The federal government has committed $3.4 billion over the next decade to an Advanced Strategic Capabilities Accelerator (ASCA) to develop advanced military technologies.

The proposal is part of the Defense Strategic Review released last week, which recommends spending $19 billion over the next four years to support more effective innovation support, faster acquisition and better defense-industry ties, and raises current planned spending on defense innovation by $557.5 million.

The program will be a rapid response unit to changing technical capabilities and requirements. The accelerator will focus on solving the most relevant technical issues and a more flexible approach to procurement, supporting local businesses. It comes just weeks after Adelaide satellite startup Fleet Space revealed it had been awarded a $6.4 million defense contract.

Defense Secretary and Deputy Prime Minister Richard Marles said the Defense Strategic Review describes how Australia should invest in the transition to new and innovative technologies for its defense capability.

“This is exactly what the Advanced Strategic Capabilities Accelerator will deliver,” he said.

“Central to this will be our ongoing work to operationalize pillar two of the AUKUS agreement, which aims to develop and provide capabilities such as submarine warfare and hypersonics for Australia, the United Kingdom and the United States.”

Marles wants ASCA to be up and running by July 1, allowing an additional 18 months to develop, test and refine the business model. It replaces the Defense Innovation Hub and Next Generation Technologies Fund, which the Defense Strategic Review determined were no longer fit for purpose in a rapidly changing strategic environment.

Defense Minister Pat Conroyn said the government will support innovation in partnership with Australian industry and research organizations to tackle global problems.

“The Advanced Strategic Capabilities Accelerator will be at the forefront of flexibly delivering capability solutions to the Australian Defense Force,” he said.

“Innovation must translate into acquisition, and the Defense Accelerator will address the very real and urgent need to turn emerging technologies into breakthrough capabilities. Linking technological development to rapid acquisition will also create many more jobs in the Australian defense industry.”

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