Australia plans major spending boost for Indo-Pacific defense
Tom Abke
To bolster its defense capabilities, Australia recently unveiled its inaugural National Defence Strategy (NDS) and 2024 Integrated Investment Program. The comprehensive plan projects an annual defense budget surpassing $66.4 billion by 2033-34, equating to 2.4% of gross domestic product. The strategic initiative seeks to provide an integrated and focused defense force capable of addressing Australia’s greatest threats and deterring conflict.
Its cornerstone is the adoption of a “strategy of denial,” which emphasizes deterrence through a robust defense posture, according to Australia’s Department of Defence, known as Defence. The Australian Defence Force (ADF) is transitioning to an integrated joint force to address threats across all domains: cyber, space, air, maritime and land. The goal is to prevent an adversary from using force to achieve regional goals, thereby protecting Australia’s strategic lines of communication.
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“The NDS articulates the Government’s adoption of a Strategy of Denial, which aims at deterring conflict before it begins,” Defence stated in a mid-April 2024 news release. The strategy not only focuses on national defense but also on collaborating with partners to ensure regional stability.
“The strategy of denial aims to develop the capability for ‘impactful projection’ of power,” Carlyle Thayer, former director for regional security studies at the Australian Command and Staff College, told FORUM. “This means acquiring critical capabilities for precision long-range strike and interdiction, thereby deterring a potential adversary from projecting force against Australia by holding their assets at risk at greater distances from Australia’s shores.”
The investment program provides a road map for achieving the NDS objectives, Thayer said. It emphasizes the acquisition of next-generation capabilities, including replacing Anzac-class frigates with general-purpose frigates, acquiring conventionally armed nuclear-powered submarines and enhancing the ADF’s long-range strike capabilities. The latter includes acquiring the High Mobility Artillery Rocket System for the Australian Army, and Joint Strike Fighters and Super Hornet fighters equipped with advanced missiles for the Royal Australian Air Force.
About 38% of program funding is allocated to maritime capabilities, reflecting Australia’s emphasis on securing its sea lines of communication, with 22% earmarked for enterprise and enabling programs, including infrastructure and information technology. Of the remainder, 16% is allocated for land capabilities, 14% for air, 7% for cyberspace and 3% for space.
The NDS also highlights the critical role of personnel in achieving Australia’s defense objectives. “We must grow, reshape, and reskill our workforce to transition to new platforms and build capacity in emerging capabilities across our five domains,” ADF chief Gen. Angus Campbell said in a news release. “People are, and will remain, our most important component of capability.”
The NDS proposes broadening eligibility criteria for military recruitment to include noncitizens, as well as offering subsidized housing, home ownership support, a $33,000 continuation bonus and expanded health benefits.
The strategy also emphasizes the importance of engaging with like-minded regional partners amid rising geopolitical tensions in the Indo-Pacific.
“A key objective of Australia’s National Defence Strategy is to transform the ADF into an integrated joint force capable of meeting challenges and threats to sovereignty in all domains,” Thayer said. “This includes defending Australia and its immediate region, deterring adversaries from projecting power against Australia, and protecting Australia’s sea lines of communication.”
Tom Abke is a FORUM correspondent reporting from Singapore.
