The Australian Navy has successfully tested its new Naval Strike Missile (NSM) in a "major milestone" for the nation's military capabilities, according to a statement. 

Acquired from Norwegian company Kongsberg, the NSM is the Navy's replacement for their aging Harpoon weapon system.

It promises a "significant increase in the lethality" of Australia's fleet, Australian navy chief Vice Admiral Mark Hammond said. 

The NSM test firing was conducted at the Rim of the Pacific (RIMPAC) exercise which closed on July 15 this year, hosted by the United States Navy off the coast of Hawaii.

"HMAS Sydney's firing of Naval Strike Missile during RIMPAC 2024 represents a significant increase in the lethality of our surface fleet, and delivers on our commitment to accelerate the introduction of enhanced lethality strike capabilities," Vice Admiral Hammond said. 

Defence Industry Minister Pat Conroy said the event was an "excellent example of Defence, our international partners and Australian industry working together to accelerate the delivery of new capability to promote regional stability."

During the exercise, the Hobart class destroyer HMAS Sydney simulated the sinking of the Ex-USS Tarawa LHA1 ship.

HMAS Sydney—built at Osborne in South Australia—is a guided missile destroyer that can provide air defence and maritime protection for accompanying ships, land forces and infrastructure in coastal areas.

The combination of air and maritime capabilities is called "multi-domain strike" — a strategy the Australian Defence Force (ADF) has began using recently. 

"Naval Strike Missile is a key capability for the lethality enhancement and survivability of our ships and enables our ability to hold an adversary at risk at greater range," Vice Admiral Hammond said. 

"Multi-domain strike capabilities including Naval Strike Missile are foundational to deterring any potential adversary's attempts to project power against Australia." 

While the Navy has not confirmed the NSM's range, weapons manufacturer Raytheon advertises its range at 185.2 kilometres — up from the 124-kilometre range of the old Harpoon system.

Over $1 billion spent on NSM contract

Mr Conroy spoke to the ABC last year about purchasing the NSM.

"It's been a very important day for enhancing the ADF, responding to the strategic uncertainty that we face, and really demonstrating the Albanese Government's commitment to enhancing the national security of Australia," he said at the time.

He said the ADF couldn't confirm exactly how much they spent on the contract because the nation's adversaries could use the number to calculate how many missiles were acquired. 

He estimated between one and two billion dollars were spent on the contract, which also included a HIMARS rocket system.

He said the ADF was "inspired" to make the purchase after seeing the weapons used in the Russia-Ukraine War.

"We've seen mobile rocket systems being very effective in defending Ukraine."

The HIMARS system, which boasts a 499-kilometre range, was tested in July last year.