Australia's national interests in the Indo-Pacific: VCE Politics Unit 4

What this dot point is asking

Area of Study 2 shifts the focus to Australia. The first key knowledge item is Australia's national interests across the Indo-Pacific, which fall under the same four headings as for any other state (security, economic prosperity, regional relationships, regional standing). Everyone in the course studies Australia, whichever state they picked in Area of Study 1.

The answer

Security

Australia's security interests include defence of the continent, secure sea lanes and a stable region. In recent years governments have described a more contested strategic environment and increased defence investment. Key actions include:

• AUKUS (announced September 2021), providing a path to nuclear-powered submarines with the United States and United Kingdom. A United States Department of Defense review, completed in December 2025, endorsed the partnership after President Trump said in October 2025 that it would proceed "full steam ahead". Supporters see it as a deterrent; critics, including some Australian commentators and regional states, question its cost, timing and effect on regional arms racing.
• Defence agreements with neighbours. The Pukpuk Treaty with Papua New Guinea (signed 6 October 2025, in force from 8 July 2026) is a mutual defence treaty, described by both governments as Australia's first new alliance in more than 70 years. The Treaty on Common Security with Indonesia was signed on 6 February 2026.
• Capability and partnerships. On 18 April 2026 Australia signed a contract with Japan for three upgraded Mogami-class frigates.

Economic prosperity

Australia is a trading nation with its largest markets in Asia, and China is by far its largest trading partner. Interests include open trade rules, access to markets, resilient supply chains, critical minerals and investment. Trade agreements such as the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Trans-Pacific Partnership serve this interest, as do agreements with Indonesia and India.

Regional relationships

Australia wants strong ties with Southeast Asia, the Pacific and major partners. It treats the Pacific as a priority "family", reflected in treaties with Tuvalu (the Falepili Union, in force from 2024), Nauru (signed December 2024) and Papua New Guinea. It engages with ASEAN, the Quad (with India, Japan and the United States) and with China on a managed basis.

Regional standing

Australia seeks to be seen as a reliable partner and a contributor to regional stability, including through climate diplomacy. In November 2025 it was agreed that Australia would be President of Negotiations for COP31, hosted by Turkiye in Antalya, and would co-host, with Fiji and Tuvalu, a Pacific Pre-COP (5 to 8 October 2026), which raises its profile with Pacific states.

Worked example

Question. Explain how Australia has pursued its interest in regional relationships.

Model answer. Australia has used treaties and partnerships to deepen ties with its neighbours. The Pukpuk Treaty with Papua New Guinea (October 2025) created a mutual defence commitment and a recruitment pathway for Papua New Guineans into the Australian Defence Force, and the Treaty on Common Security with Indonesia (February 2026) commits the two leaders to regular consultation. These actions aim to build trust and stability close to Australia while also increasing Australia's strategic influence.

Try this

Q1

Name two of Australia's national interests in the Indo-Pacific. Model answer: Security and economic prosperity (also regional relationships and regional standing).

Q2

Explain one way Australia has pursued security. Model answer: Through AUKUS or through defence treaties with Papua New Guinea and Indonesia.

Q3

Why might two interests conflict? Model answer: Australia's economic interest in trade with China can conflict with its security concerns about China's military activity.