The Australian government is set to increase its defence budget by an additional $70 billion over the next decade, marking the largest peacetime expansion in the nation’s history. Deputy Prime Minister Richard Marles, who also serves as the Defence Minister, confirmed the increase, emphasizing the strategic necessity of bolstering Australia’s military capabilities.
Marles addressed the media regarding the Trump administration’s past demands for allied nations, including Australia, to increase defence spending as a percentage of GDP. He clarified that the Australian government does not strictly adhere to GDP percentage targets, as these figures can fluctuate based on various accounting methods. According to NATO’s accounting standards, Australia’s defence spending currently stands at 2.8% of GDP.
“The important point is this: when you include what we are spending here, it is the better part, relative to what we inherited when we came to government back in 2022, of an additional $70 billion of defence spending over the decade,” Marles stated. “This represents the biggest peacetime increase in our defence spending in Australia’s history.”
Strategic Defence Investments
The announcement comes as Australia prepares to invest $12 billion in a new defence precinct aimed at enhancing its naval shipbuilding and submarine capabilities. This investment, part of the broader $70 billion package, will be directed towards developing a maritime hub on Cockburn Sound in Perth, Western Australia. Prime Minister Anthony Albanese, along with Marles and other officials, are set to unveil this initiative, which is expected to create 10,000 jobs over the next two decades.
The precinct is designed to support continuous shipbuilding and reinforce Australia’s capabilities under the AUKUS security pact with the United States and the United Kingdom. The AUKUS agreement, which includes the acquisition of nuclear-powered submarines, has been a focal point of Australia’s defence strategy.
International Relations and Defence Agreements
Meanwhile, Australia is on the verge of signing a significant defence agreement with Papua New Guinea (PNG). This treaty, coinciding with PNG’s 50th anniversary of independence, aims to strengthen military cooperation between the two nations. Marles expressed enthusiasm about the agreement, highlighting the increased joint exercises and operations that will enhance regional security.
“This is a really important statement from Papua New Guinea and indeed from Australia, to each other,” Marles noted. “It really matters that we have the very best relationship that we can have with PNG in a security sense.”
The agreement reflects Australia’s strategic pivot towards enhancing security ties with its northern neighbor amid growing geopolitical tensions, particularly with China. However, Marles refrained from discussing specific details about potential restrictions on PNG’s dealings with China.
Domestic Reactions and Political Implications
The substantial increase in defence spending has sparked varied reactions domestically. Shadow Health Minister Anne Ruston welcomed the investment in shipbuilding, acknowledging it as a long-awaited development. However, the opposition remains critical of the government’s broader strategic priorities and fiscal management.
Additionally, the announcement comes at a time when the Australian government is navigating complex international relations, particularly with the United States. Marles expressed confidence that the Trump administration, despite its ongoing review of the AUKUS pact, will continue to support the agreement. The review is seen as an opportunity to optimize the partnership between the allied nations.
“I’ve had numerous conversations with American counterparts, really, since the inauguration of the Trump administration, where there’s been really positive statements made about AUKUS,” Marles said, reinforcing his confidence in the pact’s future.
Looking Ahead
As Australia embarks on this historic expansion of its defence capabilities, the government faces the challenge of balancing domestic priorities with international obligations. The strategic investments in naval infrastructure and regional alliances underscore Australia’s commitment to maintaining a robust defence posture in an increasingly complex global landscape.
The coming months will be crucial as Australia finalizes its defence agreements and continues to engage with international partners. The government’s ability to effectively manage these relationships will be pivotal in ensuring the success of its ambitious defence agenda.
