Public servants have spent excessive time on briefing and committee work, reducing focus on delivering projects and driving up costs.

As part of a broad Defence Industry Development Strategy, reforms will overhaul the Defence Export Facility and create a Defence Delivery Group that will transition to a Defence Delivery Agency by 2027.

An internal review found defence project costs rose 38%, adding about A$29 billion from conception to government decision.

Australia plans to increase defence spending to 3% of GDP by 2033, from around 2%.

Defence Minister Pat Conroy argues current governance structures, including the Investment Committee, are not fit for purpose and should be scrapped in favor of more effective oversight mechanisms.

Conroy warned that a lack of discipline within defence administration is fueling cost blowouts and delays in delivering capabilities.

The reform aims to modernize processes designed for a different era to set projects up for success.

The package includes accelerating multi‑billion dollar capability projects to bolster national defence and regional stability, with emphasis on shipbuilding, AUKUS-related programs, and drone industry investment.

Australia is reforming how defense projects are delivered to curb cost overruns and delays.

Outdated operating methods have long affected project delivery.

The reforms come amid a major military buildup, including AUKUS, continuous shipbuilding, and domestic missile and drone initiatives.

A new special agency will oversee defence project delivery, with reforms to improve cost assessment and speed up decision-making by trimming bureaucracy.