2026 Defence Industry Development Strategy

The Albanese Government has released the 2026 Defence Industry Development Strategy, outlining how we will strengthen Australia’s sovereign defence industrial base and boost self-reliance.

Building on the record defence spending outlined in the 2026 National Defence Strategy and

Integrated investment Program, the Defence Industry Development Strategy outlines the Government’s plan to build the industrial base we need to keep Australia safe.

The Strategy places industry at the centre of national defence and economic security, driving a new era of partnership with government.

The 2026 Defence Industry Development Strategy builds on the Government’s plan to support a defence future made in Australia by:

• Setting targets for large defence primes to grow the defence industrial workforce, with a focus on apprentices. 
  
• Enhancing broader workforce initiatives to grow the required skills, encourage the uptake of STEM learning, and strengthen partnerships between Defence, industry and the education sector. This includes: 
  • Extending the Defence Industry Internship Program (DIIP) with more than $17 million in funding, ensuring more university students gain practical experience in Australia’s growing defence industry. 
    
  • Investing nearly $30 million to expand the Schools Pathway Program, encouraging school students to pursue science, technology, engineering and mathematics studies and explore careers in defence industry.
• Adding the Ghost Shark extra large autonomous underwater vehicle as a priority export capability for the Australian Defence Strategic Sales Office. 
• Reforming and relaunching the USD $3 billion Defence Export Facility, which has been underutilised since its establishment in 2018, making it easier for Defence industry to access this pool of funds.  
  
• Investing an additional $80 million in Defence Industry Development Grants to build self-reliance and support Australian defence businesses.   
  
• Streamlining procurement to enable faster, more agile delivery of capability to Defence, including by implementing a ‘Continuous Capability Development and Delivery’ and ‘Minimum Viable Contracting’ approach.  

Quotes attributable to Minister for Defence Industry, Pat Conroy:

“Industry policy is security policy, and the 2026 Defence Industry Development Strategy recognises the critical role defence industry plays in our national security.

“The case for a strong Australian sovereign defence industrial base has never been clearer. We must ensure Australia can manufacture, sustain and scale the capabilities the Australian Defence Force needs, when and where they are required.

“We are powering defence industry, powering our economy and creating secure jobs. Our hardware, our capabilities, made in Australia, by Australians.”