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May 13, 2026
MEDIA RELEASE
LABOR DEFENCE FUNDING SPIN EXPOSED
Wednesday, 13 May 2026
Independent analysis by defence experts of the 2026-27 Budget has contradicted Defence Minister Richard Marles’ claims of significantly increased defence funding.
In their 2026 National Defence Strategy, the Albanese government claimed to be increasing Defence funding by $14 billion over the forward estimates and $53 billion over the decade.
But independent defence budget experts have instead found that only $7 billion of new government funding is provided for over the forward estimates and just $35.6 billion over the decade.
In fact, Defence will suffer a cut in funding next financial year, falling from $63.243 billion in 2025-26 to $62.595 billion in 2026-27.
As a per cent of GDP, Defence funding also falls and then flatlines, despite Labor’s claims of significant increases.
Marcus Hellyer of Strategic Analysis Australia notes that “defence spending hits 2.13% of GDP in 2025-26, it falls back down to 2.02% in 2026-27 and 2.05% in 2027-28, putting us in the territory we’ve been in for nigh on a decade, hovering around 2%”.
Marc Ablong and Linus Cohen of the Australian Strategic Policy Institute state that around a third of Labor’s promised Defence spending “will come from alternative financing mechanisms” and that “the money isn’t guaranteed.”
Labor must urgently explain the discrepancy between their claims in the 2026 NDS and the 2026-27 Budget. As Richard Marles has said, a defence strategy without funding is just hot air.
https://strategicanalysis.org/defence-budget-2026-27-the-14-billion-disappearing-act/
ENDS