Australia’s Defence Overhaul: Ghost Bats, Ghost Sharks...

Australia has launched its biggest defence shake-up since the Second World War, committing tens of billions of dollars to new technology, ships and submarines. The push comes at a time of rising tensions in the Indo-Pacific, with China carrying out naval exercises close to Australian waters and the government under pressure to strengthen its own defences rather than relying too heavily on allies.

New Capabilities on the Horizon

Ghost Bat drones – The MQ-28A Ghost Bat is the first military aircraft designed and built in Australia in more than 50 years. Developed with Boeing, these uncrewed aircraft are designed to fly alongside fighter jets, extending surveillance, reconnaissance and electronic warfare capability. The government has put more than A$1 billion into the programme, with over 100 test flights already carried out.

Ghost Shark undersea drones – Built in Sydney with US defence tech company Anduril, these long-range autonomous submarines are being designed for intelligence, surveillance and potentially strike missions. Canberra has signed a A$1.7 billion contract for a fleet, with the first units expected to enter service in 2026.

Frigates and shipyards – Up to 11 Japanese-designed Mogami-class frigates will be built under a A$10 billion deal with Mitsubishi Heavy Industries, while the Hunter-class frigates continue to be built in Adelaide by BAE Systems. A A$12 billion upgrade is under way at Henderson shipyard in Perth to support this work and, in future, to service nuclear-powered submarines.

Nuclear submarines – Under the AUKUS pact with the UK and US, Australia will acquire nuclear-powered submarines for the first time. The long-term cost of the programme is estimated at A$268–368 billion, with deliveries stretching into the 2030s and beyond.

Australia is spending big to make sure it can defend itself in a tougher region. Drones in the air, undersea vehicles, upgraded frigates and future nuclear submarines are all part of building that independence and strengthening alliances.

The downside: costs are eye-watering, many of the projects won’t be ready for years, and new technologies always carry risks. On top of that, while much of this build-up is aimed at countering China, China also remains Australia’s largest trading partner — making the balancing act complex.

For partners such as the UK and US, Australia’s investment makes it a stronger and more reliable ally. For the wider Indo-Pacific, it’s another sign that militaries are moving quickly towards uncrewed systems, automation and long-range strike capability.

From Ghost Bats in the skies to Ghost Sharks beneath the waves, Australia is reshaping its defence approach in ways that will be felt far beyond its own shores.