Australia has announced a historic expansion of its defense budget, pledging an additional 53 billion Australian dollars ($38.1 billion) over the next decade under its newly released 2026 National Defense Strategy (NDS). The plan aims to elevate military spending to 3% of GDP by 2033 using NATO’s broader calculation methodology, which includes ancillary costs such as military pensions.
Defense Minister and Deputy Prime Minister Richard Marles described the initiative as the "biggest peacetime increase" in the nation’s history during a Thursday address at Canberra’s National Press Club. The strategy allocates 14 billion Australian dollars ($10.1 billion) in additional funding over the next four years compared to the 2024 plan, with a focus on accelerating defense capabilities through private-sector partnerships and industrial upgrades.
Current defense spending stands at 2% of GDP under a narrower accounting framework. The updated NDS reflects heightened concerns over regional security, with Marles citing the erosion of "international norms" and the most complex strategic environment since World War II as driving factors. Key investments include 12 billion Australian dollars ($8.6 billion) for shipyard modernization to support nuclear-powered submarine maintenance and up to 5 billion Australian dollars ($3.6 billion) for advanced drone technology.
"This plan strengthens Australia’s defense self-reliance while deepening ties with trusted regional and global partners," Marles stated, emphasizing the strategy’s dual focus on industrial capacity and geopolitical collaboration.
