Australia holds the line on aid as world retreats: Budget sends signal of regional leadership
The Safer World for All campaign has welcomed tonight’s Federal Budget, which increases Australia’s aid program to $5.1 billion up by $135.8 million from last year —a timely and much-needed signal of regional commitment as other traditional donors pull back.
“In a world where the US and UK are retreating, Australia’s decision to hold the line and lift aid funding is a principled and strategic move,” said Rev Tim Costello, Executive Director of Micah Australia.
“Real security in our region isn’t just about military strength—it’s about trust, stability, and reliable partnership. That’s what aid delivers.”
While still well below previous peaks as a share of Gross National Income or the Federal Budget, advocates say the rise marks a vital step in addressing a long-term decline and reaffirming Australia’s role as a dependable partner.
“Australia is facing an uncertain and challenging global environment. With cuts to development assistance announced by many traditional donors, Australia has sent a clear signal that we are not retreating from our region,” said Matthew Maury, interim CEO of ACFID.
“This increase is timely and welcome—and lays a platform for continued leadership.”
The Need to Rebuild Bipartisanship on Aid
As we head towards the next federal election, the campaign is calling for a return to strong bipartisan support for aid—highlighting the positive steps taken by both major parties in recent years:
From 2000 to 2013, under Howard, Rudd and Gillard, Australia’s aid budget grew steadily—peaking in 2011–12, when ODA reached 1.28% of the Federal Budget. This reflected a broad, bipartisan commitment to global development.
The 2013 integration of AusAID into DFAT shifted the focus to the Indo-Pacific, but was accompanied by deep cuts, causing aid’s share of the budget to fall sharply.
The Morrison Government expanded Pacific funding and delivered targeted temporary increases to respond to the COVID-19 pandemic in our region.
The Albanese Government has since stabilised the program, reintroduced indexation, and committed to modest nominal increases.
Today, aid sits at just 0.68% of the Federal Budget, and is projected to fall slightly to 0.65% in coming years—well below the levels seen during the peak period of bipartisan support.
Defence Outpacing Aid at Record Levels
With growing focus on defence, new analysis from the ANU Development Policy Centre shows Australia now spends ten times more on defence than on aid—one of the widest gaps in the developed world.
If defence spending reaches 2.5% of GDP by 2029–30 without a real increase in aid, the gap could widen to 16:1—more than double what it was during the Vietnam War. Some projections show a 19:1 ratio if defence spending climbs to 3% of GDP, as advocated by some international and domestic voices.
While conflict and climate-related humanitarian crises increase, the Humanitarian Emergency Fund has received no additional funding since 2018, limiting Australia’s ability to assist in times of acute need.
“This isn’t just about numbers—it’s about what kind of middle-power leader Australia chooses to be,” said Rev Tim Costello.
“We can’t talk about stability in our region if we’re only investing in one part of the equation. A stronger aid program means a safer, more stable region—and a more secure Australia.”
A Renewed Vision for Australian Leadership
“This moment of holding the line on aid is one to welcome,” said Rev Tim Costello. “But it must be a foundation for long-term renewal. Australian aid isn’t just generous—it’s effective, respected, and in our national interest.”
“It should be a source of national pride—just as it’s a source of enormous strategic value in our region.”
The Safer World for All campaign is calling on all parties to work together on a long-term pathway to restore aid to 1% of the Federal Budget after the next election—reclaiming the ambition that once united leaders across the political spectrum.
For media enquiries or interviews:
Matt Darvas – 0416 280 340
About the Campaign
The Safer World for All campaign is coordinated by Micah Australia, the Australian Council for International Development (ACFID) and Global Citizen. It brings together voices from faith, development, security, and the community to advocate for a stronger, values-driven approach to Australian aid.
Media Resources
Journalists can access the full package of research—including:
- ANU data and modelling
- RedBridge Research on Public Attitudes to Australian Aid
- Policy Proposal for Australia’s Official Development Assistance to reach 1% of Federal Budget
- Key stats and graphics-ready data