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U.S Demands Australia Increase Defense Spending to 3.5% of GDP

  • On May 30, 2025, US Defense Secretary Pete Hegseth met with Australian Defense Minister Richard Marles in Singapore and urged Australia to boost its military expenditure to a level equivalent to 3.5 percent of the nation’s gross domestic product at the earliest opportunity.
  • The demand responds to rising concerns about China's growing military threat and follows Australia's plan to increase its defense budget only to 2.4% of GDP by 2033-34, which is below the US target.
  • Hegseth emphasized allies must contribute more, while Marles acknowledged the conversation and Australia committed to increasing spending beyond current plans, which now total about 2% of GDP and nearly $59 billion.
  • Achieving the 3.5% defence spending target would require an additional annual outlay exceeding $40 billion, raising the budget beyond $100 billion. Shadow Finance Minister James Paterson emphasized that Australia is currently facing some of the most serious and uncertain security challenges not seen since the conclusion of World War II.
  • Australia's government faces internal pushback and external tariff disputes with the US, while the defense spending debate signals intensifying strategic pressures in the Indo-Pacific and tests the allied relationship.
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Cairns News broke the news in on Sunday, June 1, 2025.
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