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Chapter 2: Early matters for your awareness

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Counterpart Calls

Key Points

Within the first week as Minister for Defence we recommend that you place early calls, in the following order, with the following key allies and partners: s33(a)(iii)

Following this, we recommend additional calls with other key partners in coming weeks, in this order: s33(a)(iii)

Additional calls with other countries can be scheduled in the coming months, as required.

Key Contacts

Mr Peter Tesch Mr Hugh Jeffrey Deputy Secretary First Assistant Secretary International Policy Strategy, Policy and Industry Group Strategy, Policy and Industry Group 02 6265 7211 02 6265 2526 s22 s22

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2021 Cabinet Forward Work Program

Key Points

As the Minister for Defence, you are scheduled to bring forward the following Cabinet submissions over the coming months.

We can organise a series of deep dives on any or all of the submissions to ensure that you are prepared to discuss each item.

Date Meeting Submissions of Defence interest s34

s34

s34

s34

s34

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Potential Ministerial Events

Key Points

We will work with you and your Office to understand what types of events you are interested in attending.

Below is an overview of upcoming events that you may be interested in.

Date Event

05 April Exercise BERSAMA SHIELD commencement.

Annual mid intensity field training exercise (FTX) hosted by Integrated Area Defence System (HQIADS) as part of Five Power Defence Arrangement (FPDA), based in Malaysia or Singapore.

(Australia, UK, Singapore, NZ, Malaysia)

10 April NUSHIP Supply Commissioning in Sydney – speech opportunity

12 April Exercise BALIKATAN commencement.

Capstone exercise conducted bilaterally by the Armed Forces of the Philippines (AFP) and US Pacific Command (USPACOM).

Conducted in Philippines. Minister for Defence Personnel attending.

01 May Traditional Ceremony to mark registration of Indigenous Land Use Agreements with traditional owner groups near Greenvale as part of the Australian-Singapore Military Training Initiative

07 May Solomon Islands Guardian-Class Patrol Boat Handover Ceremony in Henderson WA. Minister for Defence Industry also attending

20 May Townsville Field Training Area Mid-Term Refresh Constructions Commencement – Sod Turning

20 May HMAS Cairns Mid-Term Refresh Constructions Commencement – Sod Turning

20 May RAAF Base Townsville Mid-Term Refresh Constructions Commencement – Sod Turning

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IGADF Afghanistan Inquiry

Key Points

The Inspector-General of the (IGADF) Afghanistan Inquiry (the Afghanistan Inquiry) was completed in November 2020. s34

Defence is continuing to refine the plan while progressing actions were appropriate.

Overview

The Afghanistan Inquiry was initiated in 2016 to determine whether there was any substance to rumours and allegations relating to possible breaches of the Law of Armed Conflict by members of the Special Operations Task Group over the period 2005-2016.

The final report was delivered to the CDF on 06 November 2020. Key findings and recommendations were announced on 19 November 2020. A redacted version of the report was publicly released at that time.

In addition to making findings of there being credible information of criminal conduct, the Afghanistan Inquiry identified serious failings of culture and command accountability. The recommendations deal with three main areas: culture; command reporting and governance; and individual and collective accountability.

A transformational, future-focussed approach is necessary to address these failings and prevent them from recurring. The Defence response therefore includes, and goes beyond, the 143 specified recommendations. Within the department, the Defence Committee is responsible for control and monitoring of all implementation actions.

To provide oversight and assurance relating to Defence’s response to the Afghanistan Inquiry, the Government has established the independent Afghanistan Inquiry Implementation Oversight Panel. The panel, comprised of three eminent Australians, will have complete access to Defence’s work and will report directly to you as Minister for Defence on the implementation of the Afghanistan Inquiry’s recommendations, and their consideration of any wider implications and actions in response to the Inquiry. s34

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Key Contacts

General Angus Campbell Rear Admiral Brett Wolski, RAN Chief of the Defence Force Head Afghanistan Inquiry Response Task Force 02 6265 2858 02 5108 5218 s22 s22

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Key Dates x Request for Proposal release (open approach to market) – 28 August 2020, x Request for Proposal Close – 18 December 2020, x Request for Proposal shortlisted respondents notified – Mid June 2021, x Request For Tender release (to shortlisted respondents) – 17 June 2021, x Transition commencement – no later than November 2022, and x New contract commencement – 1 July 2023.

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Chapter 3: Strategic Environment

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The Changing Strategic Environment

Key Points

As set out in the 2020 Defence Strategic Update, changes in our strategic environment are occurring faster than anticipated in the 2016 Defence White Paper and are undermining to the regional and global orders we want.

To maintain our strategic weight – particularly in our immediate region – Australia must respond to shifting power relations through whole-of-government efforts.

For Defence, this means further enhancing our regional engagement and building credible ADF capability to positively shape our strategic environment, deter actions against Australia’s interests, and respond with credible military force when required. This will require rigorous choices about where to focus finite resources and energy.

Overview

Our security environment is markedly different from when the 2016 Defence White Paper was released. Major power competition has intensified, and the prospect of high-intensity conflict in the Indo-Pacific is less remote than in the past. Military modernisation in the region is accelerating, resulting in the development and deployment of new weapons that challenge Australia’s military capability edge. Consequently, Defence planning can no longer be based on a ten-year strategic warning time for a major conventional attack.

Confidence in the rules-based global order continues to be undermined by disruptions from a widening range of sources, delivered increasingly via cyber and including ‘grey-zone’ activities: like militarisation of the South China Sea, active interference and disinformation campaigns, as well as economic coercion. Defence must be better prepared to respond to these activities, both by bolstering ADF capabilities and by working ever more closely with other elements of Australia’s national power.

The COVID-19 pandemic has altered the economic trajectory of the region and the world and it has sharpened strategic competition between the United States and China. Some countries are using the situation to seek greater influence, while countries that were expected to become more prosperous and stable may experience economic hardship and instability.

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Defence will continue to need to support both domestic and regional responses to the pandemic. The pandemic has also highlighted the importance of secure supply chains for Defence and defence industry, including sovereign industrial capability in some areas.

Threats to human security, such as growing water and food scarcity, are likely to result in greater political instability and friction within and between countries. These threats will be compounded by population growth, urbanisation and extreme weather events in which climate change plays a part. State fragility has the potential to facilitate the spread of terrorism and activities that undermine sovereignty. It follows that disaster response and regional resilience measures demand a higher priority in defence planning.

In response to these changes in the strategic environment, the Government released the 2020 Defence Strategic Update in July 2020. The 2020 Defence Strategic Update provides a new strategic policy framework to ensure Australia is able – and is understood as willing – to deploy military power to shape our environment, deter actions against our interests and, when required, respond with military force.

Defence can provide further, more highly classified briefings, including on the following topics: x 2020 Defence Strategic Update and the Defence Planning Guidance, x Changing strategic environment and drivers, x Regional presence and posture, and x Emerging technology and strategic capabilities.

Key Contacts

Celia Perkins Zoe Cameron First Assistant Secretary Assistant Secretary Strategic Policy Strategic Policy Strategic Policy Division 02 5108 6024 02 5108 2928 s22 s22

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International Priorities

International Policy Division is implementing the 2020 Defence Strategic Update through four key priorities: ensuring our Alliance with the United States is match fit; engineering a tighter regional focus; applying greater attention to strategic geography in the South West Pacific; and building a more effective network of states that can advance international norms consistent with our interests and establish counter-leverage.

The US Alliance

Australia’s alliance with the United States is our most important defence relationship and is central to Australia’s strategic and security arrangements. Although not always well understood in either Australia or the United States, we contribute substantially to the Alliance through intelligence, S&T research, our regional insights and engagement, our geography, and niche industry capabilities. The Alliance offers us unique advantages in intelligence, capability, and technology that we alone could not afford or independently develop. Managing a more assertive and powerful China makes these advantages more important now than ever. But it’s vital that we also update the Alliance to ensure it is match fit for this tougher strategic environment. This year we will be seeking your authority to advance four key Alliance priorities: x Continuing to shift operational cooperation from the Middle East to the Indo-Pacific, including via deepening our ability to operate together in ‘grey-zone’ environments, x Significant deepening of force posture cooperation, including by leveraging Australia’s strategic geography, x Enhancing our collaboration in advanced science and technology, including hypersonics, space, cyber and integrated air and missile defence, and x Placing renewed emphasis on better industrial base collaboration through targeted advocacy across the US system.

Tighter regional focus

The requirement to shape, deter and respond in a more contested Indo-Pacific will demand more of Defence assets and resources. Australia has global interests, and hence the ADF must retain the ability to deploy globally. But the bar for out-of-region commitments will be higher, and the era in which the bulk of our deployed forces are located out of our region is over. In practice, this means Defence is undertaking a fundamental realignment of our force disposition from the Middle East region towards the Indo-Pacific. Our future posture in the Middle East region will be the minimum sufficient contribution to support our enduring interests: counter-terrorism; multilateral security cooperation; ensuring the ADF’s global mobility; and bilateral defence cooperation –

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A greater focus on strategic geography

The South-West Pacific is where Australia’s efforts have the biggest strategic impact. As part of the Pacific Step-up, Defence is delivering an enhanced program of security cooperation, engagement and investment with Pacific countries. Defence’s contribution to the whole-of-government Pacific Step-up includes significant investments in infrastructure development, maritime capability and people-to-people links and complements the Defence Cooperation Program (DCP) and the Pacific Maritime Security Program (PMSP). The DCP has been an integral pillar of Australia’s international defence engagement since the 1960s; in FY2020-21 the budget estimate in the Southwest Pacific is $84.6 million. The PMSP, announced in 2016 as a successor to the Pacific Patrol Boat Program, is a $2 billion commitment over 30 years which will see the delivery of 21 new Guardian-class Patrol Boats to the region. These programs contribute to our primary aim in this region to become the security partner of choice, by increasing the value of our security partnerships and attaining greater integration in our security architecture.

Building effective networks.

While the post-Cold War order will be characterised by an increasingly assertive and powerful China, contesting and constraining China‘s efforts to assert regional dominance will require more effective networks of cooperation, both in our region and globally. These networks cannot rely only on partnering with nations that share our values; they must be interest based – to balance China we will need the cooperation of liberal and illiberal states alike. It is only through these type of networks that we are going to be able to build the counter leverage we need to preserve a regional and global order consistent with our interests.

In our region this will require prioritising operational networks in the north-eastern Indian Ocean, through maritime and mainland South East Asia to Papua New Guinea and the South West Pacific. This includes identifying new avenues for defence cooperation under the Quad, increasing trilateral and mini-lateral activities, and leveraging our traditional partner networks in new ways in the Indo-Pacific, such as the Five-Eyes.

Crucial to these networks will be much stronger bilateral relationships with our top priority partners. First and foremost in the Indo-Pacific after the United States is Japan.Our defence and security partnership is on a steep upward trajectory. We are deepening our partnership by ensuring our exercises, joint training and collaboration projects are increasingly sophisticated and deliver interoperability benefits. In-principle agreement on the Reciprocal Access Agreement was a seminal achievement that will underpin these

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PROTECTED Cabinet efforts and other ambitious initiatives to amplify our joint aspirations in the region. While our defence cooperation with the Republic of Korea is well established, we are looking to invigorate engagement by targeting our focus on promising areas including industry and science and technology. Along with our contributions to United Nations Command, our engagements affords us awareness of Korean Peninsula contingency planning.

Southeast Asia is increasingly anxious about great power competition and does not want to be forced to choose sides. Defence is stepping up engagement in the region to strengthen regional partners’ sovereignty and resilience, including by expanding the ADF’s footprint in Singapore, boosting regional peacekeeping capability through support from Australian industry, and expanding our Defence Attaché network. A key focus is on supporting ASEAN centrality in regional security architecture, including through your active participation in the ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus) framework. Subject to your broader commitments and practical travel considerations, opportunities to establish relationships with regional counterparts include: the Raisina Dialogue in India (13-15 April); the Shangri-La Dialogue in Singapore (04-06 June); the Five Power Defence Arrangements 50th anniversary Ministerial Meeting (Malaysia) in October; and the Indonesia 2+2 later in the year (TBD).

Defence’s engagement with India is growing, with the establishment of a Comprehensive Strategic Partnership in 2020. Our focus now is embedding habits of defence cooperation both bilaterally and jointly with key partners, such as the US, Japan, Indonesia and France. Australia’s participation in Exercise MALABAR in late 2020 – the first in 13 years – was a clear signal that India is ready to deepen defence cooperation. We are also negotiating for reciprocal access to defence facilities, including strategic offshore territories.

We have been successful in encouraging our liberal democratic partners outside the region – including the UK, France, Germany and NATO – to put greater priority on security in the Indo-Pacific, with a focus on non-geographic issues such as information sharing, cyber, and standards setting. With increased interest from regional and extra- regional partners, the Indo-Pacific is set to become a crowded space in 2021 and beyond. We will need to stringently prioritise our engagement activities to maximise the collective impact of our efforts.

Finally, Defence seeks resumption of limited, modest defence engagement with China. Despite (and because of) the downturn in the broader relationship, there is value in continued engagement with the People’s Liberation Army (PLA) to encourage China to act as a responsible global power, maintain people-to-people links, and offset China’s argument that Australia views it solely as a strategic threat. The ADF continues to maintain a strong, ongoing operational presence in the South China Sea, including through our

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Key contacts

Mr Peter Tesch Mr Hugh Jeffrey Deputy Secretary First Assistant Secretary Strategic Policy and Industry Group International Policy 02 6265 7211 Strategic Policy and Industry Group s22 02 6265 2526 s22

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Strategic Guidance

Key Points

Strategy, capability and reform are the triad which underpin Defence culture and thinking, strategic performance, and organisational structure.

The 2020 Defence Strategic Update (Strategy), 2020 Force Structure Plan (Capability) and Lead the Way: Defence Transformation Strategy (Reform) together position Defence to meet the Government’s directive to shape our strategic environment, deter actions inimical to our interests, and respond with credible military force when required.

The Strategy Framework is the architecture Defence uses to ensure government direction on Defence Strategy is implemented across the Defence enterprise.

This framework includes regular reviews of our policy settings and force structure to align strategy, capability and resources in response to the evolving strategic environment, and ensures policy and planning agility in response to emerging risks.

The principal document in the Strategy Framework is the annual Defence Planning Guidance, which provides the classified direction to Defence to implement government direction.

The Strategic Risk Review process supports the Defence Planning Guidance. It is a twice- yearly activity to examine emerging threats and risks to Defence and provide advice to senior leaders on mitigation options.

The Defence Planning Guidance and Strategic Risk Review process guide subsidiary planning processes across Defence. This includes the: x Defence Intelligence Priorities (Chief Defence Intelligence lead), x Defence International Engagement Policy (International Policy Division lead), x Theatre Campaign Plan (Chief Joint Operations lead),

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2020 Defence Strategic Update

Key Points

The 2020 Defence Strategic Update sets out the challenges in Australia’s strategic environment and implications for Defence planning. It details a new strategic policy framework detailing three strategic objectives to ensure Australia is able to deploy military power to: x Shape Australia’s strategic environment, x Deter actions against Australia’s interests, and x Respond with credible military force.

Overview

The Defence Strategic Update’s strategic objectives guide all aspects of Defence’s planning including force structure planning, force generation, international engagement and operations. To implement the new objectives, Defence is: x Prioritising our immediate region (the area ranging from the north-eastern Indian Ocean through maritime and mainland South East Asia to Papua New Guinea and the South West Pacific) as the ADF’s geographical focus, x Growing the ADF’s self-reliance for delivering deterrent effects, x Expanding Defence’s capability to respond to grey-zone activities, working closely with other arms of Government, x Enhancing the lethality of the ADF for the sorts of high-intensity operations that are most likely and highest priority in relation to Australia’s security, and x Maintaining the ADF’s ability to deploy forces globally where the Government chooses to do so, including in the context of US-led coalitions.

Key Contacts

Celia Perkins Zoe Cameron First Assistant Secretary Assistant Secretary Strategic Policy Strategic Policy Strategic Policy Division 02 5108 6024 02 5108 2928 s22 s22

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2020 Force Structure Plan and Integrated Investment Program

Key Points

On 25 February 2016, the Government released the 2016 Defence White Paper and the Integrated Investment Program (IIP) that set out $195 billion in investment in Defence capabilities from FY2016-17 through to FY2025-26.

On the 1 July 2020, the Government released the 2020 Defence Strategic Update and 2020 Force Structure Plan that outlines a new strategic policy framework for Defence and new capability investments in the IIP to deliver it. s47E(d)

Defence is building the new levels of capability, to enhance ADF capability to shape Australia’s strategic environment, to deter actions against Australia’s interests, and to respond with credible military force, when required.

Overview

The dynamic nature of recent events underscore the importance of maintaining an IIP, which continues to remain affordable and optimised to respond to changing priorities, technology advancements, emerging threats and strategic drivers in the region. The Government considers the IIP bi-annually to address these changes.

On 1 July 2020, the Government released the 2020 Defence Strategic Update and 2020 Force Structure Plan that outlines a new strategic policy framework for Defence and new capability investments in the IIP to deliver it.

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Managing Capability Investment

The 2020 Force Structure Plan has refined the 2016 Defence White Paper capability stream framework into five operational domains: Information and Cyber, Maritime, Air, Space, and Land, supported by the critical enabling capabilities of the Defence Enterprise.

To effectively manage and deliver capability across each domain, they are broken into 35 future capability programs with dedicated capability managers.

Defence’s Capability Program Architecture

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In line with Defence’s new Strategic Objectives to shape, deter and respond with credible military capability, the IIP sets out more than $270 billion in capability investment over the decade to FY2029-30. A breakdown of the investments by Domain is provided in the figure below.

The approximate $270 billion in investment over the decade to FY2029-30 for each Domain is (percentages are rounded numbers and may not equate exactly to the investment figures): x Maritime Domain - $75 billion (28%), x Air Domain - $65 billion (24%), x Land Domain - $55 billion (20%), x Information and Cyber Domain - $15 billion (6%), x Space Domain - $7 billion (3%), and x Enterprise Enabler capabilities - $53 billion (19%) that includes:

— $30 billion in Defence Estate and Infrastructure, — $15 billion in other Defence Enterprise and Enabling capabilities, — $5 billion in Defence Enterprise ICT, and — $3 billion in Defence Innovation, Science and Technology.

Building on the Government’s commitments in the 2016 Defence White Paper and the IIP, the 2020 Force Structure Plan sets out over 100 new and adjusted capability investments. These investments will provide new and enhanced capabilities for Defence across its five operational domains supported by the critical enabling capabilities of the Defence Enterprise.

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2015 First Principles Review and the Defence Transformation Strategy is supporting the delivery of Capability Investments

The successful implementation of the 2015 First Principles Review and recently released Lead the Way: Defence Transformation Strategy are ensuring Defence is appropriately structured and organised, with the right business practices to deliver on the 2020 Defence Strategic Update and the 2020 Force Structure Plan.

The Capability Life Cycle was an initiative of the First Principles Review and provides an end to end process governing the design and delivery of Defence capability, and aligning strategy, capability and resources. Key features of the Capability Life Cycle include: x A risk based approach to Defence investment approvals, x The Smart Buyer Decision Making Framework that supports the identification and analysis of key project risks and drivers, and uses this analysis to tailor approval pathways for capability projects, and x Program level submissions and approvals to provide a more strategic view of Defence capability proposals.

Maximising Australian Industry involvement in Capability Investments

Australian Defence industry is a national strategic asset that relies on businesses all over Australia to deliver the capability our ADF needs today, and to provide the national support base necessary to respond to changes in our strategic environment.

The Government remains committed to maximising opportunities for Australian Defence industry to benefit from capability investments outlined in the IIP. Australia’s growing defence industry now has more than 4,000 businesses that employ approximately 30,000 staff. An additional 11,000 Australian companies directly benefit from the Defence investments, and when further downstream suppliers are included the benefits flow to approximately 70,000 workers.

In addition to the current pipeline of investment, Defence has undertaken a review to identify near term investment opportunities to sustain and support the Australian Defence Industry and economic activity, with investment into small and medium enterprises, regional areas and bushfire-affected communities, through the COVID-19 recovery.

Defence has identified investment initiatives in the order of $1 billion over FY2020-21 and FY2021-22 for targeted activities to provide a pipeline of opportunities for Australian Defence industry.

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These investment initiatives across the Defence portfolio are providing a pipeline of opportunities and jobs for Australians and complement the ongoing modernisation of the ADF proposed under the 2020 Force Structure Plan.

These initiatives focus on increasing economic activity through: x Accelerating capability development and delivery, x Building and maintaining Defence infrastructure and assets across regional Australia, x Sustaining ADF platforms and capabilities, x Expanding Defence Industry Grants, managed flexibly across programs, to maintain skills and trades, fund Sovereign Industrial Capability Priorities and support ongoing development of innovative technologies through the Defence Innovation Hub, and x Supporting current and ex-serving ADF members and reserves.

The nature and scale of impacts (domestic and global) due to COVID-19 are evolving. Defence will need to retain flexibility to phase and adjust expenditure on these initiatives to ensure they are affordable and remain suitable.

Key contacts

VADM David Johnston AVM Steven Roberton Vice Chief of the Defence Force Head Force Design 02 6265 2856 Force Design Division s22 02 626 52049 s22

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Lead the Way: Defence Transformation Strategy

Key Points

The Lead the Way: Defence Transformation Strategy sets out the vision and framework for Defence’s journey of continuous transformation.

It delivers on the Government’s Directive for Defence to implement a new strategic policy framework that signals Australia’s ability to project military power and deter actions against our national interests.

Overview

The three priorities of strategy, capability and reform underpin all aspects of Defence’s performance, its planning and its activities. The 2020 Defence Strategic Update and the 2020 Force Structure Plan – together – addressed the first two priorities – strategy and capability. Reform is a natural and the necessary facilitator as their companion. The Transformation Strategy is the backbone of reform. It will be implemented in a manner that ensures Defence becomes a single, strategy-led and centrally-directed organisation that can better respond to an uncertain and volatile external environment and be more adaptable to strategic and technological trends.

The Lead the Way: Defence Transformation Strategy also sets the conditions for success and provides the vision – and the framework – for long-term, enterprise-wide transformation so that Defence continually assesses – and also adjusts our strategic purpose and performance; organisational behaviour; structural fit; and governance and accountability frameworks.

Additionally, our unifying Defence Values – Service, Courage, Respect, Integrity and Excellence – and the associated Defence Behaviours, are designed to strengthen organisational alignment and echo the expectations of the Minister and Defence Senior Leadership Group, to consistently deliver on a continuous improvement mindset.

Key contacts

Mr Tom Clarke Mr Jason Woods First Assistant Secretary Assistant Secretary Enterprise Reform Governance and Reform 02 5108 3483 s22 02 5108 4995 or s22 s22

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Chapter 4: ADF Operations

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Current Operations

Key Points

The Government deploys Defence personnel to operations overseas and within Australia to protect Australia and advance its strategic interests.

Defence is also called upon to provide support to the Australian community and civil authorities within Australia as directed by Government. National security is a whole-of-government commitment, requiring Defence to work with other security agencies, both across Government and internationally, to ensure strategic objectives are achieved.

The Government expects Defence to be able to defend Australia, play an active role in contributing to regional security and stability, and contribute to coalition operations around the world where our interests are engaged.

Key Contacts

Lieutenant General Greg Bilton, AO, CSC Air Vice Marshal Robert Chipman, AM, CSC Chief of Joint Operations Head Military Strategic Commitments Joint Operations Command Military Strategic Commitments Division 02 6128 4000 02 6265 5454 s22 s22

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Operation COVID-19 ASSIST

In 2020, Defence was called upon to protect and assist the Australian community at a time of crisis with the COVID-19 response. On 25 March 2020, Operation COVID-19 ASSIST commenced to oversee the military aspects of Commonwealth support to the states and territories.

Defence is supporting Defence industry and businesses impacted by COVID-19 by taking a united approach to contract management and performance, and adopting a consistent position to all current contracts. The COVID-19 Taskforce is also coordinating proposals from Defence industry to support the whole-of-government response effort to the COVID-19 pandemic.

At its peak on 1 September 2021, more than 3,500 Defence personnel were deployed on Operation COVID-19 Assist and as at 26 March 2021 there are around 1,200 ADF personnel deployed across Australia. They are undertaking tasks such as quarantine compliance monitoring, logistics and planning support.

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Operation COVID-19 Assist – Royal Australian Navy sailor Leading Seaman Medical Clinical Manager s47F (L-R), officer Lieutenant s47F and RAAF Flight Sergeant s47F on Operation COVID-19 Assist in Victoria

Operation NSW FLOOD ASSIST 21-1

Operation NSW FLOOD ASSIST 21-1 is the ADF’s contribution to the whole-of- government efforts to assist the NSW State Government response to the devastating 2021 floods.

On 23 March 2021, a series of deep low pressure troughs resulted in a very high rainfall event in NSW. This resulted in major flooding of a large proportion of eastern NSW and required the evacuation of civilians from rural and regional population areas. On 24 March 2021, Defence commenced Operation NSW FLOOD ASSIST 21-1 to deliver ADF support to the NSW Government.

Defence support will build to at least 500 uniformed personnel by 27 March 2021 under the command of Commander Joint Task Force 629. Principle tasking will include the removal of flood affected property contents, clearance of roads, and clearance of other flood and storm debris to support access to, and restoration of critical infrastructure or essential services. Additional personnel may be deployed to meet the needs of the State government.

Personnel deployed: approximately 350 at 26 March 2021

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Operation RESOLUTE is the ADF’s contribution to the whole-of-government effort to protect Australia's borders and offshore maritime interests through surveillance and response in the maritime approaches to Australia.

Operation RESOLUTE covers 10 per cent of the world's surface and includes the Australia's Exclusive Economic Zone, which extends up to 200 nautical miles from the mainland and offshore territories. Christmas, Cocos Keeling, Heard, McDonald, Macquarie, Norfolk and Lord Howe islands also fall within the Operation RESOLUTE boundaries.

The ADF contributes forces under Operation RESOLUTE, through Joint Task Force 639, to the Maritime Border Command (MBC). The MBC is a multi-agency taskforce, within the Australian Border Force (ABF), which utilises assets assigned from ABF and ADF to conduct civil maritime security operations. The MBC protects Australia's maritime domain from security threats.

Personnel deployed: 600, including Operation SOVEREIGN BORDERS

A Royal Australian Air Force No. 11 Squadron P-8A Poseidon pilot, conducts a rigging run to visually identify a vessel during a mission on Operation Resolute

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Operation SOUTHERN DISCOVERY is the ADF’s contribution to the Australian Antarctic Program (AAP) and is an enduring peace-time activity in support of the Australian Antarctic Division. The ADF’s involvement in the AAP is consistent with the Antarctic Treaty's prohibition of any military activity other than the provision of personnel or equipment in support of scientific or other peaceful purposes.

Personnel deployed: Approximately 15 during the main summer period (19 December 2020 to 20 March 2021)

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Operation ACCORDION

Operation ACCORDION is the ADF operation providing national command and support to the East Region. Personnel deployed under Operation ACCORDION support operations in the region, including Operations OKRA, HIGHROAD and MANITOU, at Australia’s main logistics base.

Personnel deployed: Approximately 600

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Operation Accordion – Australian Army soldier Lance Corporal s47F in Kabul, Afghanistan

Operation ASLAN

Operation ASLAN is the ADF’s contribution to the United Nations' Mission in South Sudan (UNMISS). The ADF's contribution assists the UN in implementing its mandate through the protection of civilians, monitoring and investigating human rights violations and creating the conditions enabling the delivery of humanitarian assistance.

Australian contingent personnel fill key positions within UNMISS such as military liaison officers and operations, aviation and logistics support roles.

Personnel deployed: up to 20

Operation Aslan's objective is to protect civilians, consolidate the peace process, and set the conditions for future development in the Republic of South Sudan

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Operation HIGHROAD is the ADF’s contribution to the NATO-led Operation RESOLUTE support mission. Since 2001, Australia’s mission in Afghanistan has been to support the Afghan Government to contain the threat from international terrorism. Australia currently contributes around 80 Defence personnel to our mission in Afghanistan. Resolute Support is involved in training, advising and assisting the Afghan National Defense and Security Forces.

Personnel deployed: 80

An Australian Army Guardian Angel provides security while officer cadets at the Afghan National Army Officer Academy (ANAOA) undertake instruction in the close training area at Qargha, Afghanistan

Operation MANITOU

Operation MANITOU is the Australian Government's contribution to the international effort to promote maritime security, stability and prosperity in the Middle East region. Australia commits staff officers to the US-led Combined Maritime Forces Headquarters to defeat terrorism, prevent piracy, encourage regional cooperation, and promote a safe maritime environment.

Personnel deployed: 15

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Operation MAZURKA is the ADF’s contribution to the Multinational Force and Observers (MFO) in Sinai, Egypt. Established in 1981, the MFO is a non-UN organisation to oversee long-standing peace agreements between Egypt and Israel. The MFO force is made up from 13 troop contributing nations, including Australia. The Australian contingent assists in the peace process by monitoring the border, preparing daily operational briefings and supporting the MFO Headquarters.

Personnel deployed: 27

Warrant Officer Class Two (WO2) s47F , from Townsville, goes through daily checks of a vehicle check point's defences with Guard Commander, Sergento s47F , of the Columbian Army. WO2 s47F is part of the Force Security Team who are responsible for security of Australian personnel and advising other nation's security forces within the Multinational Force and Observers at North Camp, El Gorah

Operation OKRA

Operation OKRA is the ADF’s contribution to the international Coalition against Daesh (ISIS or ISIL) in Iraq and Syria. Australia's contribution is being closely coordinated with the Iraqi Government, Gulf nations and a broad coalition of international partners known as the Combined Joint Task Force – Operation INHERENT RESOLVE.

Australia’s current focus is on enhancing the capacity of the Iraqi Security Forces to prevent the resurgence of Daesh in Iraq. Australia will continue working closely with Coalition partners and the international community to achieve our shared goals of countering Daesh.

About 110 ADF personnel are deployed to the Middle East in support of Operation OKRA. This includes personnel in the Special Operations Task Group (SOTG) and embedded personnel in Combined Joint Task Force – Operation INHERENT RESOLVE.

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Flying Officer s47F controls the transfer of fuel between a Royal Australian Air Force E-7A Wedgetail and KC-30A Multi-Role Tanker Transport aircraft over the sky’s of Iraq during Operation Okra

Operation ORENDA

Operation ORENDA is the ADF’s contribution to the United Nations Multidimensional Integrated Stabilisation Mission in Mali, otherwise known as MINUSMA. Australia contributes one ADF staff officer to MINUSMA.

Personnel deployed: 1

Operation PALADIN

Operation PALADIN is the ADF’s contribution to the UN Truce Supervision Organisation (UNTSO) across Egypt, Israel, Jordan, Lebanon and Syrian Arab Republic. The ADF commitment assists the UN in implementing its mandate to supervise the truce agreed to in 1948 at the conclusion of the first Arab/Israeli War. Operation PALADIN also assists in other United Nations peacekeeping operations in the region.

The Australian contingent is employed in a variety of roles, including as staff officers in the UNTSO Headquarters in Jerusalem and as military observers who supervise, observe and report on the various cease-fire arrangements, truces and peace treaties that have been negotiated between Israel and neighbouring Arab nations.

Personnel deployed: 12

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Australian Army officer Captain s47F with members of the Fiji Infantry Battalion and United Nations Disengagement Observer Force during a vehicle patrol whilst deployed on OP Paladin with Observer Group Golan in Israeli Occupied Golan

Operation STEADFAST

Operation STEADFAST is based in Kuwait and is the ADF’s contribution to the NATO mission in Iraq. It supports continued capacity building of the Iraqi Security Forces, as part of the multinational effort to assist the Government of Iraq achieve resilient and sustainable security institutions.

Personnel deployed: 2

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Operation ARGOS

Operation ARGOS is the ADF’s commitment to the international effort to enforce United Nations Security Council sanctions on North Korea until it takes concrete steps towards denuclearisation.

Australia conducts periodic deployments in support of Operation ARGOS to monitor and deter illegal ship-to-ship transfers of sanctioned goods, with the number of personnel committed to the mission varying with each deployment.

Personnel deployed: various (numbers commensurate with the platform assigned)

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Operation GATEWAY is the ADF’s enduring contribution to the preservation of regional security and stability in South East Asia. The ADF provides maritime surveillance patrols in the North Indian Ocean and South China Sea as part of this commitment.

Operation GATEWAY helps maintain the bilateral Defence relationship between Australia and Malaysia and is part of the support to Australia's efforts to counter people smuggling in the region. Australia’s commitment to Operation GATEWAY, including the number of personnel involved, varies periodically with each deployment.

Personnel deployed: periodic deployment of 20

An Airborne Electronics Analyst from Royal Australian Air Force No. 10 Squadron captures imagery of shipping during an Operation Gateway patrol over the South China Sea

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Commencing in 2017, Indo-Pacific Endeavour (IPE) is an annual ADF activity, which delivers on the promise of the 2016 Defence White Paper, to strengthen Australia’s engagement and partnerships with regional security forces. IPE promotes security and stability in Australia’s near region through bilateral and multilateral engagement, training and capacity building. IPE 2020 did not occur in 2020 due to COVID-19.

Personnel deployed: varies each year – it has involved more than 1,200 personnel

A Tiger ARH Armed Reconnaissance Helicopter prepares for take-off on board HMAS Canberra during Indo- Pacific Endeavour 2019

Australian Army soldier Musician s47F from the Australian Army Band Sydney, stands at Procedure Alpha on board HMAS Canberra for the arrival into Cam Ranh Bay, Vietnam, during Indo-Pacific Endeavour 2019

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Operation LINESMEN is the ADF contribution to the Inter-Korean peace process, at the request of the United Nations Command (UNC). ADF personnel support the UNC Military Armistice Commission (UNCMAC) to assist with the monitoring of Comprehensive Military Agreement activities within the Demilitarised Zone. This aims to reduce tensions on the Korean Peninsula.

ADF personnel deployed on Operations LINESMEN assist UNCMAC and the Republic of Korea implementation of Comprehensive Military Agreement confidence building activities within the Demilitarised Zone. Australia’s commitment to Operation LINESMEN includes four ADF personnel. Australia will continually review its commitment against the requirements of the UNC and adjust if appropriate.

Personnel deployed: 4

Warrant Officer Class 2 s47F and Leading Aircraftman s47F return from an inspection at Arrowhead Hill as part of their duties on Operation Linesmen

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Operation SOLANIA

Operation SOLANIA is the ADF contribution to maritime surveillance within the Pacific region. It contributes to a wider multi-national program to provide maritime surveillance support in the Pacific, coordinated by the Quadrilateral Defence Coordinating Group. Members of the Quadrilateral Defence Coordinating Group are Australia, France, New Zealand and the United States.

Operation SOLANIA also supports Operations Kuru Kuru, Big Eye, Island Chief, Tui Moana and Rai Balang, which are coordinated maritime surveillance and patrol operations run by the Pacific Island Forum Fisheries Agency. These partner Operations aim to detect and deter Illegal, Unregulated and Unreported fishing activity.

Personnel deployed: various (numbers commensurate with the platform assigned)

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Operation RENDER SAFE is the ADF’s series of activities that aims to safely dispose of World War II vintage explosive remnants of war from South Pacific island nations. Operations occur approximately annually, or in response to an urgent request from a Pacific island nation.

Operation RENDER SAFE activities involve extensive community engagement preparation in the months leading up to a mission to educate local populations about safe explosive handling and disposal procedures. In 2020, the ADF assisted Nauru, however, was unable to undertake any in country additional activities due to COVID-19 travel restrictions. In 2021, the ADF is planning to support Solomon Islands, Vanuatu and Tuvalu.

Personnel deployed: various (numbers dictated by requirements of reactive or planned activity)

Operation Renders Safe – Australian Army soldiers and Royal Solomon Islands Police Force Explosive Ordnance operator, Inspector s47F carry unexploded ordnance to be disposed of during Operation Render Safe 2019

Operation BANNISTER

Operation BANNISTER is the deployment of planning teams in support of local sensitivity assessments or other activities as required.

Personnel deployed: various (numbers dictated by planning team requirements)

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Chapter 5: Defence Capability

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Defence Capability

Key Points

Capability delivery is a core business process that enables Defence to perform its mission of defending Australia and its national interests now and into the future.

The Government has committed to invest approximately $270 billion over the coming decade in new and upgraded Defence capabilities, including more potent and longer-range combat systems and more secure supply chains.

Overview

Within Defence, various Capability Managers are accountable for developing capability solutions to address the priorities identified through Integrated Force Design. The Capability Managers are supported by a Lead Delivery Group for the acquisition, introduction in to service, sustainment and disposal of military capabilities and the associated Fundamental Inputs to Capability.

The Capability Acquisition and Sustainment Group (CASG) is the largest Lead Delivery Group within Defence, whose purpose is to acquire and sustain specialist military equipment, supplies and services on behalf of the ADF.

Capability acquisition

The 2020-21 Portfolio Additional Estimates Statements provides $10.3 billion investment in the Military Equipment Acquisition Program, of which CASG manages $9.7 billion on behalf of the Capability Managers. CASG currently manages 195 major and 13 minor capability acquisition projects within the Integrated Investment Program, across approved and non-approved programs.

Over the last decade major acquisition programs have shifted from predominately off-the- shelf and lower-risk capabilities acquired under the United States Foreign Military Sales program, to an increased number of complex developmental projects and nation building endeavours. Additionally over the last 10 years the number of highest complexity acquisition projects has increased from 11 to 21.

The capital acquisition budget is planned to increase by $6.3 billion (44%) over the forward estimates to be $20.6 billion in 2023-24.

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PROTECTED Cabinet Capability sustainment

The 202-21 Portfolio Additional Estimates Statements also provides $12.6 billion in the Capability Sustainment Program, of which CASG manages $7.6 billion across 114 sustainment products. The sustainment of specialist military equipment includes over 260 fixed-wing aircraft, over 150 rotary-wing aircraft, 60 ships, boats and submarines and over 10,000 armoured, protected and unprotected vehicles.

As identified in the 2020 Defence Strategic Update, the sustainment budget is growing in real terms but remains relatively stable at around 30 per cent of the Defence budget. Over the forward estimates, investment in capability sustainment will grow to approximately $15.6 billion.

Partnership with defence industry

CASG continues to strengthen its strategic partnerships with defence industry, to deliver capability acquisition and sustainment outcomes and in support of ADF operations. New investments outlined in the 2020 Force Structure Plan demonstrate the potential for increased involvement of Australian industry. Defence is working with industry to ensure work is sequenced to manage peaks and throughs in demand, to harness as much as possible the benefits of steady-state work.

Increasing Australian industry’s share of Defence work is leading to greater economic development, more technology transfer, upskilling of our workforce and, ultimately, a stronger defence industrial base. The Australian Industry Capability program is aimed at maximising opportunities for Australian industry participation to participate in Defence projects to build our sovereign defence industrial base.

For each capability proposal considered by Government, Defence is required to demonstrate consideration of capability, cost, schedule and Australian Industry Capability.

Under the umbrella of the whole-of-government response to the COVID-19 pandemic, the Defence and Industry relationship strengthened considerably through several initiatives including the rapid payment of more than $23 billion of invoices since March 2020. These were flowed down quickly through to small Australian businesses and provided certainty to employees and supported businesses critical to Defence capability.

Capability Program Architecture

Following the First Principles Review, Defence established a New Capability Life Cycle (CLC) model.

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The CLC is an integrated, end-to-end process intended to deliver an integrated organisation that is more consistently linked to its strategy and clearly led by its centre, called the One Defence approach.

This end-to-end approach for capability development ensures Capability Managers have clear authority and accountability as sponsors for the delivery of capability outcomes to time and budget. Capability Managers are supported by an integrated capability delivery function and subject to stronger direction setting and contestability from the centre.

Defence employs a Capability Program Architecture to analyse, manage and report on capability outcomes and outputs. The current version is shown in the figure below. The Capability Program Architecture consists of three key components: x Five Domains – Maritime, Land, Air, Space, and Information and Cyber. Domains are defined as ‘an environment through which, or within which, activities and operations are conducted to achieve objectives’. x 35 Capability Programs – 22 of these each reside within one of the five Domains, while 13 span all of the Domains. x 11 Multi-Domain Programs (MDP) – an MDP is a capability management construct which groups a number of Capability Programs together to promote their coordinated development (not represented below).

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Reporting to Government

Bi-Annual Update of the Integrated Investment Program (IIP)

Defence provides a comprehensive update on the IIP to Government on a bi-annual basis, aligned with the budget cycle. These updates inform Government of the changes and decisions required to support delivery of an agile portfolio, which include, but are not limited to: project scope, budget, schedule; and release of IIP funding. A classified briefing is proposed in the first week/first month.

Defence Capability Assessment Program (DCAP)

As part of the Capability Life Cycle, Defence reviews its Force Structure on a biennial basis through the DCAP process. This is a strategy and intelligence informed force design process that provides a method for Defence to deliver “an integrated Joint Force by design” that is capable, potent and agile in achieving the strategic objectives directed by Government.

The DCAP process concludes with an update to Government aligned with the Portfolio Budget Statement submission every two years. Every fourth year, the DCAP process will include a fundamental review of the Force Structure and is reported to government in the

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PROTECTED Cabinet form of the Force Structure Plan. The Force Structure Plan 2020 was the first iteration of this fundamental review.

Major Projects Report

The Major Projects Report is an annual assurance activity conducted jointly with the ANAO and Defence, overseen by the Parliament’s Joint Committee of Public Accounts and Audit. Each annual report examines the largest projects under delivery in Defence against material scope, cost, schedule and risk. The 2019-20 Major Projects Report was tabled in November 2020 and examined the performance of 25 major acquisition projects for the financial year ending 30 June 2020. These 25 projects have a combined total approved budget of $78.7 billion, which represents 60 per cent of total capability acquisition project budget of $130.5 billion.

Capability acquisition projects remain largely on schedule, scope and cost – both by individual projects and in aggregate. Performance against schedule is the main area of concern across the acquisition program. Schedule delays are largely driven by project complexity, ambitious delivery forecasts, and the time required to deliver the full scope over long delivery periods.

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The Projects of Concern framework was established in 2008 and continues to be a successful management tool for remediating difficult projects. This process allows Ministers, Defence and industry to positively work together to establish a pragmatic remediation path, with the objective of returning the project to the usual management framework.

Two projects are currently being managed as Projects of Concern: x MRH-90 Taipan Multi Role Helicopters (AIR 9000 Phases 2, 4 & 6), and x Deployable Defence Air Traffic Management and Control System (AIR 5431 Phase 1).

A further 14 projects are identified as Projects or Products of Interest, with risks associated with capability, schedule, cost or internal management that warrant further attention.

Entry to and exit from the Projects of Concern list is decided by the Minister for Defence and Minister for Defence Industry, either at the recommendation of Defence or at the Minister’s own instigation. The removal of projects and products are recommended based on either project remediation or contract cancellation.

Project and Sustainment Report

Each Delivery Group (CASG, Estate and Infrastructure Group and Chief Information Officer Group), produce classified quarterly reports on their most significant projects and sustainment products for the Defence Ministers and senior Defence executives. For CASG this includes the top 30 projects, along with any Projects of Concern or Projects of Interest. It also includes the top 30 Sustainment Products (by annual budget). The CASG Project and Sustainment Report is consistently sought under Freedom of Information and by the Senate Standing Committee on Foreign Affairs Defence and Trade.

Improved capability delivery performance and reporting across Defence, including greater use of benchmarking and mapping of complexity, is a key reform stream under the Defence Transformation Strategy.

Key Contacts

AVM Steven Roberton Mr Dan Fankhauser Ms Kylie Scholten Head Force Design Group Business Manager First Assistant Secretary Integration VCDF Executive Capability Acquisition & Sustainment Capability Acquisition & Sustainment 02 5108 3122 Group Group s22 02 5108 9013 02 6132 7286 s22 s22

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Maritime Domain

Key Points

Over the next decade, the Government intends to invest $75 billion across the maritime domain – $50 billion in shipbuilding and upgrades – aligning to the Government’s priorities to defend and protect Australia’s sovereign capability.

Within our region, a range of advanced technologies are being fielded, including stealthy, long-range, high-speed weapons; modern warships; growing numbers of advanced submarines; and advanced strike capabilities. These have the potential to challenge our ability to protect our maritime resources, borders and trade, and our ability to project power.

Overview

The total Maritime Capability investment is $75 billion to 2030.

Key Maritime projects include: x Attack class Submarine. This project is developing 12 regionally superior conventionally-powered submarines in partnership with prime contractor Naval Group and combat systems integrator Lockheed Martin Australia, x Hunter class frigate. This project will deliver nine Hunter class frigates optimised for anti-submarine warfare, in partnership with BAE Systems Maritime Australia, to be constructed at Osborne, South Australia, and x Arafura class offshore patrol vessels. This project will deliver 12 ships in partnership with Luerssen Australia, with the first two vessels under construction in Osborne, South Australia, and the remaining 10 at Henderson, Western Australia.

Hunter class frigate

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Surface and Above Water Combat

Defence has made significant progress toward building a more robust capability for maritime air and missile defence, maritime strike, anti-submarine and anti-surface warfare, specifically: x Acquisition and sustainment of nine Hunter class frigates optimised for anti-submarine warfare, for an increasingly competitive undersea environment, x Sustainment and upgrades to the three Hobart class destroyers to maintain these as leading-edge air warfare platforms to protect deployed forces, x Sustainment and upgrades to the eight ANZAC class frigates to maintain the Navy’s strategic edge in surface combatant capability, x Acquisition of maritime strike and advanced surface-to-air weapon systems to give the ADF more options to project force and protect itself in an environment where more countries have increasingly advanced systems, x Acquisition and through-life upgrades of the MH-60R anti-submarine helicopter; x Expanded acquisition of maritime tactical remotely piloted aerial systems to enhance situational awareness across Australia’s vast maritime operating environment, and x Provision of a torpedo self-defence suite to the surface fleet to counter advances in torpedo systems in our region.

TOP: HMAS Hobart (Hobart class destroyer), BOTTOM: HMAS Arunta (ANZAC class frigate)

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PROTECTED Cabinet To maintain sea control, Defence has put in place a range of investment plans to: x Acquire a range of advanced maritime guided weapons, including long-range anti-ship and land strike weapons, and extended range surface-to-air missiles, to give Defence more options to deter aggression against Australia’s interests, x Acquire advanced anti-submarine torpedos for air and surface assets, to build collaborative anti-submarine capability among Australia’s partners, x Participate in the development of directed energy weapons for the close range defence of naval vessels against advanced and emerging weapon systems, x Expand and rationalise the support and logistics helicopter fleet consistent with the expectations for larger naval operations, x Upgrade maritime tactical remotely piloted aerial systems to ensure they are equipped with the latest intelligence, surveillance and reconnaissance capabilities to support the fleet, x Upgrade the Hunter class frigates throughout their service life to ensure tactical superiority and commonality across the fleet, and x Build a replacement for the Hobart class destroyer following the completion of the Hunter class frigate build, to sustain the Navy’s air warfare capability while also supporting the Government’s continuous Australian shipbuilding model.

Undersea Warfare

The Government is committed to the delivery of a regionally superior submarine capability that is fully interoperable with the United States to enhance Australia’s own deterrent, and contribute to regional anti-submarine warfare.

Further priorities for investment in the undersea domain include persistent undersea surveillance; undersea combat; command, control, communications; support; sustainment; and training sub-systems.

In addition to the acquisition and sustainment of 12 Australian-built Attack class submarines, the Government intends to continue with: x Sustainment, capability enhancements, and life of type extensions to the Collins class submarines, which are halfway through their life, to maintain a capability advantage until the transition to the Attack class, x Continued upgrades to the Submarine combat system and heavyweight torpedo, and x Facility and infrastructure upgrades to support the expanding Submarine fleet.

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HMAS Farncomb (Collins class submarine)

To further safeguard Australia’s undersea capability, Defence will also invest in an integrated undersea surveillance system (including exploration of optionally crewed and/or un-crewed surface systems and un-crewed undersea systems), an undersea signature management range, and expanded undersea warfare facilities and infrastructure.

Maritime Mine Warfare Patrol and Geospatial

Protecting Australia’s large exclusive economic zone requires understanding of the maritime environment under our control, sustained presence, and adapting to new technological developments that could increasingly complicate our ability to keep Australian interests safe in the Maritime domain.

Government investment includes: x Acquisition and sustainment of 12 Arafura class offshore patrol vessels, to enhance Australia’s capacity to patrol its maritime territory and near region, x Support for the Hydro Scheme Industry Partnership Program to boost Australia’s commercial hydrographic industry, x Replacement for the sail training ship Young Endeavour, to continue the Government’s commitment to national youth development, and x Procurement of six evolved Cape class patrol boats to de-risk the transition to the new Arafura class from the Navy’s ageing Armidale class patrol boats. This provides better value for money than a planned life extension, lowers operational and transition risk, and supports Australian shipbuilding industry.

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To support further advanced operations throughout the ADF’s strategic operating environment, the Government will improve its capability options through: x Mine warfare capabilities to secure Australia’s maritime approaches, focused on modern, smart sea mine systems, x Enhancements to mine countermeasures and hydrographic capabilities through the acquisition of up to eight additional vessels, built in Australia and based on a variant of the Arafura class offshore patrol vessel design, and x Clearance diving and therapeutic hyperbaric systems to support ship and clearance diving capabilities across the spectrum of operations.

Maritime Combat Support and Amphibious Warfare

Amphibious operations, sea lift and maritime combat logistics are essential for Australia to be able to project power, and to provide Defence with the flexibility to support a broad range of responses to national crises and regional humanitarian assistance requirements.

The acquisition of two new Supply class replenishment ships is progressing alongside sustainment and capability enhancements to the two Canberra class and HMAS Choules amphibious ships, as announced in the 2016 Defence White Paper.

To further expand the ADF’s ability to support an increased presence in the region, Government’s plans include: x Design, development and acquisition of two Australian-built multi-role sealift and replenishment ships to replace HMAS Choules to extend Navy’s sustainment of joint force, x Life extension of Australian Defence Vessel Ocean Protector, and the acquisition of a replacement ship capable of operating in the Southern Ocean, and x Acquisition of a support and salvage vessel to enable the recovery and at-sea repair of large warships.

Key Contacts

RADM Pete Quinn, RAN Ms Sheryl Lutz Head Navy Capability First Assistant Secretary Ships Navy Capability Capability Acquisition & Sustainment Group 02 62653264 02 5109 0454 s22 s22

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Mr Greg Sammut RADM Wendy Malcolm General Manager Submarines Head Maritime Systems Capability Acquisition & Sustainment Group Capability Acquisition & Sustainment Group 02 5108 9391 02 5108 6359 s22 s22

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Key Points

The 2020 Force Structure Plan detailed the Government’s planned investment in naval shipbuilding of $50 billion over 2020-2030, and $137 billion in the period of 2020-2040.

This is part of the longer-term plans for an investment of $168-183 billion in the acquisition or upgrade of up to 23 different classes of Navy and Army maritime vessels out to the completion of the Attack class Submarine in the 2050s.

Given the scale, complexity and ambition of the naval shipbuilding enterprise, and the fact it includes several inherently high-risk programs, some risks will continue to be realised no matter how well the enterprise is managed.

Overview

The COVID-19 pandemic has increased the level of risk across the naval shipbuilding enterprise and all of its constituent programs and continues to play out in unexpected and unpredictable ways, especially across the four shipbuilding projects currently in the construction phase (the Arafura offshore patrol vessels, Guardian patrol boats, evolved Cape patrol boats and Supply class replenishment vessels).

x The level of risk to all programs will remain elevated until the pandemic is over, in Australia and globally.

There remains a high risk that workforce supply will be unable to fully meet demand in some specific job roles in the short term around certain specialised job types such as combat systems engineers, especially in South Australia. Overall however, the picture is improving as the Enterprise prime contractors, Defence and other Government agencies work with the Naval Shipbuilding College to mitigate risks. s47E(d)

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PROTECTED Cabinet Delays to the production schedule of six evolved Cape class patrol boats, due to non- compliant aluminium incorporated in the first two boats, is being mitigated effectively by Austal but will still result in delays to the delivery of boats ranging from 16 weeks (the first two boats) to 5 weeks (the final boat).

Five of the nine Guardian class patrol boats that have been gifted to Pacific Island countries have been rendered non-operational due to cracked propulsion system couplings. x A short-term fix to return the boats to service is being implemented with a long-term fix to be determined.

The key enablers for the enterprise are still growing and maturing, including the naval shipbuilding workforce, industry base and infrastructure. There remains a risk that these enabling elements will not develop at the rate required to deliver continuous naval shipbuilding at the pace envisaged by the Government.

Recent achievements

Conclusion of negotiations between Defence and Naval Group for the amendments to the Strategic Partnering Agreement, committing Naval Group to spend at least 60 per cent of the contract value in Australia over the life of the program.

The first Supply class replenishment ship completed trials 12-14 December 2020 after final fit out at Fleet Base West in Western Australia. The ship was accepted by Defence on 18 December 2020 and subsequently sailed to her new homeport at Fleet Base East in New South Wales.

Prototyping for the Hunter class frigate program commenced at Osborne South in South Australia on schedule on 18 December 2020.

The Naval Shipbuilding Advisory Board held its last meeting on 17 December 2020. The new Naval Shipbuilding Expert Advisory Panel met for the first time on 24 February 2021.

Construction of the fourth Arafura class offshore patrol vessel commenced on schedule at Henderson in Western Australia on 04 January 2021 (this is the second of 10 Arafura class under contract to be constructed at Henderson; the first two are under construction at Osborne South).

The second of four Guardian class patrol boats was handed over to Papua New Guinea on 17 March 2021 (the ninth Guardian class patrol boat off the production line at Henderson).

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PROTECTED Cabinet The second Supply class replenishment ship completed builder’s sea trials in Spain in March 2021 and is due to arrive in Australia in late May 2021.

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Key Contacts

Mr Tony Dalton Mr Andrew Byrne Deputy Secretary First Assistant Secretary National Naval Shipbuilding National Naval Shipbuilding Office 02 5109 0702 02 5108 8927 s22 s22

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Key Points

To equip the land forces to meet the challenges into the future, new investments are being made in vehicles, strike weapons, watercraft, helicopters, information effects, logistics resilience and emerging robotics and autonomous systems. These capabilities will increase the land force’s combat power for Government options available to deploy the ADF.

Infantry equipment that is reaching end of life is being reviewed to ensure the land force retains a decisive land combat capability into the future.

Overview

The total Land Capability investment is $55 billion to 2030.

Key topical Land projects include: x Hawkei Protected Mobility Vehicles. This project is delivering 1,100 Hawkei Australian designed and built vehicles and 1,058 trailers. Thales is the Prime contractor and was approved to commence full rate production in September 2020 at their facility in Bendigo, Victoria,

— To date the ADF has accepted 260 vehicles and trailers. x Boxer Combat Reconnaissance Program. This project will deliver 211 Boxer Combat Reconnaissance Vehicles, through prime contractor is Rheinmetall Defence Australia, based in south-east Queensland, and x The next phase of this program (LAND 400 Phase 3) will acquire 450 Infantry Fighting Vehicles and a Manoeuvre Support Vehicle Capability comprising up to 17 vehicles.

— Hanwha Defence Australia and Rheinmetall Defence Australia are the two shortlisted tenderers. A final evaluation to select the preferred tenderer is planned in 2022.

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Hawkei Protected Mobility Vehicle Boxer Combat Reconnaissance Vehicle

Combat Vehicles

The priority areas of our Land Combat vehicles include: x Procurement of the Boxer Combat Reconnaissance Vehicle, to be built in south-east Queensland, x Procurement of an Infantry Fighting Vehicle to replace the M113AS4 armoured personnel carrier (note: currently undergoing competitive tender process), x Upgrading the Abrams M1 main battle tank and support systems, and x Procurement of a new armoured combat engineering capability, to be based on the Abrams M1 chassis.

Combat Support

To further strengthen land capability in contested environments, the enhancements planned for land combat include: x Two regiments of self-propelled Howitzers to be built in Victoria, x Enhancement of the Howitzer to maximise the flexibility of the ADF’s suite of artillery capabilities, x Procurement of a battery of long-range rocket artillery and missile systems, to support a land based operational strike capability, x Additional ADF protective equipment, sensors and medical supplies appropriate in a range of chemical, biological, radiological and nuclear contaminated environments, and x Establishment of a coordination office for the implementation of robotics and across the land force to protect personnel in combat.

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To provide land forces with the mobility, protection and sustainment, a range of investments are being made in land mobility and support capabilities, including: x Continued construction and maintenance of the Australian-built Bushmaster and Hawkei protected mobility vehicles in Victoria, x Replacing the ageing fleet of medium and heavy fleet trucks with modern, high-capacity vehicles that will protect crews, carry greater loads and ensure continuous logistic support, x Bulk fuel storage and distribution system to sustain deployed forces, and x Deployable Health System to ensure the best medical care for ADF personnel, and provide a flexible capability for use in humanitarian assistance and disaster relief operations.

To enhance the ADF’s ability to respond to a range of circumstances across the region, further enhancement will be made to land mobility and support through planned investment in: x New Army watercraft, x Fleet of inshore patrol craft, x Several large vessels to enhance the amphibious lift capacity of the ADF, x Additional ADF medical equipment on-board vehicles and helicopters, x Acquisition of a fleet of un-crewed vehicles to support and enhance war-fighting capability, and x Upgrades to the current Bushmaster protected mobility vehicles incorporating operational lessons from Afghanistan and recent disaster relief operations.

Battlefield Aviation

Defence is continuing to invest in battlefield aviation capabilities including: x Replacement of the Tiger Armed Reconnaissance Helicopter from the mid-2020s with the Boeing Apache Guardian helicopter. The Government announced the down-select on 15 January 2021 (final selection is subject to Government Gate 2 approval in 2022), x Procurement of a special operations rotary wing capability, x Continued operation of a multi-role troop lift helicopter and the Chinook multi-mission heavy-lift transport helicopter, and x Continued operation of piloted aerial vehicles to provide intelligence, surveillance and reconnaissance in support of land forces.

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PROTECTED Cabinet Future investment in battlefield aviation is planned in aviation capabilities to ensure the land force maintains flexibility in movement and superiority in battlefield surveillance and reconnaissance networks, including: x Small remotely piloted aerial systems to support the land force’s surveillance and reconnaissance capabilities, x The acquisition of long-range rotorcraft to enable land force projection and support at greater ranges, and x In the longer term, the acquisition of a next generation rotorcraft will replace elements of battlefield aviation with enhanced capability.

Land, Intelligence, Surveillance, Reconnaissance and Electronic Warfare

Defence requires technologically advanced, networked and integrated systems for joint and coalition operations. The protection of land forces also requires cyber and counter improvised explosive device (CIED) capabilities. To provide these capabilities, the Government will continue its investment in the enhancement of CIED protection, geospatial support to land forces, and a land tactical electronic warfare capability.

Land command, control, communications and computers

Defence continues to invest in a suite of projects including battlefield command, control and communications systems; battle management systems; and deployable computer networks. Land command, control, communications and computers will include technologically advanced, networked and integrated systems that support joint and coalition operations.

Key Contacts

MAJGEN Simon Stuart MAJGEN Andrew Bottrell Head Land Capability Head Land Systems Division Army Headquarters CASG 02 5108 7758 03 8567 4589 s22 s22

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MAJGEN Simon Stuart MAJGEN Andrew Bottrell Head Land Capability Head Land Systems Division Army Headquarters CASG 02 5108 7758 03 8567 4589 s22 s22

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Key Points

The Air Capability investment is $65 billion to 2030.

Key topical Air projects include: x The procurement of 72 F-35A Joint Strike Fighters (AIR 6000). Defence declared Initial Operating Capability in December 2020. As of 17 February 2020, Australia has a total of 33 F-35A aircraft. To date, over 50 Australian companies have directly shared more than $2.7 billion in global F-35 production and sustainment contracts. Importantly, the Government upskilling program has also seen increased competiveness of some of these companies into other highly technical sectors. x The EA-18G Growler Electronic Attack aircraft (AIR 5349 Phase 6). Government approved the acquisition of 12 aircraft in 2013. On January 2018, an Australian Growler was damaged beyond repair due to a catastrophic uncontained failure of the right engine. The crew were uninjured.

Overview

The Air Domain is critical to situational awareness during peacetime operations and rapid response in times of disaster or conflict. Throughout our region, countries are acquiring advanced aerial capabilities, including networked fifth-generation combat aircraft and high- speed, long-range weapons.

At $65 billion over the next ten years, the Government’s capability investment in the Air Domain will involve improved weapon systems to give Defence the capability to deter or defeat attacks as far from Australia as possible.

Air Combat

Air combat power is a critical capability, both in protecting Australia and deployed forces from adversary threats, and giving Australia a credible capability to hold at risk an adversary’s forces and infrastructure at distance from Australia.

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PROTECTED Cabinet The Government’s commitment to the ADF’s air combat capability includes: x A fully integrated air combat management system to meet future air combat and air control management needs, and assure the ADF’s ability to address threats to Australia’s interests amid rapid modernisation of air capability in the Indo-Pacific, x Procurement and integration of advanced longer-range strike weapon systems onto combat aircraft to allow the Air Force to operate at greater range and avoid increasingly sophisticated air defences, x The acquisition of advanced loitering munitions to give the ADF more options for persistent presence and strike in an increasingly complex environment, x The installation and integration of improved self-protection systems on a range of aircraft to enhance the survivability of aircrew and aircraft against modern weapons, and x Enhanced Joint Terminal Attack Controller training through enhancements to the fleet of training aircraft that allow dedicated air-to-ground attack controller training.

Intelligence, Surveillance, Reconnaissance and Electronic Warfare

To ensure Australia retains an effective air intelligence, surveillance and reconnaissance, and electronic warfare capability, Government has invested in support and upgrades to the EA-18G Growler electronic attack aircraft, and to the Jindalee Operational Radar Network.

Defence will also bring into service the MQ-9B Sky Guardian remotely piloted aerial system and the MC-55A Peregrine airborne electronic warfare aircraft.

Building on these capabilities, the Government is planning investments to further strengthen our intelligence, surveillance and reconnaissance capabilities to support the ADF’s awareness of our region through: x Expansion of the Jindalee Operational Radar Network’s site in Longreach, Queensland, to provide wide area surveillance of Australia’s eastern approaches and enhance Australia’s strategic situational awareness, x Development and acquisition of additional crewed and remotely piloted intelligence, surveillance and reconnaissance aircraft, to increase both the numbers and sophisticate the ADF’s tactical and strategic situational awareness, x Replacement and expansion of the airborne electronic attack capability upon the retirement of EA-18G Growler to ensure Australia retains an advanced electronic attack capability, and x Ground control systems to enable situational awareness in heavily defended environments and/or where the electromagnetic system is contested by adversaries.

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PROTECTED Cabinet Air Mobility

Air mobility is a core air power role, and its availability underpins most ADF activities and Australia’s ability to project power. As a result of previous significant Government investment, Australia has a robust air mobility capability.

The Government will maintain this through continued investment in support and upgrades to the C-130J Hercules medium mobility aircraft, the C-17A Globemaster III heavy mobility aircraft, the existing KC-30A Multi-Role Tanker Transport aircraft, and the C-27J Spartan light mobility aircraft.

The Government priorities are to further strengthen the ADF’s air mobility capability to project and sustain the ADF’s presence in the strategic operating environment, including through: x Procurement and integration of a Large Aircraft Countermeasures System across the Air Mobility Group to enhance survivability against modern threats, x Expanded replacement fleet for the C-130J Hercules aircraft to improve the lift capacity of the ADF in response to growing demand for these assets, and x Expanded replacement fleet for the KC-30A air-to-air refuelling aircraft, including crewed and/or remotely piloted platforms, to enhance the capacity of the Air Force to operate at long range and sustain operations.

Combat Air Support

Ongoing investment is required in a range of projects and activities to enable air operations, including air base operations, air traffic management and air crew training activities. This includes the continued development of the Woomera Range Facility; the upgrade of Defence air traffic management systems; and upgrades to Air Force training systems such as the PC-21 fleet, simulators and training aids.

The Government’s plans also include the following investments to better sustain operations and strengthen the resilience of Australia’s air power: x Three deployable hangars to cater for Boeing 737-sized aircraft and eight fighter aircraft or troop-lift helicopter-sized airframes, to better sustain operations when deployed away from bases; x Training and deployable kits for repairing damaged aircraft, to better sustain aircraft deployed on operations; x Acquisition of equipment to decontaminate aircraft or an airbase in the event of a chemical, biological, radiological or nuclear attack; and

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PROTECTED Cabinet x Infrastructure enhancements to improve the capability, capacity, and survivability of northern Australian air bases, to boost the resilience of Australian air power.

Integrated Air and Missile Defence

To protect the joint force, the Government will continue to invest in support and upgrades for the E-7A Wedgetail airborne early warning and control aircraft, as well as the development and support of a joint air battle management system to better coordinate and synchronise ADF operations.

In addition, plans for the E-7A replacement will now involve increasing the fleet to provide greater coverage of the highly-complex future air and joint-battlefield environment that will include a proliferation of autonomous systems and long-range and high-speed weapons.

The proliferation of ballistic and very high-speed missiles means our deployed forces require enhanced deployable air and anti-missile defence when on operations. In addition to investment in defensive systems, the Government will continue to work closely with the United States on countering ballistic missile threats.

E-7A Wedgetail

Maritime Patrol and Response

Defence will continue with the procurement and introduction into service of the MQ-4C Triton remotely piloted system, and support and upgrades to the P-8A Poseidon maritime patrol aircraft. Compared to legacy systems, these provide a significant enhancement in Defence’s ability to maintain situational awareness of Australia’s maritime approaches.

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22PROTECTED Cabinet In addition, Government will keep under review the future balance between the MQ-4C Triton, the P-8A Poseidon, and other capabilities in light of emerging technological and strategic change.

P-8A Poseidon MQ-4C Triton To balance its investments in future initiatives, through the Force Structure Plan 2020, Defence will not proceed with plans for: x Two additional KC-30A Multi-Role Tanker Transports, with increased funding directed towards sustainment and spares to allow for greater availability of current aircraft, x Additional C-17 heavy-lift aircraft, as the C-17 is no longer produced. Funding for the C130J replacement program has been increased to provide for an expanded replacement fleet, and x A dedicated long-range search and rescue capability, with this role to be managed by introducing search and rescue capability into planning for future air mobility platforms.

Key Contacts

AVM Catherine Roberts AVM Greg Hoffmann Head Air Capability Head Aerospace Systems Division Air Force Headquarters CASG 02 5108 6876 02 5108 6866 s22 s22

Mr Shane Fairweather FAS Rotary, Aerospace and Surveillance Systems CASG 02 5109 5316 s22

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PROTECTED Cabinet Space Domain

Key Points

The total Space Capability investment is around $7 billion to 2030.

The Defence Strategic Update acknowledged the criticality of the Space Domain and a commitment to invest in Defence space-related capabilities and activities, including in sovereign-controlled satellites.

The Chief of Air Force is the Space Domain Lead and has developed a two-year body of work to develop and enhance the Space Domain. The Space Domain will be advanced from a nascent and siloed approach to space, into an enterprise able to operate in an integrated and networked manner, in a complex, contested and futuristic space environment.

Defence is working closely with the United States and other Combined Space Operations Initiative partners, other government agencies, academia and industry to transform the way we operate in space, including in relation to satellite communications, space domain awareness, precision navigation and timing, and intelligence, surveillance and reconnaissance.

Overview

Defence’s Space Services and Space Control programs space services and space control programs, along with the Geospatial Information and Intelligence program, contribute to Defence operations by providing assured access to space capabilities, enabling situational awareness and delivering real-time communications and position, navigation and timing information.

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PROTECTED Cabinet

Space Services

Satellite communications and position, navigation and timing data are essential for the command and control of deployed forces. These systems enable the sharing of real-time operational and logistical information and for the placement, navigation and synchronisation of Defence assets. The Government will also continue to invest in upgrades and support to existing and future satellite communications systems.

Space Control

Australia holds a unique geographical position to contribute significantly to collective space domain awareness with our allies and partners. Defence currently hosts a United States C-Band Radar and Space Surveillance Telescope, and we will continue to build our space domain awareness capabilities with the United States and other key partners into the future. To ensure Defence take full advantage of the large volumes of information that will be developed, the Government is also investing in growing the intelligence and supporting workforce.

Key Contacts

AVM Catherine Roberts Mr Shane Fairweather Head Air Capability FAS Rotary, Aerospace and Surveillance Systems Air Force Headquarters CASG 02 5108 6876 02 5109 5316 s22 s22

MAJGEN Susan Coyle Mr Ivan Zlabur Head Information Warfare FAS Joint Systems Division Joint Capability Group CASG 02 5131 4200 02 5108 8600 s22 s22

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PROTECTED Cabinet Information and Cyber Domain

Key Points

The total Information and Cyber capability investment is around $15 billion to 2030, which is underpinned by around $5 billion investment in Enterprise ICT.

The Defence Strategic Update acknowledged the criticality of the Information and Cyber Domain and a committed to invest in measures to ensure that critical information and communications infrastructure, systems and networks are defended against cyber attacks.

The Chief of Joint Capabilities is the Information and Cyber Domain Lead, and works with the Chief Information Officer to coordinate across Defence to provide a coherent approach.

The nascent Information and Cyber Domain is being rapidly matured through development of concepts for operations and policy frameworks, partnership building, workforce development and growth and capability projects to mature a Defence wide system that is able to meet Defence needs and contribute to wider government effects.

Defence is working closely with other agencies, industry, academia and key allies (such as the United States) to define our operations in this domain, including ensuring security by design, information sharing, and coordinated responses to malicious cyber activities.

Overview

Information is critical to all aspects of military operations across the competition spectrum. Secure and resilient systems for the storage and transmission of information are a vital component of every capability area within Defence. The Joint Cyber and Enterprise ICT programs deliver capabilities the secure, defend our systems and allow Defence operations to remain resilient.

Cyber Worthiness

ADF Cyberworthiness is an initiative to ensuring the Defence systems, networks and platforms are secure by design and remain so throughout their operating life. This initiative is a whole of life approach building on global best practices to understand and assure the survivability and resilience of ADF capabilities in a contested cyber environment.

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PROTECTED Cabinet

Information and Cyber Workforce

Despite the technical nature of the underpinning systems, operations in the Information and Cyber Domain are innately human centric. The development of a robust professional workforce, supported by appropriate technology, is key to Defence’s cyber capability growth. Defence has recognised that the workforce in this Domain is in a growing and highly competitive field. To attract, train and develop the workforce Defence has crated initiatives such as the ADF Cyber Gap Program, the Cyber Skills Challenge, and the development of a Defence Cyber College.

Information and Cyber Capabilities

The investment is in capabilities to respond to grey-zone activities, including improved situational awareness, cyber capabilities, electronic warfare and information operations. Defence’s uniquely diverse range of systems, networks and platforms require specialised and specific tools and capabilities to ensure their ongoing protection. Defence is investing in programs to develop and maintain these tools with the assistance of agencies, industry, academia and key allies. These enterprise and operational cyberspace capabilities will be further enabled through enhanced integration of intelligence capabilities to provide agile and aware systems to ensure the security and operation of Defence’s underpinning information and systems.

Key Contacts

MAJGEN Susan Coyle Mr Dean Welsh Head Information Warfare FAS ICT Delivery Division Joint Capabilities Group CIOG 02 5131 4200 02 5130 1106 s22 s22

MAJGEN Murray Mr Ivan Zlabur Head ICT Operations FAS Joint Systems Division CIOG CASG 02 5130 1659 02 5108 8600 s22 s22

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PROTECTED Cabinet Enterprise Programs

Key Points

The Government will invest around $15 billion over the next decade in Defence capabilities critical to the generation and sustainment of military power.

In a strategic environment that is more complex and contested than in the past, it will be more important for Defence to have the ability to sustain a wider range of missions for longer periods of time.

Enterprise Programs enable warfighting operations across all Domains.

Guided weapons and explosive ordnance

One of the most consistent and important lessons from previous conflicts around the world has been how quickly supplies of precision munitions can come under stress, especially for those nations that possess little domestic capacity to manufacture them. In a world that is becoming more contested and where supply chains have been shown to be fragile in moments of crisis, it is important for Defence to re-evaluate its capacity to sustain the ADF on operations.

Defence Fuel Transformation Program

Fuel is a critical and essential input to Defence capability and Defence relies upon Australia’s commercial fuel suppliers and the global supply chain for access to its liquid fuels. Australia’s commercial fuel suppliers have proven over time to be highly reliable and agile in meeting Defence’s fuel supply requirements.

The Australian Government has identified approximately $1.2 billion over the next three decades to fund an improved Defence Fuel Supply Chain under the Defence Fuel Transformation Program. The Defence Fuel Transformation Program will reduce enterprise risk, increase Defence Fuel Supply Chain resilience, and optimise total cost of ownership through a combination of actions, including targeted risk reduction and increased industry collaboration.

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PROTECTED Cabinet Defence Intelligence

Key Points

Defence Intelligence is a critical enabler of Defence and Government policy and decision- making, in addition to being a vital component of military operations. Due to a more uncertain contemporary security environment there was a need to consolidate essential Defence intelligence functions into a single enterprise. On 01 January 2021, Defence finalised the implementation of its new Defence Intelligence Group (DIG) under the Chief of Defence Intelligence (CDI).

This group brings together intelligence policy and capability components from across Defence, in combination with Defence’s existing National Intelligence Community (NIC) agencies. The Defence NIC agencies include the Australian Geospatial Intelligence Organisation (AGO) and the Defence intelligence Organisation (DIO).

Overview

The DIG is headed by the Chief of Defence Intelligence (CDI) who acts as the primary intelligence advisor to you, as Minister for Defence, the Secretary, and CDF. The position of CDI is dual-hatted as Director DIO and leads elements and functions of the Defence intelligence enterprise that comprise the DIG.

The establishment of the DIG is a critical element of Defence’s reform activities. This reform has improved coordination of the Defence intelligence enterprise and provides enhanced support to ADF operations, as well as taking advantage of emerging technologies.

These changes also enhance the coordination of support to national intelligence requirements delivered through AGO and DIO. AGO produces and delivers geospatial intelligence and a range of products and services including topographic maps, navigational charts and support for precision-guided weapons. DIO provides strategic all source analysis to support Government decision-making and military operations.

The DIG is also responsible for delivering intelligence capability for Defence. This is managed through several intelligence capability programs, including: x A Geospatial Information and Intelligence Program of $5 billion over 10 years and $10 billion over 20 years, and x A Joint Intelligence Program of $2.5 billion over 10 years and $4.5 billion over 20 years.

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PROTECTED Cabinet Key Contacts

LTGEN Gavan Reynolds Chief of Defence Intelligence 02 61275077 s22

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PROTECTED Cabinet Defence Industry

Key Points

The Government wants to create a robust, resilient, and internationally competitive Australian defence industry, primarily to directly support the ADF’s capability needs. This also services the broader national resilience and economic recovery agenda by supporting exporters to access international markets. And it helps create supply chain inter- dependencies with allies and partners.

Defence also regulates exports of military and potential dual-use technologies on behalf of government, in compliance with national legislation and international arms control and non-proliferation treaties.

Defence runs programs to develop the Australian defence industrial base, including: assisting businesses find export opportunities; creating and developing a workforce with the skills defence industry needs and; innovation programs to bring new technologies and capabilities into service.

But our biggest lever is the $270 billion investment in Defence capability that will provide unprecedented opportunities for Australian industry, supporting tens of thousands of jobs across Australia.

The Australian Industry Capability Program requires that prime companies competing for Defence contracts demonstrate how they will maximise Australian industry participation.

The ten current Sovereign Industrial Capability Priorities provide clear guidance on the most important industrial capabilities that Defence relies on to deliver its core objectives.

The Government has committed around $3 billion of capability investment across Defence innovation, science and technology over the next decade.

Overview

The Government’s 2020 Defence Strategic Update and the 2020 Force Structure Plan outline an unprecedented program of investment and opportunity for defence industry.

Over the next decade the Government is investing $270 billion to develop the capability of the ADF. x Notably in long-range strike weapons, offensive and defensive cyber capabilities, and area denial systems.

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PROTECTED Cabinet x This is in addition to core capability investments, including the Hunter Class Frigates, Attack Class Submarines, Arafura Class patrol boats, F-35A Joint Strike Fighters, Boxer combat reconnaissance vehicles, the Jindalee Operational Radar Network, and Defence infrastructure and facilities.

A genuine partnership between Defence and industry is critical to ensuring our industrial base can effectively support the ADF.

This means making it easier for industry to work with Defence to access opportunities in the defence sector, including in major capability and infrastructure programs.

The goal of building the industrial base we need is challenging.

The sector is made up of a small number of large primes and many small businesses. There are relatively few medium-sized businesses.

Defence demand is inconsistent, meaning Australian businesses must have a diversified customer base, including through exports.

Defence administers several programs to support defence industry. x Grants programs promote sovereign industrial capability priorities, global competitiveness, innovation and STEM and skilling. x Defence drives export promotion and skills enhancement through the Australian Defence Export Office and National Defence Industry Skills Office. s47E(c)

x The Defence Innovation Hub (alongside the Next Generation Technologies Fund run by the Defence Science and Technology Group) is an integral part of the Defence Capability Innovation System.

— The Hub is investing over $1bn in the development of cutting-edge Australian technologies that can enhance Defence’s warfighting capability. x The Centre for Defence Industry Capability (CDIC), currently being relocated to Defence from the Department of Industry, Science, Energy and Resources, assists Australian businesses to navigate the defence sector and prepare to meet requirements for engaging in Defence work. x Defence Export Controls is the Commonwealth regulator of military and dual-use exports. Under your delegations, export permits are required for a diverse range of goods and technologies. s47E(c) x only you may refuse a permit or prohibit an export.

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PROTECTED Cabinet Our policy settings are having an impact on…

x The partnership between Defence and industry is stronger than ever, guided by increased clarity on capability priorities and funding and underpinned by the Government’s commitment to maximising Australian industry participation. x That partnership has benefited from close collaboration between SP&IG and CASG, to ensure policy settings are responsive to, and help inform and shape, engagement with industry on major projects. x Through the Australian Industry Capability program, Australian defence industry is considered at every stage of the procurement process, including how projects will develop Sovereign Industrial Capability Priorities.

— An the Independent AIC Plan Audit Program has been established, to ensure businesses comply with their commitments, and procurement templates to strengthen the application of our Government’s AIC policy.

s47E(d) s47E(d)

s47E(d) s47E(d)

Key Contacts

Tony Fraser Dr Peter Sawczak Deputy Secretary First Assistant Secretary CASG Defence Industry Policy 02 5109 0573 05 5109 0372 s22 s22

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Legislation administered by the Minister for Defence x Australian Defence Force Cover Act 2015 x Australian Defence Force Superannuation Act 2015 x Cockatoo and Schnapper Islands Act 1949 x Control of Naval Waters Act 1918 x Defence Act 1903, except to the extent administered by the Prime Minister and the Attorney- General and paragraph 124(1)(qba) x Defence Force Discipline Act 1982 x Defence Force (Home Loans Assistance) Act 1990 x Defence Force Retirement and Death Benefits Act 1973 x Defence Force Retirement and Death Benefits (Pension Increases) Acts x Defence Forces Retirement Benefits Act 1948 x Defence Forces Retirement Benefits (Pension Increases) Acts x Defence Forces Special Retirement Benefits Act 1960 x Defence Home Ownership Assistance Scheme Act 2008 x Defence Housing Australia Act 1987 x Defence (Parliamentary Candidates) Act 1969 x Defence Reserve Service (Protection) Act 2001 x Defence (Road Transport Legislation Exemption) Act 2006 x Defence (Special Undertakings) Act 1952 x Defence Trade Controls Act 2012 x Explosives Act 1961 x Geneva Conventions Act 1957, Part IV x Intelligence Services Act 2001, insofar as it relates to the Australian Signals Directorate and that part of the Department of Defence known as the Australian Geospatial-Intelligence Organisation and the Defence Intelligence Organisation x Military Rehabilitation and Compensation Act 2004, Chapter 3, in relation to rehabilitation of serving members of the Australian Defence Force; and Chapter 6, in relation to treatment for injuries and diseases of serving members of the Australian Defence Force x Military Superannuation and Benefits Act 1991 x Royal Australian Air Force Veterans' Residences Act 1953 x Services Trust Funds Act 1947 x War Gratuity Act 1945 x Weapons of Mass Destruction (Prevention of Proliferation) Act 1995

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