The Albanese government will increase defence spending to about 3% of GDP by 2033 in its 2026 National Defence Strategy to be unveiled on Thursday.
But it is using a revised definition that, in effect, makes the defence spend appear larger than it is.
The Trump administration has repeatedly made it clear Australia should boost its defence spending. Last year, a top Pentagon official, Elbridge Colby, cited the 3% figure in pushing for Australia to spend more.