13 March, 2016
The 2016 Defence White Paper (DWP) released on 25 February 2016 together with the accompanying Integrated Investment Program (IIP) and Defence Industry Policy Statement (DIPS), sets out a long term plan for Australia’s defence.
The Government’s defence strategy will be supported by increased defence funding to two percent of Australia’s GDP by 2020-21, three years ahead of the Government’s 2013 election commitment. This will provide Defence with $29.9billion additional funding over the period to 2025-26, enabling approximately $195billion of new investment in this period.
The Government has also committed to a long-term continuous build of surface warships, commencing with offshore patrol vessels in 2018, recognising the contribution to defence capability provided by the Australian defence industry. This is in addition to previous statements by the Government of its intention to also maximise the involvement of local industry with the Future Submarine Program.
The IIP sets out the planned investment over the decade to 2025-26 including:
(a) new equipment such as ships, submarines, aircraft and armoured vehicles;
(b) information and communications technology systems such as static and deployable networks and communication systems;
(c) infrastructure such as airfields, port facilities and training areas; and
(d) trained people, including ADF, APS and contracted personnel.
Please click here to view a table summarising the major future investment programs identified (approximately $4bn+), the program timelines and approximate investment value.
The Government has also committed to investing in a new Centre for Defence Industry Capability, whose purpose is to build defence capability and promote Australian defence industry competitiveness by providing advice and funding to build industry skill, development support to small and medium enterprise, and information about defence’s innovation requirements. To assist defence innovation, the Government will increase collaboration with the defence industry to invest in new technologies. A new Defence Innovation Hub will assist the collaboration between the Commonwealth Scientific and Industrial Research Organisation (CSIRO), academia and key industry partners to accelerate innovative technology transfer.
For further information, please contact:
Alan Rosengarten, Partner, Herbert Smith Freehills
alan.rosengarten@hsf.com
