Australia will introduce a new armed drone into service this year, which is expected to be similar to the technology being widely used in the Ukraine war.
Defence Industry Minister Pat Conroy has confirmed work is underway on the secretive project, while unveiling a $400 million boost to a much larger unmanned aircraft program known as "Ghost Bat".
The Albanese government has confirmed a large injection of cash into the MQ-28A Ghost Bat program, which is being developed by Boeing for the Royal Australian Air Force (RAAF) as well as possible overseas buyers.
First unveiled in 2019 as the Loyal Wingman, the drone uses artificial intelligence to target enemies and is designed to protect and support traditional military assets such as the F-35 in contested environments.
Speaking in Canberra, Mr Conroy has also confirmed work is underway on a separate secretive project for a smaller armed drone, with an announcement to be made before Christmas.
Mr Conroy told reporters that the ADF had been trialling a range of uncrewed technology over recent months.
"Separately we are introducing into service an armed drone into service this year. I won't go into details of the nature of that armed drone for security reasons," he said.
"I want to assure everyone in this country that we are spending lots of time working on drones with a potential to be armed."
Inside RAAF ranks there has been some resistance from fighter pilots towards the introduction of uncrewed systems, but senior leaders insist the technology will play an increasingly important role in modern warfare.
RAAF Air Commodore Ross Bender argues a large maritime nation such as Australia with its unique geography means uncrewed systems are a critical factor for military planners.
"When you're trying to cover right across from the Indian Ocean across to the Pacific Ocean you can only have a certain number of a certain aircraft, [and] can only go a certain distance in a certain time," Air Commodore Bender told a military audience in the United States last week.
"Therefore, the ability to have uncrewed systems with degrees of autonomy that allow you to have that reach and persistence in that part of the region is really where I see the opportunities coming forward."
Addressing the Hudson Institute, Air Commodore Bender also warned that traditional piloted surveillance aircraft such as the P-8 Poseidon were increasingly expensive to operate.
"Our crewed platforms from an air perspective are becoming more and more expensive and complex and so therefore the ability to have large numbers of those is becoming harder and harder.
"Complimenting those with uncrewed systems gives us that ability to work with our crewed platforms and then work across that land mass but importantly the maritime borders around us to enable us to understand what is going on and the ability to provide response options for government."
On Friday, Defence Industry Minister Pat Conroy is expected to detail a significant further investment in the program, which is the first military combat aircraft to be designed, developed and manufactured in Australia in more than half a century.
The MQ-28A, or Ghost Bat, is a next-generation Collaborative Combat Aircraft that involves 55 Australian companies and has already received $600 million in public funding.
In March last year, the government agreed to a Defence Strategic Review recommendation to prioritise the MQ-28A program for collaborative development with the United States, meaning it can more easily share classified information with Australia's closest military ally.
Two years ago, MQ-28A conducted its first secretive test flight at Woomera, and the ABC has now obtained vision of a more recent training exercise involving the aircraft at an undisclosed location in Australia.