Realistically if Australia wants V-boats, SSN-AUKUS and an expanded surface navy - not to mention all the new investment in air and land assets - it's going to require an increase of defence spending above what is currently suggested. 2% of GDP is not going to cut it, it probably means 3% at least.
As for using the submarines in time of war with China, what's the point of having SSNs if they're to be used only if someone tries to invade Australia? You might as well have more, cheaper conventionally-powered submarines. I appreciate that the Australian government doesn't want to paint China as an enemy, but it's painfully obvious that the point of having nuclear-powered submarines is to deter Chinese aggression and if necessary sink Chinese ships a considerable distance away from Australia. A private assurance that the RAN would be helping the USN, JMSDF, etc if Taiwan were attacked would only be what is realistically understood to be the case now.
Also, from the same article.
The Pentagon last week moved to pause weapons deliveries to Ukraine at Colby’s urging, but Trump reversed the move just days later. Foreign policy chaos in the White House has made it difficult for Australian officials to gauge how much impact the undersecretary’s review will have.
One senior Australian official said Colby’s scepticism about selling submarines was not widespread.
“People are mistaking Colby as being the only driver of opinion in the US,” the source said, on condition of anonymity. “He’s an important voice but not the only voice. There are multiple views about AUKUS within the US administration.”
Jennifer Hendrixson White, a former US official who was lead negotiator for the AUKUS legislation in the Senate, also indicated Rubio’s department was caught off guard by Colby’s review, and said the State Department and Congress supported AUKUS. She said leasing rather than selling the submarine was a subject of intense debate when the legislation was passed.