Australian Prime Minister Tony Abbott is considering cuts on foreign aid to fund the strengthening of Australia's national security and military operations in Iraq. In a report by The Australian, a two-year pause in future international aid may be expected as it appears to be the most viable option to cover the cost of fighting terrorism.

The Australian government is reportedly considering the option as it denies claims of additional budget cuts to generate savings from the age pension, medical fees, university reforms and increases in fuel tax. Mr Abbott said the government does not "walk away from anything." He stressed that Australia is paying $1 billion every month to cover the interest on Labour's debt.

The reports of foreign aid cuts followed remarks of Treasurer Joe Hockey who told ABC that the government is looking for ways to pay for the country's counter-terrorism policies and the possible military involvement in Iraq to fight ISIS. Hockey had declined to comment on where funds will be taken from. He only said that the government will need to identify areas where it can save to help support the new initiatives taken by Australia. The changes will be revealed in the budget's mid-year update in December, Hockey said.

In the same report by SBS, Foreign Minister Julie Bishop said no discussion has been brought to the attention of the cabinet regarding the freezing of foreign aid. However, Mr Abbott has not particularly dismissed the idea of further budget cuts. He said Australia has slowed down the growth of foreign aid but it was previously expected to grow under the former Labour government. The prime minister revealed the government has since restrained that growth. He believes it was a "reasonable change" but Australia will still continue to have a strong foreign aid policy in the years to come.

Meanwhile, the Labour party said additional budget cuts to foreign aid might not be wise, given the current conditions. Tanya Plibersek, Labour foreign affairs spokesperson, said foreign aid can be an "extraordinarily powerful weapon" against terrorism. She said it doesn't make sense if Australia is willing to protect people from the extremist group Islamic State of Iraq and Syria while refusing to help people who are in need of food, water, shelter and education.