Building a defence
force for the future

The Government is delivering on its commitment to a modern and well‑equipped ADF by providing adequate funding and ensuring more effective use of Defence dollars.

This Budget meets the Government's commitment to provide 3 per cent real growth per year on average in Defence's underlying funding base to 2015‑16. To provide even greater funding certainty, the Government has extended this funding guarantee to 2017‑18.

Growth rates in total Defence spending vary between years due to slippage in acquisitions and other factors. Real growth in total Defence spending is expected to average 4 per cent per year over the next four years as the Defence White Paper is implemented.

The White Paper and an audit of the Defence budget will ensure best use of the growing Defence budget and better strategic capability planning into the future. This Budget also provides $5 million for annual independent checks of the management of major acquisition projects.

The Government has committed to finding further efficiencies and savings and to reinvesting these in priority Defence projects, while ensuring no adverse impact on operational capacity.

The Government has established an operations reserve to fund Defence's overseas operations in 2008‑09.

This new reserve will be drawn from internal resources and funding and

demonstrates a responsible approach to Defence budget management.

Supporting Defence families

A strong Defence force requires the best personnel. This Budget includes new measures to support ADF personnel and their families.

The Government will provide $12 million to trial free provision of basic medical and dental care to ADF dependants in five locations. A further $2 million will be provided to improve prevention and early intervention on mental health in the ADF, from recruitment through to discharge. These initiatives will be funded by reinvesting internal savings.