Australian Defence Industry Account
The Australian Defence Industry Account (ADIA) is a satellite account that measures the direct economic contribution of the defence industry to the Australian economy.
Australian defence industry
The Australian defence industry represents the production of goods and services invoiced to the Department of Defence. For example, if a vehicle manufacturer supplies vehicles both to Defence and broader economy, only the activity associated with the vehicles supplied to Defence is captured.
Only the direct defence industry contributions are included. For an activity to be included as part of the defence industry, there must be a direct relationship between the Department of Defence and the supplier of the good or service.
The account presents estimates of Gross Value Added (GVA) of the Australian defence industry to the Australian economy disaggregated by state and industry division. For more information on the methods used to derive GVA please see the methodology.
Gross Value Added (GVA)
GVA represents the additional economic value added through the creation of a product or provision of a service. It removes the costs of intermediate inputs used to create the product or service from the amount received by the seller. It is the standard indicator to assess the contribution of an industry or sub-sector to the broader economy.
Total defence industry Gross Value Added
Defence industry GVA records the value added to the economy as a result of Defence expenditure. An increase in Defence expenditure in 2020-21 led to an increase in defence industry GVA:
- Total defence industry GVA in 2019-20 was $8,399m
- Total defence industry GVA in 2020-21 increased by 5.7% to $8,877m
When compared to the national GVA, the defence industry's contribution to total GVA was:
- 0.45% in 2019-20
- 0.46% in 2020-21
Note: This contribution does not reflect the total contribution of the Defence portfolio to the Australian economy. It only captures the GVA generated as a result of the invoiced expenditure made by the Department of Defence.