The RAN’s $50bn Future Submarine programme, also known as SEA1000, is intended to provide the country with a regionally superior submarine capability.
Under the programme, 12 Attack-class submarines will be built domestically by local shipbuilders for the RAN.
Pyne said: “The Attack-class represents the inherent stealth, long-range endurance and lethality of a submarine.”
Australian Navy chief vice-admiral Michael Noonan added: “The Attack-class will meet the navy’s capability needs and help protect our security and prosperity for decades to come.”
The first submarine under the programme is expected to enter service in the early 2030s.
On 30 September 2016, the design and mobilisation contract was signed between the Australian Government and Naval Group to begin the Future Submarine programme’s design phase.
Pyne said: “I can also announce the negotiations between the Commonwealth and Naval Group on all key provisions of the strategic partnering agreement (SPA) have been completed.
“I congratulate everyone involved in achieving this significant milestone.”
The defence minister also noted that other activities that play a key role in delivering the programme on time are also continuing without interruption.
The SPA will oversee the delivery of the Attack-class submarines and will be signed early next year.
Earlier this year, the Australian Department of Defence awarded A$700m ($566.46m) contract to Lockheed Martin Australia to design, build and integrate the combat system of the Future Submarine programme.
Lockheed Martin is serving as the Future Submarine combat system integrator.