Supporting a resilient and secure region: a reliable partner in uncertain times

We live in an interconnected world, but what matters most to Australia's future is our own region, the Indo-Pacific.

At a time of heightened global uncertainty, where developing countries are under increasing pressure, the Australian Government has worked to rebuild our international development program—ensuring Australia remains a partner of choice for the countries in our region.

In 2025-26, Australia will deliver $5.097 billion in Official Development Assistance (ODA), an increase of $135.8 million from 2024-25. Our development program is more strategic, effective and responsive, ensuring resources are directed where they are needed most. Three-quarters of our total ODA funding benefits the Indo-Pacific region—a 40-year record for Australia's international development program.

Guided by our landmark International Development Policy, we are driving investments in the region that reduce poverty, provide rapid and effective humanitarian relief, and deliver health, education, economic and social development.

A stable region in a changing world

Now we face a new challenge, with traditional development partners dramatically reducing ODA levels. While the full impact of these cuts is not yet clear, we know there will be consequences for stability and prosperity in our region.

Australia is responding to this challenge by reprioritising our development investments to bolster support to our region. We are prioritising targeted, high-impact investments that build resilience and respond to their needs, making us all more secure. We will:

• Provide $1 billion over five years to help build economic resilience in Pacific and Southeast Asian countries, including expanding access to finance for small businesses, creating jobs, and strengthening financial systems. This will complement our investments in critical infrastructure and digital transformation to drive trade and economic stability.
• Maintain our support for climate action through a $355 million package over four years to help Pacific and Southeast Asian communities withstand climate-related shocks. We are supporting partners, including through $179 million to Climate Resilient Communities, meeting our target of integrating climate change objectives across the development program, and deploying the Australian Development Investments Climate Catalyst Window to mobilise private finance for climate solutions.
• Deliver an $81 million regional health resilience package over three years, building on the Partnerships for a Healthy Region (PHR) initiative. The package will assist Pacific and Southeast Asian nations to continue their ability to prevent, detect, and respond to disease outbreaks while maintaining essential services for HIV and tuberculosis, maternal and child health, family planning, and sexual and reproductive health.
• Provide $100 million over eight years to strengthen Indonesia's human and animal health security and emergency response capacity, as well as build resilient health systems.
• Commit $370 million over three years to address the rapidly escalating humanitarian crisis in Myanmar and continue support for more than one million Rohingya refugees and their host communities in Bangladesh.

Delivering impact with transparency

Since 2022, the Australian Government has rebuilt the development program to be more effective, transparent and responsive to our partners. Development Partnership Plans guide our approach. Our new transparency portal (AusDevPortal), resumed annual reporting to the International Aid Transparency Initiative, and annual Performance of Australian Development Cooperation reporting provides unprecedented transparency of ODA investment and performance data, ensuring greater accountability.

Economic resilience

Australia's future prosperity is tied to a strong, stable and successful region that fosters economic growth, job creation and long-term opportunities. Economic resilience goes beyond GDP growth—it's about jobs, financial stability, and future opportunities for the next generation.

As a leading economic partner in the region, Australia drives inclusive and sustainable development through policy reform, social protection, trade, investment and workforce initiatives. Our investments strengthen regional prosperity and economic resilience, helping Australia and our partners withstand global economic shocks.

In 2025-26, Australia's development program will deliver a $1 billion, multi-year economic resilience package across the Pacific and Southeast Asia to support fiscal sustainability, financial systems, economic reform, labour mobility and skills, and job creation.

This economic resilience package complements Australia's major investments in the economic development of the region.

Australia's investments in the Pacific focus on the areas Pacific Island countries have identified as most critical to their economic development—infrastructure, connectivity, tourism, trade, banking and labour mobility. The Pacific Australia Labour Mobility (PALM) scheme brings approximately 30,000 Pacific workers to Australia each year, contributing to our economy and boosting Pacific economies through remittances – estimated at $450 million in 2024-25. These remittances boost PALM workers' family incomes and local economies while strengthening economic growth of their home countries. These remittance flows come on top of Australia's ODA flows to Pacific countries and Timor-Leste. PALM workers build connections between Australian businesses and Pacific workers, gain new skills to take back to their communities, and enhance economic ties between Australia and the Pacific.

In Southeast Asia—forecast to be the world's fourth-largest economy by 2040—Australia is committed to building shared prosperity and harnessing the opportunities of this dynamic economic transformation.

Our development investments align with country-led economic priorities and reduce poverty and inequality. New economic partnerships worth $416 million in Indonesia, Philippines and Timor-Leste will support critical policy reforms, accelerate private sector development, expand social protection and create skills development opportunities.

We will amplify our development impact through non-ODA investments and partnerships. The Government's 10-year guarantee for Australia and New Zealand Banking Group Limited (ANZ) banking in the region ensures financial services remain available in nine Pacific countries and Timor-Leste—keeping communities connected to Australia and the global financial system. This supports trade opportunities, infrastructure investment and financial inclusion and continues Australia's 140-year banking partnership with the Pacific. Australia's new $2 billion Southeast Asia Investment Financing Facility and Deal Teams are supporting clean energy and infrastructure development to catalyse private Australian investment. In December 2024, Australia approved its first investment under the Facility—$75 million for the Singapore Government's Financing Asia's Transition Partnership (FAST-P) initiative, accelerating the region's clean energy transition.

Australia remains a steadfast partner in regional forums, including the Pacific Islands Forum (PIF) economic community, the Asia-Pacific Economic Cooperation (APEC), and as a dialogue partner to the Association of Southeast Asian Nations (ASEAN).

Pacific

Australia's closest neighbours are Pacific Island countries, and their stability, security and prosperity are directly tied to our own. As a trusted and longstanding partner, Australia is committed to supporting the Pacific family in building a stronger, more resilient region—guided by Pacific priorities.

Australia works alongside Pacific governments, communities, and regional organisations, delivering Pacific-led, Australian-backed solutions that build resilience and support essential service delivery in the face of climate, economic and other shocks.

In 2025-26, Australia will deliver a record $2.157 billion in ODA to the Pacific, reaffirming our position as the region's largest and most comprehensive development partner. This investment strengthens our bilateral relationships, and supports implementation of key agreements, including the Tuvalu-Australia Falepili Union, Fiji-Australia Vuvale Partnership and Nauru-Australia Treaty.

Australia recognises climate change as the single greatest threat to the Pacific's livelihoods, security and wellbeing. We are supporting the region's transition to renewable energy, its landmark Pacific Resilience Facility, and are providing at least $1.3 billion (2020-25) in climate finance to help Pacific nations adapt to the effects of climate change and protect vulnerable communities. Australia is also progressing the Pacific Climate Infrastructure Financing Partnership, investing in off-grid and community-scale renewable energy in remote Pacific communities. These reflect our commitment to helping Pacific nations protect their environment, economies and people from climate risks.

A strong Pacific economy means a more secure region. Australia's investments support economic resilience, job creation and essential services, ensuring Pacific communities have the skills and financial resources they need to ensure stability in an uncertain world.

We have committed at least $296 million in budget support to help our neighbours respond to shocks, strengthen economic resilience and sovereignty, and deliver essential services. This includes a multi-year commitment of $85 million to Tonga over the next four years, reflecting the trust between our two countries.

Australia will invest up to $229.5 million for the new Pacific Australia Skills program, providing Australian-recognised qualifications and employment pathways to strengthen the region's workforce. Australia's longstanding skills investments have seen more than 20,000 graduates build job-ready Pacific workforces, helping meet the region's demand for more tailored and flexible skills—critical as countries in the region navigate the local impacts of global uncertainties.

Reliable financial access is critical to economic stability. Australia is working with banks and Pacific Governments to maintain banking services in the Pacific, key to trade, investment and financial inclusion. We are supporting Pacific partners to comply with international banking regulations and develop digital identity tools, improving financial inclusion and reducing risks. We are also partnering with the Commonwealth Bank of Australia to provide banking services in Nauru as part of the transformational Nauru-Australia Treaty.

Listening to and respecting Pacific priorities, and supporting Pacific regionalism, is fundamental to our partnerships, which help drive regional cooperation, economic self-reliance, and stronger governance—ensuring Pacific nations can shape their own futures. As part of this commitment, Australia has pledged $660 million over three years to the World Bank's International Development Association's replenishment, which will support increased resources for Pacific Island countries to invest in infrastructure, economic resilience and social services.
 

Deepening engagement with Southeast Asia

Nowhere better encapsulates opportunities and challenges than the region to our north: Southeast Asia. We have enduring connections – through geography, trade, history and people – and a shared vision for a peaceful, stable and prosperous region, with ASEAN at the centre.

We are deepening Australia's development partnerships with Southeast Asia. In 2025–26, Australia will deliver $1.28 billion in ODA to the region. We will continue to evolve our support to meet mutual priorities – including climate change, inclusive and sustainable growth, health security, and resilient communities.

Australia will continue our efforts to address climate change. Under the Mekong-Australia Partnership, up to $40 million will be provided over four years to civil society organisations working on gender-inclusive climate action, recognising that women and girls are disproportionately impacted by climate-related humanitarian crises. In Cambodia and Vietnam, we are increasing long-term investment in climate change adaptation and water management.

Human development and social inclusion remain core to our partnerships. In Indonesia, a new $100 million health resilience initiative will build resilient health systems, improve maternal and neonatal healthcare, and strengthen human and animal health security, including by funding the World Health Organization (WHO), United Nations Children's Fund (UNICEF) and United Nations Population Fund (UNFPA).

Timor-Leste is one of our closest neighbours. We are investing in its future and responding to its emerging needs. The Timor-Leste-Australia Labour Mobility and Skills Partnership will provide $48.6 million to equip Timorese workers with job-ready skills, including a new recruitment and training centre in Dili and enhanced access to Australian-recognised qualifications. We will provide $80 million over four years for gender and disability inclusive health care and education.

In the Philippines, a new $40 million program will help tackle poverty and inequality through social protection schemes. We will continue to invest in basic health to support the people of Myanmar. These investments will be accompanied by a new humanitarian package to deliver lifesaving food, health and protection services.

We will deepen our people-to-people and institutional linkages. Through the Southeast Asia – Australia Government-to-Government Partnerships program, Australian and Southeast Asian government agencies will build relationships and strengthen policy and technical capability.
 

South and Central Asia  

Australia is strengthening its partnerships across South and Central Asia, providing $356.8 million in 2025–26 to address transboundary challenges, enhance economic security, and support long-term regional stability. Guided by a regional Development Partnership Plan, our investments focus on skills development, infrastructure, trade, water resources and agriculture, leveraging Australian expertise to drive sustainable growth.

We continue to prioritise humanitarian needs, particularly for women and children in crisis settings, working with UN agencies and civil society partners to deliver life-saving assistance. To boost economic resilience, Australia is increasing Australia Awards scholarships for the region and investing in targeted skills programs, including a $3 million technical and vocational education and training initiative in Bangladesh and a $3 million women's economic empowerment program in Sri Lanka.

An expanded regional connectivity program will provide technical assistance and training to help South Asian governments to manage quality infrastructure, fostering greater regional economic integration. In the Maldives we will enhance climate resilience through a $5 million coral reef conservation initiative, protecting critical ecosystems that support livelihoods and tourism.

Strengthening health systems for a safer, more resilient region

Strong health systems are essential for regional stability, economic resilience, and disaster preparedness. The Indo-Pacific faces ongoing health resilience challenges, including worsening HIV crises in several countries, and vulnerability to disease outbreaks and future pandemics.

Australia is increasing its health investments to ensure our region is better equipped to prevent, detect, and respond to disease threats, while improving access to essential services and promoting health for all.

Enhancing health emergency preparedness and response

Australia will invest in strengthened public health capability in our region, to ensure timely, effective responses to health threats. Australia will support improved health surveillance systems, laboratory testing and diagnostics, and vaccination programs.

Strengthening health services

Australia is investing in health in our region to support more resilient communities, improve health outcomes and save lives. In 2025-26, we will work with partner governments and civil society to support continuity of essential service delivery, including for HIV and Tuberculosis, maternal and child health, and sexual and reproductive health.

Building a healthier future – for all

Australia will integrate health resilience into regional development strategies and ensure our investments are partner-led and work with partners to address the needs of vulnerable populations. By addressing urgent needs now, Australia is strengthening regional preparedness, ensuring our partners are better equipped to manage future health challenges.

Climate action

Recognising the impact climate change has on development outcomes, Australia is continuing our strong support for climate action to help Pacific and Southeast Asian communities withstand climate-related shocks.

We continue to use ODA strategically to mobilise additional private and philanthropic finance for climate action. Through Australian Development Investments, our new $126 million Climate Catalyst Window for Southeast Asia, South Asia and the Pacific will unlock private sector investment in clean energy, adaptation, and resilience solutions.

Australia's International Development Association's 2025-2028 replenishment pledge includes a strong focus on climate mitigation and adaption in low-income and vulnerable countries.

Advancing opportunities for all

Advancing gender equality and disability equity reflects Australia's values and is a national interest. It creates opportunities for everyone to thrive and makes our region more prosperous, secure, resilient, and inclusive.

Our commitment to leaving no one behind is affirmed in Australia's International Disability Equity and Rights Strategy and International Gender Equality Strategy.

Through these strategies, we are expanding existing efforts that drive tangible outcomes. For example, we are increasing support for preventing sexual and gender-based violence, including through Pacific Strong: Amplifying Action to End Violence against Women and Girls, a new $25 million initiative supporting Pacific crisis support centres. We are also increasing access to essential assistive technology across our region.

In 2024, Australia introduced a new performance target for disability equity—60 per cent of development and humanitarian investments performing effectively on disability equity by 2026 and 70 per cent by 2030. This complements our target of 80 per cent of development and humanitarian investments performing effectively on gender equality.

In 2023-24, Australia invested over $2.3 billion in programs and initiatives that advanced gender equality, and more than $1.5 billion in projects that supported disability equity and rights.

ANCP: strengthening Australia's engagement in development

For the past 50 years, the Australian Non-Government Organisation Cooperation Program (ANCP) has driven impactful community-based development outcomes across a wide range of sectors, including education, health, water and sanitation, food security and economic development. As funding cuts by major aid donors creates unprecedented uncertainty in our region, Australia remains committed to supporting local partner organisations deliver essential services to partner communities across the Indo-Pacific and around the world. We are providing the ANCP with temporary additional flexibility to help them work with partners to adjust to direct impacts from cuts to international development assistance by other donors.

2023-24 ANCP outcomes

• 382 projects delivered across 51 countries, with 73 per cent of funding directed to the Indo-Pacific region
• More than 50 accredited Australian NGOs and over 2,000 local organisations
• Approximately 4.1 million people reached through ANCP-supported initiatives

Key deliverables:

• 3 million+ people gained improved access to health services
• 600,000+ people benefitted from better drinking water and sanitation 
• 200,000+ people benefitted from increased access to sufficient food
• 50,000+ people reached with new or improved social protection programs 
• 45,000+ women supported to assume political, economic, and community leadership roles
• 30,000+ additional girls and boys enrolled in school

Infrastructure: strengthening connectivity

Digital connectivity is a priority for Australia in the Pacific, recognising the significant economic and development benefits of a well-connected, resilient digital ecosystem. In line with the Lagatoi Declaration, Australia supports the Pacific's digital development through investments in undersea cable connectivity as well as support to expand digital access, capacity building and cyber resilience, and digital safety and regulatory reforms.

The Australian Infrastructure Financing Facility for the Pacific (AIFFP) is delivering secure and reliable digital connectivity to remote island nations. This includes the East Micronesia Cable, the Tuvalu Vaka Cable, the Tonga Hawaiki Branch System, the Palau ECHO Branch System, as well as the earlier Coral Sea Cable System. Resilient digital networks mean Pacific communities can maintain critical communication channels, including during emergencies, and take advantage of the economic and human development opportunities this connectivity can support. As a result of these investments, and our work with likeminded development partners, by the end of this year, every Pacific Island country will have undersea telecommunications cable connectivity.

Australia is also working with Pacific partners to reform legislative and regulatory frameworks to improve digital safety and mitigate the risk of online harm. DFAT's new Cable Connectivity and Resilience Centre complements this, drawing on Australia's expertise to provide technical assistance and research to support reform across the region.

Investing in education and skills for a resilient Indo-Pacific

Education is a driver of economic growth and social resilience. Australia is aligning education investments with regional workforce needs, ensuring stronger skills development and leadership pathways.

In 2025-26, Australia will invest $572.4 million in education, reflecting Australia's sustained commitment to human development in our region and globally. We are strengthening learning outcomes and ensuring education remains accessible, inclusive and responsive to evolving workforce demands.

Australia is expanding access to its world-class education sector, and building leadership, expertise and institutional ties across the region, by providing more than 1,500 long-term Australia Awards scholarships in 2025, and increasing funding for Australia Awards in Indonesia, Papua New Guinea and the Mekong region. Through Australia Awards Fellowships, we are also supporting mid-to-senior level professionals from across the Indo-Pacific undertake short-term educational placements that address bilateral and multi-country development priorities.

Australia will renew its investment in long-standing Pacific education and skills partnerships, including the Vanuatu-Australia Education and Skills Partnership and Pacific-Australia Skills. We will also strengthen workforce readiness through vocational training and skills development across the Pacific and Southeast Asia.

Humanitarian action and peacebuilding: Responding to global humanitarian need

Australia has an abiding commitment to helping others in crisis, which keeps our region secure and our people safe.

In 2025-26, Australia will increase humanitarian assistance to an estimated $709 million, supporting effective responses to conflict, global displacement, and disasters across the region. A new $370 million multi-year package will address rapidly escalating humanitarian need in Myanmar and continue to support more than one million Rohingya refugees and their host communities in Bangladesh.

Australia will provide more than $136 million in predictable funding to global and Australian partners to strengthen disaster preparedness and crisis response. We will maintain our investment in critical capabilities including humanitarian supplies and emergency medical and disaster response teams, ensuring Australia is ready to assist when partner governments request support. The Humanitarian Emergency Fund of $150 million will continue to support our response to protracted crises and rapid onset emergencies.

Australia will invest an additional $11.5 million in strengthening the global humanitarian system, driving reform to make it more effective, inclusive and responsive to evolving crises.

We will continue our investment in peacebuilding, to assist with country stability in our region and around the world, and in turn contribute to Australia's security and prosperity. In 2024, we increased our annual contribution to the UN Peacebuilding Fund to $15 million and will continue to enhance Australia's global leadership and advocacy during Australia's term on the Peacebuilding Commission in 2025 and 2026.

Australia's humanitarian assistance is underpinned by Australia's new Humanitarian Policy, published in October 2024. The policy outlines the role Australia will play when need is outstripping the world's capacity to respond, and disregard for international law is increasing. We are building readiness and preparedness, responding to crises and disasters with support that meets needs and protects the most vulnerable, and reinforces the international humanitarian system.
 

Humanitarian partners and UN development agency core funding tables

*The tables above represent core funding. Australia provides additional funding to partners through global, regional and country programs.

Table 1: Australian ODA allocations by country, regional and global programs

ⁱ Cook Islands has graduated from the OECD Development Assistance Committee list of ODA-eligible countries. Allocations and flows for Cook Islands are not included in Total ODA.

ⁱⁱ 2025–26 allocations and flows to Nauru may change subject to Nauru’s ODA eligibility status from 1 January 2026.

All 2024-25 and 2025-26 Budget figures are estimates. Due to rounding, discrepancies may occur between sums of the component items and totals.

OGD figures include estimated ODA grant equivalents on AIFFP loans based on scheduled disbursements (subject to the terms of loans).

Table 2: Australian ODA by country and region of benefit

ⁱ Cook Islands has graduated from the OECD Development Assistance Committee list of ODA-eligible countries. Allocations and flows for Cook Islands are not included in Total ODA.

ⁱⁱ 2025-26 allocations and flows to Nauru may change subject to Nauru's ODA eligibility status from 1 January 2026.

ⁱⁱⁱ2024-25 flows to Republic of Palau include funding from the Pacific Aviation program. Final 2025-26 flows to Republic of Palau from this program are still to be determined.

^iv One-year funding of $50 million was provided in 2024-25 to support Tuvalu to secure its first undersea telecommunications cable.

^v 2025-26 figures for estimated flows from ADF have been disaggregated to support transparency of flows to the Asia-Pacific region.

Table 3: Australian ODA delivered by other government departments

* Represents grant equivalent of loans for the Australian Infrastructure Financing Facility for the Pacific (AIFFP) administered by Export Finance Australia.
 

Table 4: Total ODA Sector Flows

Table 5: Australian ODA Projected Forward Estimates