The base would serve as a ground station for communications with American military forces throughout the world, Foreign Minister Alexander Downer told parliament.
Australia already hosts a major satellite communications base at Pine Gap outside Alice Springs, which is jointly manned with the United States.
"These facilities are fundamental in underpinning and giving practical effect to the US alliance, and the government is strongly committed to the alliance as the key guarantee to our nation's security," Downer said.
This will be useful for projecting power throughout the western Pacific and the Indian Ocean. Useful to America, Australia, and our allies.