Defence Department faces cutbacks

Defence is not exempt from the Albanese Government’s cost cutting exercise revealed this week where it is looking for savings of up to five percent from across government agencies. Defence firms have already complained about the related focus on AUKUS; the maritime programs and Guided Weapons and Explosives Ordnance Enterprise is already leading to cutbacks in vital areas of ADF training and maintenance spending and contracts. Such budget pressures have also been highlighted in internal missives sent to staff by the ADF service chiefs. Treasurer Jim Chalmers and Finance Minister Katy Gallagher were quick to say the latest public service initiative was not about axing jobs but ensuring money was “reprioritised’’ to be spent on more vital areas within an agency’s remit. Opposition Leader Sussan Ley seized on the announcement as evidence Labor had deceived the electorate by saying during the 2025 election campaign that there would be no cutbacks to the public service. Labor heavily criticised former Opposition – despite three successive rate cuts. However, in Defence the challenge remains. The US, analysts, former ministers and industry groups including AIDN have called on the Albanese government to boost Defence spending to at least 3 per cent of GDP to ensure the ADF has the capabilities required to meet the challenge of a more dangerous geostrategic environment and to support a sovereign defence industry. Opposition Leader Sussan Ley last week reaffirmed the commitment for a future Coalition government to spending 3 per cent of GDP on Defence. Deputy Prime Minister Richard Marles says the Albanese government will review Defence spending levels next year when a revised National Defence Strategy is due.

NIOA wins long term small arms contract

NIOA has signed a new long-term small arms support contract with the Australian Department of Defence. NIOA’s General Manager Weapons and Munitions, Mick Ahern said the firm’s expert team of project managers and engineers had built a unique skill set in planning, conducting and delivering small arms test program to meet LAND300 and broader defence needs. The new support contract has engaged NIOA for the through-life support of select Australian Defence Force (ADF) in-service weapons as well as the next generation Land 300 Lethality Program systems until 2032. Mr Ahern said the new contract marked an important milestone in the delivery of new capability and NIOA’s Weapons and Munitions teams. NIOA was appointed by Defence in September 2022 as the prime contractor for Tranche 1 Stage 2 of Land 300 which has included new sniper systems, surveillance and target acquisition devices, pistols, shotguns and personal defence weapons for Australia’s soldiers, sailors and aviators.

Security clearances streamlined

A new top level security clearance has been introduced as part of efforts to streamline mobility across government and reduce delays for staff working in sensitive national security roles. The new Top Secret – Privileged Access (TS-PA) clearance replaces the positive vetting level which faced agency specific variations in the way it was assessed and managed. Clearances at the Negative Vetting 1 and Negative Vetting 2 levels remain unchanged and will continue to be managed by the Australian Government Security Vetting Agency (AGSVA). AGSVA’s Assistant Secretary – Vetting, Mel Flett, said the new Top Secret – Privileged Access (TS-PA) system would achieve the same security outcomes as positive vetting while eliminating the inconsistencies that previously made it difficult for personnel to shift between departments. Current positive vetting clearance holders are not required to take any action. Their clearances will be progressively transitioned to the TS-PA authority over several years, with most expected to convert at the time of their scheduled revalidation. The transition process is not expected to begin until next year. AGSVA will contact individuals directly ahead of their transfer to provide details on what the change involves.

NSW Labor Government start-up grants call

The Minns Labor Government is calling on the startups and entrepreneurs to apply for round two of the 2025-26 Minimum Viable Product (MVP) Ventures Program, with applications now open. The MVP Ventures Program offers targeted grant funding to support founders to take their ideas from concept to market. A total of $3 million in grant funding is available this financial year through two streams; Stream One is available for all eligible businesses with a maximum grant of $50,000 and a minimum co-contribution of 50 per cent; Stream Two is available for eligible women-owned businesses, regional businesses, and Aboriginal and/or Torres Strait Islander businesses with a maximum grant of $75,000 and a minimum co-contribution of 25 per cent. The first of three rounds of the 2025-26 MVP Ventures Program opened earlier this year. 309 applications were received with 88 progressing to the competitive assessment stage. Successful round one applicants are expected to be announced in the first quarter of next year. Round two is open from Monday 24 November and applications close on Sunday 21 December 2025.

Defence honours Reservist employers

Defence has honoured civilian employers of Australian Defence Force reservists at the 2025 National Employer Support Awards in Sydney. The event recognised businesses and organisations that go above and beyond to enable ADF reservists to serve their nation while maintaining civilian careers. The 48 civilian employer organisations in attendance had all won their state/territory award category and were all finalists in the national awards. Head Reserve and Cadet Support Division, Major General Douglas Laidlaw commended employers for their vital role in enabling Defence capability through their support of reservists. The ADF Defence Reserve workforce numbers 42,000 nationally. The competition received 428 nominations this year. Those honoured included McMahon Holdings (large private sector), Flanders Electric of Australia (medium private sector), Karston Homes (small private sector), Alice Springs Hospital Pharmacy Department (public sector), Defence Science and Technology Group (Defence), St Andrews Hospital (not-for-profit).