Opposition defence spokesman Senator David Johnston said more than $25 billion had been removed from defence, with spending now down to 1.56 per cent of gross domestic product (GDP) and set to fall to 1.49 per cent next year.
He said no other portfolio had endured such a financial assault.
“I really believe it has reached crisis point,” he said in an address to the Lowy Institute in Sydney.
Senator Johnston said Defence Minister Stephen Smith had refused to rule out more cuts to defence in the budget next month.
“I see the prime minister traipsing across the country promising roads, education funding, NDIS plans, massive financial giveaways with not a cent to our national security,” he said.
Senator Johnston said there had been funding cuts to all agencies directly and indirectly related to Australia’s security and that was plainly irresponsible and dangerous.
He said the funding commitments in the 2009 Defence White Paper had never been achieved and, with the benefit of hindsight, that document was nothing less than an elaborate confidence trick.
Consequently, it would be difficult to believe anything the government might say about defence funding in the new Defence White Paper, set to be released by the end of June.
Senator Johnston said a new coalition government could commit only to not cutting defence spending any further and it would be less than honest to promise an immediate increase.
“Our aspiration is that as soon as we have come to terms and corrected the current fiscal situation, we will return to the aspiration of two per cent of GDP and three per cent real growth in the defence budget,” he said.
“I don’t believe for one moment that rebuilding Defence will be easy, but it will be done.”