Australia ramps up defence spending, sees parallels to WWII era
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Australia's Defence Minister Richard Marles said Australia will raise defence spending to 3 per cent of gross domestic product by 2033.
PHOTO: AFP
CANBERRA – Australia will raise defence spending to 3 per cent of gross domestic product (GDP) by 2033, Defence Minister Richard Marles said, including increased outlays on drones, as it responds to rising conflict globally and China’s military build-up.
The new target means the centre-left government will spend an additional A$53 billion (S$48 billion) over the next decade, with outlays increasing by A$14 billion over the next four years, according to a statement released on April 16.
To help meet the target of 3 per cent of GDP, Australia has amended its calculation of the defence budget to bring it in line with NATO’s definition, which includes defence-related expenses such as pensions. Still, the new figure falls short of the 3.5 percent of GDP sought by US Defence Secretary Pete Hegseth in 2025.
Australia had previously been on track to increase its military spending to 2.4 per cent of GDP by mid-2034.
“Australia faces its most complex and threatening strategic circumstances since the end of World War II,” Mr Marles said in a speech to the National Press Club in Canberra on April 16.
“International norms that once constrained the use of force and military coercion continue to erode.”
Australia has been reshaping its military stance since the election of the Labor government in May 2022, shifting towards an area-denial strategy.
The change in posture and expanded capability come as great power competition intensifies in the Indo-Pacific between the US and China.
“China continues to engage in the world’s largest conventional military build-up,” Mr Marles said, adding that it is doing so without the expected transparency and strategic reassurance.
“PLA deployments closer to Australia have grown in frequency and capability over the last two years, a trend that will continue,” he said, referring to the People’s Liberation Army, China’s military.
Australia aims to improve its deterrence capabilities via drones and missiles to complement a planned fleet of nuclear-powered submarines due to be delivered in the 2030s under the AUKUS deal with the US and Britain.
The 2026 National Defence Strategy released on April 16 prioritises investment into:
expanding the adoption of autonomous and uncrewed systems across land, air and sea;
fielding counter-uncrewed air systems to protect Australian sites, events and critical infrastructure; and
delivering a resilient and secure multi-orbit satellite communications system, among other things.
It draws on lessons learnt from the war in Ukraine and conflicts in the Middle East, according to a statement.
The A$53 billion increase in spending takes into account some projects that have already been announced, including the upgrade to the Henderson shipyards in Western Australia. That facility will be used to dock and maintain the Aukus nuclear-powered submarines and construct Mogami-class frigates in the future.
It also includes between A$2 billion and A$5 billion on new investments into drone technology.
The bulk of the extra spending is scheduled for the latter part of the coming decade. The increased outlays are expected to be partly funded via the sale of high-value defence real estate, as outlined by the government earlier. BLOOMBERG
