Gov ScoreAustralia

Condition

Defence spending

Is Australia spending enough on defence in a more dangerous region?

Defence spending: 1.98% in 2021-22, 2.13% in 2025-26.

Download imagePortrait for Instagram
Latest (Budget estimate)
2.02%of GDP on defence (traditional budget measure) · 2026-27 Budget
Since the government took office
little changed+0.15 pts1.98% → 2.13% (2021-22 → 2025-26)How much to spend on defence is a political judgement, so the direction isn’t coloured.
Over the past year
little changed+0.10 pts2.03% → 2.13% (2024-25 → 2025-26)

Defence funding, % of GDP

  • Share of GDP
  • Budget-time estimates

This series starts in 2021-22, so this shows its full history.

Budget-time figures as reported by defence analysts (2025-26 estimated actual; 2026-27 budget). Traditional appropriation measure.

What this is

How much the Commonwealth spends on the Australian Defence Force and the Department of Defence, as a share of the economy. Figures vary by method: the 'NATO approach' counts extra items such as some veterans' and security spending.

Why it matters

Allies and defence analysts have warned that Australia's strategic environment is the most dangerous in decades. Spending as a share of GDP is the standard way to compare commitment over time and across countries.

More from the figures

  • On the traditional budget measure, defence funding was 1.98% of GDP in 2021-22, 2.03% in 2024-25, and is 2.02% in 2026-27 ($62.6 billion).
  • In April 2026 the government said defence spending would reach 3% of GDP by 2033 'under the NATO approach', which counts more items than the traditional measure.
  • In June 2025 the Pentagon said Australia should increase defence spending to 3.5% of GDP 'as soon as possible'.

How it’s calculated

Defence funding as a share of GDP on the traditional budget appropriation measure, as calculated and reported by defence budget analysts at each Budget. Defence's own budget statements publish dollars only.

Related