Projects axed for drones, missiles

Defence projects collectively worth billions are set to face the chopping block, with funding instead freed up for investments in armed drones and missiles, an overhaul of defence spending has revealed.

In an address to the National Press Club on Wednesday, Defence Minister Richard Marles released the federal government’s National Defence Strategy, adjusting Australia’s 10-year military investment pipeline in a bid to stop spending from snowballing.

Total spending is expected to reach $330bn by the 2033-34 financial year, or 2.4 per cent of GDP, approximately $50bn higher than current levels, with the increase primarily assisting in the acquisition of nuclearpowered submarines under the AUKUS program.

The decade-long spending plan, known as the 2024 Integrated Investment Program, comes a year after Labor’s Defence Strategic Review uncovered significant underfunding of key projects and found the Australian Defence Force was not “fit for purpose for our current strategic purposes”.

In particular, the review found that a focus on “littoral manoeuvre operations by sea, land and air from Australia” was required for Australia’s armed forces, as the country’s army was primarily prepared for the challenge of land-based warfare.

Under the spending shakeup, previous investments in military hardware will be axed or altered, with funds instead diverted towards projects that will bolster longer range strike and targeting capability, as well as lethal drones, in the face of heightened geopolitical tensions in the Indo-Pacific region.

While the investment overhaul includes additional funding, it also requires reprioritisation of $22.5bn over the four year forward estimates period and $72.8bn over the next decade.

Projects headed for the chopping block include $1.4bn for upgrades to defence facilities across Canberra, while two Navy refuelling vessels will be sunk, saving $4.1bn over the decade.