Australian government publishes 2026 National Defence Strategy and Integrated Investment Program

The Australian Government has released the 2026 National Defence Strategy (NDS) and Integrated Investment Program (IIP). Together, these documents set out the Government’s plan to respond to what it says is Australia’s worsening strategic circumstances. It has allocated $425 billion over the decade to deliver accelerated capability for the integrated, focused force to increase the ADF’s self-reliance and contribute to regional deterrence.

Citing “our dangerous and unpredictable strategic circumstances” the 2026 IIP includes an additional $14 billion over the next four years, and an additional $53 billion over the decade, through Defence funding, estate modernisation and alternative financing where appropriate. As a result, Defence spending as a proportion of Gross Domestic Product (GDP) will rise to 3 per cent by 2033 under the NATO approach, according to the department.

“This is a very significant increase in defence budget in dollar terms measured through direct appropriations and other support for defence,” said Pat Conroy, Minister for Defence Industry, in a TV interview with the ABC.

However, to pay for some of these capabilities Defence plans to cut or re-prioritise about $5 billions-worth of capability, including the RAAF’s C-27J Spartan transport aircraft.

The inaugural NDS delivered in 2024 identified that Australia’s strategic environment was deteriorating and that the nation faced its most challenging circumstances since the Second World War. It set out the concept of National Defence and adopted the Strategy of Denial as the cornerstone of Defence planning.

Defence says the 2026 NDS builds on these foundations by:

• increasing efforts to develop greater self-reliance
• prioritising capability acquisition and sustainment plans, drawing on lessons learned from the war in Ukraine and conflicts in the Middle East
• strengthening the resilience of Australia’s sovereign defence industrial base and building stronger, more diverse international industrial partnerships
• improving national civil preparedness and resilience to help Australia manage and recover from regional or global disruption
• increasing coordination with regional partners to strengthen and preserve the global rules-based order.

The 2026 National Defence Strategy reinforces the industrial foundations needed for National Defence and situates Australia firmly within a network of trusted regional partnerships, says Defence.

The 2026 IIP prioritises investment to:

• deliver an enhanced undersea warfare capability, supported by a sovereign fleet of conventionally-armed, nuclear-powered submarine
• accelerate the delivery of more lethal maritime capabilities
• further expand long-range strike capabilities across the integrated, focused force
• accelerate the introduction of integrated air and missile defence capabilities
• expand the adoption of autonomous and uncrewed systems across the land, air and maritime domains
• protect Australian sites, events and critical infrastructure by fielding C-UAS systems
• deliver a resilient and secure multi-orbit satellite communications system

These investments, including the additional $53 billion in new funding over the decade, will also strengthen the resilience of Australia’s sovereign defence industrial base and build stronger, more diverse international industrial partnerships and supply chains, says Defence.

Copies of the 2026 National Defence Strategy and Integrated Investment Program are available online at https://www.defence.gov.au/nds