Australia plans to inject up to $159 billion into naval shipbuilding sector over the next decade

Australia has released the 2024 Naval Shipbuilding and Sustainment Plan, which outlines the government’s record investment of up to $159 billion over the next decade through the Integrated Investment Program, which will see “a significant boost to Australia’s maritime capabilities”.

The Albanese Government has reaffirmed its commitment to continuous naval shipbuilding and sustainment through the release of the 2024 Naval Shipbuilding and Sustainment Plan.

The plan articulates a 30-year pipeline of construction and sustainment projects, largely across South Australia and Western Australia, including conventionally armed, nuclear-powered submarines and an enhanced lethality surface combatant fleet.

This includes 55 newly announced vessels compared to the plan under the former Coalition government.

Specifically, the Albanese Government’s plan will see the Royal Australian Navy’s surface combatant fleet more than double compared to previous plans. In addition to the current build of six Hunter-class frigates in Adelaide, the country will build new general-purpose frigates, large optionally crewed surface vessels, and future destroyers.

Furthermore, Australia will build landing craft medium and landing craft heavy in Australia for
the Australian Army, as part of a transformation that will optimize the Army’s littoral maneuver capabilities, including land and maritime strikes.

These decisions will create an intergenerational pipeline of naval construction projects that will support around 8,500 jobs in shipbuilding and sustainment by 2030, plus an additional 20,000 jobs over the next 30 years in support of Australia’s nuclear-powered submarine program. 

The Albanese Government is already taking decisive steps to grow this workforce, including through:

• $1.5 billion to provide 500,000 free TAFE and vocational education training places;
• $250 million to attract, train, and retain the nuclear-powered submarine workforce, including 4,000 Commonwealth-supported STEM university places across Australia; 
• The implementation of the South Australia Defence Industry Workforce and Skills Report and Action Plans in partnership with the South Australian Government. 

The coordinated growth of this workforce will be overseen by the newly established Maritime Workforce and Skills Council in close collaboration with partners from federal, state, and territory governments, industry, trade unions, and academia.

The government is also progressing with detailed design and enabling works to deliver multi-billion-dollar infrastructure upgrades for Australia’s maritime industrial base, including the new Defense Precinct at Henderson in Western Australia and the Submarine Construction Yard at Osborne in South Australia.

“The long-term investment laid out in the 2024 Naval Shipbuilding and Sustainment Plan represents the Albanese Government’s vision for continuous naval shipbuilding and sustainment, a future made in Australia and our commitment to keeping Australians safe,” said Deputy Prime Minister Richard Marles.

“Through the most significant investment in maritime capability in Australia’s history, we will see generations of naval construction projects happen right here, with plans to construct and upgrade over 70 vessels across South Australia and Western Australia.”

“Under this plan, the Albanese Government is building world class shipyards and creating tens of thousands of well-paid jobs for decades to come, providing financial security for Australians and a future made in Australia,” Minister for Defence Industry and Capability Delivery Pat Conroy stated.

“The Government’s record investment in the maritime domain will deliver a much bigger and more lethal navy and an army that’s appropriate to our strategic environment. This will make Australia safer.”

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