CANBERRA, Australia — Australia will spend A$12 billion (US$8 billion) to build a naval defense hub in Western Australia. Prime Minister Anthony Albanese said the project will strengthen Australia’s role in the AUKUS security pact with the United States and the United Kingdom.
Largest peacetime defense investment
The project will expand the Henderson defense precinct south of Perth. It will include facilities for shipbuilding, surface vessels, and nuclear submarine maintenance. Deputy Prime Minister Richard Marles said the long-term cost could reach A$25 billion. He called it the largest peacetime increase in defense spending in Australia’s history.
“When you include what we are spending here, it is the better part of an additional A$70 billion over the decade,” Marles said. “This represents the biggest peacetime increase in our defense spending ever.”
AUKUS commitments move forward
Under the AUKUS pact, Australia will acquire up to five Virginia-class nuclear-powered submarines from the United States by the early 2030s. Later, Australia and the UK will design and build a next-generation submarine together.
Despite a Pentagon review earlier this year, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth assured Australian officials that the pact remains secure under the Trump administration.
Jobs and regional strategy
The Henderson project will create up to 10,000 jobs. It will serve as a long-term hub for naval shipbuilding and submarine operations. The government said the project is part of a broader effort to counter China’s growing military presence in the Indo-Pacific.
“Our alliance with the United States is strong,” Marles said. “We are moving forward at pace with AUKUS to ensure Australia is prepared for the future.”
