Anthony Albanese says Australia's defence spending is increasing. (ABC News: Matt Roberts)
In short:
President Trump's nomination for under secretary of US Defense policy has criticised Australia's defence spending.
The prime minister insists the nation's defence expenditure is rising.
What's next?
Defence expenditure is forecast to rise to 2.3 per cent in 2033-34, as the first US nuclear-powered submarines arrive.
Senior government figures have declared Australia will determine its own military spending levels, not the United States, after a senior Trump administration figure expressed concern about the "core" US ally's low defence expenditure.
The prime minister has also insisted Australia's security relationship with Washington is "secure", despite the United States cutting military and intelligence support to Ukraine and increasingly siding with President Vladimir Putin over Russia's invasion.
This week President Trump's choice to become head of policy at the Pentagon, Elbridge Colby, told a US Senate committee that while Australia was a "core US ally" and the military relationship was "excellent", its defence spending had to be lifted.
"The main concern the United States should press with Australia, consistent with the president's approach, is higher defence spending," he told the Senate's armed services committee in written answers.
"Australia is currently well below the 3 per cent level advocated for NATO by NATO Secretary General Rutte, and Canberra faces a far more powerful challenge in China."
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Under current projections, Labor is forecasting defence spending to come in at 2.03 per cent this financial year, 2.02 in 2026-27 and 2.12 in 2027-28, before eventually rising to 2.3 per cent in 2033-34 as Australia begins to receive Virginia-class submarines.
Responding to Mr Colby's criticism, Prime Minister Anthony Albanese told reporters in Canberra that "Australia determines our national interest" and Labor's defence strategic review is boosting the military.
"My government is allocating significant additional resources for defence. That is being rolled out, including, including missiles, including a range of assets that improve both our capability, but also importantly, our delivery," Mr Albanese said.
Defence Minister Richard Marles says the government has committed an additional $50 billion to defence since coming to office, and this year is spending around $56 billion on the military.
"I can obviously understand the US administration seeking for its allies to do more. It's a conversation we will continue to have. It's really important to understand we are increasing that spending right now," Mr Marles said.
Defence Minister Richard Marles said the government had committed an additional $50 billion to defence since coming to office. (ABC News: Ian Cutmore)
Australia's relationship with US not changing after Washington cuts Ukraine support
Asked about the recent US decision to withhold intelligence from Ukraine, Mr Albanese said Australia would determine its own foreign policy, while insisting "our security relationship with the United States is secure".
"It is in Australia's national interest to support the brave struggle of the people of Ukraine, led so admirably by President [Volodymyr] Zelenskyy," he added.
"Our position on Russia has not changed. The way that this war should stop tomorrow is for Russia to withdraw and to back off from its illegal and immoral invasion."
This week Defence Industry Minister Pat Conroy said Australia's retired fleet of Abrams tanks which the government pledged to give to Ukraine "will be deployed" despite "technology restrictions" that have delayed their arrival in the war-torn country.
The ABC's been told the M1A1 tanks are now being shipped to Ukraine after initially being sent to the United States for modifications, but they could face further delays getting to the front line due to the Trump administration's freeze on military aid to Kiev.