Media
|
Media Releases
May 28, 2026
Defence Minister Richard Marles has been embarrassingly contradicted by the government’s own Department of Finance and the authoritative ASPI Cost of Defence report.
Despite his claims to be increasing government spending on Defence by $14 billion over the forward estimates and $53 billion over the decade, ASPI has demonstrated that only $6.8 billion over the forwards and $35 billion over the decade of additional government funding has been allocated in the budget.
This was also confirmed by the Finance Department during Senate Estimates F&PA committee hearings on Wednesday night.
ASPI has also confirmed Defence will suffer a cut next financial year of $799 million.
As a per cent of GDP, ASPI confirms Defence spending peaked at 2.13% of GDP in 2025–26, falls to 2.02% in 2026-27 and is forecast at 2.04% in 2027-28.
Last night, Finance officials sought to downplay the certainty underlying estimates for alternative financing and estate divestment proceeds underpinning defence capability plans.
When Finance Minister Katy Gallagher was asked about Richard Marles' plans to fund Defence using private capital, estate divestment proceeds and government equity, she said: "none of those decisions have been finalised."
Finance officials confirmed Defence carries the downside risk if proceeds from alternative financing and estate divestment are lower than estimated, and made it clear those estimates are highly uncertain. Any shortfalls would see Defence going cap in hand to Finance, or cancelling more capability.
The ASPI report clearly states, “the bottom line is that we’re still waiting for the reality to match the rhetoric.”
Defence spending by the Albanese Labor government is not matching the strategic dangers Australia faces.
The cost of Defence: ASPI Defence budget brief 2026-2027
Recording of Senate F&PA Committee
ENDS