Government commits up to $7bn to counter-drone defences

written by Stephen Kuper | April 21, 2026

AIM Defence’s Fractl:2 Directed Energy (DE) System fitted to a commercial vehicle. (Image: AIM Defence)

The Anthony Albanese Government has unveiled plans to invest up to $7 billion in counter-drone capabilities for the Australian Defence Force (ADF), more than doubling current funding under the 2026 Integrated Investment Program (IIP).

The decade-long investment is aimed at strengthening Australia’s ability to detect and defeat increasingly sophisticated uncrewed aerial threats, both at home and in deployed operations overseas.

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Head of the Advanced Strategic Capabilities Accelerator (ASCA), Major General Hugh Meggitt, said the initiative, known as Mission Syracuse, would leverage Australia’s strengths in advanced defence technologies.

“Mission Syracuse will draw on Australian industry’s world-leading expertise in kinetic and directed energy systems to find, fix, track, target and engage uncrewed aerial vehicles,” he said.

“It will significantly enhance the ADF’s ability to counter the threat posed by UAVs employed by malicious actors, both domestically and abroad.”

 
 

As part of the announcement, the Government confirmed two initial contracts for Australian-made, next-generation counter-drone systems, marking an early step in the broader investment push.

Minister for Defence Industry Pat Conroy said the investment would strengthen both national security and Australia’s defence industrial base.

“The Albanese Government is building a stronger and more resilient defence industry through investing in Australian innovation, skills and disruptive technologies that will keep Australians safe,” he said.

The funding forms part of a wider commitment to spend up to $22 billion on drone, counter-drone and autonomous systems over the next decade, in line with the recently released National Defence Strategy.

The move comes amid growing evidence from conflicts such as the war in Ukraine and ongoing fighting in the Middle East, where drones have become a central feature of modern warfare. Defence officials say these developments underscore the need for sovereign capabilities to counter rapidly evolving threats.

Under the first round of contracts, AIM Defence will receive $21.3 million to advance its high-energy laser system, known as Fractl. The portable system is designed to track and destroy both individual drones and swarms, with the ability to lock onto objects as small as a 10-cent coin travelling at speeds exceeding 100 kilometres per hour.

SYPAQ Systems has been awarded $10.4 million to develop the Corvo Strike interceptor drone, intended to track and neutralise larger UAVs increasingly seen on contemporary battlefields.

ASCA will also oversee integration of these new systems into the ADF’s existing command and control architecture, being delivered under the LAND 156 program.

While Australia’s geography has traditionally driven investment in larger, long-range drones, officials say Mission Syracuse will accelerate the rollout of capabilities tailored to counter medium-sized drones and swarms of smaller systems, threats more likely to be encountered in complex operational environments or during domestic security tasks.

Minister Conroy added, “With record investment in drone and counter-drone capabilities, we are ensuring Australia can respond to emerging threats to our security.”

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