The cost of defence: ASPI Defence budget brief 2025–2026
Australia faces a perilous strategic environment with multiple threats overlapping and, in some cases, converging. The security challenges that Australia faces cannot, and should not, be borne by the Department of Defence and Australian armed forces alone. Australian governments have partitioned Australia’s security and failed to deliver a comprehensive approach to national security. This report examines the government’s national security spending as a whole.
The report examines the government’s progress with, and spending on, the 2024 National Defence Strategy. It also examines whether the government is giving enough attention to the nation’s preparedness and resilience. Within the defence context, national resilience underpins national preparedness. It analyses whether the government is too focused on future equipment acquisitions, rather than the preparedness and readiness of the current force.
Recommendations
- Enhancing deterrence and strategic posture.
- Increased defence funding and reprioritisation.
- Reform defence risk profiles, policies and practices.
- Improved transparency, reporting and messaging.
- Accelerated capability acquisition.
- Workforce development and retention.
- Strengthening sovereign defence industry.
- Enhanced alliances and regional partnerships.
