Richard Marles says planning underway for new AUKUS agency, regulator

Developments are also underway to create a standalone regulator, also housed within the Defence portfolio but separate to the department, which will ensure the decades-long project remains safe and within international non-proliferation obligations.

It follows Tuesday's major announcement in San Diego where Prime Minister Anthony Albanese, US President Joe Biden and UK Prime Minister Rishi Sunak outlined the details of the trilateral AUKUS security pact's first substantial delivery, which the three nations described as "only the beginning".

But back in the nation's capital, plans are underway establish a central team to coordinate the project's many moving parts.

Defence Minister Richard Marles told The Canberra Times the yet-to-be named agency will be created by transitioning staff from the existing 350-person AUKUS submarine taskforce, currently being led by Vice Admiral Jonathan Mead.

Both the agency and regulator will form a "very important part" of how the multi-billion-dollar landmark deal will be delivered over the decades, Mr Marles said.

"There will be a new executive agency that will be responsible for delivering the submarine and, indeed, responsible for the entire nuclear enterprise," the Defence Minister said.

"It will really be the evolution of the existing task force, but it will end up being a separate agency within the Defence portfolio."

Bureaucrats are expected to make up a portion of the anticipated 20,000 jobs created as part of the AUKUS with a number of them being located in the nation's capital.

Tuesday's announcement revealed details of the deal for the first time, which included Australia acquiring, three, possibly used, US-built Virginia class nuclear-powered submarines from the early 2030s, followed by five-jointly developed SSN-AUKUS subs.

The newly-designed submarines are expected to be delivered in Australia every three years from 2042.

Mr Albanese said it was the "biggest single investment in Australia's defence capability in our history".

"My government is determined to invest in our defence capability," he said.

"We are also determined to promote security by investing in our relationships across our region.

"This is a genuine trilateral undertaking - all three nations stand ready to contribute and all three nations stand ready to benefit."

The new fleet is expected to be complete by 2054 with the AUKUS-designed submarines to be built at Osborne, South Australia.

The subs will be nuclear-powered, not nuclear-armed, President Biden reiterated.

Australia and the UK are expected to begin work on the SSN-AUKUS in domestic shipyards within the decade.

Mr Albanese pledged the subs agreement will lead to 20,000 direct Australian jobs, including many trades and specialisations, including specially trained submariners.

He also regarded AUKUS as a "catalyst for innovation" which will lead to research breakthroughs.

More Australians are expected to be trained in nuclear engineering through universities and research institutes.

The SSN-AUKUS is primarily based on a new British design with "cutting edge" Australian, UK and US technologies.

The sale of the Virginia class submarines requires Congressional approval. It is first time in 65 years the US has shared its nuclear propulsion technology.

READ MORE:

The project will start this year with Australian military and civilian personnel embedding with the US Navy, the Royal Navy and with US and UK submarine bases.

Forward rotations of US and UK SSNs at HMAS Stirling in Western Australia, to assist building skills and operational capability, will begin "as early as" 2027.

The cost of the new subs program has been revealed as $9 billion over the next four years, $50 to $58 billion over the next decade and 0.15 per cent of GDP over its lifetime. This puts the lifetime cost of the AUKUS subs initiative between $268 billion and $368 billion.

Defence spending is running at 2 per cent of GDP and is expected to rise in the near term due to AUKUS and the outcome of the Defence Strategic Review.

Chinese President Xi Jinping just prior to the public announcement declared that China must turn its military into a "Great Wall of Steel" to effectively safeguard his country's sovereignty, security and developmental interests.

In his first speech since becoming leader for a historic third term, Mr Xi told a gathering of Communist Party officials that China must modernise its military, oppose Taiwan pro-independence forces and promote "reunification of the motherland".

Described by Mr Sunak as an "unprecedented endeavour", the submarine plans come nearly 18 months after the AUKUS security and technology pact was first revealed under the former Coalition government.

Opposition Leader Peter Dutton offered his assurances the "massive" program would receive bipartisan support to pass the budget savings needed to fund it.

But Mr Dutton added he wanted assurances that defence's budget wouldn't be slashed to pay for it.

"It's not credible for the government to say that there's no net impact, even over the forward estimates, we can't allow Labor to cannibalise the defence force to pay for AUKUS," he said.

"It's not an either/or option."