WA Works

A $12 billion investment to expand the Henderson Defence Precinct has been welcomed by business, with CCIWA saying it was "significant" and would bolster the broader WA economy. 

Prime Minister Anthony Albanese said on September 14 that the funding was a “significant down payment for the Defence Precinct, with early independent planning and advice indicating the Henderson Precinct will require investment in the order of $25b over the decade”.

Henderson shipyard. Image: Australian Defence Force

It is aimed to provide certainty to industry, which will partner on construction of infrastructure and facilities, and will also kick-start early works while detailed planning and design work is finalised. 

This initial investment will underpin the delivery of: 

• The construction of surface vessels for the Australian Defence Force, starting with Army's Landing Craft and, pending successful consolidation, the domestic build element of Australia's future general purpose frigates; 
• Facilities to support the sustainment of Australia's surface combatant vessels; 
• Contingency docking capabilities for Australia's future conventionally-armed, nuclear­ powered submarine fleet from the early 2030s; and 
• Depot-level maintenance, including graving docks. 

The Government said progressing these capabilities will be critical for Australia's delivery of the AUKUS pathway and ensure Australia is ready to receive its first Virginia class submarine in the early 2030s. 

Building on $127m commitment

It builds on an initial commitment of $127 million to progress planning for the Defence Precinct. 

“Additional funding requirements will be considered once detailed design works are finalised and as delivery models, including the opportunity for private financing models, are determined,” the Federal Government said. 

It said it would continue to work on transition arrangements in partnership with the WA Government “for current and future users of Henderson”. 

ASC's submarine maintenance facility at the AMC, south of Perth.

CCIWA Chief Economist Aaron Morey said it was a significant announcement for Western Australia’s defence industry, but also for the broader WA economy. 

“The expanded Henderson precinct will not only create thousands of direct jobs, it will boost opportunities for local businesses right throughout the supply chain and service sectors,” he said. 

“Defence is a key part of WA’s economic diversification plan and it’s great to see the Commonwealth backing WA’s huge potential to be a major player in this space. 

“WA’s defence businesses are confident the AUKUS deal will further advance the opportunities for growth in the industry.” 

10,000 jobs, opportunities for industry

Prime Minister Anthony Albanese said the “world class precinct will create more than 10,000 local jobs and strong opportunities for local industry”. 

Deputy Prime Minister and Defence Minister Richard Marles said Henderson will be critical to Australia’s shipbuilding and sustainment industry while supporting continuous naval shipbuilding in WA and Australia’s nuclear-powered submarine pathway. 

This is a complimentary WA Works article. For more of this content, including updates on major projects and analysis on supply chains and project issues, subscribe to WA Works. 

A subscription includes any-time access to our Major WA Projects List – the most comprehensive and up-to-date list of major projects across the State.