Acting Prime Minister Richard Marles and Premier Peter Malinauskas announced the details at the future submarine construction yard site in Osborne this morning, saying Australian Naval Infrastructure will progressively take ownership of key land parcels at that site from December this year.

Land at Osborne will also be secured by the federal government for the Skills and Training Academy to educate and train up to 4000 workers in the national submarine and naval shipbuilding workforce.

In turn, the State Government gets ownership of defence-owned land at Keswick and Smithfield, as well as 15,000 ha at the Cultana Training Area north of Whyalla, already flagged for hydrogen and renewable energy projects.

Marles and Malinauskas today said that 15 per cent of future dwellings at Keswick will be reserved for affordable housing, while the Smithfield development will target a minimum of 40 per cent.

At Smithfield, the 38ha parcel of land immediately behind the Munno Para Shopping Centre is currently used for Defence Force cadet training and is well connected to public transport.

Keswick Barracks land and the Smithfield site will now undergo master planning over the next three years as land is transferred for proposed urban renewal, including increased housing supply or mixed-use development.

The Keswick land swap plan was already announced by government, prompting discussion about future use of the 12.8-hectare site that is home to an array of Defence Department buildings, including a prominent, three-storey army headquarters facing the intersection of Anzac Highway and Greenhill Road. It was built in 1912-13 and state heritage listed in 1990.

Today, Malinauskas said the Keswick site alone “represents a transformational opportunity for an urban renewal project” close to the CBD.

“The South Australian Government hands over just over 60 ha to the Federal Government… in return the SA government is getting over 15,000 ha from the Commonwealth,” he said.

“This agreement helps unlock thousands of high-quality, high-paying jobs in industries from shipbuilding to hydrogen, from Osborne to the Upper Spencer Gulf, and right across our economy.

“It will also help us deliver thousands of new, well-located homes for thousands of South Australians.”

Work at the Osborne submarine construction yard will begin this year as the design is developed, before commencing the build of the nation’s first SSN-AUKUS submarines.

A further 4000 to 5500 jobs are expected to be created for the build of the SSN AUKUS in South Australia when the program reaches its peak.

Leaseback arrangements are in place for the Keswick and Smithfield sites – to allow Defence services and personnel to gradually relocate to alternative facilities over three years.

Defence will maintain unrestricted access on the balance of the Cultana Training Area to enable critical ADF training exercises and operations can continue

Marles described the agreement as a significant milestone in transforming Osborne “into one of the most advanced technical hubs in the world”.

“Osborne is key to Australia’s nuclear-powered submarine enterprise and I congratulate and thank South Australia for being such a great partner as we continue to work together to deliver the necessary infrastructure and skills,” he said.

“The future Skills and Training Academy at Osborne will provide Australian workers with the advanced skills and training required to deliver a world-leading future submarine capability.”