On April 16, Australia released its 2026 National Defence Strategy and Integrated Investment Program, saying defense spending will rise to 3% of gross domestic product by 2033 "under the NATO approach" from its current approximate 2%. The package prioritizes nuclear-powered submarines, longer-range strike capabilities, air and missile defense, autonomous systems, counter-drone capabilities, satellite communications and related industrial upgrades.

Australia says it faces its most complex and threatening strategic environment since World War II, with intensifying major power rivalry, more states engaged in conflict and weakening of norms against coercion. The move also comes following the reaffirmation of the AUKUS pact with the United States and the United Kingdom in October 2025, the lead-up to which included calls from Washington to raise defense spending to 3.5%.