- The Hon Pat Conroy MP, Minister for Pacific Island Affairs
- The Hon Dr Anne Aly MP, Minister for International Development
The Albanese Government will continue to invest in strengthening Australia’s relationships, region and resilience in the 2026-27 Budget, ensuring Australia remains secure and influential in an increasingly uncertain world.
The Budget delivers investments to support peace, stability and prosperity in the Indo-Pacific, strengthen Australia’s partnerships and protect Australians at home and overseas.
The global development landscape is undergoing a profound transformation. Developing countries across the Indo-Pacific are confronting a triple shock of major global aid cuts, trade disruption and energy insecurity linked to conflict in the Middle East.
These pressures risk undermining hard-earned development gains and increasing instability across our region.
At a time of instability and uncertainty, the Albanese Government will continue to prioritise the Indo-Pacific, where Australia has most at stake.
In the 2026-27 Budget, Australia’s total Official Development Assistance will be maintained.
Australia’s development program must be strategic, effective and sustainable. This has required reprioritising some multilateral funding to meet immediate needs in the Indo-Pacific.
Funding will be reduced to the United Nations Development Programme, the Global Partnership for Education, UNAIDS and the Pandemic Fund.
This reprioritisation will ensure that over 75 cents in every development dollar is directed to our region.
The Budget also reinforces Australia’s long-term investment in regional security and strategic partnerships.
The Australia-Indonesia Treaty on Common Security (the Jakarta Treaty 2026), signed by leaders in February 2026, represents the most significant step in the bilateral relationship in decades and reflects the deep trust between our nations.
The Albanese Government will commit $33.2 million to strengthen institutional ties between Australia and Indonesia, increase Indonesian language and country expertise in Australia, and create a new leadership dialogue to foster connections and deepen understanding.
The next phase of our Comprehensive Strategic Partnership with India will build on the unprecedented progress that we have made across strategic, economic and people-to-people fields. The 2026-27 Budget commits $25.3 million to drive Australian business engagement with India’s rapidly growing economy, seed new areas of cooperation through Maitri grants, and strengthen maritime security in the Indian Ocean.
Keeping Australians safe is the first priority of the Albanese Government. The Budget invests $60.5 million to sustain Australia’s critical consular services around the world and support Smartraveller travel advice to help keep Australians safe overseas.
Australia will also continue its steadfast support for Ukraine’s sovereignty and economy in the face of Russia’s unjustified invasion, extending Ukraine’s duty-free access to Australia for a further two years until July 2028.
The Budget also includes $87 million to support the DFAT portfolio, alongside other government entities, to implement Australia’s nuclear-powered submarine program. We are committed to setting the highest non-proliferation standards and implementing robust domestic regulation to oversee Australia’s nuclear safeguards and non-proliferation and nuclear security obligations.
Quotes attributable to Foreign Minister Penny Wong:
“At a time of global uncertainty, Australia will remain a reliable partner our region can count on.
“We are building the region we want – one that is peaceful, stable and prosperous, where sovereignty is respected and countries can determine their own futures.
“Our investments in diplomacy, development and regional partnerships strengthen both Australia’s national security and the resilience of our region.”
Quotes attributable to Pacific Island Affairs Minister Pat Conroy:
“Pacific countries are facing growing pressures from climate change, economic disruption and global instability, and Australia is stepping up as a trusted partner.
“We are prioritising targeted investments that back Pacific priorities, strengthen local resilience and support long-term development.
“Australia’s engagement in the Pacific is grounded in trusted partnerships, respect and our shared interest in a peaceful, stable, prosperous region.”
Quotes attributable to International Development Minister Anne Aly:
“Australia’s humanitarian program opens up opportunities and supports communities to be stronger, safer and more resilient.
“At a time of growing global uncertainty, Australia is continuing to invest in the people and relationships that help create a more stable and secure region for everyone.
"Our humanitarian program reaches some of the most vulnerable communities in our region, making real on the ground change when it comes to health, climate and gender equality."