The Labor government will invest A12 billion (US$7.8 billion) to establish a Defence Precinct in Henderson, Western Australia, aimed at supporting continuous naval shipbuilding and fulfilling AUKUS partnership obligations, reports Saint Petersburg PortNews.

The funding is an initial contribution toward a projected A25 billion investment over the next decade. The precinct is expected to generate 10,000 direct jobs over 20 years and offer growth opportunities for small and medium-sized businesses in the region.

The investment will fund infrastructure and facilities for surface vessel construction, beginning with Army Landing Craft and potentially future frigates. It will also support surface combatant sustainment, contingency docking for nuclear-powered submarines from the early 2030s, and depot-level maintenance including graving docks.

Prime Minister Anthony Albanese said the project reflects record defence funding and will create thousands of local jobs. Deputy Prime Minister Richard Marles added that Henderson will be vital to Australia's shipbuilding and submarine sustainment efforts.

Defence Industry Minister Pat Conroy said the initiative is part of the government's strategy to build a sovereign defence industry and promote domestic manufacturing. The project will be delivered in partnership with the Western Australian Government under the Commonwealth-State Cooperation Agreement.

The government previously committed A127 million for planning work at Henderson. Further funding will be considered following detailed design and evaluation of delivery models, including private financing.

The Australian Defence Force comprises the Royal Australian Navy, Australian Army and Royal Australian Air Force. AUKUS is a trilateral security pact between Australia, the United Kingdom and the United States, focused on defence cooperation and nuclear submarine development.