The federal government has announced a sweeping reform involving the closure of three Department of Defence agencies and the creation of a new entity to replace them.

This afternoon, Deputy Prime Minister and Defence Minister Richard Marles revealed that the Capability Acquisition and Sustainment Group, the Guided Weapons and Explosive Ordnance Enterprise, and the Naval Shipbuilding and Sustainment Group will be consolidated into the newly established Defence Delivery Agency.

“The formation of the Defence Delivery Agency aims to maximize the value of our defence expenditures,” Marles explained, highlighting the strategic intent behind the move.

“By concentrating on delivery, the agency will streamline processes and enhance efficiency,” he added.

“This approach ensures that any issues within specific programs or projects are identified early, allowing for timely and budget-conscious solutions,” Marles stated, emphasizing the importance of proactive government advisement.

No jobs will be cut as a result of the overhaul, which will be a two-stage process; the three mothballed agencies will be merged into the Defence Delivery Agency on July 1, 2026, which will, in turn, be spun off into the independent, autonomous Defence Delivery Agency a year later.