Defence Industry Minister Pat Conroy confirmed the deal, stating the missiles would arm Australia’s F/A-18 and F-35 fighter jets, as well as a newly formed army brigade with strike capabilities up to 500 kilometres. The move comes as part of a broader effort to counterbalance China's growing military presence in the region.

Defence Budget Rises—But Not to U.S. Levels

Prime Minister Anthony Albanese has resisted Washington’s push to raise defence spending to 3.5% of GDP, asserting instead a "capability-based" approach. Forecasts place Australia’s defence expenditure at 2.3% of GDP by 2033. Foreign Minister Penny Wong stressed that the government has already committed to the largest peacetime increase in defence funding.

A$74 billion has been allocated for missile procurement from Europe and the U.S., including A$21 billion to develop a local Guided Weapons and Explosive Ordnance Enterprise.

Strategic Relations Amid Missed G7 Talks

Albanese’s scheduled G7 meeting with President Donald Trump was cancelled due to the latter’s early departure amid Middle East tensions. Still, officials said efforts were underway to reschedule. Australia’s recent military purchases—alongside a $2 billion proposed acquisition of U.S. electronic warfare equipment—signal strong defence ties despite strategic divergences.