Deputy Speaker,
The significant AUKUS announcement about Australia’s acquisition of nuclear-powered submarines is the single biggest investment in our defence capability in our history.
It 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.
It will build a future made in Australia, by Australians, with record investments in defence, skills, jobs and infrastructure.
And it will deliver a superior capability and ensure there is no capability gap after a decade of inaction and mismanagement.
The agreement is broken up into three stages.
Firstly, we will see 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.
Secondly, from as early as the 2030s, Australia will take the delivery of three US Virginia class nuclear-powered submarines to Australia–ensuring there is no capability gap.
Thirdly, Australia and the UK will deliver SSN-AUKUS, a new conventionally-armed, nuclear-powered submarine based on a UK design and 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.
This is the single biggest defence capability acquisition in our history.
Given the circumstances we face, we can’t afford not to do this.
Out to 2055, we currently estimate spending on this program to amount to around 0.15% of GDP per year, averaged out over the life of the program.
This will contribute to the Government’s commitment to lift Defence spending to over 2% of GDP per year.
What you will see in the May Budget is the initial estimate of $9 billion over the Forward Estimates to begin implementation of the Pathway.
Over the Forward Estimates, we estimate $6 billion will be invested in Australian industry and workforce.
We will invest at least $2 billion in South Australia infrastructure alone and at least $1 billion in infrastructure in Western Australia.
An estimated $30 billion will be invested in Australia's industrial base alone out to 2055.
Nuclear-powered submarines will be an Australian sovereign capability, commanded by the Royal Australian Navy and sustained by Australians in Australian shipyards.
AUKUS will create around 20,000 direct jobs over the next 30 years across industry, the Australian Defence Force, and the Australian Public Service.
And while many of those will be in South Australia and Western Australia for the construction of SSN-AUKUS, many other jobs will be created for Australians across a range of sectors of our economy and in advanced technologies.
It’s understandable that much of the media attention to date on AUKUS has focused on the nuclear submarine element.
But the technology and innovation dividend that will come from Pillar Two should not be underestimated, especially for the jobs that it will drive in the Northern Territory.
The NT economy is already gearing up to reap the benefits of AUKUS.
Last year for example, the Northern Territory government, Charles Darwin University, RMIT and the federal government established the first Defence and Aerospace Industry 4.0 Digital Test lab at CDU.
This was a decision ahead of its time that will help to prepare the Northern Australian workforce to be AUKUS-ready.
This initiative will help upskill Territorians to prepare them to seize the opportunities from cyber, artificial intelligence, quantum, hypersonics and other cutting-edge defence technologies through Pillar Two of the AUKUS partnership.
Thanks Deputy Speaker.
