Australian Defence Investment: As part of the 2024 National Defence Strategy, the Australian Government is investing in the country’s manufacturing capabilities. The federal budget, which was just released, shows that the government has pledged $50.3 billion over the next ten years to improve the skills of the defence industry.
The budget for 2024–25 includes a rise in defense spending of $764.6 billion over the next ten years. This will help the Defense Force become stronger and more self-sufficient.
The rebuilt Integrated Investment Program (IIP) will get $330 billion over the next ten years, from 2033–2044. This is a big increase from the $270 billion that was set aside in the 2020 Defense Strategic Update and 2020 Force Structure Plan.
This includes an extra $5.7 billion over the forward estimates, which is the biggest rise in defense spending over a forward estimate time in decades, as well as an extra $50.3 billion over the next ten years.
South Korea Considers Joining AUKUS Defense Pact along US, UK and Australia
Deputy Prime Minister Richard Marles said, “This is about making sure our Australian Defence Force is fit for purpose and has the right tools to deal with challenges now and in the future.”
Because of this, the yearly budget for defense is expected to rise from $53 billion this fiscal year to about $100 billion by 2033–34.
This means that by 2033–34, defense spending as a share of GDP will have reached over 2.3%, which is over 0.2% more than the previous Coalition government planned.
The 2024 Integrated Investment Program (IIP) helps the government decide how to spend money by giving priority to projects that will help us adapt to a changing strategic environment.
According to Australian Manufacturing, this includes $11.1 billion over the next ten years to help the government respond to the Surface Combatant Fleet review by building a bigger and more powerful surface fleet, as well as an extra $1 billion over the next four years to speed up the ADF’s readiness, which will include long-range strike, targeting, and autonomous systems.
In his speech, Minister for Defence Industry Pat Conroy said that by rebuilding the IIP, the government is giving the ADF the tools it needs to make the country safer and also supporting the sovereign defense industry to create jobs and support a future made in Australia.
The minister said, “The Albanese Government is spending a record amount on Australian defence industry, and at the same time, we are ensuring the money contained in the defense budget will be spent more wisely to deliver the capabilities we need,”
The 2024–25 Budget shows that the Australian Government is also putting money into other important areas to make our defenses stronger.
This includes $81.9 million for the defense industry to help create important jobs, draw and hire apprentices through the Shipbuilding Employment Pathways Initiative, support the supply chain, and improve the skills of the defense industry’s workers.
L3Harris Technologies receives order for bomb-dispensing robots from UK Ministry of Defence
As part of the Defense Industry Development Strategy, small and medium-sized companies and the local defense industry will also get grants worth a total of $166.2 million over five years, starting in 2023–24.
Also, from 2024–25 to 2027–28, $28 million will be spent to carry out changes made by the Defense Trade Controls Amendment Act 2024. These changes will help businesses work together and speed up trade between AUKUS partners.
There is also $232.3 million in the budget for international military support and assistance actions from 2023–24 to 2024–25. Of this amount, $144.3 million will be used to give Ukraine more military support.
Also, $17.5 million will be used to create a new Parliamentary Joint Committee on Defense. This will help the parliament keep a closer eye on Defense and understand its role in dealing with Australia’s tough strategic environment.
The 2024–25 Budget confirms more money for defense, which helps carry out the six immediate objectives the government set in response to the Defense Strategic Review.
