I move:

That this bill be now read a second time.

I am pleased to present the Defence Legislation Amendment (Accelerating Capability and Protecting Bases) Bill 2026.

As we all know, Australia faces its most complex strategic environment since World War II. Technological change is accelerating and is rapid. Military capabilities are evolving rapidly, and Defence must work closer than ever with Australian industry and international partners and be able to protect the security of defence personnel as well as the sites and the operations.

This bill modernises the legislative foundations that support Defence's capability development, preparedness and security, helping implement the National defence strategy and AUKUS. These reforms will better equip Defence to respond to increasingly complex strategic circumstances.

Much of Australia's defence legislation was designed in a different era for a very different strategic and operational environment. While the Defence Act 1903 has been amended over time, important parts of the legislative framework have not kept pace with changes in technology, capability development, industry participation, international cooperation and contemporary security threats.

The Albanese Labor government is addressing these challenges. This bill provides a modern statutory framework to support defence capability development and preparedness, and establishes a contemporary framework for protecting defence personnel activities, capabilities and assets in Australia.

This bill provides clear authority to detect, identify, monitor, track and respond to drones and uncrewed systems where necessary for defence security purposes. This will enable Defence to act before an unauthorised system compromises sensitive information, disrupts an activity or causes harm. The powers are accompanied by training, authorisation, decision-making and oversight requirements.

Importantly, these reforms are accompanied by key statutory limitations and safeguards, including enhanced independent oversight functions for the Inspector-General of the ADF, to ensure that the new frameworks operate appropriately and accountably.

The bill contains six schedules. Schedule 1 contains the provisions relating to defence capability development activities. Schedule 2 contains provisions relating to defence security zones. Schedule 3 contains the oversight and accountability by parliament and the Inspector-General of the Australian Defence Force provisions. Schedules 4, 5 and 6 contain consequential and contingent amendments.

SCHEDULE 1—CONDUCT ENGAGED FOR DEFENCE CAPABILITY ACTIVITIES

Schedule 1 is a central objective of the National Defence Strategy to accelerate the development, acquisition and introduction of capabilities required for Australia's strategic circumstances.

To achieve this objective, schedule 1 of this bill establishes a new Defence capability framework to support capability development and preparedness activities.

Capability development is no longer confined to traditional Defence establishments or undertaken solely by Defence personnel.

They increasingly involve advanced technologies, integrated workforces, Australian industry and international partners, and may occur across multiple jurisdictions and in a wide range of settings.

The bill responds to these changes by replacing fragmented and uncertain arrangements across states and territories with a clear Commonwealth statutory framework, defined safeguards and strengthened oversight.

Defence's ability to develop and introduce new capabilities can be delayed or impeded by laws that were not designed with contemporary military activities and/or technologies in mind.

These constraints can be particularly significant where activities involve advanced technologies, Australian industry, foreign military personnel or multiple Australian jurisdictions.

For example, existing civilian regulatory requirements can affect the testing and evaluation of autonomous maritime, aerial and land systems, the development of electronic warfare and cyber capabilities, and the participation of industry and international partners in Defence training and capability activities.

In practice, these requirements—designed for a civilian context—mean that an activity can be delayed, modified or conducted in another jurisdiction, even where it is essential to the development of a priority Defence capability.

The framework will operate through a ministerial declaration process which specifies activities.

A declaration will identify the conduct and participants it covers, impose appropriate conditions and specify which state or territory laws, or which of a limited number of Commonwealth laws, will not apply to the specified conduct.

This will provide a single legislative mechanism for supporting capability activities, rather than requiring Defence, industry and international partners to rely on a complex patchwork of multiple exemptions and administrative arrangements.

Importantly, the framework is targeted and subject to clear limits.

Before making a declaration, the decisionmaker must be satisfied that the activity is necessary or desirable for capability development or preparedness, that its impacts are reasonable and proportionate, and that the proposed participants are appropriate.

The framework cannot be used to authorise domestic policing functions, compulsory acquisition of land, the use of force against persons in Australia or other categories of conduct specifically excluded by the legislation.

The framework will not apply in operational contexts, and includes strong privacy protections, offences for non-compliance with conditions, and independent oversight.

The ADF is increasingly reliant on electromagnetic and cyber capabilities to carry out its functions—an increasingly standard feature in major military platforms.

When integrated with more traditional systems, non-kinetic capabilities offer superiority in terms of scalability, proportionality and effectiveness.

It is critical that the ADF develop and test these technologies onshore. The framework establishes a specialised electronic capability declaration framework for the development, testing and training of electronic capability activities.

The criteria for making an ordinary capability declaration continue to apply, but additional requirements and controls are imposed to ensure alignment with the guardrails for similar activities under the Telecommunications (Interception and Access) Act 1979.

Schedule 1 will reduce legal uncertainty and enable Defence to develop and introduce new capabilities at the speed required by Australia's strategic circumstances.   .SCHEDULE 2—DEFENCE SECURITY ZONES

Schedule 2 establishes a contemporary and consolidated Defence security zone framework for protecting Defence personnel, activities, capabilities, assets and facilities.

This bill replaces previous security arrangements across seven legislative frameworks with a single, integrated one.

Australia's existing Defence security arrangements have developed incrementally over many decades through a collection of schemes designed for different purposes and operational environments.

This has created complexity and inconsistency and has left some arrangements ill-suited to contemporary Defence activities and security threats.

Today's security environment has changed. Defence must be able to protect increasingly sensitive capabilities, complex military activities and visiting foreign military assets against a range of rapidly evolving state and non-state threats.

Schedule 2 responds to these challenges by establishing a consolidated Defence security zone framework that can be applied flexibly across a range of Defence activities and locations.

The new framework will provide for permanent, temporary, mobile and emergency Defence security zones.

This will enable security arrangements to be tailored to Defence facilities and activities, including major exercises, capability trials, visiting foreign military assets and sensitive AUKUS-related activities.

Defence also operates through a network of industry facilities, ports, airfields, training areas and mobile capabilities.

The bill recognises this reality by allowing security protections to be applied where Defence activities occur, rather than only where Defence owns or occupies land.

A significant element of the reforms in schedule 2 is responding to the growing threat posed by drones and other uncrewed systems.

These systems can conduct surveillance, collect intelligence, or carry out physical or cyber-attacks.

These risks are particularly acute around sensitive Defence capabilities.

This bill provides clear authority to detect, identify, monitor, track and respond to unauthorised systems where necessary for Defence security purposes.

This will enable Defence to act before an unauthorised system compromises sensitive information, disrupts an activity or causes harm.

The powers are accompanied by training, authorisation, decision-making and oversight requirements.

The framework also recognises that sensitive Defence activities may occur at locations operated by defence industry partners, and provides the flexibility to apply appropriate security protections where necessary.

The reforms ensure important defence capabilities can be protected regardless of where they occur.

The bill sets out a range of powers available to law enforcement officers, which can be extended to appropriately trained and authorised Defence personnel where necessary.

These include access control, identity verification, search and seizure, removal and detention, security monitoring and movement within Defence security zones.

These powers are largely the same as those that existed across previous frameworks, but consolidation will ensure greater consistency across Defence sites, reduce complexity and provide a more consistent set of powers and safeguards, including more robust training and governance.

Importantly, these powers will be subject to statutory limitations, training and authorisation requirements, privacy protections, review mechanisms and independent oversight by the Inspector-General of the ADF.

In an environment of rapid technological change and increasingly sophisticated threats, these reforms will ensure Defence has fit-for-purpose and effective laws to safeguard the capabilities, people and infrastructure essential to Australia's national security.

SCHEDULE 3—OVERSIGHT BY PARLIAMENT AND THE INSPECTOR-GENERAL OF THE AUSTRALIAN DEFENCE FORCE.

Independent oversight, parliamentary scrutiny and accountability are central features of this bill. The two new frameworks, which I've just discussed, established by the legislation are accompanied by statutory safeguards designed to ensure powers and authorities are exercised lawfully, appropriately and consistently with their intended purpose.

Schedule 3 enables the Inspector-General of the ADF to provide independent oversight of activities conducted under schedules 1 and 2.

The Inspector-General of the ADF will be able to examine whether activities under these frameworks are undertaken lawfully, appropriately and consistently with the purposes of the legislation.

The Parliamentary Joint Committee on Defence will also have an enhanced role in scrutinising key elements of the new frameworks, including through a role for the Inspector-General of the ADF in briefing the committee on capability declarations and associated activities.

These oversight arrangements are designed to provide parliament and the Australian community with confidence that the frameworks established by this bill are supported by robust accountability mechanisms.

The reforms recognise that effective national security legislation must be accompanied by effective transparency and oversight arrangements.

These oversight functions will complement, and do not replace, existing oversight, accountability and integrity arrangements.

The reforms do not alter the functions of existing statutory oversight bodies, including the Inspector-General of Intelligence and Security and other independent oversight agencies where applicable.

CONCLUSION

These reforms will provide a stronger legislative foundation for Defence to protect its people and its critical assets, develop the capabilities Australia needs, and operate effectively in increasingly complex circumstances.

The Albanese Labor government, through this bill, is ensuring that Defence is supported by the legal frameworks required to meet Australia's strategic needs into the future.

It will enable the National Defence Strategy and support AUKUS while preserving clear limits, appropriate safeguards, independent oversight and accountability to the parliament and the Australian community.

I commend the bill.

Debate adjourned.