However, in February, officials told a Senate estimates hearing the payment would proceed as per an agreed schedule \u2013 before the end of the 2024-25 financial year \u2013 and that $2 billion would be paid by the end of 2025.<\/p>\n
The exact date of the second $800 million payment \u2013 and whether it occurred with knowledge of the US review \u2013 is unclear. The government confirmed the payment was made during the second quarter of this year, between April and June, but did not respond to further questions to clarify the date.<\/p>\n
The Pentagon publicly confirmed the existence of the AUKUS review on June 11, and Marles has said the Australian government was informed of the review \u201cweeks\u201d before then<\/a>. The government was in caretaker mode from March 28 until the May 3 election.<\/p>\n After this year, the remaining $US1 billion will be paid in regular annual instalments adjusted for inflation over 10 years. The $US3 billion ($5 billion) contribution to US submarine building represents a fraction of the $268-$368 billion price tag of AUKUS over 30 years.<\/p>\n Asked about this masthead\u2019s story on Wednesday afternoon, Prime Minister Anthony Albanese said the second payment was delivered according to the schedule.<\/p>\n Loading<\/p>\n \u201cWe have an agreement with the United States, as well as with the United Kingdom,\u201d he told the ABC\u2019s Afternoon Briefing.<\/p>\n \u201cIt\u2019s about increasing their industrial capacity. But as part of that, we have Australians on the ground learning those skills, so that when it comes to the submarines being built here in Australia, we have those skills.<\/p>\n \u201cIt\u2019s not extra, it\u2019s a schedule that we have of a payment that we\u2019re making. We support AUKUS, we have an agreement, it\u2019s a treaty-level agreement.\u201d<\/p>\n Bruce Wolpe, a senior fellow at the United States Studies Centre, said the payments made so far showed AUKUS was moving forward and nothing had changed despite the doubts that had erupted following the Pentagon\u2019s review.<\/p>\n Loading<\/p>\n \u201cThere\u2019s been no deviation on AUKUS from this government,\u201d he said. \u201cWhat this shows is a redoubling of the commitment. It\u2019s in an orderly fashion.<\/p>\n \u201cIt\u2019s kind of significant, though, that it has not been disclosed in a timely fashion … everyone\u2019s touchy about AUKUS and I guess they want to be more reticent than forthcoming.\u201d<\/p>\n There is speculation the Pentagon review of AUKUS could ask for further contributions from Australia beyond the $US3 billion already pledged towards the US maritime industrial base. Hegseth has asked Australia to lift overall defence spending to 3.5 per cent of gross domestic product, from about 2 per cent \u2013 about an extra $40 billion a year.<\/p>\n The review is also considering whether the US can build enough submarines to fulfil its AUKUS commitments, and what undertakings Australia can give about how the boats will be used in the event of a conflict with China over Taiwan, or other contingencies.<\/p>\n On Wednesday, this masthead reported that President Donald Trump\u2019s new submarine chief, Jerry Hendrix, who is leading the president\u2019s push to build more vessels in the US, harbours significant concerns about Australia\u2019s commitment to AUKUS<\/a> and ability to help the US in a Pacific conflict.<\/p>\n Marles\u2019 office and the Pentagon were contacted for comment.<\/p>\n