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AAP
AAP
Tess Ikonomou

No contingency plan needed for AUKUS: Albanese

The AUKUS agreement was in the interests of Australia, the US and the UK, Anthony Albanese said. (Abc Pool/AAP PHOTOS)

Australia does not need a contingency plan for its nuclear-powered submarine deal in case the US decides to pull out, the prime minister says.

Under the AUKUS partnership, Australia is set to acquire three Virginia-class submarines from the US in the early 2030s before a new fleet of boats is built for delivery from the 2040s.

But the US is behind in its production of the boats needed, and under the agreement, the American president can sink the deal if his navy's capabilities are at risk.

Asked if the nation needed a plan B during the second leaders' debate on ABC TV, Prime Minister Anthony Albanese replied: "No, because this is in the interests of both Australia and the United States and the United Kingdom as well."

Opposition Leader Peter Dutton repeated an accusation that Labor had "cannibalised" the defence budget. 

Mr Albanese rejected the claim and pointed to the extra $57 billion in military spending his government had previously committed.

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