With possible conflict against Indonesia about Western New Guinea in mind, Australia again decided to augment its RAAF.
So they ordered 15 Transall C-160 ( like UK has done previous year ), and also ordered 8 Shorts Belfast aircrafts from UK.
That aircrafts will significantly agument australian military capabilities in possible conflict.
Fleet of Douglas C-47 and Blackburn Beverley will stay in service until greater numbers of new aircrafts are bought.
In the same time, australian aircraft carrier HMAS Melbourne has become to show its age, he was too small for modern fighters like US Phantom or british Hawker 1121 N.
In the same time, UK initiated a program of building of 3 new carriers to replace 5 older carriers. Program was known as CVA-01. So, when building of the first CVA began in 1964., australian government approached government of the UK to find out will they sell one of their old carriers HMS Ark Royal or HMS Eagle to Australia, after CVA class is brought into service in middle of 70s.
UK government had no objections about that.
After thorough analysis af both ships, Australians decided that HMS Eagle was in better condition and that he will be handed over to RAN for a token sum of money in 1970., and after that he will undergo a major refit in UK, where his life will be extended for another 10- 20 years. After his commissioning into RAN HMAS Melbourne will be converted into commando carrier.
So, australian government in the meanwhile decided to augment his fleet of amphibious assault ships, so they joined british program by ordering 2 ships of the Fearless class LPD.
And another version of this update could be like this:
Australian government decided that they can't afford carrier aviation, so they decided to concentrate on two things:
1) strong RAAF
2) strong naval amphibious forces
1) that meant that another 6 Vickers V-1001 tanker aircrafts were bought, and Australia also oreered 36 Vickers 589 stratehic bombers, that will replace Victors in strategic bomber role. Victors will remain in service, but as tanker aircrafts and ELINT/EW aircrafts, also, another 15 Transall C-160 were tio be ordered, after first 15 were delivered
2) Australia decided to enlarge his order for Fearless class LPDs, so they ordered 4 of them, and another class of 10 smaller ships ( something like oTL Balikpapan class )
Aircraft carrier HMAS Melbourne was to be scrapped by 1970. and australian fixed-wing naval aviation with him too...