The government of Australia will spend A$12 billion as part of its AUKUS plans and as the government hopes to keep US support for the submarine program. The funding is for additional development of the Henderson defence precinct in Western Australia, according to Australian Deputy Prime Minister Richard Marles, who told the ABC Insiders program on Sunday the funding will also be used to build surface vessels and maintenance facilities. The early cost estimate for the total project was A$25 billion, Marles said. Australia’s defence spending is currently 2.8% of gross domestic product.
“When you include what we are spending here, it is the better part — relative to what we inherited when we came to government back in 2022 — of an additional A$70 billion of defence spending over the decade,” Marles told ABC Insiders. “What that represents is the biggest peacetime increase in our defence spending in Australia’s history.”
The money will also be used to build docking stations for nuclear-powered submarines, with Australia expecting to receive its first Virginia-class submarine in the 2030s under the AUKUS agreement, according to media reports.
Marles said he expected the Henderson facility would be used by the United States military for submarine maintenance under AUKUS. “There is the opportunity here…of seeing much greater sea days for the American fleet occur by virtue of the use of Australia, by virtue of the cohort of people that we are building up right now to work on nuclear-powered submarines,” he told ABC’s Insiders. “That is of enormous advantage in terms of getting more US Virginia-class submarines out to sea for the US Navy. It is an important part of creating the space for the first of those Virginia-class submarines to be transferred to Australia in the early 2030s.”
In a statement released Sunday, the government said the initial investment will underpin the delivery of:
- The construction of surface vessels for the Australian Defence Force, starting with Army’s Landing Craft and, pending successful consolidation, the domestic build element of Australia’s future general purpose frigates;
- Facilities to support the sustainment of Australia’s surface combatant vessels;
- Contingency docking capabilities for Australia’s future conventionally-armed, nuclear powered submarine fleet from the early 2030s; and
- Depot-level maintenance, including graving docks.
Progressing these capabilities will be critical for Australia’s delivery of the AUKUS pathway and ensure Australia is ready to receive its first Virginia class submarine in the early 2030s, the government siad. This commitment builds on the government’s initial $127 million commitment to progress planning for the Defence Precinct. Additional funding requirements will be considered once detailed design works are finalised and as delivery models, including the opportunity for private financing models, are determined. In partnership with the Western Australian Government, and in line with the Commonwealth State Cooperation Agreement, we will continue to work together on transition arrangements and certainty for current and future users of Henderson.
Prime Minister Anthony Albanese said: “Today’s investment is another way we are delivering record defence funding to bolster Australia’s capabilities. This world class precinct will create more than 10,000 local jobs and strong opportunities for local industry. There is no greater honour than serving our country in our nation’s uniform and my Government is dedicated to investing in the defence capabilities our nation requires.”
Deputy Prime Minister Richard Marles said: “The Albanese Government continues to increase defence spending to record levels to deliver the capabilities Australia needs. Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway. In less than a year from our announcement to establish the Defence Precinct at Henderson, today we are announcing additional funding to start delivering on key programs for the Australian Defence Force.”
Minister for Defence Industry Pat Conroy said: “This investment is part of the Albanese Government’s commitment to building our sovereign defence industry and supporting a future made in Australia. Western Australia already plays an important role in the delivery of capabilities for the ADF, and the consolidation of the Henderson precinct will be a significant boost for defence industry in the West. It will support around 10,000 highly skilled, well paid jobs over the next two decades, helping people across Western Australia build great futures for themselves and their families.”
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Hope that money includes missile defense for the facility
No – it’s just infrastructure. More concrete and roads, though things such as dry docks are necessary.
is this different to the big investment they said they started a while ago in Henderson, then the news was it had quote “stalled” or are they just reannouncing more of the same, which it sounds a bit like it, talking about landing craft and the frigates again?
Hard to tell. Probably a mix – if Landing Craft Medium funding is part of this deal then that has been announced multiple times.
“and, pending successful consolidation, the domestic build element of Australia’s future general purpose frigates”
Good to see that options are being kept open.
Hopefully all 9 get built in Japan.
It’s hard to see how the government is serious about building the SEA 3000 frigates in Australia when all companies are bound up in NDAs that block them having discussions about the project other than in utmost secrecy. A measure to make sure that no progress is ever made.