Australia has announced the largest military budget increase in its history to address growing global challenges. Defense Minister Richard Marles revealed the latest biennial update of the country's defense strategy on April 16, 2026, outlining plans to spend an additional 530 billion Australian dollars (38 billion US dollars) over the next decade. The defense budget will rise from 2.8 percent of GDP to 3 percent by 2033.

Marles stated that Australia faces its most complex and threatening environment since World War II. He emphasized that the decision was not made under external pressure, but based on current strategic realities. The announcement follows a January call from the US Department of Defense urging allied nations to take greater responsibility for their own security.

A major portion of the new investment will fund a fleet of nuclear-powered submarines under the AUKUS security pact with the United States and the United Kingdom. Through this initiative, Australia aims to reinforce its position amid global instability and geopolitical shifts linked to the ongoing conflict involving Iran.