The Australian government has announced that it will significantly increase defence spending by $5 billion over the next decade to develop drone and counter-drone systems, in response to the changing nature of modern warfare.
Defence Minister Richard Marles said the importance of drone technology has risen rapidly over the past two years, particularly in the conflicts in Ukraine and those involving Iran. He noted that low-cost, large-scale drones are capable of continuously depleting high-value military assets, creating a clear form of “asymmetric advantage.”
Of the new funding, at least A$2.2 billion will be allocated to the development of smaller, low-cost drone systems, while substantial investment will also go into larger autonomous platforms, including advanced systems such as “Ghost Bat” and “Ghost Shark.” The government will also strengthen counter-drone capabilities to address the challenges posed by inexpensive drones against traditional air defence systems.
In terms of domestic industry, the government emphasised the development of locally produced drone technology. The “Ghost Bat,” developed by Boeing Australia, is designed to operate alongside F-35 fighter jets and has already successfully completed live-fire testing. The system has also attracted interest from Germany for potential procurement.
Commentary:
The wars in Ukraine and conflicts in the Middle East have clearly shown that drones are no longer merely supporting tools on the battlefield. Instead, low-cost drones can use numerical superiority to exhaust expensive interception systems. From a strategic perspective, Australia’s move is therefore not only a military upgrade, but also a forward-looking preparation for future warfare.
Moreover, strengthening domestic development also reduces reliance on foreign defence supply chains. This strategy not only enhances overall defence capability, but also supports the growth of the local defence industry, creates jobs, and further strengthens Australia’s competitiveness in the global defence technology sector.