Australia and Timor-Leste are close neighbours and partners, with shared history and strong people-to-people links. Australia has been at the forefront of international support for Timor-Leste since its independence on 20 May 2002 when diplomatic relations formally commenced.  Australia is Timor-Leste's largest development and security partner. 

Many Australians are actively engaged with Timor-Leste through Australian state, territory and local governments, non-government organisations, the private sector, learning institutions and friendship groups.

Timor-Leste has a population of around 1.3 million. The official languages of Timor-Leste are Tetum and Portuguese, while English and Indonesian are working languages. Approximately 95 per cent of Timorese are Catholic.

Bilateral relations

Australia and Timor-Leste’s partnership is profoundly important to both countries. Located just 650 kilometres apart, the stability, security, resilience, and prosperity of our two countries are deeply interconnected. Our history, common interests and geography connect us now and into the future. Our partnership is founded on mutual respect and maintained through a steady cycle of engagement and consultation.

Australia is fully committed to supporting the independence, sovereignty, and economic prosperity of Timor-Leste. 

In line with the Government of Timor-Leste’s objectives, Australia is supporting Timor-Leste’s regional integration, including its full accession to the Association of Southeast Asian Nations (ASEAN) and post-accession obligations as a member of the World Trade Organization (WTO).

Australia has strong partnerships with Timor-Leste's armed forces and national police. We cooperate closely on regional security issues, including maritime security, border security and transnational crime.

The bilateral relationship is maintained through regular, high-level engagement by Australian and Timorese ministers, Members of Parliament, and officials. Recent high-level engagement includes:

• a visit to Dili by Veterans Affairs Minister Keogh in September 2024 for the commemoration of the INTERFET deployment in 1999
• a visit to Dili by Deputy Prime Minister Marles in August 2024 for the celebration of 25 years since Timor-Leste’s Popular Consultation, the independence referendum
• a visit to Melbourne by Prime Minister Gusmão, accompanied by Vice Prime Minister Kalbuadi Lay and Foreign Minister Freitas, to the ASEAN-Australia Special Summit in March 2024, during which Prime Minister Albanese announced a $5 million English language program for Timor-Leste's ASEAN accession
• a visit to Perth by Foreign Minister Freitas in February 2024 for the Indian Ocean Conference
• a visit to Dili by Minister for International Development Conroy in January 2024, during which he announced Phase V of the Timor-Leste Police Development Program ($35 million, 2024-2028) and support for returning PALM workers
• a visit to Canberra by Minister for Petroleum and Natural Resources Monteiro in January, 2024
• a visit to Dili by Foreign Minister Wong on 7 July 2023, during which she announced an additional $2 million to support Timor-Leste’s accession to ASEAN and the WTO, and the doubling of Australia Awards scholarships from 10 to 20 places
• a visit to Australia by then Prime Minister Taur Matan Ruak, accompanied by Foreign Minister Magno, from 6-10 February 2023, during which the Strategic Partnership Agreement between Timor-Leste and the Northern Territory was renewed.

Political overview

Timor-Leste achieved independence on 20 May 2002. Timor-Leste's independence resulted from a UN-sponsored referendum in August 1999.

Timor-Leste's head of state is a directly elected President with limited executive power. The Prime Minister is the head of government and is formally appointed by the President. The Prime Minister is usually the leader of the political party that can form a majority or majority coalition in the unicameral national parliament.

Timor-Leste's most recent parliamentary election was held on 21 May 2023. Kay Rala Xanana Gusmão was sworn in as the Prime Minister of Timor-Leste on 1 July 2023. The National Congress for Timorese Reconstruction (CNRT) party, headed by Gusmão, won 31 seats in the 65-seat parliament and formed a coalition government with the Democratic Party (PD) (6 seats).

In response to an invitation from the Timor-Leste Government, three Australian parliamentarians – Ms Rebeka Sharkie MP, Senator Wendy Askew and Member of the NSW Legislative Assembly Ms Janelle Saffin – observed the election. Staff from Australia's Embassy also observed voting at polling stations across the country.

Timor-Leste held a two-stage presidential election in March and April 2022. Dr José Ramos-Horta defeated the incumbent president, Francisco Guterres Lu'Olo, in the second ballot on 19 April and was sworn in as President on 19 May 2022.

Trade and investment

In 2023, two-way merchandise trade between Australia and Timor-Leste was worth $242.9 million. Australian exports to Timor-Leste totalled $132.0 million with major items including business travel and passenger motor vehicles. Imports from Timor-Leste totalled $110.9 million, including recreational and business travel, and coffee. The country fact sheet contains more details about Australia's trade and investment relationship with Timor-Leste.

Our economic partnership is growing. An increasing number of Australian-related businesses are operating in Timor-Leste, covering financial services, oil and gas, shipping, trade, manufacturing, and services. We have a solid foundation to strengthen economic and business links to support Timor-Leste’s development and regional integration, aligned with Invested: Australia’s Southeast Asia Economic Strategy to 2040.

Timor-Leste’s modest economy is dominated by the petrochemical sector, which accounts for the vast majority of GDP. Government spending accounts for around 90 per cent of the economy and 85-90 per cent of Timor-Leste’s revenue comes from oil and gas. Remittances, agriculture, fisheries, and tourism are other important sectors for the economy. Diversifying the economy is a key priority for Timor-Leste’s government, which has a stated ambition to scale up blue and green economies.

Remittances from Timorese workers overseas – including those in Australia under the Pacific Australia Labour Mobility scheme - are the largest non-petroleum contributor to the economy. Since 2012, Timorese participants in Australian labour mobility programs have sent home more than $104 million in remittances.

Timor-Leste's legal system is based on civil law. A broad range of legislation has been promulgated, and further strengthening of legal and judicial frameworks will be key to promoting economic development. Important commercial legislation that has been passed by Parliament includes investment law, commercial registry, and tax legislation.

The Timorese Constitution does not permit foreign land ownership, although leases and joint venture arrangements are possible.

Security and defence cooperation

Our defence and security partnerships are longstanding and broad.

Australia was in the front-line of support for Timor-Leste's transition to independence. Australian civilian police and military personnel participated in the United Nations Assistance Mission to East Timor (UNAMET) from June 1999, to organise, conduct and supervise the referendum, held on 30 August 1999, to allow East Timorese to choose between autonomy within Indonesia, or independence. Australia also led the multinational International Force East Timor (INTERFET), comprised of 22 nations, which restored security in Timor-Leste following the 1999 post-independence ballot violence. With around 5,500 Australian personnel, INTERFET remains Australia’s largest peacekeeping mission to date.

Australia continuously supported peacekeeping and nation-building activities from 1999-2013. Australia led the 2006-2013 International Stabilisation Force (ISF), comprised of Australian and New Zealand Defence Force members. The ISF provided security back-up to the United Nations Integrated Mission in Timor-Leste (UNMIT) and remained in Timor-Leste at the invitation of the Timorese Government. Australia also participated in the United Nations Transitional Administration in East Timor (UNTAET)(2000-2002), the United Nations Mission of Support in East Timor (UNMISET)(2002-2005), the United Nations Office in Timor-Leste (UNOTL)(2005-2006), and UNMIT (2006-2012).

As Timor-Leste’s largest policing partner, we have continued our commitment to supporting Timor-Leste’s efforts to maintain law and order and build police force capability along a community policing model though the Timor-Leste Police Development Program. 

Our Defence Cooperation Program has partnered with Timor-Leste to support the development of a capable and responsive Defence Force and Ministry of Defence, which contributes to the country’s growth and stability. On 7 September 2022, Australia and Timor-Leste signed a reciprocal Defence Cooperation Agreement (DCA). The DCA will facilitate Australia and Timor-Leste to increase defence and security cooperation, including in the maritime domain, given our shared border and adjacent maritime zones.

People connections

As neighbours we have formed deep personal connections, forged through shared experiences during the Second World War, the Timorese journey to independence, and the growth of the Timorese diaspora in Australia. Many Australians remain actively connected to Timor-Leste, including through the Australia-Timor-Leste friendship group network, and community and church groups.

Through the Australia Awards, Australia provides scholarships for Timorese students, researchers, and professionals and we are proud to have hosted over 350 talented Timorese emerging leaders to study in Australia. Many of the alumni network are now in leadership positions in government, the private sector and in the community. The Awards aim to develop capacity and leadership skills so that individuals can contribute to development in Timor-Leste and build personal connections with Australia. Timorese nationals are eligible for long-term Awards (Australia Awards Scholarships) and short-term Awards (Australia Awards Fellowships).

The Australian Volunteers Program promotes economic growth and poverty reduction in the Indo-Pacific region by matching skilled volunteers with host organisations to partner in the achievement of their development goals. Australian Volunteers work in a wide range of sectors and contribute to Timor-Leste's development outcomes as well as build enduring people-to-people links between the two countries.

The Pacific Australia Labour Mobility (PALM) scheme is helping address labour shortages in rural and regional Australia and providing additional opportunities for workers from Timor-Leste to develop skills, earn income and support their families back home. As of August 2024, there were more than 4,000 Timorese workers in Australia under the PALM scheme. Timor-Leste has now achieved the milestone of 16,000 mobility assignments in Australia since joining Australia's labour mobility programs in 2012.

Development assistance

Australia has been at the forefront of international support for Timor-Leste since independence in 2002 and remains Timor-Leste’s largest development partner (estimated $123.3 million in total ODA in 2024-25). We have a strong interest in Timor-Leste’s stability, security and prosperity. Australia is committed to being an effective, responsive and long-term partner and we continue to adapt our development partnerships to meet Timor-Leste’s priorities.

The Australia – Timor-Leste Development Partnership Plan 2025-2030 (DPP) will set out the development priorities Australia shares with Timor-Leste. It is underpinned by extensive consultations with a broad range of partners, including government, civil society and other development organisations.

Australia is working in partnership with the Timor-Leste Government to deliver long-term human development outcomes, grow and diversify the economy and to support the resilience of institutions and communities. For more information on Australia - Timor-Leste development partnerships, visit the Development assistance to Timor-Leste page.

Regional and global economic integration

In 2011, Timor-Leste applied for membership of the Association of Southeast Asian Nations (ASEAN). In November 2022, ASEAN Leaders issued a statement announcing 'in-principle' agreement to admit Timor-Leste as ASEAN's 11th member. As it prepares for full membership, Timor-Leste has been granted observer status.  

In 2024, Timor-Leste acceded to the World Trade Organisation (WTO) at the 13^th Ministerial Conference in Dubai. Its accession negotiations were completed in record time for a Least Developed Country (LDC) - just over seven years. Australia reached a bilateral agreement on market access with Timor-Leste in 2022 as part of this accession process, supporting Timor-Leste's integration into regional and global trade networks. 

Australia is continuing to support Timor-Leste's ASEAN and WTO ambitions with a $11.8 million funding package [2022-29]. This support is flexible and includes targeted technical assistance for the Timor-Leste Ministry of Economic Affairs, support for trilateral capacity building workshops in partnership with ASEAN members states and the ASEAN Secretariat, and an English language training program to begin in 2025. The English language training program was announced at the ASEAN-Australia Special Summit in March 2024.