Top brass in danger as ADF faces overhaul

Dozens of senior ADF officers and Defence public servants are facing the chop as Richard Marles prepares to roll out sweeping reforms amid ongoing tension over budget blowouts.

Defence Minister Richard Marles talks to soldiers in front of a High Mobility Artillery Rocket System at the Australian International Airshow. Picture: AFP

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Dozens of senior ADF officers and Defence public servants are facing the chop as Richard Marles prepares to roll out sweeping ­reforms amid ongoing tension over budget blowouts and delays in getting new weapons and equipment into service.

Up to 25 star-ranked Australian Defence Force commanders could be forced out in the “everything’s on the table” overhaul, while 20 to 40 senior public service positions could be cut.

The government is also considering the creation of a new ­armaments directorate that would roll together the department’s vast and underperforming Capability Acquisition and Sustainment Group with its Guided Weapons and Explosive Ordnance Enterprise, and the Naval Shipbuilding and Sustainment Group.

Mr Marles, the Defence Minister, flagged the reforms last month, saying the department needed to be “fit for purpose”.

The overhaul comes as the Defence budget is stretched to the limit by the AUKUS submarine program and new frigate projects, sparking warnings of a hollowed-out force with scarce munitions and a shortage of critical capabilities, including missile defence systems and long-range weapons.

At the same time, the government is refusing to lift defence spending from 2 per cent of GDP to the 3.5 percent demanded by the Trump administration.

Mr Marles’ office declined to provide details of his reform plan when approached by The Australian, while a senior government source said the extent of the personnel cuts was yet to be finalised.

The reduction in senior officers and department executives is likely to be achieved through ­attrition and severance packages.

The ADF is one of the most top-heavy militaries in the world, with one study revealing Australian star-ranked officers are ­responsible for 11 times fewer personnel than their US counterparts. Multiple sources said internal discussions on the reforms warned star-ranked officer numbers could be slashed by 10 per cent, while even deeper cuts were being considered for the department’s senior executives.

They said the changes were aimed at sharpening the accountability of senior decision-makers and getting people with the right skills into the right roles.

Mr Marles has become ­increasingly frustrated with his department over its ability to ­deliver on the government’s plans to transform the ADF into a modern force capable of projecting power over long distances.

The tensions were underscored by a recent Auditor-General’s report that revealed Defence failed for nearly 2½ years to provide formal updates to Mr Marles on the readiness of the army, air force and navy.

Flagging the reforms at The Australian’s Defending Australia Summit last month, the Defence Minister said his department needed to lift its game. “Delivery is fundamental to what we must achieve,” he said. “And so, in ­ensuring that it is fit for purpose, I say today that everything’s on the table, including bureaucratic ­reform of the Department of Defence, of the Australian Defence Force and of defence agencies.”

Weeks earlier, the Chief of the Defence Force, David Johnston, said the department was “fully ­expending” its budget, and he was providing “frank advice” to the government ahead of its next round of defence funding decisions due next year.

Admiral Johnston has about 12 months to run of a two-year term, while Defence secretary Greg Moriarty – who has served nearly eight years in the role – has just over two years to go on his contract. One former senior commander said the reforms needed to start at the top.

“The secretary has been there forever. All he has done is managed chaos. What are his KPIs?

“If delivering results is a measure of leadership, his leadership seems unsustainable.”

The former commander said the reform agenda was a make-or-break moment for the minister. “They keep changing structures, but those decisions ­almost never translate into provable, measurable performance improvements.

“It has to be about efficiency and effectiveness. It can’t be about just pouring more money into the same system.”

The government has a 25-year plan to re-equip the ADF with new submarines, warships, armoured vehicles and missiles, but the Australian Strategic Policy Institute has warned its “business as usual” defence budget risks creating a “paper ADF” that is ill-prepared for near-term conflict.

The navy’s combat fleet is its smallest and oldest in decades, its two replenishment ships are out of action with drive-train problems, and its two landing helicopter docks are – according to the Auditor-General – still riddled with defects a decade after they entered service.

There are also concerns over the six Collins-class submarines, which are nearing the end of their operational lives.

Meanwhile, the force is facing a recruiting and retention crisis that has left it understrength by 5000 personnel, with the shortages most acute in key technical and engineering roles.