Australia's national security depends on our ability to respond to an increasingly complex and uncertain world, and ensuring our Defence Force has the capabilities, resources and protections it needs to keep Australians safe is one of the most important responsibilities of any government. But protecting Australia today requires more than maintaining the Defence Force we have always known. It requires us to prepare for the challenges of tomorrow and recognise that the nature of modern warfare is changing faster than ever before.

Across the world we're seeing new technologies fundamentally changing how military operations are conducted. Drones, autonomous vehicles, artificial intelligence and cyber capabilities are no longer technologies of the future. They're being used in conflicts the world over. As these technologies continue to evolve, Australia must ensure our Defence Force is equipped to respond, because we cannot expect our Defence Force to meet the challenges tomorrow while operating under legislation designed for the past. That is why the reforms before the House are so important. They will ensure Defence has the legislative foundations it needs to develop new capabilities, work more closely with Australian industry and protect our national security.

The Albanese Labor government understands that Australia is facing one of the most challenging strategic environments in generations. We're seeing increasing strategic competition across our region, rapid technological change and emerging threats to our critical infrastructure. Through the 2026 National defence strategy, our government is taking the steps necessary to strengthen Australia's defence capabilities and prepare for the challenges ahead. But delivering these capabilities requires more than investment alone. It requires legislation that supports innovation, rather than creating unnecessary barriers.

Right now, Defence can face a complicated combination of Commonwealth, state and territory laws when developing and testing new technologies. Many of these laws were never designed with modern defence capabilities in mind, and in some cases Defence must obtain multiple licences, exemptions and approvals simply to undertake a single testing activity. Different requirements can apply depending on where an activity takes place. This creates delays, additional costs and unnecessary uncertainty. At a time when defence technology is advancing so rapidly, those delays matter, because every unnecessary barrier can mean more time before an important capability reaches the people who need it, and every delay can mean a missed opportunity for Australian businesses developing the next generation of defence technology.

That is why this bill establishes a new defence capability framework that will provide a clearer and more consistent process for Defence to develop, test and evaluate new capabilities here, in Australia. It will support emerging technologies including autonomous systems, guided weapons, cyber capabilities and electronic warfare. Importantly, it will make it easier for Defence to work alongside Australian businesses and our trusted international partners. Take, for example, an Australian company developing an autonomous maritime vessel, which is a technology that could play an important role in surveillance, reconnaissance or protecting the water around our island home. Under existing arrangements, Defence and that company may need to navigate multiple layers of regulation before the vessel can even be tested, and these requirements can delay development, increase costs and make it harder for Australian innovations to become practical defence capabilities.

The new framework will help address these challenges by providing a clearer pathway for appropriate testing and development activities. This matters not just for Defence but for Australian industry because, when we make it easier to develop and test advanced technologies in Australia, we're creating opportunities for Australian workers and businesses. We're supporting researchers, engineers, manufacturers and the next generation of skilled workers, and we're strengthening Australia's sovereign industrial capability so that we're better equipped to develop and maintain the technologies our Defence Force relies on. This is particularly important when we consider the opportunities presented by AUKUS.

Our partnership with the United States and the United Kingdom represents a generational opportunity to strengthen Australia's national security. While much of the public discussion focuses on nuclear powered submarines, AUKUS extends well beyond submarine construction. Through pillar II, Australia is working with our closest partners to accelerate the development of advanced military technologies, including autonomous underwater vehicles, artificial intelligence, cyber capabilities and other emerging systems. But to take full advantage of these opportunities, Australia needs the ability to develop, test and integrate these technologies efficiently. We cannot afford to have Australian innovation held back by outdated regulatory arrangements, and we certainly don't want to see opportunities for Australian businesses move offshore simply because our legislation hasn't kept pace. These reforms will help ensure Australia remains an active participant in the development of the next generation of defence capabilities, and, importantly, they'll help ensure the economic benefits of these investments are realised here at home.

For my home state of South Australia, these reforms are particularly significant. South Australia is already playing a central role in Australia's defence future. From our naval ship building industry to the growth of advanced manufacturing and defence technology, South Australia is helping build the capabilities Australia will rely on for decades to come. While much of this investment is concentrated around major Defence precincts, the opportunities extend well beyond them. Across the northern suburbs of Adelaide, including communities in my electorate of Spence, defence investment has the potential to support local manufacturers and create highly skilled employment opportunities—opportunities for young Australians looking to enter the workforce, apprentices learning a trade or a small business looking to become part of Australia's defence supply chains. Because strengthening our national security and supporting Australian jobs are not competing priorities; they go hand in hand.

By strengthening Australia's ability to develop and manufacture advanced defence technologies, we are building a stronger economy and a more secure nation. But developing new capabilities is only one part of the challenge. We must also ensure that the people, facilities and infrastructure supporting those capabilities are properly protected. Increasingly, one of the most significant threats facing defence installations around the world comes from drones and other uncrewed systems. These technologies have become more affordable, more accessible and more sophisticated. While they have many legitimate recreational and commercial uses, they can also be used for surveillance, espionage and sabotage.

We've seen in conflicts around the world how relatively inexpensive drones can pose serious threats to sophisticated military equipment and critical infrastructure. As these technologies become more widely available, our Defence Force must have the tools necessary to respond. A drone operating near a sensitive Defence facility could potentially gather intelligence, disrupt operations or threaten personnel and equipment. Yet the legislation governing Defence's ability to respond to these threats has not always kept pace. That's why this bill establishes a modern defence security zone framework.

This framework will bring together and modernise existing security arrangements, providing Defence with clear authority to protect its personnel, facilities and sensitive activities. It will allow appropriate security measures to be applied to Defence bases, important industrial facilities and other locations where sensitive defence activities are being undertaken. Importantly, it will provide authorised Defence personnel with the ability to detect, monitor, track and, where necessary, neutralise drones and other uncrewed systems that pose a genuine security threat. Because Defence should not have to wait until sensitive information has been compromised or personnel have been placed at risk before responding to an emerging threat.

The framework also recognises that defence activities don't always take place within the boundaries of permanent military bases. There may be circumstances where sensitive equipment is being transported, where an Australian company is undertaking important capability trials or where an emergency requires temporary security arrangements. The ability to establish permanent, temporary or mobile and emergency defence security zones will allow security measures to be tailored to these different circumstances. This is particularly important as Australia continues to deepen its defence cooperation with the United States and the United Kingdom through AUKUS. As our partnerships expand, so too does the importance of protecting visiting military assets, sensitive technologies and major defence industrial precincts. We have a responsibility to ensure these activities can be undertaken safely and securely and that Australia remains a trusted and capable partner.

While these reforms provide Defence with important new authorities, they also recognise that those powers must be accompanied by appropriate safeguards. Strengthening national security should never mean abandoning accountability, and providing Defence with the powers necessary to respond to modern threats does not mean those powers should be unlimited. The defence capability framework does not provide a general authority for Defence to undertake any activity it chooses. Activities must fall within the legislative framework and be specifically authorised. It cannot be used to authorise domestic policing functions, compulsory acquisition of land or the use or threat of force against people in Australia. When authorising capability activities, decision-makers must consider whether the impact on people in Australia is reasonable and proportionate. They must also consider whether those undertaking the activities are suitable and whether appropriate safeguards are in place. These are important protections that ensure the development of new defence capabilities is accompanied by clear responsibilities.

The same principle applies to the defence security zone framework. Security zones must be geographically limited and no more extensive than necessary to achieve their intended purpose. There are also requirements for consultation with people who may be affected and time limits on temporary and emergency arrangements. Importantly, the legislation recognises the need for Defence to work with other agencies, including the Civil Aviation Safety Authority, to ensure that security activities don't unnecessarily compromise civilian aviation safety.

The bill also strengthens independent oversight through expanded functions for the Inspector-General of the Australian Defence Force, alongside parliamentary scrutiny through the Parliamentary Joint Committee on Defence, because Australians should have confidence not only in the capabilities of the Defence Force but also in the systems of accountability that govern its activities.

These reforms have not been developed in isolation. They follow a consultation across government, including with 19 Commonwealth departments and agencies, as well as a public consultation process undertaken by Defence in 2023. That consultation has helped inform legislation intended to balance the operational needs of Defence with the rights, interests and safety of the Australian community.

Ultimately, these reforms reflect a simple but important principle. If Australia is serious about strengthening our national security, we must ensure our legislative framework is capable of supporting the defence force we need for the future. We cannot expect our military personnel to operate with tomorrow's technology while navigating yesterday's laws, and we cannot expect Australian defence industry to compete internationally if unnecessary regulatory barriers prevent innovation from progressing here at home.

The Albanese Labor government is committed to building a defence force that is capable, adaptable and prepared for the challenges ahead; a defence force supported by advanced technologies, strong international partnerships and a growing sovereign industrial base; but also a defence force operating within a clear legislative framework, with appropriate safeguards and strong independent oversight. These reforms are an important part of delivering that commitment. They will help accelerate the development of new capabilities, strengthen the protection of Defence personnel and infrastructure. and create greater opportunities for Australian industry. As Australia's strategic environment continues to evolve, they will help ensure that our Defence Force has the authorities it needs to respond effectively, because, ultimately, our responsibility is not simply to respond to the security challenges Australia faces today; it's to ensure our nation is prepared for the challenges we may face in the decades to come. That means making the investments, building the partnerships and delivering the legislative reforms necessary to keep Australia safe. That is what these reforms seek to achieve, and that is why I commend them to the House.