3 August, 2025
defence-recruitment-surge-bonuses-and-new-strategies-pay-off

Defence recruitment in Australia has experienced a significant turnaround, reaching a 15-year high as the federal government invested over $600 million in bonuses and housing subsidies aimed at retaining military personnel. This initiative comes in light of heightened geopolitical tensions, particularly with China, prompting the government to adjust enlistment standards and actively pursue new recruits. As of July 1, 2023, the number of full-time uniformed personnel across the Army, Air Force, and Navy has risen to nearly 62,000, an increase of almost 3,000 since the previous year.

Despite this success, challenges remain. During the last financial year, approximately 75,000 individuals applied to join the Australian Defence Force (ADF), yet only around 7,000 were enlisted. A significant number of potential recruits lost interest, were disqualified, or changed their minds regarding their desired roles. The recruitment surge marks a rare positive development for the Albanese government, which faces scrutiny over a $368 billion defence project that is currently under threat due to aging equipment and cost overruns.

Richard Marles, the Defence Minister, acknowledged the government’s efforts to overcome the recruitment crisis. “In 2025, the ADF is now growing again for the first time in almost four years. While there is much more work to do, we are confident these positive trends will continue,” he stated. The government aims to expand the ADF to 69,000 personnel by the early 2030s, with enlistments currently exceeding planned targets.

To meet these ambitious recruitment and retention goals, the government is investing heavily in personnel incentives. Between 2023 and 2028, approximately $570 million will be allocated for continuation bonuses, valued at $40,000 each, intended to encourage retention after four or seven years of service. As of now, 5,778 military personnel have accepted the bonus, including 2,306 individuals who were uncertain about remaining in the service.

The government has also initiated changes to enhance the “value proposition” for servicemen and women. This includes expanding the Defence Home Ownership scheme, which provides assistance for housing purchases earlier in military careers, and trialing earlier eligibility for rent assistance. Budget papers reveal an additional $88 million will be spent on defence housing over the next three years.

The recruitment reforms have contributed to a decline in the separation rate—the percentage of personnel leaving the Defence Force—dropping from 11.2 percent in 2021-22 to 7.9 percent, the lowest rate in a decade. This reduction is notable in a tight labour market where ex-military personnel with skills can typically find employment easily.

In a bid to attract younger candidates, Defence has shifted its advertising strategy, spending just over $63 million on marketing campaigns last year. The focus has increasingly moved towards digital advertising, social media, and in-game ads. Notably, Defence launched its first video advertisement on TikTok, showcasing life as a submariner, which garnered 840,000 views—setting a record for social media engagement.

Relaxation of recruitment standards has also played a crucial role. Conditions like acne, which previously disqualified candidates, are no longer barriers to enlistment. Matthew Keogh, the Defence Personnel Minister, highlighted the need for eligibility requirements to reflect the diverse range of roles within the Defence Force, stating, “Clearly that’s stupid in the 21st century.” He added that less stringent requirements are necessary for positions such as cyber operations, which do not involve deployment outside of Australia.

The results of these efforts have been promising, with 7,059 individuals joining the permanent ADF and the Gap Year Program in 2024-25, representing the best outcome in 15 years and a 17 percent increase from the previous year. Nonetheless, the conversion rate remains concerning, as less than 10 percent of applicants are successfully enlisted, despite the highest number of applications in five years.

As the Albanese government continues to address the challenges of recruitment and retention, the focus remains on ensuring that the ADF can meet the demands of a rapidly changing global landscape.