Australia’s Defence Spending Below International Standards Despite Rapidly Worsening Strategic Outlook

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Landmark research by the Institute of Public Affairs and Strategic Analysis Australia, National Security and Australia’s Northern Defence, finds that Australia is facing the most challenging security environment since the Second World War.

Key Findings

  • Australia’s defence planners acknowledge that we face the ‘most complex and challenging strategic environment since the Second World War’.
  • Our closest and most important ally, the United States, has criticised allies for not contributing enough to their own defence and has specifically called for Australia to spend more.
  • Yet Australia’s current defence spending as a percentage of gross domestic product (GDP) has remained stagnant at barely 2 per cent since 2021, a figure which compares poorly to:
    • Other high-income economies: 2.66 percent of GDP (up from 2.48 per cent in 2021);
    • The Organisation for Economic Co-operation and Development (OECD): 2.42 per cent of GDP (up from 2.32 per cent in 2021);
    • The world average: 2.35 per cent of GDP (up from 2.18 per cent in 2021); and

John Storey

John Storey is the Director of Law and Policy at the Institute of Public Affairs.

Kevin You

Dr Kevin You is a Senior Fellow at the Institute of Public Affairs
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