Should Australia increase its defence spending? We asked 5 experts

Both Labor and the Coalition are considering an increase to defence spending ahead of the federal election.

Defence spending is currently at about 2% of gross domestic product^[1] (GDP), or around A$56 billion per year. The Coalition is reportedly eyeing an increase to 2.5%^[2] of GDP by 2029.

The Albanese government’s current spending plan is expected to reach 2.33%^[3] of GDP by 2034. And in this week’s budget, it is expected to bring forward^[4] some of its already announced $50 billion increase in defence spending.

Why do these percentages matter? US President Donald Trump has made it very clear he expects America’s allies to pay more on defence, at least 3% of GDP^[5].

We asked five experts if defence spending should be increased, and if so, by how much. They agreed more money is needed, albeit with caveats.

References

1. ^{^} 2% of gross domestic product (www.afr.com)
2. ^{^} eyeing an increase to 2.5% (www.afr.com)
3. ^{^} expected to reach 2.33% (www.smh.com.au)
4. ^{^} bring forward (www.afr.com)
5. ^{^} at least 3% of GDP (www.afr.com)