Australian taxpayers are set to pay an additional $11bn to extend the operational lifespan of the ageing Collins-class submarines by another decade, bridging the capability gap before the first Aukus nuclear-powered vessels are scheduled to arrive in 2032.
Life Extension for Six Submarines
Originally designed for a 30-year working life, the six Adelaide-built submarines have already been in service for between 23 and 30 years. The Albanese government announced in 2024 that it would undertake "life of type extension" works to keep the Collins-class boats operational for an extra 10 years. Defence Minister Richard Marles confirmed on Tuesday that the first such works would begin this month on the oldest submarine, HMAS Farncomb, which had been due for retirement this year but is now expected to operate until around 2036.
Shift in Strategy
The replacement of diesel-electric operating infrastructure on the Collins-class vessels will only proceed if necessary to extend their lives, marking a change from previous plans designed to bridge capability gaps with the now-abandoned Attack-class program. If successful, extending the vessels' operational lives into the late 2040s would cover the period until secondhand US Virginia-class nuclear submarines arrive under the Aukus agreement with Washington and London.
The first Virginia-class submarine is due in Australia in 2032, with another arriving every four years, before the bespoke Australian-built model starts coming online in 2042. "The program will reduce engineering risk by sustaining existing systems where appropriate while continuing to upgrade critical capabilities, including weapons and combat systems," Marles said in a speech to the Lowy Institute.
Cost Overruns and Maintenance Challenges
The new $11bn price tag far exceeds the original $4bn to $6bn estimate by the former Coalition government. Government-owned shipbuilder ASC will be responsible for delivering the upgrades in Adelaide. Of the six submarines, two are typically out of the water for scheduled maintenance at any given time. In November 2024, it was revealed that five of the submarines were unavailable. The government now expects an average of three submarines to be in maintenance at any time, with the other three in the custody of the Royal Australian Navy, including two available for operational deployment.
Labor has blamed shifting plans by successive governments for the churn in the submarine program. The Rudd government first planned to extend the Collins-class lives, followed by the Abbott government negotiating a possible deal with Japan. The Turnbull government eventually selected France's Naval Group to build new subs in 2016, a plan scrapped by the Morrison government when the Aukus agreement was signed with Joe Biden and Rishi Sunak in 2021.
Government Commitment
Marles said the latest announcement would accelerate sustainment work on the fleet's youngest models, starting with HMAS Rankin. "These decisions reaffirm the Albanese government's commitment to keeping the Collins class a potent and highly capable strike and deterrent capability today, and for years to come," he said. "Extending the life of all six Collins class submarines is critical to maintaining that edge as we transition the navy from conventional to nuclear-powered submarines."
Last week's federal budget included plans for Australia to spend an extra $53bn on defence over the next decade, including $14bn more before the end of the decade. Amid a rapidly shifting geopolitical landscape, Labor is spending at least $368bn on delivering Aukus. "Aukus is now properly funded and its milestones are on track," Marles said on Tuesday. "Developing our nuclear-powered submarine capability alone represents the biggest leap in our military capability in more than a century and the largest industrial project in our nation's history."
Political Reactions
Shadow Defence Minister James Paterson accused Marles of avoiding scrutiny over the changes to the Collins-class vessels and other Australian Defence Force matters. "If Richard Marles put as much energy into persuading his expenditure review committee colleagues as he does attacking the previous government, maybe the ADF wouldn't have to absorb as many cuts to capability as it has on his watch," Paterson said.
