Australia debates potential increases in defense spending

Australia is currently spending about 2% of its GDP on defence, which amounts to around A$56 billion a year. This level of spending is being reviewed by both major political parties in the lead-up to the federal election. The governing Coalition is considering raising defence spending to 2.5% of GDP by 2029. Meanwhile, the Labor government plans to gradually increase spending to 2.33% of GDP by 2034. In the upcoming budget, the government is expected to expedite part of a previously announced A$50 billion boost in defence funding. These spending levels have drawn attention because U.S. President Donald Trump has urged allies like Australia to contribute more to their defence budgets, suggesting a target of at least 3% of GDP. To explore this issue, experts were consulted on whether Australia should increase its defence spending and by how much. They all agreed that more funding is needed, but they emphasized the need for careful planning and justification.