The wealthiest person in Australia has made headlines with a stirring call for a significant national defence spending increase.
Her proposal, delivered during an emotional Anzac Day vigil, suggests that Australia should more than double its current defence budget to five per cent of its gross domestic product (GDP).
This bold statement comes at a time when global tensions are rising, and the security landscape is rapidly evolving.
As we reflect on the sacrifices made by past generations, particularly on Anzac Day, it’s essential to consider the future of our nation’s defence.
Gina Rinehart’s speech highlighted the importance of safeguarding Australia’s ports, airports, sea lanes, and other critical infrastructure.
‘It is my belief we urgently need to do more to defend Australians, starting with protecting our ports, airports, sea lanes and other vital infrastructure, and significantly boosting our smart sea mines, war drones and Israeli-style (ballistic defence) domes accordingly,’ she said.
Under the Labor government, Australia allocates 2.02 per cent of its GDP to defence, with plans to increase this to 2.3 per cent by 2034.
In contrast, the United States spends about 3.4 per cent of its GDP on defence. The Coalition, led by Peter Dutton, has pledged to raise defence spending to 2.5 per cent of GDP by the end of the decade, with a long-term goal of reaching 3 per cent by 2035.
Rinehart’s call for a five per cent GDP allocation to defence would surpass the proposals of both major political parties and place Australia among the few countries worldwide that dedicate such a substantial portion of their economy to military spending. This level of expenditure has not been seen in Australia since the Korean War in the 1950s.
The implications of such a dramatic increase in defence spending are far-reaching. It would require a significant reallocation of resources and could impact other areas of public expenditure.
The question of how the government would afford this surge in defence funding remains unanswered. Rinehart’s speech alluded to the wealth and opportunities created by previous generations, suggesting that these are now at risk from external threats.
The Coalition’s plan to reach a three per cent GDP defence budget would already cost an estimated $100 billion in the first half of the 2030s.
Dutton has indicated that the Coalition would begin by repealing Labor’s marginal tax cuts, set to take effect from mid-2027, to help fund the increase.
Defence Minister Richard Marles has noted that the Albanese government has budgeted for the most significant peacetime increase in defence spending in Australian history.
He acknowledged the unpredictable global environment and the complex threats Australia faces: ‘We certainly agree that the world is an unpredictable place, and that our strategic circumstances are as complex and in some respects, as threatening as we have faced since the end of the Second World War.’
Rinehart’s proposal has sparked a national conversation about the level of investment Australia should make in its military capabilities.
As we honour the legacy of the Anzacs, it’s crucial to engage in a thoughtful dialogue about the best path forward for our national security.
The debate over defence spending is not just about numbers; it’s about the values we hold dear and the kind of future we envision for Australia.
As we consider Rinehart’s call to action, it’s essential to weigh the potential benefits of a fortified defence against the economic and social trade-offs.
The discussion is not merely about responding to immediate threats but also about long-term strategic planning and investment in the nation’s security.
We invite our readers to share their thoughts on this significant issue. How do you feel about the proposed increase in defence spending? What do you believe are the priorities for Australia’s military in the current global climate? Join the conversation and let us know your perspective on this critical topic for our nation’s future.
Also read: Veteran reflects on ‘futility’ of war as he prepares for his final Anzac Day march
Does this mean she and her wealthy friends are prepared to pay more tax? I bet not.
I agree, our commitment to the armed services has been woeful over the past decades. Let the government bring our level of GDP higher and faster.
However, there is another way to assist our armed forces. How about Gina dipping into her grossly overstuffed piggy bank, and donate a couple of billion dollars to the defence force equipment arsenal. Together with all the the other self important billionaire, penny pinching citizens of Australia. Donate 25% of your bank balance, it wont have ANY DEPRCIATEING AFFECT on you status and/or life style, and reinforce our nation against outside political and military enemies. Do your part as most low and moderate earners do with their tax money
Gina wants to protect her empire re trade routes etc. If she paid her fair share of tax she might have a leg to stand on.
There are over 60,000 on the dole for over 10 years. Maybe sending them to military service will be a win win – saving on long term welfare to plug shortfalls in defence recruiting?