Australia to prioritise long-range strike capability in defence shakeup

Australia's government will prioritise long-range precision strikes, domestic production of guided weapons, and diplomacy - key points of a review released Monday (24 April) recommending the country's biggest defence shakeup since World War II.

The review said that the United States was no longer the "unipolar leader of the Indo-Pacific", intense competition between the US and China was defining the region, and that the major power competition had "potential for conflict".

The country's northern bases will become a focus to deter adversaries, and protect trade routes and communications, the review said.

China is undertaking its largest buildup since World War II, and is engaged in strategic competition in Australia's near neighbourhood, it said.

A public version of the classified report released on Monday said Australia must "avoid the highest level of strategic risk we now face as a nation: the prospect of major conflict in the region".

The military threat to Australia does not require invasion in the "missile age", it said.

Australia would work more closely with the United States, including increased bilateral military planning and hosting more rotations of US forces, including submarines, it said.

Australia must also strengthen engagement with Pacific and South East Asian nations, the review said.

Prime Minister Anthony Albanese said the review's findings "will strengthen our national security and ensure our readiness for future challenges".

Defence funding will increase over the next decade but will stay steady over the next four years at A$19 billion, with A$7.8 billion diverted from cancelled projects.