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Wednesday, Jun 04, 2025

United States Pressures Australia to Raise Defence Spending to 3.5% of GDP

United States Pressures Australia to Raise Defence Spending to 3.5% of GDP

US Defense Secretary Pete Hegseth calls for immediate increase in Australia’s military expenditure amidst regional security concerns.
US Defense Secretary Pete Hegseth has urged Australia to elevate its defence spending to 3.5 percent of its gross domestic product (GDP) 'as soon as possible'.

This request was communicated to Australian Defence Minister Richard Marles on the sidelines of the Shangri-La Dialogue held in Singapore.

Currently, Australia’s defence spending is approximately 2.02 percent of its GDP, with projections indicating it will rise to 2.33 percent by the fiscal year 2033-34.

The US Department of Defense stated that discussions between Hegseth and Marles also focused on aligning defence investments with the evolving security dynamics in the Indo-Pacific region, enhancing US military presence in Australia, and fortifying industrial cooperation to ensure supply chain resilience.

In response to the US request, Shadow Finance Minister James Paterson endorsed the call for increased defence spending but emphasized that it should be driven by Australia's national interests rather than external pressures.

Paterson stated that the current level of spending does not adequately address the strategic threats facing Australia.

Meanwhile, Minister Marles confirmed that Australia has committed to an additional $10 billion in defence spending over the next four years as part of its strategy to enhance national security capabilities.

He also pointed out that transparency regarding China’s military expansion remains a concern, as Australia seeks to understand the motivations behind the country’s significant military build-up.

During the Shangri-La Dialogue, Hegseth noted the credible potential of Chinese military actions in the region, necessitating a robust response from allies.

Following this, China's Defence University expressed strong disapproval of Hegseth's remarks, labeling them as 'groundless accusations' and alleging that the US is attempting to incite division within the Asia-Pacific.

In an interview, Marles remarked on the need for Australia to independently assess its defence policy without external dictates, reiterating the importance of maintaining strong regional relationships while fulfilling its commitment to national security.

As part of its broader security strategy, Australia is progressing on its AUKUS agreement with the US and UK, aiming to acquire eight nuclear-powered submarines.

Marles indicated that production was on track, adding that domestic personnel are gaining essential skills through this project.

The discussions at the Shangri-La Dialogue also highlighted growing geopolitical tensions, particularly relating to Taiwan, with Hegseth warning of the imminent risk posed by Chinese military preparations.

This context further underscores the necessary increase in defence capabilities and the collective responsibility of nations in the Indo-Pacific to respond to changing security challenges.
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