Australia would raise defense spending to 3 percent of GDP by 2033 as armed conflicts flare worldwide, Australian Minister for Defence Richard Marles said yesterday.
“International norms that once constrained the use of force and military coercion continue to erode,” Marles said in a speech in Canberra, outlining a boost to spending on missile defense, drones and guided weapon stockpiles.
“More countries are engaged in conflict today than at any time since the end of World War II and this is occurring across every region of the world,” he said.
Photo: AFP
Australia’s defense spending had previously been forecast to rise to 2.3 percent of GDP by 2033.
However, the country plans to spend an additional A$53 billion (US$38 billion) over the next decade compared with its 2024 defense strategy, Marles said.
In the shorter term, spending would climb by an extra A$14 billion over four years, he added.
To reach the 3 percent figure, Australia changed how it calculates the defense budget to match a NATO definition that includes factors such as military pensions and defense intelligence.
Marles said that allows better comparisons with other countries, and put Australia ahead of comparable European and Asian nations with a defense spend this year of 2.8 percent.
The new spending still falls short of the 3.5 percent of GDP that US Secretary of Defense Pete Hegseth urged Australia to reach last year.
Wary of China’s navy buildup, Australia has reshaped its defense force to focus on its missile strike capability and deterring an adversary from its northern approaches.
It has also embarked on its largest-ever military spending project to build nuclear-powered submarines under the AUKUS agreement with the US and the UK.
Marles said that Australia this year would focus on building greater military self-reliance, but was not jettisoning its US security alliance, which he said remained “fundamental.”
“There is no effective balance of power in the Indo-Pacific absent the continued presence of the United States,” he said.
Spending to build a missile defense system would accelerate — up to A$30 billion over the next decade, Marles added.
Another A$36 billion would be spent to build guided missiles locally, he added.
Australia’s vast coastline and small population have also spurred a focus on developing large autonomous submarines and fighter jets, dubbed the Ghost Shark and Ghost Bat.
This week, Canberra said it would boost spending on drones by up to A$5 billion in response to shifts in warfare tactics in the Middle East and Ukraine.
Under the AUKUS agreement, the US is to sell Australia two nuclear-powered submarines from 2032.
Australia and Britain are to build a new class of submarine in the 2040s.
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