Hunter class
The Albanese government has announced a major overhaul of the navy’s surface combatant fleet, saying it would more than double the number of warships, including the intention to acquire six new large optionally crewed surface vessels (LOSVs) that can be operated remotely by a support vessel during wartime.
The plan will mean Australia reduces its order of Hunter-class frigates from nine to six. The new surface combatant fleet will also consist of three upgraded Hobart-class destroyers, 11 new general-purpose frigates to progressively replace the six remaining Anzac-class frigates, the six new LOSVs and 25 minor war vessels.
The announcement came after the government received independent analysis, led by the retired US navy Vice-Admiral William Hilarides, on changes needed to the navy fleet in parallel with the Aukus nuclear-powered submarine plan. The independent review of the “size, structure and composition of Navy’s surface combatant fleet” was handed to the government last year.
The analysis found that the current and planned surface combatant fleet was “not appropriate for the strategic environment we face, noting it is the oldest fleet Navy has operated in its history”.
It argued that Australia needed a surface fleet with “greater capability in integrated air and missile defence, multi-domain strike and undersea warfare”, echoing calls from the defence strategic review last year which found that the “plan for the surface combatant fleet is not fit for purpose”.
The independent analysis urged “immediate implementation” of the shake-up to the fleet, arguing that “any delay will exacerbate the risk” to Australia’s security.
$54bn total bill
The government announced an additional $1.7bn over forward estimates and $11.1bn over the next decade for accelerated delivery of the surface combatant fleet and to expand Australia’s shipbuilding industry
, bringing the total cost of the plan over the next 10 years to $54bn.
The government says this investment will mean the defence spend in the early 2030s will reach 2.4% of GDP, compared with the 2.1% it was planned to be when the government came to office.
“This decision we are making right now sees a significant increase in defence spending in this country and it is needed given the complexity of the strategic circumstances that our country faces,” said Richard Marles, the defence minister and deputy prime minister.
The independent review also supports the defence strategic review and the government’s commitment to continuous naval shipbuilding in Australia, calling it “an essential foundation for sovereign capability and independence”.
The chief of navy, Admiral Mark Hammond, called the announcement a “welcome intervention” and a “shot in the arm”, saying it was the “most significant investment in the surface combatant fleet” in the navy’s history.
The LOSVs are now being developed by the US, with the Australian government in talks with Washington and planning to be a “fast follower” once the ships were operational. Australia intends to build the six LOSVs in Western Australia.
A model for the general-purpose frigates to be acquired has not been settled on, with models from the US, South Korea, Germany and Spain under consideration.