The Albanese government will plunge almost $2 billion into the Pacific region, as it tries to expand diplomatic and economic links with island nations and entrench Australia's position as its major security partner.
Tuesday night's budget also includes a funding boost for the Department of Foreign Affairs and Trade (DFAT) after a review found parts of Australia's diplomatic network were stretched and grappling with "serious gaps" in capabilities.
Its largest Pacific commitment is a major security package – as first flagged by the ABC last week – which is worth around $1.4 billion over four years.