An Australian public inquiry has urged the government to terminate the Aukus nuclear submarine plan, describing the $368bn agreement with the United States and the United Kingdom as the “worst, riskiest and most costly” defence decision made by an Australian government. The report also recommends suspending plans for new bases and establishing a royal commission into the deal, negotiated by the former Morrison government.

Titled Surrendering Australia: the Aukus Deception, the report was led by former Labor MP Peter Garrett and former chief of defence Adm Chris Barrie. It argues that the submarine plan could draw Australia into conflict with China, weaken the country’s sovereignty and undermine commitments to nuclear non-proliferation. The inquiry also calls for a rethink of Aukus’s technology-sharing pillar and a fundamental recalibration of Australia’s relationship with Beijing.

The inquiry, which held hearings around the country and received more than 1,000 public submissions, says the agreement has lacked sufficient scrutiny and oversight. It recommends independent reviews by the auditor general and federal parliament. Garrett said the Albanese government had not conducted a thorough review of the agreement, while Barrie called for the submarine plan to be scrapped and national security decision-making to be rebuilt.

The report warns that the Stirling defence precinct in Perth could become a de facto US base hosting up to 2,000 American personnel, with nearby communities potentially exposed to attack. The inquiry also estimates that an additional $180bn may be needed to manage nuclear waste from the program, based on evidence it received. No official estimate for waste costs has been published, and Australia has not identified a permanent storage site.

Under the deal, Australia is funding upgrades to the US defence industrial base and is expected to begin receiving secondhand Virginia-class submarines around 2032. The report notes doubts about delivery amid delays and rising costs in submarine production for the US Navy. The Australian-built SSN Aukus model is scheduled to enter service in 2042.

The inquiry was launched by unions, not-for-profit organisations and former officeholders, with $220,000 in public donations, amid frustration over limited parliamentary scrutiny. The government has dismissed it as a stitch-up by critics. A spokesperson for Defence Minister Richard Marles said Aukus remains a core pillar of the Albanese government’s national security policy, pointing to the 2026 National Defence Strategy and the need for greater defence capability.

Labor Against War welcomed the report. Its patron, former senator Doug Cameron, criticised the government for committing billions to the US military while Australians face cost-of-living pressures, unemployment, inflation and high interest rates.

Sources: The Guardian World.