Australia will invest an additional Aus$4.6 billion (about US$3.2 billion) into its AUKUS nuclear-powered submarine program, the government announced, directing the funds to work at the Osborne shipyard in South Australia.
The top-up is intended to accelerate domestic shipbuilding capacity and help Australia prepare to operate and sustain a future fleet of nuclear-powered submarines under the 2021 AUKUS security partnership with the United States and the United Kingdom.
Under AUKUS, Australia is set to receive three nuclear-powered submarines from the United States, and Canberra and London plan to jointly develop a new class of submarine in the 2040s. Defence Minister Richard Marles said the fresh investment shows the program is on track and that Australia is building the sovereign capability needed to build, operate, maintain and sustain its future submarines.
The pact has drawn scrutiny over production timelines, with critics warning that slower-than-expected submarine builds in the United States and Britain could leave Australia short of the vessels it needs. Canberra says the arrangement announced in May, under which all three initial submarines will come from in-service US Navy stocks rather than two used and one new boat, is more cost-effective and helps meet capability gaps.
AUKUS is a long-term commitment: Australian officials have estimated the program could cost up to US$250 billion across the next 30 years when procurement, infrastructure and sustainment are all taken into account.
The additional Aus$4.6 billion is aimed at shoring up local industrial capacity and signalling continued momentum for AUKUS as Australia prepares for a major expansion of its naval capabilities over coming decades.
Reported by AFP on July 24, 2026.