Australia Military Spending
Military expenditure as % of GDP MS.MIL.XPND.GD.ZS
Australia's military spending was 1.81% in 2025, ranked 67th globally. This represents a 3.7% decrease from 2024. Data from World Bank, covering 1960–2025.
Overview
Australia's military spending stood at 1.81% in 2025, a decline of +0.07% from 2024. Based on recent trends, this figure is projected to reach 1.81% by 2025. Australia ranked 67th globally.
Australia’s military expenditure has shown a gradual decline over the 66‑year series, falling from 2.37 % of GDP in 1960 to a post‑COVID trough of 1.64 % in 2013, the lowest level recorded for the country. The all‑time high of 3.84 % was reached in 1968, reflecting Cold‑War security imperatives, before a long‑term downward trajectory set in during the 1990s. By 2025 Australia’s defence outlay stood at 1.81 % of GDP, ranking it 67th globally and placing it just above peers such as the Netherlands (1.82 %) and Germany (1.86 %). The modest rebound from the 2013 trough suggests a cautious re‑investment in capabilities, yet the figure remains well below the 2 % NATO benchmark and the historic peak. Future shifts in regional security dynamics or a formal adoption of a higher spending target could alter this modest upward trend, potentially accelerating the pace of fiscal commitment to defence.
Data & projection
| Year | Military Spending | YoY change | Rank |
|---|---|---|---|
| 2027* trend | 1.74% | - | - |
| 2026* trend | 1.78% | - | - |
| 2025* trend | 1.81% | - | - |
| 2025 | 1.81% | −0.07% | #67 |
| 2024 | 1.88% | +0.02% | #82 |
| 2023 | 1.86% | −0.02% | #93 |
| 2022 | 1.88% | −0.10% | #103 |
| 2021 | 1.98% | −0.03% | #105 |
| 2020 | 2.01% | +0.13% | #102 |
| 2019 | 1.88% | −0.02% | #103 |
| 2018 | 1.90% | −0.11% | #105 |
| 2017 | 2.01% | −0.08% | #113 |
| 2016 | 2.09% | +0.14% | #113 |
| 2015 | 1.95% | +0.18% | #107 |
| 2014 | 1.77% | +0.13% | #94 |
| 2013 | 1.64% | −0.03% | #93 |
| 2012 | 1.67% | −0.08% | #95 |
| 2011 | 1.76% | −0.10% | #96 |
Detected Pattern
Analysis
Australia matched the Export Boom Cycle pattern in 2021. Historically, 71% of countries showing this pattern (546 out of 768) saw military spending improve within 24 months. View full analysis →
The headline regarding the U.S. defense industry's capacity relative to China's military machine highlights a key geopolitical consideration for Australia. As a U.S. ally, Australia's military
Frequently Asked Questions
Australia's military spending was 1.81% in 2025. Ranked 67th globally. This represents a 3.7% decrease from the previous year.
Australia's military spending peaked at 3.84% in 1968.
The lowest military spending in Australia was 1.64% in 2013.
Australia ranks 67th globally in military spending as of 2025.
The World Bank indicator code is MS.MIL.XPND.GD.ZS. Data sourced from World Bank.
Australia's military spending is projected to reach 1.81% by 2025 based on trend extrapolation.
The military spending of Australia in 2025 was 1.81%. This ranks 67th in the world.
Cite this page
@misc{historysaid_australia_military-spending,
title = {Australia Military Spending},
url = {https://historysaid.com/australia/military-spending/},
publisher = {HistorySaid},
year = {2026}
}