Australia is investing billions in defence capabilities, infrastructure and preparedness as the strategic environment in the Indo-Pacific becomes more uncertain. But too little attention is being paid to whether that investment is creating the scalable industrial capacity needed to sustain military operations during a prolonged crisis. The Northern Territory should become a national centre for operational testing, adaptation and sustainment, strengthening deterrence while ensuring Australia has the capacity to fight if necessary.
LAND 156, Defence’s counter-drone program, provides an immediate opportunity. The government has committed up to A$7 billion to counter-drone capabilities over the coming decade. At South Australia’s Cultana Training Area, soldiers assessed 20 systems for defeating drones, selecting eight for introduction into service. Defence is moving quickly to respond to an evolving threat, but purchasing equipment is only part of the challenge. Australia must also be able to repair damaged systems, replace components, update software and increase production as circumstances demand. Those capabilities take years to develop and cannot simply be purchased when a crisis emerges.
Several states are positioning themselves to capture defence testing investment. South Australia has Woomera and Cultana, while Queensland is supporting a new three-million-acre weapons testing facility near Thargomindah, scheduled to become operational in 2028, alongside its existing Cloncurry Flight Test Range. Western Australia also has established testing infrastructure and ambitions in autonomous systems. Competition can stimulate innovation, but Defence’s decisions must ultimately be driven by national capability requirements rather than competition between state development agencies.
The Northern Territory has a compelling case. Its extensive training areas, vast distances, tropical conditions and proximity to operational bases provide opportunities to test military systems in demanding, theatre-relevant environments. Bradshaw, Mount Bundey and Delamere already provide substantial defence training infrastructure, while Darwin and Tindal are central to Australia’s northern defence posture. The opportunity is not simply to provide space but to connect testing with military operators, engineers, manufacturers and maintainers who can improve equipment and keep it operational.
Testing in October by Praetorian Aeronautics at Beatrice Hill near Darwin illustrates what is possible. The Australian company tested its Arrow interceptor and Hadrian battle-management system under northern conditions. While developmental testing does not establish operational effectiveness, it demonstrates how the Northern Territory could support the continual improvement of emerging technologies. Defence should build on such activity through an enduring northern operational testing and evaluation program, beginning with counter-drone systems and expanding into autonomous platforms, electronic warfare, sensors and other capabilities.
The objective should extend well beyond occasional demonstrations. Companies need opportunities to test equipment alongside military users, identify weaknesses, modify designs and return for further evaluation. That recurring activity could support local engineering, systems integration, maintenance and specialised manufacturing. But testing alone will not create a scalable defence industry. Without sustained procurement demand and opportunities for Australian companies to maintain, modify and produce equipment, the economic benefits will remain limited.
The Northern Territory government’s 2026 Defence Strategy already identifies testing, evaluation and sustainment as priorities. What is needed now is a coordinated investment framework between the territory and the federal government that links access to testing facilities with industrial land, reliable energy, transport, communications and workforce development. Defence procurement must provide sufficient certainty for companies to invest in permanent facilities and skilled workers, while rewarding the ability to expand production when required. This shouldn’t mean attempting to manufacture everything in Darwin. The objective is a nationally integrated industrial network with critical testing, repair and adaptation capabilities positioned in the north and supported by suppliers across Australia.
There are legitimate counterarguments. Established ranges elsewhere provide sophisticated instrumentation, experienced personnel and economies of scale. Northern Australia’s infrastructure costs, workforce shortages and logistical challenges are substantial, and not every capability requires tropical testing. The answer isn’t another Woomera. It’s a complementary northern proving ground that combines existing infrastructure with sustained experimentation alongside operational forces, under realistic environmental and logistical conditions. Crucially, this would also provide a foundation for the industrial investment needed to sustain those capabilities over time.
The measure of success shouldn’t be the number of companies opening Darwin offices or the value of construction contracts. It should be how quickly equipment can be tested, repaired, adapted and returned to service, and whether Australian industry can expand output when demand exceeds peacetime expectations. The Northern Territory should be where Australia proves not only that its weapons work but that it has the industrial capacity to keep them working when it matters most.
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