2 weeks Ago By Ellen Ransley
The Federal Government is set to cancel a multi-billion-dollar military-grade satellite communications program announced only 18 months ago. Despite the Government only announcing last April that Lockheed Martin had been granted the tender to deliver what would have been the most significant space project in the country’s history, it has been reported the project will be canned because there is not enough money in the department’s budget. As part of the Integrated Investment Program, the project known as JP9102 was given a 10-year budget of between $5.
2 and $7.2bn. It would have involved a system of three to five satellites capable of high-level protection against cyber and electronic warfare attacks.
The report in The Australian suggests the Government will point to rising costs and other potential technologies as reasons for cancelling the program. It’s understood that the Albanese Government will make announcements in the coming days. Defence Minister Richard Marles’ office did not provide comment.
In announcing the project last year, Defence said the satellite system would include new Defence controlled and operated geo-stationary communication satellites that would have created an impenetrable data network across the military. The project was also set to build multiple ground stations across Australia, an integrated management system, and two new operations centres. Head of air defence and space system division Air Vice-Marshal David Scheul said at the time the project would be a game changer for the nation’s sovereignty.
“Currently across Defence there are up to 89 capabilities which depend on satellite communications,” Air Vice-Marshal Scheul said. “Once delivered, the new system will increase the resilience, agility and flexibility of Defence’s military satellite capability.” Defence funding was set to hit a record $55.
687bn in 2024-25, and up to $67.393bn by 2027-28. Comparatively, the 2023-24 defence budget was $53.
331bn. In handing down his Budget in May, Treasurer Jim Chalmers said investing in “modern defence industries serves our economic and national security interests”. “That’s why we’re injecting $50.
3 billion over the decade to deliver the capabilities we need to keep Australians safe — as part of the National Defence Strategy,” he said at the time. Defence officials and the Government are set to be questioned over the cancellation during Senate Estimates hearings this week..
