The overhaul comes as the government searches for a new head of the Australian Submarine Agency, which sits outside of Defence and is responsible for delivering the AUKUS nuclear-powered submarine program. The first boss of the agency, Vice Admiral Jonathan Mead, announced in November that he would step down from the pivotal role in the middle of next year.
Defence Industry Minister Pat Conroy told an Australian Industry Group event last week that the government has been “very frank” about its “strong intentions” to continue reform of the department.
“You can expect shortly to hear even more policy announcements around reform,” Conroy said.
Conroy said the department had lost its “central acquisition core”, and that the government was determined to improve capability delivery and development.
Sources familiar with the overhaul said it was designed to give the government more control over major acquisitions and avoid a repeat of the much-maligned Hunter-class project, which has been beset by design changes, delays and cost overruns.
The government last year decided to cut the number of Hunter-class frigates from nine to six because of concerns they lacked firepower.
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There is a strong view within the government that the department has lacked accountability and needs to be transformed to ensure the defence force can respond to growing geostrategic competition in the Indo-Pacific, including China’s rapid military build up.
The government is also preparing to announce a dramatic overhaul of the sprawling defence estate portfolio, including selling historic sites in several capital cities.
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