ADF set for major re-structure as Richard Marles plans dump top defence chiefs due to mounting budget constraints

Sky News AU

08-07-2025

Defence Minister Richard Marles will carry out a significant overhaul of the Australian Defence Force which could include the axing of numerous high-ranking officials and public servants as the government works to consolidate the defence budget.
The reforms, dubbed the 'everything's on the table' re-model could encompass the dumping of the ADF'S upper echelons and top brass.
These include up to 25 star-ranked ADF commanders according to The Australian, in addition to 20–40 senior officers as costs begin to blowout for numerous defence projects including new frigates and long-range missile systems.
The government is also mulling fusing multiple departments together, with the expansive and underachieving Capability Acquisition and Sustainment Group set to be merged with the Guided Weapons Explosive Ordnance Enterprise and the Naval Shipbuilding and Sustainment Groups.
Mr Marles first touted the restructure last month and said the ADF needed to be 'fit for purpose' with the reforms now reportedly taking shape.
The Deputy Prime Minister said at The Australian's Defending Australia Summit in June that his department needed to drastically improve its performance and that the reforms would be widespread in scope.
'Delivery is fundamental to what we must achieve,' he said.
'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.'
The cutting of senior defence positions and department bosses is believed to be achieved through a mixture of attrition and severance packages.
A 2023 paper investigating the ADF's hierarchy revealed that Australia's armed forces were one of the most top heavy and bloated militaries in the world, and that accordingly combat readiness had been jeopardised.
Internal sources within Defence told The Australian that the department was looking at shrinking at least 10 per cent of the ADF's star-ranked corps, and that larger cuts were being discussed for top department executives.
The sources reiterated the move was aimed at consolidating the chain of command and modernising the ADF's functionality compared with other regional and international militaries.
Mr Marles has apparently become irate with his department's ability to transform the ADF into a more modern, integrated and potent force that is capable of projecting power over long distances.
The growing rift between the Defence Minister and the ADF was exposed when it was revealed the Albanese government had failed to receive formal military readiness reports from the Department of Defence for more than two years according to a report from the Auditor General.
The Albanese government continues to resist calls to boost the defence budget from 2 to 3.5 per cent and is grappling with intensifying delays on defence projects with Defence Force chief David Johnson stating in early June that the department was 'fully expending' its budget.