The Labor government led by Anthony Albanese has officially canceled Australia’s largest space program to date, just 18 months after terminating the main civil space initiative, prompting strong criticism from industry experts and analysts. The satellite communications program, known as JP 9102, was anticipated to be worth at least $7 billion AUD ($5.3 billion USD).
Initiated in 2021 with Lockheed Martin’s Australian division selected for execution, the Department of Defence stated that the decision was influenced by advancements in space technology and evolving threats, concluding that a single orbit GEO-based satellite communications system would not sufficiently meet the nation’s strategic needs. Instead, the Department emphasized a shift towards a multi-orbit capability to enhance resilience for the Australian Defense Force.
According to the government announcement, the current satellite communications capabilities adequately support immediate operational requirements, enabling prioritization of emerging needs and addressing capability gaps as Australia transitions to a more integrated and focused military force.
The Australian newspaper first reported the cancellation, attributing the decision to budgetary constraints. In response, Prime Minister Albanese defended the government’s defense budget and planning, emphasizing the prioritization of purchases in the national interest. He noted that the government is committed to increasing defense spending and bolstering capabilities through initiatives such as the AUKUS arrangements.
However, the cancellation has been perceived as indicative of the Albanese government’s reluctance to increase defense spending beyond inflation rates and currency fluctuations, coupled with a lack of commitment to advancing space programs. Jeremy Hallett, chairman of the Space Industry Association of Australia (SIAA), expressed “profound disappointment” over the decision, highlighting that while other OECD nations prioritize sovereign space capabilities for high-tech jobs and military advantages, Australia seems to be moving in the opposite direction.
Lockheed Martin Australia has pledged to preserve jobs created thus far, with plans to redeploy impacted staff to other existing and upcoming projects. Defense expert Malcolm Davis remarked that without an alternative to JP 9102, Australia may regress to dependency on foreign providers for essential space capabilities, noting past difficulties in accessing the Boeing-built WGS defense constellation.
Davis pointed out that the government’s current approach could lead to further risks for the Australian commercial space sector, potentially resulting in firms relocating abroad and losing domestic innovation. He criticized the government’s strategy of managing high AUKUS costs while simultaneously redefining, reprioritizing, or canceling key projects, suggesting this could have detrimental long-term effects on national security.
Hallett further outlined several space programs that have been cut or stalled, underscoring a lack of public communication regarding crucial initiatives such as Assured Positioning, Navigation and Timing under JP 9380 and recent media reports on the cancellation of the Resilient Multi-Mission STaR Shot program.
As the Department of Defense indicated a future focus on a “multi-orbit capability,” further details regarding the altered space program remain undisclosed. The ongoing developments in Australia’s space strategy will be crucial in determining the nation’s defense capabilities in the rapidly evolving geopolitical landscape.
