AUKUS plan revealed: Australia to spend $368 billion on nuclear submarine program

Australia will spend more than $368 billion on a landmark nuclear submarine program with the United States, while China retaliated with a chilling warning.

Prime Minister Anthony Albanese announced the huge budget when he unveiled the AUKUS plan with US President Joe Biden and UK Prime Minister Rishi Sunak in San Diego on Tuesday.

Australia will command a fleet of eight nuclear-powered submarines within the next three decades as part of an accelerated plan to deter Chinese aggression in the Indo-Pacific.

The announcement came as Chinese President Xi Jinping promised a swift retaliation to the deal at the National People’s Congress on Monday.

Xi Jinping said his country would strengthen its army to create a “great wall of steel,” labeled security “the basis of development” and accused Western colonial powers of inflicting “national humiliation.”

“We must fully promote the modernization of national defense and armed forces and build the people’s armed forces into a great steel wall that effectively protects national sovereignty, security and development interests,” he said.

Canberra will procure three US Virginia-class nuclear submarines from about 2033 as a stopgap before a new SSN-AUKUS-class hybrid ship arrives in Australian waters ten years later as part of the trilateral alliance with the UK and US.

The cost to taxpayers will be a staggering $268 to $368 billion over the next three decades.

The plan will cut $9 billion from the budget over the next four years and $50-58 billion over the next ten years.

The annual cost will then be about 0.15 percent of GDP until the mid-1950s, but the exact number is cautioned because of the unpredictability of inflation three decades from now.

Every three years, a US submarine will roll off the production line for Australia before the new AUKUS class will be built at a similar rate from 2042 onwards.

Australia’s current Collins-class submarines will be retired by the late 2030s.

The plan ensures that Australia will always have a base fleet of six submarines and the option to purchase an additional two Virginia-class submarines if delays occur.

The UK will build and operate the first AUKUS submarine from the late 2030s, acquiring an estimated eight to 12 of the same type.

Four US nuclear-powered submarines and a British ship will begin orbiting Western Australian naval bases from 2027 to boost Australia’s ability to operate its own ships in the 2030s and 2040s.

From next year there will also be more visits from US and UK nuclear submarines.

Shipbuilders in Adelaide and Western Australia will join those in America and Britain to help build the new submarines.