This paper argues that urgent reform of the defence sector is needed in order for the Australian Defence Force (ADF) to meet the challenges of a deteriorating strategic environment. 

The authors contend that the ADF's current force structure, heavily reliant on small numbers of expensive and complex platforms, is ill-suited to a protracted conflict against a peer adversary. They recommend a shift towards acquiring larger quantities of smaller, more affordable, and rapidly replaceable systems such as armed drones, loitering munitions, and advanced missiles, sourced primarily from Australian medium and small enterprises. This approach, they argue, would enhance the ADF's resilience and adaptability in a high-intensity conflict at the same time as boosting the local Australian economy.

Recommendations

1. Government should commit to having delivered in its first term of office at least one type of armed combat drone designed and produced in Australia into service with the Australian Defence Force.
2. Government must bring non-traditional firms into the defence market by launching Operation Cut Red Tape to cut barriers
   to entry.
3. Government must direct Defence to contract directly with medium and small Australian companies.
4. Start building stockpiles of ammunition and other consumables of war.
5. Work with the private sector to radically simplify Defence’s over-complicated contracting documentation and provide entirely new simple, short form contracts based on the core Commonwealth purchasing principle of value for money.
6. Significantly lift the offer of Australian-developed weapons and countermeasures to the Ukrainian military and cooperate with Kyiv on weapons development.