PM pushes back at US pressure on defence spending
Australia will fund the defence capability it needs, Prime Minister Anthony Albanese says, as the United States pushes for spending to increase by tens of billions of dollars.
The request was made directly by US Defence Secretary Pete Hegseth to Deputy Prime Minister Richard Marles on the sidelines of the Shangri-La Dialogue in Singapore at the weekend.
“On defence spending, Secretary Hegseth conveyed that Australia should increase its defence spending to 3.5 per cent of its GDP as soon as possible,” a Pentagon statement said.
This would require the federal government to pour tens of billions of extra dollars into the defence budget.
Defence spending, currently 2 per cent of gross domestic product, is on track to rise to about 2.3 per cent by 2033/34.
The 3.5 per cent figure is more than what was previously nominated by the principal adviser to the US defence secretary.
Albanese said while the US had asked for a “range of things”, the government would determine defence spending.
“What you should do in defence is decide what you need, your capability, and then provide for it,” he said in South Australia on Monday.
“What we need is things that defend us in real terms, and that’s what we’ll provide.”
The US is pushing its allies in the Indo-Pacific to increase defence spending to help share the burden of deterrence.
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After meeting Hegseth, Marles admitted his US counterpart had relayed Australia should increase its defence spending, but did not say by exactly how much.
On Friday he said Australia was willing to have that conversation.
But on Sunday, Albanese said his government would decide the nation’s defence policy.
Hegseth told the Asian security summit at the weekend that the threat posed by China was real and could be imminent.
