Prime Minister Scott Morrison announced a pledge of $186 billion to be allocated to Australia's military budget over the next decade, which comes out to a 40 percent increase in arms spending.
Morrison said that Australia intends to acquire long-range missiles and other military capabilities that would "deter" potential conflicts in the future, according to BBC News.
He went on to mention the high-tension areas such as the border of India and China, where they was recent bloodshed, as well as the conflict in the East China Sea and South China Sea.
The relationship between Australia and China is considered to be the worst it has been in decades, as China seeks to clamp down on Chinese persons living in Australia.
Much of the tension comes amid the COVID-19 outbreak, where Australia has been pushing for an independent investigation into what started the coronavirus outbreak in China. Australia has vowed that they would not be deterred.
Australia is set to purchase its military materials from the US Navy, including 200 long-range, anti-ship missiles, which are able to travel a total distance of 229 miles.
It is also reported that the country will be looking into hypersonic weapons systems, made up of missiles that can travel much further.
Nearly $10.5 million will be invested in cyber warfare gear, which Morrison noted "says a lot about where the threats are coming from."
He suggested in May that Australian institutions and businesses were the targets of cyber attacks, which was widely interpreted as being directed at China.
Morrison noted that Australia intends to not only defend it own democratic values, but of those in the area, adding that an increased military budget could help with this.