Dutton Under Pressure Over $21bn Defence Spending Plan Amid Labor Criticism
Peter Dutton is facing scrutiny for failing to outline how he would fund a proposed $21 billion boost in defence spending, with Labor seizing on the announcement just 10 days out from the federal election.
While in Perth on Wednesday, the Opposition Leader promoted the Coalition’s plan to raise defence spending to 2.5% of GDP over the next five years. The Coalition also aims to push that figure to 3% within a decade. By comparison, Treasury forecasts under Labor see defence spending reaching 2.4% by 2027–28.
During his visit to a facility showcasing Blacktree’s rugged UHF Satcom antenna—designed to withstand category five storms—Dutton praised the technology, calling it “incredible.” But while the equipment may be built for severe conditions, doubts remain about whether Dutton’s defence policy can endure the political storm in the final days before the election.
When asked how the Coalition would finance the defence boost, Dutton did not provide specifics. He said the Coalition would not proceed with Labor’s proposed tax cuts and instead cited the $7 billion annually that could be saved from the 70-cent-a-day tax cut introduced in March by the Albanese government. However, he did not clarify whether he would reverse the income tax cuts, nor if doing so would contradict his promise to lower taxes.
“We will and truly deal with the expenditure side of it,” Dutton said, promising to provide further costings before the election.
Prime Minister Anthony Albanese called Dutton’s lack of detail “extraordinary,” criticizing the policy as “a media release in search of a policy.” Speaking from Collie, WA—where one of the Coalition’s proposed nuclear power plants is planned—Albanese said, “He can’t say where the money is coming from. He’s confirming tax hikes, but even that doesn’t cover the full amount. So what other cuts are coming?”
He also noted that the proposal lacks specifics about how the funds would be used.
“This is an opposition that hasn’t done the hard work—whether it’s on defence or nuclear energy, they can’t explain how their plans will be implemented.”
Further controversy erupted as past comments resurfaced from the Coalition’s defence spokesperson, Andrew Hastie, criticizing the inclusion of women in combat roles. In a 2017 interview, Hastie said that in his experience with the SASR, close combat units were best kept all-male. He stood by the comments on Wednesday, stating he supports high standards across the ADF, while reaffirming that all combat roles remain open to women.
Hastie accused Defence Minister Richard Marles of politicizing the issue: “He uses women in the ADF as a political prop. It’s a shameful scare campaign.”
In return, Marles dismissed the Coalition’s defence pledge as a “pathetic whimper,” telling the ABC, “There’s no clarity on funding or on where the money would go. This is not a defence strategy—it’s just noise.”
The funding debate unfolds amid ongoing global instability, with both major parties citing international tensions—from conflicts in Europe and the Middle East to the rising threat posed by China—as justification for bolstering Australia’s defence capabilities.
It also coincides with Donald Trump’s influence over the AUKUS agreement, reportedly appointing Elon Musk to conduct a review. Although both Albanese and Dutton support AUKUS, each has questioned the other’s ability to uphold the agreement’s future.
Dutton would not say whether the 3% target was in response to Trump’s demand that NATO allies—Australia not included—raise their defence spending to 5%.
The Coalition previously stated its increased spending would go towards projects such as acquiring a fourth squadron of F-35A fighter jets, which Labor scrapped earlier this year.
