The Australian Government is committed to establishing a consolidated Commonwealth-owned Defence precinct in Henderson, Western Australia (WA).

The precinct is a critical next step in delivering continuous naval shipbuilding and Australia’s AUKUS commitments. It will contribute to regional security as set out in the 2024 Naval Shipbuilding and Sustainment Plan.

The precinct will enhance Australia's self-reliance by constructing and sustaining larger and more complex surface fleet vessels.

On 16 October 2024, the Australian Government announced an initial commitment of $127 million over 3 years to progress the planning for the precinct. 

On this date, the Australian Government also signed a Cooperation Agreement with the Western Australian Government to progress the precinct. Implementation of the agreement is underway and demonstrates the mutual commitment to collaboration over the coming decade and beyond.

Establishing the precinct will diversify and directly support the WA economy. It will boost industries in the region, including in engineering, logistics and supply chains. Activities across Henderson and HMAS Stirling will create more than 10,000 jobs.

This will help drive growth in the tertiary and technical education sector, creating the pipeline needed to sustain workforce flow over the next 2 decades or more.

Project details

A further investment of $12 billion will kick-start early works at the precinct. This provides certainty to industry, who will partner on the construction of infrastructure and facilities whilst more detailed planning and design work is being finalised.

Following the government's October 2024 announcement, this additional funding has enabled the delivery of key Australian Defence Force (ADF) programs to commence.

This is a significant down payment, with early independent planning and advice indicating the precinct will require infrastructure investment in the order of $25 billion over the decade.

This builds on the previously announced $8 billion investment in upgrades to HMAS Stirling through to the mid-2030s. It also provides an operating base for Australia’s sovereign conventionally armed, nuclear-powered submarines from the early 2030s and supports Submarine Rotational Force – West from 2027.

Infrastructure and facilities

Planning, design and feasibility studies will confirm the boundaries and exact infrastructure and facilities required for the precinct. Facilities to be established include:

• contingency docking capability and supporting infrastructure and facilities for nuclear-powered submarines
• depot-level maintenance facilities for nuclear-powered submarines, including graving docks
• shipbuilding facilities to support the construction of larger more complex vessels
• a modern surface fleet sustainment yard to support the sustainment of Australia's surface combatant vessels
• a large-vessel docking capability.

Along with Osborne Naval Shipyard in SA, the precinct will be crucial in the Australian Government’s continuous shipbuilding capability. It will construct dozens of vessels for the ADF, including 18 Landing Craft Medium and 8 Landing Craft Heavy over the next decade.

Consultation and timing

Establishment of Henderson Defence Precinct is being undertaken through a phased approach, from 2024 and continuing over the coming decades.

Since October 2024, Defence and the WA Government have commenced consultation, including initial discussions with leaseholders, local industry and the commercial sector, about the future of the shipyard. This engagement provided considerations for planning, including the importance of ensuring current activities can continue as the project progresses.

Progress has been made on communication and stakeholder engagement with briefings with industry and the community occurring in 2025, and more planned. These include:

• 30 April 2025: City of Rockingham Naval and Defence Industry Conference
• 23 July 2025: Security and Estate Group Defence Estate Capital and Sustainment Works Program industry briefing
• 22 August 2025: Australian Defence Magazine Western Australia Defence Summit, Perth, WA
• 16-18 September 2025: Australian Submarine Agency Community Information Sessions.

Through the release of a Design Services Consultancy Request for Tender and an invitation for industry to register for Market Sounding activities, progress has been made on:

• critical planning activities
• further environmental studies
• initial investigation into potential commercial and delivery models.

All construction activities will be undertaken in accordance with legislative and regulatory requirements. Environmental studies are underway to determine any environmental impacts and mitigation strategies.

Initial planning for enabling works has begun, which include design for breakwater, dredging and planning of upgrades to essential services like power supply.

Industry support

Following a competitive procurement process, Defence will select an industry partner to provide specialist infrastructure design advice and work with a range of stakeholders to create the Henderson Defence Precinct high-level master plan.

The plan will provide an initial layout for the Precinct, covering current and future development and growth that will need to occur to establish it.

This will involve environmental studies and site investigations, which will enable preliminary and detailed design of the precinct to get construction underway.

In parallel, market sounding activities are gauging industry’s interest, capacity and ability to design, invest and operate the precinct across a range of sectors. This will result in further development of commercial and delivery models for the precinct.

Collaboration

Ongoing collaboration is central to delivering this world-class naval shipbuilding and sustainment enterprise. Local and regional industry are critical to its success.

Defence and the Australian Submarine Agency (ASA) are working closely with the WA and local governments to:

• transport people and materials in a way that minimises congestion and delivers on upgrades to local roads
• minimise the impact of operations on the local communities of Rockingham, Henderson and nearby areas.

Establishing the precinct will generate socio-economic benefits in the communities that will grow to support this major national endeavour: housing, schools, services and supporting infrastructure such as transport and utilities will all be needed.

Henderson Defence Precinct will be supported by the Western Australian Government’s Western Trade Coast Infrastructure Strategy, which will:

• provide industrial uplift and infrastructure to support Defence’s growing shipbuilding and sustainment needs in Henderson
• help address transport needs, traffic congestion, the availability of industrial land, ageing infrastructure and constraints to supply chain connectivity and continuity.

The precinct will be supported by consolidated industry through the Strategic Shipbuilding Agreement.

Strategic Shipbuilding Agreement

On 28 August 2025, the Strategic Shipbuilding Agreement (SSA) was executed by Defence and Austal Defence Shipbuilding Australia Pty Ltd (Austal Defence Australia). As a sovereign subsidiary under Austal, this establishes Austal Defence Australia as the Strategic Shipbuilder for Henderson, Western Australia.

This strategic partnership will provide industry with greater certainty and help secure long-term skilled jobs, infrastructure investment and productivity in the shipbuilding industrial base.

The SSA aims to accelerate delivery of capability to the ADF by utilising streamlined contracting processes for contracts awarded to Austal Defence Australia, and bolstering the sovereign industrial base.

The SSA with Austal Defence Australia will:

• incentivise investment in the industrial capability of the Henderson Defence Precinct
• enable continuous shipbuilding capability, reducing time delays
• provide the broader supply chain, subcontractors and investors with greater confidence in their long-term partnership with Defence
• enable long-term workforce planning
• foster enduring community and regional engagement.

Background

At Henderson shipyard, there are a range of Defence and commercial activities with separate arrangements and processes. Much of the land is owned by the Western Australian Government and managed through leases with multiple entities. A common user facility at the site supports the repair, maintenance and construction of naval and commercial vessels.

The 2023 Defence Strategic Review recognised Henderson’s critical role in delivering continuous naval shipbuilding and sustainment of Australia’s surface fleet in WA and in supporting the nuclear-powered submarine pathway.

The review highlighted that challenges around the workforce, the layout and development of the Henderson Precinct needed to be addressed. The relationship between infrastructure, shipbuilders, contractors and workforce providers also needed to be addressed. Much of the land is owned by the Western Australian Government and managed through leases with multiple entities. A common user facility at the site supports the repair, maintenance and construction of naval and commercial vessels. It also highlighted there is not enough work to sustain the number of shipbuilders located at Henderson.

The Independent Analysis into Navy's Surface Combatant Fleet reiterated the need for a larger, more lethal surface combatant fleet, outlining this should be complemented by a conventionally armed nuclear-powered submarine fleet.

Subsequently, the 2024 National Defence Strategy determined Defence must respond to the review’s recommendation and urgently address these challenges.