Updated
The [Australian] Federal Government says Australia is well positioned to take advantage of a "gigantic" expansion of the United States military flagged by the incoming Trump administration.
[Australian] Defence Industry Minister Christopher Pyne also downplayed the prospect of the US demanding Australia increase its spending as a percentage of GDP.
Key points:
- Rudy Giuliani flags an aggressive expansion of America's military
- Government says as a close ally with the US the country is well positioned to benefit from the expansion
- Christopher Pyne says Australia is "pulling its weight" in both military spending and operations
Former New York Mayor Rudy Giuliani, who is reportedly a leading contender to become the next US Secretary of State, flagged an aggressive expansion of American forces.
Mr Pyne said Australia's strong links with the US would benefit defence manufacturing at home.
He told a submarine industry conference in Canberra, based on comments by Donald Trump, a half-a-trillion-dollar expansion of the US military was possible.
"A hundred new planes, 70 new naval vessels, 50 to 60,000 new army, 12 new marine corps, the opportunities for Australia, because of our very close relationship with the United States, are boundless," he said.
"A hundred new planes, 70 new naval vessels, 50 to 60,000 new army, 12 new marine corps, the opportunities for Australia, because of our very close relationship with the United States, are boundless," he said.
"We already have amazing companies like Austal and CEA and others that are part of the US military spend, they could expand."
Mr Pyne said Australia was "pulling its weight" not just in military spending but in terms of military operations with the US.
"President-elect Trump has called countries around the world who are US allies and are not at 2 per cent [of spending] strategic bludgers," Mr Pyne said.
"Fortunately we are not strategic bludgers because we are at 2 per cent of gross domestic product, and given the spend of the Turnbull Government over the next 10 years, I imagine that will be surpassed at some stage in the future."
He said the Government was staying "in close contact" with Mr Trump's transition team.
"We are very much linked into the Trump team," Mr Pyne said.
Mr Giuliani earlier this week said Mr Trump's military strategy was focused around "peace through strength".
"If you face them with a military that is modern, gigantic, overwhelming and unbelievably good at conventional and asymmetrical warfare, they may challenge you, but I doubt it," Mr Giuliani said.
"I am a big advocate of military spending."
Pete
Pete