Australia

For the 2016-17 budget, the Australian government announced in May of 2016, it was to provide its defence with 32.3 billion AUD for the running fiscal year and 142.9 billion AUD across the four-year Forward Estimates. The Australian Government further reaffirmed its commitment to progressively grow the defence budget to 2% of the GDP, at some 42.4 billion AUD, in 2020–21. The country’s defence expenditures for the last two decades (1996-2015) have basically ranged from around 1.7 % to some 1.9 % of the GDP.

The Australian Defence Force (ADF) consists of the Royal Australian Navy, the Australian Army, the Royal Australian Air Force and a number of tri-service units. Some 80,000 men and women (Permanent & Active Reserve) are enlisted in the Australian Defence Force, which is an all-volunteer force.

Australia has signed three formal military agreements; the ANZUS with the United States (which also binds separately New Zealand and the US to co-operate on military matters in the Pacific Ocean region), the Closer Defence Program with New Zealand and the Five Power Defence Arrangements with Malaysia, Singapore, New Zealand and the United Kingdom.

The Australian government has affirmed during 2016 in the various strategic documents it released, its determination to support a sizable defence budget which will ensure that the armed forces will be able to deliver and further improve upon their core capabilities, for years to come. Specifically, for the 2016-17 budget, the Australian government announced in May of 2016, it was to provide its defence with 32.3 billion AUD for the running fiscal year and 142.9 billion AUD across the four-year Forward Estimates. The Australian Government further reaffirmed its commitment to progressively grow the defence budget to 2% of the GDP, at some 42.4 billion AUD, in 2020–21. The country’s defence expenditures for the last two decades (1996-2015) have basically ranged from around 1.7 % to some 1.9 % of the GDP.

The Australian Government has identified shipbuilding as the strategic direction with the most pressing associated needs on the part of the Armed Forces and indicatively has announced the Naval Shipbuilding Strategy which entails:

  • The local production of 12 submarines as part of the “Future Submarine” programme, the largest defence acquisition undertaken by the Australian Defence Industry ever, at an estimated value of  50 billion AUD (contractually finalised in December 2016, in favour of the French company DCNS);
  • A 3 billion AUD Offshore Patrol Vessel programme (known as Sea 1180 programme, as part of which 12 such vessels are to be constructed);
  • A 35 billion AUD Future Frigates programme (known as the Sea 5000 programme, as part of which 9 new frigates are to be built);
  • Some 400 million AUD (whole-life cost), for up to 21 new steel-hulled Pacific Patrol Boats (under the programme known as Sea 3036).

Furthermore, it is worth noting that in 2016, the Government committed more than 13 billion AUD to new defence capabilities, including:

  • 1,100 locally built Hawkei protected vehicles and more than 1,000 trailers to strengthen the land combat capability of its Armed Forces. The Hawkei will improve protection for soldiers and enable them to operate in high‑risk areas.
  • A new Australian Defence Force Pilot Training System, which includes the acquisition of 49 Pilatus PC-21 aircraft and seven Flight Simulators.
  • An upgrade to the next generation of military communications for the Australian Defence Force, to support the deployment of operational headquarters and enable access to Defence’s strategic networks.
  • Two additional Airbus KC-30A Multi-Role Tanker Transport aircraft, to bolster the Royal Australian Air Force’s existing fleet of five.
  • Four additional Boeing P-8A Poseidon maritime surveillance and response aircraft.
  • New Austeyr EF88 rifles (the enhanced F88) and advanced ancillary devices, to improve effectiveness for soldiers involved in close combat and their immediate support elements.

According to the Stockholm International Peace Research Institute (SIPRI), Australia’s defence exports in 2016 amounted to $127 million (in SIPRI Trend Indicator Values, at constant 1990 prices). Regarding defence imports, Australia is one of the largest arms importers, ranking 5th globally for the 2011-2015 period, behind India, Saudi Arabia, China and the UAE.

Australia’s major arms imports since 2010 regard mainly aircraft, ships and missiles. In terms of import value, the country’s top suppliers are the United States, Spain, France, Italy, Germany, and the United Kingdom. On the other hand, regarding arms exports over the same period (2010-2016), Australia exported mostly ships and aircraft related articles, to countries such as the United States, Indonesia, Singapore, New Zealand, Oman and India.