Take a look at the attached military spending figures for 2004.

World Total military expenditure $US975 billion.

USA $US455 billion 3.8%GDP
Israel $US 11 billion 9.1%GDP
Japan $US 42 billion 1.0%GDP
Germany $US 34 billion 1.4%GDP
France $US 46 billion 2.6%GDP
UK $US 47 billion 2.8%GDP
Canada $US 11 billion 1.2%GDP
Italy $US 28 billion 1.9%GDP
Fedn of Russia $US 19 billion 4.3%GDP
China $US 35 billion 2.2%GDP
Malaysia $US 3 billion 2.8%GDP
Indonesia $US 4 billion 1.5%GDP
India $US 15 billion 2.1%GDP
Pakistan $US 4 billion 4.4%GDP
Sweden $US 5 billion 1.8%GDP
Spain $US 10 billion 1.2%GDP
South Africa $US 3 billion 1.6%GDP
South Korea $US 15 billion 2.5%GDP
North Korea $US 28 billion NA%GDP
Iran $US 5 billion 3.8%GDP
Australia $US 10 billion 1.9%GDP
New Zealand $US 0.8 billion 1.1%GDP

Source: Stockholm International Peace Research Institute Database(SIPRI)

Some comparisons:
%GDP Spent on Military Education Health

Australia 1.9 4.6 6.2
France 2.6 5.6 7.3
USA 3.1 5.6 6.2
UK 2.8 4.4 6.2
Sweden 1.8 7.7 7.4
Canada 1.2 5.2 6.7
Japan 1.0 3.6 6.2
Israel 9.1 (8.4)* 7.3 6.0

*8.4 stated but 9.1 in above table

As you can see Australia should not be spending anywhere near our current expenditure on Military muscle, given our world location, peaceful neighbors and the lack of a threat. I can only assume that we are a militaristic aggressive country, eager to rush into any available war. This would be confirmed by examining our involvement from the Boer War, first and second world wars, Korean and Vietnam Wars. Plus numerous other skirmishes like Malaysia etc and our ongoing role of sending troops to serve with other nations.
A dismal aspect of our national character.
Even John Howard would say aggression is un-Australian, the Government advertises against domestic violence but practices international violence and advocates preemptive strikes as a solution (?) to world problems.
Australia the national and international bully?