Anthony Albanese to pledge $12bn in AUKUS funding to woo Donald Trump
The PM will make a major down payment on AUKUS infrastructure in Western Australia ahead of a hoped-for first meeting with Donald Trump.
Anthony Albanese will pledge a $12bn down payment on AUKUS infrastructure in Western Australia as he looks to bolster his government’s standing in Washington ahead of a hoped-for first meeting with Donald Trump.
The Prime Minister will announce the funding on Sunday to support submarine maintenance and naval shipbuilding at Perth’s Henderson precinct, with the investment to support a claimed 10,000 jobs.
The pledge comes amid an “America First” review of the AUKUS pact by Pentagon policy chief Elbridge Colby, and rising pressure from the Trump administration for Australia to lift defence spending from 2 per cent of GDP to at least 3.5 per cent.
It follows advice that $25bn worth of upgrades will be required at the precinct over the coming decade.
The government is in a race against time to get Henderson and the nearby HMAS Stirling naval base ready for the start of rotational deployments of US and British nuclear submarines from 2027, and the promised arrival of Australia’s first Virginia-class submarine in about 2032.
The new investment will support the development of new dry docks and other facilities for submarine and surface ship maintenance.
It will also underpin the delivery of new army landing craft and Australia’s future general purpose frigates, to be built by Japanese company Mitsubishi Heavy Industries in partnership with Australian shipbuilder Austal.
“This early commitment of funding will provide certainty to industry who will partner on the construction of infrastructure and facilities and will also kickstart early works whilst more detailed planning and design work for Henderson are finalised,” the government said in a statement.
It said additional funding would be considered when detailed designs were completed, and could include options for private financing of AUKUS infrastructure.
The government has so far committed $127m to a Henderson planning study amid opposition criticism over the lack of real progress in getting vital upgrades underway.
Mr Albanese spoke to Mr Trump on the phone about a week ago in their fourth such conversation, discussing shared US-Australia security interests.
But a face-to-face meeting with the US President has so far eluded the Prime Minister, who is hoping to secure a sit-down with Mr Trump during his upcoming US trip to address the UN General Assembly, or at an upcoming multilateral summit.
Mr Albanese will be joined in Perth for the announcement by Defence Minister Richard Marles, Defence Personnel Minister Matt Keogh and WA Premier Roger Cook.
“This world class precinct will create more than 10,000 local jobs and strong opportunities for local industry,” the Prime Minister said.
“There is no greater honour than serving our country in our nation’s uniform and my government is dedicated to investing in the defence capabilities our nation requires.”
Mr Marles travelled to Washington last month to reassure Vice President JD Vance and US Secretary of State Marco Rubio that Australia would lift its defence funding and pave the way for a Trump-Albanese meeting.
The Washington Post reported on Saturday that Mr Rubio, who is also White House national security adviser, told Mr Marles the AUKUS pact would not be terminated.
The trip was marred by Mr Marles’ claim that it was for talks with Defence Secretary Pete Hegseth, whose office said they met in a “happenstance encounter”.
Mr Colby, an AUKUS sceptic, has expressed concern that America is not producing enough Virginia-class submarines to supply Australia with a promised three boats, and that Australia might not deploy its future nuclear subs in a war with China against Taiwan.
The US’s NATO allies have pledged to increase defence spending to 5 per cent of GDP, including 3.5 per cent on military capabilities and 1.5 per cent on infrastructure.
Like Australia, Japan and South Korea are holding out on meeting Mr Trump’s 3.5 per cent of GDP demand.
The Albanese government says it has increased defence finding to “record levels”, with an extra $10bn over the coming four years and an additional $57bn over the coming decade.
But the Defence budget, which is set to rise to nearly $59bn in 2025-26, hits a new record level every year.
According to the budget papers, just 32 per cent of defence spending is going towards acquiring new weapons and equipment – well under the 42 per cent target Labor wants to hit by the end of the decade.
Mr Marles said the Henderson precinct would be critical to Australia’s nuclear submarine ambitions and its push to develop a continuous naval shipbuilding industry.
“In less than a year from our announcement to establish the defence precinct at Henderson … we are announcing additional funding to start delivering on key programs for the Australian Defence Force,” he said.
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