australian war fighter had the capabilities needed.

“Whether we go to 3 per cent or 3.5 per cent it must be accompanied by serious Defence procurement and industry policy reform,’’ he said.

Mr Johnson said AIDN also called for the US government to exempt Defence goods from tariffs on inputs such as aluminium, steel and copper as the imposts could only hold back AUKUS and global Defence trade.

He said such tariffs were detrimental to US, UK and Australian Defence industry at a time when unity and a common sense of purpose among allies has never been more important.

ENDS

MEDIA CONTACT

John Kerin, Manager Government Relations, Australian Industry & Defence Network.

M: 0400 906 545

ABOUT AIDN

Established in 1995, the Australian Industry & Defence Network Limited (AIDN) is the peak industry association representing small-to-medium enterprises (SMEs) supporting the Australian Defence Force (ADF) and the Department of Defence (DoD).

AIDN proudly represents nearly 1,000 Australian SMEs, collectively employing approximately 61,000 Australians nationwide. In the 2021-22 financial year, these dedicated businesses contributed $10.6 billion to the national economy through sovereign supply chains, advanced manufacturing, research and innovation, skills development, and regional and veteran employment.

In an environment of economic and geopolitical uncertainty, AIDN’s agile membership is well-positioned to support the Australian Government’s urgent capability needs. However, clear guidance on specific priorities is essential to unlock the full potential of Australia’s Defence industry.

Through advocacy, representation, and tailored member services, AIDN champions the interests of Australian SMEs within the Defence and national security sectors. AIDN remains committed to partnering with the Australian Government to build a resilient and self-reliant Defence industrial base, driven by the evolving operational needs of the ADF.

The Australian Industry & Defence Network Incorporated (AIDN) is the peak industry association for small-to-medium enterprises (SMEs) who support the Australian Defence Force (ADF) and the Department of Defence (DoD).