Enhancing defence capabilities

The defence of our country and its interests remains the highest priority of Government. To provide the Australian Defence Force (ADF) with a firm basis for continued long term planning and to further grow its capabilities, the Government will increase defence spending by 3 per cent in real terms each year between 2011‑12 and 2015‑16 at a cost of $10.7 billion. This follows the ten‑year funding growth announced with the Defence 2000 White Paper.

As part of this funding, the Defence Capability Plan will be extended to

2015‑16 with real funding growth of 3 per cent each year from 2011‑12.

Heavy airlift

This budget also provides $2.2 billion to acquire new C‑17 heavy airlift aircraft. These will enhance significantly the ADF's airlift capability, enabling rapid deployment of combat vehicles, helicopters and supplies. Australia's capacity to provide disaster relief will also be improved.

Hardened and networked Army

As part of the development of a hardened and networked Army the Government will provide a further

$1.5 billion over ten years to increase the Army's size, relocate a battalion to Adelaide and enhance the Army's readiness for operations. These initiatives will improve the sustainability of deployed land forces.

Personnel initiatives

The Government will provide $250 million over four years to improve recruitment and retention arrangements for both the permanent and reserve members of the ADF. These measures include targeted bonuses for permanent members, improved remuneration for reserves and provision for the establishment of a High Readiness Reserve.