US Pushes Australia for Major Defence Spending Boost as Super Tax Controversy Deepens
Government faces pressure on two fronts as opposition vows to fight superannuation changes affecting 1.2 million Australians
US Defence Secretary Pete Hegseth has called on Australia to increase defence spending to 3.5% of GDP, a significant jump from the current level of just over 2%, as the Albanese government simultaneously faces mounting opposition to superannuation tax changes that could eventually affect 1.2 million Australians.
The dual policy pressures emerged during weekend television interviews with senior government and opposition figures, highlighting key challenges facing the Labor government as it navigates alliance obligations and domestic tax reform.
Assistant Foreign Minister Matt Thistlethwaite confirmed the American request during a Sky News panel discussion but indicated the government would resist the substantial spending increase. "We believe that we will determine our defence spending based on what's in Australia's best interest," Thistlethwaite said Sunday.
The 3.5% target would represent a massive fiscal commitment, requiring billions more in annual spending beyond current projections. Australia currently spends approximately 2.33% of GDP on defence, with plans to reach close to 2.5% in coming years.
Shadow Finance Minister James Patterson, speaking in his first major interview since his recent elevation, said any increase should be driven by national interest rather than American demands. "We should increase our defence spending, not because our American friends have asked us to do so, but because it's in our national interest to do so," Patterson told Sky News.
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