(Bloomberg) -- The Australian government is planning to expand its payments to retain soldiers in the military as part of a strategy to boost overall defense personnel to around 100,000 by 2040.
Defence Minister Richard Marles will announce a A$600 million ($396 million) package on Tuesday to entice military personnel to stay in the armed forces once their initial service obligation has expired after four years, as well as further into their career.
It is part of a broader strategy by the government to bolster the military in the face of poor personnel retention and tepid enrollments against the backdrop of a tight labor market with very low unemployment.
According to the 2024 Defence Workforce Plan, which will be released on Tuesday, Australia will need to almost double annual recruitment of military personnel if it is to remain an effective fighting force, “from approximately 5,500 per annum to 9,000 per annum over the coming decade.”
“In parallel, the median length of permanent ADF service must increase from around 7 years to around 12 years,” the plan says, according to excerpts provided in advance by Marles’ office.
The announcement comes as Australia is working to reshape its military in preparation for the arrival of nuclear-powered Virginia class submarines in the early 2030s, under the Aukus agreement with the UK and the US.
The center-left Labor government has moved to shift its focus from traditional methods of warfare and toward long-range firepower and automated drones, in addition to the new fleet of US-made submarines.
Last week, the government announced it would spend A$21 billion over the next decade to develop a domestic missile and munitions manufacturing industry.
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