The AUKUS submarine deal is a considerable capability boost for Australia. However, the cost will be high, and Australia will have to plan carefully to meet that cost.
This article by Phillip Coorey, writing for Australian Financial Review, makes these points about how Australia is likely to fund the acquisition of AUKUS submarines:
- Annual defence spending will be boosted by an average of 0.15 per cent of GDP annually for 30 years to cover the acquisition
- Future governments will have to fund ongoing costs.
- In the short term, the $9 billion cost will be fully offset by the $6 billion that would have been spent on French Attack Class submarines.
- $50-58 billion medium-term cost will be offset by the $24 billion that would have been required to build the French submarines.
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