Australia announced changes on Thursday to the way it manages the delivery of defence projects, aiming to curb billions of dollars in cost overruns and lengthy delays.
The government said it would establish a special agency to oversee defence project delivery, overhaul the way project costs are assessed, and streamline decision-making by cutting bureaucracy.
The decision comes as the country undertakes a major build up of its military capacity, with projects including the AUKUS nuclear submarine pact, a continuous naval shipbuilding programme and investments to develop domestic missile and drone industries.
"For too long, Defence has struggled to deliver major capability projects on time and on budget," Pat Conroy, minister for defence industry, said in a statement.
In a speech in Canberra unveiling the reforms, Conroy described the department's systems as "broken".
"The fact is these systems were designed for a very different world," he said. "Through these reforms, we're making sure that when Defence is developing capability projects that we're setting them up for success."
He said an internal review found the average cost of defence projects increased by 38%, or A$29 billion ($19.97 billion), from project conception to government decision.
"The way Defence was operating had become outdated and compromised for at least the last decade," Conroy said.
The government in April announced it would raise defence spending to 3% of gross domestic product by 2033 from about 2%.
($1 = 1.4520 Australian dollars)