Australian government hands down 2025-26 budget – and then calls general election

The Australian government handed down its budget for 2025-26 on the evening of 25 March and then almost immediately called a General Election which will be held on 3 May. Until then, the government is in ‘caretaker’ mode so is unable to make any policy decisions, though it may announce decisions made earlier.

Defence, including the Australian Signals Directorate (ASD) and the Australian Submarine Agency (ASA), will receive $58.988 billion in 2025-26, compared with $56.6 billion 2024-25. Over the five key cost categories – workforce, operations, acquisition, sustainment and operating costs – the Department will receive $57.42 billion in 2025-26 compare with $53.96 in 2024-25.

However, the apparent increase is due to some expenditure being brought forward from the Forward Estimates and there is no significant change to the amount Defence will receive over the current decade.

The Defence Capability Acquisition Program will amount to $18.8 billion this year while the Capability Sustainment Program will amount to $18.76 billion.