Australian Foreign Minister Penny Wong and Defense Minister Richard Marles attended the annual Australia–U.S. Ministerial (AUSMIN) talks in Washington on Monday, meeting with U.S. Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth to discuss strengthening bilateral defense cooperation following the latest review of the AUKUS agreement. While the U.S. confirmed the review report has been completed, neither side has disclosed its contents.
Marles stated after the meeting that the review focused on “how to make AUKUS work better,” but he refrained from revealing details out of respect for U.S.-led leadership of the review. He also did not confirm whether the U.S. had requested Australia to further increase its defense budget.
AUKUS consists of two main pillars: the first is submarine cooperation, which includes Australia purchasing at least three Virginia-class nuclear-powered submarines from the U.S. in the 2030s and subsequently building its own “AUKUS-class” submarines; the second covers advanced military technology collaboration, such as hypersonic weapons, artificial intelligence, quantum technology, and intelligence sharing.
The U.S. Trump administration has recently taken a tougher stance, demanding allies increase defense spending. The White House’s latest national security strategy emphasizes maintaining “a firm expectation for higher defense expenditure” in dealings with Australia. Marles highlighted that Australia has implemented its largest peacetime defense budget increase and that the U.S. is “fully aware” of Australia’s position.
A joint statement following the talks showed that both sides agreed to expand the U.S. military presence in Australia. This includes upgrading air bases in Queensland and the Northern Territory to accommodate more rotating U.S. bombers and fighter jets, increasing reconnaissance and intelligence aircraft deployments, and pre-positioning substantial U.S. military assets, including MV-22 Osprey aircraft used by the Marine Corps. The two countries will also establish an “Oversight and Support Group” to coordinate U.S. troop activities in Australia.
Commentary:
The increased U.S. military presence in Australia raises the country’s strategic profile but also fuels domestic debate over sovereignty and long-term reliance. First, the U.S. expectation for allies to raise defense spending is increasingly explicit. While Australia has significantly boosted its defense budget, the high cost of nuclear submarines and domestic fiscal pressures may make it uncertain whether Australia can continuously meet U.S. expectations.
Second, while expanded deployments and base upgrades enhance Australia’s security in the Indo-Pacific for supporters, critics may question whether the country is moving toward a “quasi-host nation” role, tying its defense policy more closely to Washington’s strategy.
Nonetheless, from a geopolitical perspective, Australia has little leeway to ignore AUKUS. Rising Chinese influence and increasing tensions in the Indo-Pacific make the Australia-U.S. alliance increasingly crucial for Canberra.