Dutton says the coalition will fund the defense plan by turning its repetitive spending by workers to x, including three stages of tax cuts.
Coalition leader Peter Dutton pledged a $21 billion increase in military funds and vowed to dramatically lift spending if the party wins the federal election on May 3.
Opposition leaders have said spending is essential to addressing global instability, warning that Australia faces the most uncertain security environment since World War II.
Under the coalition’s plan, defense funding will increase from 2% to 2.5% of GDP over the next five years.
By 2035, that figure had risen to 3% of GDP, and by 2034 it was well above 2.4% of workers.
Speaking in Perth, Dutton said the proposed boost would allow Australia to meet future threats with strength and determination.
“We need to make sure we can look at whatever we stand up to over the next few decades,” he said.
Funding Plan: AX workers’ tax reduction
To pay for the additional defence spending, Dutton said that if the coalition scrapped repeated workers’ expenses, he would scrap the three-stage tax cuts he described as financially irresponsible.
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“We’re not going for a 70 cents a day tax cut, which is about $7 billion a year,” he said.
“Workers are locking forward estimates at $28 billion. Our plan is reassigning them to defense.”
He argued that workers’ tax policies would burn at a continuing annual cost of $7 billion, but he argued that the coalition’s plans were targeted, temporary and focused on strategic priorities.
Dutton said the coalition will adopt a responsible budgeting approach and draw lessons from economic management in the Covid era.
“During Covid, we provided JobKeeper, Jobseeker and other measures to keep our business alive, but we didn’t burn that spending, which was temporary.
He said the announcement is timed to assess the budget later in the campaign and to commit responsibly to defensive spending.
A dangerous 10 years ahead
Dutton said the intelligence briefing he received while serving as Defence Minister shaped his view that conflicts will be seen in the Indo-Pacific, Europe and the Middle East for the next decade.
“This is not the time to put the Labour Green Government at risk,” he said.
He said increasing military capabilities not only protects the country, but also supports long-term growth in Australia’s defense industry.
When asked directly whether communist China is pushing for the proposed increase in funding, Dutton said, “The Chinese Communist Party is a very different China. We have ambitions about Taiwan. Navy blockades are not out of the question, and our defense experts are warning about it.”
He also pointed to rising tensions in Europe, saying that Russia’s invasion of Ukraine raised fears that further aggression could target NATO members.
“Political Theatre”: Labor
The Albanese government has rejected the announcement as a “political theatre.”
“There is no explanation for how money is being raised, there is no explanation for where it is being spent,” Defense Minister Richard Marles said.
“Throw big numbers into the discussion without a plan. That’s not a defensive strategy.”
Marles said the current trajectory of workers has already lifted defensive investments to 2.4% of GDP over the course of a decade, and claims that the government’s approach is financially responsible and based on long-term plans.
Not just payments, but retention tied to purpose
But Shadow Defense Minister Andrew Hastie accused Labour of weakening Australia’s military capabilities through delays and cuts worth $80 billion.
“They cut down on the infantry combat vehicle program, two supply vessels and the 4th Squadron of the F-35,” he said. “They are busy cutting and weakening this country.”
Hasty said the coalition’s 3% GDP target in defence spending over the next decade reflects the severity of the global threat landscape.
Labour has revised its own figure to 2.3%, he noted.
He warned that military recruitment and maintenance is in crisis, citing figures showing that nearly 90% of applications last year were withdrawn before completion.
Asked how the coalition deals with recruitment and retention, Dutton said that pay reviews are possible, but the real key was to restore a sense of mission.
“People join defense to serve. They don’t want to be stuck on projects that don’t go anywhere,” he said.
“We want to reinvest in these programs to support defence families and give people a reason to stay. That’s how we keep skilled personnel in our uniforms.”
