New Australian business definition a step in the right direction

Earlier this month, the Department of Finance released a new standard definition of an Australian business. This includes that the business be at least 50 per cent Australian owned.  

This is a positive step to help bolster our sovereign capabilities and one which we welcome. But to deliver a true level playing field, we would like to see it become a standard definition used across government, including defence. And if we're aiming to empower sovereign capability, it’s also important to look at how government procurement policies are structured.

This is a sentiment long shared by the Australian Industry & Defence Network (AIDN), who argue that any defence funding increase must be accompanied by reforms to better support the local SME sector.

"Better utilising SMEs strengthens Australia’s sovereign industrial base, reduces reliance on foreign suppliers and ensures a pathway to greater defence self-reliance," according to AIDN CEO Mike Johnson.

A focus on sovereign technology

Working to ensure Australian businesses are treated in a fair and equitable manner is vital in the future of developing an innovative and resilient sovereign technology sector.

It's also critical for growing local tech companies as they bring new products to market.

We believe upholding national interests with sovereign capability supports the government's deterrence strategy. And in the current geopolitical environment of emerging existential threats, investing in a vibrant and innovative sovereign industrial base is vital. Doing this helps open up the opportunities to showcase local innovation and capabilities.

A resilient and strong defence tech industry

Being able to think and act locally will make us more adaptable and ready for future challenges. And by putting structures in place to prioritise a sovereign defence industry, government and Australian businesses can work together for long-term economic benefits.