Under the cover of darkness, US, French and German paratroopers dropped from an Australian C-17 transport plane and landed in Central Queensland.

It was the dramatic start to Exercise Talisman Sabre - a massive military exercise involving 40,000 troops from 19 countries across land, sea and air.

WATCH THE VIDEO ABOVE: Australia’s military not ready for China threat

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But behind the spectacle lies a more serious warning: Australia may not be ready if conflict erupts in our region.

Mike Pezzullo, former Deputy Secretary of Defence and one of the country’s top strategic planners, says the risk of war between China and Taiwan is growing fast - and if it happens, Australia would almost certainly be pulled in.

“It might start there,” he says. “But I can assure you, it won’t end there.”

Pezzullo believes there’s at least an 80 per cent chance Australia would be involved if the US joins a Taiwan conflict.

“We don’t really have a choice,” he says. “Our military, ports, bases, intelligence systems - they’re all deeply tied to America’s.”

And he’s blunt about Australia’s current preparedness: “We are nowhere near ready.”

If war broke out, he says, it wouldn’t begin with missiles but with cyberattacks.

“It would be in cyber. You’d start to see a degradation of the internet.” Australia’s vulnerability is stark: 99 per cent of our internet traffic travels through just 15 undersea cables.

If those are cut by submarines or unmanned vessels the country would be digitally isolated.

That would likely be followed by targeted missile strikes on key infrastructure like air bases, radar facilities, and defence logistics.

“You’d want to ensure those are protected,” Pezzullo says. “But we have no missile defence systems. We’re completely bereft in that area.”

Fuel supplies are another weakness. “Ninety per cent of our oil and petrol comes through the South China Sea,” he warns. “We only store enough for 60 days.”

While Australia has major defence projects underway including AUKUS nuclear submarines, new frigates, cruise missiles and underwater drones Pezzullo says those efforts are still years from completion.

“That technology is improving almost monthly, but we’re playing catch-up.”

Some argue Australia shouldn’t risk its economy by confronting China, our largest trading partner. Pezzullo says that argument is irrelevant in the context of a global conflict. “We’d all suffer through the tanking of the global economy.”

He also criticises Taiwan’s own defence posture. “I’m amazed they’re spending only a little more than two per cent of GDP,” he says. “It’s nowhere near enough.”

As for Australia, he believes our defence budget will need to rise too, to three or even three-and-a-half per cent of GDP, if we want to deter adversaries and defend ourselves.

Still, Pezzullo is clear: “Plan A is always peace through diplomacy. But if you want peace, prepare for war.”

Exercise Talisman Sabre may look like a training drill. But for Australia’s defence community, it’s a wake-up call.