The federal government finally has the keys to the Hobart, the first of three air warfare destroyers to serve as the nation's frontline defence against aircraft and missile attacks.
The 6250-tonne destroyer has been handed over to the government at a ceremony in Adelaide, with Defence Industry Minister Christopher Pyne describing it as the most lethal of its kind.
Some final trials remain before the ship officially becomes part of the Australian Navy's fleet.
Mr Pyne says the Hobart and its two sister ships will help ensure Australia's national security "giving us the capability for forward defence which makes us a better ally, more capable of defending our interests at home and abroad".
"Importantly, these ships will provide a safer environment for Australia's entire defence force," he said.
"They have the ability to move faster for longer, whilst forming a protective bubble around themselves and other assets."
The 7000 tonne Hobart will have a crew of 186, a top speed of 28 knots and a range of 5000 nautical miles, or more than 9000 kilometres.
It will be followed into service by the second and third destroyers, the Brisbane and the Sydney.
The Brisbane was lowered into the water in Adelaide in December and will undergo sea trials later this year before being handed over to the navy in 2018.
The Sydney is expected to become part of the navy fleet in early 2020.
The $9 billion project has run about $1 billion over budget and has also taken longer than originally expected.
But Mr Pyne says it must still be regarded as a success and the workers at ASC should be proud of what they have achieved.
"It is a very exciting time to be in naval shipbuilding and today marks a very important milestone," the minister said.
However, the handover comes as jobs continue to be lost at ASC in Adelaide, with the destroyer program winding down, leaving a gulf ahead of the start of construction of the offshore patrols boats towards the end of 2018, and later the navy's new frigates and submarines.
SA Defence Industries Minister Martin Hamilton-Smith says the success of the destroyer program demonstrated the state's ability to build a workforce capable of successfully producing complex warships.
Mr Hamilton-Smith says to protect that workforce, the federal government must now mandate 90 per cent Australian industry participation in all its future shipbuilding plans.
