Saw this this morning. Thought it was pretty interesting news for a nation that I usually think of as being pretty quiet in the sense of international conflict (don't worry, I know you Aussies know how to have a good time otherwise.)
My problem with it basically stems from the fact that a lot of what went into the tactical planning seems to be about making sure we can defend ourselves from China. And the reality is, any conventional war between China and us (inevitably resultin in China vs the US) that doesn't start really soon - as in, the next decade or less) is going to end up going nuclear before most of that kind of equipment is going to be of any use. And even if it didn't, the scale of the Chinese military and their recent push towards modernization means that they're likely going to be able to roll us over without really to much effort (assuming no US/Euro intervention, which I think we can safely assume is unlikely in the extreme). I would have preferred the focus be on fighting non conventional, assymetric wars - they're the wars of the 21st century - the days of mechanized warfare between major states ended with the advent of the nuclear ICBM. Unfortunately, we're not currently properly equipped to fight these kinds of wars, and the way things are now, it doesn't look like we're going to be for the next several decades at least.
Any of the other aussies (or foreigners for that matter) have an opinion on this?
A nuclear war is a lot less likely than you think, even if somehow, Australia and China got to ****slinging.
While Australia is a nuke-free state as far as I know, all of its major allies that have been listed, have plenty. While this of course doesn't eliminate a nuclear threat, it does "demote" a nuclear threat against Australia to your basic MAD doctrine of paradoxical nuclear counter-deterrence. What the defense strategy is really focusing on, is basically beefing up Australia's tactical capabilities for the next generation of warefare, in order to demand more political power, rather than designed to counter specific threats.
The F35 is the future generation of affordable fighter technology. Not only that, but it's joint-development and integrative systems means it will be par for any US / NATO aligned state within ten years. The F35 will be to them as the Vyper is to BSG. But really though, what the F35 means for the Auzzies is power-parity against whatever new MiG China has or will be getting. The subs, while I don't know specifics about, are what I would imagine as more of the same strategy.
Really, the reason for the upgrade in "conventional" arms is to raise the bar of limits on international political power. Everyone has a limit. While China is unlikely to invade mainland Australia anywhere short of WWIII, it is much more likely to get up into arms about some island / territorial resource, shipping rights, fishing rights, etc. At that point, with the brunt of the Chinese Navy and Airforce staring Australia down, nuclear allies or not, Australia would have a much stronger voice if it has shiny new jet fighters and submarines to back up its demands vs. yesteryear's F-18's and Harriers. Also note that simply being more self-reliant means the Aussies don't need to ask for as much support from their allies, which allows them international political capital to spend elsewhere.
Any particular reason why Australia would fight China?
Not really. It's a combination of things - mostly China is the strongest nation in our immediate region, and people still have a lot of leftover cold war fear (Communist = the enemy), so it's natural to want to compare military strengths with them. Also, their growth as the likely next superpower and their military modernization has people scared that they might have expansionist ambitions. Plus I've heard suggestions that the stance may be related to domestic issues - Rudd's been getting hurt a bit lately by the opposition claiming he's too close to China, and too pro-China, so putting up a strong, China focussed military plan suggests that's not true (though personally I don't think it's been an issue long enough to have had a really significant impact on something like this).
Also equally likely as an explanation for the boost in these particular areas of the military - domestic politics.