Exail.comThe Australian government has released a master plan that defines the strategic rationale for a sovereign defence industrial base and sets out pathways for maximising support for Australian industry and its critical contribution to national security.

The Defence Industry Development Strategy (DIDS) articulates for the first time the defence industrial base needed in the face of the changing strategic circumstances outlined in the Defence Strategic Review. This landmark strategy details the actions the government will take to grow that industrial base, which employs more than 100,000 Australians, and deliver a greater partnership between Defence and industry.

In addition to critical procurement reforms within Defence, the government announced increased funding for defence industry grants programs, taking the total investment to $183.8 million, in alignment with the DIDS.

The government said in its response to the Defence Strategic Review that Australia requires strong defence capabilities of our own and a fully integrated Australian Defence Force to contribute to the strategic balance of power that keeps the peace in our region.

Defence industry is critical to delivering on this key objective. Together, Defence and industry create, maintain and sustain vital capabilities that offer Australia a competitive advantage and contribute to regional stability.

With the release of the DIDS, industry will have clarity on the priorities for Defence through the Sovereign Defence Industrial Priorities (SDIPs). The SDIPs provide detail, certainty and timelines that Australian industry needs to invest and was sorely missing under the former Government.

This new level of detail provides industry with information they need to prepare, invest and deliver on development, production and sustainment of Defence capabilities.

The seven Sovereign Defence Industrial Priorities are:​

  • Maintenance, repair, overhaul and upgrade of Australian Defence Force aircraft.
  • Continuous naval shipbuilding and sustainment.
  • Sustainment and enhancement of the combined arms land system.
  • Domestic manufacture of guided weapons, explosive ordnance and munitions.
  • Development and integration of autonomous systems.
  • Integration and enhancement of battlespace awareness and management systems.
  • Test and evaluation, certification and systems assurance.

Minister for Defence Industry Pat Conroy said: “Australia’s defence industry supports over 100,000 Australian jobs. It is an essential partner in keeping Australians safe at home, secure in the world and employed in well-paid, high skill jobs. This strategy will underpin essential reforms that will ensure that critical capabilities are provided to the men and women of the ADF as soon as possible, while also supporting an industry vital to our national security. I look forward to working with industry to implement the Defence Industry Development Strategy, and deliver an innovative, resilient and competitive Australian defence industrial base that creates a stronger, more secure Australia.”

AIDN welcomes new strategy
AIDN National said it welcomed the release of the Australian Government’s Defence Industry Development strategy (DIDS). The release of the DIDS allows Australia’s Defence Industry to understand the Albanese Governments strategy, and policies to develop the sovereign defence industrial base we need to support National Defence

Notably the release of the Detailed Sovereign Defence Industrial Priorities (Detailed SDIPsand the subsequent commitment to these SDIP’s will allow industry to develop their commercial strategies to focus their business efforts., This allows for industry to undertake investment in skills, infrastructure, plant and machinery and do so knowing that these investments are line with the Defence capability requirements articulated in the National Defence Strategy and its ongoing updates. This is a comprehensive document and the interrelationship between all sections and annexes needs to be read and understood in detail.

AIDN said it acknowledges the ministers direction in the development of this document, the effort of Defence and invited sections of industry as a collaborative approach to create this strategy.  The document calls for ongoing communication, and the establishment of a Tri-partite Defence Industry Council including Government, Industry, and Unions which should ensure the ongoing whole-of-nation approach to developing the sovereign defence industrial base required to meet Defence needs.

AIDN said it is now calling for the release of the Integrated Investment Plan, the IIP is a vital element for industry to fully plan, with confidence, and to move forward.

Since the announcement of the DSR and the release of this document the Australian SME community has been under pressure to remain viable. AIDN understands that Governments will undertake strategic reviews however it must be acknowledged that this process leads to a slowdown in contracts being awarded and flow down of work to the SME Community.  The Government is now progressing their strategic vision with the release of the DIDS, and having now absorbed these delays The Australian SME Defence Industry community remains ready to provide their capability to the ADF.

AIDN intends to work closely with government and the Department to ensure that there is an acceleration in contracts being awarded, Australia’s Defence industry deserves the awarding of contracts to be done efficiently and swiftly, and the procurement reform outlined is welcomed.


For Editorial Inquiries Contact:
Editor Kym Bergmann at kym.bergmann@venturamedia.net

For Advertising Inquiries Contact:
Director of Sales Graham Joss at graham.joss@venturamedia.net

Previous articleKBR selected to support RAN modernisation 
Next articleDroneShield developing SDRs for future C-UAS


  1. I have yet to read the DIDS report but I am somewhat confused relating to the terms set out in the SDIP’s. For example what is the practical difference between the phrases, “Maintenance, repair, overhaul and upgrade” and “Sustainment and enhancement”?. Both phrases just seem like a different way to say the same thing.

    I am also critical of the lack of ambition in the SDIP’s especially in regards autonomous systems. Are we not intending to manufacture the future Ghost Bat and Ghost Shark in Australia? Autonomous systems are a relatively new and emerging technology and we should do our best to invest in the capability to not only design and integrate but build such systems in Australia.

  2. The DIDS report is a little confusing in that it states that it is a commitment to Australian Sovereignty in Defence Industry, then states that any company with an ABN , regardless of where it is owned , can be considered Sovereign. It also states that in certain conditions Australian Ownership is not critical but doesn’t state what those conditions are, So does that mean Companies such as Northrop Grumman , BAE, Thales And even Huawei can be classed as Sovereign Industry?. His document should have addressed the fact that of the 250 odd Australian Companies that applied for the miniscule grants handed out by Government only 11 received them or Why Australian Companies are selling Equipment to overseas Defence Forces But not to the ADF or why it’s imperative we buy from the U.S. or the U.K. whose own Defence Industries are in complete meltdown trying to supply their own Forces….


Please enter your comment!
Please enter your name here