The increased funding of $5.7bn over the next four years points to defence as one of Australia’s largest growth sectors. With future investments and funding allocated across the nation, learn more about the implications for your business.

Last week’s announcement from the Commonwealth Defence Minister charts an evolutionary trajectory for Australia's defence infrastructure and capabilities. The 2024 Integrated Investment Program (IIP) outlines the Government’s defence capability and investment priorities, involving a complete rebuild of Defence’s procurement plan to meet Australia’s strategic circumstances and accelerate critical capabilities.

Members of Consult Australia’s Defence Roundtable received a detailed briefing last week, but an overview of the key infrastructure related components can be found below: 

Strategic Investments for Enhanced Capability

The IIP is a ten-year procurement plan with an additional $5.7 billion over the next four years and $50.3 billion over the next decade, above the previous trajectory over that period. The government has allocated $330 billion for the Integrated Investment Program over the decade to 2033-34.

Infrastructure Upgrades Across Key Defence Facilities

A major focus of the IIP is on infrastructure investments, between $17 to $22 billion across key defence facilities. Upgrades include modernisation of training institutions in southern Australia, supporting workforce growth, training needs, and accommodation. Additional funding is earmarked for national programs aimed at maintaining and upgrading airfields and maritime infrastructure vital for defence operations, while $1.4 billion will be re-invested from Canberra Defence facilities to uplifting operational bases in northern states.

Strengthening Northern Bases

Investments of $14-$18 billion to ensure Defence has a logistically connected and resilient set of bases, ports and barracks across Australia’s north. One of the investments include the development of the Defence estate across Darwin and Townsville to address force posture requirements while another key project will include upgrades to the RAAF Base Learmonth airfield.

Training and Workforce Infrastructure

Collaborative efforts between Defence and Defence Housing Australia are underway to address future demands for Australian Defence Force (ADF) housing. The IIP includes investments to meet Defence’s future training facilities, planned workforce growth and office accommodation needs. 

The Riverina Redevelopment Program will deliver three discrete projects to provide base infrastructure upgrades:

• Blamey Barracks Kapooka Redevelopment for Army
• RAAF Base Wagga Redevelopment for Air Force
• Albury Wodonga Military Area Redevelopment for Defence logistics

Acceleration of spending on the critical capabilities

AUKUS is spearheading the establishment of a cutting-edge manufacturing facility, marking a significant leap in technological advancement for Australia's nuclear-powered submarine capability. With an investment ranging from $51 to $69 billion, the Navy's future surface combatant fleet and ongoing naval shipbuilding endeavours will receive substantial support. Additionally, bases spanning from the Cocos (Keeling) Island airfield through Darwin and Tindal in the Northern Territory to RAAF Base Scherger in Far North Queensland will undergo enhancements, bolstering defence infrastructure across strategic locations in the country.

Future Program Reviews and Audits

The Integrated Investment Program will be revised biennially, in line with the National Defence Strategy cycle, to ensure the Government’s investment plans remain aligned with the nation’s strategic settings. Defence estate holdings will be reviewed as part of the biennial National Defence Strategy cycle to ensure continued alignment with Defence priorities.

In his statement, the Minister for Defence Industry, the Hon Pat Conroy MP, reiterated the government's commitment to bolstering Australia's defence capabilities, stating, “the Integrated Investment Plan deliberately reshapes the ADF’s acquisition program to ensure it has the critical capabilities needed for the next decade and beyond.”

For further information or inquiries regarding Consult Australia’s Defence Roundtable, contact Matt Williams, Manager – SA, VIC + NT.