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4w ago

Australia Creates Defence Delivery Agency to Overhaul Military Procurement

The reform gives a single acquisition body budget authority with direct ministerial reporting to curb cost blowouts and delays.

Deputy Prime Minister Richard Marles. (AAP Image/Lukas Coch)
Richard Marles, Australian Deputy Prime Minister and Minister for Defence, speaks during an announcement at the Royal Australian Navy base HMAS Kuttabul, in Sydney, Australia, September 10, 2025. REUTERS/Hollie Adams
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Overview

  • The Capability Acquisition and Sustainment Group, Guided Weapons and Explosive Ordnance Group, and Naval Shipbuilding and Sustainment Group will merge into a Defence Delivery Group on 1 July 2026.
  • On 1 July 2027 the group will become an independent Defence Delivery Agency led by a National Armaments Director.
  • The new body will control its own budget, report directly to ministers, and coordinate major acquisition and sustainment after government approvals.
  • Ministers say the agency will oversee roughly 40% of defence spending as outlays head toward about $100 billion annually by 2034.
  • Design work and industry consultation have begun, with ministers ruling out broad job cuts despite reports of potential reductions in senior roles.