Australia’s defence budget update lifts the AUKUS submarine program cost to as much as 96 billion over the next decade, up from an earlier 53-63 billion estimate, a roughly 34 percent increase.

Debate surrounds the plan: critics, including some Labor MPs, warn the nuclear fleet heightens vulnerability to nuclear threats and deepens ties with the US, while supporters say it’s vital to shield sea trade from coercion by the Chinese Navy.

Analysts argue that spending now is prudent amid rising Indo-Pacific tensions, though long‑term budgeting depends on future governments.

The higher budget covers more than the submarine itself, adding two years of construction costs and funding work at the Osborne and Henderson naval facilities, according to Defence Minister Richard Marles.

About 200 Australian sailors are already working with US and British partners to build domestic expertise in operating nuclear-powered submarines.

Long‑term defence spending is projected to rise by around 14 billion over the next four years in response to regional tensions and allied pressure, though the long-term budget remains non‑binding and policy‑dependent.

The broader AUKUS package, with US and UK involvement, is often cited at 368 billion over 30 years, encompassing operating costs as the Navy plans to deploy Virginia-class subs from the US within the next decade and introduce a new AUKUS class in the early 2040s.

The updated figures position the total bill for building nuclear-powered submarines and related facilities at up to 96 billion, making AUKUS Australia’s most costly defence initiative and roughly the price of 75 large cruise ships.

Defence Minister Marles says the revised budget reflects the full cost of submarine construction over the decade, noting the plan would still account for about 0.15 percent of Australia’s economy.