Tens of Billions to Be Spent on AUKUS Submarine-Building Precinct

The total price tag is still unknown but the government says the Western Australian facility will create 10,000 jobs.

A frame captured from an Australian Defence Force video of the Henderson shipyard in Western Australia. Australian Defence Force

The federal government intends to build a consolidated defence precinct at Henderson, south of Perth in Western Australia, as part of Australia’s plans to buy and operate nuclear-powered submarines under the AUKUS pact.

UK and U.S. nuclear-powered submarines will begin a rotation in WA from 2027.

The project, which could cost tens of billions of dollars over the next 20 years, will support not only the submarine program but also the construction of new landing craft for the Australian Army and 11 new general-purpose frigates for the Navy.

While the first few ships would be bought overseas, the rest would be built at Henderson.

The precinct will feature at least one dry dock for deep maintenance of submarines, as well as a floating dock for in-water maintenance and contingency repairs, particularly for nuclear-powered submarines. This development aligns with the Western Australian government’s eight-year push to have AUKUS submarine maintenance centred in the state.

A total of $127 million (US$85 million) will be spent over the next three years on a feasibility study for the planning and design of the facility.

The proposed Henderson Defence Precinct. Australian Defence Force.

The precinct is expected to create 10,000 new jobs, and a cooperation agreement between the Federal and WA governments will govern its development.

HMAS Stirling will be expanded to house the Submarine Rotational Force-West, with a previous $8 billion investment already committed to this facility.

Defence Minister Richard Marles hailed the plan as “the most significant defence offering to WA since Federation,” while WA Premier Roger Cook said it was “a momentous announcement for Western Australia—one that will [put] us at the centre of the nation’s defence capability.”

“This particular industry will rival the resources industry as one of our main areas for economic growth, for economic activity and employment,” he said.

Commitment ‘Measly’: Opposition

While the Federal Opposition welcomed the decision to build the defence precinct, it said the level of funds for the feasibility study showed a lack of any real commitment.

“The Albanese government is already kicking these important works into the long grass, with ‘delivery of initiatives’ not set to commence for another nine months,” Defence spokesperson Andrew Hastie said.

“Labor’s measly $127 million commitment to transforming Henderson is reflective of their lack of investment in the defence budget, which is barely keeping up with inflation under this government.”

The Defence Strategic Review, released last year, also raised concerns about the ongoing viability of the shipyard and the jobs it supports unless its operations were consolidated by the government.

A report commissioned by the government from U.S. project management firm Bechtel estimates the final precinct cost could range from $12 billion and $20 billion. Australia’s future nuclear submarines will be built in South Australia at the Osborne shipyard.