T
he Australian Government’s 2020 Defence Strategic Update (DSU) noted
the deterioration of Australia’s security environment, particularly the
greater potential for state-on-state conflict, and addressed the need for the
defence enterprise to be resilient to shocks and outside interference.
1
The
2023 Defence Strategic Review (DSR) identifies that strategic circumstances have
further deteriorated; it stresses the need to increase the ability to undertake preci-
sion strike targets at longer range and to ensure sufficient stocks of weapons and
flags the potential for additional measures, including upgrades to weapon storage
and the development of domestic manufacturing capabilities.
2
In 2021, the then–Prime Minister announced the accelerated creation of a
Sovereign Guided Weapons Enterprise.
3
That announcement, which indicated
that strategic industry partners would establish manufacturing capabilities, cre-
ated much excitement in Australia’s local defence industry. The government valued
investment in the enterprise at AUD $1 billion, and also noted that the defence
industry estimates that local production and export could be worth 40 times that
figure over the next two decades, while creating ‘thousands of jobs’.
4
Under these
ANDREW DOWSE, MARIGOLD BLACK, JOHN P. GODGES, CALEB LUCAS, CHRISTOPHER A. MOUTON
Australia’s Sovereign Capability in
Military Weapons
C O R P O R A T I O N
Perspective
EXPERT INSIGHTS ON A TIMELY POLICY ISSUE
July 2023
