Inquiry into the Department of Defence Annual Report 2023–24

REPORT - January 2026

List of recommendations

2.62The Committee recommends the publicly available 2026 Integrated Investment Program provide more detail related to space domain project timelines and funding allocation.

2.63The Committee recommends that the Department of Defence consider ways to encourage and support Defence personnel and their families in relocating to Australia’s Northern Bases, as a priority, and then more generally.

2.64The Committee recommends that the Department of Defence continues to engage with government in the Northern Territory at both the territory-wide and local levels to ensure housing, community and other supportive infrastructure, especially local maternity services, reflects the expected growth in the number of Defence personnel and families.

2.65The Committee recommends that future Department of Defence reporting, related to critical infrastructure projects funded by the Australian Government and US Force Posture Initiative indicates project timelines and value of funding contribution from respective partners where national security conditions permit.

2.66The Committee recommends that changes to Defence funding continue to be accompanied by a conversation with the Australian public about the changes being experienced in the current strategic environment, including through the biennial National Defence Strategy updates, in so doing generating a degree of ‘social licence’.

3.95The Committee recommends that the Department of Defence provides, where possible, more granular data in future Defence Annual Reports to include a breakdown of:

aggregate figures according to each tier of a defence industrial base

expenditure on Australian small and medium enterprise as a proportion of acquisition and sustainment costs.

3.96The Committee recommends that the Department of Defence include in future Annual Reports the outcomes and progress of actions related to each sovereign priority, as detailed in the Defence Industry Development Strategy annexes.

3.97The Committee recommends that the Australian Government continue to work with industry to identify and promote opportunities, and overcome barriers for Australian small and medium enterprises in the defence sector, within Australia and with international trusted partners.

3.98The Committee recommends that as part of the design work for the Defence Delivery Agency consideration is given to the establishment of a Defence Coordinator, a role which could provide a project management-type of oversight to keep abreast of all capability related projects, deliver quarterly updates and advice on the status of projects, provide quality control oversight, and be a liaison between industry, the Department of Defence and Ministers. These functions could be performed by the recently announced National Armaments Director.

3.99The Committee recommends that the Department of Defence consider establishing a ‘Pathways to Shipbuilding’ national campaign that raises awareness of career opportunities in shipbuilding.

3.100The Committee recommends that the Department of Defence and relevant Australian Government departments consider measures to increase transparency of Prime System Integrator utilisation of Australian small and medium enterprises in the delivery of Defence outcomes.

3.101The Committee recommends that the Department of Defence continue to implement its Defence Innovation, Science and Technology Strategy, providing a coordinated approach to investment thus supporting innovation and successful risk-taking by industry, and to generate data to verify such implementation.

3.102The Committee recommends that the Department of Defence continues to improve and align its procurement practices, documentation, and procedures to efficiently deliver for the new strategic environment and the changed needs of an integrated, focused force.

3.103The Committee encourages the Department of Defence to scope and schedule projects elements at a level appropriate for Australian small and medium enterprise to bid directly where appropriate.

4.62The Committee recommends that the Defence Delivery Agency and or the Australian Submarine Agency look to maintain consistent and clear communication lines with AUKUS industry in relation to tender, procurement and overall engagement.

4.63The Committee recommends the Australian Government work to consider measures to improve workforce mobility between AUKUS nations, including consideration of visa settings in AUKUS nations to secure the required workforce and improve worker mobility.

5.57The Committee recommends that as part of the 2026 National Defence Strategy and the 2026 Integrated Investment Program planning cycle, the Australian Government should have due regard to the role of smaller, low-cost and expendable uncrewed and autonomous systems.

5.58The Committee recommends that the next iteration of the Defence Industry Development Strategy articulates how the Australian defence industry would be supported to rapidly scale production and deliver capabilities, including uncrewed and autonomous systems at speed.

5.59The Committee recommends that the Australian Government ensures regulations of Defence's use of autonomous systems are fit for purpose and have due regard for international humanitarian law.

6.53The Committee recommends that the planning cycle for the 2026 National Defence Strategy puts due regard on Defence estate security and resilience.

6.54The Committee recommends that the Department of Defence release a public version of the 2023 independent audit into Defence estate as soon as practicable.

6.55The Committee recommends the Department of Defence considers how to strengthen fuel security of Defence estate through the Defence Fuel Resilience Program.

7.62The Committee recommends that the Department of Defence works with other departments to upskill the language capability Defence personnel in languages other than English, with a focus on languages of Indo-Pacific and Asian languages.

Contents