Australian Prime Minister Anthony Albanese, Australian Deputy Prime Minister Richard Marles, Australian Defence Industry Minister Pat Conroy and Chief of the Australian Defence Force (ADF) Angus Campbell speak to the media at a news conference after the release of the Defence Strategic Review at Parliament House in Canberra, Australia [Source: Reuters]

Australia’s government will prioritise long-range precision strike, domestic production of guided weapons, and diplomacy – key points of a review released today recommending the country’s biggest defence shakeup since World War Two.

The review said that the United States was no longer the “unipolar leader of the Indo Pacific”, intense competition between the U.S. and China was defining the region, and that the major power competition had “potential for conflict”.

The country’s northern bases will become a focus to deter adversaries, and protect trade routes and communications, the review said.

Prime Minister Anthony Albanese called the review “the most significant work that’s been done since the Second World War”.

“It demonstrates a world where challenges to our national security are always evolving. We cannot fall back on old assumptions. We must build the strength in our security by seeking to shape the future rather than waiting for the future to shape us,” he told reporters.

China is undertaking its largest buildup since World War Two, is not transparent about its intentions, and is engaged in strategic competition in Australia’s near neighbourhood, the review said.

A public version of the classified report released on Monday said Australia must “avoid the highest level of strategic risk we now face as a nation: the prospect of major conflict in the region”.

The military threat to Australia does not require invasion in the “missile age”, it said.

Australia would work more closely with the United States, including increased bilateral military planning, joint patrols and hosting more rotations of U.S. forces, including submarines, it said.

Australia must also strengthen defence cooperation with Japan, India, Pacific and South East Asian nations, the review said.

Defence funding will increase over the next decade, but will stay steady over the next four years, with funding of A$19 billion for the review’s recommendations, including A$7.8 billion diverted from cancelled projects.

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