Defence ‘not well-placed’ to extend ageing submarines
Defense is “not well placed” to show it can extend the life of Australia’s aging submarine fleet, potentially leaving the country facing a significant capability gap after cost overruns and delays, a damning audit has found.
Australia’s National Audit Office on Friday published a report on a “type life extension” plan for the navy’s Collins-class submarines, designed to squeeze an extra decade of service out of them before the arrival of nuclear-powered boats.
Designed in the 1980s, the Collins was due to begin withdrawing from service in 2026, but the cancellation of the $90 billion French submarine program for the AUKUS agreement means Australia will not be able to acquire new submarines until the early 2030s if the project goes as planned.
The auditor general found that Defence’s planning and implementation of the Collins-class expansion was not managed in a manner comparable to its “complexity, risk profile and strategic intent”.
“As a result, significantly more expenses were incurred, delays accumulated, and talent risks persisted,” the report said. The statement is included.
“This means that, as of May 2026, Defense is not well placed to demonstrate that the project will achieve its intended capability outcomes or represent value for money.”
The report found has changed 53 times since February 2022, when the system and detail design contract was signed, reaching more than five times its original value, an increase of $688 million.
As of May, Defense was not on track to install planned upgrades to the first submarine in June of this year as planned.
On Tuesday, Defense changed the direction of the project after 10 years of planning and design activity, proposing a different expansion strategy.
Defense Minister Richard Marles has announced that the government is narrowing the scope of its sustainability approach to submarines, which currently costs $11 billion.
Decades-old engines and engines on all six boats will not be replaced.
Instead, the plan will evaluate each submarine and fix what is needed in the hope that the boats, which have a lifespan of about 28 years, will last into the late 2030s and early 2040s.
The defense accepted all five recommendations made by the auditor general, including that all risks and implementation approaches be re-evaluated following significant changes.
“Defence’s primary focus has been to preserve continuity of capability and avoid a capability gap that in practice limits the scope for comprehensive re-evaluation of underlying assumptions, risks, and alternative options,” the response said. The statement is included.
The government has claimed the sustainability change will not affect plans to give every submarine an extra 10 years of life, but safety experts have warned this is unlikely.
Australia has been promised three Virginia-class nuclear submarines in the early 2030s under the AUKUS partnership with the US and UK.
