The Australian Government has announced a A$2.4bn ($1.7bn) investment aimed at modernising the country’s air and missile defence systems.

Funding will be provided over six years as part of Australian Department of Defence’s ongoing strategic partnership with Lockheed Martin Australia.

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This allocation will phase out current air surveillance and aircraft control systems, introducing modernised functions and supporting the coordination of Defence operations both domestically and overseas.

In addition, the capability will link both existing and future Defence platforms, such as the Medium-Range Ground-Based Air Defence (MRGBAD) system, Hobart-class destroyers, and F-35A Lightning II aircraft.

According to the government, these upgrades will improve the Australian Defence Force’s (ADF) ability to operate as an “integrated force” and to detect, track, and respond to increasingly complex air and missile threats.

This funding is part of the second tranche of the AIR 6500 project, which will equip the ADF with a Joint Air Battle Management System.

The investment is expected to create over 360 skilled positions in the Hunter Region and South Australia, while also supporting the Australian defence industry.

Australia Defence Industry Minister Pat Conroy said: “Today’s announcement is seeing the Albanese Government once again supporting well-paid, secure Australian jobs and backing Australian Defence industry. 

“Through AIR 6500, we are delivering a world-class command and control capability while strengthening Australia’s sovereign industrial base, growing a highly skilled workforce and retaining critical integrated air and missile defence expertise in Australia.”

In a separate development, the Australian Army’s National Advanced Surface to Air Missile System (NASAMS) has achieved the final operational capability (FOC).

Defence confirmed that NASAMS is now fully operational and ready to employ across the ADF.

The system forms the inner layer of Australia’s ground-based air defence, protecting personnel and critical infrastructure against a range of aerial threats including aircraft, helicopters, drones, and cruise missiles.

The FOC follows a phased rollout that included live-fire tests and operational training carried out by the 16 Regiment, Royal Australian Artillery, based in Adelaide.

According to Defence, the completed deployment of NASAMS marks a significant increase in the nation’s ability to counter airborne threats as part of an integrated, multi-domain approach.

“The achievement of Final Operational Capability delivers a world-leading capability for Defence and provides a major boost to Australia’s integrated air and missile defence,” Conroy added.