These will address system obsolescence, maintain coalition compatibility and enable these aircraft to comply with global air traffic standards.
These upgrades will be introduced through ongoing participation in the C-130J Joint User Group Global Project Arrangement.
This will enable Defence to upgrade the C-130J as part of a multi-national Block Upgrade Program with other users including the US, the UK, Denmark, Norway, Canada and Italy.
"The Block 7.0 Upgrade will enable Australia's fleet of C-130J to meet new global air traffic management requirements and continue to operate in global airspace," Senator Faulkner said.
This approval covers the design, testing and acquisition of modification kits for the C-130J Block 7.0 Upgrade.
"Importantly, there is likely to be significant opportunity for Australian industry to be involved in the national installation and support of the upgrade.
"Funding for these elements will be considered by Government following successful testing of the first modification kit on an Australian C-130J.
"This is an appropriate risk management strategy," Senator Faulkner said.