Australia defence budget increase: Military capability not just dollars, government says

Lifting the federal defence budget will be based on what Australia’s military can achieve, rather an arbitrary dollar figure, a senior minister says.

Pressure has mounted on the Albanese government to lift defence spending, after NATO allies agreed to boost theirs to five per cent of GDP.

While Australia has pledged to increase its spend to 2.3 per cent by 2033/34, the US has called for a rise to 3.5 per cent.

But Home Affairs Minister Tony Burke said Australia was already lifting its spending on the military, which would also centre on the ability of the armed forces to protect the country.

“We start with the capability, we don’t start with the dollars, and that’s how we work with every financial decision that the government makes,” Mr Burke told Sky News on Sunday.

“With those capability decisions, we are already spending more than was spent before we came to office.”

Despite the push from the US, Mr Burke said Australia’s relationship with America was not at risk.

“The relationship with the United States is really important,” he said.

“We have mature, decent, respectful conversations with the United States, but as I say, the conversation doesn’t start with the dollars at our end.”

Opposition defence spokesman Angus Taylor said the instability seen around the world reinforced the need for countries like Australia to spend more on defence.

“We are seeing authoritarian regimes across the globe flexing their muscles, and open, democratic societies like ours need to stand up for what we believe in, and need to make sure we achieve peace through deterrence,” he told Sky News.

“There’s a range of things that are very clear that we need to spend on ... and there’s a whole series of areas which we’re seeing are underfunded right now.”

Before the federal election, the opposition had pledged to increase the defence budget to three per cent of GDP.

However, there was uncertainty about where the extra money would come from.

Mr Taylor said the budget for the military should be increased, regardless if there was pressure from the US.

“If a government is not in a position to keep its people safe, then it has failed as a government,” he said.

“This is a disaster for Australians and for Australia, we need to get serious about it, and I’m going to continue to hold the government to account on this, because this is a failure from our government.”