The federal government is rejecting suggestions $12 billion of new defence spending has been announced to appease Donald Trump ahead of the Prime Minister's visit to the US.

Henderson

The Australian government has announced a $12 billion initial investment to expand the Henderson shipyard near Perth, with the total project estimated to cost $25 billion over a decade. The upgraded facility will be used for building surface vessels and docking nuclear-powered Orca submarines, and will also provide maintenance access for the US fleet due to its strategic location.

This investment is part of a larger increase in defence spending, with an additional $57 billion brought forward. The announcement comes as the Prime Minister prepares for meetings at the UN General Assembly and a new defence deal with Papua New Guinea. While the US has called for higher Australian defence spending, the government maintains that its actions are driven by national interests.

Albanese boosts defence budget before Trump visit

A boatload of cash arriving before a plane to the United States. The Federal Government today announcing a $12 billion down payment to expand the Henderson shipyard near Perth. The project's estimated to cost $25 billion over a decade. Today's announcement is an announcement for Australia. The facility will be used for building surface vessels and docking for the nuclear-powered Orca submarines. America's fleet will also have access to the site for maintenance. Given its geo-strategic location. Australia's ability to contribute to defending our own interests in the Indian Ocean as well as those of our partners and allies is vital and Henderson will play a critical role in doing that. The initial $12 billion is on top of an extra $57 billion brought forward for defence. It really is a dramatic increase in Australia's defence spending and it most definitely moves the needle. And where does it come from is the big question. Running Australia is more expensive than it used to be. Defence spending still not at the level the US is demanding of Australia. The Pentagon's reviewing whether Orcas fits President Trump's America First agenda. The Washington Post reporting Secretary of State Marco Rubio quietly reassured Richard Miles it won't sink. We welcome the investment but it's too little too late. We need readiness not just rhetoric. This is a $12 billion announceable that Anthony Albanese wants to tie a bow around and take to Donald Trump. The Prime Minister's heading to New York next weekend for the UN General Assembly and will be hoping to secure his first in-person meeting with President Trump. Domestically though he's careful not to appear as though he's bowing to pressure from the US. We don't respond to the needs of others, we respond to our own needs. And the regions. The PM's heading to Papua New Guinea tomorrow to celebrate 50 years of independence and unveil a new defence deal. Chloe Boris, 10 News.

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London

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Breakdown