Australia proposes defence spending boost for 2023

Janes Defence Budgets forecasts that Australiaʼs total defence expenditure will climb to the equivalent of about USD48 billion by 2030. (Janes Defence Budgets)

Australia's defence expenditure for financial year 2022/23 will reach AUD48.7 billion (USD30.7 billion) or 1.96% of gross domestic product (GDP), the country's Labor government announced on 25 October in its first budget statement.

While funding is slightly higher than the amount forecast by the previous government in its March budget, the percentage of GDP has fallen from 2.11% because of higher-than-expected economic growth.

Total anticipated expenditure includes AUD1.7 billion for the Australian Signals Directorate, rising in 2023–24 to AUD2.3 billion.

Funding over the forward estimates – the three years beyond the new budget – will continue to grow to AUD52.1 billion in 2023–24 (2.12% of GDP); AUD54.2 billion in 2024–25 (2.11%); and AUD56.6 billion in 2025–26 (2.1%).

The budget statements anticipate that capability acquisition for 2022–23 will reach AUD16.2 billion, rising to AUD18.4 billion in 2023–24; AUD19 billion in 2024–25; and AUD20.2 billion in 2025–26.