Australia's $40 billion future submarine project was left out of a key consultant's report on the local shipbuilding industry on the instructions of the Abbott government.
The revelation made by the report's author, RAND Corporation, on Thursday raises fresh questions about how far the government had progressed last year in its plans to have Japan build the next fleet of submarines, despite a pre-election promise they would be built here.
But the report strikingly left the future submarine project out of its calculations, concentrating instead on surface warship such as new frigates and patrol boats.
When asked why, lead researcher John Birkler told reporters submarines had been "specifically excluded" from RAND's terms of reference by the Abbott government.
"We were asked not to include submarines," he said.
Mr Birkler went on to indicate that RAND had been told by the government last year that Australia planned to build its submarines offshore.
"That was the strategy that was under consideration for the future submarine at the time we did the study - to build it offshore," he said.
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