Cooperation agreement between the Commonwealth of Australia and the State of Western Australia to deliver and sustain Australia's future Defence capabilities

INTRODUCTION
1. This Cooperation Agreement (CA) is made between the Commonwealth of Australia (the Commonwealth), as represented by the Deputy Prime Minister and Minister for Defence, and the State of Western Australia (the State), as represented by the Premier of Western Australia.
2. This CA sets out the respective commitments of the Commonwealth and the State (the Parties) to provide for the delivery and sustainment of Australia’s future defence capabilities and the realisation of enduring continuous naval shipbuilding in Western Australia.
 

BACKGROUND
3. Western Australia is making a critical contribution to Australian defence capability, plays a vital strategic role in Australia’s national defence, and is positioning itself as a global leader in the defence industry.
4. Western Australia is fundamental to Australia’s naval shipbuilding and submarine capabilities, including the successful implementation of the AUKUS nuclear-powered submarine pathway and continuous naval shipbuilding.
5. The announcement by the Commonwealth, in coordination with the United Kingdom (UK) and the United States (US), of the optimal pathway for Australia’s acquisition of conventionally armed, nuclear-powered submarines is historic.
6. Western Australia will continue to be the operational home of Australia’s submarine force, including Australia’s future conventionally armed, nuclear-powered submarines.
7. In close cooperation with the State, the Commonwealth intends to deliver and support key naval capabilities and conduct requisite maintenance – including contingency and depot-level maintenance – for Australia’s future conventionally armed, nuclear-powered submarines in Western Australia as part of its commitment to continuous naval shipbuilding.
8. The delivery of these priorities in Western Australia will make an important contribution to powering and diversifying Western Australia’s economy and create transformational opportunities for local businesses and workers.
9. Realising continuous naval shipbuilding and the successful delivery and sustainment of critical defence capabilities in Western Australia requires sustained collaboration, coordination and partnership between the Parties.
10. State and Commonwealth cooperation and coordination on infrastructure planning and programs has the potential to enhance efficiencies and create opportunities to achieve mutually-beneficial outcomes and wider benefits for industry, communities and government.
11. Work between the Parties to realise the benefits from these generational investments has already commenced:
a. The Commonwealth Government has already committed to invest up to $8 billion in infrastructure to enable Submarine Rotational Force-West from 2027 and to operate Australia’s own Virginia class conventionally armed, nuclear-powered submarines from the early 2030s, creating around 3,000 direct jobs, in addition to investments in the State’s industrial base and workers.

b. Western Australia will be home to the rotational presence of UK and US conventionally armed, nuclear-powered submarines from as early as 2027, creating an additional 500 direct jobs between 2027 and 2032.
c. The Commonwealth will deliver contingency and depot-level maintenance of Australia’s future conventionally armed, nuclear-powered submarines in Western Australia, supporting around 3,000 jobs.
d. The Commonwealth has committed to continuous naval shipbuilding in Western Australia, including construction of Army landing craft, general purpose frigates and other vessels.
e. Western Australian education institutions are playing a key role in the development of skilling programs to support workforce growth.
f. The Commonwealth and State have commenced identifying areas for potential cooperation, collaboration and coordination across Defence and Westport programs to achieve mutually-beneficial outcomes.
 

PURPOSE
12. The purpose of this CA is to set out how the Parties propose to work together to support the delivery of Australia’s naval shipbuilding and submarine capabilities, as well as enabling activities, in Western Australia.
13. This CA is not intended to set out each Party’s obligations to specific funding and delivery arrangements that underpin its initiatives. These will be the subject of future agreements between the Parties.
 

PRINCIPLES
14. As part of the CA, the Parties undertake to work together and be guided by the following principles:
a. Engage in good faith negotiations and make best efforts to reach mutually-beneficial outcomes in a timely manner.
b. Progress the outcomes necessary to support the delivery and sustainment of critical defence capabilities in Western Australia, including Australia’s future naval and submarine capabilities.
c. Ensure that activities and initiatives progressed to achieve these outcomes are aligned with and not detrimental to the State’s delivery of essential services, infrastructure that supports local industry, or the viability of other priority projects such as Westport.
d. Minimise disruption to local industry, business, workforce and community alike in the delivery of the initiatives under this CA.
e. Maximise opportunities to cooperate, collaborate and coordinate on the planning, implementation and delivery of enabling programs, infrastructure and works to support the efficient and mutually-beneficial delivery of State and Commonwealth priorities.

INITIATIVES
15. Under the auspices of this CA, and consistent with its principles and shared commitments, the Parties undertake to work together to realise the following mutually-beneficial initiatives in an efficient, effective, economical and ethical manner:
a. Establishment of a Commonwealth Defence Precinct (the Defence Precinct), with associated capabilities and infrastructure, at the Australian Marine Complex in Henderson to support Australia’s naval shipbuilding and submarine requirements.
b. Delivery of contingency and depot-level maintenance capabilities for Australia’s conventionally armed, nuclear-powered submarines at the Defence Precinct, including necessary infrastructure, in accordance with domestic processes and regulatory requirements.
c. Establishment of a dedicated Commonwealth-State group to coordinate and collaborate on initiatives to support the development and skilling of the workforce required for the delivery and sustainment of critical defence capabilities in Western Australia.
d. Establishment of new State-owned Common User Facilities, infrastructure and capabilities that can support current and future non-defence industries, activities, and projects, having regard to whole-of-life benefits across these programs.
e. Identification of opportunities for the Commonwealth to acquire land, seabed, assets, and capabilities necessary for the establishment of the Defence Precinct on terms that achieve value for money outcomes for both of the Parties, including through opportunities to exchange land, assets and/or infrastructure.
f. Minimisation of disruption to, and impost on, commercial users of the Australian Marine Complex during the establishment of, and transition to, the Defence Precinct.
g. Shared identification of options for coordinated and collaborative delivery of works that are directly required to support the mutually-beneficial initiatives in this CA such as environmental modelling and dredging works.
h. Collaboration, coordination and timely information sharing between the Parties on the planning and  delivery of enabling works and infrastructure development projects on the Western Trade Coast and within Cockburn Sound to achieve mutually-beneficial outcomes.
i. Exploration of shared approaches to broader enablers to the successful delivery of the priorities in this CA, across areas such as infrastructure, transport, utilities, materials supply, workforce, industry development, accommodation supply, and education and training.
j. Effective engagement with local and State-wide communities to build and enhance social licence with respect to Western Australia’s key role in Australia’s nuclear-powered submarine program.
k. Effective engagement with the community, including Traditional Owners, to share information with respect to the broader suite of proposed land and sea works across the Western Trade Coast to enable Commonwealth and State priorities.
l. Close coordination on, and support for, the Commonwealth’s effective implementation of the highest nuclear safety standards and protocols for Australia’s nuclear-powered submarine program.

RESPONSIBILITIES
16. The Parties have identified the following responsibilities to guide their good-faith negotiations and realisation of the mutually-beneficial initiatives outlined in this CA:
17. The Commonwealth intends to:
a. Develop and operate the Defence Precinct at the Australian Marine Complex to support the successful implementation of the AUKUS nuclear-powered submarine pathway and continuous naval shipbuilding in Western Australia.
b. Deliver contingency and depot-level maintenance of Australia’s future conventionally armed, nuclear-powered submarines in Western Australia at the Defence Precinct, in accordance with domestic processes and regulatory requirements.
c. Support the uplift of industry and workforce development in Western Australia that is critical to defence capability, including the naval shipbuilding and submarine sustainment workforces.
d. Coordinate with the State on the delivery of new Common User Facilities, infrastructure, and capabilities that are mutually agreed to support current and future State and industry requirements.
e. Make fair and reasonable contributions to the planning and delivering of enabling works and infrastructure at the Defence Precinct to support the delivery of continuous naval shipbuilding and maintenance of Australia’s future conventionally armed, nuclear-powered submarines in Western Australia.
f. Acquire land, seabed, assets, and capabilities necessary for the establishment of the Defence Precinct on terms that achieve value for money outcomes for both of the Parties, including through opportunities to exchange land, assets, and/or infrastructure.
g. Collaborate and coordinate on the scheduling of projects with the State to ensure the efficient, timely, cost-effective and minimally disruptive delivery of State and Commonwealth infrastructure development projects and works, including the Defence Precinct, new Common User Facilities, and Westport.
h. Support the delivery of works in a fair, equitable and appropriate manner that directly and cumulatively achieves the realisation of the Parties’ priorities.
i. Collaborate, coordinate and share information with the State regarding the broader planning and delivery of enabling works and infrastructure development projects on the Western Trade Coast and within Cockburn Sound to support mutually-beneficial outcomes.
j. Work with the State to identify broader enablers across areas such as infrastructure, transport, utilities, materials supply, workforce, industry development, accommodation supply, education, and training required to support the successful delivery of Commonwealth priorities.
k. Lead the provision of housing for Australian Defence Force personnel and visiting defence personnel from the US and the UK in support of national security priorities, including the preparation and operation of Submarine Rotational Force-West at HMAS Stirling from 2027.
l. Lead community engagement efforts with respect to Australia’s nuclear-powered submarine program, and Western Australia’s critical role in its delivery.

m. Coordinate efforts to communicate information and engage the community, including Traditional Owners, with respect to the broader planning and delivery of land and sea works across the Western Trade Coast to enable Commonwealth programs, Westport, and other priority projects.
n. Implement the highest nuclear safety standards and protocols in close coordination and communication with the State.
 

18. The State intends to:
a. Exchange relevant State-owned land, seabed, assets and capabilities necessary for the establishment of the Defence Precinct on terms that achieve value for money outcomes for both of the Parties to enable the realisation of the Defence Precinct.
b. Lead the planning and delivery of new State-owned Common User Facilities, infrastructure, and capabilities that can support current and future non-defence industries, activities and projects.
c. Collaborate with the Commonwealth through a new Commonwealth-State group to identify opportunities to align the State’s education and skilling initiatives with the workforce requirements for the delivery of critical defence capability in Western Australia, including nuclear-powered submarines and continuous naval shipbuilding.
d. Assist the uplift of industry and workforce development in Western Australia that is critical to defence capability, including the naval shipbuilding and submarine sustainment workforces.
e. Support the delivery of works in a fair, equitable and appropriate manner that directly and cumulatively achieves the realisation of the Parties’ priorities.
f. Cooperate, collaborate and coordinate on project timeframes with the Commonwealth to ensure the efficient, timely, and minimally disruptive delivery of State and Commonwealth infrastructure development projects and works, including the Defence Precinct, new Common User Facilities,
and Westport.
g. Collaborate with the Commonwealth to identify broader enablers supporting Commonwealth priorities in Western Australia across areas such as infrastructure, transport, utilities, materials supply, workforce, industry development, accommodation supply, and education and training.
h. Facilitate relevant State approvals associated with the establishment of the Defence Precinct, the implementation of the AUKUS nuclear-powered submarine pathway, and enabling infrastructure, activities and initiatives in Western Australia.
i. Support the Commonwealth in its efforts to engage the community with respect to Western Australia’s critical role in the AUKUS nuclear-powered submarine pathway.
j. Coordinate efforts to communicate information and engage the community, including Traditional Owners, with respect to the broader planning and delivery of land and sea works across the Western Trade Coast to enable Commonwealth programs, Westport, and other priority projects.
k. Support and coordinate with the Commonwealth on its implementation of the highest nuclear safety standards and protocols.

NEXT STEPS
19. The Parties acknowledge the historic opportunities presented by the realisation of the mutually-beneficial initiatives contained in this CA and undertake to progress and implement the initiatives in an expeditious manner.
20. The Parties commit to tasking relevant officials to progress the activities outlined in this CA as expeditiously as possible, in consultation with relevant private sector, academic and union stakeholders.
21. The Parties commit to negotiating the scope of, and their respective responsibilities for, the mutually-beneficial initiatives outlined in this CA in good faith and as soon as practicable, with a view to commencing delivery of initiatives by 1 July 2025.