Increasing defense spending over the next few years will be a major challenge for the new federal government, with many powerful projects consuming billions of dollars.
The warning comes in the Australian Strategic Policy Institute’s (ASPI) annual report released this week on military spending.
Australia’s defense budget for 2021-2022 was $ 48.6 billion, or 2.11% of GDP.
Defense budget management will be a major challenge for the new Labor federal government, according to a report. (AAP)
The figure, which included the Australian Department of Defense and Signal Management, is equivalent to a daily cost of $ 133,191,781, according to the report.
National security was a major issue during this year’s federal election campaign, with the former coalition government accusing Labor of being soft on defense and having a history of military spending cuts.
“Megaprojects involve great risks”
But Labor leader and new Prime Minister Anthony Albanese insisted that a government he would lead would increase the defense budget, with better management of expensive projects.
But that could be a difficult task for the federal government, according to the report.
He said the Australian Defense Force was improving, but warned of the risks of a defense budget designed around “megaprojects”.
“These projects take years or decades to design and deliver, while spending large amounts for few short-term benefits,” the report says.
The former coalition government ruled out the Future Submarines project with a French company after Australia joined the AUKUS defense pact. (Naval Group) (Naval Group)
“When they encounter problems, those problems are big.”
At the forefront of these is the AUKUS agreement under which Australia will acquire a fleet of nuclear-powered submarines by accessing US and British technology.
The Morrison government’s move led to the controversial dismissal of an agreement to acquire conventional French-designed submarines.
The nuclear submarine project will cost “significantly more” than the canceled $ 90 billion French project, according to the ASPI report.
While nuclear submarines, which are expected to enter service in 2030, had “the potential to offer a large increase in submarine warfare capability,” the risk of a major cost explosion was significant.
“China can reach anywhere in the region”
The report also highlighted the important role played by China’s growing assertiveness in the Pacific region in shaping Australian defense planning.
He pointed to incidents in recent months involving the People’s Liberation Army in our region, such as its “state-of-the-art” naval surveillance ships passing through the Arafura Sea and the Torres Strait to the north. of Australia and the laser launch of an Australian surveillance aircraft. by a Chinese warship.
China has the largest navy in the world and can reach any part of Asia Pacific. (AP)
The report said these incidents were to be a reminder to Australia and other countries that the PLA Navy is now the largest in the world and “can reach anywhere in the Indo-Pacific”.
In another show of Chinese military assertiveness, one of its fighter jets carried out an interception of a Royal Australian Air Force surveillance aircraft in the South China Sea, described this week as “dangerous” by the government. federal.
Albanese showed how serious the issue is of rising Chinese power by flying to Tokyo just hours after he was sworn in last month to attend the Quad Summit with leaders from Japan, the United States and India. .
Shortly afterwards, Foreign Minister Penny Wong began the first of two visits to the Pacific as her Chinese counterpart toured the region and signed a dozen bilateral agreements, but failed to reach an agreement. security and trade with 10 countries.
Countries with the highest military spending in the world
Wong pledged to work to improve relations with the Pacific countries and “make a unique contribution from Australia” to the region.