## Government to scrap multiple defence agencies to fight massive blowouts
The Albanese government is preparing a sweeping restructure of the Defence Department in a move aimed at curbing major cost overruns and project delays. The overhaul will consolidate several existing defence agencies into a single, more unified structure, with the goal of improving accountability, coordination, and spending discipline.
### Core Policy Shift
According to senior officials, the reform will merge or replace a range of separate procurement and capability offices that have operated with overlapping responsibilities. This rationalization seeks to eliminate duplicated roles and streamline project management processes that have contributed to billions in overruns across key defence programs.
### Motivation and Background
The changes follow extensive internal reviews highlighting inefficiencies across arms procurement, logistics, and infrastructure projects. Defence analysts have warned for years that fragmented departmental structures made oversight difficult and encouraged cost growth. Prime Minister Anthony Albanese and Defence Minister Richard Marles are expected to present the reforms as a step toward restoring fiscal responsibility and operational effectiveness within Australia’s defence apparatus.
### Implementation Plans
Revised management models will place greater emphasis on unified project delivery and stronger ties between the Defence Department, Treasury, and the Auditor‑General’s Office. Sources close to the process suggested that hundreds of positions might be reassigned, though the government intends to achieve most of the restructuring through administrative changes rather than sweeping layoffs.
### Public and Expert Reaction
Experts in defence governance have cautiously welcomed the overhaul, noting that centralization could address accountability gaps but warning that success will depend on leadership stability and cultural change within the department. Critics caution that structural reform alone cannot resolve the chronic underestimation of project costs and timelines that have plagued the portfolio.
> “Consolidation is a step in the right direction, but fixing systemic issues in procurement demands more than new charts — it needs sustained oversight and political courage,” one defence industry consultant said.
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**Author summary:** The Albanese government will reorganize the Defence Department by merging multiple agencies to control overspending, improve accountability, and enhance project delivery efficiency.
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The Sydney Morning Herald — 2025-11-30