Australia will increase its defence spending to 3.0 per cent of GDP by 2033, as announced by the government on Thursday. This decision comes in response to intensifying global conflicts and growing pressure from allies for greater military investment. The new commitment represents a significant increase from the previous forecast of 2.3 per cent. Defence Minister Richard Marles highlighted in a prepared speech that international norms limiting the use of force and military coercion are deteriorating, with more countries engaged in conflict today than at any time since the end of World War II. He noted that this trend is evident across every region of the world.
To achieve the 3.0 per cent target, Australia will allocate an additional A$53 billion ($38 billion) over the next decade compared to its 2024 defence strategy, as reported by Department of Defence officials. In the shorter term, defence spending will increase by an additional A$14 billion over the next four years. The government has also revised its method of calculating the defence budget to align with NATO definitions, which now include factors such as military pensions.
Key projects under this new commitment include the accelerated construction of a major shipbuilding yard in Western Australia, aimed at supporting nuclear-powered submarines under the AUKUS defence agreement with the United States and Britain. This agreement involves the transfer of nuclear submarine technology to Australia’s navy. The move reflects growing strategic concerns in the Indo-Pacific region and broader global instability, as Canberra seeks to enhance its defence capabilities in collaboration with key allies.
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