Prime Minister Anthony Albanese is set to confirm the mammoth investment along with his deputy Richard Marles, Defence Personnel Minister Matt Keogh and Western Australia's premier Roger Cook in WA on Sunday.
The money will go towards the delivery of a Defence precinct within the maritime hub on Cockburn Sound in Perth's south.
The design of the Henderson facility will aim to deliver continuous shipbuilding and reinforce Australia's AUKUS capacity.
Mr Albanese is expected to outline expectations the precinct will support 10,000 direct jobs over the next two decades and provide opportunities for small and medium WA businesses.
"Today's investment is another way we are delivering record defence funding to bolster Australia's capabilities," he will say.
"There is no greater honour than serving our country in our nation's uniform and my government is dedicated to investing in the defence capabilities our nation requires."
The $12 billion will in fact amount to a down payment for Henderson, with independent planning and advice indicating it will consume about $25 billion over the decade.
The initial funding will go to kick-starting early works while more detailed planning and designs are finalised.
It will underpin the construction of ADF surface vessels, starting with Army landing craft and then the local construction phase of Australia's future general purpose frigates.
Facilities will also be built to support surface combat vessels and docking capabilities for conventionally-armed but nuclearÂ-powered submarines from the early 2030s.
The undertakings will clear the decks for delivery of Australia's first Virginia-class submarine.
Mr Marles says the government is continuing to increase defence spending to record levels.
"In less than a year from our announcement to establish the Defence precinct at Henderson ... we are announcing additional funding to start delivering on key programs for the Australian Defence Force."
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