Senator the Hon Katy Gallagher

The Albanese Government has signed a new four-year sustainment contract with ASC Pty Ltd, securing South Australia and Western Australia as the centres of excellence for the sustainment of the Collins class submarines.

This new contract will provide work valued at over $2.2 billion, directly ensuring job security for more than 1100 highly skilled workers at Osborne, South Australia and Henderson, Western Australia. It is part of the Albanese Government’s $4 to $5 billion commitment to keeping the Collins class submarines as a potent strike and deterrence capability.

Significantly, this contract follows the recently announced life-of-type extension (LOTE) program for the Collins class submarines, which will commence with HMAS Farncomb in 2026 at Osborne, South Australia.

These decisions demonstrate the Albanese Government’s commitment to investing in Australian industry and workers, ensuring we maintain Australia’s sovereign capability in naval shipbuilding and sustainment.

Australian industry will have significant opportunities to maintain one of the most capable conventionally‑powered submarines in the world, with around 90 per cent of the Collins class’ platform sustainment budget being spent in Australia.

The new contract directly supports employment for more than 700 people in South Australia and 400 people in Western Australia. The LOTE program provides work for about 500 people in South Australia.

Quotes attributable to Minister for Defence Industry, Pat Conroy:

“The Albanese Government is investing in Australian industry to maintain our sovereign capability in sustaining one of the most capable conventionally-powered submarines in the world.

“This is a vote in confidence in the more than 1600 highly skilled workers across South Australia and Western Australia who have been instrumental in maintaining this critical capability.

“This new contract further ensures these workers have certainty in Australia’s national naval shipbuilding and sustainment enterprise, and helps to grow the workforce required to build and sustain Australia’s future nuclear-powered submarines.”

Quotes attributable to Minister for Finance, Katy Gallagher:

“ASC is Australia’s sovereign submarine sustainment partner and platform system integrator with experience in submarine build, testing, commissioning and certification, including physical integration of US combat systems.

“Using its unrivalled knowledge of Australian submarine operating conditions, with an existing workforce and supply chain and leading-edge technology with ongoing research and development, ASC will deliver safe, high-quality sustainment services to the Royal Australian Navy.”