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Treasurer Jim Chalmers has officially handed down his third budget, with an emphasis on cost-of-living and combating inflation, but how much of what was announced a few weeks ago with the National Defence Strategy and Integrated Investment Program has translated for Defence?
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Building on the recently released National Defence Strategy and Integrated Investment Program which highlighted a major uplift in defence spending, worth $330 billion over the next decade to 2033-34.
Join Defence Industry Minister, the Hon Pat Conroy and a host of other policymakers and industry leaders as they unpack the newly announced Federal Budget make sure to book your tickets for the Defence Connect Budget Summit 2024 this Friday, May 17 at Parliament House in Canberra.
The Government's media release stated that, "The 2024-25 Budget sees Defence funding increase to $764.6 billion over the decade to support a more capable and self-reliant Defence Force that can safeguard Australia’s security into the future."
This was then seemingly undone however in the next paragraph, where the Government's release stated, "At the centre of the Albanese Government’s renewed investment in Defence is the allocation of $330 billion over the decade to 2033-34 for the rebuilt Integrated Investment Program – a significant lift compared to the $270 billion allocated as part of the 2020 Defence Strategic Update and 2020 Force Structure Plan."
The Government announced a list of "known-knowns" already previous announced with the launch of the National Defence Strategy and Integrated Investment Program, including an additional $5.7 billion over the forward estimates and an additional $50.3 billion over the next decade.
Expanding on this, the Government will include $11.1 billion over the decade to support the Government’s response to the Surface Combatant Fleet review, providing a larger and more lethal surface fleet, and an additional $1 billion over the next four years to accelerate ADF preparedness including long-range strike, targeting and autonomous systems.
Deputy Prime Minister and Defence Minister, Richard Marles said, "This Albanese Government is making the biggest commitment to increasing Defence funding over the forward estimates in decades. National security is a big focus of the Albanese Government and it’s a big focus of the Budget."
The Budget identified a number of "2024-25 budget initiatives, including:
- $81.9 million towards defence industry for critical jobs, including for scholarships, attracting and recruiting apprentices under the Shipbuilding Employment Pathways Initiative, supply chain support and uplifting the defence industrial workforce.
- $166.2 million over five years from 2023-24 in grants to support small and medium businesses and local defence industry as part of the Defence Industry Development Strategy.
- $28 million over 2024-25 to 2027-28 to implement reforms under the Defence Trade Controls Amendment Act 2024, including to support industry engagement and accelerate trade between AUKUS partners.
- $232.3 million of international military support and assistance activities between 2023-24 and 2024-25, including $144.3 million in additional military support to Ukraine.
- $17.5 million to establish a new Parliamentary Joint Committee on Defence to enhance parliamentary oversight and understanding of Defence’s role in responding to Australia’s challenging strategic environment.
Minister for Defence Industry, Pat Conroy said, "In rebuilding the IIP, the Government is delivering the capabilities the ADF needs to make Australians safer and at the same time strengthening our sovereign defence industry to deliver jobs and a future made in Australia."
This spending package will see Defence funding as a proportion of Gross Domestic Product reach over 2.3 per cent by 2033-34, meaning the nation's defence spending is tipped to hit $100 billion by the end of the decade.
More detailed break downs and analysis, including a closer look at the Portfolio Budget Statements (PBS) will be released over the coming days.
