New Aukus submarines will cost Australia $245 billion by 2055

Prime Minister Anthony Albanese calls it 'the biggest single investment in Australia’s defence capability in our history'

Australian Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak at Point Loma naval base in San Diego, California. PA

A joint US-British plan to equip the Australian navy with nuclear submarines — some of which will be built in Australian and British shipyards — will cost Australia $245 billion by 2055, an assessment by the Australian government has revealed.

The UK will also obtain the new submarine, called the SSN-Aukus.

Australia has no nuclear-powered submarines and the Biden administration has been keen to highlight that the vessel will have nuclear propulsion but will not carry nuclear weapons.

However, defence analysts said the move was a signal to China, which has been accused by several countries in the Pacific region of expanding its naval presence in their territorial waters.

While they are being constructed in Australia, British and American nuclear submarines will patrol Australia's coast as part of a task force called the Submarine Rotational Force-West.

Australian Prime Minister Anthony Albanese has called Aukus “the biggest single investment in Australia’s defence capability in our history”.

The price tag involves the cost of building submarines, as well as associated infrastructure and training, and the programme would create 20,000 jobs in Australia over three decades, according to Australian estimates.

Australian Treasurer Jim Chalmers said the decision was “a game-changing investment” as the government, in the face of mounting pressure on the federal budget and protracted deficits, fielded questions on the price tag.

“Australia can't afford not to do this … it will be worth every cent when it comes to our national security, our national economy,” Mr Chalmers told reporters.

The first Australian submarine built under the programme will be delivered in 2042, and one will be built every three years until the fleet reaches eight.

The vessels will be built in the state of South Australia, while the naval base in Perth will be the home for the new submarine fleet, upgraded at a cost of about $5 billion over a decade and generating 3,000 jobs, documents and statements released by Australia on Tuesday showed.

US nuclear-powered submarines will visit Western Australia more frequently this year, with British submarines making port visits starting in 2026.

Australia will manage all radioactive waste domestically, with the Defence Department choosing a site for the storage of high-level waste this year, defence officials said.

“Yes, it’s an eye-watering price tag, but the alternative is an even heavier cost to Australia’s security and sovereignty down the track,” said Australian Strategic Policy institute executive director Justin Bassi.