Australia unveils record $425b decade-long defence plan, targets 3% of GDP by 2033 on NATO terms
Australia will pour a record $425 billion into defence over the next decade under the 2026 National Defence Strategy, a plan the government says is aimed at overhauling the force to make the country more "self-reliant" amid the most "threatening strategic circumstances since the end of World War II." Defence Minister Richard Marles detailed the priorities as he handed down the strategy.
The funding surge includes an additional $14 billion over the next four years and $53 billion over the decade. The government said that, when combined with measures in the 2024 National Defence Strategy, the total additional investment rises to $30 billion over four years and $117 billion over the decade to 2035–36.
The $53 billion boost will be funded through increased government appropriations, internal "re-prioritisations" and private sector investment. Most of the new money arrives later in the decade, including $8.7 billion in 2033–34 and $9.8 billion in 2034–35.
Mr Marles said that, on this trajectory, defence spending as a share of the economy will rise to 3 per cent of GDP by 2033 under the NATO approach, and that current spending stands at 2.8 per cent on the same terms. Australia is not a member of NATO but is considered a major non-NATO ally.
Mr Marles referred to NATO’s definition of defence spending, which extends beyond military equipment to include veteran pensions and defence-related spending in intelligence and security agencies. He said the current level, measured this way, is higher than that of any comparable like‑minded country in the Indo-Pacific and exceeds most NATO members, including the United Kingdom, Germany, France, Italy and Canada.
The strategy prioritises undersea warfare capabilities, a "more lethal" navy combat fleet, expanded long-range strike, and new air and missile defences. A large share of spending is directed to maritime capabilities, building on previously announced programs for Hunter Class frigates and AUKUS nuclear-powered submarines.
The government also plans to invest $4.8 to $5.8 billion over the next decade in developing and acquiring autonomous and uncrewed undersea warfare vessels. According to the government, the staged funding profile and focus areas are intended to underpin the long-term transformation set out in the strategy.