Australia has announced a record defense budget of AU$55.7 billion, US$36.8 billion, for 2025, representing a 6.3% increase from the previous year and accounting for 2.02% of the country’s GDP. This significant budgetary increase underscores Australia’s commitment to enhancing its military capabilities amid rising geopolitical tensions in the Indo-Pacific region.
The defense budget includes an allocation of AU$16.7 billion for equipment acquisitions and AU$17.2 billion for maintaining existing assets. A notable portion, AU$10.7 billion, is designated for the Navy, including substantial investments in nuclear-powered submarines under the AUKUS agreement with the United States and the United Kingdom. Spending on these submarines is expected to rise sharply, from AU$475 million last year to AU$2.8 billion next year, reaching AU$4.97 billion by 2027-2028.
Other significant allocations include AU$813 million for six Hunter-class frigates and AU$587 million for six Arafura-class offshore patrol vessels. The Army will receive AU$11.8 billion for acquiring advanced assets such as Boxer armored vehicles, Redback infantry fighting vehicles, Huntsman self-propelled howitzers, High Mobility Artillery Rocket Systems, M1A2 Abrams tanks, advanced surface-to-air missile systems, and new helicopters.