An Australian Army trooper fires the .50 cal heavy machine gun from an Australian Army M1A1 Abrams Main Battle Tank during Exercise Gauntlet Strike at the Puckapunyal Military Area in Victoria, Australia, on June 26, 2024.
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The Australian Defence Force is at risk of being left in a “no man’s land” of underpreparedness for current threats and future challenges due to the slow take-up of new capabilities, according to a new report.

The Australian Strategic Policy Institute (ASPI) think tank released its annual Cost of Defence dossier this morning, which claims that critical funding increases for the ADF are taking too long to arrive.

“Defence funding [needs] to be increased to reflect the reality of the threats facing Australia,” the report states.

An Australian Army trooper fires the .50 cal heavy machine gun from an Australian Army M1A1 Abrams Main Battle Tank during Exercise Gauntlet Strike at the Puckapunyal Military Area in Victoria, Australia, on June 26, 2024.
The Australian military has been warned it is at risk of being underprepared for current risks and future challenges. (CPL Johnny Huang/Australian Department of Defence)

“But, while the Australian government claims to have made a ‘generational investment in Australia’s defence’, that investment has been put off for another generation.”

While the government announced a $50 billion funding boost in last year’s federal budget and brought $1 billion of that forward during this year’s national accounts, the ASPI authors argued “we can’t expect any significant uplift until after 2028–29”.

It also said that, while there is a bipartisan admission that Australia is facing some of the most challenging global conditions since the end of World War II, it is taking too long for the ADF to acquire crucial new capabilities.

“There’s a disconnect between the urgency of emerging threats and the protracted acquisition timelines for critical capabilities,” the report states.

“That slow pace risks leaving the ADF ill-prepared for current threats and unable to keep pace with future challenges, creating a ‘no man’s land’ of preparedness.”

Prime Minister Anthony Albanese at a press conference at Parliament House in Canberra on Sunday 9 March 2025.
Anthony Albanese hit out at the report’s findings, labelling them “predictable”. (Alex Ellinghausen)

Prime Minister Anthony Albanese defended his government’s approach to defence spending, labelling the criticism from ASPI as “predictable”.

“Seriously, they need to have a look at themselves as well and the way that they conduct themselves in debates,” he told ABC radio this morning.

“We’ve had a defence strategic review.

“We’ve got considerable additional investment going into defence – $10 billion. We’re lifting up our defence expenditure up to 2.4 per cent of GDP. We’re investing in assets and our capability.”

The report also noted the added global uncertainty that US President Donald Trump has caused since his return to the White House.

“Great powers flout the international rules-based system, either seeking to expand their spheres of influence, as Russia and China are doing, or pursuing a transactional and user-pays form of vassalage in the case of the US under the Trump administration,” ASPI executive director Justin Bassi wrote.

“To be clear: the actions of the US are not comparable to those of Russia and China, but the administration’s tendency to treat all countries the same, without separating friend from foe, is causing unhelpful disruption and adding to global uncertainty.”

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