Australia unveils US$7 billion plan to more than double size of its naval fleet

At least some of the fleet will be armed with Tomahawk missiles capable of carrying out long-range stand-off strikes on targets deep inside enemy territory – a major deterrent capability.

Marles said on Tuesday that Australia’s government will, in the May budget, bolster funding for the military over the next decade by A$11.1 billion (US$7.3 billion) for a total of A$54 billion. The aim is to provide a larger and more lethal fleet that will complement a planned conventionally-armed, nuclear-powered submarine fleet.

Australia to boost long-range strikes in defence reform as China’s power grows

The announcement comes after a massive build-up of firepower by China and Russia, and amid growing confrontation between nervous US-led allies and increasingly bellicose authoritarian governments.

Australia, an open, trading island nation flanked by the Pacific and Indian oceans, relies on secure sea lanes to move goods in and out and the fleet overhaul reflects an increasingly contested region given China’s rise. The current fleet is the oldest Australia’s navy has ever operated and an analysis last year called for immediate action to boost the force’s air-defence, long-range strike, presence and anti-submarine warfare capabilities.

Tuesday’s announcement has been almost a year in the making. In April 2023, the centre-left Labor government revealed the findings of a major review into Australia’s military that found the country’s defence forces were “not fully fit for purpose”.

As part of the government’s response to the findings, Marles announced a “short, sharp review” of Australia’s surface fleet led by former US Admiral William H. Hilarides and it was his findings and the government’s initial response released on Tuesday.

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Australia unveils biggest defence reform in decades, prioritising long-range missiles

Australia unveils biggest defence reform in decades, prioritising long-range missiles

The Hunter-class frigates provided by BAE Systems were a particular focus of the review, with Australian Broadcasting Corp. reporting repeated delays and design problems with the vessels had pushed the delivery of the first ship into the 2030s.

Simultaneously, Australia is working with the US and UK governments to build and equip a fleet of nuclear-powered submarines for Canberra to field, potentially as early as the 2030s, as part of the Aukus agreement signed in 2021.

The 2023 defence review had recommended a greater emphasis on domestic manufacturing and Marles on Tuesday reinforced a continuous shipbuilding programme through the decades ahead outlined in the programme. South Australia and Western Australia will be the centrepieces of vessel construction, with the latter focused on the Henderson Naval precinct.

Western Australia, including the capital, Perth, is an important political battleground for the Labor government, which currently holds power with a majority of just two seats in the lower house of parliament.

Australia’s Defence Minister Richard Marles prepares to speak to the media aboard the Australian naval ship HMAS Canberra in Sydney on Tuesday. Photo: AFP

The Australian government on Tuesday highlighted that not only was it boosting the size of the fleet, it is also bringing forward the timeline. The first Hunter-class frigate is still due in 2032 – and the final one in 2043 – but Australia will also purchase 11 general purpose frigates “off the shelf”.

The first of those will be delivered this decade and to ensure speed, quality and best cost, the first three will be built abroad and the remainder in Perth. Four options are being considered from Spain, Germany, South Korea and Japan with a decision anticipated next year.

“Australia’s modern society and economy rely on access to the high seas, trade routes for out imports and exports, and the submarine cables for the data which enables our connection to the international economy,” Marles said.

“The Royal Australian Navy must be able to ensure the safety and security of our sea lines of communication and trade routes.”

Australia wants Japan’s ‘cutting edge’ tech for Aukus – but not just yet

Prime Minister Anthony Albanese’s government commissioned the review of the nation’s defence forces shortly after coming to government, in the face of growing strategic tensions in the Indo-Pacific region, a rapidly accelerating Chinese military build-up and concerns over repeated delays and shortfalls in Australia’s defence department.
The plan would see Australia increase its defence spending to 2.4 per cent of gross domestic product, above the 2 per cent target set by its Nato allies.

Additional reporting by Bloomberg

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