Defence spending is about two per cent, and is set to rise to just above 2.3 per cent by the end of the decade with increased expenditure.
Funding for defence is a key issue for the Trump administration, which is pushing its allies to pay for their share.
US President Donald Trump's pick for defence policy under-secretary Elbridge Colby has called for Australia to increase defence spending to three per cent of gross domestic product, in line with the level advocated by NATO.
Prime Minister Anthony Albanese said Australia determined its national interest.
"My government is allocating significant additional resources for defence that is being rolled out, including missiles, including a range of assets that improve both our capability, but also importantly, our delivery," he told reporters in Canberra on Thursday.
"My government is delivering increased defence assets and increased defence capability, and that's what we're rolling out."
Asked about the US' decision to withhold intelligence from Ukraine, Mr Albanese said the nation determined its own foreign policy.
"It is in Australia's national interest to support the brave struggle of the people of Ukraine, led so admirably by President Zelenskiy," he said.
"Our position on Russia has not changed. The way that this war should stop tomorrow is for Russia to withdraw and to back off from its illegal and immoral invasion."
Treasurer Jim Chalmers said the government had yet to be advised about reciprocal tariffs to be imposed by Washington.
They would be placed on nations that tax US products or impose "unfair, discriminatory or extraterritorial taxes" on American businesses and consumers.
The tariffs include value-added taxes, fuelling speculation Australia's Goods and Services Tax could put it in the firing line but Mr Chalmers says the federal government hasn't been advised about any extra tariffs.
"We've been engaging every level, the prime minister to the president, a number of senior ministers have been engaging with our counterparts in the US, making the case for Australia, for Australian industry and Australian workers," he told ABC radio on Thursday.
"But we take no outcome for granted that I suspect the decision on Australian exemptions has not been made and so we'll continue to make our case."
Australia is set to be hit with a 25 per cent tariff on steel and aluminium as officials work to secure an exemption, which Mr Trump said he would consider weeks ago.
Mr Albanese said the duties were not in the interests of the US or Australia.
The US runs a trade surplus with Australia - with Mr Trump citing trade deficits as a reason for tariffs - and imports into Australia weren't taxed, Dr Chalmers said.
Defence Minister Richard Marles said he pointed to Australia making "a historic increase in our defence spending" when he spoke with his US counterpart Pete Hegseth.
The opposition has called for more to be spent, with finance spokeswoman Jane Hume flagging a potential rise to three per cent.
"We expect we will meet our international obligations and if taking defence spending up to a much higher proportion of GDP is the expectation ... that's where we need to go," she told Melbourne radio station 3AW on Wednesday.
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