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Australia to boost defense spending over global impact of US-'Israel' war on Iran

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Published :  
16-04-2026 12:14|
  • Australia announces largest peacetime defence spending increase in its history.
  • Defence budget to rise to 3 percent of GDP by 2033, adding $38bn over a decade.
  • Move linked to growing global instability following US and ‘Israel’ conflict with Iran.

Australia has unveiled its biggest peacetime increase in defence spending, citing worsening global security conditions linked to the wider impact of the US and ‘Israel’ war on Iran.

Defence Minister Richard Marles announced an additional 53 billion Australian dollars, equivalent to about 38 billion US dollars, to be spent over the next decade.


Read more: US military says blockade of Iran ports ‘completely’ halts economic trade


He said Australia is facing its “most complex and threatening strategic circumstances since the end of World War II”.

Rising defence budget targets

Under the updated strategy, Australia’s defence spending will rise from 2.8 percent of gross domestic product this year to 3 percent by 2033.

Officials say the plan reflects long-term security challenges in the Indo-Pacific region and broader geopolitical tensions affecting global stability.


Read more: Iran's Ghalibaf warns US to abandon "Israel First" policy for ceasefire to hold


Marles said the decision was not driven by pressure from the Trump administration, despite recent US calls for allies to increase their military contributions.

Submarines at the centre of strategy

A major part of the investment will go toward expanding Australia’s naval capabilities, including a planned fleet of at least eight nuclear-powered submarines.

The program is being developed under the AUKUS security partnership between Australia, the United States, and the United Kingdom, supported by the United States Navy and British counterparts.

Global tensions shaping defence policy

The announcement comes amid rising geopolitical instability following the US and ‘Israel’ confrontation with Iran, which has heightened security concerns across multiple regions.

Australian officials argue that shifting global power dynamics require stronger national defence readiness and long-term military planning.