Australia Faces US Pressure to Boost Defense Spending to 3.5% of GDP

Photo by Michael Afonso on Unsplash

US Defense Secretary Pete Hegseth is pressing Australia to increase defense spending to 3.5% of gross domestic product, a significant jump from the current level of just over 2%, as tensions mount over China's military activities in the Indo-Pacific region.

The demand, revealed during a Sky News Australia interview Monday morning, puts pressure on the Albanese government to dramatically expand military expenditure amid US intelligence assessments that China may move against Taiwan by 2027.

Assistant Foreign Minister Matt Thistlethwaite declined to commit to the 3.5% target during the television interview, instead emphasizing current defense spending increases while maintaining Australia would make decisions "based on what we believe is in Australia's best interest."

"We are increasing our defence spending," Thistlethwaite said. "Over the course of the next three years, defence spending increases by about $10.5 billion and about $50 billion over the course of the next decade."

The minister said Australia's defense spending would increase "to close to 2.5% of GDP" through investments including the AUKUS partnership with the United States and United Kingdom, expanded naval surface fleet capabilities, and long-range strike fire systems.

But Liberal Sen. Hollie Hughes criticized the government's defense preparedness, pointing to recent Chinese military activities near Australian waters.

"The reality is this is a government who had absolutely no idea that China was performing live fire exercises off our coast or having spy ships circumnavigate around our nation," Hughes said during the same Sky News program.

The opposition senator argued the Indo-Pacific region faces heightened security threats requiring increased defense capabilities.

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