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National Defence Strategy, Integrated Investment Program have potential to breathe new life into Australia's space industry

Stephen Kuper

The Australian government’s long-awaited 2026 National Defence Strategy and Integrated Investment Program have provided a breath of fresh air for Australia’s struggling space sector, with between $9–12 billion set to be invested over the next decade.

Australia’s space warfighting capabilities have emerged as clear winners in the latest defence investment cycle, with Canberra committing between $9 billion and $12 billion over the coming decade to strengthen resilient space domain awareness, geospatial intelligence and other space control-focused warfare systems.

The scale of the investment reflects a rapidly shifting global strategic environment, shaped by the lessons of the war in Ukraine and ongoing conflicts across the Middle East, where non-traditional and asymmetric capabilities have proven decisive in contesting technologically superior adversaries and levelling the battlefield.

Defence planners have increasingly recognised that future conflicts, particularly across the vast Indo-Pacific, will hinge not just on traditional platforms but on the ability to assure communications, deny adversary networks and maintain persistent situational awareness across all domains, including space. As a result, Australia is prioritising sovereign and resilient capabilities that can operate in contested, degraded and denied environments.

 
 

A central pillar of this effort is a $9 billion to $12 billion commitment to significantly expand Australia’s space capability. This includes a renewed focus on resilient satellite communications following the cancellation and subsequent “rescoping” of the JP 9102 program. Rather than pursuing a traditional, monolithic satellite system, Defence is now moving towards a more flexible and survivable “multi-orbit” architecture.

This approach is designed to integrate low, medium and geostationary orbit systems, providing redundancy and making the network far more resistant to disruption, interference or attack.

Importantly, this shift aligns with broader developments in Australia’s defence posture, which increasingly emphasises self-reliance, operational sovereignty and the ability to project and sustain force across northern approaches and into the wider Indo-Pacific.

A resilient, Australian-controlled satellite communications network is seen as essential to enabling joint and integrated operations across the Australian Defence Force, particularly as reliance on space-enabled systems continues to grow.

The investment is also expected to provide a significant boost to Australia’s domestic space industry, with local firms and research institutions positioned to play a greater role in satellite design, manufacturing, ground systems and data exploitation. This aligns with the government’s broader push to build a sovereign industrial base capable of supporting high-end defence requirements while also fostering innovation and export opportunities.

Beyond communications, the government is also stepping up its commitment to space domain awareness, recognising the increasing congestion and contestation of the space environment. In partnership with the United States and the United Kingdom, Australia is progressing the Deep Space Advanced Radar Capability, a next-generation system designed to provide persistent global tracking, detection and identification of satellites and other space-based objects.

This capability will significantly enhance the ability of Australia and its allies to monitor activities in orbit, attribute hostile actions and protect critical space infrastructure. It represents a major step forward in ensuring freedom of action in space, which is increasingly recognised as a contested warfighting domain in its own right.

Complementing these efforts is the planned delivery of an advanced geospatial intelligence satellite capability, which will provide high-resolution imaging and data to support both military operations and broader national security requirements. Together, these initiatives signal a decisive shift in Australia’s defence strategy, one that places space and cyber capabilities at the centre of future warfighting and national resilience.

This investment has flow-on effects for Australia’s civil space industry and its role supporting and participating in the human exploration of space, with the Deputy Prime Minister and Defence Minister, Richard Marles throwing his support behind Australia’s Katherine Bennell-Pegg, adding: “Katherine Bennell‑Pegg is an incredible Australian, and she is a fantastic choice as Australian of the Year. And as a self‑confessed space nerd, I couldn’t be more excited about her being the Australian of the Year and what the future might hold for her.”

“I have long said I think our country needs to change its cultural relationship to science. We need to celebrate science and scientific achievement in a much bigger way,” Minister Marles said, speaking at a National Press Club address about the public campaign to send Bennell-Pegg on a space mission.

Hinting at the impact this Defence-driven investment would have on Australia’s broader space economy, Minister Marles said: “What I know, from the point of view of the future of our nation, is that one of the real microeconomic reforms we need to pursue is making our economy more complex. And we won’t do that without infusing it with science and technology.

“That requires a much greater emphasis on science and a change in our cultural relationship to science. Which is why I am so excited that Katherine has been made the Australian of the Year this year. Her holding that position is really an opportunity to celebrate big science and to get our kids excited, so that we do start walking down a very different path when it comes to infusing science and technology within our nation and our economy.”

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