The changes, scheduled to begin in July next year, come amid record investment, including an additional A$70 billion over the next decade.

Officials say the restructuring is essential as Australia shifts to a more integrated force design and a rapidly enlarging procurement pipeline.

New Defence Delivery Agency Announced

The government will merge three major capability groups—the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Group, and the Naval Shipbuilding and Sustainment Group—into a single agency reporting directly to the defence minister.

Officials say the consolidation will cut duplication, centralise decision-making and strengthen accountability for multibillion-dollar programs.

Armaments Director To Oversee Major Projects

A newly appointed national armaments director will advise on acquisition strategies, enforce cost discipline and oversee delivery once Cabinet approves projects.

The role elevates project-management authority to ministerial level, aiming to correct chronic delays and budget overruns across platforms ranging from guided weapons to naval vessels.

Procurement System Under Pressure

Since taking office in May 2022, the government has expanded the defence bureaucracy by roughly 30%, according to internal figures.

With Australia executing its largest peacetime investment in history, procurement schedules have come under strain, prompting calls for stronger “contestability,” more accurate cost estimation and sharper oversight of life-cycle sustainment.

Industry Integration And Force Design

Officials say the overhaul will align industry participation with the national defence strategy, ensuring that local manufacturers can meet rising demand for sovereign capability.

The reforms are expected to accelerate delivery timelines, improve integration across the Australian Defence Force and harden the country’s industrial base for long-term strategic competition.