Why this sector matters
The defence sector plays a significant role in the Northern Territory economy, supporting infrastructure development, employment and long-term investment across the region.
With increased Federal defence spending, ongoing AUKUS (Australia, United Kingdom, United States) commitments and a stronger strategic focus on Northern Australia, businesses across the Territory are seeing new opportunities emerge. For many organisations, now is the time to assess your capability, strengthen foundations and position yourself to participate in future defence projects and supply chains.
Current climate, challenges and opportunities
The Northern Territory defence sector continues to gain momentum, driven by substantial Commonwealth investment in infrastructure, logistics and capability development.
One example is the RAAF Base Tindal Redevelopment near Katherine. The project includes runway extensions, a new air movements terminal, enhanced fuel storage facilities and more than 100 new accommodation units for Australian Defence Force personnel. Construction is expected to continue through to 2027, creating significant opportunities for contractors, suppliers and service providers across the Territory.
Large prime contractors are increasingly engaging local businesses to support project delivery. As a result, a strong pipeline of work is emerging across construction, maintenance, logistics, engineering and professional services.
While the opportunities are significant, businesses entering or operating within the defence supply chain often face several practical challenges.
Complex procurement processes
Defence procurement requirements can be detailed and highly structured. Tendering often requires extensive preparation, compliance documentation and demonstrated capability.
Extended payment cycles
Government contract payment terms can impact cash flow, particularly for smaller and growing businesses.
Workforce shortages
Skilled trades, technical specialists and experienced project personnel remain in high demand throughout the Territory, placing pressure on delivery capacity.
Rising operating costs
Labour, freight and material costs continue to affect project profitability, particularly where contracts are fixed-price.
Alongside these challenges, new opportunities continue to emerge. Local participation requirements and Indigenous procurement initiatives are helping more Northern Territory businesses access defence-related work.
Funding programs and grants may also support businesses looking to invest in capability, technology and growth. At the same time, regulatory compliance remains critical. Security requirements, reporting obligations and taxation considerations must be managed effectively to maintain eligibility and support sustainable expansion.
How a business advisor can support defence sector businesses
Success in the defence sector requires more than strong technical capabilities. Businesses also need sound financial management, effective governance and the ability to scale sustainably.
At Moore, we work alongside businesses helping navigate complexity, manage risk and prepare for long-term growth.
Key areas a business advisor adds value includes:
Strategic planning and growth
- Assess readiness for defence contracting and tender opportunities
- Explore and support diversification into defence supply chains
- Develop scalable business models aligned with long-term contracts
Financial management and cash flow
- Manage cash flow pressures associated with extended payment cycles
- Model project profitability and contract pricing
- Access grants, funding opportunities and external finance
Tax and compliance
- Establish suitable structures for tax efficiency and risk management
- Navigate GST obligations across government contracts
- Identify eligibility for research and development (R&D) tax incentives
Governance and risk management
- Strengthen internal controls and compliance frameworks
- Understand contractual risk, insurance and liability exposures
- Develop succession plans and long-term business continuity strategies
Technology and reporting
- Implement job costing and project management systems
- Improve financial reporting and performance monitoring
- Streamline processes to meet defence reporting requirements
Our focus is not only on compliance. We help businesses build resilience, improve performance and position themselves for sustainable growth.
Case study: Supporting a US defence contractor entering Australia
The challenge
A US-based defence contractor was awarded a subcontract on the RAAF Base Tindal Redevelopment project near Katherine, NT.
While the contractor brought significant technical expertise, they had limited experience operating in Australia. They needed to establish compliant business structures, register for taxation obligations and quickly gain an understanding of Australia’s regulatory environment including GST obligations and ATO requirements.
The project also created new opportunities for Northern Territory businesses to participate as subcontractors and service providers.
Our approach
We worked closely with the contractor to establish an effective Australian operating structure from the outset.
Our support included:
- Entity establishment and registration
- Australian Business Number and GST registration
- Withholding tax advice
- Guidance on the interaction between Australian and US taxation requirements
- Ongoing compliance and reporting support
We also assisted subcontractors working within the supply chain to ensure they were appropriately structured and meeting their obligations.
The outcome
The contractor was able to commence operations with confidence, knowing its compliance requirements were being managed from day one.
Importantly, the project also delivered broader economic benefits to the Territory. Several local businesses secured subcontracting opportunities and expanded their involvement in the defence supply chain.
The engagement demonstrated the importance of obtaining early advice when entering the Australian market and highlighted the value of having experienced, trusted advisers who understand both local conditions and international business requirements.
Five practical tips for defence sector businesses
- Understand procurement requirements early
Defence tendering can be complex. Invest time in understanding eligibility, compliance obligations and procurement processes. - Focus on cash flow
Long payment cycles can place pressure on working capital. Strong forecasting and funding strategies help maintain business stability. - Invest in systems and reporting
Accurate, timely information supports better project management, governance and decision-making. - Build capability before pursuing growth
Ensure your workforce, systems and operational processes can support larger contracts before committing to expansion. - Act on early warning signs
Declining margins, reporting delays and compliance issues can quickly impact performance. Address problems early before they become significant risks.
How we help defence sector businesses
Our network of advisors combine local knowledge with practical experience supporting businesses operating within the defence ecosystem. We understand the realities of working in remote locations, managing project-based work and navigating government-driven procurement environments.
Our approach is practical, hands-on and focused on helping you build capability, manage risk and make the most of emerging opportunities.
As defence investment continues, particularly in the Northern Territory economy, having the right advice can help you move forward with confidence and position your business for long-term success.
