Uplifting defence capabilities

The Government has included additional and ongoing funding in this year’s Budget to support and implement the 2026 National Defence Strategy and Integrated Investment Program. This includes additional funding of $6.8 billion over four years from the 2027 financial year, and $35.6 billion over 10 years as part of an overall planned investment of $425 billion to the 2036 financial year. This is in response to the deteriorating geopolitical climate globally and includes plans to grow Australia’s sovereign industrial base and increase self-reliance. 

In terms of opportunities for companies to participate in procurement, the Integrated Investment Program sets out investment priorities including: 

• Undersea warfare 

• Combined-arms land systems 

• Theatre command and control 

• Maritime capabilities for sea denial and control 

• Expeditionary air operations 

• Guided weapons and explosive ordnance 

• Targeting and long-range strike 

• Missile defence 

• Northern bases 

• Space and cyber 

• Theatre logistics and health 

• Autonomous and uncrewed systems 

• The Advanced Strategic Capabilities Accelerator. 

The Government has also committed $59.1 million over five years from the 2028 financial year to establish an open, competitive grant program to continue support for the strategic policy sector. 

Beyond this, more detail is expected with the forthcoming release of the 2026 Defence Industry Development Strategy. We anticipate this will also shape the forward priorities of the ongoing Defence Industry Development Grants Program.