Defence shakeup looms as Albanese Government acknowledges large project failings

Sweeping changes are being made to Australia’s Defence Department to improve the way military capabilities are delivered as concerns grow about cost blowouts and delays on dozens of projects.

The Albanese government will on Monday unveil a shakeup that is likely to see several stand-alone agencies scrapped, and dozens of senior figures moved on as a new British-style national armaments directorate is created.

Defence sources say the government has indicated it wants to overhaul the department’s Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Group as well as the Naval Shipbuilding and Sustainment Group.

Earlier this year it was reported that military service chiefs had been directed to cut 1-star and above positions by 30 percent, with a similar reduction considered for defence public service staff, which would equate to roughly 270 people shown the door.

A recent review of the Australian Submarine Agency which sits outside the Defence Department is understood to have made strong criticisms of the agency which overseas the AUKUS endeavour to acquire nuclear-powered submarines.

Sources familiar with former Defence official Dennis Richardson’s findings, say he has made numerous recommendations on how to improve the direction of the agency which sits outside the Department.

Addressing an Australian Industry Group event, Defence Industry Minister Pat Conroy said he and Defence Minister Richard Marles had been “very frank” about their strong intention to continue the reform agenda they started in late-2022.

“That process is making a huge difference to how we deal with sophisticated projects,” Mr Conroy said last week.

“It gets more attention of both the companies and Defence.

“It clears roadblocks and it actually is making a meaningful difference.”