Image: Australian Submarine Agency
South Australia’s first dedicated State Development Area could be established at Osborne, as the State Government looks to guide future development around one of the nation’s most significant defence and industrial precincts.
The state government is investigating the declaration of a new State Development Area on the Lefevre Peninsula to support major projects of state and national significance, including the construction of AUKUS nuclear-powered submarines.
The move would allow the newly established Office of the Coordinator General to become the central point for coordinating planning, infrastructure and development approvals across the area.
Osborne is already undergoing major change, with the shipyards set for a $30 billion expansion to support the nuclear-powered submarine construction yard. At the peak of the AUKUS program, an additional 15,000 workers per day are forecast to be in the area.
Premier Peter Malinauskas said Osborne was already at the centre of Australia’s naval shipbuilding and defence industry.
“Osborne is already at the heart of Australia’s naval shipbuilding and defence industry, and we know the Federal Government will need to deliver $30 billion in additional infrastructure to be able to build the most complex machines in the world in nuclear powered submarines,” he said.
“To capitalise on this massive economic opportunity, the billions of dollars investment and thousands of highly skilled jobs that come with it, we need to operate with appropriate coordination, planning and urgency.
“That is why we have legislated for a Coordinator General, and why we will establish Osborne as South Australia’s first State Development area.”
The proposed SDA would cover industrial areas along the east and north coasts of the Lefevre Peninsula, the North Arm of the Port River, Torrens Island and Gillman.
It would not include residential areas on Lefevre Peninsula, or the environmentally protected Torrens Island Conservation Park and Barker Inlet-St Kilda Aquatic Reserve.
The area is also home to major energy assets, fuel storage and delivery facilities, industrial and manufacturing supply chains, and South Australia’s primary shipping container terminal.
The Coordinator General would be able to help streamline zoning, planning and development approvals, coordinate essential infrastructure, and support projects of state priority.
Minister for State Development Chris Picton said the proposal recognised Osborne’s strategic importance.
“The creation of a State Development Area recognises Osborne’s role as one of South Australia’s most strategically significant economic and industrial precincts,” he said.
“With billions of dollars of investment flowing into Osborne and thousands of additional workers expected in the area, it is important we have the right planning and coordination framework in place.
“This demonstrates this Government’s commitment to work with the community and industry to support the ongoing delivery of AUKUS.”
The State Government says the SDA is expected to support job creation, attract investment, broaden industry activity and deliver long-term economic benefits.
Broader community benefits could include improved infrastructure, increased business activity, stronger local employment pathways and opportunities to support future housing and community development.
Coordinator General of South Australia Andrew McKeegan said the SDA would allow smarter and more efficient planning across the precinct.
“Creating a State Development Area (SDA) allows government to make decisions in a coordinated, consistent way and provides clarity for everyone who lives, works or invests in and around the area,” he said.
Residents, landowners, businesses and industry stakeholders are now being encouraged to review the proposed boundary and provide feedback.
Consultation opens at 9am on Friday June 26 and closes at 9am on Friday August 7, 2026, via YourSAy.
Following consultation, feedback will be considered before the SDA is formally established under the State Development Coordination and Facilitation Act 2025. A draft SDA Plan is expected to be developed later in 2026, with further opportunities for community input.
