The Australian Defence Force (ADF) appears to be facing funding reductions while buying big from overseas. 

A budget analysis has revealed that the ADF is receiving less “core funding” compared to the period preceding the last election. 

It comes as parliament prepares to scrutinise recent controversial decisions involving overseas military expenditures.

One such decision that has raised eyebrows is the acquisition of a $307 million marine surveillance system from the United States, which has yet to be publicly announced by Australia. 

The system in question is the US Navy's Surveillance Towed Array Sensor System (SURTASS).

Despite Australia having the capability to produce similar technology domestically for many years, the Department of Defence claims that the federal government authorised the acquisition through a US Foreign Military Sale (FMS). 

“The Government gave Defence approval to approach the US about release of the system to Australia on an accelerated timeline in response to our challenging strategic environment, as outlined in the 2023 Defence Strategic Review,” a spokesperson said. 

This approach to military procurement has raised concerns among Australian manufacturers, who fear that the government is prioritising off-the-shelf international purchases over developing a sovereign defence capability. 

Last week, it was revealed that the Albanese government was considering importing high-tech infantry fighting vehicles worth billions of dollars rather than building them locally.

In addition to these controversies, a research paper by the Australian Strategic Policy Institute (ASPI) has found that the recent federal budget provides less core funding to Defence for the next three years compared to the previous March 2022 budget. 

The only increase in funding was compensation for higher costs resulting from the fall in the value of the Australian dollar.

According to the ASPI report, Defence's core funding will be reduced by $1.5 billion over the next three years, despite concerns about the deteriorating security environment in the Indo-Pacific region.

The budgetary concerns come at a time when Defence chief General Angus Campbell faces tough questioning during Senate estimates hearings from independent Tasmanian senator Jacqui Lambie. 

Lambie has voiced her opposition to General Campbell's proposal to remove Afghanistan war decorations from certain soldiers, questioning whether he and other top brass would be willing to return their own medals.

“These guys have been through crap and (there are) no charges. Now putting their faces and families out there,” Lambie said. 

She has pledged to challenge General Campbell during the hearings on whether he is willing to “lead by example and hand back his own medals”.