$12bn for Henderson submarine upgrade

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The Albanese government will pour $12 billion into a submarine and naval shipbuilding facility in Western Australia, which it expects will be used to maintain American submarines in a bid to speed up the delivery of AUKUS, the ABC reports.

For months, the Trump administration has been pressuring Australia to lift defence spending, while the Pentagon reviews the AUKUS deal against Donald Trump’s “America First” agenda. 

The government’s new multi-billion-dollar funding commitment, unveiled a week before Prime Minister Anthony Albanese is scheduled to travel to the United States, will support the development of a major defence precinct in Henderson, south of Perth.

The funding will go towards construction of surface vessels for the Australian Defence Force, starting with the army’s new landing craft.

It 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.

Mr 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.”

The money will also be spent on building maintenance facilities for surface combatant vessels and could help build Australia’s future general-purpose frigates.

Mr Albanese announced the funding in Perth last Sunday (14 September), alongside his deputy Mr Marles, Defence Personnel Minister Matt Keogh and Western Australia’s Premier Roger Cook.

“This world-class precinct will create more than 10,000 local jobs and strong opportunities for local industry,” he said.

“There’s no greater honour than serving our country in our nation’s uniform and my government is dedicated to investing in the defence capabilities that our nation requires to keep Australians safe.”

An $8 billion operation is already underway south of Perth, where five nuclear-powered submarines and more than 1,000 American personnel will soon be based as part of Submarine Rotational Force-West.

The operation is the first sign of the AUKUS agreement in action, with up to four US Virginia-class submarines and one UK Astute-class submarine rotating through HMAS Stirling for maintenance and repairs from 2027.

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