The federal government must spend less and spend better to balance the budget, meet its responsibilities, and deliver programs without cost blowouts. A key target is defence spending, which has grown rapidly to some $60 billion per annum today. This paper shows that, with prompt government action, spending less and better could meet defence needs while saving up to $160bn and years of unnecessary delay.

Key points

• Defence can save up to $160 billion by buying proven military equipment and reducing unnecessary local manufacturing.
• Australian defence procurement delays weaken national security by keeping ageing equipment in service for longer.
• Buying proven overseas equipment delivers military capability faster while freeing funds for jobs, research and defence innovation.
• Defence procurement repeatedly overruns budgets and schedules because projects pursue higher performance requirements, customised designs and domestic production instead of proven military-off-the-shelf equipment.