Australian news and politics recap: Chalmers reveals first batch of economic reform invitees

Opposition defence spokesman Angus Taylor has reiterated the Coalition’s push for defence spending to rise to “at least” 3 per cent of GDP, warning that Australia must respond as authoritarian regimes such as Russia and Iran become more assertive.

The call comes as Labor considers lifting defence funding above its current level of around 2 per cent of GDP, though its long-term projections only reach 2.3 per cent within the next decade.

Mr Taylor stressed the importance of greater investment in defence:“It’s essential Australia be in a position to stand on its own two feet alongside our allies like the United States and the UK, and that does mean we have to spend more on defence,” he told ABC News Breakfast.

When questioned about whether a future Coalition government would seek to match NATO’s new 5 per cent target, Mr Taylor said the immediate focus should be on fully funding the capabilities outlined in Labor’s Defence Strategic Review.

“Labor has not funded that appropriately and it needs to be funded. We do need 3 per cent of GDP to fund our own plan and that’s got to be the first port of call.”

Health Minister Mark Butler has been grilled about whether Australia can meet defence targets as the US pushes allies, including Australia, to dramatically increase spending.

The pressure comes after the White House avoided confirming whether Australia and other Asia-Pacific allies could face tariff increases if they fail to meet Donald Trump’s defence spending demands, echoing the US President’s broader push for higher military contributions globally.

Australia has so far pushed back against Trump’s demand for a 3.5 per cent commitment, currently considering only a modest rise to 2.33 per cent by 2033.

When pressed on whether Australia would reach the US’s 3.5 per cent target, Mr Butler told Sunrise: “We are lifting it right now. The biggest expansion in peacetime history for Australia... It’s many, many billions in capabilities in our naval capability, new long-range missiles. Our economy grows much faster than the European economy. A percentage of a growing economy is adding tens of billions of dollars to our already significant capability.”

Pressed repeatedly on the prospect of US tariffs or further pressure from Washington, Mr Butler remained cautious: “We will cross that bridge when we come to it. As I said, we’ve got a very constructive discussion going with the Americans. The Americans understand the significant additional investment we’ve already committed to, as I said, in peacetime history.”