Royal Australian Navy Discussions and Updates 2.0

[Morgo]

Would require either a 12% increase in personal taxes, a 4% increase in GST, a 10% additional company tax rate, a 40% cut in other programs, or a $40B per annum increase in debt.

Or the imposition of modest inheritance taxes (like virtually every other advanced nation has), proper royalties on Australian gas, oil, coal and iron ore (like virtually every other resource rich nation does), elimination of stupid carve outs like negative gearing, CGT discounts, franking credit refunds, and including the primary family residence in means testing for various benefits.

This could comfortably fund an increase in Defence spending and probably deliver significant personal income tax and company tax cuts as well.

But our politicians are cowards.

 

[Stampede]

Not yet the RAN; Defence, ie that part responsible for shipbuilding. Simplified and at a high level the process is;

Proof of compliance with contract (builders sea trials) - acceptance by Defence - transit to home port (if required) - completion of certifications leading to RAN sea release - delivery to RAN - proof of compliance with capability requirements (operational sea trials) - IOC - delivery of last ship in build - FOC.

From that press release, we’ve just completed stage 2. Transit if needed, and it is here, can occur before, during or after the certification process. Certification, particularly for the first of class, can take a month or two (or longer) depending on the complexity of the platform. Commissioning usually occurs on delivery to the RAN.

So is commissioning before or after when the next federal election is called ?

 

[spoz]

If not before, the caretaker conventions might require it be delayed until after the election is decided.

 

[hauritz]

Australia can’t easily lift defence spending to a Trump-satisfying level | The Strategist

On that point I was reading this article this morning. It talks about what would need to occur to fund defence at the levels of 3.5% GDP. Key points as follows:

• It would equate to $97B total annual Defence spend, or $40B more than current.
• Would require either a 12% increase in personal taxes, a 4% increase in GST, a 10% additional company tax rate, a 40% cut in other programs, or a $40B per annum increase in debt.
• For comparison, NDIS is currently about $46B. Health and aged care is about $120B per annum.

I am a person who wants to see defence spending increase, and would love to support it at 3.5%. It would be great to get all the gear we could ever want for that money. Given the impact on either taxation, debt or other expenditure programs, I can't see that happening outside of some great and imminent threat (it really needs a barbarians at the door situation).

I still think there will be pressure from Trump for us to increase our spending, so maybe something small, such as an earlier increase to 2.4% and a longer term commitment to 3% next decade. To note there would be zero way that an extra $40B could be spend in FY26, so an immediate increase is near impossible.

For an earlier increase to 2.4%, perhaps some infrastructure investments in bases brought forward (WA and NT in particular), or some extra missile orders (can never have enough SM2s), or higher wages (something that could happen immediately).

If US allies were to actually boost their defence spending to 5% or even 3.5% of GDP a huge hunk of that money would end up in the coffers of the US defence Industry. The only way boosting Australian defence spending to US levels would work is if we built the vast majority of our equipment in Australia. When Australia buys F-35s, Virginia SSNs, missiles or whatever else from overseas that money is effectively ripped out of the Australian economy forever.

What the US spends on defence mostly benefits US industry. In turn these industries generate huge amounts of money for the US economy, partly compensating their defence budget. You then have all the other benefits the US derives from being a global superpower.

While I have no issue with Australia increasing its defence spending I think we need to be prudent in the way that money is spent.