Forging Resilience: Strengthening Australia’s Defence from the Inside Out

The regional security landscape is undergoing tectonic shifts. The spectre of great power competition looms large. The Ukraine conflict has shown how modern warfare can unfold rapidly across physical, cyber and cognitive domains. For Australia, our involvement in regional security should align with evolving political landscapes. The message is clear: strategic ambiguity is no longer a buffer. It is a daily reality.

The United Services Institute, ACT, in partnership with DEWC Services, Elysium EPL and NCS Australia, hosted the second in a series of thought leadership roundtables with senior Defence and industry executives earlier this year. Held under Chatham House Rule at Duntroon House in Canberra for a salon-style discussion on how Australia can build a more resilient and self-reliant defence capability. Participants recognised the speed of change and the risk of Australia falling behind without immediate structural and cultural reform across the defence enterprise.

With a shared understanding that we are no longer operating in a peacetime strategic setting, the discussion turned to two key questions. Where does the balance lie between active defence and alliance-based deterrence? How can Australia pursue greater self-reliance while continuing to anchor its strategy in enduring partnerships?

Rethinking Strategic Dependence: Self-Reliance Without Isolation

One of the core themes discussed was Australia’s enduring dependence on strategic alliances, particularly with the United States. No one questioned the importance of these relationships, especially the benefits of interoperability and intelligence access. However, there was a clear sense that Australia needs to take greater responsibility for its own defence capability.

Strategic autonomy does not mean isolation. It means identifying areas where we must be able to act independently such as sovereign manufacturing, platform sustainment and critical supply chains while continuing to leverage the scale and reach of key allies. Australia cannot afford to remain geopolitically isolated despite being an island nation.

The Ukraine conflict offered a stark reminder of the volatility of modern warfare and the importance of preparedness. It exposed how quickly high-end conflict can deplete munitions, disrupt logistics and overwhelm static defence models. For Australia, it is a warning: we cannot afford to wait for a crisis to begin. We need to be honest in our mobilisation planning. We must stop assuming away the hard problems, and most importantly, we need to be having the tough conversations with the Australian public, the infrastructure sector, and industry now.

From Transactional to Trusted: Rewiring the Defence-Industry Relationship

Industry leaders at the roundtable were blunt. Despite multiple reviews and restructure, the relationship between Defence and industry is still largely transactional, shaped by bureaucratic gatekeeping processes, opaque priorities and lengthy procurement cycles that thwart innovation and agility, and largely disadvantages sovereign companies

Take the security accreditation requirements like DISP certification for example which remain too complex for small-to-medium enterprises (SMEs), limiting their ability to contribute. These SMEs often bring niche expertise and disruptive thinking but are often locked out or bogged down with excessive regulation delaying capability acquisition.

To move forward, Defence must pursue genuine partnership with industry. In doing so, it must accept that this will mean a degree of risk. But let's remember; the US didn't achieve its World War II shipbuilding triumph by playing it safe, and the Kaiser shipyards couldn't have produced the Liberty ships needed for war without a genuine commitment to a strategic partnership. This legacy shows that a degree of risk is necessary for genuine capability. So, what does this partnership look like today? It requires clear communication of strategic priorities and earlier industry engagement in capability design. It also means creating mechanisms like Defence-industry task forces, co-designed projects, and shared workforce initiatives that enable deeper integration.

Ultimately, Defence should focus on outlining the desired effects it needs to achieve and then empower industry to identify the optimal technology and capabilities to get there. This acknowledges that industry experts are now the key drivers of innovation and should be treated as strategic collaborators rather than simply as vendors.

Rebuilding the Workforce: From Shortages to Shared Solutions

It is no secret that both Defence and industry continue to face challenges in attracting and retaining the talent they need heightened by the fact that they compete for the same talent pool. While skills shortage is well documented, the roundtable participants highlighted the deeper structural and cultural issues that underpin this challenge. Change fatigue, inconsistent funding cycles and shifting strategic priorities have created uncertainty and resistance within the workforce.

A recurring theme of the evening was the need to view the Defence workforce as a shared national capability rather than a series of disconnected sectors. Initiatives such as cross-sector secondments, shared training programs and targeted skills development were proposed to address capability gaps.

Generational change is also reshaping workforce expectations. Younger recruits are increasingly looking for purpose, autonomy and flexibility in their careers. Meeting this shift will require more than marketing, it demands genuine cultural change across Defence and industry alike.

Accelerating Procurement: The Case for a Two-Tier System

Australia's defence procurement system is dangerously slow, mired in risk-aversion and red tape. This inertia isn't just inefficient; it's a national security risk. It delays the delivery of critical military capabilities, ensuring that by the time we acquire new technology, it's often already outdated. We must stop buying for the past and start investing in the future.

The solution isn't less oversight, but a smarter, modernised approach: a two-tier procurement system. The first tier would handle large, complex programmes that require extensive review, such as a new fleet of warships or aircraft. The second tier, however, would be a parallel, fast-track process for rapidly evolving technologies like software, drones, and commercial off-the-shelf solutions. This would allow Defence to acquire and test emerging capabilities quickly, iterate in real-time, and stay ahead of the curve.

Without this urgent reform, Australia will continue to invest in systems that are obsolete before they are even operational. The future of our security depends on our ability to move at the speed of technology.

Risk and Innovation: Leaning Forward, Not Holding Back

To avoid organisational stagnation and maintain a forward-leaning defence posture, a fundamental shift in mindset is required. This necessitates a greater appetite for risk and a willingness to decentralise decision-making. Defence must foster a culture where leaders at all levels are empowered to act with the imagination and agility needed to address the tempo and complexity of the contemporary strategic environment.

Central to this transformation is a deeper, more integrated partnership with industry. Industry should be involved in strategic planning and wargaming from the outset, where its insights into feasibility, production, and innovation can help shape and define future capabilities. Defence must aggressively incorporate industry innovation into its core strategy.

A two-tiered investment approach is also crucial. While continuing to invest in long-term enablers such as research, deterrence, supply chains, and workforce development Defence must also accelerate the scaling of technologies like AI, cyber, and autonomous systems. This dual focus ensures both immediate advantage and long-term security.

Ultimately, this new approach requires a commitment to pre-emptive mobilisation of people, policies, and plans rather than waiting for a crisis to react. By leading from the front, Defence can establish a position of strength and strategic advantage.

Bridging the Public Trust Gap: A Whole-of-Nation Imperative

A forward-leaning defence strategy is fundamentally dependent on public support, yet a significant gap in understanding persists. Despite growing strategic risks, only a minority of Australians support increased defence spending. The public discourse is dominated by cost-of-living concerns, which often pushes national security to the periphery. This complacency is a serious threat, as it can lead to underinvestment, reduced preparedness, and a weakened ability to respond to emerging crises. Over time, this erodes the very stability that safeguards our nation and way of life.

Defence and industry must urgently address this challenge by reframing the conversation. Instead of merely discussing spending, we must communicate the broader value of defence investment. This means highlighting its direct contributions to economic growth, technological innovation, and national resilience. Public education, clearer media engagement, and greater transparency are essential to building the long-term trust and support needed for a modern defence force.

Resilience is a Whole-of-Nation Task

The roundtable discussions highlighted a critical truth: national resilience is not a responsibility that Defence can bear alone. True, functional, and adaptive resilience emerges only when all sectors: government, academia, industry, and the broader public are connected, transparent, and aligned toward a shared strategic purpose. This is not about diluting responsibility; it’s about recognising that our national security is an ecosystem. Each part must be actively engaged and working together to build a robust and responsive system.

Conclusion: The Time for Bold Reform is Now

The insights from the Duntroon House roundtable cannot remain simply a talking point; they must drive real, measurable policy change within both Defence and industry. Australia's security cannot be built on outdated systems, siloed expertise, or incremental change. The global environment is shifting too fast to allow for anything less than bold action. What is needed now is not just more funding or rhetoric, but transformative leadership that is prepared to take calculated risks, forge genuine partnerships, and ensure our capabilities reach those who need them, when they need them.

So perhaps a fundamental question for Australia’s leaders across the Defence and industry sector: in a world of profound geopolitical change, if you find yourself upholding the status quo in both action and thought, you must ask a difficult question: are you part of the solution, or are you part of the problem? The clock is ticking, and the window for this essential reform is now.