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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.

1.81% −0.07% (-3.7%)
Year 2025 Rank #67 Global Peak 3.84% (1968) Source World Bank

Australia Military Spending (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
Show all years (1960-2025)
* Linear trend extrapolation

Detected Pattern

Export Boom Cycle
Current account surplus with strong export growth (>15% YoY), reserve accumulation, and moderate GDP growth. Typical of commodity exporters during price surges.
Reserves YoY +36.0% GDP growth 2.0% C/A balance 2.6%
Occurred 768 times, 546 successful
Reserves YoY
+25.6%
GDP growth
4.0%
C/A balance
14.5%
Reserves YoY
+14.6%
GDP growth
3.7%
C/A balance
2.9%
Reserves YoY
+12.8%
GDP growth
43.8%
C/A balance
16.4%
Reserves YoY
+12.6%
GDP growth
6.0%
C/A balance
0.5%
Reserves YoY
+38.3%
GDP growth
5.0%
C/A balance
1.2%
Reserves YoY
+18.0%
GDP growth
2.9%
C/A balance
3.9%

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

What is Australia's military spending?▾

Australia's military spending was 1.81% in 2025. Ranked 67th globally. This represents a 3.7% decrease from the previous year.

What was the highest military spending in Australia?▾

Australia's military spending peaked at 3.84% in 1968.

What was the lowest military spending in Australia?▾

The lowest military spending in Australia was 1.64% in 2013.

How does Australia rank in military spending?▾

Australia ranks 67th globally in military spending as of 2025.

What is the World Bank indicator code for military spending?▾

The World Bank indicator code is MS.MIL.XPND.GD.ZS. Data sourced from World Bank.

What is the projected military spending of Australia in 2025?▾

Australia's military spending is projected to reach 1.81% by 2025 based on trend extrapolation.

What is the military spending of Australia in 2025?▾

The military spending of Australia in 2025 was 1.81%. This ranks 67th in the world.

Cite this page

APA
Australia Military Spending. HistorySaid. Retrieved November 1, 2026, from https://historysaid.com/australia/military-spending/
BibTeX
@misc{historysaid_australia_military-spending, title = {Australia Military Spending}, url = {https://historysaid.com/australia/military-spending/}, publisher = {HistorySaid}, year = {2026} }

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