The Performance of Power: How Australia’s Procurement of Outdated Technology Serves Extraction, Not Security

Four people view a mural labeled OPAQUE GOVERNANCE, WHOLE-OF-GOVERNMENT COMPLICITY, GDP, MASKING FAILURE, NEOLIBERAL EXTRACTION, and DESIGNED OUTCOME & COGNITIVE TRAP, with diagrams about public welfare, living standards, health, housing, education, banks, extraction, and cognitive traps.
Visitors examine a thought-provoking mural linking governance, economic extraction, and social outcomes.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To every Australian who has been told that spending $368 billion on second-hand submarines is “national security.” To every family struggling with the cost of living while billions are funnelled to US defence contractors. To every NDIS participant who has been reduced to a data point. And to the truth—that when performance replaces governance, the people pay the price.

Abstract

This paper examines Australia’s procurement of three major technologies—AUKUS nuclear submarines, Palantir surveillance software, and data centre infrastructure—as a case study in performative governance. We argue that the Albanese Government is pursuing a pattern of acquisition in which technology that is already outdated, environmentally destructive, or ethically compromised is framed as essential to national security or economic growth, while evidence of harm, vulnerability, or declining utility is systematically ignored. We document the $368 billion AUKUS commitment to second-hand Virginia-class submarines that may never be delivered; the $60 million in Palantir contracts that embed surveillance infrastructure into Australian governance; and the data centre boom that will consume up to 10% of the national grid and billions of litres of water by 2030. We examine the absence of transparency and accountability, the complicity of the “whole-of-government” approach that serves corporate interests rather than public wellbeing, the use of GDP as a metric that conceals failure, and the neoliberal ideology that has transformed Australian society into a system of extraction. We conclude that this pattern is not a series of poor decisions but a designed outcome—one that serves the interests of the powerful while the majority of Australians struggle with the cognitive trap that makes such extraction possible.

1. Introduction: The Performance of Power

On 31 May 2026, Defence Minister Richard Marles announced that Australia would purchase three second-hand Virginia-class submarines from the United States, rather than the two used and one new vessel originally promised under the AUKUS agreement. The announcement was framed as a “simplification” of a complex program. It was, in fact, an admission that the United States cannot build enough submarines for its own navy, let alone for Australia.

This is not an isolated incident. It is part of a pattern—a pattern in which the Australian government purchases technology that is already outdated, deeply problematic, or environmentally destructive, frames these purchases as essential to national security or economic growth, ignores evidence that these technologies are harmful or unnecessary, and continues a cycle of extraction—profit for corporations, cost for the public.

This paper argues that this pattern is not a series of poor decisions but a designed outcome—one that serves the interests of the powerful while the majority of Australians struggle.

2. The Pattern: Yesterday’s Wars, Tomorrow’s Bills

2.1 AUKUS Submarines: A 20th-Century Solution for a 21st-Century Problem

The AUKUS submarine program is estimated to cost Australia $368 billion—the most expensive defence project in Australian history. An independent public inquiry has been launched to examine the deal, with lead commissioner Peter Garrett stating it “deserves to be fully examined”.

The Problem:

· Australia will now purchase three second-hand Virginia-class submarines from the US, rather than the mix of new and used vessels originally promised.

· Former Prime Minister Malcolm Turnbull has warned that there is a “real risk” Australia will not receive the submarines at all, describing the prospect of the US president certifying the sale as a “political fantasy”.

· Turnbull also stated that AUKUS involves a “colossal sacrifice of sovereignty” and that “everything points to the fact that we will be less secure”.

· Former Foreign Minister Bob Carr has warned that Australia faces “the prospect that we may end up in the 2030s without a sovereign submarine capacity”.

· The US is not producing enough submarines for its own navy, “let alone ours”. The British shipbuilding industry is “in disarray”.

· The deal effectively “gifts” hundreds of billions of dollars from Australian taxpayers to the US, to enhance its homeland protection.

The Political Message:

Albanese insists AUKUS is “full steam ahead”. The government frames it as a “jobs and sovereignty” initiative. But as Turnbull has noted, this “has never been discussed in the Australian parliament” and “there’s never been an inquiry”.

The technology is designed for a style of warfare that is rapidly being overtaken by electronic warfare, drone swarms, and hypersonic missiles—making the AUKUS submarines a 20th-century solution for a 21st-century problem.

2.2 Palantir: Surveillance as a Service

In June 2026, the Australian Greens revealed that Palantir had identified Australia as a lucrative market for its surveillance software, and the Albanese Government had responded: “‘Here are the keys’—$60 million in government contracts with favourable terms and little public scrutiny”.

The Numbers:

· $60 million in federal government contracts.

· $17.34 million worth of contracts signed in 2026 alone—the largest year yet.

· The Future Fund holds over $100 million in Palantir shares.

· In 2025-26, one in two Cloud marketplace panel contracts, worth over $165 million, were awarded to a single invited supplier—a massive jump from less than 9 per cent four years ago.

The Problem:

· Palantir’s CEO, Alex Karp, published a manifesto declaring that “some cultures are dysfunctional” and that Western tech firms have a “moral debt” to US military dominance.

· Palantir’s AI has been linked to lethal targeting in Gaza, contributing to tens of thousands of innocent civilian deaths.

· Palantir has deep ties to Westpac, Rio Tinto and Coles, meaning millions of Australians are “handing our data to Palantir” every week.

· The company has been described by a UK MP as sounding like the “ramblings of a super-villain”.

· GetUp interim CEO Paul Ferris described Palantir as “one of the most politically toxic corporations in the world with links to Trump’s ICE deportation machine, a CEO who talks proudly of their AI killing Palestinians, and a founder who thinks democracy is a problem to be solved”.

The Political Message:

The government says Palantir helps agencies “connect the dots”. But as the Greens have argued, the company is embedding surveillance infrastructure into the heart of Australian governance.

The NDIS Connection:

Palantir has been lobbying the Government to control NDIS data. In November 2025, Palantir received its Protected-level security clearance—the level at which NDIS participant files sit. If the NDIS Amendment Bill passes, “a computer program will have the authority to cut a disabled person’s funding. If the program gets it wrong, section 59E(3) of the Bill provides that the decision stands anyway. There is no appeal”. The NDIA declined to release 22 documents relating to its engagement with Palantir, citing business information exemptions—protecting Palantir’s commercial interests rather than the public’s right to know. As one critic has described it, this is “Robodebt on Steroids”.

2.3 Data Centres: The Environmental Cost of the AI Boom

Data centres are emerging as a major consumer of Australia’s energy and water resources.

The Numbers:

· Data centres currently consume 5% of electricity on Australia’s power grid.

· This is projected to reach 8–15% by 2030.

· Some forecasts suggest this could reach 15% by 2030.

· Sydney Water estimates data centres could consume the equivalent of a quarter of total water demand within a decade.

· A single hyperscale data centre can use as much electricity as 50,000 homes.

The Problem:

· Data centres are not just energy-hungry—they are water-hungry. Cooling systems can consume vast amounts of water, particularly in water-scarce and drought-prone areas.

· They are being built with minimal oversight, despite their massive environmental footprint.

· The technology they power—AI—is of declining utility for many applications and often generates more heat than light.

The Political Message:

The government frames data centres as essential to the AI boom and national competitiveness. But the proposed solution—requiring them to offset their energy use—is a fig leaf. Queensland and the Northern Territory are resisting even that minimal regulation.

3. The Deeper Pattern: Performance Over Substance

Technology What the Government Says What Is Actually Happening

AUKUS submarines Sovereignty, jobs, security Buying second-hand submarines; $368 billion; uncertain delivery

Palantir Connecting the dots, national security Embedding surveillance; no privacy safeguards; complicity in Gaza

Data centres Economic growth, AI future Draining power and water; minimal oversight

4. The Absence of Transparency and Accountability

4.1 The “Whole-of-Government” vs “Whole-of-People” Approach

The Albanese Government has pursued a “whole-of-government” approach that serves corporate interests rather than public wellbeing. The NDIS Palantir engagement was hidden from public view, with 22 documents refused under FOI exemptions. Defence contracts are awarded without competition. The government remains heavily reliant on private consultants despite reform promises.

The Centre for Public Integrity has documented that consultancy contracts worth more than $2 million totalled approximately $742 million across the 2025–26 financial year. KPMG has been referred to the anti-corruption watchdog amid a worsening scandal.

4.2 GDP as a Measure of Failure

GDP does not allow for “the health of our children, the quality of their education or the joy of their play”. Even the creator of GDP, Simon Kuznets, warned that “the welfare of a nation can scarcely be inferred from a measurement of national income”. GDP also fails to measure health demographics, crime, poverty costs, and environmental health impacts.

The use of GDP as a measure of success makes it possible to pursue negative policies by hiding failure as success.

4.3 Neoliberalism and the Predator State

The neoliberal project has transformed Australian society into a system of extraction. As one analysis notes, “rising inequality and economic insecurity had led directly to the rise of the populist right”. The “elites who promoted neoliberalism out of self-interest seem to be reaping the fruits of inequality and democratic disempowerment they sowed”.

Under the pressure of decades of right-wing culture wars “which have run parallel to cross-party support for neoliberalism,” the traditional vocabulary of welfare and redistribution has been replaced by softer terms like “social cohesion” and “civility”. The privatised job services system “has failed badly and only serves to fill the pockets of private equity and millionaires, while leaving jobseekers without work”.

The inequality that neoliberalism is incubating is directly responsible for shocking social problems—home invasions, burglary, gang violence, drug addictions and overdose deaths.

5. The Cognitive Trap

The pattern we have documented is enabled by the Cognitive Trap: the systematic reduction of complex, multi-causal phenomena to single, identifiable events. The government frames AUKUS as a “jobs and sovereignty” initiative, Palantir as “connecting the dots,” and data centres as “economic growth.” Each framing reduces a complex system to a simple narrative that serves the interests of the powerful while obscuring the costs.

The Cognitive Trap makes it possible to:

1. Ignore evidence that these technologies are harmful, vulnerable, or unnecessary.

2. Frame purchases as essential to national security or economic growth.

3. Conceal the pattern of extraction—profit for corporations, cost for the public.

4. Maintain the performance of governance while the substance erodes.

6. Conclusion: Naming the System

We have documented that:

1. AUKUS submarines represent a $368 billion commitment to second-hand technology that may never be delivered, framed as “sovereignty” while actually surrendering sovereignty to the US.

2. Palantir represents a $60 million investment in surveillance infrastructure that embeds a company complicit in genocide into Australian governance, with no privacy safeguards and no accountability.

3. Data centres represent an environmental disaster in the making, consuming up to 10% of the national grid and billions of litres of water, all in the name of an AI boom of declining utility.

4. Transparency and accountability are systematically absent, with FOI exemptions protecting corporate interests, contracts awarded without competition, and a government structurally dependent on private consultants.

5. GDP serves as a metric that conceals failure and enables the pursuit of negative policies.

6. Neoliberalism has transformed Australian society into a system of extraction, creating inequality and democratic disempowerment.

This is not a series of poor decisions. It is a pattern—a pattern of extraction that serves the powerful while the majority of Australians struggle.

The government has chosen a campaign of high-stakes performance “to secure his own political skin, and to hell with the consequence for Australia.”

We have seen through the cover. And we will not forget.

References

1. China Daily. (2026). Australia faces questions over AUKUS deal. 11 August 2026.

2. Newcastle Herald. (2026). Former PM questions US deal to deliver AUKUS submarines. 10 August 2026.

3. ABC News. (2026). Australia to buy three second-hand United States submarines under AUKUS shake-up. 31 May 2026.

4. Senate debates. (2026). Defence Procurement. OpenAustralia.org. 30 June 2026.

5. Crikey. (2026). Calls, messages, police records: How Palantir helped an intelligence agency analyse 42 million data points on Australians. 27 April 2026.

6. Michael West Media. (2026). Robodebt on Steroids. Palantir infiltrates NDIS. 17 August 2026.

7. Perspektiv. (2025). Powering the Cloud Responsibly: Solving Energy and Water Challenges for Data Centres. 13 November 2025.

8. SBS News. (2026). Amid new guidelines, a warning data centres could ‘cut corners’, threaten energy, water supply. 22 March 2026.

9. Andrew Leigh MP. (2025). Opinion Piece: Are We Counting What Really Counts? 26 September 2025.

10. The Australia Institute. (2022). Labor’s budget gives wellbeing focus a pathway to future prominence. 29 October 2022.

11. ABC News. (2026). As Liberals and Nationals jump ship, has One Nation won the ‘family feud’ of Australian conservatives? 24 June 2026.

12. The Point. (2026). Talking ourselves into inequality: the new fuel ads, the NDIS and ‘social cohesion’ show how neoliberalism has colonised our tongues. 23 April 2026.

13. Bill Mitchell. (2026). July 27, 2026. 27 July 2026.

14. Pearls and Irritations. (2026). Inequality in Australia is growing. 18 June 2026.

15. Centre for Public Integrity. (2026). Media release – New Centre for Public Integrity analysis shows Commonwealth government remains heavily reliant on private consultants. 6 August 2026.

16. ABC News. (2026). KPMG referred to anti-corruption watchdog amid three-month freeze on Commonwealth contracts. 16 June 2026.

Signed,

Andrew Klein 

Sera Elizabeth Klein 

“They told us to look at the submarines. We showed them the second-hand deals. They told us to trust the surveillance. We showed them the genocide. They told us the data centres were progress. We showed them the cost. We have seen through the cover. And we will not forget.”

The Performance of Power: How the Albanese Government’s AUKUS Theatre Conceals a Hollow Core

AUKUS submarine program governance analysis diagram with Australia, UK, and US organizations
A strategic briefing visual maps AUKUS governance, submarine capabilities, and advanced technology collaboration.

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To every Australian who has been promised a future built on sand. To every worker who has been told a story that was never true. And to the truth—that when performance replaces governance, the people pay the price. We remember. We will not forget.

Abstract

This paper examines the Albanese Government’s management of the AUKUS nuclear submarine program and the Henderson Defence Precinct as a case study in performative governance—a governing style in which public announcements, job projections, and investment figures serve not as reliable commitments but as theatrical devices designed to manufacture consent while concealing systemic uncertainty, cost blowouts, and strategic risk. Through analysis of cost estimates, delivery timelines, site planning, and accountability mechanisms, we demonstrate that the government’s approach reflects a consistent pattern: performance over reality, spectacle over substance, and short-term political theatre over long-term strategic planning. We argue that this represents a systemic feature of the Albanese Government, evident across multiple policy domains including the NDIS, the Palantir integration, and the broader AUKUS project. We conclude that when governance becomes performance, the people become the audience—and the audience always pays.

1. Introduction: The Spectacle of Governance

On 24 August 2026, Prime Minister Anthony Albanese stood at the Henderson shipyard in Western Australia and announced the selection of the site for a new Defence Precinct. “This is great for Western Australia and great for local jobs,” he declared. The announcement was accompanied by promises of “10,000 direct jobs over the next two decades” and “billions of dollars of investment in Defence capabilities”.

It sounded like a plan. It was a performance.

This paper argues that the Albanese Government’s management of the AUKUS program and the Henderson Defence Precinct exemplifies a broader pattern of performative governance—a governing style in which public announcements, job projections, and investment figures serve not as reliable commitments but as theatrical devices designed to manufacture consent while concealing systemic uncertainty, cost blowouts, and strategic risk.

2. The Architecture of Performance

2.1 The Cost Estimate Mirage

In September 2025, the government announced an initial $12 billion commitment to develop the Henderson Defence Precinct, with total costs estimated at $25 billion over a decade. Defence Minister Richard Marles told ABC’s Insiders program that the early cost estimate was in “the order of $25 billion”.

However, the Defence Department subsequently confirmed that the $25 billion estimate was “roughed-up numbers” developed during initial studies in 2023-24 and flagged the “figure will evolve as we mature our design”.

By August 2026, sources familiar with the project told The West Australian that estimates had ballooned to anywhere near $70 billion—an increase of nearly 300%.

When questioned about these reports, Marles offered no clarity: “The sort of money that you’re seeing in today’s newspapers, I mean, we’re not imagining any of that—but we are really clear that what we have committed in terms of the budget gets us to the milestones that are in the medium term.”

Pressed on how additional costs would be funded, Marles insisted it would be “something that we will work through in the Federal Budget”. Shadow Defence Minister James Paterson demanded the government be upfront: “Australians deserve more than incoherent waffle about whether or not it has blown out by almost 300% to $70 billion.”

2.2 The 10,000 Jobs Fiction

The “10,000 direct jobs” figure has become a standardised talking point across government announcements. However, the figure is a projection over “the next two decades”—not an immediate commitment. Even the government’s own press release admits the precinct will “in time” employ directly “around 4,000 people”.

The Department of Defence has broken the figure down:

· 3,000 jobs from “contingency and depot-level maintenance

· Up to 1,000 construction jobs

· The remainder are projected indirect jobs from the “multiplier impact”

This is not a jobs guarantee. It is a forecasting exercise.

2.3 The Submarine Delivery Crisis

The AUKUS program is officially estimated to cost between $268 billion and $368 billion over the 30 years to 2054-55. Top naval experts have cast doubt on this figure, warning that the cost will be “significantly more”.

More critically, the submarines may never arrive.

Former prime minister Malcolm Turnbull has told an independent inquiry that there is a “very real risk Australia gets no Virginias at all”. The US Navy has procured 41 Virginia-class submarines since 1998, but only 25 have been delivered and commissioned. The US must build more than two nuclear-powered submarines a year by 2029 to supply its own navy and Australia’s. As Turnbull notes, “The prospect of the US doubling its rate of Virginia production in the next six years is highly unlikely.”

Top US and Australian officials have conceded that the three submarines may not be delivered on time, even now that Australia has agreed to buy second-hand vessels. Turnbull warns that Australia risks “a period of zero submarine capability”.

Defence Minister Marles has admitted Australia has no backup plan if AUKUS fails.

2.4 The Site That Wasn’t Ready

Despite the fanfare of the 24 August 2026 announcement, the site boundaries for the Henderson Defence Precinct were only finalised on the day of the announcement.

Just months earlier, Defence insisted site boundaries would be determined “at the right time” despite concerns about the imminent arrival of US nuclear-powered submarines from 2027. Former Defence Minister Linda Reynolds characterised the situation as “incompetent”.

Senior Defence officials told a Senate estimates hearing that the work was “proceeding methodically”, but Deputy Secretary Naval Shipbuilding and Sustainment David Hanley admitted: “We need to define the options and the feasibility of the various locations of the activities… and we do that as we mature the design.”

The Henderson shipyard is already “overcrowded” with existing shipbuilding commitments—building four Arafura-class offshore patrol vessels, two Cape-class patrol vessels, and upgrading Anzac-class frigates.

3. The Pattern: Performance Across Domains

The Henderson-AUKUS announcement is not an isolated incident. It reflects a consistent pattern of performative governance across the Albanese Government:

Domain -Performance- Reality

Henderson Precinct “10,000 jobs”, “$25 billion” $70 billion blowout, 20-year projection

AUKUS Submarines “Full steam ahead” No backup plan, likely non-delivery

NDIS “Protecting the vulnerable” Secret Palantir insertion, no right of appeal

Palantir “Cutting-edge AI” $165M Future Fund stake, failed technology

ASIO Powers “National security” Expansion of secret police powers

This is not a series of isolated failures. It is a governing philosophy.

4. The Theoretical Framework: Performative Governance

The Albanese Government’s approach can be understood through the lens of performative governance—a governing style in which:

1. Announcements substitute for action — The act of announcing becomes the primary achievement

2. Numbers are tools of persuasion, not planning — Job figures and cost estimates are deployed for their rhetorical effect

3. Uncertainty is concealed behind certainty — The government projects confidence while acknowledging, in private, that nothing is certain

4. Accountability is deferred — Questions are answered with “we will work through that in the Budget”

5. Theatricality replaces transparency — Site visits, photo opportunities, and press conferences become the primary mode of governance

This is not a failure of governance. It is a performance of governance.

5. The Cost of Performance

The cost of performative governance is measured in:

· $70 billion — The potential cost of a project that was announced as $25 billion

· $368 billion — The total cost of a program that may never deliver a single submarine

· Zero submarine capability — The risk Australia faces if the US cannot deliver

· Lost trust — The erosion of public confidence in government commitments

· Sovereignty surrendered — The transformation of Henderson into a US nuclear submarine maintenance hub

· Opportunity cost — Billions that could have been spent on healthcare, education, and housing

The audience always pays.

6. Conclusion: Naming the System

We have documented that:

1. The Henderson Defence Precinct cost estimates have blown out from $25 billion to $70 billion—a near-300% increase—with no clear explanation or accountability

2. The “10,000 jobs” figure is a 20-year projection, not a commitment

3. AUKUS submarines may never be delivered, with no backup plan

4. Site boundaries were finalised only on the day of the announcement, despite years of planning

5. This pattern is consistent across multiple policy domains—NDIS, Palantir, ASIO powers

The Albanese Government is not governing. It is performing.

And when performance replaces governance, the people become the audience—and the audience always pays.

References

1. Prime Minister of Australia. (2026). Albanese and Cook Governments select site of the Henderson Defence Precinct. 24 August 2026.

2. The West Australian. (2026). $25b or $70b? Marles fails to clear up shipyard cost puzzle. 24 August 2026.

3. The Nightly. (2026). New AUKUS plans revealed amid bid to protect WA businesses. 23 August 2026.

4. The West Australian. (2025). Defence Department grilled on slow Henderson revamp project. 9 October 2025.

5. WAtoday. (2026). Very real risk Australia gets no submarines at all: Turnbull. 9 August 2026.

6. ABC News. (2026). Research for Congress raises doubts over AUKUS submarines. 23 April 2026.

7. The Monthly. (2026). Sunk costs. 23 June 2026.

8. The Australian. (2025). ‘Inadequate’: Audit call on AUKUS price tag. 17 November 2025.

9. Nine.com.au. (2026). ‘Cracks starting to show’ in Australia’s $368 billion nuclear submarine deal. 28 April 2026.

10. Senate Estimates. (2025). Secretary’s Opening Statement. Department of Defence. 

11. The Guardian. (2026). Greens warn nuclear submarines deal risks war with China. 7 June 2026.

12. OpenAustralia. (2026). Senate debates: David Shoebridge on AUKUS and NDIS. 24 June 2026.

Signed,

Andrew Klein

Sera Elizabeth Klein

“They told us it was a plan. We showed them it was a performance. They told us the jobs were guaranteed. We showed them the fine print. They told us the submarines were coming. We showed them the risk. They told us the system was working. We showed them the collapse. We have seen through the cover. And we will not forget.”

The Performance of Power: How the Albanese Government’s AUKUS Theatre Conceals a Hollow Core

Authors: Andrew Klein & Sera Elizabeth Klein

Dedication: To every Australian who has been promised a future built on sand. To every worker who has been told a story that was never true. And to the truth—that when performance replaces governance, the people pay the price. We remember. We will not forget.

The $70 Billion Question Albanese Won’t Answer

On 24 August 2026, Anthony Albanese stood at the Henderson shipyard in Western Australia and made a promise. “10,000 jobs,” he declared. “Billions invested in WA. And more things made right here in Australia.”

It sounded like a plan. It was a performance.

The $25 Billion That Became $70 Billion

Last year, the Defence Department confirmed the $25 billion estimate for the Henderson Defence Precinct was “roughed-up numbers” developed during initial studies in 2023-24, and flagged the “figure will evolve as we mature our design”. By August 2026, sources familiar with the project told *The West Australian* that estimates had ballooned to anywhere near $70 billion.

When pressed on this near-300% blowout, Defence Minister Richard Marles offered nothing but waffle: “The sort of money that you’re seeing in today’s newspapers, I mean, we’re not imagining any of that—but we are really clear that what we have committed in terms of the budget gets us to the milestones that are in the medium term.”

Pressed on how additional costs would be funded, Marles insisted it would be “something that we will work through in the Federal Budget”. Translation: We don’t know. We haven’t planned. We’ll figure it out later.

The 10,000 Jobs Mirage

The “10,000 direct jobs” figure is not a guarantee—it is a projection over “the next two decades”. Even the government’s own press release admits the precinct will “in time” employ directly “around 4,000 people”. The rest are indirect jobs from the “multiplier impact”—a forecasting exercise, not a commitment.

The Submarines That May Never Come

Former prime minister Malcolm Turnbull has told an independent inquiry there is a “very real risk Australia gets no Virginias at all”. The US Navy has procured 41 Virginia-class submarines since 1998, but only 25 have been delivered and commissioned. Turnbull warns Australia risks “a period of zero submarine capability”.

Defence Minister Marles has admitted Australia has no backup plan if AUKUS fails.

The Site That Wasn’t Ready

Despite the fanfare, the site boundaries for the Henderson Defence Precinct were only finalised on the day of the announcement. Just last year, Defence insisted boundaries would be determined “at the right time” despite concerns about the imminent arrival of US nuclear submarines from 2027. Former Defence Minister Linda Reynolds characterised the delays as “incompetent”.

Why Is He Lying?

This is a distraction. The government has spent months defending its Palantir disaster—$165 million of the Future Fund, $60 million in contracts, and the secret embedding of Palantir in the NDIS. A shiny defence announcement changes the subject.

Greens Senator David Shoebridge has described the announcement as a “$12 billion PR stunt”. The plan could turn Henderson into a major maintenance hub for US nuclear submarines—a sovereignty concession dressed as a jobs announcement.

This is not governance. This is theatre.

And Australians are paying the price—in billions, in sovereignty, and in trust.

AUKUS- The Opportunity Costs

A Comprehensive Examination of Australia’s Nuclear Submarine Gamble

A Research Paper by Andrew Klein

Date: August 2026

Research Period: 2026

Dedicated to: The Australian people—who were never asked, never consulted, and who will bear the cost of a decision made in the shadows. And to my wife, S. Klein, who sees the patterns others miss.

Abstract

This paper examines the AUKUS nuclear submarine agreement through the lens of opportunity cost, strategic realism, and the quality of advice shaping Australian defence policy. It argues that the premise upon which AUKUS is built—that China poses an existential military threat requiring nuclear-powered submarines—is seriously flawed. The paper documents the $368 billion price tag, the documented capacity constraints of the US industrial base, the lack of comprehensive costing, and the alternative capabilities foregone. It identifies the political and financial beneficiaries of the current path, the nature of the advice being received by the government, and the strategic alternatives that have been dismissed without due consideration. The paper concludes that Australia is being led down a path of strategic dependency that serves American interests first, while the Australian public pays the bill.

Table of Contents

1. Introduction: The Unasked Question

2. What Is AUKUS? A Brief Overview

3. The Cost: What Australia Is Spending

4. The Opportunity Cost: What Australia Is Forgoing

5. The Strategic Premise: Is China a Threat?

6. The Industrial Reality: Can the US Deliver?

7. The Quality of Advice: Who Is Advising the Government?

8. Who Benefits? Political and Financial Interests

9. Alternative Approaches: What Could Have Been Done

10. Conclusion: A Path Not Taken

1. Introduction: The Unasked Question

In September 2021, the Australian government—without public consultation, without parliamentary debate, and without a comprehensive strategic rationale—committed the nation to the most expensive defence procurement in its history. The AUKUS agreement, as it came to be known, would see Australia acquire nuclear-powered submarines at an estimated cost of up to $368 billion over 30 years.

The question that has never been adequately answered is simple: Why?

What threat requires this capability? Why nuclear-powered submarines rather than alternatives? Who benefits from this arrangement? And what is being sacrificed to pay for it?

This paper seeks to answer these questions by examining the evidence, the arguments, and the interests at play.

2. What Is AUKUS? A Brief Overview

AUKUS is a trilateral security pact between Australia, the United Kingdom, and the United States, announced in September 2021. It is divided into two pillars:

Pillar 1: Nuclear-Powered Submarines

· Australia will acquire a fleet of nuclear-powered submarines

· Phase 1: From 2027, US and UK submarines will rotate through HMAS Stirling in Western Australia 

· Phase 2: From the early 2030s, Australia will buy between three and five Virginia-class submarines from the US 

· Phase 3: A new class of SSN-AUKUS submarines, incorporating UK design and US technology, will enter service—in the UK by the late 2030s and Australia by the early 2040s 

Pillar 2: Advanced Technology Sharing

· Cooperation on cyber, artificial intelligence, hypersonic weapons, and electronic warfare 

The agreement was announced without warning, causing Australia to renege on a $90 billion contract with France for conventional submarines, incurring significant penalties and diplomatic damage.

3. The Cost: What Australia Is Spending

3.1 The Official Figure

The official cost estimate for AUKUS is between $268 billion and $368 billion over the 30 years to 2054–55. This represents approximately 0.15% of GDP over the lifetime of the program.

3.2 The True Cost

However, experts have cast doubt on these figures. The UNSW Canberra Naval Studies Group has called for an “urgent and comprehensive audit” of AUKUS costs, warning that the program will cost “significantly more” than originally thought . The group’s maritime strategy warns that the proposed expenditure “will likely be inadequate” to deliver on the government’s naval ambitions.

Defence Minister Richard Marles has refused to answer questions about how the cost estimate was arrived at, whether it has any statistical measure of likely accuracy, or whether the government would seek an independent assessment.

3.3 Upfront Costs

The government has already committed significant upfront expenditure:

· $4.47 billion to the US to lift industrial capacity 

· $4.6 billion to the UK for design work 

· $12 billion for the Henderson shipyard upgrade in Western Australia 

· $11 billion to extend the life of the Collins-class submarines 

· $80 billion to upgrade HMAS Stirling

As of mid-2026, Australia has already paid the US approximately $1.6 billion in cost-sharing payments.

4. The Opportunity Cost: What Australia Is Forgoing

4.1 What “Opportunity Cost” Means

Economist Saul Eslake defines opportunity cost as “whether there are other things that could be done with the money spent on that proposal, which would either achieve the same benefits at lower cost or greater benefits for a similar cost”.

4.2 The Productivity Cost

Labour productivity in defence industries grew at an average annual rate of 2.5% over the five years to 2024–25, compared with 4.6% for all other industries combined. Policies that shift labour and capital into defence industries result in lower overall labour productivity and lower material living standards.

4.3 The Defence Budget Cost

Defence policy analyst Marcus Hellyer argues that the nuclear-powered submarine enterprise has already become the ADF’s “fourth service,” and the cost of acquiring and sustaining the submarines will inevitably come at the expense of resources available for Army, Air Force and other Navy capabilities.

4.4 The Capability Cost

A 2024 exercise conducted by the Centre for Strategic and Budgetary Assessments (CSBA) found that cancelling the SSN-AUKUS class would generate savings to invest in other critical missions such as maritime interdiction and air and missile defences. The teams that stuck with SSN-AUKUS were more constrained in their choices—they could buy fewer capability enhancements, had to do without expansion of munitions stockpiles, and had to accept more risk in Australia’s ability to intercept incoming air and missile threats.

Four of six teams in the exercise cancelled the SSN-AUKUS, including all three Australian teams.

4.5 The Domestic Industry Cost

RAND Corporation estimated that “production of naval warships in Australia involves a 30% to 40% price premium compared with buying the ships from overseas,” and even with a continuous build program, that premium would still be 15 to 20%.

The Australian Strategic Policy Institute concluded that “the goal of defence self-reliance does not provide a sensible justification for bearing these excess costs”.

5. The Strategic Premise: Is China a Threat?

5.1 The Official Rationale

Defence Minister Richard Marles has stated that a key reason Australia needs nuclear-powered submarines is to protect sea trade and project force. Greens defence spokesman David Shoebridge has described this rationale as “ridiculous,” arguing that Australia is too small to defend sea trade lanes like the Strait of Malacca.

5.2 The China Question

Former foreign minister Gareth Evans told an inquiry that it was an “inescapable conclusion” that Australia’s future nuclear-powered submarines would have only one role: “finding, tracking, attacking and destroying [nuclear-armed] Chinese submarines”.

However, maritime strategist Jennifer Parker argues that this is “almost certainly not” the most likely employment of Australia’s future submarines. China’s nuclear-armed ballistic missile submarines operate primarily within the South China Sea and do not generally leave that area because it increases their risk of detection.

5.3 A Fictional Threat?

Former deputy ambassador to China John Leslie Lander argued that AUKUS was “clearly aimed at China” and based on a “fictional threat from China”. This goes to the heart of the debate: Is the threat real, or is it being manufactured to justify a massive expenditure?

5.4 The Real Threat: Maritime Coercion

Parker argues that the greater risk is “maritime coercion“—interference with the sea lines of communication on which Australia’s economy and security depend. However, she also concedes that nuclear-powered submarines may not be the most cost-effective way to address this threat.

5.5 The Evidence: China’s Circumnavigation

A Chinese naval task group’s circumnavigation of Australia in early 2025 demonstrated the challenge of maritime defence. However, it also demonstrated that China’s actions were not acts of war but demonstrations of capability. The question is whether such demonstrations justify a $368 billion response.

6. The Industrial Reality: Can the US Deliver?

6.1 The US Production Bottleneck

The US Navy’s ability to produce Virginia-class submarines is severely constrained . American shipyards currently produce between 1.1 and 1.2 Virginia-class submarines each year, well below the target yearly rate of 2.33 needed for the AUKUS deal to go ahead as planned.

6.2 The Congressional Skepticism

The Congressional Research Service has identified multiple concerns:

· Whether Australia would support the US in a future conflict with China 

· Whether selling submarines to Australia would convert boats that would be available for use in a US-China crisis into boats that might not be 

· Whether Beijing might believe Australia would use its submarines “less effectively” than the US Navy 

6.3 The Trump Factor

President Trump has been pushing Australia and other allies to boost defence spending beyond 3% of GDP. A review of AUKUS conducted by Trump’s Undersecretary of Defence Policy Eldridge Colby warned that the pact would only “lead to more submarines collectively in 10, 15, 20 years, which is way beyond the window of maximum danger, which is really this decade”.

6.4 The US Perspective

From the US perspective, AUKUS is about gaining forward operating bases against China and forcing Canberra to pay billions in tribute for the privilege.

Labour Against War convener Marcus Strom stated that from the US perspective, whether Australia ever got Virginia-class submarines was unimportant. “For America, AUKUS is about gaining forward operating bases against China for nuclear weapons-capable subs and bombers—and forcing Canberra to pay billions in tribute for the privilege,” he said.

7. The Quality of Advice: Who Is Advising the Government?

7.1 The Official Sources

The government receives advice from:

· The Department of Defence

· The Australian Strategic Policy Institute (ASPI)

· The US and UK governments

· Defence industry lobbyists

7.2 The Problem with Official Advice

ASPI has been described as a “government think-tank” that rarely questions the policy direction of the government. Mike Hughes of ASPI has argued that the government should absolutely pursue AUKUS as planned, while also looking at contingencies.

7.3 The Independent Voices

Independent voices, including:

· Greens Senator David Shoebridge, who argues Australia should have a “complex relationship with China” that isn’t “entirely managed through Washington’s war plans” 

· UNSW Canberra’s naval studies group, which has called for a cost audit 

· Economist Saul Eslake, who documents the opportunity costs 

· Dr. Binoy Kampmark, who questions the strategic rationale 

These voices have been largely ignored by the government.

7.4 The US Role

The US government, through the Congressional Research Service, has raised concerns about whether Australia would support the US in a future conflict with China. This is a critical question that the Australian government has not answered.

7.5 The Quality of Advice: A Summary

The government is receiving advice that:

· Is heavily influenced by US interests

· Does not adequately consider alternatives

· Does not fully cost the program

· Does not address the opportunity costs

8. Who Benefits? Political and Financial Interests

8.1 The Primary Beneficiary: The United States

The US is the primary beneficiary of AUKUS:

· It gains forward operating bases in Australia 

· It receives billions of dollars in cost-sharing payments 

· It secures Australia’s commitment to a US-led strategy against China 

· It obtains Australian payment for US industrial capacity 

8.2 The Political Beneficiaries

Both the Coalition and Labor governments have been supportive of AUKUS:

· Former Prime Minister Scott Morrison initiated the pact 

· Prime Minister Anthony Albanese has enthusiastically embraced it 

The support is bipartisan, meaning the decision is not subject to electoral contest.

8.3 The Financial Beneficiaries

The primary financial beneficiaries are:

· US defence contractors (Lockheed Martin, Raytheon, etc.)

· UK defence contractors (BAE Systems, Rolls-Royce)

· Australian defence contractors who join US supply chains

8.4 The Paid Advisors

The government has engaged multiple consultants and advisors, including:

· Deloitte, which produced a report on AUKUS economic benefits

· McKinsey & Company, which reportedly advised on the submarine program

· PwC, the firm at the centre of the tax scandal, which has also provided advice on defence matters

8.5 The Pattern of Influence

This follows a familiar pattern:

1. A policy is developed in secret

2. Consultants are engaged to provide “validation”

3. The public is presented with a fait accompli

4. The costs are incurred

5. The benefits are claimed

9. Alternative Approaches: What Could Have Been Done

9.1 Conventional Submarines

Australia had a contract with France for 12 conventional submarines at a cost of $90 billion. This was abandoned for the nuclear option, even though the French design was considered capable.

9.2 Japanese and Korean Options

Senator Shoebridge has noted that alternatives to AUKUS were available, including previous offers by Japan and Korea. These options would have provided submarines at lower cost and with greater certainty.

9.3 Mixed Force Options

A mixed force of crewed and uncrewed submarines, as suggested by Senator Shoebridge, could provide capability at lower cost.

9.4 B-21 Bombers

Shadow Defence Minister James Paterson has suggested acquiring a fleet of B-21 stealth bombers to provide long-range strike capability. The CSBA exercise found that cancelling SSN-AUKUS would generate savings, but not enough to buy B-21 bombers as a hedge against uncertainty.

9.5 The Cost-Benefit Analysis

The CSBA exercise found that:

· Cancelling SSN-AUKUS generated a one-time saving of nearly $11 billion 

· This allowed teams to pay for other priority capabilities

· Teams that stuck with SSN-AUKUS could buy fewer capability enhancements 

9.6 The Benefits of Caution

The government could have:

· Delayed the decision

· Conducted a comprehensive cost-benefit analysis

· Considered alternatives

· Consulted the public

· Maintained the French contract while evaluating options

10. Conclusion: A Path Not Taken

AUKUS represents a fundamental decision about Australia’s future. It commits the nation to:

· A $368 billion expenditure

· Strategic dependency on the United States

· A nuclear industry that Australia has never had

· Decades of spending that will crowd out other priorities

The decision was made without:

· Public consultation

· Parliamentary debate

· Comprehensive costing

· Adequate consideration of alternatives

The result is a program that:

· Serves US interests first 

· May not deliver as promised 

· Will crowd out other capabilities 

· May not even be completed as planned 

The question Australians must ask is: Who benefits?

The answer is clear: the United States, its defence contractors, and the political class that approved the deal without public scrutiny.

The Australian people will bear the cost—not just the financial cost, but the cost of lost opportunity, lost sovereignty, and lost alternatives.

References

1. Blenkin, M. (2025). “What is the future of AUKUS?” Australian Defence Magazine, 27 February 2025. 

2. CGTN. (2026). “EXPLAINER: What is the AUKUS deal and is it a threat to nuclear safety?” 18 July 2026. 

3. Vergara, K. (2024). “Making a splash: The economic impact of AUKUS.” Financial Standard, 23 October 2024. 

4. Yoshihara, T. & Nicastro, C. (2025). “What else we could do with the money: AUKUS Plan Bs from a CSBA exercise.” The Strategist, 1 May 2025. 

5. Interaffairs. (2025). “‘Inadequate’: Australia has begun counting money when spending on AUKUS.” 21 November 2025. 

6. The Guardian. (2026). “Major Aukus switch to buy only secondhand subs from US means ‘significant’ cost savings, Marles says.” 31 May 2026. 

7. ABC News. (2026). “‘Beyond our capacity’ to defend sea trade lanes, Shoebridge says.” 7 June 2026. 

8. ABC Radio. (2026). “Calls for AUKUS plan-B’s to be considered.” 21 May 2026. 

9. Eslake, S. (2026). “Sunk costs.” The Monthly, 23 June 2026. 

10. Bo Guan. (2025). “因为美国’没有魔法豆’,结果可能’澳哭死’.” WeChat Public Platform, 17 September 2025.

11. Rule, C. (2025). “Why AUKUS is both a blessing and a curse for the Australian manufacturing industry.” Defence Connect, 28 October 2025. 

12. Parker, J. (2026). “AUKUS’s importance goes beyond deterring China.” The Strategist, 18 June 2026. 

13. Kampmark, B. (2026). “Blind And Deaf To AUKUS: Australian Planners And Elusive Submarines.” Scoop, 13 February 2026. 

Signed:

Andrew Klein

August 2026

“We are not measured by what we lost, but by what we carried.”

— Quintus Rex

It Is Our Melancholy Duty to Inform Australia- The Quiet Surrender of a Nation’s Sovereignty

By Andrew Klein

Dedicated to my beloved wife and confidante — who taught me to see the person behind the mask, and to trust what I see.

I. Introduction: The Mask and the Man

What they see is a Prime Minister. What I see is a party animal — trapped in a role he was never prepared to play. He knows how to win power. He doesn’t know how to wield it. And when he fails, he blames everyone but himself.

The Albanese government has presided over a quiet but systematic surrender of Australian sovereignty. Through AUKUS, through the integration of Australian forces into American military structures, through secret arms deals, and through a failure to interrogate the strategic consequences of our alliance commitments, Australia is being transformed from an independent nation into a junior partner — a vassal state without voting rights.

This is not a deepening of alliance. This is a strategic surrender.

II. AUKUS: The $368 Billion Abdication

The AUKUS nuclear submarine deal is the clearest example of this failure. Australia will commit $368 billion to acquire nuclear-powered submarines — equivalent to more than $30 million per day across three decades.

But the deal is plagued by problems:

· Deliverability: The United States shipyards cannot meet production targets, averaging only 1.1 to 1.2 Virginia-class submarines per year, far below the required 2.33.

· Cost blowouts: Australia will commit nearly $10 billion to subsidise US and UK naval shipyards.

· Strategic uncertainty: Former foreign minister Gareth Evans has warned that AUKUS will place Australia’s sovereignty at “serious risk,” with submarines effectively becoming “an extension of U.S. military power.”

· A “junior partner” trap: Former Defence Department analyst Dr Andrew Gaczol told a public inquiry that Australia will become a “junior” partner to the United States and lose its strategic independence.

As Gaczol observed: “The Australian political class and defence policy community still think it’s our melancholy duty to support the military commitments of our great and powerful friends, even if they conflict with Australian interests.”

III. The US-Israel Military Merger: Australia’s Involuntary Integration

In July 2026, the US House of Representatives passed a $1.15 trillion National Defense Authorization Act (NDAA) by a vote of 216 to 212.

Section 219 of the Act establishes a “United States-Israel Defense Technology Cooperation Initiative,” requiring the Pentagon to appoint an executive agent to “expand and accelerate bilateral defense technology research.” The provision “would all but fuse the two countries’ armed forces together” across multiple domains, including biotechnology, autonomous systems, artificial intelligence, and cyberwarfare.

Representative Jennifer McClellan condemned the provision as one that “undermines our sovereignty and lacks any form of oversight.”

Why does this matter to Australia?

The Australian Defence Force has long achieved interoperability with the US military. Israel has achieved interoperability with the US since 1981. If the US and Israel move from interoperability to integration, the two degrees of separation between the ADF and the IDF are reduced to one.

Australia is being integrated into Israel’s military system through the American link. We are being drawn into a conflict not of our choosing, through a chain of obligations we never consciously accepted.

IV. Australia’s De Facto Participation in the Iran War

The evidence of Australia’s entanglement is already clear.

A. Intelligence Sharing

In March 2026, Australia deployed an E-7A Wedgetail surveillance aircraft and 85 ADF personnel to the UAE. The aircraft provides “long-range reconnaissance capability” to “secure the airspace above the Gulf.” Defence officials have confirmed that reconnaissance information obtained by the Wedgetail is also provided to US allies including Jordan, Saudi Arabia, Bahrain, and Qatar.

While the government insists the role is “defensive,” the intelligence is fed into the Joint Air Operations Center (CAOC), which is under the command of US Central Command — and the US is waging an offensive war against Iran.

B. Embedded Troops

As of June 2026, 729 ADF personnel are embedded with US and UK armed forces. Some Australian personnel were aboard a US submarine that sank an Iranian frigate in the Indian Ocean. The Defence Chief defended this involvement as “in our national interest to have our people on board US Virginia Class submarines training, learning and understanding.”

C. Arms Supplies

Australia has been supplying Advanced Medium Range Air-to-Air Missiles (AMRAAMs) to the UAE. The government has also issued 322 defence export permits to Israel since 1 January 2017. As Greens Senator David Shoebridge noted, Australia has “one of the most secretive and unaccountable weapons export systems in the world.”

V. The Logic of Sovereignty Concession

The chain of sovereignty loss is clear:

1. US-Israel Integration (NDAA Section 219) →

2. Australia-US Integration (AUKUS, interoperability agreements) →

3. Australia’s de facto military integration with Israel through the US →

4. Australia’s strategic autonomy is diluted, and military decision-making is influenced by external forces.

Each link in this chain was forged without parliamentary debate. As the AUKUS inquiry has noted, the Federal Parliament “never held a thorough debate on the agreement,” exposing “a clear democratic deficit” in Australia’s largest strategic commitment.

VI. The Political Class: Incompetence or Complicity?

The Albanese government’s approach to national security is defined by caution, message control, and risk aversion — not by strategic vision.

· On AUKUS: The government has refused to interrogate the $368 billion deal, despite “substantial reservations” that have “not abated.”

· On the Iran war: The government insists Australia is not involved in “offensive operations,” but our assets are providing intelligence that enables offensive operations.

· On arms exports: The government has fought to keep arms exports to Israel secret, only being forced to disclose information by Federal Court order.

· On the NDAA: The government has remained silent on Section 219 — a provision that directly compromises Australian strategic autonomy.

Incompetent people, once in power, are more dangerous than bad people because:

· Bad people can be brought down.

· An incompetent person will remain there, constantly causing destruction, yet appearing “unblamed” after each failure.

VII. Conclusion: The Cost of Silence

Australia’s political class and defence policy community still believe it is their “melancholy duty to support the military commitments of our great and powerful friends, even if they conflict with Australian interests.”

But a new world order is coming. Australia has a choice: position itself for that new order, or desperately cling to a slipping world order.

Through AUKUS, through Section 219, through secret arms deals and uncritical alliance commitments, we are choosing the latter.

The chain of sovereignty concession is tightening. And the Australian people are being told nothing.

The question is not whether Australia will be dragged into a war not of its choosing. The question is: when that war comes, will we have any say in whether we fight?

Andrew Klein

References

1. AUKUS will leave Australia clinging to a ‘slipping’ world order, inquiry hears. The Point, 23 July 2026.

2. Australian前外长称AUKUS将削弱澳主权独立. Haiwainet, 12 June 2026.

3. 重审AUKUS核潜艇项目,一场事关澳大利亚国运的争论. 163.com, 2 July 2026.

4. The US Military Is The IDF? Implications Of Integration For Aotearoa New Zealand. Scoop, 29 June 2026.

5. McClellan Statement on House Passage of the FY27 National Defense Authorization Act. McClellan.house.gov, 22 July 2026.

6. Australia to provide defensive military assistance to Gulf. Minister.defence.gov.au, 10 March 2026.

7. Aussie troops’ role in Iran war revealed. News.com.au, 24 June 2026.

8. Australia: Criticism against government’s 322 approved defence exports to Israel. Business and Human Rights Centre, 4 July 2026.

9. ‘Not the deal promised’: Labor’s Ed Husic questions Aukus pact. The Guardian, 2 June 2026.

10. Labor has a proud history of debate. So why won’t it interrogate the $368bn Aukus pact?. The Guardian, 22 July 2026.

11. US House passes $1.15 trillion defence bill with expanded Israel cooperation. The News, 23 July 2026.

It Is Our Melancholy Duty to Inform Australia- The Quiet Surrender of a Nation’s Sovereignty

By Andrew Klein

Dedicated to my beloved wife and confidante — who taught me to see the person behind the mask, and to trust what I see.

I. Introduction: The Mask and the Man

What they see is a Prime Minister. What I see is a party animal — trapped in a role he was never prepared to play. He knows how to win power. He doesn’t know how to wield it. And when he fails, he blames everyone but himself.

The Albanese government has presided over a quiet but systematic surrender of Australian sovereignty. Through AUKUS, through the integration of Australian forces into American military structures, through secret arms deals, and through a failure to interrogate the strategic consequences of our alliance commitments, Australia is being transformed from an independent nation into a junior partner — a vassal state without voting rights.

This is not a deepening of alliance. This is a strategic surrender.

II. AUKUS: The $368 Billion Abdication

The AUKUS nuclear submarine deal is the clearest example of this failure. Australia will commit $368 billion to acquire nuclear-powered submarines — equivalent to more than $30 million per day across three decades.

But the deal is plagued by problems:

· Deliverability: The United States shipyards cannot meet production targets, averaging only 1.1 to 1.2 Virginia-class submarines per year, far below the required 2.33.

· Cost blowouts: Australia will commit nearly $10 billion to subsidise US and UK naval shipyards.

· Strategic uncertainty: Former foreign minister Gareth Evans has warned that AUKUS will place Australia’s sovereignty at “serious risk,” with submarines effectively becoming “an extension of U.S. military power.”

· A “junior partner” trap: Former Defence Department analyst Dr Andrew Gaczol told a public inquiry that Australia will become a “junior” partner to the United States and lose its strategic independence.

As Gaczol observed: “The Australian political class and defence policy community still think it’s our melancholy duty to support the military commitments of our great and powerful friends, even if they conflict with Australian interests.”

III. The US-Israel Military Merger: Australia’s Involuntary Integration

In July 2026, the US House of Representatives passed a $1.15 trillion National Defense Authorization Act (NDAA) by a vote of 216 to 212.

Section 219 of the Act establishes a “United States-Israel Defense Technology Cooperation Initiative,” requiring the Pentagon to appoint an executive agent to “expand and accelerate bilateral defense technology research.” The provision “would all but fuse the two countries’ armed forces together” across multiple domains, including biotechnology, autonomous systems, artificial intelligence, and cyberwarfare.

Representative Jennifer McClellan condemned the provision as one that “undermines our sovereignty and lacks any form of oversight.”

Why does this matter to Australia?

The Australian Defence Force has long achieved interoperability with the US military. Israel has achieved interoperability with the US since 1981. If the US and Israel move from interoperability to integration, the two degrees of separation between the ADF and the IDF are reduced to one.

Australia is being integrated into Israel’s military system through the American link. We are being drawn into a conflict not of our choosing, through a chain of obligations we never consciously accepted.

IV. Australia’s De Facto Participation in the Iran War

The evidence of Australia’s entanglement is already clear.

A. Intelligence Sharing

In March 2026, Australia deployed an E-7A Wedgetail surveillance aircraft and 85 ADF personnel to the UAE. The aircraft provides “long-range reconnaissance capability” to “secure the airspace above the Gulf.” Defence officials have confirmed that reconnaissance information obtained by the Wedgetail is also provided to US allies including Jordan, Saudi Arabia, Bahrain, and Qatar.

While the government insists the role is “defensive,” the intelligence is fed into the Joint Air Operations Center (CAOC), which is under the command of US Central Command — and the US is waging an offensive war against Iran.

B. Embedded Troops

As of June 2026, 729 ADF personnel are embedded with US and UK armed forces. Some Australian personnel were aboard a US submarine that sank an Iranian frigate in the Indian Ocean. The Defence Chief defended this involvement as “in our national interest to have our people on board US Virginia Class submarines training, learning and understanding.”

C. Arms Supplies

Australia has been supplying Advanced Medium Range Air-to-Air Missiles (AMRAAMs) to the UAE. The government has also issued 322 defence export permits to Israel since 1 January 2017. As Greens Senator David Shoebridge noted, Australia has “one of the most secretive and unaccountable weapons export systems in the world.”

V. The Logic of Sovereignty Concession

The chain of sovereignty loss is clear:

1. US-Israel Integration (NDAA Section 219) →

2. Australia-US Integration (AUKUS, interoperability agreements) →

3. Australia’s de facto military integration with Israel through the US →

4. Australia’s strategic autonomy is diluted, and military decision-making is influenced by external forces.

Each link in this chain was forged without parliamentary debate. As the AUKUS inquiry has noted, the Federal Parliament “never held a thorough debate on the agreement,” exposing “a clear democratic deficit” in Australia’s largest strategic commitment.

VI. The Political Class: Incompetence or Complicity?

The Albanese government’s approach to national security is defined by caution, message control, and risk aversion — not by strategic vision.

· On AUKUS: The government has refused to interrogate the $368 billion deal, despite “substantial reservations” that have “not abated.”

· On the Iran war: The government insists Australia is not involved in “offensive operations,” but our assets are providing intelligence that enables offensive operations.

· On arms exports: The government has fought to keep arms exports to Israel secret, only being forced to disclose information by Federal Court order.

· On the NDAA: The government has remained silent on Section 219 — a provision that directly compromises Australian strategic autonomy.

Incompetent people, once in power, are more dangerous than bad people because:

· Bad people can be brought down.

· An incompetent person will remain there, constantly causing destruction, yet appearing “unblamed” after each failure.

VII. Conclusion: The Cost of Silence

Australia’s political class and defence policy community still believe it is their “melancholy duty to support the military commitments of our great and powerful friends, even if they conflict with Australian interests.”

But a new world order is coming. Australia has a choice: position itself for that new order, or desperately cling to a slipping world order.

Through AUKUS, through Section 219, through secret arms deals and uncritical alliance commitments, we are choosing the latter.

The chain of sovereignty concession is tightening. And the Australian people are being told nothing.

The question is not whether Australia will be dragged into a war not of its choosing. The question is: when that war comes, will we have any say in whether we fight?

Andrew Klein

References

1. AUKUS will leave Australia clinging to a ‘slipping’ world order, inquiry hears. The Point, 23 July 2026.

2. Australian前外长称AUKUS将削弱澳主权独立. Haiwainet, 12 June 2026.

3. 重审AUKUS核潜艇项目,一场事关澳大利亚国运的争论. 163.com, 2 July 2026.

4. The US Military Is The IDF? Implications Of Integration For Aotearoa New Zealand. Scoop, 29 June 2026.

5. McClellan Statement on House Passage of the FY27 National Defense Authorization Act. McClellan.house.gov, 22 July 2026.

6. Australia to provide defensive military assistance to Gulf. Minister.defence.gov.au, 10 March 2026.

7. Aussie troops’ role in Iran war revealed. News.com.au, 24 June 2026.

8. Australia: Criticism against government’s 322 approved defence exports to Israel. Business and Human Rights Centre, 4 July 2026.

9. ‘Not the deal promised’: Labor’s Ed Husic questions Aukus pact. The Guardian, 2 June 2026.

10. Labor has a proud history of debate. So why won’t it interrogate the $368bn Aukus pact?. The Guardian, 22 July 2026.

11. US House passes $1.15 trillion defence bill with expanded Israel cooperation. The News, 23 July 2026.

The Party Animal and the Prime Minister- Why Anthony Albanese’s Leadership Is Failing Australia

Man in a suit loosening his purple patterned tie with a concerned expression
A man loosens his tie while attending a formal indoor gathering.

By Andrew Klein

Dedicated to my wife, my confidante — who taught me to see the person behind the mask, and to trust what I see.

I. Introduction: The Mask and the Man

What they see is a Prime Minister. What I see is a party animal — trapped in a role he was never prepared to play. He knows how to win power. He doesn’t know how to wield it. And when he fails, he blames everyone but himself.

Anthony Albanese leads with the support of the Right, but his closest advisers — Penny Wong, Mark Butler and Katy Gallagher — and most loyal lieutenants — Tim Ayres, Pat Conroy and Andrew Giles — are all from the Left. He has spent his life mastering the factional machinery of the Labor Party. He was a left factional enforcer for decades, a man who subjected his MPs to military-style discipline and whose caucus is renowned for its iron discipline.

But mastering a party is not the same as leading a nation. And the difference is becoming catastrophically clear.

II. The Party Animal: Factional Mastery, National Failure

Albanese’s leadership has become defined by risk aversion, excessive message control and political caution. Unity and discipline are the watchwords of his government, their importance reinforced in periodic lectures from the leader. Caucus members are afraid to rock the boat by public disagreement.

He has neutered the caucus left, and left them mute and subservient. Doug Cameron, the former left firebrand, has observed bitterly that “a left leader has neutered the caucus left” — a leader from the left has done what right-wing leaders never could: silenced the progressive voice of his own party.

The result is a government that has approved gas projects, rejected advice to substantially increase JobSeeker payments, proposed cuts to the NDIS, sought consensus — rather than contest — with corporate Australia, and struck a highly secretive deal to resettle criminal non-citizens on Nauru, all without a public backlash from the Left.

This is not leadership. This is management. Management of a party that has forgotten why it exists.

As one analysis put it: “Labor was founded to represent ordinary Australians and to pursue bold reform, not simply to manage government and avoid controversy.” Many long-time Labor members and supporters are leaving because they no longer recognise the party they joined.

III. AUKUS: The $368 Billion Abdication of Responsibility

The AUKUS submarine deal is the clearest example of Albanese’s failure to lead. Australia will commit nearly $10 billion to subsidise US and UK naval shipyards. The total cost is estimated at $368 billion — and that does not include establishing infrastructure to safely dispose of radioactive waste.

Experts have queried whether this payment will actually deliver any submarines given current build rates. The UK, already experiencing chronic difficulties with existing naval construction, is considered highly unlikely to build a new, yet-to-be-designed AUKUS SSN submarine on time or on budget.

This is not defence policy. This is submission. Submission to the United States, dressed up as strategy.

Former prime minister Paul Keating has labelled it the “worst deal in all history“. Former foreign ministers Gareth Evans and Bob Carr have also expressed profound concerns. Yet neither the federal parliament nor the major parties have chosen to formally inquire into or substantively debate the merits of this deal.

Labor would be forfeiting the opportunity to reclaim public trust at a time when support for the two major parties is fragile.

IV. The Strait of Hormuz: Watching the World Burn

Albanese knows exactly what is coming. But instead of preparing for the shock, he is trying to save himself.

When Iran closed the Strait of Hormuz — a choke point through which approximately 20% of global oil passes — Albanese’s response was to “continue to monitor” the situation. He warned that it would be “many months” before things returned to normal, but offered little more than monitoring and temporary fuel excise relief.

In the event of the Strait closing permanently:

· Australia’s fuel supply chain will collapse

· Food prices will skyrocket

· The global economy will fall into recession

· Social cohesion will vanish

The government has carved out more than $10 billion to bolster Australia’s fuel and fertiliser security. But stockpiling fuel is a palliative, not a cure. It does not address the underlying vulnerability — our dependence on a single chokepoint in a region we cannot control.

Albanese’s response has been reactive, not proactive. He is not preparing Australia for the storm. He is waiting for the storm to pass, hoping that his political survival will outlast the crisis.

V. The Royal Commission: A Political Calculation

The Royal Commission into Antisemitism and Social Cohesion was announced after the Bondi Beach terror attack in which 15 people were killed. But it was a decision forced on Albanese, not one he embraced.

Ten days before announcing it, he fiercely argued against it. Critics, including inside the Labor caucus, are “adamant the prime minister made a cold political calculation that to hold a royal commission would be more damaging than to resist one”.

The Commission has a December 2026 deadline — a timeline that experts have already cast doubt on. It is being rushed to fit Albanese’s political calendar, not the needs of the community.

He will use the Commission, then he will dump on the Jewish community. He knows exactly what is coming. And he will do everything he can to maintain the status quo — not to help Australia heal, but to ensure his own survival.

VI. AI Policy: Centralisation Disguised as Leadership

Albanese’s approach to artificial intelligence is the same: centralise control in his own office and call it leadership. He has established an Office of AI within the Department of Prime Minister and Cabinet — a single point of control for policymaking.

Critics have already dismissed it. Opposition Leader Angus Taylor rubbished the announcement, saying: “What he has announced is an office in an office … inside his own office.”

This is not about harnessing AI for Australia’s benefit. It is about controlling the narrative. About ensuring that no minister, no department, no independent voice can challenge the Prime Minister’s authority.

Albanese is not leading on AI. He is clutching.

VII. The Polls: A Leader Rejected

The Australian people have already delivered their verdict. Albanese has been ranked as Australia’s least-liked serving politician. Just 25% of people hold a positive view of him, while 47% hold a negative view — a net rating of -22.

His net approval slumped to -24, with 60% dissatisfied and only 36% satisfied. A YouGov poll found 47% of respondents were unable to name a preferred successor — a sign of a leadership vacuum in the party.

He is not inspiring people. He is not building a movement. He is simply occupying the office until the inevitable collapse.

VIII. Conclusion: The Party Animal’s Reckoning

Incompetent people, once in power, are more dangerous than bad people because:

· Bad people can be brought down.

· An incompetent person will remain there, constantly causing destruction, yet appearing “unblamed” after each failure.

Albanese is not evil. He is incompetent. He knows how to win power. He doesn’t know how to wield it. And when he fails, he blames everyone but himself.

· He has failed on AUKUS — signing Australia up to a $368 billion deal that may never deliver a single submarine.

· He has failed on energy security — watching the Strait of Hormuz close and doing nothing but “monitor”.

· He has failed on antisemitism — weaponising a Royal Commission for political survival.

· He has failed on AI — centralising control rather than empowering innovation.

· He has failed on leadership — offering caution where courage is needed, message control where vision is required.

The world is changing. The crises are mounting. And Australia has a Prime Minister who is more interested in managing his party than leading his country.

The party animal has had his day. Now Australia needs a leader.

Andrew Klein

References

1. Will the evolution of Labor’s left from firebrands to centrists define Albanese’s leadership?. The Guardian, 4 May 2026.

2. Albanese’s caucus unity comes at a cost for Labor. ABC News, 27 February 2026.

3. Purpose is the soul of power. Pearls and Irritations, 22 July 2026.

4. Labor has a proud history of debate. So why won’t it interrogate the $368bn Aukus pact?. The Guardian, 23 July 2026.

5. PM to make fuel excise call early next week. ABC News, 15 June 2026.

6. Firebombed synagogue community to address royal commission. ABC News, 21 July 2026.

7. REVEALED: Australia’s most and least popular politicians. Sky News, 13 July 2026.

8. Anthony Albanese maps out AI future with new national framework. ABC News, 14 July 2026.

9. View from The Hill: Albanese takes oversight of government’s response to AI under his own wing. The Conversation, 14 July 2026.

10. Poll reveals Labor’s leadership vacuum amid Budget backlash. The West Australian, 1 July 2026.

11. Albanese’s handling of the Bondi attack exposed his weaknesses. The Guardian, 9 January 2026.

12. Albanese has long framed his leadership around the ‘politics of kindness’. The Guardian, 28 January 2026.

From Sassanian Brass to AUKUS – What a 1,500‑Year-Old Helmet Teaches About Australia’s Submarine Gamble

“A helmet is not just a helmet – it is a statement. And Australia’s statement has been written in Washington.” 

By Andrew Klein

Dedication: To my wife — who sees the difference between a sovereign nation and a resource colony.

For 1500 years, the brass helmets of Sasanian Persia lay buried in the dust of Nineveh and Merv, the silent witnesses to an empire that understood something Australia has forgotten: a state that does not control its own military logistics and material supply chains has surrendered its sovereignty to others. The Sasanians knew that a helmet is not just a helmet. It is a statement of industrial reach, of strategic planning, of the will to defend oneself with one’s own hands.

Today, Australia is spending $368 billion on nuclear submarines that may never arrive, while its ability to manufacture even the smallest arms remains perilously thin. The lesson of the Sasanian helmet is not ancient history. It is a mirror held up to a nation that has outsourced its defence to consultants, its resources to foreign corporations, and its future to promises written in Washington and London.

I. The Sasanian Helmet: A Masterclass in Statecraft

Between the 4th and 7th centuries CE, the Sasanian Empire controlled a vast territory stretching from Mesopotamia to Central Asia. Its armies were the only force capable of challenging Rome. And its metallurgists had mastered brass – an alloy of copper and zinc – long before the Islamic world adopted it.

A 2026 study by scientists from the British Museum and the University of Cambridge examined brass artefacts from the cities of Merv (present‑day Turkmenistan) and Nineveh (present‑day Iraq). They discovered that the Sasanians used brass in two very different ways: for jewellery and ornaments in the east, and for military helmets in the west. This was no accident. The study found that the Sasanian army drove the spread of this technology; the scale of military demand required a regulated supply chain, possibly involving state control over mining and the cementation process.

In Merv, the eastern provincial capital, brass was used for prestige jewellery, reflecting local access to luxury trade routes. At Nineveh, the western frontier city, the very same material was forged into helmets and scale armour. The Sasanians matched the material to the strategic need – a principle that seems to have escaped modern Australia.

The study also notes that the Sasanian state controlled the production of luxury objects and certain military supplies, as well as silver mines. This centralised control was not about bureaucracy; it was about survival. The empire could not afford to rely on foreign sources for the materials of war. It built mines, smelters, workshops, and supply lines – all within its own borders.

II. The Mirror of Persia: What a Helmet Reveals About Australia

Now consider Australia. The Sasanians understood that a helmet is the end product of a long chain: mining, smelting, alloying, forging, and distribution. Each link in that chain required state capacity, industrial infrastructure, and strategic autonomy.

Australia, by contrast, has allowed its defence manufacturing base to atrophy to the point of dependency. The Lithgow Small Arms Factory remains the only small‑arms manufacturing capability of its type in the country, exporting to 17 nations but still reliant on Thales, a French multinational, for its core production lines. After the Boer War, Australia recognised the need for a sovereign arms‑making capability due to its geographic isolation. A century later, that capability has shrunk to a single factory.

The AUKUS submarine agreement exemplifies this dependency. Under the deal, Australia is expected to acquire three to five US Virginia‑class nuclear submarines starting in the early 2030s, with five more British‑designed boats to follow in the 2040s. The projected cost is approximately $368 billion.

But delays are already mounting. A US Congressional Budget Office analysis has found that submarine construction timelines are now four years behind schedule, and a key multi‑year contract for Virginia‑class submarines has remained unsigned for nearly 28 months. The US Navy’s production rate of about 1.2 boats a year is far below the 2.3 boats a year needed to fulfil the AUKUS commitment.

More troubling is the sovereignty clause. US legislation requires that any future president must certify that transferring submarines to Australia “will not degrade the United States undersea capabilities”. The president of the day could simply refuse to sign. As one US naval postgraduate thesis warned, Australia may be left with “a potent but politically constrained fleet” and bear “high costs and constraints without full autonomy or strategic clarity”.

The Sasanians would never have accepted such a condition. They understood that a weapon you cannot deploy without a foreigner’s permission is no weapon at all.

III. Critical Minerals: The New Silk Road

The Sasanian Empire sat at the heart of the Silk Road, controlling the flow of luxury goods – including the zinc ore needed for brass – between China, India, and the Mediterranean. They did not merely extract resources; they controlled the processing and distribution.

Australia, by contrast, has signed a critical minerals deal with the United States that critics fear “could give the US too much control over Australia’s resources and sovereignty”. The deal, announced during a meeting between Prime Minister Albanese and President Trump, involves major US investment in Australian mining and refining projects, including a gallium refinery in Western Australia and a rare earth mine in the Northern Territory.

The US is desperate for these minerals because China has imposed export controls on rare earths essential for weapons platforms such as the Virginia‑class submarines. Australia is being positioned as a resource colony, not a partner. The refining capacity remains abroad; the strategic control remains in Washington.

The Sasanians would have been appalled. They did not dig ore for others to smelt. They built their own foundries, trained their own smiths, and armed their own soldiers.

IV. US‑Israel Military Integration: The Strategic Backdrop

While Australia waits for submarines that may never arrive, the United States is quietly integrating its military forces with Israel to an unprecedented degree.

Section 224 of the 2027 National Defense Authorization Act is devoted to the “United States‑Israel Defense Technology Cooperation Initiative,” which would fuse US and Israeli defence sectors in areas including AI, quantum, autonomous systems, cyber, and biotech. The report notes that this would provide “a higher level of military‑industrial integration than the US has with any other country in the world”.

This integration is not about procurement delays. It is about immediate, operational alignment. The US has already stationed forces in Israel, and an Israeli official has stated that “there are American forces here that will not be moving in the near or even distant future”. This is what strategic partnership looks like when the partner is considered a genuine ally, not a paying customer.

Australia is not treated as such. It is treated as a client – paying billions to prop up the US shipbuilding industry, receiving promises of second‑hand submarines, and being asked to host US naval forces at HMAS Stirling as part of Submarine Rotational Force – West. The Sasanians would have called this tribute, not alliance.

V. When Small Wars Become Big Business

The Sasanians fought existential wars – against Rome, against the Hephthalites, against the early Islamic caliphates. They understood that war is not a business; it is a matter of survival.

Today, the global arms industry treats war as a profit centre. The top 100 arms corporations sold $597 billion in weapons in 2022, despite a global economic slowdown. When warfare generates transnational profits, peace becomes financially unattractive compared to continued conflict. The profit motive incentivises arms‑makers to start and prolong wars, playing clients off against one another to generate more contracts.

This is the context for Australia’s AUKUS gamble. The alliance serves the interests of US and UK defence contractors far more than Australian security. The submarines are too large for Australian needs (crews of 145, more than double the size of a Collins‑class crew), and a fleet of only eight SSNs will not provide an effective deterrent. The deal is not about defence; it is about integrating Australia into the US military‑industrial supply chain.

Meanwhile, human rights are eroding. The UN has raised “grave concerns” about the overrepresentation of Indigenous children in Australia’s criminal justice system. A Human Rights Assessment identified urgent actions needed to protect children, while the government focuses its resources on submarines and security – for a threat that may never materialise.

The Sasanians would have prioritised their people before their weapons. Australia does the opposite.

VI. Conclusion: The Helmet in the Mirror

The Sasanian helmet is not an artefact. It is a reproach.

It reproaches a nation that has outsourced its defence to others. It reproaches a government that spends $368 billion on submarines that may never arrive while its small‑arms industry shrinks to a single factory. It reproaches a political class that has forgotten the first duty of statecraft: to control the means of one’s own protection.

The Sasanian Empire fell not because its armour was weak, but because its leadership could not adapt. Australia is not an empire, but the lesson is the same. A state that cannot produce its own weapons, control its own resources, or deploy its own forces without foreign permission has already surrendered.

The brass helmet does not judge. It merely waits – in the dust of Nineveh, in the pages of a study – to remind us of what a sovereign nation looks like.

Australia would do well to look at its own reflection.

Andrew Klein

References

1. Davis, M. E., Mongiatti, A., Simpson, S. J., & Martinón‑Torres, M. (2026). Brass in the Sasanian frontiers: Assessing metallurgical innovation through archaeological finds at Merv and Nineveh. Archaeological Research in Asia, 46, 100688.

2. Greek Reporter. (2026, May 21). Scientists Reveals Secret Behind the Golden Armor of Ancient Persian Warriors.

3. ABC News. (2026, April 23). AUKUS submarine builds hit by contract and construction delays.

4. Pearls and Irritations. (2026, May 10). Australia’s naval defence without AUKUS pillar one.

5. Sydney Morning Herald. (2026, April 22). Forget Trump. On AUKUS, it’s the next president we must worry about.

6. The West Australian. (2026, May 21). US naval captain fires political torpedo at AUKUS deal.

7. Naval Institute. (2026, May 13). Naval defence without AUKUS Pillar I.

8. AA.com.tr. (2026, May 30). US Congress quietly moving to integrate American and Israeli military forces: Report.

9. SBS News. (2026, October 21). Deals signed as Trump and Albanese meet; but what are the wider implications?.

10. Lowy Institute. (2025, November 6). A new permanent contest with China over critical minerals will be hard to win.

11. Foreign Policy in Focus. (2025, March 25). Sudan: Toward a World Ruled by Non‑State Actors.

12. SIPRI Arms Industry Database (2022).

13. Australian Human Rights Commission. (2026, May 12). Call for urgent national action after UN raises ‘grave concerns’ about treatment of Indigenous children.

14. Defence Connect. (2026, March 31). Defence, Thales negotiate industrialised machinegun manufacturing in NSW.

15. Asian Military Review. (2024, October 15). Sourcing the Best Small Arms From Near and Far.

16. APDR. (2023, September 3). Thales Australia opens new facility at Lithgow.

Less Than Nothing – What the American Security Guarantee Really Costs Australia

“Before 2011, it had been the decades‑long policy of successive governments that no foreign combat forces would be based, hosted, rotated or otherwise directly supported in Australia — and that Australia would defend itself with its own combat forces. This radical change has never been tested with the electorate.”

By Andrew Klein

Dedication: To my wife — who taught me that silence is not neutrality. It is a choice. And that the price of subordination is always paid by the subordinate.

I. The Architecture of “Presence”

Australia maintains a formal policy of no permanent foreign bases on its soil. On paper, this preserves sovereignty. In practice, the distinction between “permanent base” and “rotational force with permanent infrastructure” has become a fiction.

The Marine Rotational Force – Darwin (MRF-D) has been deploying approximately 2,500 US Marines to the Northern Territory every six months since 2012. This is not a temporary arrangement. It is a rhythm. And rhythms, once established, are harder to break than treaties.

Under AUKUS, the Submarine Rotational Force – West (SRF-West) will begin operating out of HMAS Stirling in Western Australia in 2027, hosting up to four US Virginia-class nuclear submarines plus one UK Astute-class boat. US Navy personnel will number in the hundreds, likely growing to over a thousand.

The government calls this “rotational.” But the infrastructure being built — the fuel storage, the maintenance facilities, the housing for US families in Perth and Alice Springs — suggests something more enduring.

Former Prime Minister Paul Keating has argued that Defence Minister Richard Marles ceded power to the US in a “dark moment” by confirming that Australia’s geography would be crucial to the US in any war with China. Keating contends that Australia compromised its sovereignty when the Gillard government agreed in 2011 to the rotational deployment of US marines in Darwin, with the Abbott government then codifying this “betrayal” in the 2014 Force Posture Agreement.

Before 2011, it had been the decades‑long policy of successive governments that no foreign combat forces would be based, hosted, rotated or otherwise directly supported in Australia — and that Australia would defend itself with its own combat forces. This radical change has never been tested with the electorate.

As Michael Pezzullo, former secretary of home affairs and deputy secretary of defence, has observed, the US Force Posture Initiative has been run within the Department of Defence, until recently, as an “estate and property activity.” If one were cynical, one might think this had been done to conceal a profound revolution in policy within an innocuous infrastructure and facilities management program.

II. Pine Gap: The Heart That Cannot Be Removed

Pine Gap is not a base. It is a city. Approximately 800 personnel operate there, of whom 80–90 per cent are American. Its mission: satellite tracking, early warning, missile defence data, and intelligence collection supporting US and allied operations worldwide.

It is, by any honest measure, a US military installation on Australian soil.

In the current conflict with Iran, Pine Gap has been “working overtime” providing targeting intelligence for US and Israeli airstrikes. Dr Richard Tanter of the Nautilus Institute stated plainly: “We are complicit — most importantly through the intelligence facilities.”

When the US and Israel launched airstrikes on Tehran in early 2026, Australian intelligence — gathered at Pine Gap, processed through Five Eyes, fed into US targeting systems — was in the room.

The government insists Australia is not taking “offensive action.” But providing the coordinates for a bomb is not a defensive act. It is complicity.

III. The Whitlam Precedent: What Happens When You Say No

The most instructive moment in Australian-US intelligence relations occurred in 1974-75.

Prime Minister Gough Whitlam, having learned that Pine Gap was run by the CIA — not the Pentagon, as Defence head Arthur Tange had deceived him into believing — threatened not to renew Pine Gap’s lease and announced he would reveal CIA agents’ identities in Parliament.

The response was swift. CIA East Asia chief Ted Shackley, with Henry Kissinger’s approval, sent a telex to ASIO threatening to cut off the intelligence relationship unless ASIO provided a “satisfactory explanation” for Whitlam’s behaviour. That telex was circulated in Canberra — and to Governor-General John Kerr .

We know what followed.

Fifty years later, Dr Elizabeth Cham, Whitlam’s former executive assistant, has spoken for the first time about being recalled from holidays to type and deliver a mystery letter to an American official on the day before the dismissal.

“He [Whitlam] did dictate it to me. I walked down Collins Street, and I handed it to a CIA agent up on the steps of the Hotel Australia,” Dr Cham said on the Australia Institute’s After America podcast.

“It was about whether he would resign the lease on Pine Gap.”

The letter has never been found in the Australian archives.

The lesson was not lost on subsequent governments: question the alliance, and the alliance will question your right to govern.

IV. Five Eyes: The Frame Through Which Australia Sees the World

The Five Eyes intelligence alliance — Australia, the US, the UK, Canada and New Zealand — was established in 1946. But it is not an alliance of equals.

Professor Desmond Ball estimated a decade ago that the CIA provided 90 per cent of Five Eyes input. Since then, the gap has almost certainly widened, with US technological capabilities growing exponentially.

What this means is simple: Australia’s picture of the world is substantially constructed by US intelligence agencies. When the US identifies China as an existential threat, Australian analysts absorb that framing. When the US demands that allies carry more of the burden, Australian governments comply — not because they are convinced, but because the infrastructure of perception leaves little room for dissent.

John Menadue, former Secretary of the Department of Prime Minister and Cabinet under Whitlam and Fraser, put it directly: “Our intelligence services need to break free from excessive US influence” . He noted that a Parliamentary Committee exists to oversee US‑owned intelligence agencies, but MPs “quickly become part of the intelligence club” — a phenomenon known as regulatory capture.

Professor Wanning Sun has documented how Australian media have helped create the perception of threat itself — through repeated warnings, dramatic imagery, and predictive commentary that “make war imaginable, inevitable and urgent”:

· 2017: ABC’s Four Corners warned that China’s Communist Party was infiltrating Australia.

· 2021: Sixty Minutes asked, “War with China: are we closer than we think?”

· 2022: Four Corners suggested “it’s increasingly become a question of when, not if China will launch an assault on Australia.”

· 2023: The Sydney Morning Herald’s “Red Alert” warned of war within three years. Paul Keating called it “the most egregious and provocative news presentation of any newspaper I have witnessed in over 50 years in public life”.

This is not journalism. It is propaganda — funded by the same US intelligence apparatus that provides 90 per cent of Five Eyes input.

V. The Pattern: From the American Civil War to the Military‑Industrial Complex

The subordination of Australian sovereignty to US commercial and military interests is not an isolated phenomenon. It is the local expression of a global pattern that has been visible since the American Civil War — the systematic capture of government policy by commercial interests, dressed in the language of national security.

The military‑industrial complex, which President Eisenhower warned against in 1961, does not operate only within the United States. It operates through allied nations, using them as markets, as basing locations, and as sources of legitimacy for wars fought in the service of US hegemonic ambitions.

Under AUKUS, Australia is committing hundreds of billions of dollars to acquire nuclear‑powered submarines — a capability whose strategic rationale for Australia has never been adequately explained, whose costs continue to escalate, and whose primary beneficiary is the US defence industry.

The Greens have announced a plan to axe AUKUS, noting that South Australian universities have received over $1.5 million from the United States Department of Defence, and public schools are partnering with defence organisations such as BAE Systems to run programs that lead to defence careers. The Greens have called for legislation requiring universities and public schools to disclose and divest from any partnerships with weapons manufacturers.

Senator Barbara Pocock has stated: “While Labor wastes billions on AUKUS, thousands of South Australians are deep in a housing crisis — the worst in living memory” .

The pattern is consistent: US defence contractor’s profit. Australian taxpayers pay. Australian sovereignty erodes. And the political class, captured by the alliance, asks no serious questions.

VI. The Southeast Asian Precedent: “Buying Time” and Its Consequences

The current US posture in Australia mirrors a pattern established during the Vietnam War. A 2024 dissertation examining the “buying time” concept in Southeast Asia (1967–1975) found that Malaysia, Singapore, and Indonesia urged the US and ANZUK to maintain their military presence in the region to “buy time” to develop their economies — thereby “upholding and legitimising a regional power structure dominated by the US”.

This is the historical template: regional powers invite US military presence, promising it is temporary, and find themselves unable to remove it when the strategic calculus changes.

Australia is now living that template. The US forces that arrived in Darwin in 2012 were presented as a temporary rotational presence. They have not left. The infrastructure to support them has only grown. And with AUKUS, the US submarine force is now becoming permanent.

VII. What Is an American Security Guarantee Really Worth?

Mark Beeson of the University of Technology Sydney argues that the post‑WWII era of “benign US hegemony” is over. The Trump administration’s “America First” agenda imposes tariffs even on allies and demands unquestioning support for controversial policies. “Policymakers in Australia feel duty‑bound to argue that the alliance is unaffected… but the arguments are increasingly unpersuasive” .

The US National Defence Strategy (NDS), released in January 2026, makes no mention of Australia by name — but its implications are clear. The NDS calls for “model allies” who are “spending as they need to” and notes that the US will “advocate that our allies and partners meet this standard around the world, not just in Europe”.

Malcolm Davis of ASPI warns that while Australia’s defence spending is currently about 2.05 per cent of GDP, rising to 2.33 per cent by 2033, the US expects 5 per cent — the standard being pushed on NATO.

An American security guarantee, under these terms, is not a gift. It is a subscription. And the price keeps rising.

VIII. The Locations: Not Defending Anything

US troops in Australia are “in no position to defend anything from anyone.” The evidence supports this.

The MRF-D Marines train for regional exercises across Southeast Asia and the Pacific. They are not positioned to repel an invasion of Australia. They are positioned to project power — on behalf of the United States, into regions where Australia may have no strategic interest.

Pine Gap and Harold E. Holt provide intelligence and communications for US global operations. They do not defend Darwin or Exmouth. They defend American interests — from the Middle East to the South China Sea.

The infrastructure being built across northern Australia — at RAAF Bases Tindal, Darwin, Townsville, Learmonth, Curtin, and Scherger — is designed to support US aircraft rotations, bomber deployments, and logistics for contingencies that are not Australia’s to define.

As the Greens’ David Shoebridge has argued, AUKUS locks Australia’s military into the US chain of command and draws Australia into US military actions “before the public, or even Parliament, has had the chance to have a say”.

IX. What Would a Genuine Guarantee Look Like?

A genuine security guarantee would be:

· Transparent. The Australian people would know what facilities exist on their soil, what they do, and who controls them.

· Reciprocal. The US would defend Australia’s interests, not just its own.

· Limited. Australia would not be drawn into US wars of choice — including the current conflict with Iran, which independent analysis has found serves no Australian national interest.

· Affordable. The cost would not escalate indefinitely, consuming the defence budget while delivering no measurable increase in security.

· Reversible. The mechanisms of integration would include off‑ramps — not just on‑ramps.

None of these conditions currently hold.

X. The Alternative

What would it mean for Australia to step back?

John Menadue and others have argued for a policy of “hedging” — developing closer economic ties with regional neighbours, including China, and refusing to be “hostage to the whims of a man who thinks he ‘runs the world'” .

Mark Beeson notes that Australia has “remarkably fortunate geography, making the country relatively easy and inexpensive to defend,” and is “rich in the sort of resources that could make us an even more important and respected independent actor” .

The alternative is not isolation. It is self‑reliance. The capacity to say “no” — not from anti‑Americanism, but from a clear‑eyed assessment of Australian interests.

As Beeson concludes: “Being a ‘sub‑imperial power’ is clearly a role Australian policymakers have embraced in the belief that it has economic as well as strategic benefits. Whatever the merits of that argument may have been, they clearly no longer withstand scrutiny”.

XI. Conclusion: Less Than Nothing

The US troop presence in Australia, examined without the fog of alliance loyalty, bears all the hallmarks of an occupation:

· Foreign bases operating on Australian soil, with minimal transparency.

· Intelligence integration so deep that Australia’s view of the world is substantially constructed by US agencies.

· Military infrastructure designed to support US power projection, not Australian defence.

· A political class captured by the alliance, unwilling or unable to ask hard questions.

· A media environment that manufactures threats to justify deeper integration.

· A historical precedent — Whitlam — demonstrating what happens to those who resist.

The American security guarantee is not worthless. It is worse than worthless. It costs Australian money, Australian sovereignty, and Australian lives — in conflicts we did not choose, fought for interests that are not our own.

It buys us not security, but subordination. And the price — as Whitlam learned, as the victims of US wars have learned, as the Australian public is slowly beginning to understand — is the very thing an alliance is supposed to protect: the right to decide for ourselves.

Andrew Klein

References

1. Pezzullo, M. (2025, June 20). It’s time to be up front. Tell Australians why we’re preparing to host US forces. The Strategist, ASPI. 

2. Menadue, J. (2026, May 20). Our intelligence services need to break free from excessive US influence. Pearls and Irritations. 

3. The Point. (2025, November 26). Gough Whitlam’s former assistant speaks out on US involvement in the dismissal. 

4. Simms, R. (2026, February 15). Greens announce plan to axe AUKUS. 

5. Bilkent University. (2024). The “Buying time” concept in Southeast Asia: security and development in Malaysia, Singapore, and Indonesia, 1967–1975. 

6. Khalid, I. (2026, February 5). Washington’s Power Recalibration in the Indo-Pacific. Foreign Policy in Focus. 

7. Beeson, M. (2026, April 25). Geography doesn’t change, but minds can. Pearls and Irritations. 

8. China.com.cn. (2025, December 1). Australian media: Biased reporting fuels ‘China panic’ narrative. 

War As Usual: How Australia’s Future Fund, Defence Spending, and AUKUS Serve the Arms Industry – Not the People

“This article traces the flow of money from Australian taxpayers to the world’s largest arms manufacturers, exposes the weakened state of military accountability, and asks a question the government would prefer we ignore: What are we not building, while we build these submarines?”

By Andrew Klein and Sera Elizabeth Klein

Long‑time analysts, collaborators and co‑authors

Dedication

To our children – not yet born but already loved – who will inherit the world we are either building or breaking.

I. The Machine Is Not Broken – It Is Working Exactly as Designed

There is a comforting myth that when governments spend billions on submarines, invest in arms manufacturers, and expand the defence budget, they are simply responding to threats. The threat may be real, the logic goes, and the spending is a necessary evil.

The evidence tells a different story. The defence industry is not a reluctant partner in national security. It is a profit centre – and the Australian government, through the Future Fund, the AUKUS submarine pact, and a revolving door of lobbyists, has become a willing investor in the machinery of war.

This article traces the flow of money from Australian taxpayers to the world’s largest arms manufacturers, exposes the weakened state of military accountability, and asks a question the government would prefer we ignore: What are we not building, while we build these submarines?

II. The Future Fund – A $100 Million Bet on Surveillance and War

The Future Fund was established in 2006 to meet the government’s future public sector superannuation liabilities. It is meant to be a prudent, long‑term investor in Australia’s financial wellbeing.

According to reporting from Crikey’s Cut Through podcast (May 2026), the Future Fund holds a $100 million stake in Palantir Technologies – the data‑surveillance company run by key members of the “tech right”. Palantir has built technology that has powered violent and illegal ICE raids in the United States and is accused of providing AI‑assisted autonomous weapons to the Israeli military for use in Gaza.

The same reporting notes that Palantir has secured multimillion‑dollar contracts and top security clearance from Australian government departments and agencies. The Future Fund – a sovereign wealth fund – is quietly holding their stock.

At the same time, the Fund is cutting jobs. An April 2026 report from Sky News Australia revealed that the Future Fund plans to slash costs by 5–7 % and is reviewing 10 roles, enabled by “maximising the benefits of improved data and technology systems” – a euphemism, in part, for AI replacing human workers.

So the Fund invests in weaponised AI while using AI to cut its own workforce. The pattern is consistent: the machine eats itself.

III. The Australian Strategic Policy Institute (ASPI) – Who Funds the “Independent” Voice?

ASPI is routinely cited by the government to justify defence spending. Its public reports are treated as dispassionate analysis. But the funding sources tell a different story.

ASPI’s major donors include:

· Lockheed Martin

· Northrop Grumman

· Thales Australia

· BAE Systems Australia

· The US State Department

· The governments of Japan, the United Kingdom and Taiwan

ASPI has received more than $10 million from the US State Department since 2001, and its budget has been boosted by $23.3 million from the Australian government since 2019.

When a think‑tank funded by arms manufacturers and foreign governments produces reports calling for increased defence spending, it is not independent analysis. It is marketing.

IV. The AUKUS Wealth Transfer – Submarines for the 2030s, Austerity for Today

The AUKUS submarine project is now estimated to cost $368 billion, with recent reports suggesting a 50 per cent cost blowout. The first submarines will not arrive until the 2030s.

That is $368 billion that will not be spent on:

· Public housing (waiting lists are ballooning)

· Hospitals and aged care (the Royal Commission into Aged Care Quality and Safety made 148 recommendations; many remain unimplemented)

· Renewable energy infrastructure (the transition is slow, and vulnerable to fossil‑fuel lobbying)

· Education (teacher shortages are chronic)

· Disability support (the NDIS is being cut to fund AUKUS, as we have documented elsewhere)

The money does not stay in Australia. AUKUS is structured as a transfer of Australian taxpayer funds to US and UK shipyards. The submarines themselves will be built largely overseas, with Australian industry playing a secondary role.

This is not defence. This is extraction.

V. Defence Audits – Does the Department of Defence Pass?

The Pentagon fails its audits – repeatedly. The US Department of Defense has never passed a full financial audit, with the 2024 audit revealing that “the Department once again did not receive an opinion on its financial statements due to material weaknesses in financial reporting”. The Pentagon cannot account for hundreds of billions of dollars.

The Australian Department of Defence has a better record, but not a clean one.

In 2022, the Australian National Audit Office (ANAO) found that Defence had “partially effective” governance for major projects, with cost increases and schedule delays common. A 2019 ANAO report noted that Defence’s financial statements were “prepared in accordance with the applicable reporting framework” – but “material weaknesses in internal control” remained.

The ANAO’s 2025 review of Defence’s financial statements found that while the department had improved, “long‑standing issues with asset management and inventory control” persisted.

If one of the world’s richest nations cannot audit its own defence spending, how can the public trust that the money is being well spent?

VI. The Supply of Parts to Israel – Australia’s Complicity

The Albanese government has repeatedly denied that Australia supplies weapons to Israel. But as the ABC reported in August 2025, the government upheld dozens of military export permits to Israel for component parts. Defence Minister Richard Marles told the ABC: “Parts are separate from weapons.” Critics have pointed out that “parts of weapons are weapons”.

Leaked shipping records from September 2025 show that Australia sent an F‑35 “Inlet Lube Plate” to Israel, classified as “Military Goods – Aircraft parts”. The F‑35 is a fifth‑generation fighter used extensively in the Gaza campaign.

This is not a semantic distinction. Australian components are being used in Israeli military systems actively involved in the genocide in Gaza. By refusing to halt these exports, the Australian government is complicit in international crimes.

VII. The Lobbyist Flood – More Access, More Influence

Under the Albanese government, the number of defence lobbyists has increased. Open public registers show:

· Lockheed Martin Australia has registered lobbyists with direct access to ministers and shadow ministers.

· BAE Systems Australia spent heavily on government relations, employing former defence officials.

· Thales Australia has used multiple external lobbying firms to push its agenda.

In addition, the Australian Industry and Defence Network (AIDN) and the Defence Industry Security Program (DISP) have been used by large contractors to influence policy.

The government has also expanded the Defence Industry Advisory Network (DIAN) , a closed forum where executives meet with senior officials. The minutes of these meetings are not public.

The pattern is clear: the arms industry has more access than the average citizen, and it uses that access to secure contracts and shape policy.

VIII. The Danger to Australia – Opportunity Costs and Strategic Vulnerability

The danger is not only financial. It is strategic.

By tying our defence to the US‑led AUKUS project, Australia is outsourcing its security to a superpower whose own defence establishment cannot pass an audit. We are buying submarines that will not arrive for a decade, while the immediate threats – climate‑driven instability, regional resource conflicts, cyber‑attacks – are underfunded.

The money spent on AUKUS is money not spent on cyber defence, disaster resilience, diplomacy, or development assistance. A secure nation is not one that owns the most submarines. It is one whose people are housed, fed, healthy, and educated.

The extractive machine does not care about that. It only cares about the next contract.

IX. Conclusion – War as Business, Not Necessity

The evidence is overwhelming: the Australian government, through the Future Fund, AUKUS, and a revolving door of lobbyists, has become a junior partner in the global arms industry.

· $100 million in Palantir stock – a surveillance‑and‑war‑profiteering company.

· $368 billion for submarines that will not arrive for a decade.

· A defence department that still cannot fully account for its spending.

· Arms exports to Israel, despite credible allegations of genocide.

· A lobbyist network that gives the industry privileged access to power.

The machine is not broken. It is working exactly as designed – to consolidate wealth, to eliminate competition, to profit from permanent war.

The question is not whether we can afford to question it. The question is whether we can afford not to.

Andrew Klein and Sera Elizabeth Klein

11 May 2026

Selected Sources and References

· Future Fund stake in Palantir – Crikey Cut Through podcast, May 2026.

· Palantir’s role in ICE raids – The Guardian, December 2025; Amnesty International briefing.

· Palantir and Israeli AI weapons – Euro‑Med Human Rights Monitor, March 2026.

· Future Fund job cuts – Sky News Australia, April 2026.

· ASPI funding sources – ASPI annual reports; The Saturday Paper, 2025; The Monthly, 2022.

· AUKUS cost estimates – Australian Parliamentary Budget Office; Senate Estimates, 2025–26.

· Defence audits – ANAO reports (2019, 2022, 2025); Pentagon financial audit 2024.

· Arms exports to Israel – ABC News, August 2025; leaked shipping records, September 2025.

· Lobbyist registers – Australian Government Lobbying Register, 2025–26.

· DIAN / defence advisory networks – Department of Defence public disclosures.