Australia has begun one of the most significant overhauls of its defence apparatus in half a century, announcing the creation of a new Defence Delivery Agency (DDA) to consolidate and streamline military procurement, sustainment and project management.

The reforms were unveiled on 1 December 2025 by Richard Marles and Pat Conroy, the ministers responsible for defence and defence industry respectively.

Under the plan, three existing groups — the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Group and the Naval Shipbuilding and Sustainment Group — will be progressively rolled into the new agency.

On 1 July 2026 they will merge to form a “Defence Delivery Group,” which will then become the fully autonomous Defence Delivery Agency on 1 July 2027. The new body will be led by a newly created role, the National Armaments Director, and will report directly to the defence and defence-industry ministers, with independent budget control and executive authority.

Defence officials say the reform is driven by a desire for “more bang for buck” as Australia proceeds with what is now its largest peacetime defence investment, adding roughly A$70 billion over the next decade to upgrade the armed forces.

The government has repeatedly emphasised that the new structure is intended to deliver major procurement and sustainment projects on time and on budget — a response to perennial issues over cost overruns and delays in major programs.

Although the restructure affects some 6,500 staff across the existing procurement groups, ministers insist there will be no job cuts.

The move is designed to improve accountability and decision-making.

Defence capability decisions will remain under the Department of Defence, while the newly formed agency will handle delivery, acquisition and sustainment once capabilities are approved.

The change comes amid growing regional security challenges and increased pressure on the defence department to manage multiple large-scale projects, including participation in the AUKUS nuclear submarine programme.

The new agency is seen as a structural response to ensure Australia can meet its strategic commitments with greater efficiency and reliability.

Industry and policymakers have welcomed the reform as a long-needed modernization of defence procurement and project delivery.

However, some observers remain cautious, noting that fundamental issues — such as funding levels, industrial capacity and coordination with the defence force — must also be addressed for the overhaul to succeed.

The next 18 months, when the merged groups transition into the Defence Delivery Agency, will be crucial in determining whether the restructure delivers real results.

With the Defence Delivery Agency set to become operational by mid-2027, Australia is placing a clear bet: modern defence challenges require a sharper, leaner and more capable procurement framework — and the success of the reform could reshape how the country equips its military for decades to come.