In its recently released budget, the Australian Government says it will raise defence spending by three percent annually for the next nine years.
This year's defence budget is around A$22.6bn.
Defence Minister Joel Fitzgibbon says increasing underlying defence spending by an average three percent in real terms is a big boost.
"The increase will provide an extra A$2.8bn to defence over two years in 2016-17 and 2017-18 and will ensure that our soldiers have the necessary equipment, training and support they require to undertake their difficult work," Fitzgibbon says.
The budget includes total funding of A$1.036bn to maintain overseas defence operations, A$4.8bn for current equipment procurement projects and another A$4.5bn for maintaining and upgrading existing equipment.
Equipment spending of A$45m will be moved from 2008-09 to 2013-14.
By Elizabeth Clifford-Marsh