Overview

• Pete Hegseth respectfully pressed Richard Marles to bolster Australia’s defence budget in response to rising Indo-Pacific security risks.
• Australia currently spends just above 2% of GDP on defence and is open to raising it toward a Pentagon-recommended 3% target.
• Canberra will transfer $2 billion to US submarine shipyards by end-2025 to support its acquisition of three Virginia-class boats starting in 2032.
• The ministers agreed on the need to accelerate US Virginia-class production rates in order to maintain AUKUS partnership momentum.
• Richard Marles warned that China’s rapid nuclear modernisation and Russia’s strategic ties could trigger a new cycle of global proliferation.