Australia will increase its defence spending to 3.0 per cent of GDP by 2033, the government announced on Thursday, as global conflicts intensify and allies press for greater military investment. The new commitment marks a significant rise from the previous forecast of 2.3 per cent and comes amid sustained pressure from the United States for Canberra to boost its defence budget as a proportion of total economic output.
Defence Minister Richard Marles said in a prepared speech that international norms constraining the use of force and military coercion are eroding, with more countries engaged in conflict today than at any time since the end of World War II. He added that this trend is occurring across every region of the world.
To meet the 3.0 per cent target, Australia will spend an additional A$53 billion ($38 billion) over the next decade compared with its 2024 defence strategy, according to Department of Defence officials. In the shorter term, spending will rise by an extra A$14 billion over four years.
The government has also revised how it calculates the defence budget to align with NATO definitions, incorporating factors such as military pensions. Key projects include accelerating the construction of a major shipbuilding yard in Western Australia to support nuclear-powered submarines under the AUKUS defence agreement with the United States and Britain. Under this deal, Washington and London will transfer nuclear submarine technology to Australia’s navy.
The move reflects growing strategic concerns in the Indo-Pacific and broader global instability, as Canberra seeks to strengthen its defence capabilities in partnership with key allies.
