The Albanese government says it will set up an “early warning” system for military projects running late and over budget.

With the upcoming federal budget, defence spending is expected to surge beyond the March projections of $80 billion a year by 2032, or 2.2 per cent of GDP.

However, official stats suggest at least 28 major defence projects are now running late, with a cumulative 97 years delay between them.

High-value military projects facing schedule delays include the Arafura-class offshore patrol vessel (OPV), Hunter Class Frigates, Battlefield Airlifters, Evolved Cape Class Patrol Boats, P-8A Poseidon aircraft, the Battlefield Command System and a series of Defence Satellite Communications projects.

The federal Defence Minister, Treasurer and Defence Industry Minister are working on changes to strengthen the Defence Projects of Concern process by establishing an independent projects and portfolio management office within Defence.

The Albanese government blames its Coalition predecessors for the problem, arguing the former government boasted about increasing defence spending while allowing the cost and timing of crucial projects to spiral out of control.

The opposition points out that defence spending dropped to its lowest amount in GDP terms since 1938 during the Rudd-Gillard years.

The government says it will create an independent projects and portfolio management office within the Department of Defence to provide more oversight of major spending initiatives.

New processes and “early warning” criteria will be created for projects on the official Projects of Concern and Projects of Interest lists, and Defence will be required to deliver monthly reports on projects to the relevant ministers.