Australia’s defence spending is projected to grow from $44.6bn in 2026 to $56.2bn by 2030, according to forecast by data and analytics company GlobalData.
This increase, representing a compound annual growth rate of 5.9%, is largely attributed to the AUKUS security partnership between Australia, the UK, and the US.
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GlobalData’s latest publication, “Australia Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2025–30,” details this planned expenditure, highlighting cumulative growth in defence acquisition and research and development budgets from $10.2bn in 2021 to $11.4bn in 2025.
The report notes that spending on operations and maintenance is expected to rise from $14bn in 2026 to $17.4bn in 2030, indicating the rising demand of sustainment, infrastructure, and equipment upkeep.
GlobalData aerospace and defence analyst Akash Pratim Debbarma said: “AUKUS is a defining driver of Australia’s defence trajectory. The partnership not only enables the acquisition of nuclear-powered attack submarines (SSN) but also catalyses broader modernisation across maritime, air and land domains. The SSN programme, built in close cooperation with the UK and US under AUKUS, will require significant new infrastructure and sustainment investment.”
As per the data, funding for the SSN programme is set to increase from $2.4bn in 2025 to $5bn in 2030 as preparations for the future fleet continue.
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By GlobalDataSeveral programmes are reshaping Australia’s force structure and domestic industrial base, including those related to SSNs, Hunter-class frigates, F-35 sustainment activities, MQ-4C Triton UAVs, and new land vehicles.
Recent incidents involving Australian and Chinese forces at sea and in the air have led Australian policymakers to emphasise the need for enhanced maritime surveillance and deterrence capabilities.
Concurrently, both Australia and its partners are investing in expanding processing capacity for critical minerals and defence supply chains outside China.
“Rising US–China rivalry and China’s military assertiveness are contributing to a complex security landscape in the Indo-Pacific. Australia’s reliance on alliances like AUKUS, combined trade dependencies with China and climate-related domestic vulnerabilities, are shaping its defence priorities and risk assessments,” Debbarma added.
In September 2025, the Australian Government invested A$1.7bn ($1.12bn) on a new fleet of extra-large autonomous undersea vehicles (XL-AUVs) intended for the Royal Australian Navy (RAN).
