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Australia’s procurement of new Redback infantry fighting vehicles is under pressure after concerning results from an audit by the Australian National Audit Office.
Auditors examined the effectiveness of Defence’s procurement approach under the LAND 400 Phase 3 infantry fighting vehicle program central to the Australian Army’s future combat capability.
The LAND 400 Phase 3 program is designed to replace armoured personnel carriers with modern IFVs capable of operating in high-threat environments.
The audit by the Australian National Audit Office is assessing whether the Department of Defence conducted an effective tender process and established robust contract arrangements for the acquisition of infantry fighting vehicles. Early reports highlighted systemic challenges in defence procurement.
“Defence’s procurement of infantry fighting vehicles through Land 400 Phase 3 has been partly effective, reflecting trade-offs made between delivery timeframes, future upgrade potential and risk,” according to a results of the report published online.
“Defence moved away from its original intent to address an identified capability gap by pursuing a platform with high technical readiness, instead progressing a more developmental acquisition approach that increased exposure to integration and schedule risk.
“These risks were not clearly communicated to government, nor consistently reflected in tender evaluation and contracting decisions.
“Defence-mandated integration requirements and moving to design solutions that were not mature and proven in a vehicle of this nature and size have had implications for Defence’s ability to deliver the capability as planned.
“Consequently, as at February 2026, very high technical risks related to the vehicle’s mobility and lethality capabilities require resolution.”
The report also highlighted that Defence’s management of the tender process was only partly effective and only partly effective contracting arrangements with Hanwha Defence Australia to support the delivery of intended contract outcomes.
“Defence strengthen compliance with Australian Government policy to ensure that contract payment terms are in accordance with government policy,” the report recommended.
“The date a valid invoice is received by the department is accurately recorded; upon receipt of a valid invoice from a supplier, process receipt and acceptance as soon as practicable to enable the timely payment of invoice; and make interest payments for late invoices promptly in accordance with government policy.”
