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

  • On June 1, 2025, US Defense Secretary Pete Hegseth called on Australia to boost its military budget to reach 3.5 percent of its gross domestic product at the earliest opportunity.
  • This request follows Australia's current defense budget of about 2% of GDP and a planned rise to 2.4% by 2033-34, seen as insufficient against rising threats.
  • Hegseth and Australian Deputy Prime Minister Richard Marles met in Singapore to discuss accelerating defense cooperation and aligning investments with the Indo-Pacific security environment.
  • Australia's 2025-26 military budget will be nearly $59 billion, and reaching 3.5% of GDP would require over $40 billion more annually, pushing the budget above $100 billion.
  • Prime Minister Anthony Albanese rejected increasing spending solely due to US pressure, emphasizing Australia will decide defense policy based on its national interest.
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Cairns News broke the news in on Sunday, June 1, 2025.
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