Each Labor and the Coalition are contemplating a rise to defence spending forward of the federal election.
Defence spending is at present at about 2% of gross domestic product (GDP), or round A$56 billion per 12 months. The Coalition is reportedly eyeing an increase to 2.5% of GDP by 2029.
The Albanese authorities’s present spending plan is expected to reach 2.33% of GDP by 2034. And on this week’s finances, it’s anticipated to bring forward a few of its already introduced $50 billion improve in defence spending.
Why do these percentages matter? US President Donald Trump has made it very clear he expects America’s allies to pay extra on defence, at least 3% of GDP.
We requested 5 consultants if defence spending must be elevated, and in that case, by how a lot. They agreed extra money is required, albeit with caveats.
