Tensions between Defence Minister Richard Marles and his department have erupted publicly after he declared Defence still had a “way to go” on achieving excellence, and he made no apologies for butting heads with military chiefs and mandarins.

Mr Marles confirmed The Australian Financial Review’s revelations of his frustrations with his department in an extraordinary parliamentary spray, as the opposition demanded Mr Marles lift his game, while industry warned squabbling over finalising a new list of planned equipment acquisitions risked sending contractors broke.