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Politics live: Australia always preferred secondhand Aukus submarines, defence secretary says | Australia news

Politics live: Australia always preferred secondhand Aukus submarines, defence secretary says | Australia news

Australia always preferred used submarines, defence secretary claims

Dan Jervis-Bardy

Australia’s preference was always to receive second-hand nuclear powered submarines under the Aukus deal, defence officials have revealed, prompting the Coalition to question if the original arrangement was “imposed” on the Albanese government.

The defence secretary, Meghan Quinn, was grilled at Senate estimates on Tuesday night about the announcement that Australia would buy three used Virginia-class submarines from the US rather than a combination of new and old vessels.

Under questioning from the shadow defence minister, James Paterson, Quinn said it was a “joint idea” from Australia and the US to rework the deal.

Pressed on which country proposed the alternative plan first, Quinn said:

double quotation markAustralia’s position is that we would have always … had a preference for three in-service [submarines].

A surprised Paterson asked why the Albanese government accepted the original deal if that wasn’t its preference.

double quotation markThey imposed a new submarine on us and said you must take a new submarine even if you want three in-service?

Quinn replied:

double quotation markThis is a joint exercise over many decades, working collaboratively with an alliance partner to deliver a capability which is significant and is very important for Australia’s national defence. So there are many reasons why three in-service [submarines] would be simpler, lower-cost through the training of staff, the sustainment arrangements, the maintenance requirements, and all of those considerations.

Australian defence minister Richard Marles, centre, walks alongside US and UK counterparts Pete Hegseth (L) and John Healey (R) at the US embassy in Singapore
Australian defence minister Richard Marles, centre, walks alongside US and UK counterparts Pete Hegseth (L) and John Healey (R) at the US embassy in Singapore. Photograph: Edgar Su/Reuters
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Key events

Government distances falling house prices from tax changes

Katy Gallagher says that she knows tax reform is hard, and is trying to distance the proposed changes to capital gains tax and negative gearing from cooling and falling house prices around the country.

Facing public backlash over the reforms, the government has focused its messaging around doing the “right” thing rather than the “easy” thing – which is the line Gallagher is using too.

Gallagher says there’s a lot of support for maintaining and protecting the status quo, “but we don’t think that’s the right approach to take with all the information we have”.

double quotation markI’m not really a commentator on house prices … the tax reform that we have announced, the Treasury expects that it will have slightly about 2% slower growth on house prices. But there are other factors that contribute to house prices and auction clearance rates. For example, some of the interest rate increases that we’ve seen in recent months.

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