The Australian government has committed $11 billion to extend the operational life of its six Collins-class submarines, bridging a capability gap until the AUKUS submarines are delivered.Defence Minister Richard Marles announced the upgrades, which will extend the submarines’ service by a decade into the early 2040s.

HMAS Farncomb, initially set to retire at the end of May, will undergo an extensive engineering assessment and is unlikely to return to service for at least two years.Previous plans to make the Collins-class compatible with a cancelled French submarine fleet have been abandoned.

Instead, the Navy and ASC will adopt a 'conditions-based sustainment approach', maintaining and restoring core components while prioritising critical weapons and combat systems.

The government remains confident that the Virginia-class AUKUS submarines are on schedule despite concerns over US and UK industrial capacity, having already contributed over $2 billion to support their production pipelines.

Marles also highlighted reforms in Defence’s bureaucracy, the creation of a Defence Delivery Agency to improve project management, and record-high military recruitment levels.

The announcement aligns with the Albanese government’s broader plan to invest an additional $14 billion in defence over four years, rising to $53 billion over the next decade, partially funded by selling 67 military sites.