Australia Commits $2.2 Billion to Sustain Collins-Class Submarines

A Collins Class submarine at Henderson Marine Complex, Western Australia. (Australian DoD)

US Naval Warfare post

Australia has made a significant commitment to the longevity of its Collins-class submarines, pledging at least AUD 2.2 billion (USD 1.44 billion) for sustainment work. A government statement released on July 27 details that this funding is part of a broader AUD 4 to 5 billion commitment to maintain the Collins-class as a potent strike and deterrence capability.

The Defence Ministry has faced challenges in determining the extent of work needed to keep the Collins-class operational until the expected arrival of American-built Virginia-class submarines in the 2030s. Originally planned for retirement by 2026, the Collins boats’ operational life has been extended due to the AUKUS agreement, which has raised concerns about a potential capability gap. U.S. Defence Secretary Lloyd Austin has pledged to ensure America helps plug any gap.

With the government’s total commitment of AUD 4 to 5 billion for the Collins program, after allocating AUD 2.2 billion for sustainment, approximately AUD 1.8 to 2.8 billion remains for further life extension efforts. This is less than previously anticipated, as the Labor Party government of Anthony Albanese has decided to drop several expensive upgrades. A June statement noted that the Collins submarines would not be fitted with Tomahawk cruise missiles or an optronics electro-optical mast.

The four-year contract for this work has been awarded to ASC Pty Ltd, a government-owned company established to build the Collins-class. Work on HMAS Farncomb, the first Collins submarine to be rebuilt, is scheduled to begin in 2026.

The announcement also highlights the importance of preserving a skilled workforce capable of working on the future SSN AUKUS submarines once Australia starts building its own nuclear-powered boats. “This new contract further ensures these workers have certainty in Australia’s national naval shipbuilding and sustainment enterprise and helps to grow the workforce required to build and sustain Australia’s future nuclear-powered submarines,” stated Finance Minister Sen. Katy Gallagher.