Prime Minister Anthony Albanese announces $12 billion investment in WA’s shipbuilding industry for AUKUS deal

Anthony Albanese will on Sunday announce a $12 billion investment in the future of WA’s shipbuilding industry in a major boost to diversifying the State economy. The Prime Minister and Defence Minister Richard Marles will be in Perth commit to a $12b Commonwealth spend over the next 10 years to transform the Henderson shipyard into a Defence precinct capable of being a naval shipbuilding powerhouse and maintaining and servicing nuclear submarines — as part of the nation’s $358b AUKUS deal. The massive pay cheque signals a huge investment in WA’s future and an acknowledgement by the Albanese Government of WA’s critical importance to the nation’s defence and economic fortunes. “The investment is another way we are delivering record defence funding to bolster Australia’s capabilities,” Mr Albanese said. “This world class precinct will create more than 10,000 local jobs and strong opportunities for local industry. “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.” News of the expanded industry comes ahead of Premier Roger Cook’s trip to China and Japan next week as part of a trade mission with the superpowers to shore up trading relations. Mr Cook, who will attend Sunday’s announcement at Henderson, has spent several months pushing for further economic diversification. Though iron ore exports to China totalled $100b in 2024-25, Mr Cook has wanted to encourage additional income streams to the State coffers. Already, it has been announced that several general purpose frigates will be constructed at Henderson. But turning Henderson into a Defence precinct is seen as critical to diversifying WA’s economy. “The (Henderson) precinct will enhance Australia’s self-reliance by constructing and sustaining larger and more complex fleet vessels,” according to Australian Government Defence documents. “Establishing the precinct will diversify and directly support the WA economy. “It will boost industries in the region, including in engineering, logistics and supply chains. “Activities across Henderson and HMAS Stirling will create more than 10,000 jobs.” All-in-all it’s estimated a $20 billion-plus investment will need to be made to turn Henderson into a Defence precinct. Up until Sunday’s announcement, the Albanese Government committed $127 million to making that happen. The Federal Government has also previously announced $8b to upgrade HMAS Stirling, in Rockingham, which will become an operating base for nuclear-powered submarines coming from America, as part AUKUS. AUKUS — a military co-operation arrangement between Australia, the UK and the US, has yet to be signed off by the Trump administration. Mr Albanese has yet to secure a face-to-face meeting with Mr Trump to discuss the deal, which would see up to five nuclear submarines delivered to Australia by about 2030. The Prime Minister is hoping to speak with Mr Trump in person in coming weeks when the UN General Assembly meets in New York. Regardless, US and UK submarines will begin rotating out of HMAS Stirling in about two years’ time. “The Albanese Government continues to increase defence spending to record levels to deliver the capabilities Australia needs,” Mr Marles said. “Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway. “Less than a year from our announcement to establish the Defence Precinct at Henderson, today we are announcing additional funding to start delivering on key programs for the Australian Defence Force.” Defence Industry Minister Pat Conroy also talked up the importance of growing Henderson. “This investment is part of the Albanese Government’s commitment to building our sovereign defence industry and supporting a future made in Australia,” he said. “Western Australia already plays an important role in the delivery of capabilities for the ADF, and the consolidation of the Henderson precinct will be a significant boost for defence industry in the West. “It will support around 10,000 highly skilled, well-paid jobs over the next two decades, helping people across Western Australia build great futures for themselves and their families.”