Admiral David Johnston, head of Australia’s defence force, has recently given a dire “wake-up call.” He pointed to the increasing likelihood of conflict being waged on or from Australian territory. This is an important statement indeed, as Australia prepares to take on the host responsibility for next year’s G7. Clearly, defence spending will be front and centre in the discussions. In recent years the United States has pressured Australia to increase its defense spending by tens of billions of dollars. This call highlights the growing pressure on the Albanese government to reconsider its financial commitments to national security.
Admiral Johnston also said that Australia’s defence budget is under extreme pressure and is “currently overcommitted.” He was clear that sometimes, one must make difficult decisions. This is all happening in reaction to the “most difficult and dangerous strategic environment” since WWII, which has cut the warning time for impending conflict. As Australia grapples with these issues, Prime Minister Anthony Albanese aims to identify necessary investments in defence while navigating fiscal challenges across various sectors.
Defence Budget Under Pressure
The Australian Strategic Policy Institute (ASPI) has publicly opposed the government. They claim that the government’s unwillingness to spend more on defence has led citizens to feel “insecure.” Admiral Johnston’s remarks reiterated what’s at stake and how urgent our situation truly is. He stated, “We may need to operate and conduct combat operations from this country,” indicating a significant shift in Australia’s defence posture. This would be a break from standard tactics that focused on forming local coalitions to conduct military operations.
His new successor Treasurer Jim Chalmers contends with a growing structural deficit. Further complicating matters, several federal ministries contest exceedingly lofty spending pressures that compound the budgetary squeeze. Chalmers remarked, “There are always people who say we should spend more on defence, there’ll be a lot of people who say we should spend less on defence,” reflecting the complexities of public opinion on military funding.
The UK is significantly increasing its defense spending, reaching 2.5 percent of GDP by 2027-28. They even intend to increase that figure to 3 percent in the next parliament, which raises the stakes for Australia. British Prime Minister Sir Keir Starmer has now proposed a radically different approach with an increased emphasis on “war-fighting readiness.” This bold step could put Australian leaders on notice to follow suit.
Challenges in Northern Infrastructure
Admiral Johnston has highlighted numerous challenges facing Australia’s northern infrastructure, stating that the nation may need to reconsider its role as a combat operations base. This sentiment points to a larger worry about national security and military readiness. Tensions have never been higher in the Asia-Pacific region. Given this reality, robust peacetime infrastructure capable of withstanding the rigors of military operations is essential.
Dennis Richardson, former head of the Department of Foreign Affairs and Trade, has pointed out the historical context of Australia’s defence spending. He noted, “Very often in the past the defence budget has been under-expended, under-utilised and that’s been used as an argument against increasing the defence budget.” This view comes as a welcome contribution to the growing debate in Australia about the wisdom of funding the military’s priorities.
Admiral Johnston’s claim exposes a daunting truth, “We’re at a point where defense is wasting literally every dollar they claim to it. Together these statements do not inspire confidence in the future of Australia’s military capabilities.
Government Response and Future Outlook
Prime Minister Albanese has resolutely rejected challenges to his government’s commitment to a high level of defence spending. He defended ASPI’s criticism and the other criticism with bravado. He dismissed ASPI’s positions as “totally predictable” and charged the institute with having partisan connections. So as shown in Albanese’s strategy, counting needs first and then investing in defence shows a practical approach to national security.
As Australia prepares for its first face-to-face meeting with U.S. President Joe Biden at the G7 summit, discussions around defence spending are expected to dominate conversations. The Biden administration has already signaled its case to Australia should do more to strengthen security cooperation abroad.
