Defence Minister Richard Marles is set to announce a monumental $53 billion boost to Australia's military coffers over the next decade.
Disclosed ahead of the release of the National Defence Strategy 2026 and the Integrated Investment Programme, the package includes $14 billion in immediate spending over the next four years.
The funding surge marks a shift towards naval power, missile defence, and autonomous systems, with up to $15 billion earmarked for drone technologies like the Ghost Bat and Ghost Shark.
The escalation comes as US President Donald Trump continues to target "lagging allies", with the Pentagon recently urging partners to reach a 3.5% GDP spending threshold.
While this new investment is projected to lift Australia’s outlays to approximately 2.4% of GDP by 2033, it remains well below the aggressive targets set by Washington.
To manage the fiscal burden, the government will increasingly rely on "off-budget" investment vehicles and private-sector capital, a move that shields the underlying budget deficit from the full weight of the expenditure.
To streamline delivery and curb procurement blowouts, the Albanese government is also launching the Defence Delivery Agency, which will absorb 40% of the current department’s budget.
Accompanied by a leadership shake-up and the sale of 67 non-strategic military sites, the reform underscores a commitment to self-reliance.
As Marles warned, the erosion of international norms necessitates a military capable of projecting power far beyond Australia's shores.