Australia’s Defence Spending for FY 2019–20 to Rise by AUD2.3 Billion

03 April 2019

RAAF F-35A with the Hornet (photo : RAAF)

Australia’s defence spending for fiscal year (FY) 2019–20 will rise by AUD2.3 billion (USD1.6 billion) to AUD38.7 billion, the government announced in its annual budget statement on 2 April.

Expenditure as a share of gross domestic product (GDP) will reach 1.93%, broadly in line with the government’s target of defence funding reaching 2% of GDP in FY 2020–21.

Funding over the forward estimates – the three fiscal years beyond the new budget – will total AUD136 billion, with the estimate for 2022–23 set at AUD48.7 billion.

Defence Minister Christopher Pyne said in a statement that the budget is designed to continue strong investment in Australia’s national security, building defence capability and supporting Australia’s sovereign defence industry. (Jane's)

A Safer Australia - Budget 2019-20 - Defence overview

Delivering the Integrated Investment Program

The Government is increasing investment in advanced Defence capabilities, while boosting Australia’s sovereign defence industry and creating Australian jobs.

Over the next decade to 2028-29, the Government is investing more than $200 billion in Defence capabilities including:

-the continuous naval shipbuilding program, which is investing around
$90 billion to build world class vessels, while also building a strong and viable Australian naval shipbuilding industry;

-continuing the purchase of the 5th generation F-35 Joint Strike Fighter and
P-8A Poseidon maritime surveillance aircraft to provide Australia with regionally superior combat and maritime surveillance capabilities;

-continuing to upgrade our EA-18G Growler electronic attack aircraft and
E-7A Wedgetail battlespace management aircraft; and

-building our policy and intelligence capabilities to ensure Australia has a deeper understanding of the world we live in.

Defence Capability Investment

Since the release of the 2018-19 Budget, the Government has committed around
$47.5 billion to new capabilities including:

-signing the Strategic Partnering Agreement for the $50 billion Attack class submarine program, which will see 12 regionally superior submarines designed and built in Australia;

HMA Ships Canberra, Anzac, Sirius, Parramatta and Melbourne operate together (photo : RAN)

-nine Hunter class frigates, valued at $35 billion, to replace the Anzac class frigates from the late 2020s. The Hunter class will be a highly capable and lethal surface combat capability;

-a fleet of 211 new advanced Combat Reconnaissance Vehicles to protect our troops, with the majority to be manufactured by Australian workers in Queensland, using Australian steel;

-unmanned maritime patrol aircraft, with an initial investment valued at
$1.4 billion to acquire the MQ-4C Triton through a cooperative program with the United States Navy;

-Integrated Soldier Systems, valued at up to $1 billion, that will deliver a broad range of equipment to ensure ADF personnel continue to meet emerging threats and that are less detectable, less susceptible to enemy attacks and able to fight longer and more effectively in challenging conditions; and

-the first tranche of the $1.1 billion Defence Fuel Transformation Program to deliver a safer, simpler and more assured Defence fuel network in partnership with industry.

Naval Shipbuilding Program

The Government's $90 billion investment in continuous ship and submarine building is the largest regeneration of the Navy since the Second World War. Fifty-four naval ships will be built in Australia using Australian steel. This commitment will create thousands of jobs for decades to come. 

Development of the Osborne North Shipyard in South Australia is continuing in preparation for the construction of the 12 new Attack class submarines.

The $535 million infrastructure redevelopment at Osborne South is on track to be completed in early 2020, in time for the start of Hunter class frigate prototyping. Nine Hunter class frigates will be built at the shipyard.

The first two Arafura class offshore patrol vessels (OPVs) are being built in existing facilities at Osborne South. Twelve OPVs will be built as part of the $3.6 billion investment to protect our borders and replace the existing patrol boat fleet. Ten OPVs will be built at Henderson in Western Australia. This project will also help sustain critical skills in Australia’s naval shipbuilding workforce.

Plans for the upgrade and development of facilities in WA to support the Hunter class frigates and the Arafura class offshore patrol vessels are progressing. Around $1.5 billion dollars will be spent on infrastructure in WA to support our new fleet.

Twenty-one Guardian class patrol boats are being built in WA to help our Pacific neighbours and Timor-Leste. Our $504 million investment will improve the security and prosperity of the region.

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