Key facts
- Australia is reforming its defence project management to address significant cost overruns and delays.
- A new agency will be created to oversee the delivery of defence projects.
Australia is implementing changes to its defence project management to curb billions in cost overruns and delays. A new agency will oversee delivery, cost assessments will be overhauled, and decision-making streamlined.
The reforms aim to ensure that Australia's substantial investments in its military capabilities are delivered efficiently and within budget, supporting its strategic defence objectives amidst a period of significant military build-up.
Australia is overhauling its defence project management systems to tackle billions of dollars in cost blowouts and lengthy delays. The government announced on Thursday that it will establish a dedicated agency to oversee the delivery of defence projects, reform how project costs are assessed, and streamline decision-making processes by reducing bureaucracy.
These reforms come as Australia is significantly increasing its military capacity, with major projects including the AUKUS nuclear submarine pact, a continuous naval shipbuilding program, and investments in domestic missile and drone industries.
Minister for Defence Industry Pat Conroy stated that Defence has "struggled to deliver major capability projects on time and on budget" and described the department's systems as "broken" and "outdated." An internal review found that the average cost of defence projects increased by 38%, or A$29 billion ($19.97 billion), from the initial conception to the government's final decision.
The Australian government previously announced in April its intention to raise defence spending to 3% of gross domestic product by 2033, up from the current approximately 2%.
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