Fact Check: Australia's Defence Minister handed over $800 million to the US in 2023 as part of a plan to bolster the American submarine industry.

Fact Check: "Australia's Defence Minister handed over $800 million to the US in 2023 as part of a plan to bolster the American submarine industry."

What We Know

In February 2025, the Australian Government announced a significant investment of A$800 million (approximately US$500 million) into the United States' submarine industrial base. This investment was part of the AUKUS partnership, which aims to enhance Australia's defense capabilities, particularly in nuclear-powered submarines. The announcement was made during a meeting between Australia's Defence Minister Richard Marles and US Secretary of Defense Pete Hegseth, marking the first of several planned payments to support the US submarine production efforts (US Studies Centre, The Mandarin).

Analysis

The claim that Australia handed over $800 million to the US in 2023 is substantiated by multiple credible sources. The investment is explicitly linked to the AUKUS submarine program, which has been a focal point of Australia's defense strategy since its announcement. The funds are intended to bolster the US submarine industry, thereby ensuring that Australia can effectively integrate into the broader defense framework established by the AUKUS agreement (US Studies Centre, Sky News).

The reliability of the sources is high, as they include official statements from government officials and reputable news outlets. The US Studies Centre is a well-regarded think tank focused on US-Australia relations, while The Mandarin is a respected publication that covers public policy and governance in Australia. Additionally, the direct quotes from Defence Minister Richard Marles in the Sky News interview provide first-hand confirmation of the investment and its strategic purpose (Sky News, Reuters).

Conclusion

The claim that Australia's Defence Minister handed over $800 million to the US in 2023 as part of a plan to bolster the American submarine industry is True. The evidence from multiple credible sources confirms that this investment is a strategic component of the AUKUS partnership, aimed at enhancing Australia's defense capabilities through collaboration with the US.

Sources

1. Rising to the challenge: Delivering Australia's nuclear-powered ...
2. Australia confident US will proceed with Biden-era submarine pact after ...
3. Television Interview, Sky News | Defence Ministers
4. Australia – Wikipedia
5. Trump backs AUKUS as Australia tips $800m into US coffers
6. Australia to go all in for AUKUS despite US review