iscover
Australia faces a decisive decade. The new National Defence Strategy puts Australia on a welcomed pathway to real self-reliance built on Australian capability, industry know-how, new technology and investment in our people.
The release of the 2026 National Defence Strategy and Integrated Investment Program is an acknowledgement that Australia’s strategic environment has deteriorated further and that warning times are shrinking.
The Government is to be commended for its emphasis on a whole‑of‑nation approach to defence, a strategy of denial, and building a more self‑reliant and integrated force. The challenge now is in the execution.
Australia has entered a more uncertain decade. As global competition intensifies, technology accelerates and traditional supply chains fracture, the question for our national security community is no longer whether industrial self‑reliance matters - it is how quickly Australia can turn strategy into capability; and policy ambition into national resilience.
At the heart of this challenge sit three key imperatives:
- strengthening industrial self‑reliance across defence and critical industries
- using procurement and investment policy to back Australian industry and SMEs
- recognising and measuring the full defence and economic dividend of investing in Australian industry
Together, these factors will influence the speed in which the Defence’s strategy moves from policy concept to operational reality to provide the security and resilience our nation needs.
Industrial self-reliance is essential, not optional
The 2026 National Defence Strategy is explicit: self‑reliance is a strategic necessity, not an aspiration. In a crisis or conflict, Australia must be able to employ and sustain credible military power even when allied support is constrained or delayed.
That reality places Australia’s industrial base at the centre of national security development, investment and delivery. The strategy recognises that Defence capability is not limited to platforms and weapons systems, but extends to sustainment, integration, test and evaluation, logistics, data, cyber and engineering depth.
Industrial self‑reliance means Australia must be able to produce, repair, adapt, integrate and assure key systems onshore. Ownership, control, intellectual property and decision‑making authority must reside in Australia in the areas that matter most to our strategy of denial and our ability to defend the northern approaches, protect sea lines of communication and maintain operational readiness.
Australian Defence companies already perform much of this role today. They support highly skilled jobs, anchor capability locally, and bring agility and innovation that is essential for rapid adaptation - one of the key lessons from recent conflicts.
At Nova Systems, we work with around 400 Australian‑owned companies across our Nova supply chain. This network of Australian talent contributes to industry’s deep expertise, global competitiveness, and ability to scale in response to Defence priorities. And growing Australian industry to strengthen our industrial foundation is what the strategy identifies as critical to resilience and preparedness.
Understandably, Australia has relied on foreign‑owned primes in the past for critical systems, technology and sustainment. Those partnerships remain important now and into the future. But allies and partners, from North America to Europe are now explicitly prioritising domestic industrial capacity. That shift will inevitably tighten access and change commercial behaviours.
Industrial self‑reliance does not mean self‑sufficiency. As the National Defence Strategy highlights, it means ensuring Australia retains control and competence in the sovereign capabilities that underpin national defence.
Systems integration, mission systems engineering, test and evaluation, guided weapons, border protection, sustainment and munitions must be Australian‑led.
The defence dividend is real and measurable
One of the long‑standing challenges for the Defence industry has been the need to better understand and recognise the economic dividend provided by Australian-owned industry.
Recent research by DeltaPearl Partners shows that shifting just 10 per cent of Defence spending from foreign‑owned companies to majority Australian‑owned firms would generate up to $2.3 billion in annual GDP and more than 12,000 Australian jobs each year.
This report has been welcomed by industry and government because it demonstrates that there is a strong economic reason as well as a strategic reason for investing in Australian industrial capability. The outcome is home-grown capability, greater self-reliance, and economic flow-on.
From strategy to delivery
The recently released Integrated Investment Program (IIP) commits around $425 billion over the next decade to deliver an integrated force across maritime, land, air, space and cyber domains. This scale of investment creates an unprecedented opportunity to embed Australian industry at the core of Defence delivery if policy settings are aligned.
The IIP gives industry clarity about which sectors Defence has determined require Australian ownership and control. Those sectors share common characteristics:
- they directly support Australia’s warfighting posture and denial strategy
- they already have capability that can scale rapidly
- they deliver national resilience
This is where Australian-owned companies like Nova Systems, with deep expertise in systems engineering, integration, test and readiness can deliver immediate value.
We commend the Government’s proposed Advanced Capital Investment Fund to support Australian companies developing AUKUS Pillar II and related capabilities. These policies help create the engine room of long‑term resilience, innovation and readiness.
Industry is looking forward to the release of the Defence Industry Development Strategy to provide further direction and clarity in the weeks ahead.
Australian industry has proven it can deliver when given the chance. The capability exists. The strategy surrounding it is sound. And importantly, the national interest demands it.
As a leader in national safety and security, Nova is looking forward to playing its part in strengthening our national resilience and keeping our communities safe.
