Government Allocates $12 Billion for New AUKUS Initiative

Prime Minister Anthony Albanese will today announce a new $12 billion investment on a defence hub near Perth to build submarines under the AUKUS agreement.

The funding for the Henderson Defence Precinct, south of the WA capital, is about half the of what the facility will eventually need over the next decade to host and maintain nuclear-powered submarines.

Today’s announcement comes ahead of Albanese’s trip to the UN General Assembly in New York, and an anticipated potential meeting with US President Donald Trump.

The prime minister is expected use that trip to secure Trump’s personal backing of the AUKUS pact, which is being reviewed by the Pentagon.

The defence agreement signed by Australia, the US and Britain was announced in 2021 to contend with growing Chinese military might in the Asia-Pacific region.

It would deliver Australia at least eight submarines, including three to five second-hand US Virginia-class submarines. Britain and Australia would cooperate to build their own SSN-AUKUS submarines.

But in June, US Defence Secretary Pete Hegseth announced the Trump administration was launching a review into the AUKUS agreement.

There are concerns that the US won’t provide Australia with its first Virginia-class submarine by the early 2030s as planned because American submarine building is behind schedule.

The federal government also hopes today’s announcement will ease US concerns Australia is not spending enough on defence.

US officials have been pushing Australia and other Western allies to lift their defence spending to take the load off the American military.

Australia currently spends about 2 per cent of GDP on its armed forces, but the US has urged a rise to 3.5 per cent. 

The Australian government confirmed in late July it had paid the Trump administration a second $800 million instalment on the AUKUS deal.

The first $800 million was paid in February.

The submarines are expected cost Australia up to $380 billion.