The successful testing of a new anti-ship missile is being hailed as an important step forward but there are warnings not to overstate the Australian Navy's capability because of it.
The HMAS Sydney fired the new naval strike missile for the first time during the RIMPAC training drill hosted by the United States off the coast of Hawaii, sinking the decommissioned USS Tarawa.
The missile is the replacement for the ageing Harpoon weapon system on Australian destroyers and is part of a $1 billion package.
It was a good example of defence being able to quickly integrate new capabilities, with the decision to buy the equipment made just two years ago, navy and security expert Jennifer Parker said.
"The missile is a good step forward, it's a greatly enhanced missile, its range is slightly greater but really, the strength of the missile is it's harder to intercept," she told AAP.
"It's a much harder missile to be shot down by another ship."
But Ms Parker also noted the missile was a short-to-medium range as the government stresses the importance of long-range firepower after a landmark military review.
Long-range strikes were to cover distances of some 1000 to 1500km, she said.
"It addresses a gap by an ageing missile but we need to be careful not to overstate capability and to invest in long-range missiles," she said.
"For example, it'll be positive to see the Tomahawk missiles integrated into Hobart class destroyers in coming years - that will be a step forward in long range strike."
Defence Industry Minister Pat Conroy described the missile fitted onto the guided destroyer to boost air defence and maritime protection of accompanying vessels and land forces as a major milestone.
"They will be equipping our three air warfare destroyers, our Anzac class frigates and our Hunter class anti-submarine frigates when they come online, so they'll be the main ship killing missile in our inventory," he told reporters in Canberra.
More than $1.3 billion will also be spent on more than 200 Tomahawk land attack cruise missiles, Mr Conroy said.
"This is all about giving us a modern Navy capable of deterring aggression in our region," he said.
Exercises such as RIMPAC were important theatres to test new missiles, he added.
It's not often that you get to fire a missile at an actual target," he said.
"We obviously won't go into too much detail but my advice from the navy was it was a very successful test firing and it gives us one of the most advanced anti-ship missiles in the world."