This audit would consider the effectiveness of the Department of Defence’s (Defence’s) design process and monitoring arrangements for the Defence Export Strategy. It would examine the soundness of Defence’s policy advice to government; the planning and governance arrangements established to support the strategy’s implementation; selected aspects of the strategy’s implementation to be achieved through contracting arrangements, such as royalty payments; and the effectiveness of Defence’s monitoring and reporting on outcomes. An audit would provide assurance to Parliament on Defence’s advisory and implementation processes.

The aim of the Defence Export Strategy is to ‘achieve greater export success to build a stronger, more sustainable and more globally competitive Australian defence industry to support Australia’s Defence capability needs’. To achieve this, an additional $20 million in annual funding has been provided in 2018–19 to support defence exports, an Australian Defence Export Office has been established, and defence export finance worth up to $3.8 billion is available.