Overview

• The Australian Strategic Policy Institute’s Cost of Defence report finds the 2025/26 budget does not address acute Indo-Pacific security risks.
• Most major capability acquisitions, including AUKUS submarines and new frigates, are scheduled for delivery after 2029, leaving current force readiness underfunded.
• Prime Minister Anthony Albanese defended a decade-long plan to raise defence spending to 2.4% of GDP and dismissed ASPI’s critique as predictable.
• The ADF is experiencing personnel shortages, limited munitions stocks and cumbersome procurement processes that contribute to a “paper ADF.”
• Industry leaders warn that engineering and technical workforce deficits are undermining domestic munitions production and capability sustainment.