The Albanese Government is making the biggest commitment to increasing Defence funding over the forward estimates in decades. With a record amount spent on the Australian defence industry, the government aims to strengthen Australia’s sovereign defence industry and create jobs. The 2024 National Defence Strategy includes a $330 billion investment over the next decade to deliver a rebuilt Integrated Investment Program (IIP) to support Defence's posture and structure. This includes an additional $50.3 billion to uplift the ADF’s preparedness.
2024 National Defence Strategy and Integrated Investment Program
The Government will provide an additional $50.3 billion over ten years from 2024–25 (and $7.7 billion per year ongoing) to deliver the 2024 National Defence Strategy and Integrated Investment Program. Funding includes:
- $38.2 billion over seven years from 2027–28 (and $7.7 billion per year ongoing) to support the next generation capabilities within the Integrated Investment Program;
- $11.1 billion over ten years from 2024–25 to deliver the Government’s response to the Independent Analysis of Navy’s Surface Combatant Fleet; and
- $1.0 billion over three years from 2024–25 to accelerate priority investments in the targeting enterprise, long-range fires, theatre logistics, fuel resilience and robotic and autonomous systems.
The 2024 National Defence Strategy is a coordinated, whole-of-government and whole-of-nation approach to Australia’s defence. This approach is founded on the concept of National Defence and sees a Strategy of Denial become the cornerstone of Defence planning, spanning all domains – maritime, land, air, space and cyber.
Assistance – regional and global support
The Government has provided $232.2 million over three years from 2023–24 to provide regional and global assistance and support peacekeeping activities. Funding includes:
- $144.3 million over two years from 2023–24 to provide additional military support in response to requests from the Government of Ukraine;
- $60.8 million in 2023–24 to expand Operation LILIA to provide Australian Defence Force logistics, security and enabling support for the 2023 Pacific Games and the 2024 Solomon Islands Joint Elections, at the invitation of the Solomon Islands;
- $14.0 million over two years from 2024–25 to establish a new grant program to support peacebuilding and peacekeeping activities by the United Nations and related institutions; and
- $13.2 million in 2023–24 to support the Government’s response to the Hamas-Israel conflict.
This measure builds on the 2023–24 MYEFO measure regarding Additional Support for Ukraine.
Veterans' affairs
The Government will provide $222.0 million over four years from 2024–25 (and $83.4 million per year ongoing) to reform the legislation framework for veterans’ compensation and rehabilitation by moving to a single ongoing piece of legislation from 1 July 2026.
In addition, the Government will provide $194.4 million over four years from 2024–25 (and $20.6 million per year ongoing) to provide further resourcing to meet increased service delivery pressures including claims processing, and modernise the digital capability of the Department of Veterans’ Affairs. Funding includes:
- $186.0 million over four years from 2024–25 (and $20.6 million per year ongoing) to reduce the time taken to process claims, and respond to increased demand for downstream services, particularly the Veteran Access Network, Veteran Support Officers, complex case management, account processing, information access and mental health support; and
- $8.4 million over two years from 2024–25 to pilot an ICT solution to improve case management and workflow management capabilities in the Department of Veterans’ Affairs.
The Government will also provide $59.6 million over three years from 2024–25 to continue access to health and support services for veterans and their families.
Defence Industry Development Strategy
$166.2 million will be provided by the Federal Government over five years from 2023–24 to support the implementation of the Defence Industry Development Strategy. Funding includes:
- $165.7 million over five years from 2023–24 to establish the Defence Industry Development Grant program for Australian defence industry, supporting Australian businesses to increase their scale and competitiveness and respond to Defence’s capability requirements; and
- $0.6 million over three years from 2023–24 to extend the School Pathways Program, promoting career pathways and opportunities within defence industry.
The Defence Industry Development Strategy identifies Sovereign Defence Industrial Priorities to support the development of the sovereign defence industrial base required to deliver and sustain Defence capabilities.
Nuclear-Powered Submarine Program – workforce and supply chain investments
The Government will provide $101.8 million over seven years from 2024–25 to continue to build the Australian industrial workforce required to support the delivery of Australia’s conventionally-armed, nuclear-powered submarines. Funding includes:
- $68.4 million over seven years from 2024–25 for initiatives delivered through the new Skills and Training Academy; and
- $33.5 million over six years from 2024–25 for initiatives to enhance domestic industry and workforce capacity.
This measure builds on the 2023–24 Budget measure titled Nuclear-Powered Submarine Program – initial implementation and the 2023–24 MYEFO Nuclear-Powered Submarine Program – further implementation measure.
Implementation of the Defence Trade Controls Amendment Act 2024
The Government will provide $28.0 million over four years from 2024–25 (and $1.2 million per year ongoing) to support the implementation of the Defence Trade Controls Amendment Act 2024, including through upgrades to Defence’s export permit ICT system and education and engagement activities for Australian industry and academia to support compliance with new requirements.
Additional measures
The Government will provide further funding on a range of additional defence initiatives. Key aspects include:
- $17.5 million over ten years from 2024–25 (and $1.8 million per year ongoing) to establish a new Parliamentary Joint Committee on Defence. The new Parliamentary Committee will support increased oversight, transparency and accountability of the Defence portfolio and streamline existing parliamentary oversight arrangements.
- $15.3 million over seven years from 2023–24 to support the manufacture and export of more than 100 Boxer Heavy Weapon Carrier vehicles to the Federal Republic of Germany.
- $8.0 million in 2024–25 to support the financial sustainability of the Australian War Memorial.
- $1.2 million over three years from 2024–25 to maintain Australia’s membership to the Commonwealth War Graves Commission.
