The funding package aims to create a high-tech defence hub at Macquarie Park in North Ryde, and provide $25 million to secure new defence projects under the Major Investment Attraction Scheme, generating 1,500 new jobs.
The spending plan is part of the State Government's NSW Defence Industry Strategy to secure 30 per cent of in-country defence spending within 10 years.
Premier Kristina Keneally joined Treasurer Eric Roozendaal, (now resigned) Minister for State and Regional Development Ian Macdonald and Federal Minister for Defence Materiel and Science Greg Combet, on the HMAS Kanimbla at Garden Island to launch the strategy.
A $50 million parcel of government land in Macquarie Park has been identified to enable the development of a defence technology hub, Macdonald said.
"This land can be used to attract business investment by companies working in areas such as defence systems, electronics and other related advanced technologies," Macdonald said.
The Macquarie Park/North Ryde area is already home to Raytheon and BAE Systems and is the ideal location for the development of a defence technology business hub, Macdonald said.