As geopolitical tensions mount, Australia finds itself under increasing pressure to reassess its military preparedness.
New data has revealed that the country ranks only 15th globally in defence spending – far behind nations like Saudi Arabia, Poland, and India – despite rising threats from China and uncertainty surrounding its AUKUS alliance with the US and UK.
Australia’s current defence budget stands at $55.7 billion – a fraction compared to China’s $483 billion and the United States’ $1.5 trillion, which accounts for 37% of the world’s total defence expenditure.
The Australian Strategic Policy Institute (ASPI) has described the situation as a “glaring sovereign military gap,” warning that the country can no longer take American protection for granted. ASPI also highlighted China’s advances in long-range missile systems, cyber warfare, and space defence – all of which could directly threaten Australian interests.
Admiral David Johnston, Australia’s Chief of Defence Force, recently warned that Australia may soon face direct threats for the first time since World War II. Policy expert David Andrews from the ANU National Security College echoed these concerns, calling for defence spending to rise to 3.5% of GDP – a target also backed by the US Defence Secretary Pete Hegseth.
Despite these warnings, Prime Minister Anthony Albanese insists Australia is investing wisely. “We should determine our own defence needs,” he said, adding that arbitrary targets are not useful without strategic context.
Australia is also struggling with structural inefficiencies. While the country maintains a relatively small defence force of 58,000 personnel, high wages consume nearly 30% of the entire budget. In comparison, China has over 2 million active military personnel, and India 1.4 million – at significantly lower costs.
The debate intensifies ahead of the “Defending Australia” forum in Canberra on June 16, which will bring together defence experts, political leaders, and industry figures. As regional tensions escalate, the urgency for a stronger, more agile defence policy has never been greater.
