More than $1b in Defence funding for Canberra delayed

Defence Minister Richard Marles on Wednesday revealed the federal government planned to spend $330 billion on Defence procurement over the next decade.

That sum will include the re-prioritisation of $22.5 billion in projects over the next four years, and $72.8 billion over the decade.

This includes cancellations, delays and re-scoping.

Among that will be $1.4 billion from "planned enhancements to Defence facilities across Canberra", with the funding instead being funnelled toward operational bases, including RAAF Bases Darwin, Townsville and Learmonth.

Strengthening military bases in northern Australia was one of the key recommendations of the Defence Strategic Review, published in April 2023.

The delays will affect the Canberra Defence Precinct broadly, which includes the Russell precinct, the Australian Defence Force Academy, the Duntroon area, Campbell Park and HMAS Harman.

It is understood they do not impact plans to rebuild the Australian Defence Force Academy accommodation at a cost of $1.25 billion.

Separate working and training accommodation for the Defence Force Academy could be impacted, but pending government approvals, Canberra could receive the money in just over a decade.

The billion-dollar Campbell precinct has been prioritised following advice from the Defence Strategic Review to build capability in the workforce. Defence has previously said the current complex is "at the end of its useful life and presents health and psychosocial hazards by virtue of its poor design".

The government has not revealed the full list of projects which have been reprioritised over the next decade.

While some projects are considered classified, others will not be published yet because affected industry groups are still being informed.

A reduction in the number of new Infantry Fighting Vehicles from 450 to 129, announced in 2023, will save $10 billion, while scrapping a planned acquisition of two large support vessels for the Navy will save $4.1 billion over the decade.

"These are all examples of difficult decisions to delay projects, reduce the scope of projects, to cancel projects" Mr Marles said.

"Of vital importance these decisions will see the over-programming of the Integrated Investment Program come down to manageable levels.

"We are heading to that sweet spot of 20 per cent over-programming and with it a defence budget which is under control."

Defence Industry Minister Pat Conroy said the changes will reshape "the ADF's acquisition program to ensure it has the critical capabilities needed for the next decade and beyond.

"This is a record investment in defence capability and an investment in a future made in Australia, which will not only make the country safer, but also deliver dividends for industry and jobs for hard-working Australians," Mr Conroy said.

The last procurement plan had allocated $270 billion for the 10-year period to 2029-30. That plan was unveiled back in 2020.