US calls on Australia to boost defence spending to 3.5% of GDP
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US Defence Secretary Pete Hegseth delivering remarks at the annual National Memorial Day Observance in Arlington, Virginia, US.
PHOTO: REUTERS
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WASHINGTON – US Defence Secretary Pete Hegseth has asked Australia to dramatically raise its military spending to 3.5 per cent of gross domestic product (GDP) “as soon as possible”, according to an official read-out of his meeting with Australian Defence Minister Richard Marles.
Mr Hegseth met Mr Marles on the sidelines of the Shangri-La Dialogue in Singapore on May 30, after which the Australian minister acknowledged the Secretary had requested that Canberra increase its outlays “in a very respectful and dignified way”.
While Mr Marles, who is also Australia’s deputy prime minister, would not say how much Mr Hegseth had sought, a US government read-out on June 1 clarified the issue.
“On defence spending, Secretary Hegseth conveyed that Australia should increase its defence spending to 3.5 per cent of its GDP as soon as possible,” according to the statement.
Australia is on track to increase its military spending to 2.4 per cent of GDP by mid-2034, from a touch over 2 per cent now, a sizeable boost but below the levels US President Donald Trump has requested from America’s allies.
Speaking at the Shangri-La Dialogue, Mr Hegseth floated the possibility of even higher spending requests, up to 5 per cent of GDP.
Any additional increases in defence spending by Australia would require the government to find new sources of revenue to finance such an expansion.
Prime Minister Anthony Albanese said on June 1 that Australia would determine its own levels of military expenditure, pointing out the government had invested “an additional A$10 billion (S$8.33 billion) in defence”.
He told reporters that his government will “continue to provide for investing in our capability, but also investing in our relationships in the region”. BLOOMBERG
