Government commits $4.6bn more to Osborne submarine yard

The latest funding lifts the Commonwealth’s total investment in the Osborne nuclear-powered submarine construction yard to $8.5 billion, following the $3.9 billion commitment announced earlier this year, and marks another major milestone in what the government describes as one of the most complex industrial undertakings in Australia’s history.

The purpose-built construction yard will form the centrepiece of Australia’s sovereign conventionally armed, nuclear-powered submarine enterprise, providing the facilities required to build, maintain and sustain the future SSN-AUKUS fleet over the coming decades.

Construction across the Osborne precinct is continuing at pace, with the funding supporting critical infrastructure, production facilities, workforce development and industrial capability as Australia prepares to transition from submarine operator to submarine builder.

Australian industry is already playing a central role in the program. Australian Naval Infrastructure (ANI) has awarded approximately $1.9 billion in contracts to date, supporting local businesses, strengthening national supply chains and expanding Australia’s sovereign industrial base.

Deputy Prime Minister and Defence Minister Richard Marles said the investment represented another significant step in building Australia’s sovereign submarine capability: “This investment is another important step in building the sovereign capability Australia will need to build, operate, maintain and sustain our future submarine fleet.”

”The work underway right now at Osborne demonstrates that AUKUS is on track and happening now, all while creating opportunities for Australian industry and workers for decades to come,” Minister Marles said.

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Minister for Defence Industry Pat Conroy said: “The billions of dollars the Albanese government is investing at Osborne is supporting a future made in Australia and a secure future for thousands of locals who will benefit from high-skilled, well-paid jobs for generations to come.”

The project is also becoming one of the country’s largest defence employment initiatives. The broader nuclear-powered submarine program is expected to generate almost 10,000 jobs across South Australia alone, with around 1,100 people already working on the construction yard and associated workforce development programs.

Current activity includes around 500 designers and project managers overseeing the planning and delivery of the shipyard, up to 500 workers constructing production demonstration facilities and around 100 personnel supporting development of the future Skills and Training Academy Campus.

Scheduled to commence operations in early 2028, the academy will become a cornerstone of Australia’s submarine workforce strategy. Designed to accommodate up to 1,000 learners simultaneously, the facility will replicate the working environment of the submarine construction yard, allowing apprentices, tradespeople and engineers to combine classroom instruction with practical training using full-scale mock-ups and prototype manufacturing systems.

Minister Conroy said: “The Skills and Training Academy Campus will play a vital role in developing the highly skilled workforce needed to support Australia’s future submarine capability and broader naval shipbuilding enterprise.”

Training will be delivered in partnership with Australia’s Sovereign Submarine Build Partners, BAE Systems Australia and ASC, helping establish the highly specialised workforce required to support Australia’s future nuclear-powered submarine fleet.

South Australian Premier Peter Malinauskas described the scale of the project as unprecedented, noting the completed submarine yard would be around 10 times larger than the existing Osborne shipyard.

“It is difficult to comprehend the scale of the billions of dollars of investment being delivered at Osborne to enable us to build the most complex machines on the planet,” Malinauskas said.

Malinauskas’ colleague, South Australian Minister for Defence and Space Industries Chris Picton, added: “South Australia is at the centre of one of the most significant defence undertakings in Australian history. AUKUS is a once-in-a-generation opportunity that will boost our nation’s defence capabilities as well as create thousands of jobs for South Australians.”

The latest investment reinforces Osborne’s emergence as the centre of Australia’s future naval shipbuilding enterprise, with the infrastructure now taking shape to support the nation’s most ambitious defence capability project while creating a long-term pipeline of highly skilled jobs and advanced manufacturing expertise.

Stephen Kuper

Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.