PERTH – The Albanese Government has today committed an initial $12 billion to a monumental overhaul of the Henderson Defence Precinct in Western Australia, a move it describes as a crucial down payment on securing Australia’s sovereign naval shipbuilding and sustainment capabilities for generations to come.
- Prime Minister Anthony Albanese frames the landmark investment as a direct response to the nation’s evolving strategic needs, promising thousands of high-skilled jobs in Western Australia.
- Defence Minister Richard Marles says the upgrade is essential for building the future naval fleet and supporting nuclear-powered submarines under the AUKUS security pact.
- The Opposition has questioned the government’s ability to manage the project on time and on budget, demanding scrutiny to ensure the funding delivers real capability.
The landmark investment, announced on-site by Prime Minister Anthony Albanese, is designed to prepare the critical Indian Ocean facility for the construction of Australia’s future surface fleet and to support the rotational presence of allied nuclear-powered submarines.
Standing against a backdrop of naval vessels, Mr Albanese declared the announcement a direct response to the nation’s evolving strategic circumstances, as outlined in the landmark Defence Strategic Review.
“In a world of increasing complexity and strategic competition, Australia cannot be complacent. We must invest in our sovereign capability, in our industrial base, and in the Australian workers who will build our nation’s security,” Mr Albanese stated. “This $12 billion is more than just an investment in steel and concrete; it’s an investment in sovereignty, security, and a future made in Australia. The road to Henderson will be paved with thousands of high-skilled, high-wage jobs for West Australians.”
The funding will kickstart a multi-decade program to transform Henderson into one of the most advanced naval shipyards in the world. Initial works will focus on major infrastructure upgrades, including the development of new large-vessel dry berths, advanced shiplifts, and purpose-built fabrication and block assembly halls. These facilities are essential for handling the scale and complexity of the Hunter-class frigates and the future destroyers that will form the backbone of the Royal Australian Navy.
Defence Minister Richard Marles stressed the strategic necessity of the upgrade, linking it directly to Australia’s ability to project power and maintain stability in the Indo-Pacific.
“Our strategic environment dictates that we must have a potent, resilient, and self-reliant Australian Defence Force,” Mr Marles said. “The ability to build, upgrade, and sustain our own naval fleet right here is central to that mission. Henderson will not only be the construction yard for our future surface combatants but will also be a vital sustainment hub for our conventionally-armed, nuclear-powered submarines and for the vessels of our closest allies.”
The government projects the initial investment will create over 3,000 direct jobs during the construction phase and support a further 10,000 jobs in the broader supply chain. However, the Opposition met the announcement with cautious approval, immediately raising concerns over project management.
Shadow Defence Minister Andrew Hastie, a West Australian native, acknowledged the importance of the Henderson precinct but called for more detail on the government’s execution strategy.
“While any investment in Henderson is welcome, this announcement comes after years of delays and cuts to other defence projects under this government,” Mr Hastie stated. “The core issue remains: can Labor manage these complex projects on time and on budget? The Opposition will be scrutinising the details to ensure this funding delivers real capability, not just a headline.”
Defence analysts suggest the investment is a necessary and logical step in realising the ambitions of AUKUS and the Defence Strategic Review, but warn that the primary challenges will be in workforce development and preventing the cost blowouts that have plagued previous defence procurements.
The first tranche of funding will be allocated in the forthcoming budget, with preliminary site works scheduled to begin as early as mid-2026.