2026 Defence Industry Development Strategy – Industry Essentials

The latest instalment of the Defence Industry Development Strategy sets out the Government’s renewed action plan to grow Australia’s sovereign defence industrial base and boost self-reliance.

On 2 July 2026, the Federal Government released the 2026 Defence Industry Development Strategy (Strategy), identifying the key areas of reform required to strengthen Australia’s sovereign defence industrial base.

The Strategy is guided by the following Sovereign Defence Industrial Priorities:

1. Maintenance, repair, overhaul and upgrade of Australian Defence Force aircraft;
2. Continuous naval shipbuilding and sustainment (CSS);
3. Sustainment and enhancement of the combined-arms land system;
4. Domestic manufacture of guided weapons, explosive ordnance and munitions;
5. Development and integration of autonomous systems; and
6. Integration and enhancement of battlespace awareness and management systems; and
7. Test and evaluation, certification and systems assurance (TESCA)[1].

While the overarching priorities above remain unchanged from the 2024 strategy, the underlying details for each priority have been refined. For more information, see Figure 5 of the Strategy.

This insight briefly summarises the key aspects arising from the Strategy that relate to growing the industrial base, procurement and procurement reform, and exports and international collaboration.