Gina Rinehart, Australia’s wealthiest individual, has ignited a debate over national defence funding by proposing a substantial increase to 5 per cent of the country’s gross domestic product (GDP). Her comments came during a sunset vigil ahead of Anzac Day outside the Sydney Opera House, where she underscored the urgency for enhanced defence expenditure.
This call for increased military spending follows Opposition Leader Peter Dutton’s recent pledge for an additional $21 billion in defence spending, aiming for 2.5 per cent of GDP by 2030, should the Coalition secure victory in the upcoming federal election. Meanwhile, the Labor government anticipates gradually increasing defence spending from 2.02 per cent of GDP this year to 2.3 per cent by 2034.
During her address at a Channel Seven event, Rinehart articulated the necessity for substantial investments in the Australian Defence Force, particularly for advanced technologies such as missile defence systems, drones, and sea mines. However, she did not propose any specific funding mechanisms for her ambitious vision.
Critics have voiced concerns, suggesting that allocating 5 per cent of GDP to defence would severely impact the federal budget. Currently, only a handful of nations, including Russia and Israel, allocate such high percentages of their GDP to defence.
In response to Rinehart’s remarks, Veterans Affairs and Defence Personnel Minister Matt Keogh expressed that Anzac Day should remain a time for reflection rather than political debate on defence funding. He emphasised that this isn’t the day to politicise defence expenditure.
Conversely, Liberal Senator Dave Sharma acknowledged the changing security landscape in Australia, suggesting that while he does not fully support Rinehart’s proposal, an increase in defence spending is becoming increasingly necessary to address threats in the region.
As discussions continue, Rinehart’s call for a substantial boost in defence spending has certainly stirred the pot, raising questions about national priorities and the funding of such ambitious military enhancements.