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Australia is scheduled to pay the United States $2 billion by the end of 2025 to assist its submarine shipyards, in order to buy three Virginia-class submarines starting in 2032 its biggest ever defence project.
The defence ministers meeting on the sidelines of the Shangri-La Dialogue, Asia's premier security forum, is only the second between the security allies since the Trump Administration took office.
Hegseth had "respectfully" said Australia should increase defence spending, Marles said in an Australian Broadcasting Corporation television interview after the meeting.
Marles said they did not discuss a number, although a Pentagon official had previously said Australia should spend 3% of gross domestic product.
Australia's Prime Minister Anthony Albanese, who was re-elected this month and is yet to meet U.S. President Donald Trump, did not raise defence spending in this year's national budget, saying his government had already announced a A$50 billion boost over a decade. Albanese said on Thursday defence spending would rise to 2.4%.