The bottom line
The Albanese government’s first budget puts Defence spending at 1.96 per cent of GDP in 2022-23 – less than the 1.98 per cent posted by the Coalition the previous year – as it delays new acquisition programs until its submarines and defence strategic reviews are completed in March.
Defence spending is forecast to rise to 2.12 per cent in 2023-24 and remain at about that level for the next two years – far short of what will be required to deliver nuclear submarines and other capabilities to deter potential adversaries.
Inflation forecasts at 5.75 per cent through 2022-23, and 3.5 per cent the following year, will slash Defence’s effective budget by the equivalent of $2.8bn this financial year and $1.85bn the next.
In just a handful of new initiatives, the government will spend $6.9m to establish its promised Pacific Defence School, $32.2m to support defence manufacturing in Queensland, and $5.2m to develop renewable fuels for the military.
The budget also confirms an already announced $1.17bn budget allocation to recruit new ADF personnel.
The Albanese government’s first budget puts Defence spending at 1.96 per cent of GDP in 2022-23 – less than the 1.98 per cent posted by the Coalition the previous year – as it delays new acquisition programs until its submarines and defence strategic reviews are completed in March.
Defence spending is forecast to rise to 2.12 per cent in 2023-24 and remain at about that level for the next two years – far short of what will be required to deliver nuclear submarines and other capabilities to deter potential adversaries.
Inflation forecasts at 5.75 per cent through 2022-23, and 3.5 per cent the following year, will slash Defence’s effective budget by the equivalent of $2.8bn this financial year and $1.85bn the next.
In just a handful of new initiatives, the government will spend $6.9m to establish its promised Pacific Defence School, $32.2m to support defence manufacturing in Queensland, and $5.2m to develop renewable fuels for the military.
The budget also confirms an already announced $1.17bn budget allocation to recruit new ADF personnel.
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