Minister Pyne said the Defence Department had signed contracts with both companies ensuring Australian industry involvement, which will create jobs and drive economic growth.
“These are exciting times for Australian Defence industry. We are delivering on the Turnbull government's commitment to growing Australian industry and securing jobs,” Minister Pyne said.
“Both vehicle options are world-class and offer a quantum leap in protection for our soldiers and our military’s operational capability.
“The contract signings formally start the next stage of the evaluation process, known as the Risk Mitigation Activity.
“The Risk Mitigation Activity involves a one year test and evaluation program of the vehicles, including against improved explosive devices.
“The tests will be done at a range of sites within Australia including Defence’s world-class facility at Monegeetta, Victoria.
"As the Minister for Defence Industry, I am pleased to announce that following the recently completed review of the Australian industry involvement in this project, a significant focus of the Risk Mitigation Activity will be to improve opportunities for Australian industry participation.
“This will include showcasing Australian industry capabilities to BAE Systems Australia and Rheinmetall to ensure they have every opportunity to get involved in the project.”