A federal government decision to scrap plans for a nuclear waste dump outside the South Australian town of Kimba has increased speculation it will instead build a bigger facility on defence land at Woomera that could also accommodate high-level waste from the AUKUS submarines.

More than two decades of work by successive governments to find a site to store low- and medium-level waste ended on Thursday when Resources Minister Madeleine King announced the government would not appeal last week’s Federal Court decision against the dump going ahead.