Defence Industry Insights – 12th Edition (DII12) is now live.
In February 2026, Kinexus surveyed professionals across the Australian defence industry, capturing real-time data on salary, workforce trends, contracting conditions, and employee sentiment.
This year’s data highlights a market that is stabilising but cautious. There are important implications for Defence employers, contractors, and security-cleared professionals (Baseline, NV1, NV2, TSPV).
Salary Growth Slows as Market Stability Returns
In the 12 months to February 2026, defence industry engineering and sales salaries have increased by an average of 1.3% nationally.
While this is a slightly down from the average increase of 1.8% reported in the 2025 survey and is below the wage price index growth of 3.4%, it reflects a period of stability following several years of volatility – providing a more predictable environment for both employers and workers.
Figure 1: Map of national salary growth by state
Contract Rates Stabilise Across Defence Industry
Contract rates have also largely stabilised, with 59% of respondents reporting no change. This consistency provides employers with greater predictability in workforce planning and creates a more sustainable contracting environment.
Figure 2. Chart showing respondents answers when asked, 'When offered a new contract opportunity recently, have you seen the rates offered change?'
A Workforce Watching and Waiting
Subdued business conditions are impacting overall industry confidence. Workforce confidence data shows the highest recorded proportion of respondents (25%) reporting low confidence in Defence’s ability to provide a long‑term career, reflecting uncertainty during this period of change.
Figure 3. Chart showing respondents answers when asked, 'What is your current confidence in defence industry being able to provide you with a long-term career?'
Flexibility and Benefits Continue to Grow
This graph displays a breakdown of additional benefits being received across the defence industry. Percentages represent the proportion of respondents who receive each additional benefit.
58% of respondents receive some type of additional benefit. There has been a 5% increase in respondents who receive more than the statutory number of days off, which is reflective of a move towards more flexible working.
Our data also highlights a clear preference for flexibility, with 75% of respondents prefer a hybrid working model, combining both office and working from home.
Defence Employers Turn Inward
When asked, 'Are you considering a change in employment in the near future?' 40% of respondents indicated that they are open to opportunities; this is the highest proportion ever recorded by this survey.
Whilst more professionals than ever before are monitoring the current market, fewer are willing to move without a very compelling value proposition. The focus now should be on developing current workforces, ensuring current staff are engaged and quality delivery of existing Defence contracts.
Employers that offer clear project pipelines, competitive packages, and strong employee value propositions will be best placed to attract and retain high-quality talent in this more deliberate market.
Download the Full Defence Industry Insights 12 Report
For deeper insights into defence industry jobs, salary benchmarks, workforce trends, and hiring strategies, download the full report.
FAQs
What is Defence Industry Insights (DII)?
Defence Industry Insights is an annual Kinexus report analysing workforce trends across the Australian Defence industry, including salaries, contract rates, and employee sentiment.
Are defence industry salaries increasing in Australia?
Yes, but slowly. Salaries increased by an average of 1.3% in 2026, reflecting a stabilising but competitive market.
What is happening to defence industry contract rates?
Contract rates have stabilised, with 59% of professionals reporting no change, indicating a more predictable contracting environment.
Are defence industry workers looking for new jobs?
Yes. 40% of professionals are open to new opportunities, but fewer are actively moving without strong incentives.
What do defence industry employees want in 2026?
Flexibility, hybrid work, competitive pay, and clear career pathways are the top priorities for Defence professionals.
