Western Australia Henderson Defence Precinct to receive $12 billion funding for naval shipbuilding and AUKUS submarine maintenance over the next decade.
The Albanese Government has announced a $12 billion commitment to transform the Western Australia Henderson Defence Precinct into a naval shipbuilding and submarine maintenance hub. The investment is part of Australia’s broader AUKUS partnership and long-term defence capability plan.
Watch the government’s official announcement about the Henderson Defence Precinct here:
Western Australia Henderson Defence Precinct Funding Commitment
Prime Minister Anthony Albanese confirmed the $12 billion defence investment during a visit to Perth. The funding will be allocated over the next decade, focusing on constructing and maintaining naval vessels.
Deputy Prime Minister and Defence Minister Richard Marles joined Mr Albanese, Defence Industry Minister Pat Conroy, and Premier Roger Cook at Henderson for the announcement. The commitment marks one of the largest defence allocations to Western Australia in decades.
The government expects the Western Australia Henderson Defence Precinct to create more than 10,000 direct jobs, supporting small and medium-sized businesses in the local economy. Early projections indicate the project could require an overall investment of about $25 billion to be fully delivered.
Role in AUKUS and Naval Shipbuilding
The Western Australia Henderson Defence Precinct will play a central role in Australia’s naval strategy under AUKUS. The facility will provide docking capabilities for conventionally armed, nuclear-powered submarines due in the early 2030s.
It will also support the construction of surface vessels, including landing craft for the Army and future general-purpose frigates. The precinct is being positioned as a key partner in building and maintaining vessels for the Australian Defence Force.
Defence officials confirmed that the investment will allow Henderson to sustain larger and more complex fleet operations. The precinct will also link with upgrades at HMAS Stirling in Rockingham, already funded with $8 billion, to host rotating US and UK submarines from 2027.
Anthony Albanese $12 Billion Defence Investment Ahead of US Visit
The announcement comes a week before Prime Minister Anthony Albanese is scheduled to travel to the United States for talks with American officials.
For months, the Trump administration has been reviewing the AUKUS agreement against its “America First” policy. US officials have pressed Australia to lift its defence spending, with targets ranging from 2.2 per cent of GDP to as high as 3.5 per cent.
American media reported that Secretary of State Marco Rubio privately reassured Defence Minister Richard Marles during meetings in Washington that the deal would continue. Mr Marles did not disclose the Pentagon review timeline but confirmed that positive discussions had taken place.
WA Defence Industry Expansion and Economic Diversification
The Western Australia Henderson Defence Precinct is being marketed as important to the expansion of the WA defence industry and diversification of the economy. Whereas iron ore exports continue to prevail, Premier Roger Cook has tried to find alternative sources of revenue for the state economy.
Western Australia will have an opportunity to have an industrial base in the long term through the $12 billion allocation in the engineering, logistics, and supply chains. Documents on defence planning indicate that the Henderson activities will lead to national self-reliance and the support of the economy of Western WA directly.
The expansion aligns with earlier announcements that general-purpose frigates would be constructed at Henderson. Officials stated the transformation would secure a continuous naval shipbuilding capability for decades.
Integration with HMAS Stirling Operations
The Western Australia Henderson Defence Precinct will operate in close connection with HMAS Stirling, Australia’s largest naval base. Together, the two sites will anchor the country’s nuclear submarine pathway under AUKUS.
HMAS Stirling in Rockingham, Western Australia, will support submarine rotations under AUKUS
From 2027, up to four US Virginia-class submarines and one UK Astute-class submarine will rotate through HMAS Stirling. More than 1,000 American personnel are expected to be based in Western Australia under Submarine Rotational Force-West.
This integration is designed to accelerate submarine readiness for both the United States and Australia. By providing maintenance capacity in Perth, the arrangement is expected to increase the number of operational days at sea for the US fleet.
Statements from Government Leaders
During the announcement, Mr Albanese emphasised the dual defence and economic benefits of the Western Australia Henderson Defence Precinct.
“Today’s investment is another way we are delivering record defence funding to bolster Australia’s capabilities,” he said.
Our job is to keep Australians safe and prepare for the future.
That’s what we’re delivering with this Defence Precinct here in Henderson, Western Australia.
It will support 10,000 local jobs, strengthen our defence force for the future, and help deliver AUKUS.
Because good… pic.twitter.com/YPQ00nzPcG
— Anthony Albanese (@AlboMP) September 14, 2025
Mr Marles noted that the funding builds on last year’s commitment to establish the precinct:
“Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in Western Australia and Australia’s nuclear-powered submarine pathway.”
Defence Industry Minister Pat Conroy further stated that the consolidation of Henderson would assist approximately 10,000 well-skilled employees, benefiting local households and promoting industry involvement in the defence sector.
Broader Strategic Context
The Albanese Government framed the $12 billion investment as a continuation of record defence allocations since 2022. Since taking office, Labour has committed nearly $70 billion to defence spending increases across multiple programs.
However, Shadow Defence Minister Angus Taylor criticised the government for moving too slowly, calling for readiness to meet strategic challenges. He argued that Australia faces its most serious security environment since the Second World War and pressed for spending at 3 per cent of GDP.
While the debate continues, Canberra is advancing preparations for the first transfer of a Virginia-class submarine, scheduled for the early 2030s.
Industry and Infrastructure Development
The Western Australia Henderson Defence Precinct will include new shipbuilding facilities, graving docks, and depot-level maintenance centres. Construction will begin with Army landing craft, expanding later to include frigates and submarine docking stations.
New facilities at Henderson will build and sustain advanced naval vessels and submarines
The government confirmed that private financing models may be explored for future phases once detailed designs are complete. Early works funded by the $12 billion defence investment will provide certainty to industry partners.
Officials expect the expanded precinct to deliver:
- Construction of surface vessels for the ADF
- Sustainment facilities for surface combatant ships
- Docking for nuclear-powered submarines
- Maintenance facilities, including graving docks
These elements will underpin Australia’s capability to independently sustain its naval forces into the next decade.
Long-Term Vision for Western Australia Henderson Defence Precinct
The development of the Western Australia Henderson Defence Precinct reflects a long-term strategy to anchor Australia’s naval shipbuilding industry in Western Australia.
In connecting the local industry to the demands of the national defence, the government anticipates developing a sustainable foundation on future projects. The precinct will also have a positive effect on communities in Perth and the region of WA because job creation is likely to surpass 10,000 positions.
The project is the biggest defence project in the history of Western Australia, which will accompany the similar growth of HMAS Stirling and establish the position of the state in AUKUS.
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Final Thoughts
The Anthony Albanese $12 billion defence investment secures Henderson’s place as a central pillar of Australia’s naval strategy. The Western Australia Henderson Defence Precinct will serve as a foundation for shipbuilding, submarine maintenance, and regional defence cooperation under AUKUS.
As the process of planning is underway and the initial works will commence soon, Western Australia will be at the forefront of promoting the defence industry in Australia. As much as the cost of funding and when the subs will be delivered is still uncertain, the commitment is a promise to the domestic industry that the government of Australia is serious about the goal of strengthening its capabilities.
