Defence industry added $8.9 billion to Australia’s economy

Australia’s defence industry contributed almost $9 billion to the economy in 2020-21, according to the first official estimates released by the Australian Bureau of Statistics.

The Australian Defence Industry Account measures the portion of the economy that directly supplies good and services to the Department of Defence. These statistics provide a reliable baseline to help government target policies relating the Australian defence industry.

Luisa Ryan, Director of Environment and Satellite Accounts, said “The Australian defence industry contribution to the economy grew 5.7 per cent from the previous year”.

Purchases from the Professional, Scientific, and Technical Services industry contributed 41.4 per cent, or $3.7 billion, of the total defence industry contribution.

“Spending in the defence industry is often closely linked to manufacturing projects. While manufacturing captures the actual production, Professional, Scientific, and Technical Services includes the engineering, computer system design and technical expertise that goes into the planning and delivery of these projects,” Ms Ryan said.

NSW contributed 30 per cent, or $2.7 billion, from Defence expenditure – the largest contribution of any Australian state or territory. 

A second release will be published on 16 December 2022. This release will include a longer time series, additional classification breakdowns, and estimates of employment associated with Defence expenditure.