South Australia’s defence industry has reached a new milestone, generating more than $2 billion in economic value for the past financial year, reinforcing the state’s position as a national leader in defence capability.

New data released by the Australian Bureau of Statistics highlights South Australia’s standout performance, leading the major states on a per‑capita basis for both defence economic output and defence industry employment.

In 2024-25, South Australia generated around $1,060 in defence Gross Value Added (GVA) per person, almost three times higher than New South Wales, which recorded $381 per person.

Overall, the defence sector contributed $2.015 billion in GVA, a 4 per cent increase on 2023-24 and more than double the $977 million recorded in 2019-20. GVA measures the additional economic value created through the production of goods and services and highlights the growing contribution defence industry makes to the state’s economy.

ABS figures show South Australia has the highest defence workforce concentration of any major state, with six defence industry jobs per 1,000 people, more than double that of New South Wales and Victoria. Noting that the Australian Capital Territory remains an outlier due to its dense concentration of Defence personnel and comparatively small population.

At a national level, the defence industry contributed $12 billion to Australia’s GVA over the past year, a 1.2 per cent increase on the previous year, while employing 63,500 Australians.

The state is gearing up for a new phase of industrial growth as it prepares to support Australia’s nuclear‑powered submarine program under the AUKUS agreement.

More than 400 local defence businesses already operate across South Australia, supplying Defence directly and contributing to global supply chains.

By the 2040s, South Australia’s defence industry workforce is expected to increase by more than 10,000 jobs and around 4,000 roles to design and build the $30 billion Nuclear‑Powered Submarine Construction Yard – securing South Australia’s role as a national defence industry leader for decades to come.