Dutton Pledges $21 Billion Defence Boost to Protect Against Future Threats

Dutton says the Coalition will fund its defence plan by axing Labor’s recurring spending, including the stage-three tax cuts.

Leader of the Opposition Peter Dutton at the Liberal Party Campaign Launch at the Liverpool Catholic Club in Prestons, western Sydney on day 16 of his 2025 Federal Election Campaign in the seat of Werriwa, Sunday, April 13, 2025. AAP Image/Mick Tsikas

Coalition Leader Peter Dutton has pledged a $21 billion increase in military funding, vowing to dramatically lift spending if his party wins the May 3 federal election.

The opposition leader said the spending is essential to deal with global instability, warning that Australia faces the most uncertain security environment since World War II.

Under the Coalition’s plan, defence funding would rise from 2 percent to 2.5 percent of gross domestic product (GDP) over the next five years.

By 2035, that figure would climb to 3 percent of GDP, well beyond Labor’s 2.4 percent target by 2034.

Speaking in Perth, Dutton said the proposed boost would ensure Australia can meet future threats with strength and resolve.

“We need to make sure that whatever confronts us over the coming decades, we can stare it down,” he said.

Funding Plan: Axe Labor’s Tax Cuts

To pay for the additional defence spending, Dutton said the Coalition would scrap Labor’s recurring expenses, and the stage-three tax cuts, which he described as fiscally irresponsible.

“We’re not going ahead with that 70 cents-a-day tax cut, which comes to about $7 billion a year,” he said.

“Labor’s locking in $28 billion over the forward estimates. Our plan re-allocates that toward defence.”

He argued that Labor’s tax policy will bake in an ongoing $7 billion annual cost, while the Coalition’s plan is targeted, temporary, and focused on strategic priorities.

Dutton said the Coalition would take a responsible budgeting approach, drawing lessons from COVID-era economic management.

“During COVID, we provided JobKeeper, JobSeeker, and other measures to keep businesses alive. But we didn’t bake in that spending. It was temporary, just like this will be,” he said.

He said the announcement was timed late in the campaign to assess the budget and commit responsibly to defence spending.

Dangerous Decade Ahead

Dutton said intelligence briefings he received while serving as defence minister shaped his view that the coming decade could see conflict in the Indo-Pacific, Europe, and the Middle East.

“This is not the time to risk a Labor-Greens government,” he said.

He said that increasing military capability would not only safeguard the nation but also support long-term growth in Australia’s defence industry.

Asked directly if communist China was driving the proposed funding increase, Dutton said, “The Chinese Communist Party is a very different China. It has ambitions regarding Taiwan. A naval blockade is not out of the question, and our defence experts are warning about that.”

He also pointed to rising tensions in Europe, saying Russia’s invasion of Ukraine had raised fears that further aggression could target NATO members.

‘Political Theatre’: Labor

The Albanese government dismissed the announcement as “political theatre” lacking detail or credible costings.

“There’s no explanation of how the money is being raised, there’s no explanation of where it’s being spent,” Defence Minister Richard Marles said.

“Throwing a big number into the debate without a plan—that’s not a defence strategy.”

Marles said Labor’s current trajectory is already lifting defence investment to 2.4 percent of GDP over the decade, arguing that the government’s approach is both fiscally responsible and grounded in long-term planning.

Retention Tied to Purpose, Not Just Pay

However, Shadow Defence Minister Andrew Hastie accused Labor of weakening Australia’s military capability through delays and cuts worth $80 billion.

“They’ve cut the infantry fighting vehicle program, two supply ships, and a fourth squadron of F-35s,” he said. “They are busy cutting and weakening this country.”

Hastie said the Coalition’s target of 3 percent of GDP in defence spending over the next decade reflected the seriousness of the global threat landscape.

Labor, he noted, had revised its own figure down to 2.3 percent.

He warned that military recruitment and retention are in crisis, citing figures showing that nearly 90 percent of applications last year were withdrawn before completion.

Asked how the Coalition would address recruitment and retention, Dutton said salary reviews were possible—but the real key was restoring a sense of mission.

“People join defence to serve. They don’t want to be stuck on projects that are going nowhere,” he said, blaming Labor for stripping funds from critical initiatives.

“We want to reinvest in those programs to support our defence families and give people reasons to stay. That’s how you keep skilled personnel in uniform.”