The arguments for the LCS make good sense for the USN. It needs to replace it's FFG fleet. Australia does not. Nor do we need to replace the ANZAC frigates, the last of which is not yet even in operational service, or the Huon Class Mine Hunters, of which the oldest is only around 7 years old.
To purchase and crew a new fleet of warships, we would need to retire our ENTIRE fleet of surface combatants, somehow find the funds to replace 12 major surface combatants (most of which are less than 5 years old) plus 6 Huon Class minehunters. This decision would also have to cancel all the TLS contracts signed for these vessels which would no doubt cost the Commonwealth heavily in penalties.
All for the dubious benefit of introducing a class of vessel into RAN service, which provides less overall capability than any of the vessels it's replacing.
USN doesn't need a new frigate. It has over 60 AB Class Destroyers, it's looking to acquire new DD(X) class destroyers and 27 Ticonderoga Class crusiers,. It has ALL the surface capacity it could ever need. It would gain little by adding new frigates.
The RAN however DOES not have this sort of capability and even our new AWD project will only provide 3 vessels. With a fleet this small, there will rarely be more than 2 vessels operational at any one time.
How are we supposed to operate a surface combatant fleet? LCS "may" be able to be fitted with ESSM, but this has not been included in either of the designs rolled out so far. The 57mm gun is significantly less capable than either the 76mm gun on the FFG's and the 127mm gun on the ANZAC class. RAM provides a limited self defence capacity, it does not provide a "control of the air" capability.
ANZAC frigates already operate 127mm guns, ESSM, Harpoon II ASM's (plus the advanced Harpoon weapon control system), and 4x 0.50cal HMG's, fitted with "Mini-Typhoon" targetting systems, MU-90 torpedo's, and within the year should have a helo, armed with Penguin anti-shoip missiles and MU-90 torpedo's.
The CEA-FAR phased array radar and CEA-Mount continuous wave illuminator have been already been confirmed as part of their upgrade program. Additional Mk 41 VLS launchers and ESSM missiles, and a second layer of SAM capability with either Mistral or RAM are likely to be approved shortly.
FFG's are currently undergoing their upgrade and will be soon equipped with SM-2, ESSM, Harpoon II, a 76mm super rapid gun, Phalanx CIWS, 4x 0.50cal HMG's (plus "mini-typhoon") and MU-90.
LCS really doesn't quite stack up and meet RAN's needs if you ask me. Accepting LCS would virtually eliminate any ability to operate where AWD's aren't present. Replacing the ANZAC's and FFG's would eliminate the majority of RAN's anti-surface, anti-air, ASMD and anti-sub capability.
All we would get in replacement, is a patrol capability, a limited surface/land attack capability and a limited self-defence capability for the majority of our surface combatants. Something the RAN is hardly likely to be willing to give up...
Here's a diagram of the LCS's proposed capabilities. There's very little there, that ANZAC's don't already have, or already possesses greater or greater planned capabilities:
http://www.naval-technology.com/projects/littoral/images/LCS_7.jpg