How Australia will pay for AUKUS submarines

Summary

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.

References

Recent Runway Posts related to this topic:

• SUBMARINES & AUKUS—01: COLLECTION – TheRunway (airforce.gov.au)

References from the Web :

• MAR 2023  What a $368 billion submarine price tag means for the budget – SMH 
• MAR 2023  Around the halls: AUKUS defines an emerging alliance at sea – Brookings Institute

Source Information:

• Article Source:  Australian Financial Review
• Media Check: AFR - Media Bias/Fact Check (mediabiasfactcheck.com)  
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