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Following a recommendation from Defence, Minister for Defence Industry and Capability Delivery Pat Conroy has confirmed that the Collins Class submarine sustainment has been listed as a product of concern to enable enhanced ministerial oversight of this critical capability.
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The Collins Class sustainment program has faced significant challenges in recent years, particularly as the submarines are required to operate beyond their original design life. To ensure the Collins Class remains a capable and effective asset until its decommissioning, it is critical that these increased sustainment needs are addressed.
As a priority, Defence will develop a remediation plan, paving the way for a Product of Concern Summit in early 2025.
The Albanese government is committed to investing in key capability upgrades, obsolescence management, and fleet sustainment for the Collins Class. This investment will ensure the submarines continue to be a potent and credible force in safeguarding Australia's maritime approaches and sea lanes.
This commitment includes $4–5 billion over the next decade to extend the life of the Collins Class and prevent any capability gaps before Australia transitions to its future fleet of conventionally armed, nuclear-powered submarines.
Minister Conroy said, “By listing Collins Class sustainment as a product of concern, the government is demonstrating its commitment to remediating these challenges and ensuring the Submarine Enterprise, which includes Defence and ASC Pty Ltd, delivers and sustains improved performance.”
Under the previous Coalition government, an efficiency dividend of around $120 million was imposed as part of the Collins Class in-service support contract signed in 2020. This reduction directly impacted the level of sustainment support for the Collins Class submarines.
In June 2024, Defence, under the Albanese government, signed a new four-year sustainment contract with ASC valued at $2.2 billion, with no detrimental efficiency dividend.
Minister Conroy added, “I have convened seven projects of concern summits in just two-and-a-half years as minister. The former Coalition government held only four of these important summits during almost a decade in office.”
Since taking office, the Albanese government has strengthened Defence’s Projects and Products of Concern framework, a vital tool for ensuring the proper stewardship and governance of Australia’s critical Defence capabilities.
The product of concern process has proven effective in addressing challenging projects, benefiting from enhanced ministerial oversight. Product of concern summits provide a platform for Defence and industry to collaborate in the national interest to address and remediate Defence capabilities.
The sustainment of the Collins Class submarine has been a long-standing product of concern, spanning multiple governments from November 2008 to October 2017.
