Coalition pledges to re-energise domestic defence industry

Opposition Leader Peter Dutton says he will re-energise domestic defence industry and re-tool the ADF with asymmetric capabilities to counter a much larger adversary, if the Coalition wins the election. Mr Dutton made the pledge in his Budget in Reply speech promising a substantial defence spending boost. However, he stopped short of endorsing the long mooted 2.5 per cent of GDP figure. Any announcement on quantum must now await the election campaign. However, with the major parties neck and neck in the polls a Labor minority government still remains the most likely election outcome. In the wake of the Federal budget AIDN called on both sides of politics to commit to boosting defence spending. And CEO Mike Johnson said AIDN was disappointed with the Albanese Government’s defence budget which did little to relieve cost pressures for SME’s or support them to compete for work. The list of commitments AIDN is seeking includes 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; having all election statements validated as “costed” by the Finance Minister/ Shadow Finance Minister as/when they are announced.

AUKUS defence budget boost

AUKUS was again one of the big winners in Labor’s Defence budget. As the buildup to regular US and UK nuclear submarine rotations from 2027 to WA continues, $2.6 billion will be spent this year, rising to $6.8 billion by 2028-29. The Australian Submarine Agency also increases its staff from 665 to 1000 over the next two years. However given AUKUS is a whole of government enterprise there was also $28 million for the Department of Foreign Affairs and Trade to provide policy advice and diplomatic support; $11.1 million for the Australian Safeguards and Non Proliferation Office to continue the development of non proliferation and safeguard arrangements; $6.9 million for the nuclear safety agency to conduct nuclear licencing activities and provide protection and safety advice; $6.1 million for the Australian Nuclear Science and Technology Organisation to conduct radiological baselining and monitoring; $3.0 million for environmental regulation and assessments; $2.4 million for the Department of Finance to provide advice among a long list. However, all these add-ons were to be absorbed by the existing Defence and Australian Submarine Agency budgets. There is a further $8 billion in capital spending to the mid 2030’s to make HMAS Stirling an operating base for AUKUS submarines of which a further $642 million is set down for 2025-26.

Labor funding accelerated to lift defence capability

Deputy Prime Minister and Defence Minister Richard Marles brought forward $1 billion in defence spending to accelerate work on maturing defence projects. DPM Marles made the announcement at the Avalon Australian International Airshow ahead of the Federal budget indicating the money was required to support projects already in train including AUKUS, naval shipbuilding programs and the Global Weapons and Explosive Ordinance Enterprise. DPM Marles also confirmed the government’s previously announced intention to increase defence spending by $50.3 billion to 2033-34 or just over $100 billion. The budget was criticised for not matching spending increases to deteriorating regional strategic circumstances or responding to the US drive to have allies spend more on Defence.

WA election result triggers shake-up

Incoming high profile WA Liberal Leader Basil Zempilas has promised a shake-up to make the Opposition more competitive in future elections. Zempilas this week replaced former Leader Libby Mettam in the wake of the Cook Labor Government’s comfortable election victory. Zempilas wants to renegotiate the alliance arrangement with the Nationals and says all policy is on the table following the poll defeat. With 85 per cent of the vote counted, the Cook Labor Government had retained 46 seats, losing only 7 seats from a high watermark of 53 in the 59 seat Lower House. The high watermark followed the 2021 McGowan Government Covid 2021 landslide election. In the 2025 poll the Liberals increased their number of seats to seven and the Nationals six. WA Premier Roger Cook has already conducted a post-election reshuffle of his frontbench in a bid to stamp his authority on the government’s third term.

HIMARS launchers arrive in Australia

Australia has taken delivery of it first two HIMARS long range precision strike launcher vehicles. The delivery comes following the Albanese Government responding to the recommendations of the Defence Strategic Review to boost strike capabilities. Defence Industry and Capability Delivery Minister Pat Conroy said the first of the High Mobility Artillery Rocket Systems had arrived in less than two years after ordering from the US. Employing the Guided Multiple Launch Rocket System (GMLRS) and the Precision Strike Missile (PrSM), HIMARS will deliver increased lethality and accurate firepower at ranges of more than 500 kilometres. The HIMARS are the first of 42 to be delivered to Australia. The accelerated delivery of HIMARS will also support Australian defence industry and the creation of new jobs sooner, with the establishment of a facility to locally manufacture HIMARS-compatible and other guided missiles.