The Government will spend an additional $53 billion on defence in the next decade.
Defence Minister Richard Marles said the National Defence Strategy 2026 (NDS26) “places an emphasis on increased self-reliance.”
In this year’s Budget, defence spending will account for 2.8% of Australia’s gross domestic product (GDP).
Shadow Defence Minister James Paterson said the government is using “accounting tricks” to promote the strategy.
What’s in it?
Background
The National Defence Strategy was first launched in 2024. It informs military reforms and expenditure.
The peak of Australia’s defence spending was during World War II, when it accounted for almost 35% of GDP (the value of goods and services produced in a country).
Defence spending has sat at around 2% since the Vietnam War.
New strategy
Marles announced the NDS26 at the National Press Club. Australia will increase defence spending to:
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- Improve the country’s ability to defend itself;
- Strengthen global partnerships, including through AUKUS, and with South East Asian and Pacific nations;
- Invest in military assets and equipment, including ships, planes, missiles, and submarines.
Defence expenditure as a proportion of GDP will increase to 2.8% in 2026-27, then to 3% by 2033.
This will put Australia ahead of NATO members, including the UK and France.
Opposition
Shadow Defence Minister James Paterson said the Government is “using an entirely new measure of Australia’s defence spending as a proportion of GDP”.
He called the inclusion of “things like military pensions towards our defence expenditure” an “accounting trick”.
Paterson also claimed a new Government plan to re-form the Defence Force includes “$5 billion of secret cuts” to defence capabilities.
“Accounting tricks do not make our country safer, and changing the rules about how we measure defence spending is pulling the wool over the eyes of the Australian people," Shadow Defence Minister James Paterson said, addressing the new strategy.
