VCE Politics 2026 Unit 4 AOS 2: 'Australia in the Indo-Pacific'

What is the AUKUS agreement and what are its benefits for Australia? (Military Power, Economic Power, Diplomatic Power, National Security)

AUKUS is a trilateral security partnership, announced in September 2021 to deepen cooperation between Australia, the United Kingdon and the United States. For Australia, it brings benefits in military deterrence, national security, interoperability and strategic competition.

How much is the AUKUS agreement expected to cost? (Economic Power, Challenge)

An estimated 250 billion- over 350 billion USD, with three different phases and the first submarine delivery to Australia expected in the early 2040s. As of 2026, Australia has paid over $1.5 billion to the United States with $10 billion in total expenditure, and the final submarine delivery is not expected until 2059.

What are some of Australia’s foreign policy objectives (national interests)?

To protect its security, promote economic prosperity, strengthen relationships in the Indo-Pacific, support a rules-based international order, and act on climate change and regional resilience.

What is the Vuvale Union between Australia and Fiji? (Diplomatic, Economic, Security, Reigonal Relationships)

A treaty signed in July 2026, providing skills and training opportunities for Fijians in Australia. To ‘integrate our economies, our security and our peoples’ (Penny Wong) and ‘protect and promote democracy’ (Fijian prime minister).

What was the Ocean of Peace agreement? (Economic, Military, Security, Diplomacy, Change, Challenge)

A military and security agreement made in 2026 between Australia and Fiji, with Australia committing more than 1 billion AUD to the agreement over 10 years. It is Fiji’s first formal defence alliance, and both states will come to the aid of the other in case of armed invasion. China responded with a ballistic missile test launch in the Indo-Pacific near Tuvalu.

What is one bilateral security treaty made between Australia and the Solomon Islands? (Security, Stability, Regional Relationships, Aid)

The bilateral security treaty signed in 2017, authorising Australia to deploy federal police and the defence force (contributing to regional stability). Since 2022 Australia has provided an average of $180 million per year in aid to the islands.

When did the Solomon Islands sign a security agreement with China? (Change, military power, diplomacy, national security, challenge, ‘partner of choice’.

In April 2022. This agreement challenges Australia’s foreign influence, and allows China to ‘make ship visits… carry out logistical replenishment… and have stopover and transition in the Solomon Islands.’ China can deploy ‘police, armed police, military personnel and other law enforcement forces’ to maintain ‘social order’.

What is a non-security agreement between Australia and the Solomon Islands? (Diplomacy, Relationships, Security, Stability)

The Australia-Solomon Islands Development Partnership Plan 2024-2029. It involves bilateral development cooperation, and will result in ‘improved stability, security, and resilience’ (Australian Government).

Why are the Solomon Islands important to Australia?

The Solomon Islands are only 2,000 km from the Australian coastline, and two-way trade between the two states was valued at close to $400 million in 2023.

What is the relationship between Australia and China like? (Trade, Diplomacy, Cultural)

China absorbs almost $200 billion in exports from Australia each year. It makes up over 25% of Australia’s trade. There is a free trade agreement. ‘Cooperate where we can, disagree where we must, and engage in the national interest.’- Albanese 2024. China is also one of Australia’s largest exporters of international students and immigrants, creating a cultural impact.

What is the PukPuk Treaty? (Diplomacy, Change, Aid)

A mutual defence treaty signed between Australia and Papua New Guinea in October 2025. It is PNG’s first alliance. Australia spent an estimated over $700 million between 2025 and 2026 in official development assistance to PNG, with over $4 billion spent on the state since 2020, making Australia its largest aid donor.

What is the Pacific Rugby League Partnership? (Cultural, Economic, Aid)

An agreement between Australia and Papua New Guinea made in July 2026, in which PNG will receive its own NRL team in 2028, with $600 million in support from the Aus government across 10 years funding the team.

What is the Pacific Islands Forum? (Diplomacy, Political, Economic, Regional Relationships, Stability)

A political and economic organisation of Indo-Pacific states. Includes Fiji, the Solomon Islands, Papua New Guinea, Tuvalu and Australia.

What is the QUAD agreement? (Diplomacy, Challenge, Regional Relationships, Regional Standing)

A strategic partnership involving Australia, Japan, India and the United States. It promotes the international rules-based order. China has described it as an ‘exclusive clique’ and a tool for ‘bloc confrontation’.

What is the Five Eyes Agreement? (Diplomacy, Security, Regional Standing)

An intelligence-sharing partnership between Australia, Canada, New Zealand, the United Kingdom and the United States. The Chinese ‘Global Times’ criticised it as an ‘axis of white supremacy’.

What are some reasons for Australia/China hostility? (Perspective, Challenges, Regional Relationship)

Covid and the trade war, Huawei, and the Five Eyes. China’s militarisation, human rights record, and Taiwan issues.

What are some key factors in the relationship between Australia and the United States? (Security, Trade and Diplomacy, Relationships)

The AUKUS agreement, the free trade agreement, and Pine Gap. Australia has ‘the CIA’s most important technical intelligence collection station in the world’ with 38 satellite dishes.

What are some positive internal perspectives on AUKUS? (Military, Security, Economic, Perspectives, Success)

The agreement aims to ‘build deterrence that could […] restrain [Beijing’s] aggressive behaviour. (Dr Motwani, 2024). ‘The biggest single investment in Australia’s defence capability in all of our history, strengthening Australia’s national security’(Albanese 2023). ‘Hugely impactful’ (Marles 2026).

What are some internal criticisms of AUKUS? (Military, Security, Challenges, Change)

“As the United States lurches further to the unpredictable right and the costs of AUKUS submarines spiral into the hundreds of billions, now is the time to end this dangerous gamble with our security.”- Greens Party.

What is the stance of the United States on AUKUS? (Military, Security, Diplomacy)

The initiative is about making sure participating states have ‘the most modern capabilities we need to manoeuvre and defend against rapidly evolving threats.’- Biden 2021.

What is China’s perspective on AUKUS? (Challenges, Regional Standing)

The deal ‘undermines regional peace and stability and constitutes grave risks of nuclear proliferation’.

How has Australia used its diplomatic power in the Indo-Pacific? (Diplomacy, Stability)

Australia has 55 diplomatic posts in Asia and the Pacific, and has a permanent diplomatic presence in every Pacific Islands Forum member states. It is also a member of QUAD and the Five Eyes.

How has Australia used cultural power to achieve its national interests in the Indo-Pacific?

Through the Papua New Guinea sports agreement.

How has Australia used the foreign policy instrument of diplomacy in pursuit of its national interests in the Indo-Pacific? (Diplomacy)

After Labor’s 2022 election, Penny Wong travelled to Fiji, and explained how the visit ‘demonstrates the importance we place on our relationship with Fiji and on our Pacific engagement.’

How has Australia used the foreign policy instrument of trade in order to pursue its interests in the Indo-Pacific? (Trade, Diplomacy, Regional Relationships, Economic, Stability)

Australia is a member of the Regional Comprehensive Economic Partnership Agreement, a free trade agreement from 2022 that comprises multiple Indo-Pacific states including China, Indonesia and the Philippines that removes tariffs on roughly 91% of goods across member countries

How has Australia used the foreign policy instrument of foreign aid in the Indo-Pacific? (Aid)

Australia seeks to ‘advance an Indo-Pacific that is peaceful, stable and prosperous’ (DFAT 2023). Australia provided Papua New Guinea with $2 million in funding after a 2024 landslide.

What are some examples of Australia’s use of economic power in the Indo-Pacific?

Australia has invested huge amounts of money into the AUKUS deal and the Pacific Sports Aid agreement.

What is the relationship between Australia and Papua New Guinea? (Relationship, Diplomacy trade)

Australia and Papua New Guinea are 4 km distant at their closest point. Australia is the PNG’s largest trading partner, with two-way trade worth over $5 billion in 2023. They have a Comprehensive Strategic and Economic Partnership (2020) and a Bilateral Security Agreement (2023), as well as the PukPuk Treaty and the Pacific Sports Aid Agreement. Australia gave money in 2024 as landslide recovery aid. However, Papua New Guinea has been a member of the Belt and Road Initiative in 2018.

What are some criticisms of Australia’s use of foreign aid being considered as self-interested? (Challenge to regional relationships, perspectives on foreign aid).

Former Papua New Guinea PM Somare described Australian aid as ‘boomerang aid’. Current PM Marape does ‘not want forever to be a recipient of aids and grants’ (2023).China has promised assistance to Papua New Guinea without ‘strings attached’ or ‘an imposition of our will’ (2024).

What is the Treaty signed between Australia and Tuvalu? (Diplomacy, Change, Regional Relationships)

The Australia-Tuvalu Falepili Union Treaty was signed in 2023, allowing 280 Tuvaluans per year to move to Australia on a Climate Visa. 82% of the population applied in 2023.

What are some details of the COVID-19 trade war between Australia and China? (Trade, Economic, Challenge to Relationships)

China imposed trade restrictions on Australia following Scott Morrison’s call for investigation into COVID origins in 2020. It set 80% tariffs on barley, 200% tariff on wine, and a ban on Australia coal, reducing exports to China from 46% of Australia’s total to 27% and costing the Australian economy 24 billion AUD 2020-2023.

What is the Australian view on the 2022 China-Solomon Islands security agreement? (Challenges, Change)

The non-disclosure clause undermines regional standing and limits oversight. Analysts describe the agreements as having a ‘seismic impact on the geopolitics of the Indo-Pacific.' Australia disappointed Solomon Islands seeking aid ‘outside Pacific family’ with ‘potential to undermine stability in our region’ (Aus Gov 2022).

Why has Huawei caused tension between China and Australia? (Challenge to relationships and diplomacy).

Huawei telecommunications company was banned in Australia in 2018 due to concerns that it would be compelled by Chinese intelligence services, as the company had received at least 1.5 billion USD in Chinese funding.

What are some quotes about Australia’s relationship with the United States? (Security, Military Power, Regional Relationships, Perspectives)

The states have ‘aligned values’, and America is ‘very important’ ‘in terms of being that security guarantor’ (Marles, 2026). The United States is Australia’s ‘most important defence relationship’ (Department of Defence, 2024).

How has China been increasing its assertiveness in the Indo-Pacific? (Diplomacy, Security, Military)

It formed the Solomon Islands Security Agreement 2022. The Australian government was ‘deeply disappointed’ with the Solomon Islands seeking assistance outside ‘the Pacific family’ (Payne 2022). ‘China is engaging in the biggest conventional military buildup that the world has seen since the end of the Second World War’ and Australia is seeing it ‘spread its wings’ in the Indo Pacific (Marles 2026). AUKUS has been part of Australia’s response to this buildup.