The Australian National Audit Office (ANAO) has found Defence’s procurement of new Hanwha Redback Infantry Fighting Vehicles (IFVs) was only partly effective, with a more developmental acquisition approach that increased exposure to integration and schedule risk.
In a new report on the $7 billion Project Land 400 Phase 3, the ANAO said this acquisition approach reflected trade-offs between accelerated delivery timeframes, future upgrade potential and risk.
“Defence moved away from its original intent to address an identified capability gap by pursuing a platform with high technical readiness, instead progressing a more developmental acquisition approach that increased exposure to integration and schedule risk,” it said.
“These risks were not clearly communicated to government, nor consistently reflected in tender evaluation and contracting decisions.
“Defence‑mandated integration requirements and moving to design solutions that were not mature and proven in a vehicle of this nature and size have had implications for Defence’s ability to deliver the capability as planned.
The ANAO said consequently, as of February 2026 very high technical risks related to the vehicle’s mobility and lethality capabilities required resolution.
However, the ANAO did note that the tender process demonstrated broad compliance with procurement requirements. Probity controls were adequate at the project level.
Under Project Land 400/3, the Army is set to acquire 129 Hanwha Redback IFVs, derived from the Korean Army’s K21 IFV.
These will replace the Army’s Vietnam-era M113 Armoured Personnel Carriers and will be manufactured at the Hanwha Defence Australia facility in Victoria.
Originally the plan was to acquire as many as 450 vehicles worth around $27 billion, making this perhaps the largest capability acquisition project in the history of the Australian Army.
From four contenders, Defence settled on a shortlist of two, the Redback and the German Rheinmetall Lynx KF41, with comprehensive trials conducted over the 2019-2021 period . Redback was declared the winner in July 2023.
The ANAO said as of October 2025 Defence was managing two very high technical risks which, if not effectively mitigated, had the potential to materially affect the vehicle’s mobility and lethality.
“These risks arose from Defence‑mandated systems integration requirements and the use of components that were not yet mature and proven in a vehicle of the IFV’s nature,” the report said.
“The compressed delivery schedule further compounded these risks by reducing the time available to identify, test and remediate issues before key milestones.”
Unlike the K21 which powered by a Korean Doosan engine and fitted with a Korean turret with 40mm gun, the Redback is powered by a MTU diesel and the AS21 is fitted with the Redback turret, a new configuration of the MT-30 turret. Main armament is a US Bushmaster 30mm gun.
On the plus side and unlike other complex defence acquisitions, Land 400/3 remains on schedule, with Initial Operating Capability (IOC) set for 2027-28, coinciding with delivery of new landing craft and long-range fires.
In its response to the ANAO, Defence said the Redback was selected following a rigorous tender evaluation process.
Following the 2023 Defence Strategic Review (DSR), the project was accelerated to deliver the vehicles two years ahead of the original schedule.
“This required a risk-based delivery approach in partnership with Australian industry,” Defence said.
“The acquisition strategy articulated an open approach to market. Military-Off-The-Shelf options were not the agreed acquisition strategy, nor Defence policy at the time.
“Defence acknowledges the very high risks identified in the report and notes that these risks are subject to mitigation action by the project. The preferred tenderer offered the best capability to meet Defence’s requirements and the best Value for Money.”
Edited 31/03/2026, 1112: This article previously stated that the Redback IFV was fitted with the Australian-designed EOS T-2000 turret, based on a design from Israeli company Elbit. It was offered as an option for the program but not taken up. The AS21 has the Redback turret, a new configuration of the MT-30 turret.