On 16 April the Commonwealth Government has released the 2026 National Defence Strategy and Integrated Investment Program. Together, these documents set out the Government’s plan to respond to current strategic circumstances.
In recognition of “our dangerous and unpredictable strategic circumstances”, the 2026 Integrated Investment Program includes an additional $14 billion over the next four years, and an additional $53 billion over the decade, through Defence funding, estate modernisation and alternative financing where appropriate. As a result, Defence spending as a proportion of Gross Domestic Product (GDP) will rise to 3% by 2033 under the NATO approach.
The Government’s increase in Defence investment coincides with major reforms, including the establishment of the Defence Delivery Agency and the Government’s response to the Estate Audit, to “ensure every dollar of investment is focused on value for money and greater speed to capability.”
2026 National Defence Strategy
The inaugural National Defence Strategy delivered in 2024 identified that Australia’s strategic environment was deteriorating and that our nation faced the most challenging circumstances since World War II. It set out, for the first time, the concept of National Defence and adopted the Strategy of Denial as the cornerstone of Defence planning. The 2026 National Defence Strategy builds on these foundations by:
- increasing efforts to develop greater self-reliance;
- prioritising capability acquisition and sustainment plans, drawing on lessons learned from the war in Ukraine and conflicts in the Middle East;
- strengthening the resilience of Australia’s sovereign defence industrial base and building stronger, more diverse international industrial partnerships;
- improving national civil preparedness and resilience to help Australia manage and recover from regional or global disruption; and
- increasing coordination with regional partners to strengthen and preserve the global rules based order.
The 2026 National Defence Strategy “puts Australia on a path to strengthen our self reliance; it reinforces the industrial foundations needed for National Defence; and it situates Australia firmly within a network of trusted regional partnerships. Above all, it ensures Australia remains secure, sovereign and ready — not just for today’s challenges, but into the future.”
2026 Integrated Investment Program (IIP)
The Government has allocated $425 billion over the decade to deliver accelerated capability for the integrated, focused force – to increase the ADF’s self-reliance and contribute to regional deterrence. The 2026 IIP prioritises investment to:
- deliver an enhanced undersea warfare capability, supported by a sovereign fleet of conventionally-armed, nuclear-powered submarines;
- accelerate the delivery of more lethal maritime capabilities;
- further expand long-range strike capabilities across the integrated, focused force;
- accelerate the introduction of integrated air and missile defence capabilities;
- expand the adoption of autonomous and uncrewed systems across the land, air and maritime domains;
- field counter-uncrewed air systems to protect Australian sites, events and critical infrastructure; and
- deliver a resilient and secure multi-orbit satellite communications
These investments, including the additional $53 billion in new funding over the decade, “will also strengthen the resilience of our sovereign defence industrial base, create and sustain Australian jobs, and build stronger, more diverse international industrial partnerships and supply chains.”
The 2026 IIP also includes targeted investments to increase preparedness and resilience to ensure the ADF is postured and prepared today to respond to unforeseen events tomorrow. Throughout all of this, the Government “continues to invest in Defence’s most important capability — its people. Recruitment, retention, training and skilling are central to delivering on the concept of National Defence.”
The 2026 National Defence Strategy and IIP are available online at:
https://www.defence.gov.au/about/strategic-planning/2026-national-defence-strategy-2026-integrated-investment-program
Source: Department of Defence
