Article by Michael Read, courtesy of Financial Review
24.04.2025
Australia’s richest person, Gina Rinehart, has called for the federal government to increase defence spending to 5 per cent of GDP and invest in an Israeli-style missile defence shield to protect the continent.
Speaking at a Channel 7-sponsored Anzac Day eve event at Sydney Opera House on Thursday, Rinehart said the federal government’s defence spending should be more than double the current level of 2.05 per cent of GDP.
“It is my belief we urgently need to do more to defend Australians, starting with protecting our ports, airports, sea lanes and other vital infrastructure, and significantly boosting our smart sea mines, war drones and Israeli-style domes accordingly, and boosting our defence manufacture here in Australia, as well as our budget to 5 per cent of GDP,” Rinehart said.
“Five per cent of GDP – like Europe is moving towards. I have so much more to say on this, at another time.
Her statement came just one day after Opposition Leader Peter Dutton pledged to increase defence spending to 2.5 per cent.
An increase to 5 per cent of GDP would stretch the federal government’s deficit-ridden budget to breaking point, unless cuts were made elsewhere or taxes rose.
US President Donald Trump, with whom Rinehart has close ties and who the mining billionaire has praised, has called on allies to lift defence spending to 3 per cent of GDP.
Rinehart’s remark on “Israeli-style domes” was almost certainly a reference to the country’s “iron dome” defence system, which intercepts short-range rockets fired from up to 70 kilometres away.
In the audience were Dutton and Defence Minister Richard Marles, as well as former prime ministers Tony Abbott, Scott Morrison and John Howard.
“So much of our wealth and opportunity, underwritten by past generations of heroes and contributors, stands at risk from the modern aspirations of others, their modern behaviour, from modern realities hitherto remote from our shores, our interests, our treasures, our lives,” Rinehart said.
The mining magnate said that “along with like-minded nations, our men and women in uniform and our stoic population bequeathed to Australians, then and as yet unborn, a beautiful peace and we as a nation could turn the wide brown land towards its bountiful destiny”.
“That sacrifice won us time and with hard work, investment, risk, common sense, reliable electricity, vision, and blessed with natural resources to underpin a high standard of living, Australia has become a remarkable, successful home blessed with opportunities for all Australians.”
