Australia's Historic Boost in Defense Spending Amid Rising Global Tensions

Australia plans to increase its defense spending to 3% of GDP by 2033, addressing heightened global strategic challenges. In response to geopolitical tensions, the government has pledged A$117 billion over the next decade, focusing on bolstering the Australian Defence Force. Defense Minister Marles plans to discuss these moves in Canberra.

In a historic move, Australia is set to raise its defense spending to 3% of GDP by 2033, currently sitting at about 2%, to tackle the most complex security challenges since World War Two. This increase means an additional A$117 billion over the next decade.

The decision comes amid escalating global geopolitical tensions, notably the power struggle between China and the U.S. in the Indo-Pacific region. Canberra has faced pressure from the U.S., which under the Trump administration urged Australia to boost defense funding to 3.5% of GDP.

Defence Minister Richard Marles will outline the expansion in the Integrated Investment Program and the National Defence Strategy in an upcoming speech in Canberra. The plan involves investing in capabilities to enhance the Australian Defence Force's readiness to deter and respond to threats, with funding sourced through increased appropriations and private capital.

(With inputs from agencies.)