Australia's approach to defence projects will be overhauled to curb overblown budgets and major delays.
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At least 28 major defence projects are a cumulative century behind schedule and 18 are over budget.
The troubled projects include battlefield air lifters, patrol boats, the battlefield command system, a series of satellite communications projects and the P-8A Poseidon aircraft.
It further includes the Hunter class frigates, which are four years behind schedule and costing $15 billion more than anticipated.
At least $6.5 billion of project variations outside of the budget have also been identified.
Defence Minister Richard Marles said it would be challenging to rein in project blowouts, with defence spending placing significant strain on the budget.
Mr Marles told reporters the government would accept responsibly and not blame the defence department.
"I want to be clear on one point - this is not the fault of the Department of Defence, this is not the fault of Australian defence industry," he said.
The minister added a culture shift away from political spin and towards better project oversight would also be employed.
"We are really confident that we are putting in place a much better situation led by an activist ministry," he said.
"We're really confident that with a change of culture, where our focus is not on press releases ... but on the outcome of projects, that sends a message right from the top."
Mr Marles also attributed the troubled defence project pipeline on exchange rates and indexation.
Opposition leader and former defence minister Peter Dutton hit back, attacking Labor for reducing defence spending when the party was last in power.
"It's just comical, we put more money into defence than they ever did," he told reporters in Bundaberg.
"Labor is trying to create a distraction. They just don't have a feather to fly with here."
To fix the spending issues, the government has committed to a higher level of ministerial oversight.
This includes setting up an independent projects and portfolio management office within Defence.
Monthly reports on projects of concern and interest will also be handed to the defence minister directly.
The government will allocate extra resources to troubled projects to help get them off the ground.
When asked if the government would scrap the troubled French Taipan army helicopters in favour of the US Black Hawk, Mr Marles said he would not comment before the finalisation of a review under way.
The government has pledged to maintain its commitment to spending at least two per cent of GDP on defence, with expenditure set to increase to more than $80 billion by 2032.
DEFENCE PROJECTS DELAYED OR OVER BUDGET
* $44 billion Hunter Class Frigate program - construction delayed by four years and a $15 billion increase in expected costs.
* $1.4 billion C-27J Spartan Battlefield Airlifters - delivered four and a half years behind schedule and are unable to fly into battlefields.
* $3.7 billion Offshore Patrol Vessel project - running one year behind schedule.
* $356 million Evolved Cape Class patrol boats - running nearly a year late.
* $970 million Battlefield Command System - three years behind schedule.
* Several Defence Satellite Communications projects worth $906 million - running between two and four years behind schedule.
Australian Associated Press
