2016 DEFENCE WHITE PAPER

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112 CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE the period to 2035. Defence will better harness Australian expertise by working with Australian defence industry and academic partners to provide the ADF with the best technological edge when it needs it to meet the range of new and evolving threats and challenges. 4.111 The Government’s new approach to Defence innovation is focused on promoting the strong partnerships and collaboration necessary to maximise the benefit for Australia’s capability. The Defence Science and Technology Group will expand its collaboration with partners here and overseas for this purpose. SECTION TWO CAPABILITY 4.112 A new virtual Defence Innovation Hub, with funding of around $640 million across the decade to 2025–26, will replace existing separate programs to help deliver a capability edge to Defence through innovative technologies. The Hub will enhance the ability of Defence, the Commonwealth Scientific and Industrial Research Organisation, academia and key industry partners to work collaboratively to accelerate the transfer of innovative technologies into Defence capability. The Hub will be managed by Defence to focus innovation activities on priority capability development requirements, some of which require high levels of security classification. 4.113 In addition to the priority capability development focus of the virtual Defence Innovation Hub, Defence will invest $730 million over the decade to 2025–26 to better position Defence to respond to strategic challenges and develop the next generation of game-changing capabilities. The Defence Science and Technology Group will lead this research in collaboration with academia, publicly funded research agencies, Australian defence industry – especially small to medium enterprises – and its international counterparts. Should this research lead to the potential for promising new capabilities, the relevant project will be transferred to the Defence Innovation Hub.
Industry, innovation, research and development 113 Shipbuilding 4.114 A strong, viable, and sustainable Australian naval shipbuilding industry is a vital element of Australia’s defence capability to manage Australia’s strategic challenges to 2035. The Government is delivering a long-term plan for Australia’s naval shipbuilding industry to ensure the retention of a sovereign Australian shipbuilding industry and the jobs that go with it. 4.115 For the first time in the history of Australian naval shipbuilding, the Government has committed to a permanent naval shipbuilding industry. The Government’s strategy is centred on a long-term continuous build of surface warships in Australia, involving construction of our future frigates and offshore patrol vessels in Australia. A continuous build of our major warships and minor naval vessels will see Defence better manage the demand for naval vessels to ensure continuous construction over the long term. This will end the boom-bust cycle for shipbuilding, lower the costs of acquiring naval vessels and provide a long-term, sustainable plan for the shipbuilding industry. 4.116 The Government is bringing forward the future frigate program to replace the Anzac Class frigates. A continuous build of the Navy’s future frigates will commence in 2020. The future frigates will be built in South Australia following completion of a Competitive Evaluation Process. SECTION TWO CAPABILITY 4.117 The Government is establishing a continuous build production line for smaller navy vessels. This will commence with construction of a fleet of 12 offshore patrol vessels to replace the Armidale Class patrol boats, with construction to start in 2018 following a Competitive Evaluation Process. 4.118 This strategy will transform Australia’s naval shipbuilding industry, generate significant economic growth, sustain Australian jobs over the coming decades and assure the long-term future of this key Australian defence industry. The acceleration of the future frigate and offshore 2016 DEFENCE WHITE PAPER
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4 TABLE OF CONTENTS The United Stat
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6 TABLE OF CONTENTS The South Pacif
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10 MINISTER’S INTRODUCTION The Au
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14 EXECUTIVE SUMMARY dynamics betwe
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18 EXECUTIVE SUMMARY to address thr
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22 EXECUTIVE SUMMARY International
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24 EXECUTIVE SUMMARY The Government
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26 ' SECTION ONE Strategy CHAPTER O
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29 ``Chapter One: The Government’
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Why now? 31 strategy and budget, de
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Managing strategic risk 33 1.15 A s
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Managing strategic risk 35 role in
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39 ``Chapter Two: Strategic Outlook
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Australia’s security environment
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Regional security environments 53 L
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177 ``Chapter Eight: Funding Defenc
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The funding model 179 provided assu
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How will Defence funding be spent?
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Budgeting in Defence 183 8.18 Imple
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