However, only four cents to the dollar of that\u00a0$53 billion\u00a0kitty has been approved for spending in the next\u00a0financial year.\u00a0\u00a0<\/p>\n
The remaining 96 per cent of the spend\u00a0lay\u00a0in forward\u00a0estimates\u00a0promises.\u00a0\u00a0<\/p>\n
It equates to a dip in whole-of-government spending of about $799 million in nominal terms for the next year before growth picks up in 2027-28.\u00a0<\/p>\n
![\"Australia\u2019s](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/81cb21ea80f5c79fdf3358d42c867f53.jpeg\")
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Mr Hughes said the institute held concerns that the government\u2019s spending would not land until Australia was in the midst of potential conflict.\u00a0<\/p>\n
“The government is currently investing in a massive transformation of the Australian defence force \u2013 a lot of those high-end capabilities… we can\u2019t buy those overnight,” he said.\u00a0\u00a0<\/p>\n
“However, the government\u2019s own strategy… correctly identifies we\u2019re living in a strategic environment where the word \u2018deterioration\u2019 is no longer fit to describe it and the most dangerous period for us is indeed the 2030s.\u00a0\u00a0<\/p>\n
“We have some concern that most of the spending that the government is currently spruiking isn\u2019t going to land until the very dangerous period that the government is talking about.”\u00a0<\/p>\n
Speaking to Sky News on Thursday, shadow defence minister James Paterson criticised Labor over its defence spending.<\/p>\n
\u201cASPI has blown just another hole in Richard Marles\u2019 spin when it comes to the\u00a0defence\u00a0budget,\u201d he said.\u00a0\u00a0<\/p>\n
\u201cIf Richard Marles is serious about the strategic environment that we face, the dangers that we face as a country, he should match his rhetoric with reality and actually fund the ADF how they need to be funded.\u201d\u00a0<\/p>\n
Senate Estimates on Wednesday night revealed financing arrangements for an\u00a0additional\u00a0defence\u00a0spend were incomplete.\u00a0<\/p>\n
Under questioning from Senator Dave Sharma, Finance Minister Katy Gallagher conceded decisions around public versus alternative financing \u2013 including private equity \u2013 had not been made.\u00a0\u00a0<\/p>\n
\u201cWhen it says alternative financing, that\u2019s different to regular defence funding like on the budget… and there could also be private capital?\u201d Mr Sharma asked.<\/p>\n
Ms Gallagher responded, \u201cthere could be\u201d.\u00a0<\/p>\n
\u201cNone of those decisions have been finalised,” she said.\u00a0<\/p>\n
In announcing\u00a0the IIP and NDS\u00a0plans in April,\u00a0Mr\u00a0Marles said Australia\u00a0had to prepare for a \u201cmuch more contested environment\u201d.\u00a0\u00a0<\/p>\n
\u201cWe will accelerate the introduction of air and missile\u00a0defence\u00a0capabilities, including new investment in a medium-range, ground-based air\u00a0defence\u00a0system,\u00a0recognising\u00a0the increasingly contested air and missile environment,\u201d\u00a0Mr\u00a0Marles said.\u00a0\u00a0\u00a0<\/p>\n
He also suggested a wish to tighten Australia\u2019s sea\u00a0defences.\u00a0<\/p>\n
\u201cAs an island trading nation our sea lines of communication literally define our national security… the geography of our national security lies well beyond our coastline or even our immediate waters,” he said.<\/p>\n
“We therefore need a defence force that can be out there: that can engage in impactful projection.”<\/p>\n