In light of the new deal made between Australia, the United Kingdom and the United States you might wonder where the money for brand new nuclear-powered submarines comes from.
And, of course it comes from Australia’s defence budget which is 2.1 per cent of our GDP coming in at $44.6 billion.
And while that seems like a large number, Australia doesn’t make the list of top 10 countries that spend the most on defence.
Here is a look at some of the world's biggest defence budgets and how we compare.
The world’s largest defence budgets
Here are the top 10 in Australian dollars:
United States - $1.06 trillion
China - $343 billion
India - $99 billion
Russia - $84 billion
United Kingdom - $80.6 billion
Saudi Arabia - $78 billion
Germany - $72 billion
France - $71.5 billion
Japan - $66.8 billion
South Korea - $62 billion
So, how does Australia compare? Well we’re only just off the list sitting in 11th position.
As a whole, the United States accounts for 39 per cent of the entire world’s military spending, whereas Australia only accounts for around 1.4 per cent.
However, when you look at spending per capita Australia does make the list.
Here are the top 10 countries with the highest military spending by population:
Israel - $3,415 per person
United Arab Emirates - $3,363 per person
United States - $3,202 per person
Singapore - $2,526 per person
Saudi Arabia - $2,250 per person
Kuwait - $2,213 per person
Oman - $1,794 per person
Norway - $1,787 per person
Australia - $1,469 per person
Qatar - $1,377 per person
“The five largest arms importers were Saudi Arabia, India, Egypt, Australia and China, which together accounted for 36 per cent of total arms imports,” it said.
So while our military spending is relatively small, it seems to be ramping up.