Testing for tomorrow: Why sovereign T&E is central to Australia’s defence edge

In an era marked by rapid technological change, increasingly contested strategic settings and accelerating innovation cycles, test and evaluation (T&E) has emerged as one of the most critical enablers of Australia’s defence capability edge.

The 2024 Defence Industry Development Strategy and the accompanying Sovereign Defence Industrial Priorities both place strong emphasis on the need to strengthen T&E frameworks as part of a more integrated, sovereign industrial base. This is not simply a technical requirement – it is a national security imperative.

Contemporary T&E is no longer confined to proving whether a platform or system “works as designed”. Instead, it underpins decision making across the entire capability life cycle, from concept development and acquisition to sustainment and eventual disposal.

Rigorous T&E provides assurance that systems will operate effectively in the most demanding environments, while also ensuring value for money in an era of tight fiscal pressures and growing operational risk. It reduces the likelihood of costly project overruns, mitigates integration failures across domains, and accelerates the translation of innovation from Australian industry into deployable capability.

The Defence Industrial Development Strategy identifies T&E as a key sovereign enabler, necessary to deliver against the government’s capability priorities. By retaining and strengthening domestic T&E infrastructure – ranging from advanced simulation environments and digital twins to live-fire ranges and specialised laboratories – Australia reduces its reliance on foreign certification and validation pathways. This ensures that critical capabilities can be introduced into service on timelines aligned to strategic need, rather than dependent on external bottlenecks.

Equally, the Sovereign Defence Industrial Priorities recognise T&E as an essential pillar of national resilience. Sovereign capacity to test, evaluate and certify complex systems – whether hypersonics, electronic warfare, cyber tools or integrated air and missile defence – is fundamental to sustaining deterrence credibility and interoperability with partners.

Moreover, a strong T&E ecosystem provides a pathway for Australian industry and research organisations to contribute directly to Defence’s most demanding challenges, fostering innovation while building long-term workforce and technological depth.

As Australia faces an increasingly uncertain Indo-Pacific environment, the demand for timely, robust, and sovereign T&E will only intensify. It is not an adjunct to capability development but the foundation upon which credible force structure and operational confidence rest. Defence, industry and government must therefore continue to prioritise investment in T&E capacity, ensuring it evolves as rapidly as the threats it is designed to counter.

Stephen Kuper
Lead - Defence & Aerospace and Senior Analyst
Momentum Markets