The Government has approved the acquisition of core ADF capabilities for decades to come, including the Joint Strike Fighter ($12.4 billion) and the P-8A Maritime Patrol Aircraft ($4 billion). The Government will soon consider Defence’s plan to progress the Future Submarine to ensure it is achievable and balances cost, capability and risk. We will ensure that Defence is investigating all appropriate options and is drawing on private sector expertise in order to successfully deliver this complex project. Work in Australia on future submarines will centre around the South Australian Shipyards. (photo : US Navy)

Australia's defence spending for the 2014-15 financial year will rise by AUD2.3 billion (USD2.14 billion) to AUD29.3 billion, a real increase of 6.1%, the government announced in its annual budget statement on 13 May.

As a share of gross domestic product (GDP), expenditure will rise from 1.7% to 1.8%, in line with the government's pledge to boost defence funding to 2% of GDP by 2023-24.

Funding is forecast to remain largely static in real terms over the following two years before rising to nearly AUD33 billion in 2017-18.

Administrative reforms over the next four years will save an estimated AUD1.2 billion, all of which will be reinvested in defence capability.depence