$750m Bushmaster boost locks in Bendigo jobs and strengthens defence capability

The new vehicles form part of a broader push to modernise the ADF’s protected mobility fleet, enhancing its ability to operate across Australia’s immediate region. The Bushmaster plays a key role in the Army’s evolving “integrated force”, supporting missions ranging from littoral manoeuvre to long-range strike and amphibious operations.

Deputy Prime Minister Richard Marles said the investment would deliver both economic and strategic benefits.

“Through this investment, we’re sustaining Australian jobs, strengthening our defence industry, and delivering a capability that protects the lives of ADF personnel,” he said.

The vehicle has become a standout success for Australia’s defence industry, now in service with multiple countries and widely regarded as a benchmark in troop protection.

In a parallel move, the government has approved the sale of recently delivered Bushmasters to the Netherlands following a formal request. Thales will replace those vehicles for the ADF in a future production run at no additional cost, on top of the newly announced order.

Production at Bendigo is already underway to replace vehicles donated to Ukraine, along with an additional 59 Bushmasters being acquired under the LAND 8113 program.

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The Bushmaster investment sits within a wider $1.2 billion package aimed at upgrading Australia’s protected mobility capability. This includes $450 million to modernise the Hawkei vehicles – work that will be carried out in Brisbane, supporting around 150 jobs – as well as improvements to the Army’s medium and heavy truck fleet.

Defence Industry Minister Pat Conroy said the program would underpin the future of the sector. “We’re building close to 300 new Bushmasters, securing around 300 local jobs and providing long-term certainty to the workers and communities that rely on this capability,” Minister Conroy added.

The next-generation Bushmaster will incorporate lessons learned from recent conflicts across the Middle East and Europe, including improved armour, mobility and digital systems. It will also feature greater payload capacity, enhanced weapons integration, modular design options and updated communications systems, making it more adaptable to modern battlefield requirements.

Designed with export markets in mind, the upgraded vehicle will also include left-hand drive capability and advanced interfaces for integrating sensors and weapons systems.

Production of the new fleet is expected to begin in 2027, further cementing Bendigo’s role as a hub for advanced defence manufacturing. More than 1,400 Bushmasters have already been built at the site, with exports to countries including the United Kingdom, New Zealand, the Netherlands and Japan.

Thales Australia & New Zealand CEO Jeff Connolly said the contract would ensure the continued evolution of a vehicle known for saving lives in combat zones.

“This is more than a vehicle – it’s a proven capability operating in some of the world’s toughest environments.”

“This investment supports regional jobs, strengthens Australia’s industrial base, and ensures critical defence expertise remains onshore,” Connolly added.

Thales Land vice president Andrew Downes said the program highlighted what could be achieved through close cooperation between government and industry.

“This is a future made in Australia,” he said. “It’s a next-generation vehicle shaped by real-world experience and built to meet the demands of the decades ahead.”

Stephen Kuper

Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.