Australian defence authorities are actively monitoring a Chinese naval flotilla sailing in the Philippine Sea, Acting Prime Minister and Defence Minister Richard Marles has confirmed. The government is taking precautionary steps in case the vessels move towards Australian waters, though their ultimate destination remains unclear.
Uncertain Intentions of Chinese Task Group
Speaking to reporters on Monday, Marles revealed that while the number and types of ships have not been disclosed, the monitoring operation is a standard procedure. He admitted the government does not know the fleet's intentions or final destination. "We don't know where it's going, and it could have a whole lot of destinations," Marles stated.
This vigilance follows an incident earlier this year where a Chinese flotilla conducted live-fire drills off Australia's east coast in February before circumnavigating the continent, an action that caught officials off-guard. Estimates suggest at least one vessel from the current group could sail close to Australian waters before January. "We are monitoring it and we will continue to do so until we know that it is not coming to Australia," Marles emphasised.
He noted that the ships currently do not appear to be conducting unusual manoeuvres. The minister decided to publicly acknowledge the situation after it was reported by the Australian Financial Review last week. When approached by the AFR, the Chinese embassy denied any knowledge of a flotilla moving towards Australia.
Major Defence Restructure Announced
Marles' comments coincided with the Albanese Government announcing the most significant overhaul of Australia's Defence structure in nearly half a century. The reforms will see the establishment of a new Defence Delivery Agency, which will consolidate three major existing bodies:
- The Capability Acquisition and Sustainment Group
- The Guided Weapons and Explosive Ordnance Group
- The Naval Shipbuilding and Sustainment Group
Marles described this consolidation as a smarter use of taxpayer funds, aimed at ensuring major defence programmes are delivered on time and on budget. "This is one of the biggest changes to defence that we have seen," he said. The new agency will operate independently while working closely with Defence and the Australian Defence Force (ADF).
Future of Australian Defence Spending and Capability
The government stated the reforms are designed to ensure Defence can deliver the capabilities, skills, and workforce needed to meet Australia's strategic challenges. Since May 2022, the government has committed an extra $70 billion over the next decade, marking the largest peacetime increase in defence spending in the nation's history.
Once fully established, the Defence Delivery Agency will report directly to ministers and control its own budget. A newly created position of National Armaments Director will lead the agency, advising on acquisition strategies and overseeing major projects. Work to design and implement the agency begins immediately, with consultation involving industry and other stakeholders.
The government has assured that no jobs will be cut as a direct result of the changes, though it did not rule out some redundancies during the transition. The ultimate goal, according to the government, is to enable coordinated delivery of defence capability and foster the growth of Australia's sovereign defence industry.
