Australia to raise defence spending to 3% of GDP by 2033

Australia has announced plans to increase its defence spending to 3.0% of GDP by 2033, citing rising global instability and escalating armed conflicts worldwide.

The government said the decision follows growing international pressure, including from the administration of US President Donald Trump, for allies to expand military expenditure, Caliber.Az reports via foreign media. 

“International norms that once constrained the use of force and military coercion continue to erode,” Defence Minister Richard Marles said in a prepared speech seen by AFP. “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.”

Previously, Australia had forecast defence spending reaching 2.3% of GDP by 2033. The revised plan will add an estimated Aus$53 billion (US$38 billion) in defence spending over the next decade compared with the 2024 defence strategy, according to the Department of Defence. In the short term, spending is expected to rise by an additional Aus$14 billion over four years.

Officials said the updated calculation aligns Australia’s defence budget with NATO methodology, which includes broader categories such as military pensions.

The new target still falls short of the 3.5% of GDP level previously urged by US Defence Secretary Pete Hegseth.

Australia, a key US ally, has been expanding its defence posture in response to China’s growing military presence in the Indo-Pacific, focusing on long-range strike capabilities and northern defence approaches.

Major initiatives include accelerating construction of a shipbuilding facility in Western Australia to support nuclear-powered submarines under the AUKUS agreement with the United States and the United Kingdom. The pact is expected to transfer nuclear submarine capability to Australia’s navy within the next 15 years.

However, critics have raised concerns over delays and uncertainty in delivery timelines under the programme.

Australia has also increased investment in autonomous military systems, including “Ghost Bat” drones and “Ghost Shark” unmanned submarines, reflecting shifts in modern warfare observed in conflicts in Ukraine and the Middle East. Canberra recently announced an additional Aus$5 billion investment in drone capabilities.

By Sabina Mammadli