Australia will invest 12 billion AUD ($7.9 billion USD) in a new defense precinct that will include naval shipyards and AUKUS-related programs in the western part of the country. This significant investment underscores Australia’s commitment to bolstering its naval capabilities and fulfilling its obligations under the AUKUS security pact.
Henderson Defence Precinct: A Hub for Naval Power
The Australian Department of Defence announced that the investment in the Henderson Defence Precinct is a down payment for the project, with total investment expected to reach 25 billion AUD over the next decade. The funding will support the construction of shipyards for Australian military vessels, starting with landing craft for the Australian Army and eventually the planned construction of eight general-purpose frigates for the Royal Australian Navy (RAN).
Supporting Australia’s Future Submarine Fleet
The Henderson Defence Precinct will also provide contingency docking capabilities for Australia’s future nuclear-powered submarine fleet, expected to arrive in the early 2030s. Additionally, the precinct will include facilities for the sustainment of Royal Australian Navy ships, as well as graving docks and other infrastructure for depot-level maintenance of naval vessels.
AUKUS Pathway: A Critical Component
„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 statement said.
Record Levels of Defence Spending
Australian Deputy Prime Minister and Defence Minister Richard Marles pledged to continue increasing defense spending to record levels to deliver the capabilities Australia needs. He noted that Australia plans to spend an additional 70 billion AUD on defense over the next decade under the current government compared to projections made under the previous government, marking the biggest peacetime increase in defense spending in Australian history.
Boosting Allied Submarine Operations
Marles emphasized that the Henderson Defence Precinct will be critical to Australia’s shipbuilding and sustainment industry, as well as the sustainment and maintenance of Australian and allied submarines. „That’s really important in terms of getting more of our allied submarines into the water, more sea days,” he said. „And this is exactly what America wants.”
Submarine Rotational Force (West)
Marles was referring to plans for US Navy and British submarines to operate rotationally from 2027 out of the RAN’s Fleet Base West in Australia under Submarine Rotational Force (West). Fleet Base West, where Australia’s submarines are homeported, is located a short distance from the Henderson Defence Precinct.
AUKUS Review Underway
Australia is scheduled to receive three Virginia-class submarines from the United States under AUKUS Pillar 1, before transitioning to five SSN-AUKUS submarines from the early 2040s. The AUKUS pact is currently being reviewed by the Trump administration, led by Under Secretary of Defense for Policy Elbridge Colby, although Marles has expressed confidence that AUKUS will proceed.
