“The optimistic assumptions that guided defence planning after the end of the Cold War are long gone,” Marles said in a speech at the national press club. “Our environment is characterised by the uncertainty and tensions of entrenched and increasing strategic competition between the United States and China.”

Just over 40%, or up to A$145 billion, is set for the navy, including a beefed-up surface fleet, the AUKUS nuclear-powered submarine program as well as other priorities such as the Ghost Shark undersea drone.

A fifth, or up to A$74 billion, will go toward missile-related programs, whose importance was flagged in a review last year. There will be new longer-range missiles for the air force and army, missile defence programs and domestic manufacturing of guided weapons, the review said.

Military bases across the country’s north, where U.S. Marines are based for months of training and exercises each year, will be allocated up to A$18 billion for upgrades.