Australia has announced detailed plans for its future surface fleet comprising a new class of 7-11 general-purpose frigates and a reduction in the number of Hunter-class frigates configured for anti-submarine warfare from nine to six. The pivot forms part of a wider strategy to lift the capabilities of the Royal Australian Navy to meet emerging threats.
The surface combatant fleet review also supports the procurement of six Large Optionally Crewed Surface Vessels. These would be built in Australia through formal engagement with the US Navy, and be fitted with 32 Vertical Launching System cells to greatly enhance the Navy’s anti-air warfare and surface strike capabilities.
Defence Minister Richard Marles emphasized the accelerated development of the DDG Aegis combat system upgrade from baseline eight to nine and Tomahawk missile launch capability for Hunter-class frigates. Planning will also start for the eventual replacement of DDGs as part of the 2026 National Defence Strategy.
“The independent analysis underscored the necessity for immediate and timely action to remediate Navy’s surface combatant capability and support Australia’s continuous naval shipbuilding and sustainment industry,” Marles wrote in the review’s foreword.
The review also cuts the number of Arafura-class Offshore Patrol Vessels from 12 to six and provides for their role to shift towards civil maritime security operations and greater regional engagement in the Southwest Pacific and maritime Southeast Asia. This would reduce the force to 25 minor war vessels comprising six Arafuras, eight Evolved Cape-class patrol boats for the Navy, and 11 for the Australian Border Force.
It had been intended that the Tier 1 surface combatant fleet was to be three Hobart-class destroyers and nine Hunter-class frigates to replace the aging Anzac-class frigate. Now some will be progressively retired with others upgraded under the Transition Capability Assurance Program to enhance their undersea warfare and multi-domain strike capability.
“The reduction in Tier 1 surface combatants from 12 to nine necessitates the acceleration of the replacement Destroyer to ensure continuous naval shipbuilding at the Osborne Naval Shipyard in South Australia,” the review said. Initial requirements setting and design work is to start by mid-2027.
Following this review, the Government has accepted that it must accelerate the procurement of 11 general-purpose frigates to mitigate risks brought about by an aging and increasingly fragile surface combatant fleet. The four types of vessels identified as possible contenders include the German Meko A-200; a new variant of the Anzacs; the Spanish Navantia ALFA3000; and most interestingly, the Japanese Mogami 30FFM, as well as the Korean Daegu class FFX Batch II and III.
Independent analysis, undertaken by retired US Navy Vice Admiral William Hilarides, former Australian Department of Finance Secretary Rosemary Huxtable, and former Commander Australian Fleet Vice Admiral Stuart Mayer found that the current and planned surface combatant fleet was inadequate for Australia’s strategic environment. Major surface combatants of the Royal Australian Navy-the three Hobarts and eight Anzacs-are, in fact, the oldest fleet in its history.
He listed second order: a surface fleet with integrated air and missile defense, multi-domain strike, and undersea warfare. “These are the capabilities needed to support critical activities, including patrolling our northern approaches, close escort, and theatre sea lift missions,” he said.
It also revealed more than US$25 billion in unfunded cost pressures within the surface fleet acquisition and sustainment program. The Government committed, in the 2024-25 Federal Budget over the next decade, to an increase in Defence funding, including an additional $11.1 billion to support the realization of the enhanced lethality surface combatant fleet.
The Navy’s Chief, Vice-Admiral Mark Hammond, highlighted how this review could achieve the Navy’s intended goal to defend Australia: “A strong Australia relies on a strong navy, one that is equipped to conduct diplomacy in our region, deter potential adversaries, and defend our national interests when called,” Hammond said.