Overview

• The Coalition has pledged an additional A$21 billion in defence funding over five years to raise defence spending to 2.5% of GDP by 2030, with a goal of reaching 3% within a decade.
• Peter Dutton and Andrew Hastie argue the increase is essential to address global security threats and rebuild Australia's defence capabilities, including reinstating a fourth squadron of F-35A fighter jets.
• Labor has criticized the announcement, calling it vague and underfunded, with no clear details on costings, funding sources, or specific procurement plans.
• The proposal aligns with pressure from the Trump administration for allies to increase defence budgets, as well as Australia's commitments under the AUKUS partnership.
• Key questions remain about how the Coalition would fund the expanded budget, with Dutton suggesting savings from temporary cost-of-living measures and deferred tax cuts.