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Home » Budget 2025: The government will advance $1 billion in defense spending, is that new money?
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Budget 2025: The government will advance $1 billion in defense spending, is that new money?

adminBy adminMarch 24, 2025No Comments3 Mins Read0 Views
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Guided weapons manufacturing, Orcus Submarine Base and Frigate Program are one of the initiatives to be announced by Richard Marless during the budget.

The Australian Labor Government will file a $1.2 billion defence spending announced in the federal budget on March 25th.

The revelation came when he visited the Avalon Air Show at an improvised press conference with Defense Minister Richard Marles.

Australia and other allies are under pressure from US President Donald Trump to increase defense spending.

Marles paid a $500 million down payment in February on a $368 billion Aukus Submarine deal, but the government is keen to ensure it surpasses defence spending by more than 2% of its GDP benchmark, following comments from defense general candidate Elbridge Colby for policy.

But with elections looming under all decisions and pressure from the government to ease the cost of living, substantial new spending on defense has less to reach out to slump voters, so instead, Treasury Secretary Jim Chalmers is part of the $5 billion announced at over $50 for $1.06 billion.

So, by making money from future budgets and spending it now, Chalmers and Marless hope that the right signal will be received in the White House, but the domestic focus is on the relief offered to voters.

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“We believe that a portion of the $10.6 billion is investing an additional $1 billion, because Australia needs to accelerate its capacity development,” Marles said.

Guided weapons, submarine bases and first frigates

The funds will be spent on improving Australia’s military capabilities, including local production of guided weapons, construction of auricle submarine bases and a frigate construction program.

Marles said submitting a $1 billion spending will ensure that the first phase of HMAS Sterling’s submarine rotating power base in Fremantle will be ready for 2027.

It also secured the “beginning of guided missile production in Australia this year,” and the country will own the first general-purpose frigate for “the past decade.”

Marless remained bright on Orcas’ timetable despite many questionable people, including former liberal leader Malcolm Turnbull.

“Through the acquisition of Virginia-class submarines, there will be a new Australian-style submarine in the early 2030s, not the early 2040s,” he said.

“And that goes a long way in closing the capabilities gap of submarines we have inherited from the Liberal Party.”

When asked about the new Mobility Artillery Rocket System (HIMARS) launcher vehicle that began arriving in Australia on March 24, Marles said the unit would allow the Army to project missiles “on a very protected mobile” in dozens of kilometers.

Hima can be deployed on an aircraft or ship, then can move through the land very quickly, saying “the person detecting the source of the fire, that source is not there anymore.”

“This is transformative in terms of the Army’s ability to launch missiles, both in terms of scope and mobility.”

The minister said he is opposed to massive defense spending, including those who disrupt the Arms Expo in Melbourne last year.

“The very few people trying to confuse this are actually horrifying behaviours that we have seen, not by coming up with their own ideas, but simply by engaging in acts of vandalism and confusion,” he said.



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