The Voice News: Canberra, June 2, 2025 —
The United States has formally urged Australia to significantly increase its defense expenditure, calling for military spending to rise to 3.5% of GDP, a notable escalation from Canberra’s current commitment of 2.4% by the mid-2030s.
The appeal was made by US Secretary of Defense Pete Hegseth during a bilateral meeting with Australian Deputy Prime Minister and Defence Minister Richard Marles in Virginia last Friday. The request underscores growing anxiety in Washington over China’s expanding military capabilities and the prospect of a potential conflict over Taiwan.
Speaking earlier at the Shangri-La Dialogue, a premier regional security summit in Singapore, Hegseth called on Washington’s Indo-Pacific allies to “match rhetoric with resources” and bolster their defense readiness. “We’re entering a decisive decade,” Hegseth warned. “A free and open Indo-Pacific requires sustained commitment and credible deterrence.”
Australia, a key member of the AUKUS security pact alongside the US and UK, has been steadily modernizing its defense forces, including the procurement of nuclear-powered submarines and long-range strike capabilities. However, jumping to 3.5% of GDP would represent a dramatic shift in national budget priorities—potentially sparking domestic debate over economic trade-offs and strategic autonomy.
Addressing media queries after the meeting, Minister Marles acknowledged the US request but maintained that any defense budget changes would be decided based on “Australia’s sovereign assessment of its strategic needs.” He emphasized that Canberra remains committed to strengthening deterrence while balancing fiscal responsibility.
On a related front, Marles clarified that the US is not pressuring Australia to find a new operator for the Port of Darwin, currently under a 99-year lease to Chinese company Landbridge Group. However, he noted that Canberra continues to encourage Landbridge to divest, in light of national security reviews and growing concerns over Chinese commercial influence in critical infrastructure.
The US request comes as the Indo-Pacific region faces heightened geopolitical uncertainty, with the Taiwan Strait increasingly viewed as a potential flashpoint. Washington’s renewed push for allied defense investments signals a shift toward more assertive burden-sharing diplomacy in the face of shared regional threats.