In 1985, the nature of the ANZUS alliance changed after the Government of New Zealand refused access to its ports by nuclear-weapons-capable and nuclear-powered ships of the U.S. Navy. The United States suspended defense obligations to New Zealand, and annual bilateral meetings between the U.S. Secretary of State and the Australian Foreign Minister replaced annual meetings of the ANZUS Council of Foreign Ministers. The first bilateral meeting was held in Canberra in 1985. At the second, in San Francisco in 1986, the United States and Australia announced that the United States was suspending its treaty security obligations to New Zealand pending the restoration of port access. Subsequent bilateral Australia-U.S. Ministerial (AUSMIN) meetings have alternated between Australia and the United States. The 16th AUSMIN meeting took place in Washington on July 7, 2004.

The U.S.-Australia alliance under the ANZUS Treaty remains in full force. Defense ministers of one or both nations have joined the annual ministerial meetings, which are supplemented by consultations between the U.S. Combatant Commander, Pacific and the Australian Chief of Defense Force. There also are regular civilian and military consultations between the two governments at lower levels.

ANZUS has no integrated defense structure or dedicated forces. However, in fulfillment of ANZUS obligations, Australia and the United States conduct a variety of joint activities. These include military exercises ranging from naval and landing exercises at the task-group level to battalion-level special forces training, assigning officers to each other's armed services, and standardizing, where possible, equipment and operational doctrine. The two countries also operate joint defense facilities in Australia.

Following the terrorist attacks on the United States on September 11, 2001, Australian Prime Minister Howard invoked the ANZUS Treaty for the first time on September 14, 2001. Australia was one of the earliest participants in Operation Enduring Freedom. Australian Defense Forces participated in coalition military action against Iraq in Operation Iraqi Freedom. Australian military and civilian specialists are participating in the training of Iraqi security forces and the reconstruction of Iraq. Australian Special Forces are redeploying to Afghanistan to help provide security in time for the countryís September 18, 2005 elections.

After a review in 2000 of Australia's future defense needs, the government made a commitment to increase defense spending by an average of 3% a year for the next 10 years. The Australian Defense Force numbers about 52,000 active duty personnel. The Royal Australian Navy's front-line fleet currently includes 12 frigates, including 4 of the Adelaide class and 7 Australian-built ANZAC class, with 1 more to be delivered by 2006. The last of six submarines of the new, indigenous Collins class was commissioned in March 2003. An upgraded version of the US Navy's Arleigh Burke-class destroyer will be the Australian Navy's air warfare destroyer after the August 2005 selection of American firm Gibbs and Cox as the preferred designer for the $4.6 billion project. In August 2004, Australia selected the Aegis Combat Control System for its three air warfare destroyers, which will start coming into service in 2013. The F/A-18 fighter, built in Australia under license from the U.S. manufacturer, is the principal combat aircraft of the Royal Australian Air Force, backed by the U.S.-built F-111 strike aircraft. In October 2002, Australia became a Level III partner in the U.S.-led Joint Strike Fighter (JSF) program. Both of their current fighters are scheduled to exit service by 2012 when they will be replaced by up to 100 JSF aircraft. Boeing will provide the Commonwealth of Australia's Royal Australian Air Force (RAAF) with an Airborne Early Warning and Control (AEW&C) system based on the Next-Generation 737-700 aircraft as the airborne platform. The first two aircraft are planned to be in service by late 2006, with four more due for delivery by 2008. Recent U.S. sales to the Royal Australian Army include the M1A1 AIM tank, as well as Hellfire and JAVELIN munitions.