Canberra has committed 1.2 billion Australian dollars ($855 million) to modernize the Australian Defence Forces’ land vehicle capabilities. The funding includes a 750 million Australian dollar ($538 million) contract with Thales for 268 additional Bushmaster Protected Mobility Vehicles.
The remaining 450 million Australian dollars ($323 million) will be used to upgrade existing Hawkei PMVs built by Thales Australia, as well as medium and heavy logistics trucks supplied by Rheinmetall.
Production of the new Bushmasters will take place at Bendigo in Victoria, where over 1,300 vehicles have already been produced, while Hawkei modernization work will be conducted in Brisbane. Deliveries are expected to begin in 2027, with upgraded capabilities including improved survivability, mobility, and integration of advanced weapon systems, sensors, and digital technologies.
The procurement also serves to replenish the ADF’s fleet following the transfer of more than 100 Bushmaster vehicles to Ukraine and additional exports to the Netherlands.
In parallel, Australia is scaling up its broader defense strategy. The government recently announced plans to raise defense spending to 3% of GDP by 2033. Key initiatives include the AUKUS program for nuclear-powered submarines in collaboration with the US and UK, as well as investments of up to 15 billion Australian dollars in autonomous defense systems. Canberra is also strengthening strategic partnerships with regional allies such as Japan and Indonesia.
