The federal government is spending more than $2.5 billion on 13 choppers for the Navy base at Nowra.

Of those, 12 will replace the Navy's existing MRH-90 Taipan fleet. The 13^th is a replacement for one of Albatross' previous Romeos, which was lost in the Philippine Sea last year.

HMAS Albatross will also receive an extra $360 million to build facilities to house the new Romeos; the first helicopters will arrive in 2025.

Minister for Defence Peter Dutton said the move to expand the Navy's Romeo fleet is part of planned upgrades.

"We're expanding the size and capability of our helicopters to meet the threats Australia faces," Minister Dutton said.

"We're following the 2020 Force Structure Plan that outlined the need to expand our naval operations in particular and the Romeo fits that role as a next generation submarine hunter and anti-surface warfare helicopter, and can also assist with search and rescue and transport like they have during recent bushfires and floods."

The federal government made the announcement late on Sunday evening, in conjunction with a $5.5 billion spend on AH-64E Apache Armed Reconnaissance helicopters for the Army.

By its estimates, the spend on new helicopters will create 290 new jobs within the two Defence Force agencies.

Minister for Defence Industry Melissa Price said according to the government's economic analysis, "the Romeo program would create 90 new jobs and support 510 workers locally."

Ms Price added that transitioning to a fleet of Romeos will make a difference to on-the-ground operations.

"Navy already operates Romeo helicopters and using a single type of helicopter for all maritime roles offers value-for-money and significant efficiencies," she said.

Prime Minister Scott Morrison said the government expects its spending to flow on to local businesses which supply Defence bases.

"The more than $8 billion we're investing in helicopters and facilities means 290 new jobs on the ground for electricians, mechanics and engineers to support their maintenance, along with hundreds more jobs in the small business supply chain that supports these fleets," he said.