The Australian federal government has proposed that the ADF lease assets from private investors and streamline project management in an attempt to cut back on the defence expenditure.

The contracting overhaul of the $100-billion budget for defence facilities, equipment and maintenance would result in the private sector taking on a greater share of the risk on major projects.

Under the new plan, defence assets would be sold to private investors and then leased back from the same private investors.

In addition, paperwork to do with contracting would be reduced and specification changes would be limited once projects had been agreed.

The Parliamentary Secretary for Defence Procurement, Greg Combet, has told The Australian Financial Review if these changes were made, defence could lift its game on the 10-year, $100-billion budget to equip and sustain Australia's military.