Australia Announced Record Defense Budget

20 Mei 2024

An Australian Army M1A1 Abrams Tank (photo: Aus DoD)

A generational investment in Australia’s Defence

The Albanese Labor Government is delivering historic investments in the Australian Defence Force (ADF), our people, our capabilities, our defence industry and our region, as we further strengthen the defence of our nation. 

The 2024 National Defence Strategy and 2023 Defence Strategic Review call for significant and urgent changes to our defence settings to respond to our complex strategic environment and deliver an integrated, focused Defence Force.

The 2024-25 Budget sees Defence funding increase to $764.6 billion over the decade to support a more capable and self-reliant Defence Force that can safeguard Australia’s security into the future. 

At the centre of the Albanese Government’s renewed investment in Defence is the allocation of $330 billion over the decade to 2033-34 for the rebuilt Integrated Investment Program – a significant lift compared to the $270 billion allocated as part of the 2020 Defence Strategic Update and 2020 Force Structure Plan. 

This includes:

-An additional $5.7 billion over the forward estimates – the largest increase to Defence spending over a forward estimates period in decades.                      

-An additional $50.3 billion over the next decade.

As a result of these significant investments, the annual Defence budget will grow to an estimated $100 billion by 2033-34 compared to $53 billion this financial year. 

This will see Defence funding as a proportion of Gross Domestic Product reach over 2.3% by 2033-34 – more than 0.2% higher than the spending trajectory set by the former Coalition government.

The Albanese Government’s commitment to Defence is an investment in a future made in Australia – ensuring we keep Australians safe, while delivering jobs and opportunities right across the country for decades to come. 

Integrated Investment Program

The 2024 Integrated Investment Program (IIP) supports the Albanese Government’s funding decisions by prioritising investments that help meet our changing strategic environment. 

This will include $11.1 billion over the decade to support the Government’s response to the Surface Combatant Fleet review, providing a larger and more lethal surface fleet, and an additional $1 billion over the next four years to accelerate ADF preparedness including long-range strike, targeting and autonomous systems. 

2024-25 Budget initiatives 

As the 2024-25 Budget outlines, the Albanese Government is also investing in other crucial areas to strengthen our defence settings, including: 

-$81.9 million towards defence industry for critical jobs, including for scholarships, attracting and recruiting apprentices under the Shipbuilding Employment Pathways Initiative, supply chain support and uplifting the defence industrial workforce.

-$166.2 million over five years from 2023-24 in grants to support small and medium businesses and local defence industry as part of the Defence Industry Development Strategy.

-$28 million over 2024-25 to 2027-28 to implement reforms under the Defence Trade Controls Amendment Act 2024, including to support industry engagement and accelerate trade between AUKUS partners.

-$232.3 million of international military support and assistance activities between 2023-24 and 2024-25, including $144.3 million in additional military support to Ukraine.

-$17.5 million to establish a new Parliamentary Joint Committee on Defence to enhance parliamentary oversight and understanding of Defence’s role in responding to Australia’s challenging strategic environment. 

The Defence funding confirmed in the 2024-25 Budget advances the implementation of the Government’s six immediate priorities announced in response to the Defence Strategic Review. It will also deliver the capabilities required to achieve an integrated, focused Defence Force across all domains – maritime, land, air, space and cyber – in line with the concept of National Defence.

Importantly, the 2024-25 Budget confirms the Albanese Government’s commitment to set out an affordable, achievable, and sustainable plan for now and the future which delivers the capabilities, jobs and investment in local Australian industry needed to support our Defence Force and safeguard Australia’s security. 

(Aus DoD)