Skills shortage biggest enemy of defence shake up

Australia's defence strategy will be overhauled to meet the needs of potential conflicts but workforce and capability gaps remain an immediate challenge.

A major review has found Australia cannot rely on its isolated location to provide enough warning about an approaching attack.  

It also highlighted the need to secure trade routes, boost energy supply and increase defence recruitment to discourage foes. 

Defence Minister Richard Marles said the government would "reshape" the armed forces to prepare Australia for any conflicts over the next three decades.

"We are trying to re-imagine an army which is more mobile and can project, and that's in the context of a set of very challenging circumstances which we see in the world today," he said on Tuesday.

"It's in that context that we are thinking about a defence force which is more able to project than we have in the past."

Mr Marles said recruitment needed to keep up with future workforce demands and more Australians would need to choose defence as their career path.

Charles Darwin University defence expert Victor Abramowicz told AAP universities and TAFE would be crucial sectors to provide training and meet upskilling requirements. 

"Complementary to the defence strategic review, the government needs to look at a substantial increase in national security focused education and training," he said. 

Dr Abramowicz said years of funding cuts had decreased the ability of tertiary institutions to attract students and researchers while placing more emphasis on signing foreign students to remain sustainable. 

"Ultimately, national security touches on almost everything including food, fuel, educational and trade security," he said.

"The review gives a whole-of-nation blueprint, but we are going to need whole-of-nation funding changes to make it real."

Australia will also take stock of its naval fleet to make sure it's ready to work alongside nuclear-powered submarines once they arrive. 

A short review of the surface fleet will be conducted later this year.

"It will be a short, sharp review to check that we've got the right structure of our surface fleet to complement the acquisition of nuclear-powered submarines," Defence Industry Minister Pat Conroy said.

"We face the greatest strategic uncertainty since World War II, we're facing the biggest regional arms build up since 1945."

The review will be led by retired US vice admiral William Hilarides, retired Australian vice admiral Stuart Mayer and former senior public servant Rosemary Huxtable.

Mr Conroy spoke with Pacific counterparts before the defence strategic review was released.

"The security of the Pacific has to be driven by Pacific nations and where there's a gap in one nation's security, the obligation is on the rest of the Pacific to step up," he said.

"The review signals further regional engagement as we step up for a safe, secure and prosperous Pacific."