Lyla Lindsey
Australia and the United States have a long history of military cooperation, with Australians and Americans fighting side by side in every major U.S. military conflict of the past century. This partnership was formalized with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which remains the foundation of their security relationship. The two countries have multiple agreements in place to support combined military operations, defense research, and other projects. The U.S. has recently demanded that Australia increase its defense spending by $40 billion a year, citing the need to counter China's growing influence in the Indo-Pacific region. This has sparked debate in Australia, with some arguing that the country should resist U.S. pressure and determine its defense spending levels independently.
| Characteristics | Values |
|---|---|
| Security Cooperation | The US and Australia have a close security partnership formalised by the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951. |
| Military Cooperation | Australians and Americans have fought together in every major U.S. military conflict of the past century. |
| Defense Trade Cooperation Treaty | The US and Australia have a treaty that permits the license-free export of certain defense articles to support combined military operations and research. |
| Military Exercises | The US and Australia conduct joint military exercises, such as Exercise Talisman Sabre, to improve interoperability and combat readiness. |
| Defense Spending | The US has demanded that Australia increase its defense spending to 3.5% of its GDP, or by $40 billion, to support the US in the Indo-Pacific region. |
| AUKUS | Australia, the US, and the UK have a trilateral security partnership under which Australia will obtain nuclear-powered submarines and collaborate on military technologies. |
| Australian Defense Force (ADF) | The ADF is small compared to other national militaries, and Australia has been criticised for underinvesting in defence. |
| Cyber Warfare | Unlike the US military, the ADF does not class cyber warfare as a separate sphere of warfare, but it has an Australian Cyber Security Centre (ACSC) to protect against cyber attacks. |
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What You'll Learn
US-Australia security cooperation
The United States and Australia have a long history of military cooperation, with Australians and Americans fighting side by side in every major U.S. military conflict of the past century, including World Wars, the Vietnam War, and more recently, operations against violent extremist organizations. This close partnership was formalized with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which still remains the foundation of the security relationship between the two countries.
The U.S. and Australia have several agreements in place to facilitate their security cooperation. These include the Agreement concerning the Status of United States Forces in Australia (SOFA) of 1963, the Logistics Support Agreement (LSA) of 1989, the Acquisition and Cross-Servicing Agreement (ACSA) of 2010, the Treaty concerning Defense Trade Cooperation of 2013, and the Force Posture Agreement of 2015. Additionally, Australia is one of two countries that have a Defense Trade Cooperation Treaty with the U.S., allowing for the license-free export of certain defense articles to support combined military operations and cooperative defense research.
In recent years, the U.S. and Australia have continued to strengthen their security cooperation. Since 2012, more than 8,000 U.S. Marines have served in Darwin to train alongside the Australian Defense Force, and the two countries conduct Exercise Talisman Sabre, a joint biennial military exercise to improve interoperability and combat readiness.
Australia's 2020 Defense Strategic Update emphasizes the importance of a robust U.S. presence in the Indo-Pacific region and extended deterrence, as well as plans to enhance the Australian Defence Force's capability to operate independently. Australia has also committed to increasing its defense budget to 2% of its GDP in 2020-21, providing $42.2 billion in funding. However, there have been recent tensions between the two countries, with the U.S. demanding that Australia further increase its defense spending to 3.5% of its GDP, or by $40 billion, to support the U.S. in the Indo-Pacific region amid rising tensions with China. While Australia has resisted this push, it has acknowledged the need to increase its defense capabilities and has brought forward plans to increase defense spending, including on guided weapons, submarines, and frigate programs.
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US demands Australia increase defence spending
The United States has historically been a close ally of Australia, with Australians and Americans fighting side by side in every major U.S. military conflict of the past century. This close partnership was formalized with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which remains the foundation of the security relationship between the two countries.
However, in recent years, there have been some tensions between the two nations regarding defence spending. The United States has demanded that Australia increase its defence spending to meet the growing challenges in the Indo-Pacific region, particularly from China. US Defense Secretary Pete Hegseth conveyed this message to Australia's Defence Minister Richard Marles on the sidelines of the Shangri-la Dialogue in Singapore in early June 2025. Hegseth warned of a "real and potentially imminent" threat from China and asked Australia to increase its defence spending to 3.5% of its GDP, which would amount to about \$40 billion extra per year.
Australia's current defence spending sits at about 2% of its GDP, and the government has already committed to increasing it to 2.33% over the next eight years. Prime Minister Anthony Albanese has pushed back on the US demands, stating that Australia will determine its own defence spending levels based on its capability needs. He added that Australia has already committed to a significant boost in defence spending, including an extra A\$10 billion over four years and a A\$50 billion boost over a decade.
Despite the pushback, Defence Minister Richard Marles indicated that he was open to an increase in defence spending, acknowledging the need to have a conversation about it. He understood the US perspective, given the increasing challenges in the region. However, Marles stopped short of agreeing to a specific figure, stating that Australia would consider the proposal.
The Australian Strategic Policy Institute has warned that Australia has underinvested in defence and risked a "brittle and hollowed defence force". However, critics like Allan Behm argue that Australia should resist US bullying on defence spending, especially considering the structural deficit in the Australian economy and the climbing pressures on budgets.
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Australia's Defence of Australia Policy
The adoption of the DOA policy did not mean that Australia adopted a policy of neutrality or completely gave up its ability to deploy forces overseas. However, the Australian Defence Force's (ADF) primary responsibility remained defending Australia from external attacks. One of the criticisms of the DOA policy is its alleged inability to respond to threats other than a direct attack on Australian soil. The Australian-led intervention in East Timor in 1999 highlighted the strengths and weaknesses of the policy.
The Liberal Party government elected in 1996 embraced the criticisms and re-oriented Australian defence policy by placing greater emphasis on the ADF's ability to deploy overseas. This did not, however, involve the permanent stationing of Australian military units overseas. Instead, Australian expeditionary forces deployed from bases in Australia.
In recent years, the United States has pressured Australia to increase its defence spending to almost $100 billion a year, arguing that Australia must do more to support the US in the Indo-Pacific region. Australia has committed to growing its defence budget to two percent of its GDP in 2020-21, providing $42.2 billion in funding. Australia and the US cooperate closely through bilateral agreements and regional fora like the Quadrilateral Security Dialogue (Quad) and ASEAN to advance stability, security, and prosperity in the Indo-Pacific region.
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US-Australia joint military exercises
Australians and Americans have fought alongside each other in every major US military conflict of the past century. This close partnership was formalised with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which remains the foundation of the security relationship between the two countries.
The United States and Australia have several agreements in place, including the Agreement concerning the Status of United States Forces in Australia (SOFA) of 1963, the Logistics Support Agreement (LSA) of 1989, the Acquisition and Cross-Servicing Agreement (ACSA) of 2010, the Treaty concerning Defense Trade Cooperation of 2013, and the Force Posture Agreement of 2015.
Since 2012, more than 8,000 US Marines have served in Darwin to train alongside the Australian Defence Force. The rotational force reached its full complement of 2,500 Marines for the first time by July 2019.
The two nations also conduct Exercise Talisman Sabre, a joint biennial military exercise designed to train military forces from both nations to plan and conduct Combined Task Force operations and improve their interoperability and combat readiness. The exercise involves joint exercises across six locations in northern and central Australia, the Coral Sea, and in Honolulu, Denver, and Suffolk, Virginia. The leadership of the exercise switches between Australia and the US every 2 years.
Talisman Sabre 2005 was the inaugural exercise in this series, involving 16,000 US and Australian troops. Talisman Sabre 2007 involved 26,000 troops from both nations, while Talisman Sabre 2015 was conducted over 20 days and involved up to 30,000 troops. Talisman Sabre 2017 was the countries' largest exercise to date, with the participation of more than 33,000 Australian and US troops, alongside 20 other ships and over 200 aircraft.
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Australia's Defence Strategic Update
Australia and the United States have a long history of military cooperation, with Australians and Americans fighting side by side in every major U.S. military conflict of the past century. This close partnership was formalised with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which remains the foundation of the security relationship between the two countries.
In recent years, this cooperation has taken the form of joint military exercises, such as Exercise Talisman Sabre, and the rotation of U.S. Marines through Darwin to train with the Australian Defence Force. The United States and Australia also have a Defence Trade Cooperation Treaty that permits the license-free export of certain defence articles to support combined military operations and cooperative defence research.
In 2020, Australia released its Defence Strategic Update, which set out important adjustments to defence policy in response to rapid changes in the strategic environment. The Update outlined three new strategic objectives, including support for a robust U.S. presence in the Indo-Pacific and plans to make the Australian Defence Force more capable of independent operations. Australia committed to growing its defence budget to two percent of its Gross Domestic Product (GDP) in 2020-21, providing $42.2 billion in funding.
However, in 2025, the United States demanded that Australia further increase its defence spending by $40 billion a year, citing deepening tensions with China. This demand has been characterised by some as "bullying," with the Australian government asserting that it will determine its own defence spending levels. Despite this, Australia's Defence Minister has indicated that the country is open to increasing its defence budget, acknowledging the need to address potential underinvestment in defence capabilities.
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Frequently asked questions
No, the United States does not subsidize the Australian military. However, the two countries have a close security partnership, with Australians and Americans fighting side by side in every major U.S. military conflict of the past century.
The United States and Australia have a long history of security cooperation, formalized with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which remains the foundation of their security relationship. They also have several agreements, including the 1963 Agreement concerning the Status of United States Forces in Australia (SOFA), the 2010 Acquisition and Cross-Servicing Agreement (ACSA), and the 2015 Force Posture Agreement.
Yes, the United States has called for Australia to increase its defence spending by USD 40 billion a year, or about 3.5% of its GDP, to a total of USD 100 billion annually. This demand comes amid deepening U.S. tensions with China and the U.S. plan to toughen tariffs on Australia.
Australia is on track to increase its defence spending from about USD 53 billion a year, or 2% of its GDP, to an estimated USD 100 billion, or 2.4% of GDP, by 2033-2034.
Australia plans to improve the Australian Defence Force's (ADF) combat power and expand its number of military personnel. This includes introducing new technologies, improving intelligence capabilities, and cooperating with allies like the United States and the United Kingdom through initiatives like the AUKUS trilateral security partnership.
