It contains a $1.6 billion commitment to investment in innovation and industry skills, and to new private sector involvement in directing that investment.

"These investments in Australian industry and technologies will generate benefits beyond the Australian defence industrial base which flow into the rest of the economy, delivering jobs and encouraging innovation for regional businesses and communities across Australia," Prime Minister Malcolm Turnbull and Defence Minister Marise Payne said in a statement.

'We need to be prepared'

There is also to a huge upgrading of military bases across Australia – from Sydney's Garden Island to Exmouth - to support new vessels and hardware.

There will be significant new spend on enhanced intelligence, surveillance and reconnaissance, space, electronic warfare and cyber capabilities which will see a rebalancing of the intelligence community after a period in which heavy investments have been made in ASIO and terror-related intelligence.

Australia Financial Review Interactive Interactive by Les Hewitt DATA JOURNALIST: EDMUND TADROS Modernising Defence information management, operational communications, and command and control systems A continuous naval shipbuilding program starting with nine frigates and 12 offshore patrol vessels The Permanent ADF workforce will grow to around 62,400 over the next decade, a return to its largest size since 1993 The government will also spend $1.6b over ten years on defence innovation, including: A Centre for Defence Industry Capability, funded at $230 million over ten years, to connect defence with industry A new virtual Defence Innovation Hub, with funding of $640 million over ten years to help deliver new technology to defence Buying 12 new “regionally superior” submarines Defence will invest $730 million over ten years to develop “the next generation of game-changing capabilities” in collaboration with academia, publicly funded research agencies, industry and international counterparts Enhancing intelligence, surveillance and reconnaissance, space, electronic warfare and cyber capabilities Implementing advanced training and modernising equipment, health care and logistics systems for Defence Upgrading defence infrastructure across Australia at key bases, training and testing ranges, and fuel and explosive ordnance facilities The government will spend an extra $29.9b over ten years on:

A rebalancing of public service defence staff will see numbers fall from 22,300 in 2012 to 18,200 but 1200 new positions created in defence intelligence.

While the White Paper does not contain the confrontational language that upset China in the 2009 White Paper, the document leaves no doubt about the disruption to the region that the growing world power poses.


There are countless references to Australia's security and prosperity relying "on a stable, rules-based global order which supports the peaceful resolution of disputes, facilitates free and open trade and enables unfettered access to the global commons to support economic development".

Launching the paper to a defence audience at the Australian Defence Force Academy in Canberra, Mr Turnbull noted that China has grown to be world's second largest economy in the space of just 40 years but that this tremendous growth affects long standing strategic balances

While the White Paper does not contain the confrontational language that upset China in the 2009 White Paper, the document leaves no doubt about the disruption to the region that the growing world power poses. Alex Ellinghausen

Half the world's submarines and advanced combat aircraft will be operating in the region in coming decades and this complicated Australia's strategic planning, he said

"We would be concerned if that growth were to lead to instability and threaten Australian interests", he said

"In the period to 2035, Australia will have greater opportunities for prosperity and development but it will also face greater uncertainty. We need to be prepared," he said.

'Active' regional presence

The White Paper gives a heavy emphasis to maritime activities at the centre of a "more active defence presence" in the region, including an amphibious presence for the army.


Australia's significant contribution to operations in the Middle East and Afghanistan received relatively little attention in the renewed focus on the region, and are grouped under the heading of terrorism, which is the third of six strategic priorities in the White Paper.

The alliance with the United States is still given a high priority and while there is considerable discussion about cooperative defence arrangements, and a "more active international role" individual partnerships – notably that with Japan – get only a small amount of detailed mention.

The White paper forecasts an increase in the permanent ADF workforce to 62,4000 over a decade to bring it to its largest level since 1993 and restructuring to allow an easier movement between permanent and reserve forces.

A new Centre for Defence Industry Capability – co-chaired by a private sector businessmen will receive $230 million in funding across the decade to "connect Defence needs with the innovation and expertise of Australian defence industry as well as help grow a competitive, sustainable Australian defence industry base".

Part of the purpose of the centre will be to support small to medium enterprises.

A new virtual Defence Innovation Hub will have funding of $640 million over the decade, replacing existing separate programs to help deliver a capability edge, working with CSIRO academia and industry partners to accelerate technology transfer into defence.

In addition, there will be a $730 million investment to "develop next generation game-change capabilities".