German contractor Rheinmetall is set to build the 211 light armoured vehicles at a new facility in Ipswich, west of Brisbane.
The Federal Government estimates the acquisition will create 330 jobs in Queensland, along with 170 roles in Victoria and 140 in New South Wales.
"Australian businesses will be big winners in Victoria and in Queensland, but also in other states," Defence Industry Minister Christopher Pyne said.
"And of course, most importantly, we're providing the capability the Defence Force needs to be a modern army meeting the challenges that we may face at some stage in the future."