Australia to speed up $1 billion in defence spending in budget, says defence minister

By Kirsty Needham

AVALON (Reuters) -Australia will bring forward A$1 billion in defence spending in Tuesday's federal budget to boost its military capability, including guided weapons manufacture, an AUKUS submarine base and a frigate program, Defence Minister Richard Marles said on Monday.

Australia and other United States security allies are under pressure from United States President Donald Trump to increase defence spending.

Marles said the federal budget would contain an increase of A$10.6 billion (US$6.66 billion) for defence over the next four years, part of a previously announced A$50 billion boost over a decade, which he said was the most significant increase in defence spending since the end of the Second World War.

"Part of the A$10.6 billion sees bringing forward an additional billion dollars and that is because of the need to accelerate Australia's capability and development," Marles said at the Avalon Air Show in Victoria.

"This will see us have ready HMAS Stirling, the Henderson Defence Precinct for the establishment of the Submarine Rotational Force West. This will see us move forward at a faster pace in establishing the Guided Weapons and Explosives Enterprise," he added.

Up to four United States and one British-commanded nuclear-powered submarines will rotate through Australia's biggest naval base, HMAS Stirling in Western Australia, from 2027 under AUKUS.

The earlier spending will also accelerate the purchase of a frigate into the service fleet this decade, he said.

On Monday, Australia said it had received the first two of 42 High Mobility Artillery Rocket Systems (HIMARS) launcher vehicles ordered from Lockheed Martin, while the manufacture of guided multiple launch rocket systems (GMLRS) would begin in Australia this year.

Australia is focused on acquiring long-range strike capability and the HIMARS gives its defence force mobility to project into the region, Marles said.

The truck-mounted system was used in the war in Ukraine, and can be moved by ship or Australia's C-17 and C-130 aircraft, "so they are easily deployable across the region" for coastal operations, said Brigadier Nick Wilson.

Australia will take delivery of the Precision Strike Missile, with a range of 500 kilometres, for use in HIMARS this year, said Defence Industry Minister Pat Conroy.

($1 = 1.5916 Australian dollars)

(Reporting by Kirsty Needham in Melbourne; Editing by Saad Sayeed)