The wars in the Middle East and Ukraine have spurred a rethink in how Australia should spend its military budget, with the Albanese government set to announce billions in new and re-prioritised funding for uncrewed and autonomous systems, including drones.
Deputy Prime Minister and Defence Minister Richard Marles will this week launch the 2026 National Defence Strategy and Integrated Investment Program.
They will earmark up to $15bn for air, sea and land systems, such as the Australian-designed and built Ghost Shark stealth submarine and Ghost Bat stealth fighter.
Both are uncrewed and considered world-leading in their use of artificial intelligence, piquing interest from foreign militaries looking to buy.
“Over the past two years, conflicts overseas have shown just how important drones and uncrewed systems are for our Defence Force,” Mr Marles said in a statement.
“The war in Ukraine and conflicts in the Middle East underscore the rapid advancements in these technologies, and the ability for these systems to generate significant asymmetric advantage against larger, more expensive platforms.”
Air systems will get the bulk of the new funding at $8.1bn, while maritime systems will get $4.5bn.
Another $2.4bn will go toward developing land systems.
“Expanding our fleet of autonomous and uncrewed systems across all domains will not only help the (Australian Defence Force) keep our nation safe, but will boost Australia’s sovereign defence industry – supporting local jobs and harnessing Australian innovation,” he said.
“Australia is at the forefront of technologies like Ghost Bat and Ghost Shark which are being designed and manufactured right here in Australia, by Australian workers for the ADF.
“Sovereign uncrewed capabilities will also help protect the ADF and critical infrastructure – one of the key capability effects outlined in the National Defence Strategy.”

