Defence Minister Richard Marles has denied claims from the Opposition that the Scott Morrison government had been aiming for a lower figure of compensation to Naval Group for the government's cancellation of their submarine contract with France.
"That's just not true," Mr Marles told Sky News on Sunday.
"What we are seeing from the coalition weeks into their time in opposition is that they are just making stuff up now."
Australia will pay French company Naval Group about $830 million to settle a scrapped defence contract that would have seen it build submarines in South Australia.
Australia's fleet of Collins submarines were going to be replaced by a conventional fleet constructed by Naval Group but that deal was abandoned by the Morrison government, which decided to instead pursue nuclear-powered submarines under the AUKUS partnership.
The decision in September 2021 to scrap the $90 billion contract enraged the French government, resulting in a diplomatic stoush that included the recall of its ambassadors from Canberra and Washington.
Prime Minister Anthony Albanese said his government had reached a fair and equitable settlement with Naval Group that would "rule a line" under the torn-up contracts.
"It follows, as well, discussions that I've had with President (Emmanuel) Macron and I thank him for those discussions and the cordial way in which we are re- establishing a better relationship between Australia and France," Mr Albanese told reporters in Sydney on Saturday.
It was initially thought the about-face on the French deal would cost taxpayers up to $5.5 billion but Mr Albanese says the total has come down to $3.4 billion, taking into account money already paid.
"It still represents an extraordinary waste from a government that was always big on announcement but not good on delivery," he said.
He said some of the details of the settlement would remain confidential because of their commercial nature.
The prime minister hoped the settlement meant Australia could move forward in mending its relationship with France, describing that country as a partner for Australia with deep historical ties, especially in the Indo-Pacific region.
"I'm looking forward to taking up president Macron's invitation to me, to visit Paris at the earliest opportunity," Mr Albanese said.
