Australia investing A$750 million in Bushmaster production
By APDR
•Apr 27, 2026
The Australian government is investing A$750 million to deliver a pipeline of Bushmasters for the Australian Defence Force’s (ADF) fleet of protected mobility vehicles in regional Victoria, supporting around 300 local jobs for the next seven years. Thales Australia will build 268 new Bushmasters for the ADF at its Bendigo facility, continuing over 20 years of production of this world-leading capability and providing certainty to the workforce and region that depends on it. The delivery of these additional Bushmasters will significantly boost the ADF’s combat capability and force projection, as part of a modernised protected mobility fleet able to operate in our immediate region. Bushmasters are critical to the integrated force – including littoral manoeuvre, long range fires and the amphibious capable combined arms land system. As the protected mobility vehicle of choice for nine countries, the Bushmaster is an Australian defence industry success story and a priority capability for the Australian Defence Strategic Sales Office. In response to a request, the government has also agreed for recently delivered Bushmasters to be sold to the Netherlands. This export provides further certainty to the Bendigo workforce, with Thales to replace these vehicles for the ADF in their next production round at no cost and in addition to this new order for the Army. The manufacture of these Bushmasters adds to the vehicles already being built to replace those gifted to Ukraine – to support its fight against Russia’s illegal and immoral invasion – and 59 vehicles being acquired under LAND 8113. The government is also investing $450 million towards upgrades of the Thales Hawkei protected mobility vehicles, and the Rheinmetall Medium/Heavy Truck Capability as part of the 2026 Integrated Investment Program’s protected mobility vehicle modernisation program. The modernisation of the Hawkei vehicles will be conducted by Thales in Brisbane, supporting 150 local jobs, and many more across the supply chain in Australia. Through these projects, the Albanese Government is investing $1.2 billion in uplifting ADF’s fleet of protected mobility vehicles. This work will further strengthen Australia’s sovereign defence industry, as well as deliver significant benefits for the local workforce in both Bendigo and Brisbane. Deputy Prime Minister Richard Marles said: “The Australian-built Bushmaster and Hawkei are recognised as world-leading protected mobility vehicles. Through this investment the Albanese Government is sustaining Australian jobs, strengthening our national defence industry and delivering a capability that protects the lives of Australian Defence Force personnel.” Minister for Defence Industry Pat Conroy said: “Built in Bendigo, Bushmasters are an iconic Australian vehicle that delivers world-leading protection to the Australian Defence Force. We’re building close to 300 new Bushmasters, securing around 300 local jobs and delivering long-term certainty to the industry, workers and region that depends on this critical capability.” Thales Australia said in a separate statement that it welcomed the investment “and will work hand in glove with the Australian government to deliver an additional 268 next generation Bushmaster PMVs”. This investment will enable Thales Australia to develop the next generation Bushmaster with the Australian Defence Force, strengthening the Australian Army’s capability to deal with battlefield threats. Capability enhancements include improved protection and mobility, advanced digital systems, and increased adaptability to meet the evolving needs of defence operations including: Increased capacity for carrying personnel and increased tow capacity Stronger additional armour Ability to carry more powerful weapons systems, including roof mounted effectors Opportunity to integrate a wide range of sensors and effectors to efficiently defeat threats A fully modular crew cabin allowing for versatile configurations based on user needs Designed for export with left-hand drive capability and next-gen comms interfaces. This announcement bolsters Australia’s industrial capacity, to design, build and sustain key defence assets, while ensuring a robust supply chain. Production of the next generation Bushmaster will start in 2027. More than 1400 Bushmasters have been manufactured at Thales’ Bendigo facility, with the vehicle being exported to eight nations including the UK, New Zealand, the Netherlands and Japan. Jeff Connolly, CEO Thales Australia & New Zealand said: “This landmark contract ensures the continued evolution of one of the nation’s most trusted and successful military vehicles. The Bushmaster is more than a vehicle, it is a proven life-saving capability operating in the most challenging environments. The Australian government is investing in a unique facility. This announcement supports regional jobs, advanced manufacturing, strengthens the national industrial base, and ensures critical defence expertise remains in Australia.” Andrew Downes, Vice-President, Land, Thales in Australia said: “Making the Bushmaster in Bendigo is a future made in Australia for defence industry. This is a next-generation vehicle, ready for export and improved from lessons learned fighting in Ukraine. It’s also proof of what can happen when industry and Government work together – not only in just delivering a next generation vehicle but in making the investments to ensure our factory is for the 2030s for the manufacture of protected vehicles but also autonomous systems.” For Editorial Inquiries Contact: Editor Kym Bergmann at [email protected] For Advertising Inquiries Contact: Group Sales Director Simon Hadfield at [email protected]
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