The Trump administration has urged Australia to significantly increase its defence budget, requesting that it be raised to 3.5% of the country’s GDP as soon as possible. This appeal was made by US Defence Secretary Pete Hegseth during discussions with Australian Deputy Prime Minister and Defence Minister Richard Marles at a regional security conference held in Singapore.
According to a recent Pentagon statement, Hegseth emphasised the need for Australia to promptly elevate its defence spending, a figure he has not previously specified in earlier requests. Current projections by the Australian government anticipate an increase in defence spending from 2.02% of GDP to 2.33% by the 2033-2034 financial year.
While the request comes from a longstanding ally, Prime Minister Anthony Albanese has asserted that Australia will independently determine its defence policy. He pointed out that Australia has already committed an additional $10 billion in defence spending over the coming years.
In addition to the budget discussions, Hegseth and Marles also explored various collaborative measures, including enhancing defence industry cooperation, building supply chain resilience, and expediting US military initiatives in Australia.
During a speech at the prestigious Shangri-La Dialogue in Singapore, Hegseth highlighted the ongoing threat posed by China regarding its ambitions towards Taiwan, underscoring the need for allies and partners to contribute reciprocally to defence efforts. He characterised the threat from China as immediate and real, suggesting a necessary shift in how regional allies approach their own defence strategies.
In response, Marles welcomed the US’s focus on the Asia Pacific region but emphasised that defence efforts cannot rely solely on American leadership, signalling Australia’s intent to play its part in regional security. The conversations taking place reflect a growing urgency around defence spending and strategy, as geopolitical tensions rise.