Australian Defence Industry Account, experimental estimates

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Estimates of the defence industry's direct contribution to the Australian economy

Reference period

2021-22 financial year

Released

16/12/2022

View all releases

Key statistics

In 2021-22:

Gross value added (GVA) from Defence expenditure contributed $10.6b to the Australian economy, up 20.3% from the previous year
Defence industry GVA contributed 0.49% to total economy GVA
An estimated 61,600 employed persons were associated with Defence expenditure, a growth of 17.1% from the previous year

Broad overview

Australian Defence Industry Account

The Australian Defence Industry Account (ADIA) is a satellite account that measures the direct economic contribution and direct employment headcount 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 the broader economy, only the activity associated with the vehicles supplied to Defence is captured.

Only the direct defence industry contributions and employment 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.

Total defence industry GVA

Gross Value Added (GVA)

GVA represents the additional economy value added through the creation of a product or the 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.

Gross value added (GVA) from Defence expenditure contributed $10.6b to the Australian economy in 2021-22. This was an increase of 20.3% from the previous year. In comparison, the total economy (original, current price data) grew by 11.0%.

Over the period 2016-17 to 2021-22, the defence industry’s contribution to the Australian economy grew from $6.3b to $10.6b, an increase of 67.8%. Over the same period, total economy GVA grew by 31.7%.

Defence expenditure contributed 0.49% of the total economy’s GVA in 2021-22.

Defence industry GVA at basic prices
	Defence industry gross value added at basic prices ($m)
2016-17	6,326
2017-18	7,176
2018-19	7,501
2019-20	8,367
2020-21	8,824
2021-22	10,615

Defence industry GVA at basic prices

["","Defence industry gross value added at basic prices ($m)"]

[["2016-17","2017-18","2018-19","2019-20","2020-21","2021-22"],[[6326],[7176],[7501],[8367],[8824],[10615]]]

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Defence industry share of total economy GVA at basic prices
	Defence industry share of gross value added (b) (%)	Total economy gross value added (a) ($m)
2016-17	0.39	1,638,916
2017-18	0.42	1,718,328
2018-19	0.41	1,820,299
2019-20	0.45	1,855,642
2020-21	0.45	1,944,802
2021-22	0.49	2,158,422

Defence industry share of total economy GVA at basic prices

["","Defence industry share of gross value added (b) (%)","Total economy gross value added (a) ($m)"]

[["2016-17","2017-18","2018-19","2019-20","2020-21","2021-22"],[[0.39000000000000001],[0.41999999999999998],[0.40999999999999998],[0.45000000000000001],[0.45000000000000001],[0.48999999999999999]],[[1638916],[1718328],[1820299],[1855642],[1944802],[2158422]]]

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(a) Source: Australian System of National Accounts, 2021-22.

(b) This contribution does not reflect the total contribution of the Defence portfolio to the Australian economy. It only captures the GVA generated by the invoiced expenditure made by the Department of Defence within the scope of the Australian economy.

Industry overview

In 2021-22, the three largest industry contributors to defence industry GVA were:

Professional, scientific and technical services with 43.1% of GVA
Manufacturing with 16.7% of GVA
Construction with 15.4% of GVA

Combined, the top three industries consistently contribute approximately 75% of the total defence industry GVA.

Spending in the defence industry is often linked to construction and 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.

Defence industry GVA at basic prices by ANZSIC division
	2016-17 ($m)	2017-18 ($m)	2018-19 ($m)	2019-20 ($m)	2020-21 ($m)	2021-22 ($m)
Agriculture, forestry and fishing	3	1	0	0	0	1
Mining	n.p.	0	0	0	0	0
Manufacturing	1,367	1,585	1,523	1,617	1,636	1,777
Electricity, gas, water and waste services	80	95	112	120	107	113
Construction	1,055	1,185	1,131	1,281	1,325	1,631
Wholesale trade*	n.p.	n.p.	n.p.	n.p.	n.p.	n.p.
Retail trade	3	2	4	4	4	3
Accommodation and food services*	n.p.	n.p.	n.p.	n.p.	n.p.	n.p.
Transport, postal and warehousing	291	372	383	364	361	467
Information media and telecommunications	134	162	157	219	179	264
Financial and insurance services	21	22	18	19	19	35
Rental, hiring and real estate services	17	58	74	84	81	122
Professional, scientific and technical services	2,365	2,638	2,957	3,454	3,646	4,571
Administrative and support services	140	157	157	176	200	248
Public administration and safety	120	127	141	147	193	177
Education and training	127	136	150	173	184	222
Health care and social assistance*	n.p.	n.p.	n.p.	n.p.	n.p.	n.p.
Arts and recreation services	2	2	1	1	1	1
Other services	23	23	23	26	32	25

Defence industry GVA at basic prices by ANZSIC division

["","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22"]

[["Agriculture, forestry and fishing","Mining","Manufacturing","Electricity, gas, water and waste services","Construction","Wholesale trade*","Retail trade","Accommodation and food services*","Transport, postal and warehousing","Information media and telecommunications","Financial and insurance services","Rental, hiring and real estate services","Professional, scientific and technical services","Administrative and support services","Public administration and safety","Education and training","Health care and social assistance*","Arts and recreation services","Other services"],[[3],[null],[1367],[80],[1055],[null],[3],[null],[291],[134],[21],[17],[2365],[140],[120],[127],[null],[2],[23]],[[1],[0],[1585],[95],[1185],[null],[2],[null],[372],[162],[22],[58],[2638],[157],[127],[136],[null],[2],[23]],[[0],[0],[1523],[112],[1131],[null],[4],[null],[383],[157],[18],[74],[2957],[157],[141],[150],[null],[1],[23]],[[0],[0],[1617],[120],[1281],[null],[4],[null],[364],[219],[19],[84],[3454],[176],[147],[173],[null],[1],[26]],[[0],[0],[1636],[107],[1325],[null],[4],[null],[361],[179],[19],[81],[3646],[200],[193],[184],[null],[1],[32]],[[1],[0],[1777],[113],[1631],[null],[3],[null],[467],[264],[35],[122],[4571],[248],[177],[222],[null],[1],[25]]]

[]

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*Note: Division F (Wholesale trade), Division H (Accommodation and food services) and Division Q (Health care and social assistance) are suppressed due to confidentiality requirements and are noted as n.p. (not publishable).

At the subdivision level the main contributors to defence industry GVA were:

Professional, scientific, and technical services (except computer system design and related services) (28.3%)
Computer system design and related services (14.7%)
Transport equipment manufacturing (12.8%)
Building construction (10.4%)

Main ANZSIC sub-division contributors to defence industry GVA
	Building construction (%)	Transport equipment manufacturing (%)	Computer system design and related services (%)	Professional, scientific and technical services (except computer system design and related services) (%)
2016-17	12.0	17.2	14.4	23.0
2017-18	11.8	17.1	13.2	23.6
2018-19	11.4	15.4	13.1	26.3
2019-20	10.6	14.5	13.9	27.4
2020-21	10.3	14.5	13.2	28.1
2021-22	10.4	12.8	14.7	28.3

Main ANZSIC sub-division contributors to defence industry GVA

["","Building construction","Transport equipment manufacturing","Computer system design and related services","Professional, scientific and technical services (except computer system design and related services)"]

[["2016-17","2017-18","2018-19","2019-20","2020-21","2021-22"],[[12],[11.800000000000001],[11.4],[10.6],[10.300000000000001],[10.4]],[[17.199999999999999],[17.100000000000001],[15.4],[14.5],[14.5],[12.800000000000001]],[[14.4],[13.199999999999999],[13.1],[13.9],[13.199999999999999],[14.699999999999999]],[[23],[23.600000000000001],[26.300000000000001],[27.399999999999999],[28.100000000000001],[28.300000000000001]]]

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State overview

In 2021-22, the three largest state contributors to defence industry GVA were:

New South Wales ($3,383m)
Victoria ($2,325m)
ACT ($1,700m)

The states with the largest defence industry GVA growth between 2020-21 and 2021-22 were:

New South Wales ($728m, + 27.4%)
Victoria ($510m, + 28.1%)
South Australia ($303m, + 25.9%)

Defence industry GVA by State / Territory
	2016-17 ($m)	2017-18 ($m)	2018-19 ($m)	2019-20 ($m)	2020-21 ($m)	2021-22 ($m)
New South Wales	2,204	2,154	2,136	2,429	2,655	3,383
Victoria	1,492	1,623	1,585	1,757	1,815	2,325
Queensland	561	781	940	1,012	1,078	1,160
South Australia	822	951	973	1,058	1,172	1,475
Western Australia	239	274	387	390	373	421
Tasmania	11	7	7	8	11	19
Northern Territory	39	29	77	80	80	133
Australian Capital Territory	958	1,356	1,397	1,633	1,641	1,700

Defence industry GVA by State / Territory

["","2016-17","2017-18","2018-19","2019-20","2020-21","2021-22"]

[["New South Wales","Victoria","Queensland","South Australia","Western Australia","Tasmania","Northern Territory","Australian Capital Territory"],[[2204],[1492],[561],[822],[239],[11],[39],[958]],[[2154],[1623],[781],[951],[274],[7],[29],[1356]],[[2136],[1585],[940],[973],[387],[7],[77],[1397]],[[2429],[1757],[1012],[1058],[390],[8],[80],[1633]],[[2655],[1815],[1078],[1172],[373],[11],[80],[1641]],[[3383],[2325],[1160],[1475],[421],[19],[133],[1700]]]

[]

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State by industry overview

In 2021-22, the Professional, scientific, and technical services industry (Div M) was the largest contributor to defence industry GVA in all states, except Western Australia, where the Manufacturing industry was the largest contributor, and the Northern Territory, where the Construction industry was the largest contributor.

Defence industry GVA by State / Territory in 2021-22 (selected industries)
	Div C - Manufacturing ($m)	Div E - Construction ($m)	Div M - Professional, scientific and technical services ($m)
New South Wales	653.4	856.9	1,245.8
Victoria	214.1	430	617.1
Queensland	246.9	117.8	560.3
South Australia	401.4	38.1	964.5
Western Australia	143.5	55.2	111.3
Tasmania*	0.2	0	n.p.
Northern Territory*	2.1	98.7	n.p.
Australian Capital Territory	115.1	34.6	1,066.5

Defence industry GVA by State / Territory in 2021-22 (selected industries)

["","Div C - Manufacturing","Div E - Construction","Div M - Professional, scientific and technical services"]

[["New South Wales","Victoria","Queensland","South Australia","Western Australia","Tasmania*","Northern Territory*","Australian Capital Territory"],[[653.39999999999998],[214.09999999999999],[246.90000000000001],[401.39999999999998],[143.5],[0.20000000000000001],[2.1000000000000001],[115.09999999999999]],[[856.89999999999998],[430],[117.8],[38.100000000000001],[55.200000000000003],[0],[98.700000000000003],[34.600000000000001]],[[1245.8],[617.10000000000002],[560.29999999999995],[964.5],[111.3],[null],[null],[1066.5]]]

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*Note: Div M (Professional, scientific and technical services) data for Tasmania and Northern Territory is suppressed due to confidentiality requirements and are noted as n.p. (not publishable).

Employment overview

Defence industry direct employment

The number of paid employees (both full and part time) working for a business is known as the "Employee Headcount". The employment headcount is implemented as the normal level headcount annualised through the year to create a representative timeseries.

The number of paid employees that are associated with the defence industry is estimated as the proportion of the employee headcount funded by direct payments from Defence.

Employment associated with Defence expenditure increased by 9,000 from 52,600 in 2020-21 to 61,600 in 2021-22. This was a 17.1% increase in employment. In comparison, total employed persons in Australia grew by 3.0%.

Defence employment contributed 0.45% of the economy’s total employment (sourced from Labour Account, Australia original annualised series) in 2021-22.

Defence industry direct employment headcount and share of total employment
	Defence industry share of total employment (%)	Defence industry direct employment headcount ('000)
2019-20	0.38	50.4
2020-21	0.4	52.6
2021-22	0.45	61.6

Defence industry direct employment headcount and share of total employment

["","Defence industry share of total employment (%)","Defence industry direct employment headcount"]

[["2019-20","2020-21","2021-22"],[[0.38],[0.40000000000000002],[0.45000000000000001]],[[50.399999999999999],[52.600000000000001],[61.600000000000001]]]

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The top employing industries in 2021-22 were:

Professional, scientific, and technical services (31.1%, or 19,100)
Construction (23.0%, or 14,100)
Manufacturing (20.3%, or 12,500)

Combined, the top three industries consistently contribute more than 70% of the total defence industry employment between 2019-20 and 2021-22.

Defence industry direct employment headcount by ANZSIC division
	2019-20 ('000)	2020-21 ('000)	2021-22 ('000)
Agriculture, forestry and fishing	0	0	0
Mining	0	0	0
Manufacturing	10.4	10.8	12.5
Electricity, gas, water and waste services	0.4	0.4	0.4
Construction	11.4	12.1	14.1
Wholesale trade*	n.p.	n.p.	n.p.
Retail trade	0	0	0
Accommodation and food services*	n.p.	n.p.	n.p.
Transport, postal and warehousing	3.3	2.3	3.5
Information media and telecommunications	0.5	0.5	0.7
Financial and insurance services	0.1	0.1	0.1
Rental, hiring and real estate services	0.5	0.5	0.7
Professional, scientific and technical services	15.4	16.2	19.1
Administrative and support services	1.7	2.1	2.4
Public administration and safety	1.3	1.7	1.5
Education and training	2.1	2.4	2.7
Health care and social assistance*	n.p.	n.p.	n.p.
Arts and recreation services	0	0	0
Other services	0.2	0.2	0.2

Defence industry direct employment headcount by ANZSIC division

["","2019-20","2020-21","2021-22"]

[["Agriculture, forestry and fishing","Mining","Manufacturing","Electricity, gas, water and waste services","Construction","Wholesale trade*","Retail trade","Accommodation and food services*","Transport, postal and warehousing","Information media and telecommunications","Financial and insurance services","Rental, hiring and real estate services","Professional, scientific and technical services","Administrative and support services","Public administration and safety","Education and training","Health care and social assistance*","Arts and recreation services","Other services"],[[0],[0],[10.4],[0.40000000000000002],[11.4],[null],[0],[null],[3.2999999999999998],[0.5],[0.10000000000000001],[0.5],[15.4],[1.7],[1.3],[2.1000000000000001],[null],[0],[0.20000000000000001]],[[0],[0],[10.800000000000001],[0.40000000000000002],[12.1],[null],[0],[null],[2.2999999999999998],[0.5],[0.10000000000000001],[0.5],[16.199999999999999],[2.1000000000000001],[1.7],[2.3999999999999999],[null],[0],[0.20000000000000001]],[[0],[0],[12.5],[0.40000000000000002],[14.1],[null],[0],[null],[3.5],[0.69999999999999996],[0.10000000000000001],[0.69999999999999996],[19.100000000000001],[2.3999999999999999],[1.5],[2.7000000000000002],[null],[0],[0.20000000000000001]]]

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The top employing states in 2021-22 were:

New South Wales (22,700, or 36.8%)
Victoria (14,000, or 22.7%)
South Australia (8,000, or 13.1%)

The largest increases in employment in 2021-22 were in:

New South Wales (up 3,000)
Victoria (up 2,800)
South Australia (up 1,400)

Defence industry direct employment headcount by State / Territory ('000)
	2019-20 ('000)	2020-21 ('000)	2021-22 ('000)
New South Wales	18	19.6	22.7
Victoria	11.5	11.2	14
Queensland	5.6	5.8	6.3
South Australia	6.1	6.6	8
Western Australia	2.1	2	2.4
Tasmania*	0.1	0.1	n.p.
Northern Territory*	0.4	0.3	n.p.
Australian Capital Territory	6.6	6.8	7.6

Defence industry direct employment headcount by State / Territory ('000)

["","2019-20","2020-21","2021-22"]

[["New South Wales","Victoria","Queensland","South Australia","Western Australia","Tasmania*","Northern Territory*","Australian Capital Territory"],[[18],[11.5],[5.5999999999999996],[6.0999999999999996],[2.1000000000000001],[0.10000000000000001],[0.40000000000000002],[6.5999999999999996]],[[19.600000000000001],[11.199999999999999],[5.7999999999999998],[6.5999999999999996],[2],[0.10000000000000001],[0.29999999999999999],[6.7999999999999998]],[[22.699999999999999],[14],[6.2999999999999998],[8],[2.3999999999999999],[null],[null],[7.5999999999999996]]]

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*Note: 2021-22 data for Tasmania and Northern Territory is suppressed due to confidentiality requirements and are noted as n.p. (not publishable).

Revisions

Users should be aware that there are some revisions to the previously published GVA estimates for 2019-20 to 2020-21 due to enhancements in product and industry coding.

Data downloads

Australian defence industry data cube

Data files

Download xlsx [485.7 KB]

Methodology

Australian Defence Industry Account, experimental estimates methodology, 2021-22 financial year

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Citation

Australian Defence Industry Account, experimental estimates

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Citation

Key statistics

Broad overview

Australian Defence Industry Account

Australian defence industry

Total defence industry GVA

Gross Value Added (GVA)

Industry overview

State overview

State by industry overview

Employment overview

Defence industry direct employment

Revisions

Data downloads

Australian defence industry data cube

Methodology

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APA

Australian Defence Industry Account, experimental estimates

APA

Key statistics

Broad overview

Australian Defence Industry Account

Australian defence industry

Total defence industry GVA

Gross Value Added (GVA)

Industry overview

State overview

State by industry overview

Employment overview

Defence industry direct employment

Revisions

Data downloads

Australian defence industry data cube

Methodology

Media releases

Defence industry supports 61,600 Australian jobs

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