3 May 2012

Australian govt cuts into defence spending

9:58 pm on 3 May 2012

The Australian government says some major defence projects will be delayed or scrapped, saving the budget billions of dollars over previous estimates.

Defence minister Stephen Smith says some projects have been delayed because of technological challenges, while others have been pushed lower on the list of priorities.

He says the government has decided to scrap plans for self-propelled artillery, saving nearly $250 million.

Mr Smith also says there will be delays to the delivery of its F-35 Joint Strike Fighter jets.