Australia Accelerates $1B Defence Spend to Boost Missile, Submarine Capabilities

Australia will fast-track A$1 billion in defence spending as part of a broader A$10.6 billion boost over four years, Defence Minister Richard Marles announced at the Avalon Air Show. The spending, set to be unveiled in Tuesday’s federal budget, is aimed at enhancing military capabilities, including guided weapons production, a new submarine base, and accelerating a frigate program.

This move comes amid rising pressure from the U.S., especially under President Donald Trump, for allies to increase defence investments. The funding is part of a decade-long A$50 billion defence strategy, the largest since World War II.

Key initiatives include preparing HMAS Stirling and the Henderson Defence Precinct in Western Australia for the AUKUS-led Submarine Rotational Force West, which will see up to four U.S. and one British nuclear-powered submarines rotating through the base starting in 2027. Australia will also advance its Guided Weapons and Explosives Enterprise to ramp up domestic missile manufacturing.

Australia has received its first two High Mobility Artillery Rocket Systems (HIMARS) from Lockheed Martin, part of a 42-unit order. Production of guided multiple launch rocket systems (GMLRS) will also commence locally this year, enhancing Australia’s long-range strike capabilities.

The HIMARS, praised for its battlefield success in Ukraine, provides rapid deployment and regional mobility via air and sea. Defence Industry Minister Pat Conroy confirmed Australia will also receive Precision Strike Missiles this year, capable of striking targets up to 500 kilometres away.

This strategic investment aims to strengthen Australia's military presence and self-reliance amid growing geopolitical tensions, while reinforcing its commitment to regional security under the AUKUS partnership.