It was formed by the merger of British Aerospace Australia and GEC-Marconi Systems and expanded by the acquisitions of Armor Holdings in 2007 and Tenix Defence in June 2008.

British Aerospace Australia doubled in size in April 1996 with the purchase of AWA Defence Industries (AWADI).

BAE Systems Australia expanded with its parent company's acquisition of Armor Holdings in 2007 and doubled in size with the purchase of Tenix Defence in June 2008.

On 22 October 2008, BAE Systems was selected to continue with the Royal Australian Navy's Guided Missile Frigate Maintenance Contract (FFG IMS).

[6] However, on 29 June 2009, the work allocated to NQEA was transferred to BAE Systems Australia due to the former being unable to meet its financial obligations to the project.