The strategy establishes the strategic policy settings for Defence’s engagement with Australia’s defence industry. These settings reflect the changing strategic circumstances and deliver the initiatives required to develop Australia’s sovereign defence industrial base in support of its national security requirements.

The strategy forms part of the Australian Government’s biennial review of Defence’s strategic policy settings and aligns with the 2026 National defence strategy and the Integrated investment program.

The strategy sets three outcomes for Defence and industry to achieve:   

1. deliver a stronger, resilient sovereign defence industrial base that supports the Australian Defence Force (ADF) to protect and defend Australia with greater self-reliance   
2. deliver capability to the integrated, focused force through stronger and diverse international industrial partnerships and reduce supply chain shocks   
3. contribute to national productivity, innovation and economic security by supporting Australian defence businesses to commercialise and scale.

The strategy is provided with a fact sheet an and annex of detailed sovereign defence industrial priorities.