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Government to scrap multiple defence agencies to fight massive blowouts

  • On Monday, the Albanese government will unveil a major overhaul of the Department of Defence to curb multibillion-dollar cost blowouts and years-long delays, officials said.
  • Defence Industry Minister Pat Conroy warned project complexity has roughly doubled to almost 60 per cent, and Defence Minister Richard Marles noted 28 projects ran a combined 97 years late, while defence spending is forecast to rise to about $100 billion annually by 2034.
  • Officials described the new structure as the three delivery groups will merge into the Defence Delivery Agency, which will become independent on July 1, 2027, with a national armaments director, Marles said.
  • On July 1, 2026, the three mothballed agencies will merge into the Defence Delivery Agency as part of a two-stage process, with full independence and no job cuts by July 1, 2027.
  • Defence Industry Minister Pat Conroy said `It is the biggest reform to the defence organisation in 50 years,` while industry sources warned the shake-up could scrap agencies and cause roughly 270 job losses.
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  • 42% of the sources lean Left, 42% of the sources lean Right
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PerthNow broke the news in City of Perth, Australia on Sunday, November 30, 2025.
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