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Australia Boosts Defense Spending by $1 Billion to Strengthen AUKUS and Military Expansion

admin March 24, 2025 2 min read

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Canberra Accelerates Defense Upgrades



Australia is increasing its defense budget by A$1 billion. This move aims to fast-track AUKUS commitments and strengthen military capabilities. Defense Minister Richard Marles announced the funding as part of Tuesday’s federal budget. He called it the most significant peacetime defense investment since World War II.

Submarine Rotational Force West Plans Move Forward


The extra funding will speed up key projects. One priority is preparing HMAS Stirling and the Henderson Defense Precinct for the Submarine Rotational Force West (SRF-West). Starting in 2027, up to four U.S. and one U.K. nuclear-powered submarines will rotate through HMAS Stirling. This step is crucial for Australia’s role in AUKUS.

Guided Weapons Program Gains Momentum


The investment will also accelerate Australia’s Guided Weapons and Explosive Ordnance (GWEO) enterprise. This program aims to enhance sovereign missile and munitions production. Marles emphasized that rapid progress is necessary due to shifting geopolitical realities.

Long-Term Defense Spending Increases


The A$1 billion boost is part of a broader A$10.6 billion increase over four years. Over the next decade, military spending will rise by A$50 billion. This strategy aligns with Australia’s goal of enhancing its defense posture in the Indo-Pacific.

AUKUS and Regional Security Concerns


Australia’s growing military presence highlights its role as a key U.S. ally. The submarine rotations and missile programs address strategic concerns, particularly regarding China’s influence. However, critics worry about the financial impact. The submarine program alone could cost up to A$368 billion over three decades. Some fear it may also escalate regional tensions.

Economic and Strategic Benefits


Despite concerns, the investment will create thousands of jobs. The Henderson Defense Precinct will become a hub for submarine operations and maintenance. The GWEO enterprise will reduce reliance on foreign suppliers by boosting domestic weapons production.

AUKUS Timeline Accelerates


As parliament finalizes the budget, Australia’s commitment to defense is clear. The country is strengthening its military posture while balancing historical alliances. With AUKUS progressing rapidly, Australia positions itself as a major player in Indo-Pacific security.


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