Australian statecraft must restore the link between deterrence and non-proliferation to survive in the new nuclear age

In the week of Australia’s 3 May election, ASPI will release Agenda for Change 2025: preparedness and resilience in an uncertain world, a report promoting public debate and understanding on issues of strategic importance to Australia. This is an article from the report. The full report can be read here.
The problem: Australia and the region face a rising tide of nuclear coercion
Nuclear weapons are becoming a more salient feature of the international order in ways that the next Australian Government can’t afford to ignore. Russia, China and North Korea are expanding their arsenals and leveraging new technologies to coerce others with nuclear threats, as Moscow demonstrated by intimidating democracies into restricting their support for Ukraine.
Of greatest concern to Australia, Beijing is rapidly expanding and modernising its nuclear arsenal, including deploying large numbers of shorter-range missiles that can probably field nuclear as well as conventional warheads. While the US has a larger nuclear stockpile, it arguably lacks the flexibility that China is developing to fight a limited nuclear war in our region—a war in which the main targets would be military units and infrastructure, including in the territories of US allies such as Australia, while China and the US curtail nuclear strikes against each other’s homelands for fear of uncontrolled escalation. As Beijing’s nuclear arsenal grows, so might its willingness to use non-nuclear coercion and military aggression to reshape the Indo-Pacific, especially if the regional balance of conventional forces continues to shift in China’s favour. In strategic circles, this is called the stability–instability paradox.
The US is responding with overdue investment in its conventional and nuclear forces, including the deployment by the mid-2030s of a new sea-launched, nuclear-tipped cruise missile (SLCM-N). Because the SLCM-N could be deployed on US Navy vessels that routinely visit allied ports, it signals assurance as well as deterrence. But the Trump administration faces budget constraints, including competing demands on defence spending, such as the planned Golden Dome missile defence system.
Strategic commentators enjoy compiling lists of capabilities that the US should acquire, which sometimes includes calls for redeploying ground-launched nuclear missiles on allied soil—a capability that the US retired after the Cold War. Even if the Trump administration backed such ideas, capitalising on the US’s withdrawal from the Intermediate Nuclear Forces Treaty in 2019, the US nuclear-industrial base would struggle at current capacity to fill orders for new nuclear systems in a timely fashion. In theory, allies could help by investing directly in US production lines. For instance, Australia’s investment in US shipyards should accelerate delivery to the US Navy of Columbia-class ballistic missile submarines, the primary mission of which is nuclear deterrence, as well as the Virginia-class attack submarines that the RAN will acquire.
Cognisant of the US’s limits, the Trump administration has ramped up longstanding pressure on allies to shoulder more of the burden of collective defence, including linking allied defence spending to US security assurances in the case of NATO. Trump and some of his team also sometimes seem equivocal about the US’s longstanding policy of dissuading allies from acquiring nuclear weapons. That has spurred debate about the reliability of the US nuclear umbrella, which is formally called extended nuclear deterrence (END). Some ‘umbrella states’ that receive US protection, including South Korea and Poland, have openly mooted acquiring nuclear weapons, while others, including Japan, probably have the latent capacity to develop and deploy nuclear weapons promptly if the political decision were taken to do so.
French President Emmanuel Macron is leading discussions about expanding French, and perhaps also British, contributions to END in Europe. But such conversations would be harder in the Indo-Pacific, where the US presently remains the only provider of END amid a concentration of nuclear powers that includes India and Pakistan, as well as China, North Korea and Russia.
With so many uncertainties, any perceived gap in the US umbrella could be exploited for nuclear coercion. While North Korea and Russia make nuclear threats routinely, the real concern for Australia is China because it has the gamut of nuclear, conventional and hybrid tools of coercion, all focused on the Indo-Pacific.
The solution: Australia should put deterrence at the heart of its approach to non-proliferation, arms control and disarmament
In line with decades of public strategic guidance, the 2024 National Defence Strategy (NDS) addressed Australia’s approach to nuclear deterrence only briefly, in a paragraph on page 14:
Australia’s best protection against the increasing risk of nuclear escalation is US extended nuclear deterrence and the pursuit of new avenues of arms control.
That remains the right approach, at least for now, but only if the next Australian Government is willing to invest more to lock in US commitment. That should include deeper political, logistical and conventional military contributions to END, beyond hosting visiting US nuclear forces and the joint and collaborative facilities, such as Pine Gap.
Canberra could learn from NATO’s model for pooling risk, responsibilities and decision-making, which includes allies using their conventional forces to protect and enable US nuclear operations, as well as tightly circumscribed nuclear sharing arrangements. Although NATO-style conventional–nuclear integration grafts imperfectly onto Australia’s strategic situation and legal obligations, there’s leeway in frameworks like the South Pacific Nuclear Free Zone that Australia could leverage, if the government has the political courage to try. Discussions between Canberra, Paris and London about NATO might segue fruitfully into the roles that France and Britain see themselves playing in Indo-Pacific deterrence.
In the same vein, Australia should coordinate its deeper contributions to END with Japan and South Korea, the other regional umbrella states. Indeed, minilaterals like the Australia–US–Japan trilateral defence ministerial meeting are already working in areas relevant to deterrence, including contingency planning and networked air and missile defence. Even so, Canberra must remain alert to subtle differences in national objectives and approaches to crisis management in Tokyo and Seoul. Equally, the Trump administration might treat the US’s Indo-Pacific allies somewhat differently, and it isn’t yet clear whether and how the Biden-era concept of integrated deterrence will be reflected in Trump’s forthcoming national security strategy. Regional partnerships are important, but the next Australian Government needs the confidence and policy nous to develop bespoke contributions to the US alliance and END.
Whatever options are considered for strengthening END, the most important task for the next government will be giving the ADF the resources and conventional equipment required for deterrence by denial, which includes fully delivering both pillars of AUKUS. A conventionally capable ADF couldn’t directly counter Chinese nuclear threats, but it makes those threats less credible by raising the cost to Beijing of using coercion or military aggression up to the nuclear threshold. By way of comparison, Moscow’s nuclear threats have so far deterred direct Western military intervention in Ukraine, but not Kyiv’s willingness to fight. Ukraine’s experience shows that facing down nuclear threats requires national resolve as well as military capability. Civil defence and national mobilisation were not mentioned explicitly in the public version of the NDS, but they could be vital to countering nuclear coercion.
The NDS didn’t specify which ‘new avenues for arms control’ Australia should pursue, but those efforts need to reinforce the core multilateral architecture around the Non-Proliferation Treaty, including the Partial Test Ban Treaty and ongoing efforts to put into effect the Comprehensive Test Ban Treaty and the Fissile Material Cut-off Treaty. While the prospects for progress on multilateral arms control are dim, active engagement with those frameworks could somewhat raise the reputational costs to the Trump administration of striking opaque arms-control deals with Russia, China or North Korea without adequately consulting allies.
However, if the US or other key partners such as South Korea were to seriously contravene or withdraw from multilateral regimes—for example, by testing a nuclear weapon—then Australia should prioritise deterrence and strategic necessity over any moral argument for non-proliferation. Punitive sanctions against an ally or partner, like cutting off uranium exports, would be justified only if they served Australian interests and security. Washington’s allies, such as South Korea, would probably take the drastic step of proliferating only if they had serious concerns about US protection, in which scenario, Australia could not afford to burn bridges with its regional partners.
Prioritising Australia’s strategic interests in such circumstances need not equate to abandoning the whole premise of non-proliferation. As with deterrence, the constraining power of the nuclear taboo is eroded with each violation, rather than disappearing completely in the first mushroom-shaped puff of smoke. Non-proliferation discussions could continue through smaller groups, even if the multilateral framework fractured. Such minilateral groups, which Australia excels at convening, might help mitigate the risk of a regional proliferation cascade being triggered by a new entrant to the nuclear club.
At present, Australia’s active participation in multilateral non-proliferation remains essential to AUKUS safeguards and our wider security. But Canberra still has the leeway to prioritise deterrence and responsible nuclear stewardship more clearly in its advocacy. As part of that sharper approach, Canberra should oppose unrealistic calls for immediate progress towards universal disarmament, including the Treaty on the Prohibition of Nuclear Weapons, which undermines END without having any discernible effect on China and Russia.
To implement this policy, the next government would need the political courage to manage blowback from domestic anti-nuclear constituencies and our Pacific neighbourhood. In private, ministers should also be frank with their New Zealand counterparts about the limits that Wellington’s membership in the Treaty on the Prohibition of Nuclear Weapons could place on the cross-Tasman limb of the ANZUS security treaty and bilateral cooperation on defence and procurement. The government must also rebut disinformation, from Beijing and elsewhere, falsely claiming that Australia is set on proliferation.
Thankfully, the Trump administration seems relatively focused on competing with China, which should help prop up the US role in regional deterrence structures. However, nothing is certain. Australia and its partners, notably Japan and South Korea, need the policy flexibility to deal with gradations of US retrenchment, which would more likely occur in a piecemeal and inconsistent fashion rather than in a precipitous and total one, sending mixed deterrence signals.
One policy option seems unrealistic: it’s questionable whether Australia retains the technical knowledge and industrial base required for an indigenous nuclear weapons program. The government of then Prime Minister Bob Hawke was embarrassed when details of a classified assessment of the lead time required for developing nuclear weapons leaked in 1984, and several treaties and domestic laws have since made the process harder. Given the prevalence of disinformation about Australia’s nuclear intentions and regular punditry about building a bomb, it’s surprising how little attention non-proliferation has received in the current debate about civil nuclear power in Australia.
If the strategic outlook were sufficiently dire to warrant serious consideration of a sovereign nuclear capability, including bearing the enormous financial costs and potential damage to relations with Indonesia and others in the region, then Canberra would need a proliferation partner, as ASPI Senior Fellow Rod Lyon has pointed out. It’s plausible that the US might one day act as Australia’s proliferation partner, especially if Washington wanted to curtail or withdraw END, but the independence of such an Australian capability would be subject to scrutiny, as Britain’s nuclear deterrent is. The modest size and vulnerability of a sovereign Australian nuclear capability would also compromise its credibility.
This leads us back to the more pressing task on the next Australian Government’s plate: raising the conventional capability of the ADF for war fighting and deterrence by denial. The range of strategic options available to the next and subsequent Australian governments will stem from the investments made now in the ADF and national defence, including the signals those send to allies and partners as well as adversaries. As my colleagues, Malcolm Davis and Marc Ablong, point out in their chapters, urgent work is required to patch the holes in ADF readiness and the defence budget.
Policy recommendations for the next three years
Put the Prime Minister at the centre of nuclear policy.
END and non-proliferation policy straddles the portfolios of the Defence Department and the Department of Foreign Affairs and Trade, but also engages the responsibilities of Home Affairs, the national intelligence community and—when viewed through the wider lens of the nuclear fuel cycle and nuclear research—the various branches of government responsible for business, energy, education and legal affairs.
Prime ministers have guided important shifts in nuclear policy before, such as the decision to lift the ban on uranium exports to India, a nuclear-armed state outside the Non-Proliferation Treaty, which eventually resumed in a piecemeal fashion in 2017. But that process was tortuous and slow, damaging Australia’s partnership with India.
Given the magnitude of the nuclear challenges that Australia now faces, central coordination needs to be better resourced, perhaps under the direction of a national security adviser (see Danielle Cave’s chapter), to support the Prime Minister in setting the policy direction and cutting through bureaucratic rivalries.
There are potential downsides to centralisation, especially if the Prime Minister had a poor grasp of deterrence or were wedded to idealistic forms of arms control, but the greater risks are inaction and incoherence, which often occur when policy is balkanised between bureaucratic fiefdoms.
Design the expansion of HMAS Stirling and Henderson shipyard near Perth to accommodate the maintenance of nuclear-armed US Navy vessels.
From around 2027, HMAS Stirling will host regular rotations of US and British attack submarines (SSNs) as part of the Submarine Rotational Force—West (SRF-W) component of AUKUS. HMAS Stirling, and the SSN maintenance facilities being developed at Henderson shipyard a short distance away, will significantly improve the operational effectiveness of US submarines in the region, while also alleviating pressure on US shipyards. Those advantages should factor strongly in the US Government’s assessment of the net value of AUKUS to the US Navy’s undersea capabilities, which is a required step before the transfer of Virginia-class SSNs to the Royal Australian Navy in the 2030s.
From the mid-2030s, some of the US Navy SSNs operating from SRF-W could be armed with SLCM-N nuclear missiles, improving collective deterrence and highlighting the value of AUKUS to Washington. Therefore, the design of Australian infrastructure around SRF-W needs to accommodate nuclear-armed US vessels. It should be possible to do that in a manner that complies with Australia’s non-proliferation obligations. As Foreign Minister Bill Hayden clarified in the 1980s, US naval vessels with nuclear weapons on board could even dry-dock in Australia within the terms of the South Pacific Nuclear Free Zone.
Use multilateral forums to champion responsible nuclear stewardship and the positive contribution that US extended nuclear deterrence makes to strategic stability and non-proliferation.
The 2024 AUSMIN statement included new language complementing the US’s ‘responsible transparency as a nuclear weapon state’ and called for Russia and China to engage meaningfully in similar efforts. That harks back to Robert Menzies’ view in the 1950s of the great powers’ responsibilities as nuclear stewards. But that strand of Australian statecraft has been understated in recent decades, as arms control and disarmament have taken the centre ground. By foregrounding responsible stewardship, Australia could shift the discussion in multilateral forums—including small groups that Australia helps drive, such as the Non-Proliferation and Disarmament Initiative—away from regarding nuclear weapons as the problem and towards scrutiny of the nuclear coercion and secrecy practised by a handful of authoritarian countries. In the same vein, Australia should publicly defend END as a contribution to non-proliferation.
Remove ‘sole purpose’ from Australia’s declaratory policy on extended nuclear deterrence.
Starting with Australia’s 1994 Defence White Paper, successive defence strategic guidance documents and statements have implied that Australia relies on US extended nuclear deterrence only for protection against nuclear attack. The 2024 NDS retained the implication of ‘sole purpose’ by referring specifically to protection against nuclear escalation.
That approach is outdated. China could plausibly use a variety of non-nuclear means to mount large-scale and highly damaging attacks against Australia, including cyberattacks and long-range conventional strikes against the Australian population and critical infrastructure, imposing an air–sea blockade, and cutting off Australia’s digital connectivity to the world by severing subsea cables and jamming satellites. By dropping ‘sole purpose’, Australia would be aligning its declaratory policy more closely with partners such as Japan.