SYDNEY - Australia said its A$2 billion (S$1.67 billion) purchase of supersonic missiles from the United States underscores its commitment to defence spending, though Prime Minister Anthony Albanese has resisted US calls to agree to a target of 3.5 per cent.

Minister for Defence Industry Pat Conroy on July 3 confirmed the purchase of AIM-120C-8 and AIM-120D-3 missiles, developed by American defence company Raytheon Technologies.

They will be used by Australia's F/A-18 and F-35 fighter jets and a new army brigade focused on striking aerial targets up to 500km away, he added.

Mr Albanese, who is yet to meet US President Donald Trump, has rebuffed a US request to agree to

lift long-term defence spending to 3.5 per cent

of gross domestic product.

It's forecast to rise to 2.3 per cent by 2033.

Foreign Minister Penny Wong, who met with her US counterpart Marco Rubio on July 1 in Washington, said Australia took a "capability approach" and had already committed to the largest peacetime increase in defence funding.

"I know there will be more capability required, I think we all understand that, and we will fund the capability Australia needs," she said on July 3 in a television interview with Sky News Australia.

Mr Albanese's scheduled meeting with Mr Trump on the sidelines of the G-7 was cancelled when

Mr Trump left the summit early

due to tensions between Israel and Iran.

Ms Wong said the security allies were working to reschedule a leaders' meeting.

Seeking to respond to China's build-up of its military, Mr Albanese pledged A$74 billion (S$61.88 billion) in 2024 to buy missiles from Europe and the US, including A$21 billion to establish a Guided Weapons and Explosive Ordnance Enterprise in Australia.

The sale of 400 missiles to Australia through the US foreign military sales program was notified to the US Congress in April.

A further US$2 billion proposed sale of US electronic warfare systems and equipment for Australia's F/A-18 Super Hornet and EA-18 Growler fighter jets was notified in June. REUTERS

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