SYDNEY – Australia has made its first US$500 million (S$675.6 million) payment to the United States under the AUKUS nuclear submarine pact, signaling its commitment as a security partner ahead of key defense talks in Washington.
Australian Defence Minister Richard Marles, who will meet with newly confirmed US Defence Secretary Pete Hegseth on February 7, emphasized that the payment underscores Australia’s willingness to “pay its way” in the alliance. Their discussions are expected to focus on security in the Indo-Pacific and the growing US military presence in Australia.
Under the AUKUS agreement, Australia will contribute US$3 billion to enhance the US submarine industry, purchase several Virginia-class nuclear-powered submarines, and collaborate with Britain to develop a new AUKUS-class submarine. The US$500 million transfer followed a January 29 call between Marles and Hegseth.
In addition to the submarine deal, Australia has pledged A$18 billion (S$15.3 billion) to upgrade northern defense bases used by US forces and A$8 billion (S$6.8 billion) for a naval base in Western Australia to support US nuclear submarine rotations.
Foreign Minister Penny Wong previously described talks with US Secretary of State Marco Rubio on AUKUS as “very positive,” reinforcing Australia’s commitment to its largest defense project.