The n government’s foreign aid handouts to other countries is at its highest level in a decade, yet one think tank says the amount should be greatly increased.
Treasurer Jim Chalmers revealed in the March federal budget that ‘s official development assistance – the money it sends to foreign nations – would exceed the $5billion mark for the first time in 10 years.
Much of that funding went to nations in the Indo-Pacific, as the government attempts to counter China’s growing influence in the region.
Foreign Minister Penny Wong said at the time that increase in funding was designed to ‘central to ensuring stability and security of our region’.
‘In these uncertain times, we are making sure ‘s development assistance is going to the Pacific and Southeast Asia, where ‘s interests are most at stake,’ she added.
The $2.2billion in taxpayer money given to neighbouring countries is intended to support infrastructure, connectivity, tourism, trade, banking and labour mobility.
Papua New Guinea was the largest single recipient, with $707million in aid slated for 2025/26, not counting the $600million it will receive over 10 years for a team to join the National Rugby League.
Indonesia, which has over ten times ‘s population, is to receive $351.4million.
Prime Minister Anthony Albanese was keen to strengthen the relationship with Indonesia when he travelled to Jakarta on his first official visit since being re-elected on May 3.
This keenness was underlined when Indonesian President Prabowo Subianto rang Albanese to congratulate him on his landslide victory.
‘I have a request for you, and I want you to say yes,’ Albanese told his counterpart.
‘I want Indonesia to be my first visit. Not Washington, not Beijing, not anywhere else.’
The Solomon Islands came third with just shy of $171million, Timor-Leste fourth with almost $136million and the Philippines fifth with $124.8million.
Despite the $135.8million increase in overseas aid in the last financial year, Lowy Institute Research Associate Grace Stanhope has called on the Albanese administration to do more.
‘Currently, spends 0.18 per cent of gross national income on aid – barely a quarter of the OECD (Organisation for Economic Co-operation and Development) target of 0.7 per cent,’ Ms Stanhope wrote for The Interpreter.
She added: ‘Ultimately, there’s no escaping that ‘s aid budget is too low, threatening ‘s standing as a global citizen.’
1. Papua New Guinea: $707m
2. Indonesia: $351.4m
3. Solomon Islands: $171m
4. Timor-Leste: $136m
5. Philippines: $124.8m
Just 0.65 per cent of federal government spending currently goes on overseas aid.
‘s generosity has decreased over time.
For example, in 2015 was ranked the 14th most generous country in terms of overseas aid, contributing around 0.29 per cent of gross national income (GNI).
Whereas in 2024, its ranking had slipped to 18th, with just 0.19 per cent of GNI going towards overseas aid, according to the n Aid Tracker.
This situation is unlikely to improve any time soon, as Ms Stanhope notes ‘there is little political appetite to meaningfully scale up’ overseas aid spending.
‘Labor’s first term promise of an aid program rebuild went largely unmet,’ she added.
This is against a global backdrop that has seen countries such as the US, UK, France and Germany all drastically reduce their overseas development assistance.
Many ns were frustrated about billions of dollars being sent overseas while the country faces its own challenges.
‘How about aiding first,’ one said on social media.
‘Five billion he could spend on electricity bills for his own people,’ another said.
‘Imagine if that was added to our defence budget – to buy more defence capability, to defend perhaps,’ a third added.
Despite sending money overseas, does not receive foreign aid from other countries.
‘So we’re nearly a trillion dollars in debt and giving five billion overseas, does that mean we borrow money to give it away,’ one said.
‘Five billion would stop ramping at hospitals, aid out flood and drought victims, reduce our national debt, build amazing infrastructure for ,’ another added.