Australian Government, 2006–07 Budget

Defence

Afghanistan — contributing to a Provincial Reconstruction Team
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 88.7 96.6 23.3 -
Related capital ($m)
Department of Defence 2.8 2.8 4.0 -

The Government will provide $218.2 million over three years (including $9.6 million in capital funding over three years) to deploy an Australian Defence Force reconstruction task force in support of a Netherlands-led Provincial Reconstruction Team in southern Afghanistan.

This measure is part of the Government's contribution to stabilisation and reconstruction activities in Afghanistan. See also the related expense measure Kabul - establishing an Australian diplomatic presence in the Foreign Affairs and Trade portfolio.

Further information can be found in the press release of 21 February 2006 issued by the Prime Minister.

Afghanistan — providing aviation support
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 14.6 - - -

The Government will provide $57.6 million over two years (including $43.0 million in 2005-06) for a Chinook helicopter deployment to Afghanistan. The deployment, which commenced in March 2006, will provide additional aero-medical evacuation and air mobility support to both Australia's Special Forces Task Group and to the initial stages of a Provincial Reconstruction Team contribution. The aviation support consists of two Chinook helicopters and around 110 associated personnel.

Further information can be found in the press release of 21 February 2006 issued by the Prime Minister, and the press releases of 30 November 2005 and 10 January 2006 issued by the Minister for Defence.

Army Reserves — increasing remuneration
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 36.1 46.9 46.8 51.8

The Government will provide $181.6 million over four years to improve remuneration for the Australian Defence Force's Active Reserve to attract and retain personnel. The initiative is consistent with the Government's decision on a Hardened and Networked Army and includes funding for the establishment of the High Readiness Reserve.

This measure results from the review of reserve remuneration arrangements announced on 5 October 2004 as part of the Government's election commitment Defence — A Force for the New Century.

See also the related expense measure Hardened and Networked Army — phase 2 in the Defence portfolio.

Australian Defence Force — recovering workforce strength
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence - - - -

The Government will provide $68.0 million in 2006-07 for a variety of recruitment and retention initiatives to help attract and retain skilled military personnel for the Australian Defence Force. This measure also provides for a temporary increase in civilian staff in non-combat roles, including management and personnel services.

The cost of this measure will be met fully from within the existing resourcing of the Department of Defence.

Australian Defence Force command and control structure — rationalisation
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence -5.9 -12.7 -20.5 -31.0

The Government will realise savings of $70.1 million over four years through a restructuring of Australian Defence Force higher command and control arrangements. The rationalisation and reallocation of personnel will help improve the efficiency and effectiveness of these arrangements.

Coastal surveillance — continuation
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 12.1 - - -

The Government will provide $12.1 million in 2006-07 for costs associated with the Australian Defence Force (ADF) continuing coastal surveillance of Australia's northern approaches to detect and deter unauthorised boat arrivals. This allocation brings the Government's net additional commitment towards this ADF activity to $103.3 million since 2001-02.

Coastal surveillance — increased patrolling of maritime approaches
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 23.5 23.8 23.9 24.4

The Government will provide $95.6 million over four years to increase surveillance and patrolling of high threat maritime approaches to Australia to deter unauthorised boat arrivals by reactivating and deploying two Australian Defence Force Huon Class Mine Hunter Coastal vessels.

Defence capability — heavy airlift
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 792.3 517.6 318.5 121.2
Related capital ($m)
Department of Defence - - 41.7 127.3

The Government will provide $2.2 billion over six years (including $316.0 million in 2010-11 and 2011-12) to acquire new C-17 heavy airlift aircraft for the Australian Defence Force (ADF). The cost of this measure will be partially offset by $335.3 million (in the years 2011-12 to 2013-14) from funding for unapproved projects in the Defence Capability Plan.

This measure will significantly enhance the ADF's airlift capability. This will enable the rapid deployment of armoured vehicles, helicopters and supplies to areas of operations, and increase the ADF's capacity to provide humanitarian assistance and emergency support. This measure includes $266.3 million in capital funding over three years from 2008-09 for facilities elements.

Further information can be found in the press release of 3 March 2006 issued by the Minister for Defence.

Defence funding beyond 2010-11
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence - - - -
Related capital ($m)
Department of Defence - - - -

The Government will provide $10.7 billion (including $0.6 billion in capital funding) over five years from 2011‑12 to 2015‑16 which includes increased investment in the acquisition and operation of military capability and the sustainment of the Defence military and civilian workforce.

This major funding decision (based on 3 per cent real annual growth over five years) will provide a firm basis for Defence planning for the next 10 years. This measure builds upon the significant funding increase provided in the 2001-02 Budget for the 10 years to 2010-11 to provide improvements to capability announced in the Defence 2000 White Paper.

This measure includes $2.4 billion for the acquisition of major specialist military equipment in the Defence Capability Plan.

Defence Headquarters Joint Operations Command — delivering through a public private partnership
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence nfp nfp nfp nfp

The Government will deliver, through a public private partnership, the new purpose-built facilities, infrastructure and services components of the Headquarters Joint Operations Command project near Bungendore, New South Wales.

Subject to final contracting terms being settled, the preferred tenderer will build, operate and maintain the new headquarters facility for a 30-year period. Construction is expected to commence in 2006 for completion in late 2008.

The Department of Defence will retain responsibility for the procurement, installation and maintenance of the command and control systems at the facility.

Defence housing — supplementation for competitive neutrality policy
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence - - - -

The Government will provide additional funding of $78.0 million in 2006-07 to meet the increased costs associated with commercialising Defence Housing Authority (DHA) operations. The Government's competitive neutrality policy, which aims to ensure that significant government businesses do not enjoy net competitive advantages simply by virtue of their public ownership, requires the DHA to earn a commercial rate of return on its services.

The DHA is a government business enterprise operating within the general government sector and returns an equivalent amount of funding to the Government through increased dividends and tax-equivalent payments. There is therefore no net effect on the Budget.

Efficiency dividend — broadening of the application in Defence
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence -4.5 -11.2 -20.1 -29.0

The Government will realise savings of $64.7 million over four years by broadening the coverage of the efficiency dividend to a range of civilian and non-operational areas in the Department of Defence that are currently not subject to the efficiency dividend.

This measure increases the level of coverage from the current 8 per cent to approximately 14 per cent of Defence departmental expenditure.

Hardened and Networked Army — phase 2
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 24.1 27.9 31.7 35.1
Related capital ($m)
Department of Defence - 40.1 120.4 161.4

The Government will provide $1.5 billion over ten years from 2006-07 (including $1.1 billion over six years from 2010-11) as part of an initiative to enhance the Army's protection and improve its firepower, speed, precision and information capability. The initiative also provides for the relocation of Army's 3rd Battalion, the Royal Australian Regiment from Sydney to Adelaide. This measure includes $656.5 million in capital funding over six years from 2007-08 (including $334.8 million over three years from 2010-11) to upgrade facilities at Defence bases.

Further information can be found in the press release of 15 December 2005 issued by the Minister for Defence.

Iraq — funding for stabilisation and reconstruction activities
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 265.5 49.4 13.7 -
Related capital ($m)
Department of Defence 44.5 17.7 1.9 -

The Government will provide $392.7 million over three years (including $64.1 million in capital funding) to continue the Australian Defence Force's contribution to stabilisation and reconstruction activities in Iraq as part of Operation CATALYST. This measure includes an extension of the deployments to the Al Muthanna Province of southern Iraq.

Logistics — additional funding for naval aviation
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence 26.2 - - -

The Government will provide $26.2 million in 2006-07 to address logistics requirements for naval aviation. This measure will enable enhanced maintenance, refits, and planned upgrades for Navy helicopters to ensure the Australian Defence Force sustains its capabilities and meets preparedness levels.

Military Superannuation Schemes — removal of inequities
Expense ($m)
2006-07 2007-08 2008-09 2009-10
Department of Defence - - - -

The Government will amend the eligibility rules for reversionary provisions in military superannuation schemes at an estimated cost of $0.6 million over four years. These amendments will align military superannuation schemes with the phase-in provisions of civilian superannuation schemes.

The cost of this measure will be met fully from within the existing resourcing of the Department of Defence.

 

Miscellaneous