Western Australia will be home to Australia's nuclear-powered submarines from the early 2030s, as part of an $8 billion expansion of Perth's naval base.
Federal Treasurer Jim Chalmers made the announcement this morning, saying WA was set to play a key role in the AUKUS defence and security partnership with the United States and the United Kingdom on nuclear-powered submarines.
Speaking in Rockingham, near the HMAS Stirling naval base, he described it as the "biggest industrial undertaking in Australia's history".
There will be four main elements for WA:
- Wharf upgrades and expansion of maintenance training, and expanded logistical capacity at HMAS Stirling;
- More frequent and longer visits of American submarines from this year, and UK subs from 2026;
- HMAS Stirling will host rotations of US and UK submarines from 2027 as part of Submarine Rotational Force West, known as SRF-West;
- WA will be home to Australian nuclear-propelled submarines from the early 2030s, the US Virginia class.
Mr Chalmers said there would be 500 direct jobs to sustain the initiative from 2027 to 2032.
Australia's nuclear submarine program will cost up to $368 billion over the next three decades, with confirmation that the federal government will buy at least three American-manufactured nuclear submarines and contribute "significant additional resources" to US shipyards.
Prime Minister Anthony Albanese was in the US to help announce the landmark AUKUS pact in San Diego this morning.
Investment to span a decade
Mr Chalmers said the $8 billion upgrade of HMAS Stirling amounted to an investment in the "future of Western Australia".
"[In] its workers, its industries and its economy, which will create around 3,000 jobs, plus another 500 or so when it comes to SRF-West," he said.
The deal is expected to see $1 billion invested over the next four years, with the overall amount committed over 10 years.
"It will be all about making sure the infrastructure at HMAS Stirling can accommodate the increasing visits and the rotational forces, and when they arrive in the early 2030s, our own nuclear-propelled subs," Mr Chalmers said.
He said the federal government would continue to work with Australian Naval Infrastructure and the WA government to develop options for large vessel infrastructure.
"The dry dock is part of the considerations of the Defence Strategic Review that the deputy prime minister will release between now and the budget," the treasurer said.
"We continue to work with everyone involved in Henderson and the dry dock to make sure that we get the right outcome."
'Opportunity for young Western Australians'
WA Defence Industry Minister Paul Papalia said the announcement confirmed the sector's position in the diversification of the state's economy.
"Western Australia will build on its already substantial capability to sustain conventional submarines. We will build an entire new capability to sustain nuclear submarines," he said.
"It means an opportunity for young Western Australians to enter an entirely new career path and know that there is an opportunity there for their entire lives."
Mr Papalia said it was no mistake the announcement was being made at South Metro TAFE, which he said was the leading tertiary institution in the nation for the defence industry.
Mr Chalmers sought to pay tribute to WA Premier Mark McGowan, who could not attend the announcement due to illness.
"For his tireless, persistent, dedicated advocacy on behalf of the people of WA," he said.
"We were hoping that he would be able to join us, but in his absence can I say how much I appreciate personally, and how much the Albanese government appreciates our ability to work really, really closely with Mark as premier and as treasurer."
Subs will provide better protection for WA, says expert
The chair of the Australian Industry and Defence Network of WA, Kristian Constantinides, said the federal government's announcements for WA were welcome, as they would enable long-term planning.
"It's been about having the capability we have here recognised, the vulnerability that we have in our north west recognised, and acknowledging that WA has something to offer in that national endeavour," he said.
"It's my personal opinion we have a vulnerable north west.
"It's likely to come out in the Defence Strategic Review that WA's north west requires a better force protection from those locations.
"Having a rotation of nuclear powered submarines coming through Western Australia certainly won't harm those intentions."
Mr Constantinides said the skills gap was a national challenge, and he shared the view of Mr Papalia that WA would be able to 'step up'.
He also said WA should be able to provide technological support under the 'trilateral' concept.
"There are pathways in Western Australia for companies to allow their innovations to be seen, to engage funding and to be supported.
"When you combine that with industry associations like AIDN and Henderson Alliance, there's plenty of avenues through which industry participants can ensure their technology is seen and heard and potentially included in international supply chains."
Sisters keen on submarine work
Students at South Metro TAFE's Rockingham campus have welcomed the federal government's commitment.
Brittany Wragg, who is studying to be a mechanical fitter at TAFE, has already done some work in the defence sector.
She said she would be keen to work on submarines.
"Definitely, especially after spending the year doing the traineeship, the things that I've seen, it's definitely something I'd want to pursue as a lifelong career," she said.
"There's so much opportunity, especially now in WA as well, winning all the contracts that we're getting and having that work in South Australia, being able to go between the two, I think's really cool, yeah."
Her sister Courtney Wragg, who is also a mechanical fitter machinist, said she would like to learn more.
"Follow the process and just see where it goes, but it's nice being able to be a part of it, it's right down the road from where we live," she said.
"It's given more opportunity to us, new ventures."
South Metropolitan TAFE won the Academic Institution of the Year Award at the Defence Connect Australian Defence Industry Awards in September, 2022.
