AllFOR IMMEDIATE RELEASE 23 APRIL 2025
Canberra:
AIDN has welcomed the release of the Coalition’s election defence policy which provides for an additional $21 billion in spending over five years, with the longer-term goal of lifting defence spending to 3 per cent of GDP over a decade.
But AIDN CEO Mike Johnson said any additional funding had to be accompanied by continuing reform of defence procurement to ensure Australia continued to build a more self-reliant sovereign defence industry and provide SME’s with greater opportunities to win work.
“AIDN has long argued that Australia’s defence spending needed to be lifted commensurate with the more uncertain global threat the country now faces, and we particularly welcome the reference to rebuilding Australia’s sovereign industrial base,’’ Mr Johnson said.
“AIDN also looks forward to the release of detailed costings which underpin the plan’’.
AIDN urges both major parties to commit to:
- funding and growing a sovereign owned, risk mitigated, capability supply chain, comprised of SMEs who produce and supply world leading products and services,
- simplifying the number of, and complexities relating to, contracting mechanisms used to engage Australian SMEs.
- a minimum quota of total Defence budget spend for Australian SMEs, without assigning the policing role to Primes and/or MSPs,
- a fair and regularly reviewed competitive environment for SMEs to engage in, by refreshing panels annually; and,
- having all election statements validated as “costed” by the Finance Minister/ Shadow Finance Minister as/when they are announced.
“Only a transformative shift can guarantee that genuinely local, Australian-owned small and medium-sized businesses are not merely benefitting, but truly thriving,’’ Mr Johnson added.
“For Australia’s defence industry to be self-sufficient and highly capable, it is imperative to build a robust local supply chain that can support the defence force in the event Australia must rely more on our own resources,’’ he said.
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).
