Australia denies its multi-billion-dollar spending boost for WA shipyards is about appeasing the Trump administration, as defence analysts warn billions more will be needed.
The Albanese government unveiled $12 billion for the Henderson Defence Precinct in Perth, where the nuclear submarines Australia has been promised under the AUKUS security pact will be able to dock.
Uncertainty clouds the nuclear submarine deal, which is being reviewed by the US.
However, US media reports Secretary of State Marco Rubio has provided assurances the deal will proceed.
The Trump administration is pressuring Australia to increase its defence spending to 3.5 per cent of gross domestic product.
Under the $386 billion agreement, Australia will acquire at least three nuclear-powered Virginia-class submarines from the US in the early 2030s before a new fleet of boats is built for delivery from the 2040s.
The increase was about bolstering Australia’s capabilities, not satisfying the US, Defence Minister Richard Marles said.
“It’s also going to be the basis upon which we sustain and maintain our future submarines and that is critically important for the country,” he told Nine’s Today program on Monday.
“What we’re focusing on is the actual dollars that you spend on defence.”
Australia’s defence spend as a share of GDP is about two per cent, with the government pledging to increase it to 2.3 per cent by 2033/34.
Australian National University expert associate Jennifer Parker said a more substantial spending boost would be needed before the next federal budget.
“That’s not a large lift to the defence budget, but it’s important that it does demonstrate that the government is willing to increase the defence budget where it sees a need,” she told AAP.
“I do not think that this very small lift in the defence budget over the next 10 years will satisfy the US.
“We will have to go much further, and not only for the US … because we don’t have the capabilities that we need.”
Opposition defence spokesman Angus Taylor welcomed the announcement but said Australia needed to spend more on defence.
“We need to see defence get to three per cent of GDP – that’s about an extra $25 billion a year currently in spending,” he told ABC Radio.
The coalition went to the last federal election pledging to lift defence spending to three per cent.
Mr Taylor did not say how the coalition would fund the increase.
Prime Minister Anthony Albanese could meet US President Donald Trump later in September on the sidelines of the United Nations General Assembly meeting, where he will likely seek assurances about the future of the AUKUS trilateral agreement.
Former Australian Ambassador to the US Arthur Sinodinos noted the significance of announcing the boost before a possible meeting with Mr Trump.
“The timing would be pitched to lay the groundwork and have something to put on the table with the president,” he told AAP.
In return, Mr Albanese would seek assurances of support for AUKUS from the president, Mr Sinodinos said.