The Albanese Government said the yard will help deliver Australia’s future conventionally armed, nuclear-powered submarines. It described the project as part of one of the most complex industrial efforts in the country’s history.
The latest funding builds on the $3.9 billion announced by the Prime Minister and South Australian Premier in February. It will support continued construction and development across the Osborne precinct.
The yard is intended to build the infrastructure, workforce and industrial base needed for Australia’s future submarine fleet. The government said this enterprise must support construction, operation, maintenance and sustainment for decades.
Australian industry is already involved through contracts awarded by Australian Naval Infrastructure. ANI has awarded about $1.9 billion in contracts to support supply chains, business growth and sovereign industrial capacity.
The broader submarine programme is expected to create nearly 10,000 jobs in South Australia alone. About 1,100 workers are already supporting the yard and related workforce initiatives.
Around 100 workers are supporting the Skills and Training Academy Campus. Another 400 to 500 workers are supporting Production Demonstration Facilities, while 500 designers and project managers are working on planning, design and delivery of the yard.
The Skills and Training Academy Campus remains on track to start operations in the first quarter of 2028. At full capacity, it will accommodate up to 1,000 learners at a time across the nuclear-powered submarine and wider naval shipbuilding workforce.
The academy will simulate the working environment of the submarine construction yard. Training will combine theory and practical work using life-sized mock-ups and prototypes, with input from BAE Systems and ASC Pty Ltd.
Deputy Prime Minister Richard Marles said: “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.”
South Australian Premier Peter Malinauskas said: “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. “The submarine yard will be ten times bigger than the existing shipyard.”
“This project will dwarf the delivery of a non-stop South Road and New Women’s and Children’s Hospital combined. “And it is already happening.”
“We are pleased to work in close partnership with the Albanese Government to deliver the crucial infrastructure needed, and look forward to seeing young South Australians learning high value nuclear skills at Osborne within the next two years.” The government said the training pipeline is central to meeting future workforce needs.
Minister for Finance Katy Gallagher said: “The Nuclear-Powered Submarine Construction Yard is a nation-building project that will support jobs, strengthen industrial capability and provide lasting benefits for Australia’s economy. “Through Australian Naval Infrastructure, we are ensuring the foundations are in place to deliver this critical national capability for future generations.”
Minister for Defence Industry Pat Conroy said the investment would support skilled local employment. “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 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.” The campus is designed to support both the AUKUS submarine effort and Australia’s wider naval shipbuilding base.
Minister for Health and Member for Hindmarsh Mark Butler said: “This precinct at Osborne has been delivering employment and opportunity to South Australians for decades, and this significant investment paves the way to support our jobs and prosperity for the future.” The statement linked the project to long-term industrial activity in the Osborne precinct.
South Australian Minister for Defence and Space Industries Chris Picton said: “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 new funding keeps the Osborne yard on track for Australia’s planned AUKUS submarine build. It also puts South Australia at the centre of the workforce and infrastructure buildout needed for the future fleet.
