US asks Australia to raise defence spending to 3.5% of GDP

Prime Minister Anthony Albanese emphasizes that Australia will decide its defence priorities independently

Australia’s prime minister said Monday that the government will first determine its defence capability needs before announcing any changes to defence spending, responding to a U.S. call for a higher budget.

U.S. Defence Secretary Pete Hegseth recently urged Australia to increase its defence spending to 3.5% of gross domestic product as soon as possible. Prime Minister Anthony Albanese emphasized that Australia will decide its defence priorities independently and noted that his government has already committed to accelerating A$10 billion in defence spending over the next four years.

“We’re continuing to lift up,” Albanese said, pointing to a 2.3% GDP spending goal set for 2033. The discussion came during a meeting between Hegseth and Australian Defence Minister Richard Marles last Friday, where they also talked about boosting U.S. defence capabilities in Australia and enhancing industrial cooperation.

Albanese, re-elected in May, has yet to meet with U.S. President Donald Trump and did not mention defence spending in this year’s national budget, saying a A$50 billion increase over a decade had already been announced.

Experts note Albanese wants any defence budget increase to be viewed as a sovereign decision, especially ahead of his anticipated meeting with Trump, where trade issues are also expected to be discussed.

Historically, Australia’s defence spending was around 3% of GDP in 1987 but fell to about 2% of GDP by 2025. Analysts say increasing the budget is necessary for Australia to maintain self-reliance amid regional threats, particularly from China.

Australia has pledged A$368 billion over 30 years under the AUKUS partnership to acquire and build nuclear-powered submarines, while also expanding missile acquisition and production.

Monitoring Desk
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