Australia is set to spend $12 billion as it seeks to transform a Perth-based shipyard into a major defence hub.

(Above image: Aerial imagery of Henderson, Western Australia Image supplied by Ventia.)

The Commonwealth Government has announced a $12 billion ‘downpayment’ that will be applied toward delivering the Henderson Defence Precinct in the Perth suburb of Henderson.

Announced last year, the project aims to transform the current shipyard into a world-class shipbuilding and maintenance precinct.

It will equip the precinct with the facilities to build and maintain surface vessels and potentially frigates.

It will also provide docking facilities for the nuclear-powered submarines which Australia plans to acquire, then build, from early next decade onwards under the 30-year $368 billion AUKUS pact with the United States and the United Kingdom.

The latest announcement follows an initial $127 million commitment to progress planning for the precinct.

Overall, the government says that early planning and advice indicates that the Henderson Precinct will require investment in the order of $25 billion.

The $12 downpayment aims to kick-start early works on the hub whilst more detailed planning and design work is finalised.

Specifically, the funding will be applied towards:

  • Construction of surface vessels for the Australian Defence Force. This will start with Army’s Landing Craft and may subsequently extend to the domestic build element of Australia’s future general purpose frigates.
  • Facilities to support the ongoing maintenance of Australia’s surface combatant vessels.
  • Contingency docking capabilities for the AUKUS related nuclear­ powered submarine fleet from the early 2030s.
  • Depot-level maintenance, including graving docks.

Additional funding requirements beyond the $12 billion downpayment will be considered once detailed design works are finalised and as delivery models are determined.

The latest announcement comes as Prime Minister Anthony Albanese is set to fly to the United States later this week, where he hopes to secure his first face-to-face meeting with US Present Donald Trump.

The US president has persistently pressured allies including Australia to increase defence spending.

(The latest announcement comes on top of an extra $57 billion which the government has already brought forward in defence spending over the next decade.)

The funding also comes as the need for expanded shipbuilding capacity was highlighted by the Independent Analysis into the Navy’s Surface Combatant Fleet and the 2024 National Defence Strategy.

These highlighted the need for a larger and more lethal surface combatant fleet of warships.

Prime Minister Anthony Albanese welcomed the announcement.

“Today’s investment is another way we are delivering record defence funding to bolster Australia’s capabilities,” he said.

The new precinct is expected to create up to 10,000 jobs as well as opportunities for local businesseses.

 

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