The Australian government announced plans to increase defence spending by $53 billion over the next decade, marking one of the largest peacetime boosts to the country’s military budget. Defence Minister Richard Marles outlined the new 10-year defence spending plan and national defence strategy in a speech on Thursday, detailing a $14 billion budget increase over the next four years as part of a broader effort to strengthen Australia’s defence capabilities amid a shifting strategic landscape.

The enhanced funding aims to grow defence expenditure to three percent of gross domestic product (GDP) by 2033, up from the current forecast of 2.33 percent. This move comes as Australia grapples with growing uncertainty in the Indo-Pacific region, particularly given the United States’ military redeployment to the Middle East and rising tensions among major powers. According to Marles, the government is responding to a “more dangerous and uncertain world” by accelerating its defence preparedness and self-reliance.

Marles described the forthcoming defence strategy as a reflection of recent changes in regional security dynamics, citing intensified competition between major powers, rapid militarization without clear transparency, and the erosion of international norms against territorial conquest. These developments, he said, have invalidated previously held assumptions about Australia’s geographic security advantages and regional military superiority.

The new strategy prioritizes strengthening Australia’s industrial base and national defence infrastructure while reaffirming commitments to trusted alliances and partnerships across the region and globally. Approximately half of the additional funding—bringing total defence spending to $887 billion by 2035-36—is expected to be allocated toward specific capability enhancements, which may include at least $2 billion dedicated to drone technology.

In addition to increased funding, the government emphasized that improving the efficiency of defence spending is a central goal. Marles stated that the government seeks to ensure every dollar invested in defence delivers tangible improvements in capability and readiness.

While some defence experts and international partners, including representatives from the Trump administration in the United States, have called for an even larger increase—up to 3.5 percent of GDP—the government has committed to reaching the three percent target through a combination of higher appropriations and private sector investment.

This strategic shift underscores Australia’s intent to bolster its defence posture at a time when the country faces a rapidly evolving security environment characterized by heightened military competition and uncertainties in the Indo-Pacific region.