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As the focus turns towards combatting security threats in the Indo-Pacific region, the Federal government will dedicate between $14 billion and $18 billion in "hardening and developing" defense bases in the Northern Territory, Defense Industry Minister Pat Conroy said on Wednesday.

Speaking at a defense industry convention in Darwin, Conroy said the funds will be used to upgrade the Larrakeyah Defence Precinct to berth submarines, install surveillance aircraft based at RAAF Tindal, near Katherine, and purchase and train crew for the new amphibious landing craft, reported.

"The NT is critical to the defense of the nation, not just in defending Australia but projecting power out into our region against any potential adversary," Conroy said, adding that the nuclear submarine fleet would not, however, be based in the Top End. The upgrade in defence infrastructure will also include bases in northern Western Australia and North Queensland.

For years, federal governments have been promising economic packages including increasing investments in defence for the northern territory, where defence account for 7.5 per cent of the economy.

A major share of the $18 billion would be flowing into the NT and have contracts with local companies, which is expected to create more jobs locally. "As we move more equipment up here you will see more work being done up here on the defence industry," Conroy said. "That will all contribute to the economy, as well as increasing the safety of Australia."

In April, Defense Minister Richard Marles had announced $50 billion on defense spending over the next decade and re-prioritising $72.8 billion in planned spending.

A defence force review published last year recommended immediate defence upgrades in northern Australia, advocating for the acquisition of missiles and long-range capabilities to counter distant threats.