Senate Adjournment
13 May 2026
This year’s budget delivers on the Albanese government’s 2026 National Defence Strategy and 2026 Integrated Investment Program, expanding defence investment by $53 billion over the next decade. Defence investment will total $887 billion to 2035-36, funding major projects such as our nuclear powered submarine program through AUKUS.
But this investment is not only about national security. In Victoria, the defence manufacturing sector is turning this record investment into sovereign capability and securing many Australian jobs. In the past month alone, Melbourne companies SYPAQ Systems and Aim Defence, for instance, secured more than $31 million in federal funding contracts to develop counterdrone technology. These projects are moving advanced systems from research into real production, supporting highly skilled engineering, manufacturing and testing jobs in Victoria. In Bendigo, the government also committed $750 million for 268 new Bushmaster vehicles. In Geelong, the armoured vehicle centre of excellence at Avalon is already producing major land systems, including self-propelled artillery and infantry fighting vehicles. At peak production, these programs will support 2,100 jobs.
These investments are important. They’re important because they form an integrated defence manufacturing network that is supported by suppliers across Victoria, from small businesses to major contractors. In fact, Victoria’s defence industry contributes around $10.9 billion annually to our economy and supports over 29,000 workers. These figures will only continue to grow. Thank you for the work that you are doing, and I want to say it is important that we continue investing in our defence manufacturing.
