Facing the most threatening geopolitical environment since the end of World War II, Australia's defence force is set to carry the load of deterrence with less in the short term.
The Australian Strategic Policy Institute released its analysis of the 2026/27 defence budget on Thursday after the 2026 National Defence Strategy earmarked an additional $53 billion in funding over the next decade.
It found about four cents of every extra dollar stemming from the announcement was appropriated for next financial year.
The remaining 96 cents sat in forward estimates promises, decade out-year profiles, contingency reserves and unspecified alternative financing plans.
"The bottom line is that we're still waiting for the reality to match the rhetoric," the report's authors wrote.
Under the NATO model, the $53 billion commitment is slated to push Australia's defence spending to three per cent of gross domestic product by 2035, compared to a previous forecast of 2.3 per cent.
