Defence Strategic ­Review examines Australia’s force posture, structure and capability

Australia’s bid to project its power in an increasingly unstable region will require long range missiles, unmanned drones and cyber and space capabilities, a defence paper warns.

Long-range missiles, unmanned drones and underwater vehicles, and cyber and space capabilities will be critical for Australia in an increasingly unstable region, a defence paper will warn.

Ahead of Anzac Day the federal government will ­release a declassified version of the Defence Strategic ­Review (DSR), an examination of Australia’s force posture, structure and capability that will also be a blueprint for how the nation responds to threats.

China’s rapid modernisation and expansion of its military has prompted Australia’s more assertive ­approach to the Indo-Pacific, described by Defence Minister Richard Marles as “impactful projection”.

To determine how to achieve this, former Australian Defence Force chief Sir Angus Houston and former Labor defence minister, now High Commissioner to the UK, Stephen Smith were asked to conduct the DSR.

The federal government will ­release a declassified version of the Defence Strategic ­Review.

Their final report was handed to government in February, while the redacted version released this week is expected to outline broad strategies and priorities, as well as recommendations on military projects.

When details of the AUKUS nuclear submarine deal were released last month the government revealed the new program would add no additional cost to the budget over the four-year forward estimates.

The initial cost of bolstering the capability in US and British naval shipyards as well as infrastructure ­upgrades in South Australia and Western Australia would be covered in part through funds previously ­allocated to the now defunct French submarine program.

About $3bn was to be found in the existing ­Defence budget, though the government did not reveal at the time what would be cut or delayed.

New details of the AUKUS nuclear submarine deal were released last month. Picture: Nicholas Eagar

The review will recommend the number of next-generation Infantry Fighting Vehicles for the army be cut from 450 to 129, while the acquisition of self-propelled Howitzer canons will be cancelled.

It has also been revealed a range of commitments announced under the previous Coalition government were underfunded by 24 per cent over the next four years – $42bn over the next decade.

Speaking in Question Time last month Mr Marles accused the Coalition of often having “absolutely nothing” behind its Defence announcements, and vowed Labor would properly budget for each capability.

“We understand that it is in the making of hard budget decisions that we actually acquire the military capability that we need as a country to keep Australians safe,” he said.

Coalition defence spokesman Andrew Hastie attacked Labor’s record when last in office, between 2007 and 2013.

“As a member of the ADF during that period, I saw this decline in capability first-hand,” he said.