“Extending the life of all six Collins class submarines is critical to maintaining that edge as we transition the Navy from conventional to nuclear-powered submarines,” Deputy Prime Minister Richard Marles said in Canberra announcing the program.
An $11 billion AUD life-extension to keep six Collins boats operating into the 2040s
The Australian Department of Defence has committed an $11 billion AUD ($7.8 billion) Life Of Type Extension (LOTE) program for the six Collins-class diesel electric submarines. The announcement says the program will keep the boats in service until the 2040s, roughly 20 years longer than originally planned. The state-owned company ASC — formerly the Australian Submarine Corporation — will receive the funding to carry out the work.
HMAS Farncomb to lead the LOTE with a detailed engineering assessment
LOTE will commence with HMAS Farncomb, described by the department as the second-oldest Collins-class boat and the submarine with the highest number of sea days in the fleet. Farncomb’s extension will include a “detailed engineering assessment period” intended to tailor upgrades for that boat and to inform the work required across the rest of the class, the release said.
Conditions-based sustainment: retain, restore, and upgrade selectively
The department says the LOTE will follow a “conditions-based sustainment approach.” Under that model, base components will be retained and restored while critical weapons and systems continue to be upgraded. Each submarine will be assessed individually as it enters the program before decisions are made about which components — the propulsion system singled out in the announcement as an example — will be replaced or retained.
Operational context: Collins availability and the AUKUS transition timeline
The Collins boats were commissioned between 1996 and 2003 and, despite earlier serviceability challenges, have shown improved availability in recent years. The announcement noted that at least three boats had been at sea in recent weeks: two operating off Australia and a third operating in Southeast Asia. The LOTE is framed explicitly as an interim step while Australia prepares to move to nuclear-powered submarines under the AUKUS pact.
Under AUKUS Pillar 1, the announcement records a phased transition: Australia will receive three US Navy Virginia-class submarines in the 2030s to build experience operating nuclear-powered submarines, followed by induction of five new-build AUKUS-class submarines beginning in the 2040s.
What this means for ASC, the Royal Australian Navy, and AUKUS Pillar 1
- ASC: The company will be the recipient of the $11 billion AUD LOTE contract and will be responsible for carrying out retain/restore work and upgrades across the six boats, beginning with engineering work on HMAS Farncomb.
- The Royal Australian Navy: Extending the Collins boats’ service lives until the 2040s preserves submarine availability while the Navy prepares to operate nuclear-powered platforms and integrates new capabilities.
- AUKUS Pillar 1: The LOTE is positioned as a bridging solution to the arrival of three US Navy Virginia-class submarines in the 2030s and the later induction of five new-build AUKUS-class submarines in the 2040s, creating a multi-decade transition timeline.
The decision effectively places the Collins class at the center of a long-duration capability transition: a detailed engineering start with HMAS Farncomb, a class-by-class assessment of components, and a commitment of $11 billion AUD to keep six boats operational into the 2040s. The next concrete milestone named in the department’s release is the detailed engineering assessment for Farncomb — a technical first step that will determine the scope of work across the fleet and shape how the Collins boats bridge Australia’s move to nuclear-powered submarines under AUKUS.
Original story: https://breakingdefense.com/2026/05/australia-kicks-off-7-8-billion-collins-class-submarine-life-extension/
