Appropriation Bill (No. 1) 2026-2027
Mr THISTLETHWAITE (Kingsford Smith—Assistant Minister for Immigration and Assistant Minister for Foreign Affairs and Trade) (17:57): We're living in a period of sharper strategic competition, where rules and norms that underlie our security are under enormous pressure. The conflicts in Ukraine and the Middle East are having material effects on Australians at home and their safety abroad, where disruptions to trade and global reductions in development assistance threaten the economic prosperity of our region.
In this environment, we can't afford to be passive. We must work to shape a peaceful, prosperous region where Australia is a trusted partner, and that's what the budget does. The budget continues our government's commitment to investing in our region, our resilience and our relationships.
It focuses our development assistance where Australia has the most at stake and where it can have the greatest impact, and that is in our neighbourhood, in the Indo-Pacific. The global development landscape is changing rapidly, and developing countries in our region face significant pressures, including major global aid cuts, trade disruptions and energy insecurity as well.
In 2026-27, Australia will invest $5.2 billion in official overseas development aid. Going to the last speaker's question, it's an increase in our overseas development aid budget. It's an indexed increase of $112 million from 2025-26, and our government introduced indexation to the overseas development aid budget.
More than 75c in every development dollar will support the Indo-Pacific. There is $2.2 billion for the Pacific and $1.4 billion for South-East Asia. This is a strategic investment in Australia's national interests.
When our region is peaceful, stable and prosperous, Australia is more secure. When our neighbours are more resilient, Australia is more resilient. This budget continues our deepening engagement with the Pacific, supporting climate resilience, health, education, economic resilience, connectivity, infrastructure and access to essential services.
Our focus is primarily on security, and we've already announced the Pukpuk Treaty, which builds on other agreements that we have: the Vuvale partnership with Fiji and the Falepili union with Tuvalu. It was also wonderful to see Matthew Wale, the new Prime Minister of Solomon Islands, here today—evidence of the growing relationship between Australia and our Pacific neighbours.
We're backing that commitment with the Australian Infrastructure Financing Facility for the Pacific, with an additional $550 million in capitalisation, supporting high-quality, sustainable infrastructure across the region. For Pacific island countries, climate change is the No. 1 priority, and Australia will provide $173.7 million directly to climate change and environment initiatives for our regional development partners, which is a $29 million increase.
In South-East Asia, this budget also strengthens Australia's engagement with a region central to our future. The Australia-Indonesia Treaty on Common Security—the Jakarta treaty—is a major step forward in our relationship with Indonesia, and this budget provides $33.2 million over four years to strengthen our institutional ties, increase Indonesian language and country expertise in Australia, support economic security and resilience, improve civil maritime capabilities and establish an annual Australia-Indonesia leadership dialogue.
With India, the budget provides $25½ million over four years to build our comprehensive strategic partnership. These are practical investments in the relationships that matter most to our community and to Australia. At a time of global uncertainty, the government is investing in trade diversification.
We've been successful in securing the Australia-European Union Free Trade Agreement—and I will give credit to the opposition. The A-UKFTA and the CPTPP were good agreements, and Labor offered support to those. The question for the opposition is: will you offer similar support for the Australia-EU Free Trade Agreement, which opens up and expands markets for Australian agricultural producers, into the largest market in the world—Europe?
That is a question that they will not answer. Will they or won't they support the Australia-EU Free Trade Agreement? I was asked to provide an update regarding fuel.
I can tell the House that we now have 48 days worth of fuel, 30 days of avgas and 36 days of diesel. Who would have thought that we now have more fuel supplies in stock than we did when this crisis began! It's a great example of the wonderful work that our government has done in securing fuel supplies for the Australian people, to ensure that our economy doesn't face disruption, and a great example of the strong relationships that we have internationally.
Proposed expenditure agreed to.