Overview
- The Albanese government released the 2026 National Defence Strategy and a decade‑long A$425 billion investment program on Thursday, adding A$14 billion over four years and A$53 billion over ten years while adopting a NATO-style measure to reach 3% of GDP by 2033.
- The plan prioritises nuclear-powered submarines under AUKUS, a more lethal navy, long‑range strike, air and missile defence, autonomous and counter‑drone systems, and resilient satellite communications.
- To speed delivery, Defence will stand up a new Defence Delivery Agency, tap private capital and estate sales, and shift money from lower‑priority programs, with reporting pointing to cuts such as retiring the C‑27J Spartan fleet.
- Maritime programs dominate the next decade, with an estimated A$71–96 billion for the nuclear‑powered submarine program, larger shares of funding for the navy, and higher local spending on missile manufacturing and missile defence.
- The shift to the NATO definition, which counts items like veterans’ pensions, drew opposition claims of “accounting tricks,” while officials said it allows fair comparisons and analysts noted the traditional method would show a lower GDP share.