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Australia will spend more than a billion dollars in increased aid funding for its neighbours in the Pacific and south-east Asia, in a bid to strengthen regional security and the nation's influence.
The budget sets aside $4.65 billion for aid, with more than $147 million over four years to fund key Pacific priorities, including the Australian Pacific Defence Force School and the deployment of AFP officers to the Solomon Islands.
Australia's official development assistance will be bolstered by $1.4 billion, with $900 million set aside for the Pacific and $470 million for south-east Asia.
Australian Council For International Development chief executive Marc Purcell said the spending went above what Labor promised at the election.
"It is significant that they've gone above and beyond," he said.
"This combination of diplomacy, defence and development is going to be critical to Australian navigating what is the most uncertain geostrategic environment since the end of the Second World War."
Foreign Minister Penny Wong said the budget was a step towards making Australia more influential.
"Our assistance will help our regional partners become more economically resilient, develop critical infrastructure and provide their own security so there is less need to call on others," Senator Wong said.
Global anti-poverty advocate Tim Costello said the budget changed the conversation about the best time to boost foreign aid.
He said Australia should also send relief to help 300,000 Somalians at risk of starvation, with the Ukraine war preventing the export of wheat from the country.
"We believe our fair share is $150 million and we encourage the government to find that money," Reverend Costello told AAP.
"The crises are not of our making, such as the war in Ukraine, but the response to those crises is of our making."