The headline total cost of the 32-year plan, at between $268 billion and $368 billion, dwarfs the size of most spending programs or major infrastructure projects.
Treasurer Jim Chalmers will have to find up to $31 billion in budget savings over the coming decade to offset the medium-term cost of the government’s planned fleet of nuclear-powered submarines while also making space for the surging expense of other programs.
The remaining $3 billion, Deputy Prime Minister Richard Marles confirmed on Tuesday, will come out of the Defence Department’s long-term investment program.The government estimates the project will cost between $50 billion and $58 billion out to 2032-33. Of that, it has saved $24 billion by not going ahead with the French submarines .
Annual health costs are expected to increase by 58 per cent with the cumulative bill for Medicare and the Pharmaceutical Benefits Scheme for the next decade being $660 billion. Economist Chris Richardson, a respected budget watcher, said the submarine project just added to the issues facing the budget.He said defence, along with services such as aged and health care, would all put pressure on the government to find both further savings and new revenue sources.“The cost of running Australia has gone up. We know the social costs have increased, and we’re getting on top of that, and we also now know the cost of protecting it has gone up.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New fleet of eight nuclear submarines to be built in Australia in $368 billion dealThe long-term fleet of eight submarines will be made in Australia and be fitted with vertical launch systems to fire cruise missiles.
Read more »
New fleet of eight nuclear submarines to be built in Australia in $368 billion dealBreaking: Australia will build a new fleet of eight nuclear-powered submarines in Adelaide that will cost up to $368 billion by 2055.
Read more »
New fleet of eight nuclear submarines to be built in Australia in $368 billion dealAustralia will build a new fleet of eight nuclear-powered submarines in Adelaide to begin service in the 2040s under a mammoth transformation in national defence that will cost up to $368 billion by 2055.
Read more »
Eight submarines, three decades, up to $368 billion: Australia’s historic AUKUS plan at a glanceAustralia has now outlined its plan to acquire nuclear-powered submarines under the AUKUS agreement with Britain and the United States. This is how it will be done.
Read more »
Eight submarines, three decades, up to $368 billion: Australia’s historic AUKUS plan at a glanceAfter 18 months, Australia has outlined how it is going to acquire nuclear-powered submarines under the AUKUS agreement with the United Kingdom and the United States.
Read more »
Eight submarines, three decades, up to $368 billion: Australia’s historic AUKUS plan at a glancePrime Minister Anthony Albanese, US President Joe Biden and British Prime Minister Rishi Sunak on Tuesday announced Australia will build a fleet of eight nuclear-powered submarines in Adelaide. This is how Australia plans to do it:
Read more »