Albanese government pours $12 billion into expanding AUKUS defence facility near Perth
14 September 2025
ABC News
The AUKUS deal is expected to see nuclear-powered submarines entering service for Australia.
In short:
Prime Minister Anthony Albanese will announce a $12 billion investment in a defence hub to build naval ships and dock nuclear-powered submarines under the AUKUS agreement.
The pledge comes as US media reports Secretary of State Marco Rubio privately reassured Defence Minister Richard Marles the deal would go ahead, despite a Pentagon review into the arrangement.
What's next?
Mr Marles on Sunday said he had been told when the AUKUS review would be finalised, but did not disclose when that would be.
The Albanese government will spend $12 billion on building a submarine and naval shipbuilding facility under AUKUS, as doubts linger over the agreement's future.
For months, the Trump administration has been pressuring Australia to lift defence spending, while the Pentagon reviews AUKUS against Donald Trump's "America First" agenda.
Over the weekend, American media reported that US Secretary of State Marco Rubio had privately reassured Defence Minister Richard Marles the deal would go ahead.

Mr Marles did not explicitly confirm the reports on Sunday, but said he spoke with Mr Rubio about AUKUS during a visit to Washington and "really positive comments" were made.
He also said he had been given a timeline for when the Trump administration's review of the deal would be finalised, but declined to divulge when that would be.
The investment will expand a defence precinct at the Henderson shipyard near Perth.
The government's new multi-billion-dollar funding commitment, to be announced on Sunday, will support the development of a major defence precinct in Henderson, south of Perth.
The funding will go towards construction of surface vessels for the Australian Defence Force, starting with the army's new landing craft.
It will also be used to build docking stations for nuclear-powered submarines, with Australia expecting to receive its first Virginia-class submarine in the 2030s under the AUKUS agreement.
The money will also be spent building maintenance facilities for surface combatant vessels and could help build Australia's future general purpose frigates.
Inside the plan to station US subs near Perth
Photo shows Aerial shot of Rockingham beach, houses, garden island and the causeway to the island.Aerial shot of Rockingham beach, houses, garden island and the causeway to the island.
The head of Australia's submarine agency says planning is so far advanced to settle the American soldiers that quarantine arrangements for their pets are underway.
Prime Minister Anthony Albanese is set to announce the investment in Perth alongside his deputy Mr Marles, Defence Personnel Minister Matt Keogh and Western Australia's Premier Roger Cook.
In a statement, Mr Albanese described the investment as "another way we are delivering record defence funding to bolster Australia's capabilities".
The government estimates the defence precinct in Henderson will cost about $25 billion over a decade.

An $8 billion operation is already underway south of Perth, where five nuclear-powered submarines and more than 1,000 American personnel will soon be based as part of Submarine Rotational Force-West.
USS Minnesota visiting WA
Perth will soon become home for hundreds of American service personnel.
The operation is the first sign of the AUKUS agreement in action, with up to four US Virginia-class submarines and one UK Astute-class submarine rotating through HMAS Stirling for maintenance and repairs from 2027.
The works are expected to entrench US military personnel and defence hardware into WA in a way that will be challenging to undo if the Trump administration loses interest in the security pact.
The Pentagon's review of AUKUS has cast doubt over the White House's support for the agreement.
Mr Marles made a hastily arranged trip to Washington DC last month, where he met with senior Trump administration officials including US Vice-President JD Vance.