US asks Australia to increase defence spending to 3.5% of GDP

The defence chiefs’ meeting in Singapore was only the second between the security allies since Trump took office

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US Defence Secretary Pete Hegseth (left) and Australia’s Defence Minister Richard Marles, on the sidelines of the Shangri-La Dialogue defence summit in Singapore on Saturday. Photo: EPA-EFE

Published: 2:36am, 2 Jun 2025Updated: 11:41am, 2 Jun 2025

Australia’s prime minister said on Monday that his government would decide its defence capability needs before announcing defence spending, after US Defence Secretary Pete Hegseth asked Canberra to lift its defence budget to 3.5 per cent of gross domestic product.

“What you should do in defence is decide what you need, your capability, and then provide for it,” Prime Minister Anthony Albanese told reporters, adding his government had already committed to accelerate A$10 billion (US$6.4 billion) in defence spending for the next four years.

“We’re continuing to lift up,” he said, citing a 2.3 per cent goal for 2033 previously set by his government.

Hegseth and Australian Defence Minister Richard Marles discussed security issues including accelerating US defence capabilities in Australia and advancing industrial base cooperation during a meeting on Friday, a Pentagon statement said on Sunday.

“On defence spending, Secretary Hegseth conveyed that Australia should increase its defence spending to 3.5 per cent of its GDP as soon as possible,” the statement said.

Australian Prime Minister Anthony Albanese pictured in Jakarta last month. Photo: AFP

The ministers’ meeting in Singapore on the sidelines of the Shangri-La Dialogue, Asia’s premier security forum, is only the second between the security allies since US President Donald Trump took office in January.

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