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'Urgent' action needed on funding shortfall

October 3, 2026

Saturday 03 October 2026
Elizabeth Pike
The Australian

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 Opposition defence spokesman James Paterson says the government must act  "urgently" on maintenance funding shortfalls, following revelations  the navy's two largest ships are out of action.
 
 The Liberal senator called on the government to immediately redress the issue  after The Australian reported HMAS Canberra and HMAS Adelaide had been  unserviceable and alongside in Sydney for more than two weeks.
 
 Former Liberal prime minister Tony Abbott chided the Albanese government for  mastering "spin over substance", as he published a statement online  warning about the state of Australia's readiness after years of economic and  strategic malaise.
 
 Defence on Thursday confirmed the largest ships ever constructed for the  Royal Australian Navy, the Canberra-class Landing Helicopter Docks, had been  sidelined with engine propulsion issues the force had never seen before. No  date could be provided for when the ships will be able to return to sea.
 
 Despite the Department of Defence insisting its preparedness has not been  affected, Senator Paterson criticised the government for failing to address  the issue until it received questions from the media.
 
 "If both our Landing Helicopter Docks are alongside for maintenance  because the Albanese government has not allocated enough funding to navy  sustainment, they need to urgently redress the situation," he said.
 
 "This year, according to ASPI (Australian Strategic Policy Institute),  overall Defence sustainment funding dropped $283m. (Defence analyst) Marcus  Hellyer has pointed out that Defence had its first real and nominal budget  decrease since the dark days of the Gillard government.
 
 "Our best-informed experts have warned the government that their chronic  underinvestment in defence sustainment will have serious ramifications for  the ADF's readiness. We are now seeing the consequences of these cuts to  sustainment budgets."
 
 Defence Minister Richard Marles was contacted for comment on Thursday and on  Friday, but his team has not responded to an email, text or call.
 
 Mr Abbott said the state of the LHDs were, regrettably, "typical of a  country where nothing that matters works as well as it should".
 
 "Largely because we have a government that's much better at spin than  substance," Mr Abbott, the current Liberal Party federal president, told  The Australian.
 
 When he became prime minister in 2013, Mr Abbott committed to lifting  spending on defence from 1.6 per cent to 2 per cent of GDP over the following  decade.
 
 The troubled LHDs were delivered during his term after the ships were first  acquired by the Howard government, and there were funding shortfalls under  successive Coalition governments.
 
 Mr Abbott acknowledged this as he questioned whether Australia was prepared  for a war over Taiwan, in comments published online on Friday as part of a  book review. He invoked former Labor leader Kevin Rudd's warning of a  one-in-three chance China moved to seize Taiwan by 2028.
 
 Australia's military capability had been "cannibalised" by  AUKUS" submarines that would arrive long after the potential conflict,  Mr Abbott argued, while a generation of Australians no longer believed the  country was worth fighting for.
 
 The LHDs were deployed to the Pacific in 2022 and 2023 for disaster relief  but suffered power failures, and concerns are mounting that Defence will face  a similar situation this disaster season.
 
 The power fallouts were described in senior-level Defence meetings at the  time as "catastrophic failures" but calls for more sustainment  funding were not heeded in the long term, according to this year's budget.

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