Institute of Public Affairs releases defence spending paper, urges cash boost

As Australia’s top strategists brainstorm how to improve the national security, a group of experts is calling on the government to lift defence spending to three per cent of gross domestic product by 2028-29.

Defence experts Michael Shoebridge (left), Marcus Hellyer (centre) and Peter Jennings (right) contributed to a report calling for a bold increase in defence funding.

As Australia’s top strategists brainstorm how to improve the national security, a small group of experts is calling on the government to boost defence spending to three per cent of gross domestic product by 2028-29.

This month, the Institute of Public Affairs published part four of its report ‘The Defence of Australia: A Blueprint for the next government’.

With a focus on defence funding, the authors, which includes defence experts Marcus Hellyer, Peter Jennings and Michael Shoebridge, recommended the Commonwealth Government reset the defence budget on a “rapid trajectory” to three per cent of GDP in the next term of government.

The Northern Territory economy has enjoyed an enormous infrastructure windfall since the Commonwealth announced in 2017 it would spend $747m upgrading the NT’s four major Defence Force bases, with the contract being awarded to Sitzler.

Projects currently under development include the $1.6bn RAAF Base Tindal airfield and infrastructure works, $760m for P-923 facilities at RAAF Base Darwin, $601m for the Larrakeyah defence precinct redevelopment program, $518m for the MQ-4C Triton drone at Tindal and assorted others.

With defence projects such as the acquisition of nuclear powered submarines (pictured), defence spending has become a hot topic.

Australia’s defence spending currently sits at 1.9 percent of GDP.

The report claims the bump-up would help Australia avoid negative, “consistent themes” in defence spending dating “back to Federation”, such as being “reactive rather than anticipatory” and “relying on a powerful ally”.

“The lesson from history is that Australia must get ahead of the threat curve and move beyond a reactive approach to defence spending.”

The report maintained “competition for public money” was a significant hurdle in achieving the ambitious three per cent goal.

“It is the responsibility of the government to lead this conversation, explaining to the public why this investment is needed,” the report said.

“Threat perception drives spending patterns; a public that doesn’t understand our strategic environment and the rapidly developing threats in it will not support additional spending.”

The report has also urged the Albanese Government to get on the front-foot with President-elect Donald Trump. (Photo by Jim Watson / AFP)

However, the report also noted there was “no point” ramping up defence funding if it was poorly managed.

Further, the Albanese Government was urged to raise the issue of international security with President-elect Donald Trump, who will be inaugurated this week.

“With a new administration about to assume power in Washington DC, we judge that Australia’s efforts to lift its performance as a contributor to globalsecurity mean that the Commonwealth government should engage the incoming US administration to discuss burden sharing on both defence spending and capabilities,” the report said.

“A stronger Australian defence effort makes us not only more self-reliant, but also a more credible ally.”

The report is not the first paper urging bold changes to Australia’s national security posture, with the Institute of Public Affairs having called for 16,000 US Marines to be posted to the Top End as early as 2025.