Australia to Raise Defense Spending to 3% of GDP by 2033

Australia plans to increase its defense spending to 3% of gross domestic product by 2033, up from around 2%, amid rising global conflicts and sustained pressure from the US on allied nations to boost military budgets.

Australian Defense Minister Richard Marles said Thursday that international rules and norms limiting the use of force are steadily weakening, while outlining new investments in missiles, drones, and precision-guided weapons systems.

He warned that global security conditions have deteriorated significantly, noting that more countries are now engaged in active conflicts than at any point since World War II, with instability affecting every region worldwide.

The government had previously set a 2024 target of increasing defense spending to 2.3% of GDP by 2033. The revised plan represents an additional 53 billion Australian dollars (about $32.2 billion) in military expenditure over the next decade.

Spending is expected to rise by 14 billion Australian dollars (approximately $8.5 billion) over the next four years alone.

To meet the new 3% target, Australia has also adjusted its defense budget accounting to align more closely with NATO standards, incorporating broader categories such as military salaries and intelligence funding.

However, the revised target still falls below the 3.5% level previously urged by US Defense Secretary Pete Hegseth, highlighting ongoing debates over burden-sharing within Western defense alliances.