AllFOR IMMEDIATE RELEASE 1 December 2025
AIDN Welcomes Procurement Overhaul
Canberra:
The Australian Industry and Defence Network (AIDN) welcomes the Albanese Government’s effort to bring a greater focus to delivery of Defence projects through the establishment of a Defence Delivery Agency.
“AIDN has been of the view that Defence Industry would be better served by Defence having a greater focus on project delivery,’’ AIDN CEO Mike Johnson said.
“The decision to bring the Capability Acquisition and Sustainment Group, the Naval Shipbuilding and Sustainment Group and the Guided Weapons and Explosive Ordnance enterprise under one entity should improve oversight of Defence programs and lead to better outcomes for industry in the longer term,’’ Mr Johnson said.
Mr Johnson said the reform should lead to a decrease in centralised administration costs although as with any reform the proof would come in terms of long-term effectiveness.
“This is the first step towards creating an Australian Armaments Policy,’’ he added.
Mr Johnson said AIDN continued to call for not only reforms to improve defence contracting but to a boost to defence spending to at least 3 per cent of GDP to help meet the geostrategic challenges and adequately equip the war fighter.
Mr Johnson was commenting after Defence Minister Richard Marles and Defence Industry Minister Pat Conroy announced the biggest overhaul of Defence in 50 years.
Defence Minister Richard Marles said at a press conference in Canberra that concerns about cost over-runs and delays with major projects had driven the decision to undertake a restructure to ensure the defence dollar is better spent.
The Defence Delivery Group which will include the Capability Acquisition and Sustainment Group, the Naval Shipbuilding and Sustainment Group and the Guided Weapons and Explosive Ordnance enterprise will come into being from July 1, 2026, and it will be a standalone agency known as the Defence Delivery Agency from July 1, 2027.
In a joint statement the Ministers said the government would appoint a National Armaments Director to lead the new agency, who will be responsible for providing advice to the Government on acquisition strategies and the delivery of acquisition and sustainment projects following Government approval.
Mr Johnson said the appointment of a National Armaments Director was also a welcome move “but the right person with the right commercial acumen and defence industry experience would need to be chosen’’.
The Ministers said Defence would also centralise capability development functions to support clearer prioritisation, streamline decision-making and accountability for new capability proposals to ensure capabilities support an integrated, focused Australian Defence Force.
These reforms would support greater project and budget management, cost estimation and assurance right across the life of a project.
The agency would also report direct to the responsible Ministers and be aimed at picking up any problems with major projects early according to Defence Minister Richard Marles.
Defence currently has an annual budget of just under $60 billion a year but that figure is set to rise to around $100 billion annually by 2034 as China continues to rapidly build up its military and the Trump administration presses allies such as Australia to ramp up defence spending.
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 more than 700 Australian SMEs, collectively employing approximately 61,000 Australians nationwide. These dedicated businesses contribute up to $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).
