Prime Minister Scott Morrison rejected accusations that Australia had lied, saying France should have been aware it was prepared to break the deal.
France says the trilateral security pact between Australia, the UK and the US has led to a “serious crisis” between the allies.
As a sign of protest, France has recalled its ambassadors from the United States and Australia.
The AUKUS partnership ended a deal worth $37bn signed by Australia in 2016 for France to build 12 conventional submarines.
The pact means Australia will become just the seventh nation to operate nuclear-powered submarines.