Finance Minister Simon Birmingham says there will be an increase to defence spending in the budget.
"We have been putting in place increases in defence expenditure each and every year that we've been in office," Mr Birmingham told Sky News Australia.
"AUKUS would not have been possible had our government not increased the defence expenditure to what it is today.
"We would not have been a credible enough partner to enter into those deeper military ties with the US and UK without that increase to defence expenditure."
