The federal government has announced it will spend between $14 billion and $18 billion upgrading and "hardening" defence bases across Australia's north, as the Australian Defence Force (ADF) pivots towards security threats in the Indo-Pacific region.
Defence Industry Minister Pat Conroy announced the spending at a defence industry convention in Darwin on Wednesday, promising the funding would benefit local businesses and workers.
He said the government was focused on "hardening and developing" bases in the Northern Territory, as well as other installations in northern Western Australia and North Queensland.
It follows the release of the Defence Strategic Review in April last year, which recommended the ADF shift its strategy towards missiles and long-range capabilities.
The review found Australia's geographic isolation was no longer a major defence advantage, and the government responded by vowing to upgrade a number of bases across the north.
Acknowledging that Australia found itself in the "most challenging strategic circumstances since World War II", Mr Conroy said $750 million would be included in next Tuesday's federal budget for "hardening" northern bases.
"The NT is critical to the defence of the nation, not just in defending Australia but projecting power out into our region against any potential adversary," Mr Conroy said.
He said the funding would go towards projects such as surveillance aircraft based at RAAF Tindal, near Katherine, and the purchasing and training of crew for new amphibious landing craft based in Darwin.
Economic benefits of defence spruiked
Governments have long promised economic development and opportunity for the Northern Territory would accompany increased investment in the defence bases.
But statistics released last week show residents in the territory have been leaving for interstate, spurring debate around what can be done to revive the region's development.
Mr Conroy promised this latest funding package would prioritise contracts with local companies, which he said would provide thousands of jobs.
"As we move more equipment up here you will see more work being done up here on the defence industry," he said.
"That will all contribute to the economy, as well as increasing the safety of Australia."
Mr Conroy said defence made up 7.5 per cent of the territory's economy and that share was set to grow in coming years.
He said the "lion's share" of the $18 billion for northern Australia would be flowing into the NT, with other jurisdictions seeing a smaller portion.
NT Chief Minister Eva Lawler welcomed the funding announcement, saying the funding would flow into development in places such as Darwin and Palmerston.
She said her government would be looking to open up new housing subdivisions in anticipation of more workers and infrastructure projects to cope with the defence investment.
