Australia's massive 10-year defense budget of $764.6 billion (US$506 billion) from 2024 to 2025 includes an initial allocation for the creation of the Australian Strategic Fleet. One of the promises made by current Prime Minister Antony Albanese was to revitalize the country's commercial fleet to help meet and initiate Australia's defense needs.
The newly elected government will launch a task force in October 2022 and submit a final report in June 2023, which will discuss how to establish a strategic fleet and the important issues that may arise in the maritime industry. It provided a roadmap on how to overcome the challenges. The Maritime Strategic Fleet was born out of the Government's position that Australia needed to improve its resilience and maritime capabilities. The fleet will consist of up to 12 privately owned and commercially operated Australian-flagged manned vessels. These vessels will then be available for requisition by the government if needed.
The 2024-2025 budget will increase overall defense spending over 10 years to build what Albanians call a “more capable and self-reliant” Australia. The plan includes $11.1 billion (US$7.35 billion) over 10 years to increase the size and lethality of the surface fighter fleet and an additional $1 billion (US$660 million) for autonomous systems. It is.
“We will increase the defense budget by more than $50 billion (US$33 billion) over the next 10 years,” Matt Thistlethwaite, Assistant Secretary of Defense, emphasized. He said it would be record spending to ensure Australia's ability to protect itself.
The budget includes $21.7 million (US$14 million) over five years to support the establishment of the Strategic Fleet. It calls for an initial pilot program that will add three new merchant vessels to Australia's domestic fleet. The government plans to begin accepting applications for these vessels later this year.
The Australian Maritime Union and other groups strongly support the program, which highlights the decline in domestic shipping. According to the International Federation of Transport Workers, as of December 2022, there were only 11 Australian-flagged manned vessels over 2,000 dwt holding licenses for coastal trade. They compare this to more than 2,300 voyages operated by 504 foreign-flagged vessels in Australia in 2021.
The ITF issued a statement welcoming the government's funding for commercial shipping.
“In many countries, domestically owned and operated fleets can supplement supply chain capabilities and transport cargo via flagged vessels. This strategic capability allows the industry to utilize ships to They can transport cargo further inland to smaller ports, or complement the ability to transport goods inland by rail or road to reach their final destination,” said ITF Director General Stephen Cotton. .
The coronavirus pandemic has highlighted what the Australian government calls its own vulnerabilities and supply chain challenges. The ITF says shipping is critical to Australia's social and economic well-being, highlighting that 99% of goods traded in Australia are moved by maritime transport, by volume and around 79% by value. ing.
