Defence industry of Victoria This article provides information on the industrial sector in Victoria ( Australia ) that supplies goods and services to defence and military customers ( national governments ) and associated supply chain . Defence industry activity in Victoria . The Government of Victoria has stated that the defence industry , including military equipment manufacture as well as design , technology support and other services , is a priority industry for the economic development of the State . Some examples of defence projects completed or underway in Victoria include : Victorian defence businesses have also enjoyed successes in defence exports and global integration . For example : Tenix Defence is completing Project Protector at Williamstown for the New Zealand Government , Thales Australia has sold military vehicles to the US , Canada , the UAE and the Netherlands , Nulka and ESSM technologies have been successfully exported , and GKN is providing high level design support to international primes on global projects such as Joint Strike Fighter . Victoria is also home to the Defence Materials Technology Centre , Defence Science and Technology Organisation ( DSTO ) and the Commonwealth Scientific and Industrial Research Organisation ( CSIRO ) . Scale of defence industry in Victoria . " Note : unless otherwise indicated , data in this section is from " " Project to measure Victoria ' s defence industry activity " " written by Australian Aerospace and Defence Innovations Ltd , June 2006 . " Approximately 25 percent of defence industry activity in Australia occurs in Victoria , despite the fact that Victoria has few major military bases and consequently fewer opportunities to supply maintenance and overhaul services to Defence assets . The core of Victoria ’ s defence industry ( being those businesses with more than 50 percent of revenue derived from defence customers ) has a turnover in excess of $ 1 . 2 billion per annum , employing over 10 , 500 Victorians . About 60 percent of this employment is by the 19 Prime and Tier 1 defence contractors that undertake defence work in Victoria . This activity is separate from those people employed directly in the Australian Defence Force and Defence civilian administration . There are around 6000 military employees based in Victoria and almost 4000 civilian employees . These employment and activity numbers does also not include research institutions and related non - profit activities . For example , there are around 600 people employed in Victoria by the Defence Science and Technology Organisation . The major sources of defence industry activity ( turnover ) in Victoria in 2005 – 06 were : Supporting the defence industry , there are in excess of 800 firms that supply goods and services to defence businesses , and many more that enter and exit the defence sector for particular projects . 87 percent of Victorian defence companies also generate additional business outside the defence market . Four of Australia ' s top five defence businesses have substantial operations in Victoria . In 2005 – 06 , turnover per employee for Victorian defence businesses was $ 193 , 000 for the total industry . Prime / Tier 1 productivity was $ 171 , 000 per employee while productivity in small - to - medium sized enterprises ( SMEs ) was over $ 250 , 000 per employee . Sixty - seven percent of defence businesses operating in Victoria are actively exporting defence and non - defence goods and services to a total value of $ 1 . 05 billion in 2005 – 06 . This is around 6 percent of total Victorian exports . Around 40 percent of the total turnover for the core Victorian defence companies in 2005 – 06 was attributed to international markets . Victoria ' s defence businesses were responsible for more than two - thirds of Australia ' s defence exports in 2005 – 06 . Industry support . Support to the Victorian defence industry is primary delivered or coordinated by the State Government Department of Innovation , Industry and Regional Development , which has a dedicated Defence Industry Unit . The Defence Industry Unit is led by Major General ( rtd ) Peter Haddad AO whom the Government engaged as its strategic advisor in 2006 . The unit is made up of the following people : To guide policy development and lead on strategic projects the Government also established the Victorian Defence Industry Advisory Council on 24 July 2007 . The Council provides the Government with high level advice on current defence industry issues . The members of the Council are : The Victorian Defence Industry Advisory Council initiative was announced as part of the Government ’ s strategic framework " A Roadmap for Victoria ’ s Defence Industries " released on 10 August 2006 . Defence companies in Victoria . The following companies are based in , or have significant operations in , Victoria :