Defence | Austrade International

A globally competitive defence industry

Australia is building a robust, resilient and globally-competitive defence industry. We export innovative defence technologies to key global partners, and support an agile and capable Australian Defence Force (ADF).

Global defence contractors are investing in Australian defence technologies and advanced manufacturing. This helps Australian companies supply components to international defence programs. Our modern defence industry is built on:

an expanding defence budget, which includes plans to double the size of the combat surface fleet
participation in global defence programs, including the F-35 Joint Strike Fighter and the AUKUS submarine program
priority investment in defence technologies, to help build sovereign capabilities.

With our defence industries growing quickly, Australian startups are also creating their own defence solutions – and exporting them.

Australia welcomes strategic partners to help us build a strong defence industry and pursue export opportunities. Investors benefit from:

a highly skilled workforce, with expertise in advanced manufacturing
major acquisition programs, including in shipbuilding and land systems
government support for critical technologies
strong export opportunities with major allies and regional partners
effective collaboration between academia, government and industry, including through the Advanced Strategic Capabilities Accelerator (ASCA).

Leading international companies also have a significant presence in the Australian defence market including: BAE Systems Australia, Thales Australia Limited, Hanwha Defense Australia, Rheinmetall Defence Australia and Boeing Defence Limited.

Australia is a trusted supplier of defence equipment and technology. Australian content contributes to some the world’s most technologically advanced defence programs.

Australia’s priority export markets include: the US, the UK, the EU, the UAE, South-East Asia, Japan and South Korea.
Defence Export Controls (DEC) regulates the export and supply of military and dual-use goods and technologies. It can provide assessment and advice on permits.
More than 70 Australian companies participate in the F-35 program. Their contribution was worth A$4.1 billion in June 2023. (Source: Australian Government, Department of Defence. F-35 Lightning Fast Facts) (PDF: 1.9 MB)
100 Australian built Boxers by Rheinmetall Defence will be exported back to Germany in a historic trade agreement between Australia and Germany.

Our small to medium enterprises are globally competitive and successful. Veteran owned The Whiskey Project Group is selling tactical watercraft to the US Marine Corps. SpEE3d’s automated Cold Spray Additive Manufacturing solution is being exported globally including to the UK, the US, Japan and Ukraine.

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Success stories

BAE Systems to set up Asia-Pacific F-35 warehouse in Australia

Australian tech companies powering global defence innovation

New agreement to boost Australia’s defence surveillance capabilities

Events

Each year, Australia holds 3 key defence events covering land, air and sea:

Land Forces 2024: Melbourne Convention and Exhibition Centre, Victoria, 11–13 September, 2024.
Avalon 2025: Avalon Airport, Victoria, 25–28 March, 2025.
Indo Pacific International Maritime Exhibition: International Convention Centre, Sydney, 4–6 November, 2025.

All 3 events brings together key domestic and international players in defence including industry, government, and academia of all level to meet, do business and discuss the opportunities and challenges.

Austrade works closely with Australia's Department of Defence to support Team Defence Australia events at significant defence trade shows around the world. Team Defence Australia is the premier national platform for export-capable Australian defence and dual-use companies, to showcase their goods, services, technology and solutions to a global audience.

Incentives, grants and support

Investors can access funding opportunities for defence-related initiatives in Australia.

The Government will invest $3.4 billion over the next decade to establish the Advanced Strategic Capabilities Accelerator (ACSA) – with $748 million up to 2028. Priorities include hypersonics, directed energy, trusted autonomy, quantum technology, information warfare and long-range fires.
The Defence Industry Development Strategy: The Government will invest A$183.8 million in grants to support small and medium businesses. For example, the new Defence Industry Development Grant Program – with 4 streams to support industrial capability and capacity. This includes strategic priority, export opportunities for defence industry, upskilling the defence industry workforce, and to improve industry’s security accreditation. This is in line with the Defence Industry Security Program.
The Defence Global Competitiveness Grant: helps businesses build their defence export capabilities. It offers grants of $15,000 to $150,000 for up to 50% of project costs.
The Sovereign Industrial Capability Priority Grant: funding for businesses to build vital defence capabilities. Grants of $50,000 to $1 million for up to 50% of project costs.
The JSF Industry Support Program – Sustainment Grant: A$50,000 to $250,000 to fund up to 50% of eligible project expenditure for Phases I and II.
The Australian Tax Office’s New Investment Engagement Service: tailored guidance on tax issues to businesses planning significant new investments in Australia.

Snapshot

Defence in Australia

Spending

Spending by Australia’s Department of Defence contributed $10.6 billion to the Australian economy in 2022–23, an increase of 4.1%.

Employment

Australian defence industries employed over 64,000 people in 2022–23, up 6.3%.

Major ongoing procurements

The AUKUS nuclear propelled submarine project; 20 x M142 High Mobility Artillery Rocket System (HIMARS); 40 x UH-60M Black Hawk helicopters; 129 x Redback infantry fighting vehicles.

Source:
Australian Bureau of Statistics, Australian Defence Industry Account, experimental estimates, March 2024

Australia has bi-partisan support for major upgrades to defence capabilities.

Strategic relationships include; ‘Five Eyes’ partners (the US, the UK, Canada and New Zealand), and the Quad (a diplomatic network with Japan, the United States and India).
A$9 billion for the AUKUS submarine program, A$4.1 billion for long-range strike capabilities, A$3.8 billion for our northern base infrastructure, and $900 million on defence innovation.
AUKUS partners are also collaborating in 6 areas: advanced cyber, artificial intelligence and autonomy, quantum technologies, undersea warfare, electronic warfare, and hypersonics/counter-hypersonics.
Recent release of strategic documents: the 2023 National Defence: Defence Strategic Review and 2024 National Defence Strategy – a comprehensive outline for defence planning and resourcing to 2032–33 and beyond.

In 2023, Australia identified key critical national security technologies vital to the national interest. These include technologies for defence applications such as additive manufacturing, advanced composite materials and quantum computing.

Our national science agency CSIRO has expertise in defence research spanning early development to testing. Its projects include the Queensland Centre for Advanced Technologies, the Artificial Intelligence roadmap, Bluelink ocean forecasting, and DARPA Challenge. Other organisations include:

Defence Science and Technology Group (DSTG): creates opportunities for partnerships between industry, academia and government. Focus areas include surveillance and space technologies; chemical, biological and radiological and nuclear (CBRN) defence, robotics and automation and cyber.
Australian Defence Science and Universities Network (ADSUN): helps collaboration between organisations and agencies in our defence ecosystem. ADSUN members include the Defence Science Centre (Western Australia), Defence Innovation Network (NSW), Queensland Defence Science Alliance, Defence Innovation Partnership (South Australia and NT), and the Defence Science Institute (Victoria and Tasmania).
Trusted Autonomous Systems (TAS): Australia’s first Defence Cooperative Research Centre.
Defence Trailblazer: a new body led by the University of Adelaide and UNSW. Aims to transform the way researchers and industry work together to solve real-world defence problems. The Australian Government and university partners are each investing $50m with an expected $140m from industry, with 100 new defence technologies over 4 years.
Security & Defence PLuS: an academic research and educational collaboration between the University of NSW (UNSW), King’s College London and Arizona State University (ASU). It is aimed at advancing the AUKUS agreement between Australia, the United Kingdom and the United States of America.

A globally competitive defence industry

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