Australia has a habit of being caught with its pants down when it comes to defence spending. In 1938, Australia’s defence spend was a miserable 1.6 per cent of GDP. In the last ten years, it has wavered around 1.9 to 2 per cent. While the measure of defence spending as a percentage of GDP does not necessarily reflect the capability of one’s defence force, it does indicate that Australia has not been pulling its weight.