“Morrison says that to accommodate the AUKUS submarines deal, Australia’s defence budget will need to increase to 2.5 per cent of GDP, and there’s not much doubt he’s right. That’s an extra $10 billion or so per year, on top of a structural deficit of $50 billion a year, already rising to $70 billion. Make that $80 billion. So where is the money coming from? Tax increase or spending cuts?
Source: Budget balance: Spending like Europe means taxing like Europe