COMMITTEES

Senator WALSH (Victoria—Minister for Early Childhood Education and Minister for Youth) (15:40): I present two government responses to committee reports as listed on today's Order of Business. In accordance with the usual practice, I seek leave to incorporate the documents in Hansard. Leave granted.

The documents read as follows— Australian Government response to the Joint Standing Committee on Foreign Affairs, Defence and Trade report: Inquiry into the Defence Annual Report 2023-24 June 2026 Introduction The Government continues to drive delivery and significant defence reform across the Defence portfolio to strengthen Australia's security in the face of deteriorating trends in our strategic environment.

The 2026 National Defence Strategy sets out the Government's framework to guide the continued transformation of Australia's capability, force structure, acquisition, recruitment and international engagement. The 2024 National Defence Strategy set out for the first time the concept of National Defence 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 over the longer term so Defence can more ably and independently deter force projection against Australia; Prioritising capability acquisition and sustainment plans to deliver the Strategy of Denial, 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 national resilience as part of National Defence to help shield Australia from regional or global disruption; and Increasing coordination with regional partners to collectively deter actions inimical to our shared interests and shape a region governed by rights and rules, not fear or force.

To deliver the 2026 National Defence Strategy, the Government is investing an additional $14 billion over the next four years and $53 billion over the next 10 years in the 2026 Integrated Investment Program. This increase is historic, taking the total additional investment from the 2024 National Defence Strategy and 2026 National Defence Strategy to $30 billion over the next four years and $117 billion over the decade to 2035-36.

To meet the challenges posed by our complex strategic environment and ensure the Government's investment in Defence is well spent, the Government will continue to drive urgent and fundamental reform within the Defence portfolio. The Government's approach to the transformation and reform is disciplined and ambitious. It includes: Reforming the portfolio capability development and delivery functions; Enhancing the delivery of the conventionally-armed, nuclear-powered submarine enterprise; and Delivering the Government's response to the Defence Estate Audit.

The establishment of the Defence Delivery Agency will ensure capability acquisition and sustainment are streamlined and accelerated. The Government will progress these priorities in line with other strategic and enterprise-level reforms to ensure the Defence portfolio is agile, efficient, effective and has the requisite structures, processes, priorities and culture to deliver this mission.

Recommendation 1 The Committee recommends the publicly available 2026 Integrated Investment Program provide more detail related to space domain project timelines and funding allocation. Response: The Government agrees to this recommendation. The public 2026 Integrated Investment Program includes additional relevant detail on space domain projects and funding allocation.

Recommendation 2 The Committee recommends that the Department of Defence consider ways to encourage and support Defence personnel and their families in relocating to Australia’s Northern Bases, as a priority, and then more generally. Response: The Government agrees with this recommendation. Defence has commenced work in support of personnel relocating to Australia’s Northern Bases in line with the Defence Workforce Plan.

In May 2025, Defence established the People Capability in Defence Northern Bases Working Group (the Working Group). The Working Group supports ADF members and their families. The Working Group reports to the Defence People Committee, and will be the avenue through which Defence addresses this recommendation.

Recommendation 3 The Committee recommends that the Department of Defence continues to engage with government in the Northern Territory at both the territory-wide and local levels to ensure housing, community and other supportive infrastructure, especially local maternity services, reflects the expected growth in the number of Defence personnel and families. Response: The Government agrees with this recommendation.

Defence conducts regular State and Territory consultative forums, which provide a key mechanism for collaboration between Defence and the Northern Territory Government to coordinate and ensure investments support Defence requirements. Defence maintains a strong relationship with the Northern Territory Government on matters that affect Defence personnel and their families.

Defence has been informed throughout the Northern Territory Government’s response to changes in maternity service availability in Darwin, and reduced general practitioner services in Katherine. Early and ongoing visibility, along with engagement with the Northern Territory Department of Health, has allowed Defence to understand the implications for Defence members and their families and to identify any adjustments needed to maintain equity of access to care.

Recommendation 4 The Committee recommends that future Department of Defence reporting, related to critical infrastructure projects funded by the Australian Government and US Force Posture Initiative indicates project timelines and value of funding contribution from respective partners where national security conditions permit. Response: The Government agrees in principle with this recommendation, noting national security conditions.

Information about Australian-funded infrastructure investments that support Australia’s Force Posture Initiatives with the United States is reported through the Integrated Investment Program and through the Public Works Committee. Information about United States-funded infrastructure investments in Australia is publicly available from authoritative United States Government sources published at the time of contract award.

This includes information such as contract value, project scope and timeframes, and the recipient of the award of the contract. Recommendation 5 The Committee recommends that changes to Defence funding continue to be accompanied by a conversation with the Australian public about the changes being experienced in the current strategic environment, including through the biennial National Defence Strategy updates, in so doing generating a degree of ‘social licence’.

Response: The Government agrees with this recommendation. The biennial National Defence Strategy cycle established by the Government ensures that our strategy and investment priorities keep pace with the rapidly evolving strategic environment. This process also facilitates a regular and frank conversation about the importance of investing in Australian Defence.

The National Defence Strategy is prepared alongside the Integrated Investment Program, which provides the Australian public with regular updates on the Government’s capability investment plans aligned to our strategic settings. Recommendation 6 The Committee recommends that the Department of Defence provides, where possible, more granular data in future Defence Annual Reports to include a breakdown of: aggregate figures according to each tier of a defence industrial base expenditure on Australian small and medium enterprise as a proportion of acquisition and sustainment costs.

Recommendation 7 The Committee recommends that the Department of Defence include in future Annual Reports the outcomes and progress of actions related to each sovereign priority, as detailed in the Defence Industry Development Strategy annexes. Response for Recommendations 6 and 7: The Government agrees in principle with these recommendations. Noting some data is classified and unable to be released publicly, aggregated components will be included in the Defence Annual Report.

Defence continues to collect data, develop systems and carry out analysis to develop a more detailed understanding of each tier of the sovereign defence industrial base. Defence also continues to collect data, develop systems and carry out analysis to contribute to a better understanding of the progress of actions related to each sovereign priority. This includes regular reporting and updates to the Defence Industry Development Strategy governance board.

Defence will continue to improve Industrial Intelligence Capability systems and sources to improve the quality of data reported as part of the Defence Annual Report and the performance cycle. Recommendation 8 The Committee recommends that the Australian Government continue to work with industry to identify and promote opportunities, and overcome barriers for Australian small and medium enterprises in the defence sector, within Australia and with international trusted partners.

Response: The Government agrees with this recommendation. Defence will continue to work closely with industry to identify and promote opportunities for Australian small and medium enterprises, and to address barriers to participation in the defence sector domestically and with trusted international partners. Through the Defence Industry Development Strategy, Defence is refining and enhancing its industry support and engagement mechanisms to better align Australian industry with Defence priorities and demand signals.

This includes targeted support to uplift small and medium enterprise capability and readiness for domestic Defence programs, increased integration of Australian businesses into global defence supply chains and enhanced support for export opportunities where these contribute to sustainable sovereign capability. The uplift of Australian small and medium enterprises in the defence sector, particularly to the Tier 2 level, strengthens the resilience of the sovereign defence industrial base and the ability to bring new equipment and innovations into service.

Defence will continue to work with trusted international partners, including AUKUS-related initiatives, to enable Australian industry participation in collaborative capability development and advanced technology pathways. Recommendation 9 The Committee recommends that as part of the design work for the Defence Delivery Agency consideration is given to the establishment of a Defence Coordinator, a role which could provide a project management-type of oversight to keep abreast of all capability related projects, deliver quarterly updates and advice on the status of projects, provide quality control oversight, and be a liaison between industry, the Department of Defence and Ministers.

These functions could be performed by the recently announced National Armaments Director. Response: The Government agrees with this recommendation. The Government has established a whole-of-government taskforce to develop a detailed implementation plan for Defence Reforms, including the establishment of the Defence Delivery Agency (DDA) and the National Armaments Director (NAD).

The taskforce is developing the detailed design and pathway to implement these reforms, including functions of the DDA. Consideration of the merits of establishing a Defence Coordinator, including whether this role should be performed by the NAD, is subject to Government consideration. The reforms are directed at improving Defence's ability to deliver military capability on time, within budget and aligned with Australia's strategic priorities, reflecting the increasing scale and complexity of modern Defence capability programs.

The NAD will be responsible for managing a significant portion of the expansion of Defence capability and a significant increase in Defence spending (an additional $70 billion over the next decade). This includes major programs in naval shipbuilding, guided weapons and explosive ordnance, autonomous systems and other sectors critical for Australia's national security.

Recommendation 10 The Committee recommends that the Department of Defence consider establishing a ‘Pathways to Shipbuilding’ national campaign that raises awareness of career opportunities in shipbuilding. Response: The Government notes this recommendation. The Government will give consideration to establishing a ‘Pathways to Shipbuilding’ national campaign that raises awareness of career opportunities in shipbuilding, as well as the construction of Australia’s future conventionally-armed, nuclear-powered submarines.

Recommendation 11 The Committee recommends that the Department of Defence and relevant Australian Government departments consider measures to increase transparency of Prime System Integrator utilisation of Australian small and medium enterprises in the delivery of Defence outcomes. Response: The Government agrees with this recommendation. The Government continues to refine Defence’s approach to industry participation and transparency through existing and evolving policy settings.

This includes strengthening expectations for Australian industry participation, improving visibility of small and medium enterprises involvement in major Defence programs and ensuring that reporting arrangements support meaningful insight into industry outcomes. Recommendation 12 The Committee recommends that the Department of Defence continue to implement its Defence Innovation, Science and Technology Strategy, providing a coordinated approach to investment thus supporting innovation and successful risk-taking by industry, and to generate data to verify such implementation.

Response: The Government agrees with this recommendation. Implementation of the Defence Innovation, Science and Technology Strategy is ongoing and in line with National Defence Strategy requirements. Defence has embarked on a refresh of the Defence Innovation, Science and Technology Strategy for 2026 consistent with the 2026 National Defence Strategy and informed by the Defence Industry Development Strategy.

Defence is undertaking significant engagement with industry to provide opportunities for industry to gather strategic insight to Defence capability requirements, incentivising innovation and de-risking science and technology projects. Defence is holding briefings and convening industry round tables as part of the strategy refresh process. This consultation will result in further opportunities to identify tangible actions to collaborate with industry.

Recommendation 13 The Committee recommends that the Department of Defence continues to improve and align its procurement practices, documentation, and procedures to efficiently deliver for the new strategic environment and the changed needs of an integrated, focused force. Response: The Government agrees to this recommendation. The consolidation of the Capability Acquisition and Sustainment, Guided Weapons and Explosive Ordnance and Naval Shipbuilding and Sustainment Groups into the Defence Delivery Group from July 2026, and the establishment of the Defence Delivery Agency from July 2027, will substantially improve performance and accountability across the Defence capability delivery enterprise.

Recommendation 14 The Committee encourages the Department of Defence to scope and schedule projects elements at a level appropriate for Australian small and medium enterprise to bid directly where appropriate. Response: The Government agrees with this recommendation. Defence already pursues this objective through a range of mechanisms including Australian industry participation policies and structured engagement with Prime System Integrators in alignment with Sovereign Defence Industrial Priorities.

These approaches enable Defence to expand opportunities for Australian participation while ensuring that capability, integration and delivery considerations are managed appropriately. Additionally, the Advanced Strategic Capabilities Accelerator is continuing to define missions that address urgent capability problems through flexible and agile procurement approaches that enable innovative small to medium enterprises to bid.

The Government's Defence Industry Development Strategy is reforming procurement to simplify how Defence engages with industry, including strengthening engagement with risk. Where direct contracting with small to medium enterprises is suitable and represents value for money, Defence will continue to pursue those opportunities. This approach is supported through the implementation of an industry intelligence capability, which will assist Defence to refine its understanding of industrial capacity, capability and readiness over time.

Through these arrangements, the Government seeks to increase transparency of opportunities, improve access for Australian industry, and ensure that industrial participation settings support both sovereign capability development and timely delivery of Defence outcomes. Recommendation 15 The Committee recommends that the Defence Delivery Agency and or the Australian Submarine Agency look to maintain consistent and clear communication lines with AUKUS industry in relation to tender, procurement and overall engagement.

Response: The Government agrees with this recommendation. AUKUS partners share a vision of supporting an informed, integrated trilateral industrial base, and will continue to rely on a strong trilateral industrial base to deliver capability to our war fighters. AUKUS nations have bolstered efforts to break down barriers to collaboration, create a more integrated defence industrial base and private sector partnership, and identify new opportunities for trilateral capability development, but work continues.

To date, AUKUS industry engagement has been undertaken through dedicated classified and unclassified briefings. AUKUS partners also engage industry on Pillar II through the Advanced Capabilities Industry Forum. One of the five lines of effort set out in Australia’s AUKUS Submarine Industry Strategy is “creating demand clarity through proactive and progressive communication as requirements mature”.

The Strategy sets out how this will occur, from the development and communication of strategic priorities, through to the publication of demand forecasts, and ultimately the contracting and procurement of supplies and services. Recommendation 16 The Committee recommends the Australian Government work to consider measures to improve workforce mobility between AUKUS nations, including consideration of visa settings in AUKUS nations to secure the required workforce and improve worker mobility.

Response: The Government agrees with this recommendation. The Government recognises the importance of creating an enabling environment, which supports AUKUS initiatives, including workforce mobility between AUKUS nations. The Government passed the Defence Trade and Controls Amendments Act 2024 which has enabled defence industry across all three countries to work more seamlessly in a license-free environment, while strengthening collaboration and making it easier to develop advanced scientific, technological and industrial capabilities.

The Australian Submarine Agency continues to work with the United States and United Kingdom to enhance workforce mobility across AUKUS nations. This includes coordinated efforts to ensure visa settings, skills frameworks, and mobility pathways support the workforce required for AUKUS. Key initiatives include: Implementing the Nuclear-Powered Submarine International Placements Program, which places Australian personnel within US and UK facilities and shipyards to build the specialised skills needed for Australia's sovereign nuclear-powered submarine capability.

Progressing trilateral qualifications, licensing, and skills recognition arrangements so that the skills and competencies gained overseas are recognised and transferable when Australian personnel return home. Closely coordinate with relevant agencies responsible for visa settings to support the timely arrival of UK and US personnel providing critical expertise to the Nuclear-Powered Submarine program.

Recommendation 17 The Committee recommends that as part of the 2026 National Defence Strategy and the 2026 Integrated Investment Program planning cycle, the Australian Government should have due regard to the role of smaller, low-cost and expendable uncrewed and autonomous systems. Response: The Government agrees with this recommendation. The Government’s 2026 National Defence Strategy, ensures that strategy and investment priorities keep pace with the rapidly evolving strategic environment.

The development and integration of autonomous systems is included as one of the sovereign defence industrial priorities in the Defence Industry Development Strategy. Uncrewed and autonomous systems, their payloads and enabling systems are a focus of AUKUS Pillar II and are being advanced through the Pillar II Maritime Big Play exercise and experimentation series.

Lessons learnt from these activities will drive interoperability, allowing us to collectively communicate with and use autonomous systems together to deter threats in the Indo-Pacific region. Recommendation 18 The Committee recommends that the next iteration of the Defence Industry Development Strategy articulates how the Australian defence industry would be supported to rapidly scale production and deliver capabilities, including uncrewed and autonomous systems at speed.

Response: The Government agrees with this recommendation. The 2026 Defence Industry Development Strategy (DIDS) will build on the detail in the 2024 DIDS on support provided to the sovereign defence industrial base and the requirements of our Sovereign Defence Industrial Priorities, including the development and integration of autonomous systems. Additionally, the Advanced Strategic Capabilities Accelerator will continue to accelerate delivery of the most relevant and urgent capability problems by rapidly translating innovative technologies into capabilities for the ADF.

Recommendation 19 The Committee recommends that the Australian Government ensures regulations of Defence's use of autonomous systems are fit for purpose and have due regard for international humanitarian law. Response: The Government agrees with this recommendation. Defence is committed to the responsible use of autonomous systems to achieve the Government’s National Defence Strategy.

Defence develops and uses autonomous systems in compliance with Australia’s domestic law and international legal obligations, particularly international humanitarian law, which provides robust governance relevant to Defence’s unique role and operational requirements. Defence is also working with the Department of Foreign Affairs and Trade in support of Australia’s efforts to build international norms and standards on responsible use of autonomous systems in the military domain.

Recommendation 20 The Committee recommends that the planning cycle for the 2026 National Defence Strategy puts due regard on Defence estate security and resilience. Response: The Government agrees with this recommendation. The National Defence Strategy guides the significant and urgent changes required to transform Defence’s capability, force posture, acquisition, recruitment and international engagement.

The biennial National Defence Strategy cycle enables the Government to ensure that our strategy and investment priorities keep pace with the rapidly evolving strategic environment. Recommendation 21 The Committee recommends that the Department of Defence release a public version of the 2023 independent audit into Defence estate as soon as practicable. Response: The Government agrees with this recommendation.

The Government released the Defence Estate Audit on 4 February 2026 and a copy is available at www.defence.gov.au/about/reviews-inquiries/defence-estate-audit. Recommendation 22 The Committee recommends the Department of Defence considers how to strengthen fuel security of Defence estate through the Defence Fuel Resilience Program. Response: The Government agrees with this recommendation.

In response to the 2023 Defence Strategic Review, and in line with the 2026 National Defence Strategy, the Australian Government is investing between $2.7 and $4.8 billion to improve the resilience of the Defence fuel network, through the Defence Fuel Resilience Program. The Defence Fuel Resilience Program will deliver improvements to develop and enhance Defence fuel holdings, storage and distribution capabilities all over Australia.

The Defence Fuel Resilience Program has established a strategic fuel reserve. The reserve is held at multiple locations across Australia in both Defence and industry owned storage sites. Since 2022, Defence has doubled its fuel holdings.

Defence is commencing a number of large fuel infrastructure projects across the Defence fuel network. This includes building increased storage on the Defence estate in northern Australia. Recommendation 23 The Committee recommends that the Department of Defence works with other departments to upskill the language capability Defence personnel in languages other than English, with a focus on languages of Indo-Pacific and Asian languages.

Response: The Government agrees in principle with this recommendation. Through the Defence Force School of Languages, Defence builds and maintains the language capability of Defence personnel. In general, Defence can meet its own need for language capability for a range of required tasks without engagement with other departments.

Examples of such tasks include support to military interoperability during exercises and facilitating Australian Defence Attaché representational engagement. Defence acknowledges that engagement with the Department of Foreign Affairs and Trade has the potential to provide language immersion opportunities through placement of language students in environments helpful to consolidating their skills.

Defence has a predominant focus on Asian and Indo-Pacific languages; of the 20 languages taught at the Defence Force School of Languages, 18 are used in Asia or the Indo-Pacific. Australian Government response to the Legal and Constitutional Affairs report: Customs Legislation Amendment (False Trade Marks Infringement Notices) Bill 2026 MAY 2026 Recommendation 1 The committee recommends that the bill be passed.

Cleared both Houses on the 14th May 2026 and received Royal Assent on the 20th of May 2026. Recommendation 2 The committee considers that ongoing engagement between Australian Border Force and brand-owners would be of benefit, to ensure that the implementation of the proposed infringement notice system is strong and consistently applied. The Government agrees to the recommendation.

The Australian Border Force (ABF) has worked closely with brand owners, including Corrs Chambers Westgarth, Phillip Ormonde Fizpatrick, and Baker McKenzie, on the development of this initiative. Consultation with brand owners was undertaken during annual in-person ABF counterfeits training, as well as directly with individual brand representatives. The ABF will continue to consult with brand owners, including those that made submissions to the Inquiry, to implement this change.