The Australian government announced a major defense overhaul aimed at cutting budgets and time on the same day it was confirmed that Australians were tracking a Chinese naval flotilla in the Philippine Sea.
In the biggest changes to Australia's defense bureaucracy since the mid-1970s, Labor will merge three departments: the Security and Capabilities Acquisition Group, the Weapons and Guided Explosives Group and the Naval Shipbuilding and Security Group.
The Australian government will establish a new independent procurement agency to manage complex multi-billion dollar defense and military projects, bringing together the organizations responsible for overseeing nearly 40% of the Department of Defense's current functions, The Guardian writes.
Australian Defense Minister Richard Marles and Defense Industry Minister Pat Conroy announced changes to streamline defense procurement and reduce project budgets and delivery times on Monday, months after Marles said they were “in agreement” on his major review.
“Establishment of a defense procurement agency would significantly increase defense spending and that was at the heart of our decision,” Marles said.
The new organization, called the Defense Supply Agency, will become operational in July 2026 under the leadership of a new national weapons director. By July 2027, it will be an independent agency, independent of the Ministry of Defense, writes The Guardian.
“This is one of the most significant defense changes we have ever seen. It will dramatically change the way defense operates,” Marles said. “It will significantly improve the quality of defense spending and will ensure that when we spend more money in the defense budget, we do so so that programs are delivered on time and within budget.”
No major job cuts are expected as the changes will be led by an interim taskforce that will begin work soon. Labor says more talent is needed to manage major defense projects, with about 30 projects currently underway but 97 years behind schedule.
The Australian Defense Minister also confirmed that Australia is tracking a naval flotilla of the Chinese People's Liberation Army (PLA) in the Philippine Sea amid concerns that the flotilla may be heading towards Australian waters.
The naval group could arrive off the Australian coast before the end of the year, but its destination is currently unknown. “We continuously monitor maritime activity in our geographic areas of interest,” Marles said. “We will regularly monitor the movements of PLA ships when such movements occur. We will closely monitor them until we are confident that they are not approaching Australia.”
Earlier this year, a Chinese naval task force unexpectedly sailed around the Australian coast and caused concern at the highest levels in Canberra. Marles said it was too early to say whether the newest fleet would head to Australia.
The Kangaroo Nation's Department of Defense oversees all air and sea activities around Australia, including in the Pacific, Indian Ocean and Asia.
In February, a Chinese cruiser, destroyer and supply ship made an unannounced voyage to Australia, including conducting live-fire exercises in the Tasman Sea. The exercise forced commercial aircraft to change flight routes due to serious safety concerns, The Guardian recalled.
