In a move signaling a robust response to rising geopolitical challenges, Australia has unveiled a record defense budget, earmarking a staggering AU$55.7 billion (US$36.8 billion) for the fiscal year 2024-2025.
This figure represents a significant 6.3% increase from the previous year and amounts to 2.02% of the nation’s gross domestic product.
Last month, Australia’s national defense strategy was unveiled, promising a notable surge in expenditure, albeit set to kick in by 2027-2028, when defense spending is projected to reach approximately AU$67.4 billion.
However, the government still has ground to cover to meet its target of AU$100 billion in defense spending by 2033-2034, constituting 2.3% of GDP.
In the latest budget announcement covering the 2024-2025 period, the government has earmarked AU$16.7 billion for equipment acquisitions in the upcoming fiscal year, along with an additional AU$17.2 billion allocated for maintaining existing assets.
The Navy is allocated a significant sum of AU$10.7 billion, with the budget increasingly earmarked for nuclear-powered submarines as the trilateral AUKUS agreement advances.
Spending on nuclear submarines is set to escalate from last year’s AU$475 million to AU$2.8 billion in the upcoming year, eventually surging to AU$4.97 billion by 2027-2028.
In comparison, funding for six Hunter-class frigates and six Arafura-class offshore patrol vessels amounts to AU$813 million and AU$587 million, respectively.
Notably absent from the budget is any mention of the 11 new general-purpose frigates, the selection process for which is anticipated to commence next year.
The Army is slated to receive AU$11.8 billion, earmarked for the procurement of costly assets including Boxer armored vehicles, Redback infantry fighting vehicles, Huntsman self-propelled howitzers, High Mobility Artillery Rocket Systems, M1A2 Abrams tanks, National Advanced Surface-to-Air Missile Systems, and UH-60M Black Hawk and AH-64E Apache helicopters.
The Air Force’s allocation stands at AU$9.5 billion, with the F-35A fighter jets constituting its most substantial investment. Currently, nine out of the planned 72 fighters are yet to be delivered. Additionally, budget data indicates a delay of two years in the delivery of four MC-55A Peregrine electronic warfare aircraft.
The Australian Signals Directorate, responsible for foreign signals intelligence, cybersecurity, and offensive cyber operations, is set to receive AU$2.7 billion, while an additional AU$1 billion is allocated to defense intelligence.
Australian military acquisitions are managed by the Capability Acquisition and Sustainment Group. In 2021, the government established the Guided Weapons and Explosive Ordnance enterprise to bolster domestic production of missiles and munitions. Combined, they are slated to receive AU$1.3 billion in the upcoming fiscal year.
Additionally, Ukraine is set to receive AU$144.3 million in military aid for the ensuing year, aiding its ongoing resistance against a Russian incursion.
In terms of personnel, the Defence Department aims to have 63,597 uniformed personnel and 19,127 civilian employees in the coming year. Currently, the Australian Defence Force (ADF) consists of approximately 58,600 uniformed personnel, while the department comprises around 18,000 civilian employees.
Relevant articles:
– Australia unveils record $37 billion defense budget, Defense News
– Australia Unveils Record $37 Billion Defense Budget, Army Recognition