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In short:
The federal government has signed a four-year, $2.2 billion deal to repair and maintain Australia's fleet of Collins-class submarines.
Half of the fleet is out of action for repairs, and the contract funds an extension program for the vessels to operate into the 2030s.
What's next?
The deal will employ about 1,600 people in South Australia and Western Australia before the AUKUS submarines are delivered.
The federal government has signed a $2.2 billion, four-year deal with the national submarine builder ASC to ensure the navy's existing Collins submarines are still functioning into the 2030s.
The contract is part of a broader $4 to $5 billion spend on ensuring the serviceability of the Collins submarines, after half of the fleet was found to have significant corrosion damage earlier this year.
HMAS Sheehan, HMAS Farncomb and HMAS Rankin have all been ruled out of action for the rest of 2024, meaning the navy has only three submarines at its disposal.
Minister for Defence Industry Pat Conroy said on Saturday the "sustainment contract" with ASC, formerly Australian Submarine Corporation, represented an investment to "maintain our sovereign capability".
"This is a vote in confidence in the more than 1,600 highly skilled workers across South Australia and Western Australia who have been instrumental in maintaining this critical capability," he said.
Mr Conroy said the contract would enable 700 new jobs in Osborne, South Australia, 400 in Henderson in Western Australia, and would help to grow the workforce needed for the planned AUKUS nuclear-powered submarines.
The funding enables a program announced in June to extend the life of the Collins-class submarines, which will employ 500 people in SA.
Australia is hoping to continue operating the Collins Class submarines well into the 2030s, when they're gradually replaced by second-hand nuclear-powered Virginia class boats purchased from the US under the AUKUS partnership.
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