South Australia to Deliver Nuclear-Powered Submarine Build

Today’s significant AUKUS announcement about Australia’s acquisition of nuclear-powered submarines is the single biggest investment in our defence capability in our history and represents a transformational moment for our nation, our Defence Force and our economy.

The agreement will:

-- Strengthen Australia’s national security and contribute to regional stability in response to unprecedented strategic challenges.

-- Build a future made in Australia, by Australians, with record investments in defence, skills, jobs and infrastructure.

-- Deliver a superior capability after a decade of inaction and mismanagement.

Australia, the United Kingdom and the United States have agreed to a phased approach that delivers on the commitments of the Albanese Government and provides significant, long-term strategic benefits for all three countries.

For Australia, the three key elements are:

-- Increased visits of US submarines commencing in 2023 and UK submarines from 2026, and, beginning in 2027, rotations of UK and US submarines to Australia – this will be key to Australian jobs, infrastructure, technology and our ability to be sovereign ready.

-- From as early as the 2030s, delivery of three US Virginia class nuclear-powered submarines to Australia – ensuring there is no capability gap.

-- Australia and the UK will deliver SSN-AUKUS, a new conventionally-armed nuclear-powered submarine, based on a UK design, incorporating cutting edge Australian, UK and US technologies. The UK will deliver its own first SSN-AUKUS in the late 2030s, with the first SSN-AUKUS built in Australia delivered in the early 2040s.

We expect the phased approach will result in $6 billion invested in Australia’s industrial capability and workforce over the next four years, creating around 20,000 direct jobs over the next 30 years.

This whole of nation effort also presents a whole of nation opportunity; for new jobs, new industries, and new expertise in science, technology, and cyber.

Businesses right across the country in every state and territory will have the opportunity to contribute to and benefit from these opportunities over decades.

Over the next four years, this will see $2 billion in expected investment into South Australia, and a further $1 billion in Western Australia.

This commitment from the Australian Government will require funding for the phased approach to amount to around 0.15 per cent of GDP per year, averaged over the life of the program.

Our plan elevates Australia’s industrial capacity to produce and sustain advanced SSNs, alongside our AUKUS partners.

Importantly, the SSNs will be an Australian sovereign capability, commanded by the Royal Australian Navy and sustained by Australians in Australian shipyards.

Australia has a proud record of leadership in the international nuclear non-proliferation regime.

Australia and our AUKUS partners are committed to setting the highest nuclear non-proliferation standard for Australia’s acquisition of SSNs, in continued close cooperation with the International Atomic Energy Agency (IAEA).

These enhanced defence capabilities will make Australia and our partners better able to deter conflict, and help ensure stability and strategic balance are maintained in the Indo-Pacific.

Together with our AUKUS partners, the Albanese Government will deliver the Optimal Pathway, providing a superior and sovereign capability, generations of jobs and a record level of investment which will keep Australians safe.

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The Albanese Government is developing a comprehensive AUKUS Submarine Workforce and Industry Strategy to support delivery of advanced conventionally-armed nuclear-powered submarines to the Australian Defence Force.

The AUKUS submarine program will be the most transformative industrial endeavour in Australian history – exceeding in scale, complexity and economic significance the creation of an Australian automotive manufacturing sector and the construction of the Snowy Scheme in the post-war decades.

Australia’s industrial base will be just the second in history to be granted access to highly sensitive US nuclear propulsion capability and afforded the ability to access, handle, build and sustain this sensitive technology.

The program will create around 20,000 direct jobs over the next 30 years across industry, the Australian Defence Force and the Australian Public Service including trades workers, operators, technicians, engineers, scientists, submariners and project managers.

At its peak, building and sustaining nuclear-powered submarines in Australia will create up to 8,500 direct jobs in the industrial workforce.

With hundreds of thousands of components, nuclear-powered submarines will present a unique opportunity for Australian companies to contribute not only to the construction and sustainment of Australia’s new fleet but to the supply chains of partner nations.

Australia’s scientific, education and training institutions will also play a central role.

Australians have already commenced training and working on UK and US nuclear-powered submarines and in UK and US facilities.

Between 2027 to 2032, an additional 500 direct jobs are expected to be created to sustain the Submarine Rotational Force-West US and UK presence in Western Australia.

This will mean Australia has a trained and experienced sovereign workforce for the arrival of Australia’s Virginia class submarines from as soon as the early 2030s.

At its peak, up to an estimated 4,000 Australian workers will be employed to design and build the infrastructure for the new submarine construction yard in South Australia.

A further 4,000 to 5,500 direct jobs will be created to build the nuclear-powered submarines in South Australia when the program reaches its peak in 20 to 30 years, almost double the workforce the former Government forecast for the Attack class program.

To support delivery of the submarine program, the Government has commenced developing the AUKUS Submarine Workforce and Industry Strategy to:

-- Attract, recruit, develop, qualify and retain a highly-skilled trades, technical, scientific and engineering workforce.
-- Invest in new infrastructure for sustaining and building nuclear-powered submarines in Australia.
-- Support and build the capabilities of Australia’s world-leading defence industry.
This will involve working closely with state and territory governments, industry, unions, education and training institutions and the scientific and technical sectors.

We understand this is a whole of nation effort – as such, the Prime Minister will be putting this on the agenda for the next National Cabinet to ensure all jurisdictions can access the workforce and industry opportunities.

Key elements of the Strategy the Government is planning include:

INFRASTRUCTURE
-- New sustainment infrastructure in Western Australia at HMAS Stirling including wharf upgrades, warehousing and sustainment facilities.
-- New submarine construction infrastructure in South Australia at the Osborne shipbuilding precinct, including site identification and design, land transfer discussions, civil works and prototype facilities.
-- National engineering and technology facilities.

WORKFORCE
-- Australian submarine industrial workforce planning including forecasting workforce demand and supply, identifying priority skills areas, identifying education and training requirements and finalising a workforce strategy.

-- Working with the South Australian Government on a dedicated Skills and Training Academy to deliver tailored education, training and skilling for Australia’s submarine and naval shipbuilding workforce including:
* Career training programs to bring new people into the workforce, such as apprentices, undergraduates and graduate apprentices.
* Lifting the skills of the existing naval shipbuilding workforce.
* Transition programs to bring in people from adjacent industries in the defence, manufacturing and technology sectors.
* Working with the Western Australian Government to develop a skills and training program, leveraging existing relationships with WA vocational and tertiary institutions.
* Early opportunities to embed industrial, Australian Defence Force and Australian Public Service personnel in UK and US facilities and shipyards.

--New education and training courses including:
* Expanding the Sovereign Shipbuilding Talent Pool (SSTP), commencing with an initial cohort of 74 apprentices, undergraduates and graduates in coming months.
* Developing nation-wide education and skilling plans with the university and vocational education sectors.
* Supporting an existing cohort of over 50 Australians to commence new specialised courses in the UK and US and new tertiary courses for nuclear engineering at the University of New South Wales and nuclear science at the Australian National University.

INDUSTRY
-- Developing opportunities for Australian industry to carry out maintenance for US Virginia class and UK Astute class submarines during their rotational presence in Western Australia.
-- Opportunities to embed Australian industry in the UK and US nuclear-powered submarine construction and sustainment programs and supply chains with our partners, including Australian industry supplying Australian-manufactured materials and components to the UK and US submarine programs.
-- Establishing mechanisms for Australian industry to register interest in participating in the Australian, UK and US nuclear-powered submarine programs.
The AUKUS Submarine Workforce and Industry Strategy will be finalised and implemented in consultation with our trilateral partners and state and territory governments, industry and unions.

It will complement the Albanese Government’s wider agenda to revitalise Australian manufacturing, ensuring we are a country that makes things – including identifying defence capability as a priority funding area for the $15 billion National Reconstruction Fund.

Australia’s defence industry and workforce will be vital partners in the AUKUS submarine program over the next four decades and beyond – delivering a critical defence capability and supporting an industrial and skills expansion of national economic significance.

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Western Australia will be at the forefront of Australia’s AUKUS Pathway, continuing its proud tradition as the home of Australian submarines.

This multi-generational undertaking to acquire and operate conventionally-armed, nuclear-powered sovereign submarines will see significant benefits for jobs and the economy in the West.

Over the next decade, the Australian Government will invest up to $8 billion to expand HMAS Stirling, creating around 3,000 direct jobs.

Importantly, this work begins right away, with the benefits to flow-on for decades to come.

Beginning this year, Western Australia will receive more frequent port visits by United States nuclear-powered submarines, with the United Kingdom to follow from 2026. This will further strengthen Australia’s experience with SSNs in Western Australia.

As early as 2027, HMAS Stirling will host the rotational presence of UK and US nuclear-powered submarines. This initiative, known as ‘Submarine Rotational Force-West’ (SRF-West), will develop Australia’s ability to operate, maintain and safely steward our future SSNs by deploying our Navy personnel on visiting UK and US boats where they will gain at-sea experience with naval nuclear propulsion.

From the early 2030s HMAS Stirling will house Australia’s first sovereign SSN capability – the US Virginia class submarines.

Supporting what will be the biggest capability acquisition in our history, will require record investment:

-- Upgrades to HMAS Stirling over the next 10 years will include wharf upgrades, operational maintenance, logistics and training facilities, as well as opportunities for supporting infrastructure outside HMAS Stirling.

-- Additionally, 500 direct jobs will be created to sustain the SRF-West initiative over the period 2027-2032.

We recognise the need to attract, develop and retain a highly-skilled workforce in Western Australia to underpin this project.

The Albanese Labor Government will work with the Western Australian Government to develop a skills and training program, leveraging existing relationships with WA vocational and tertiary institutions.

Quotes attributable to Deputy Prime Minister, the Hon. Richard Marles MP: “Western Australia plays a critical role in the defence of our nation. I am proud to see this continue as we acquire our first Australian nuclear-powered submarines.”

“As our Navy personnel gain experience on visiting nuclear-powered submarines, we are ensuring our defence capability is in the most knowledgeable and trusted hands.”

“Through Submarine Rotational Force – West, we are building the next-generation workforce that will not only operate our future submarines but steward them safely through their operational life.”

Quotes attributable to the Minister for Defence Industry, the Hon. Pat Conroy MP: “Western Australia will play a critical role in delivering conventionally-armed, nuclear-powered submarines to Australia.”

“The investment in the state to support this historic program will benefit local industry and create thousands of jobs, with flow-on effects for the wider WA economy.”

Quotes attributable to WA Premier Mark McGowan: “Growing Western Australia’s defence industry represents an enormous opportunity to diversify our economy and build the workforce of the future.

“This investment to support Australia’s defence capabilities will create thousands of local jobs for Western Australians – and we’ll work with the Federal Government to deliver the training and development to put local workers in the box seat for these jobs.

“HMAS Stirling is inextricably linked to my local community in Rockingham, and this investment will ensure Stirling continues to deliver tangible benefits to our State.”

Quotes attributable to WA Minister for Defence Industry Paul Papalia: “The WA Government has long been a proponent of more defence industry investment in our state and we are encouraged by what this announcement means for Western Australia.

“Maintenance work on visiting UK and U.S. submarines will see hundreds of Australians employed to provide support and the sheer scale of infrastructure we will need to home port our future submarines, not to mention to host submarines that are visiting or on rotation, will be a boost for our local industry.

“Typically, about 70 percent of these Defence programs are spent on sustainment. That’s potentially tens of billions of dollars which will go into the economy and WA will get its fair share. We don’t even know exactly how many jobs this will eventually create. But it’s safe to say it will be in the thousands.”

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