MEDIA RELEASE
AUDITOR-GENERAL EXPOSES FOUR YEARS OF DITHERING AND DELAYS ON COLLINS-CLASS LOTE
Friday, 22 May 2026
The Australian National Audit Office (ANAO) has revealed the Albanese Government allowed the Collins-Class submarine Life of Type Extension (LOTE) program to falter due to years of inaction and delay under Labor’s watch.
In a damning report released today the Auditor-General has shown multiple opportunities over the previous four years for Government to provide Defence with clear and timely direction following repeated warnings about the LOTE project. The result of this dithering has been to increase the risk of a serious capability gap in Australia’s maritime security.
Australia’s ageing Collins-Class submarine fleet is now expected to continue operational service until the late-2040s without materially upgrading its capabilities, allowing regional navies to surpass it until AUKUS submarines arrive.
Collins-Class Submarines will be less capable and less available as a result of the Albanese Labor Government’s indecision.
At times we may only have two submarines in the water - nowhere near enough for a maritime trading nation with supply chain vulnerabilities. This situation will get worse if there are any further delays in Collins sustainment or any slippage in delivery of Virginia-Class submarines.
Over the last four years Labor has failed to make the timely decisions needed to save Collins LOTE. Their failure to effectively manage this program has fundamentally undermined our ability to deter potential adversaries.
It is unclear from the ANAO Report what action the Government took following receipt of the Valdez Report in June 2024.
The Albanese Labor Government must urgently explain what action it will take to cover the resultant capability gap and ensure Australia has an effective long-range strike and undersea warfare capability in the late 2020s and 2030s.
Timeline of Collins LOTE under Labor:
- In August 2022, the implementation risk was raised to ‘extreme’. (Para 3.19, p. 53).
- September 2022, ASC advised the Program Management Review Board that implementing the full scope of the program within a two-year full cycle docking was not realistic. (p. 52)
- In November 2022, the Integrated Project Team was informed that ASC was developing an implementation plan and a test and evaluation strategy to address the risk. (p. 52)
- In February 2023, ASC delivered its assessment, reiterating the advice provided in September 2022, six months earlier, stating that the two-year full cycle docking was not feasible. (p. 52).
- In March 2023, Collins LOTE was submitted to NSC by the Minister for Defence and Minister for Defence Industry for Second Pass Approval. (Figure 1.1, p.18)
- In June 2023, the Program Review Board received similar advice from the Technical Advisory Panel, which was then provided to the Program Delivery Board and the Program Management Review Board in August 2023. (p. 52)
- In October 2023, the Capability Manager Steering Group — the band three/three-star body responsible for the Collins class submarine capability — was advised that LOTE upgrades could not be installed within the schedule required using traditional measures and adjustments to scope, schedule and risk appetite were being considered. Escalation was required due to the enterprise-wide impacts, including the ability of the LOTE project and the submarine enterprise to meet government’s availability requirements. (Para 3.20, p. 53)
- In November 2023, Collins LOTE was again submitted to NSC by the Minister for Defence and Minister for Defence Industry for Second Pass Approval, for the second time. (Figure 1.1, p.18)
- May 2024, Defence reduced the scope of the project to be installed on HMAS Farncomb to gain more time to address the design and implementation risks that had eventuated. (Para 3.20, p. 49).
- In May 2024, Collins LOTE was again submitted to NSC by the Minister for Defence and Minister for Defence Industry for Second Pass Approval, for the third time. (Figure 1.1, p.18)
- In June 2024, the Valdez Report was delivered to the Minister. (Para 2.63, p. 45)
- June 2024 to October 2025 – It is unclear from the ANAO Report what action the Government took following receipt of the Valdez Report.
- October 2025, Defence commenced work to investigate alternative options to deliver a LOTE for the Collins class submarines — two years after the risk had been escalated to ‘extreme’ and after three 2nd Pass considerations by Government. (Para 3.20, p. 49)
- March 2026, new delivery approach proposed to Investment Committee. (Figure 1.1, p.18)
- April 2026, 2026 National Defence Strategy and Integrated Investment Program released by Government.
- May 2026, new delivery approach approved by Government. (Figure 1.1, p.18)
- 12 May 2026, Federal Budget released.
- 18 May 2026, Richard Marles reveals descoping of Collins LOTE.
- 22 May 2026, ANAO Report on Collins LOTE released.
ENDS
