The Government remains committed to strengthening Australia’s defence capability with several initial measures to implement the nuclear-powered submarine program. Over the next four years, the Albanese Government will invest more than $19 billion to implement the immediate priorities identified in response to the Defence Strategic Review, with defence spending to increase to more than 2.3% of GDP in 2032-33, based on current GDP projections.
Nuclear-powered submarine program – initial implementation
From 2023–24, the Government will provide $4.5 billion over 10 years from 2023–24 (and $482.7 million per year ongoing) to support the initial steps in Australia’s acquisition of a conventionally-armed, nuclear-powered submarine capability. Funding includes:
- $4.2 billion over 10 years from 2023–24 (and $482.7 million per year ongoing) to support the establishment and ongoing operation of a new Australian Submarine Agency (the Agency), within the Defence portfolio to manage Australia’s nuclear-powered submarine program.
- $127.3 million over 4 years from 2023–24 for 4,000 additional commencing Commonwealth supported places at universities and other higher education providers for courses that support the skills requirements of the nuclear-powered submarine program, including STEM and management disciplines;
- $87.2 million over two years from 2023–24 to support initial regulatory activities and the development of regulatory standards and frameworks, and non-proliferation and safeguards arrangements for the nuclear-powered submarine program;
- $52.7 million over two years from 2023–24 for the Department of Foreign Affairs and Trade to provide international policy advice and diplomatic support for the nuclear-powered submarine program;
- $11.1 million over two years from 2023–24 for the Department of Finance to provide commercial, financial and investment program management advice in support of the delivery of the nuclear-powered submarine program;
- $3.9 million over two years from 2023–24 for the Department of Employment and Workplace Relations to establish a dedicated taskforce to support the development and delivery of skills and training initiatives for the nuclear-powered submarine program;
- $2.4 million over two years from 2023–24 for the Attorney-General’s Department to provide legal and policy advice for the nuclear-powered submarine program, including for the development of relevant treaties and international agreements; and
- $1.1 million over two years from 2023–24 for the Department of Education to support the development and delivery of education, skills and training initiatives for the nuclear-powered submarine program.
The Government will also provide Australian Naval Infrastructure Pty Ltd with an equity injection over 5 years from 2023–24 to commence early construction and design works for a submarine construction yard and to design the Skills and Training Academy in South Australia. The financial implications of this component of the measure are not for publication (nfp) due to commercial sensitivities.
This measure will support the implementation of the Government’s response to the Defence Strategic Review (2023).
Advanced strategic capabilities accelerator
Over 10 years from 2023-24, the Government will provide $3.4 billion to establish the Advanced Strategic Capabilities Accelerator within the Department of Defence to lift capacity to translate disruptive new technologies into Defence capability rapidly. This will be done in close partnership with Australian industry.
Recognising the Australian Defence Force’s Unique Service to the Nation
From 2023–24, the Government will provide $397.4 million over two years to support the retention of Defence personnel and the achievement of Defence’s workforce growth targets. Funding includes:
- $395.4 million over two years from 2023–24 to pilot a $50,000 continuation bonus that would be offered to Australian Defence Force (ADF) personnel nearing the completion of relevant initial periods of service; and
- $2.0 million in 2023–24 to conduct a defence housing feasibility review.
This measure supports the priority for growth and retention of a highly skilled Defence workforce within the Government’s response to the Defence Strategic Review.
Modernisation and sustainment of ICT systems
The Government will provide $254.1 million over 4 years from 2023-24 (and $56.1 million per year ongoing from 2027-28) to replace, enhance and sustain the Department of Veterans’ Affairs’ new and at-risk legacy ICT systems.
Additional assistance to Ukraine
From 2022-23, the Government will provide $189.6 million over 2 years to deliver additional assistance to Ukraine. This includes:
- Provision of Bushmaster Protected Mobility Vehicles;
- Unmanned aerial vehicles;
- Infantry training to the Ukranian Armed Forces; and
- 155-millimetre artillery ammunition as part of a joint initiative between France and Australia.
Department of veterans’ affairs claims processing
The Government will provide $64.1 million in 2023-24 to provide additional resourcing to address claims backlog and provide increased support to veterans. This is in response to increased demand for downstream services, particularly in the Veteran Access Network, Complex Case Management, Account processing, Information Access and Rehabilitation, Pharmacy and Health Approvals.
This measure builds on the 2022-23 October Budget measures titled Investing in Frontline Service Delivery and Expanding the Demand Driven Funding Model.
Australian Defence Force deployments
In 2022-23, the Government will provide $37.4 million to Australian Defence Force deployments, including:
- assisting the Solomon Islands’ Government to maintain stability and security under Operation Lilia;
- providing training to the Ukrainian Armed Forces as part of a United Kingdom-led program under Operation Kudu;
- undertaking additional surveillance in support of the Department of Home Affairs’ Operation Sovereign Borders; and
- supporting the Vanuatu Government following Tropical Cyclones Judy and Kevin, including deployment of personnel, air transport and aerial damage assessments under Operation Vanuatu Assist 23.
Extension of Defence Industry Pathways Program
The Government will provide $11.4 million over 3 years from 2023-24 to extend the Defence Industry Pathways Program within the Western Australian shipbuilding sector. The Program provides 12 month skills development opportunities through which participants gain an understanding of defence industry and obtain a nationally accredited Certificate III qualification.
Sir John Monash Centre – additional funding
From 2023-24, the Government will provide additional capital funding of $8.3 million over 6 years to support the Sir John Monash Centre in France to replace ageing technical equipment and to maintain compatibility with new and emerging technology.
Supporting Veterans - volunteer training in suicide recognition and intervention
From 2023-24, the Government will provide additional funding of $2.0 million over two years to continue the Department of Veterans’ Affairs’ mental health literacy and suicide intervention training program for the ex-service community.
This measure supports the Australian Government Response to the Interim Report of the Royal Commission into Defence and Veteran Suicide.
Supporting Veteran Families at Risk
From 2023-24, the Government will provide $0.5 million over 4 years (and $0.2 million per year ongoing) to expand the support provided under the Defence, Veterans’ and Families’ Acute Support Package Act to grandparents who are full-time carers for grandchildren who are children of a veteran.
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