Defence
Accommodation — supplementation for the purchase of Defence Housing Authority services
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | - |
The Government will provide the Department of Defence with additional funding of $108 million in 2004-05 and $88 million in 2005-06 to meet increased rental costs associated with commercialising Defence Housing Authority operations in line with the Government’s competitive neutrality policy. The additional funding is expected to be budget neutral as the Defence Housing Authority will return additional funds to the Government through increased dividends and tax equivalent payments.
Coastal surveillance — continuation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 16.0 | - | - | - |
The Government will provide $16 million in 2004-05 for Australian Defence Force deployment costs associated with the continuation of coastal surveillance of Australia’s northern approaches to help detect and deter unauthorised boat arrivals.
Defence Capability Review — operational cost savings
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | -70.7 | -69.2 | -79.2 |
| Related capital ($m)Department of Defence | - | -9.3 | -28.3 | -29.9 |
Operational cost savings of $286.5 million (including capital of $67.5 million) over three years will be achieved from changes to capability decided by the Government as part of the comprehensive Defence Capability Review. The capability changes include the early retirement of the F-111 fleet and the retirement of two mine hunters and two frigates. The savings continue beyond 2007-08.
Defence Procurement Review — implementation of recommendations
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 12.2 | 5.0 | 5.0 | 5.0 |
The Government will provide $32.5 million over five years (including $5.3 million in 2003-04) to improve capability development and acquisition processes within the Department of Defence. These improvements were recommended by the Defence Procurement Review (also known as the Kinnaird Review). They include the establishment of a Capability Development Group within the Department and the development and operation of the Defence Materiel Organisation as a prescribed agency under the Financial Management and Accountability Act 1997.
East Timor — support to the United Nations mission
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 16.0 | 4.1 | - | - |
| Australian Federal Police | 6.5 | - | - | - |
| Total | 22.5 | 4.1 | - | - |
The Government will provide $26.7 million over two years to fund an expected extension of the Australian Defence Force and Australian Federal Police contribution to the United Nations mission in East Timor. This funding will cover operational costs as well as the repatriation and remediation of Defence equipment.
Estate upkeep
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | 90.0 | 100.0 | 110.0 |
The Government will provide $300 million over three years from 2005-06 to meet increasing costs of maintaining the Defence estate. The additional funding will help Defence to increase its rate of effort in maintaining facilities such as airfields, fuel farms and Defence bases. Funding will also be used for accelerated asbestos remediation, and to meet increased environmental and occupational health and safety regulatory requirements.
Iraq — funding for operations and rehabilitation activities
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 124.6 | 3.0 | 4.0 | - |
The Government will provide $131.6 million for the Australian Defence Force’s contribution to Iraqi stabilisation and reconstruction. This will allow for continuation of the deployment through financial year 2004-05. The funding for 2005-06 and 2006-07 covers the cost of repatriation and remediation of equipment. The current timeframe for, and composition of, Operation CATALYST will be kept under review.
Logistics — additional funding
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 142.1 | 146.7 | 158.4 | 163.1 |
The Government will provide an additional $610.3 million over four years for logistics support to the Australian Defence Force (ADF). The increased funding will enable enhanced maintenance, refits, and/or planned upgrades for a range of key platforms and equipment to ensure the ADF sustains its capabilities and meets preparedness requirements. The specific platforms and equipment to benefit from the funding include:
- Afloat Support (HMAS Success refit);
- Maritime Patrol Aircraft (P-3C Orions);
- ANZAC Frigates;
- Training Aircraft (PC-9);
- Naval Aviation;
- Army Aviation (Black Hawk helicopters);
- Army Surveillance;
- Army Battlefield Combat Support System; and
- Transport Aircraft (C-130H Hercules).
The supplementation stems from a Defence-wide review of logistics funding aimed at ensuring that the ADF’s platforms and equipment are resourced to help sustain performance at the current levels of preparedness.
See also the related expense measure titled Logistics — continuation of funding in the Defence portfolio.
Logistics — continuation of funding
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | 205.3 |
The Government will provide $205.3 million in 2007-08 for logistics support to help enable the Australian Defence Force to sustain current levels of operational tempo and to meet specific preparedness targets. This decision will provide funding for a range of platforms and equipment, including:
- F/A-18 fighter aircraft fleet;
- C-130J Hercules transport aircraft;
- Collins class submarines; and
- Explosive ordnance stocks, including those required for enhanced training of Army personnel.
This funding represents a continuation of the $1.145 billion provided in the 2003-04 Budget for logistics. This funding is in addition to the $27 billion over 10 years provided as part of the Government’s Defence 2000 White Paper. The White Paper funding was provided primarily to undertake the equipment acquisitions and upgrades necessary to enhance the capabilities of the Australian Defence Force.
See also the related expense measure titled Logistics — additional funding in the Defence portfolio.
Military personnel — supplementation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 6.8 | 57.0 | -6.5 | 22.7 |
The Government will provide $80 million over four years to meet increasing Australian Defence Force personnel costs. The additional funding will help Defence continue to offer competitive levels of remuneration, including non-salary entitlements, such as health, housing and compensation. This will assist in both attracting and retaining suitably skilled military personnel for the Australian Defence Force.
This measure is in addition to the Government’s Defence 2000 White Paper which funded two per cent per annum real growth in Defence’s per capita personnel costs over the 2004-05 to 2010-11 period.
Papua New Guinea Defence Force — funding to support downsizing
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 10.9 | 2.7 | - | - |
The Government will provide $20.3 million (including $6.7 million in 2003-04) to assist the downsizing of the Papua New Guinea Defence Force. Of the funds provided in 2003-04, $3 million will be absorbed from within the existing funding from the Defence Cooperation Programme.
This measure represents the planned second tranche of funding to support the Papua New Guinea Defence Force reform programme and builds upon the first tranche of $20 million provided in 2001-02.
Personnel initiatives — continuation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | - | 10.6 | 10.8 |
The Government will provide $21.4 million over 2006-07 and 2007-08 to continue a number of personnel initiatives that have proven highly effective in improving conditions for Australian Defence Force members and their families. These initiatives include the provision of childcare places and support to spouses.
A number of other personnel initiatives are also being funded in this Budget. See also the related expense measures titled Personnel initiatives — expansion of rental assistance and Personnel initiatives — improvements to living-in accommodation in the Defence portfolio.
Personnel initiatives — expansion of rental assistance
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | 59.3 | 91.1 | 92.9 |
The Government will provide $243.3 million over three years from 2005-06 to help provide greater flexibility for Australian Defence Force members without dependants in their accommodation arrangements. This measure will increase the number of members without dependants receiving rent assistance from 4,500 to around 10,600 by 2006. Rent assistance has been successful in improving the accommodation available to members without dependants, which in turn is likely to improve retention.
A number of other personnel initiatives are also being funded in this Budget. See also the related expense measures titled Personnel initiatives — continuation and Personnel initiatives — improvements to living-in accommodation in the Defence portfolio.
Personnel initiatives — improvements to living-in accommodation
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 2.0 | 12.5 | 37.1 | 61.6 |
The Government will provide $113.1 million over four years for the renewal and repair of living-in accommodation for Australian Defence Force members without dependants. Funding in 2004-05 will allow the most effective means of improving the standard of accommodation to be determined.
A number of other personnel initiatives are also being funded in this Budget. See the related expense measures titled Personnel initiatives — continuation and Personnel initiatives — expansion of rental assistance in the Defence portfolio.
Point Nepean Community Trust — establishment
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | - |
The Government has committed $5 million in 2003-04 to establish the Point Nepean Community Trust. The Trust has been established to manage former Defence land at Point Nepean in the interests of the community. The Trust will be responsible for preserving the environment and heritage values of the site.
Property sales — costs
| 2004-05 | 2005-06 | 2006-07 | 2007-08 | |
|---|---|---|---|---|
| Department of Defence | 25.5 | - | - | - |
The Government has provided $31.8 million in 2003-04 for the costs associated with selling surplus Defence properties in 2003-04.
The Government will also provide $25.5 million in 2004-05 to meet the estimated net costs of selling surplus properties in 2004-05. This will involve applying a lower Defence property sales target threshold, above which Defence is entitled to retain the proceeds of property sales for other uses.