The federal government has unveiled a significant restructuring of the Department of Defence, consolidating three major agencies into a single, streamlined entity. Deputy Prime Minister and Defence Minister Richard Marles announced that the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Enterprise, and the Naval Shipbuilding and Sustainment Group will be merged to form the new Defence Delivery Agency.
Marles emphasized that the creation of the Defence Delivery Agency is aimed at achieving “a much bigger bang for buck” in defence spending. “This reform puts a stronger focus on delivery and ensures that projects are managed more effectively,” he said. “It will allow government to receive early advice on challenges affecting specific programs or projects, so that delays and cost overruns are minimized, and projects are delivered on time and within budget.”
The restructure will be implemented in a two-stage process. On 1 July 2026, the three existing agencies will formally merge into the Defence Delivery Agency. One year later, the agency will become an independent and autonomous body, giving it more operational flexibility and accountability.
Marles assured the public and defence personnel that no jobs will be cut as part of the overhaul. The government expects the move to significantly streamline procurement, project management, and sustainment processes, improving the overall efficiency of Australia’s defence operations.
Experts in defence procurement have welcomed the initiative, noting that such reforms are critical to ensuring timely delivery of complex military programs, from naval shipbuilding to guided weapons systems. The new agency is designed to reduce bureaucracy, centralize oversight, and provide clearer lines of accountability for the government and defence stakeholders.
This major overhaul reflects the federal government’s commitment to modernizing defence administration, strengthening Australia’s operational readiness, and ensuring that taxpayer funds are spent efficiently on national security.
