The Albanese Labor Government is investing an additional $262 million to support local defence industry uplift and develop Australia's AUKUS nuclear-powered submarine supply chain.
This will be one of the greatest industrial endeavours in Australian history. Australian industry and jobs are at the forefront of the build and sustainment of our next generation conventionally-armed, nuclear-powered submarines. They will also play a vital role in growing more robust and resilient supply chains between Australia, the United Kingdom and the United States.
Over the next two years the Albanese Government will fund a range of initiatives to uplift our local defence industry, supporting around 125 businesses across Australia to invest in their own capabilities to meet the high standards of submarine build and sustainment activities in AUKUS nations.
This includes new initiatives and boost support for existing programs. The first tranche of funding will support industry through:
- The Defence Industry Development Grants Program: further investment into eligible Australian businesses intending to participate in the AUKUS submarine supply chain to receive timely uplift funding for security, skills, international accreditations and manufacturing capital equipment for defence domestic or export supply chains.
- The Global Supply Chain Program: expanding the program to support major UK and US submarine industry suppliers to provide commercial opportunities for Australian suppliers and increase Australian participation in trilateral supply chains.
- The Defence Industry Vendor Qualification Program: expanding and accelerating the qualification of Australian products (including, mechanical assemblies, castings, forgings, electro-mechanical components) into US submarine supply chains. This includes working with AUKUS partners to streamline processes and reduce regulatory friction for Australian business.
This investment comes as the AUKUS Naval Nuclear Propulsion Agreement, signed last August, enters into force.
The Agreement will enable the transfer of Virginia-class submarines from the US to Australia from the 2030s, as well as the transfer of information and equipment from the UK for use in Australia's SSN-AUKUS submarines.
Importantly, it also reinforces the AUKUS partners' commitment to setting the highest non-proliferation standard, and is consistent with Australia's international non-proliferation obligations.
The Albanese Government's commitment to the AUKUS pathway will offer significant opportunities and investment into Australian industry and infrastructure, and support local jobs.
