Anthony Albanese is digging his heels in on lifting defence spending as the US heaps more pressure on its allies to increase their share.
NATO members agreed to spend five per cent of their economic output on defence and security, after calls by US President Donald Trump.
The boost has led to more pressure on Washington’s Indo-Pacific allies to do the same, with White House press secretary Karoline Leavitt saying countries such as Australia should follow suit.
“If our allies in Europe and our NATO allies can do that, I think our allies and our friends in the Asia-Pacific region can do it as well,” she said.
Analyst Andrew Carr said defence spending was a “hedge against a potential future” that could result in money being wasted or a nation harmed without the extra resources during wartime.
“Given where we are now in the kind of worsening strategic environment, including in our region, there’s probably a good reason for increasing spending faster even than it was proposed in 2023,” the ANU Strategic and Defence Studies Centre senior lecturer said.
The defence strategic review, released two years ago, found more funding will be required and must match the strategic circumstances Australia faces.
Dr Carr said Australia had made a significant investment over the past 14 years in defence that amounted to a “near doubling” of spending in real terms.
NATO nations will be expected to spend 3.5 per cent of their gross domestic product on core defence and a further 1.5 per cent on broader security.
This includes adapting infrastructure for military use and protecting energy sources.
Australia’s defence spending is set to rise from two per cent of GDP now to 2.3 per cent by 2033/34.
Appearing frustrated by repeated questions on whether Australia should increase its defence budget, the prime minster said the plan – which was taken to the federal election – will be followed through.
“What we’re doing is making sure that Australia has the capability that we need. That’s what we’re investing in,” he told reporters in Sydney on Friday.
“We’ve increased it by $57 billion over the medium term and by more than $10 billion in the short term as well.”
Spain objected to the spending pledge and flagged it did not intend to meet the five per cent target.
Mr Trump warned the European nation its exports could be slapped with fresh tariffs by the US if it did no commit to the alliance’s commitment on defence spending.
Asked if he was concerned Australia could face a similar threat from the US president, Mr Albanese played down the prospect.
“I’m not going to comment on things between Spain and the United States. What my job is is to look after Australia’s national interest, that includes our defence and security interests,” he said.
Foreign Minister Penny Wong is preparing to fly to the US for talks with US Secretary of State Marco Rubio.
The meeting with Mr Rubio will be part of discussions between the foreign ministers of Quad alliance nations, which includes Japan and India.
Quad foreign ministers previously met in January, with the alliance focusing on issues in the Indo-Pacific.
Opposition defence spokesman Angus Taylor said boosting spending levels was not about doing what the US wanted.
“This is not about being bullied,” he said.
“This is about being doing the right thing for our great country, and that’s what we want to see.”
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