The proposal would reduce the overall defence expenditure through the following components:

Component 1: The level of funding for the Net Approved Program - Military Equipment Acquisition would be reduced such that the level of overprogramming returns to 36%.

Component 2: Funding would be reduced by amounts equivalent to the contracted and uncontracted funding for procurement and sustainment associated with:

• Hunter Class Frigate Design and Construction
• Land Combat Vehicle System - Redback Infantry Fighting Vehicle (IFV)
• New Air Combat Capability F-35A Lightning II Joint Strike Fighter (JSF)
• Multi Role Helicopter Rapid Replacement project - UH-60M BlackHawk
• H135 Juno
• Offshore Patrol Vessel - Arafura Class OPV
• Heavy Armoured Capability: Main Battle Tank Upgrade / Combat Engineering Vehicles
• MQ-4C Triton High-altitude, long-endurance (HALE) remotely piloted aircraft system
• Collins Class Communications and Electronic Warfare Improvement program
• Multi-Role Helicopter: MRH90 Taipan
• Collins Class Submarine, including the Phase 1 Collins Life of Type Extensions (SEA 1450)
• Airborne Early Warning and Control System - AEWC
• P-8A Poseidon Maritime Patrol and Response
• Multi-Role Helicopter - TLH MRH90
• Special Purpose Aircraft 

Component 3: An annual 1% efficiency dividend would be applied to the remaining expenditure within the Defence portfolio.

Any transitional costs or break-contract costs would be met from within the Department of Defence’s existing resources.

The proposal would take effect from 1 July 2025.