Australia is moving forward with a substantial submarine program under the AUKUS security pact, with the government outlining a financial commitment of roughly 245 billion dollars over 32 years. The objective is to equip the Royal Australian Navy with advanced nuclear submarines, a project that reflects a long term alliance with the United States and the United Kingdom. The information was communicated by the Australian Treasury and reflects the scale of investment anticipated to support the submarine fleet and its sustaining systems. [Source: Australian Treasury]
In detailing the financial path, the treasurer noted that the ongoing annual cost of the nuclear submarine program will be at least 0.15 percent of Australia’s GDP while the submarines are in service. He indicated that the costs would be held within an initial cap of 58 billion Australian dollars over the next decade, with the potential for adjustments as the program progresses. This framing places the project within a long term budgetary envelope, balancing defense ambitions with fiscal planning. [Source: Australian Treasury]
Current defense spending in Australia stands at about 48.6 billion Australian dollars per year, roughly 2.11 percent of GDP. To support the nuclear submarine build and its sustainment, official projections suggest annual expenditures would need to rise to around 59.6 billion Australian dollars, or roughly 39.6 billion US dollars, pushing defense’s share of GDP to about 2.6 percent. The goal is to align funding with the scale of the submarine program while continuing to address broader national security needs. [Source: Australian Treasury]
On the international front, former President Joe Biden emphasized that Australia would remain a non-nuclear weapons state. He stated that Australia will not manufacture the nuclear fuel required for submarines and that the AUKUS submarines planned by the allies are not intended to carry nuclear weapons. This position underscores the pact’s cooperative security framework and nonproliferation commitments while enabling Australia to leverage nuclear propulsion technology under safeguards. [Source: White House Statements]