Title page 1

Contents 4

Foreword 8

1. Strategic Rationale 11

The evolving geopolitical environment 11

Developing the sovereign defence industrial base 13

2. Australia's Sovereign Defence Industrial Base 19

Defining our sovereign industrial base 19

Strategic partnerships 24

3. Prioritisation 29

The case for prioritisation 29

Approach to prioritisation 29

Australia's Sovereign Defence Industrial Priorities 31

4. Targeted Development of the Industrial Base 37

Tailored engagement and support for our industrial priorities 37

The Defence Industry Hub 38

Supporting successful businesses to scale 40

Whole-of-nation approach 42

The Defence Industry Development Grants Program 44

5. Procurement 47

Continuous Capability Development and Delivery - faster innovation by design 50

Defence as a smart customer 51

Working in partnership with industry to deliver an effective procurement system 54

6. Communication 57

Greater, more targeted engagement 58

Defence industry leadership and oversight 59

Cultivating awareness forums 60

Communicate forums 61

Collaborate forums 62

7. Innovation for Defence Advantage 67

Encouraging innovation in the Defence context 67

8. Workforce 73

Workforce at the heart of industrial capability 73

The Defence Industry Workforce Plan 76

Engaging Students in Science, Technology, Engineering and Mathematics 76

Attracting workers to defence industry 78

Education and Training 79

A focus on apprenticeships 80

Upskilling, retraining and retention 81

Enterprise approach to APS Professionalisation 82

9. Exports and International Collaboration 85

Supporting Growth with Export Outcomes 85

Australian Defence Strategic Sales Office 91

International cooperation 92

10. Security 97

Threats facing defence industry 97

Defence.Secured 98

Defence Industry Security Program 99

International security agreements and partnerships 101

Table 1. Industry Development Objectives 14

Table 2. Leadership and oversight forums 60

Table 3. Cultivate awareness forums 60

Table 4. Communicate forums 61

Table 5. Collaborate forums 63

Figure 1. 2026 Defence Industry Development Strategy Chapters 15

Figure 2. Tiers of the sovereign defence industrial base 22

Figure 3. Industrial capability lifecycle for products and services 23

Figure 4. Defence approach to prioritisation 30

Figure 5. Sovereign Defence Industrial Priorities 32

Figure 6. Industry support across the ecosystem 39

Figure 7. Defence industry forum structure 58

Figure 8. Curating the establishment of sovereign industrial capability 62

Figure 9. The Defence industry skills ecosystem 74

Figure 10. Support to defence exports 88