ASPI\'s Five Options

1.3% GDP / 13B : This would remove existing capability. The F111 and Navies older Frigates would be retired. The JSF would be scrapped as would the Air Warfare Destroyers. The Army would also be cut by 3000 troops. Australia would be unable to support overseas deployment, barely be able to maintain security locally and would lead to neighbouring nations having greater capability than Australia within a decade.

1.5% GDP / 15.1B : This would reorder the ADF to a stronger Army at the expense of aerial and naval projection. The Air Force and Navy undergo the same cuts as the above option. The Army receives three more Battalions and Theatre Ballistic Missile Defence is procured. This is an expeditionary realignment where Australia would have difficulty independently defending Australia but would give Australia greater troops to deploy in coalitions overseas. Regionally the Australia Army would still be small. The risk with this is that it relies on US benevolence. It also assumes that the US would accept this role.

1.7% GDP : 16.7B : This is the current Government plan. This includes replacing the F18 and F111 with the JSF, buying the Air Warfare Destroyers, purchasing battle tanks for the Army and the current procurement levels for tankers and AEW&C aircraft. Australia would remain a regional maritime power but Australian air power would be heavily reliant on the small number of force multipliers.

2.1% GDP / 20.3B : This is an ASPI plan where procurement in key areas of capability is increased and accelerated. This doubles the number Destroyers purchased and increases the number of tankers and AEW&C aircraft being purchased as well. The Army would also increase by three Battalions. This would enhance Australia\'s standing as a regional power and be able to operate independently locally. Projection would also be limited to Australia\'s immediate neighbourhood.

2.5% GDP / 24.9B : This includes extra procurement for an extra mechanized brigade, more transport aircraft, more Army helicopters and two aircraft carriers plus aircraft. This procurement would allow Australia to not only dominate its maritime approaches but also to project beyond them.

While the development is being driven by the Pentagon, it is being built by a multinational team in which Britain is the sole \"Tier One\" partner. The government has already provided $2 billion in development funding, and had been slated to buy 150 aircraft for the RAF and Royal Navy.

But Britain is now threatening to withdraw after rows over the Pentagon\'s reluctance to agree to the transfer of technology, and because of likely increases in the price of each plane.