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Defence Minister Joel Fitzgibbon says Australia can afford to buy all the equipment in the Defence white paper that he will announce later this morning.
Prime Minister Kevin Rudd and Mr Fitzgibbon will reveal Defence spending plans of around $100 billion, including buying 12 new submarines, eight new ships and 100 combat aircraft.
Defence will have to find $20 billion of savings to help meet the cost.
He argues that changes in the region, including the re-emergence of Russia , will mean Australia needs to boost its navy and air force.
"In other words, we need to be able to defend our country without necessarily relying on the assistance of other nation states."