Australia Launches Largest Defence Acquisition Reform in Half a Century
New Defence Delivery Agency to merge key procurement groups and improve oversight as A$70 billion in additional defence spending approaches
Australia is preparing to implement its most sweeping defence-acquisition reform in fifty years, establishing a new Defence Delivery Agency that will consolidate three major procurement bodies under one structure.
Defence Minister Richard Marles said the reform aims to fix persistent delays, cost overruns and fragmented accountability across the defence bureaucracy as the country prepares for a substantial expansion in its military investment.
Under the plan, the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Group and the Naval Shipbuilding and Sustainment Group will be merged into a single organisation reporting directly to the minister.
A new National Armaments Director will lead the agency, holding authority equal to the Defence Department Secretary and tasked with ensuring major programmes stay within budget and on schedule.
The restructure will begin in July next year, initially forming a transitional Defence Delivery Group before becoming a fully independent agency in 2027. Officials say the change is designed to streamline complex procurement processes and strengthen delivery performance at a time when Australia is set to spend an additional A$70 billion over the coming decade on major capabilities, including guided weapons, naval platforms and sovereign defence-industry development.
The reform reflects Australia’s broader strategic shift as the Indo-Pacific grows more contested.
By concentrating responsibility for acquisition and sustainment in one agency, the government aims to speed up capability delivery and ensure taxpayers receive stronger value for money.
While the merger brings significant organisational change, the government has emphasised that the existing workforce will transfer into the new structure, with the focus placed squarely on improved performance rather than staff cuts.
With procurement failures long cited as a risk to national readiness, the success of the new Defence Delivery Agency will be measured by whether it can deliver major programmes on schedule and support Australia’s evolving security posture in the years ahead.
Defence Minister Richard Marles said the reform aims to fix persistent delays, cost overruns and fragmented accountability across the defence bureaucracy as the country prepares for a substantial expansion in its military investment.
Under the plan, the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Group and the Naval Shipbuilding and Sustainment Group will be merged into a single organisation reporting directly to the minister.
A new National Armaments Director will lead the agency, holding authority equal to the Defence Department Secretary and tasked with ensuring major programmes stay within budget and on schedule.
The restructure will begin in July next year, initially forming a transitional Defence Delivery Group before becoming a fully independent agency in 2027. Officials say the change is designed to streamline complex procurement processes and strengthen delivery performance at a time when Australia is set to spend an additional A$70 billion over the coming decade on major capabilities, including guided weapons, naval platforms and sovereign defence-industry development.
The reform reflects Australia’s broader strategic shift as the Indo-Pacific grows more contested.
By concentrating responsibility for acquisition and sustainment in one agency, the government aims to speed up capability delivery and ensure taxpayers receive stronger value for money.
While the merger brings significant organisational change, the government has emphasised that the existing workforce will transfer into the new structure, with the focus placed squarely on improved performance rather than staff cuts.
With procurement failures long cited as a risk to national readiness, the success of the new Defence Delivery Agency will be measured by whether it can deliver major programmes on schedule and support Australia’s evolving security posture in the years ahead.
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