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BMI View: The Australian defence industry is currently in a state of flux. Having planned swingeing defence-spending cuts as part of a cross-government deficit-reduction strategy, the administration of Julia Gillard made a dramatic U-turn in May 2013, pledging to increase the Department of Defence's allocation from AUD24.18bn this year to AUD30.7bn in 2016-17. A new Defence White Paper, also released in May, then retained the ambitious capabilities sought by Canberra in the previous 2009 White Paper. However, the ousting of Gillard a month later and the return to power of Kevin Rudd, combined with an impending general election this coming November, means that the new plans for Australian defence may soon change yet again. Another Defence White Paper is now expected to be published in 2014-15 ...
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