Australian Government, 2012‑13 Budget
Budget

Part 2: Expense Measures (Continued)

Foreign Affairs and Trade

Australia and New Zealand School of Government — China Advanced Leadership Program

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Foreign Affairs and Trade 3.0 - - - -

The Government will provide $3.0 million in 2011‑12 for the continuation of the China Advanced Leadership Program for three years. The program is coordinated by the Australia and New Zealand School of Government. This initiative will build on the success of the inaugural China Advanced Leadership Program conducted in 2011 and extend and deepen Australia's relationship with China.

Australia's civilian engagement in Afghanistan — an integrated whole‑of‑government approach — continuation

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Foreign Affairs and Trade - 45.9 46.5 - -
Australian Federal Police - 25.2 25.7 - -
Department of Immigration and Citizenship - 3.0 3.1 - -
AusAID - -30.7 -28.7 - -
Total - Expense - 43.4 46.5 - -
Australian Taxation Office - -1.0 -1.1 - -
Australian Federal Police - 2.5 - - -
Department of Foreign Affairs and Trade - 1.7 1.6 - -
Total - Capital - 4.2 1.6 - -

The Government will provide $286.0 million over two years (including capital funding of $14.8 million) to continue Australia's civilian and police contribution to developing local capacity in Afghanistan.

The measure will enable Australia's continued diplomatic presence to support engagement with the Afghanistan Government and monitoring detainees apprehended by the Australian Defence Force in Afghanistan. The measure will also maintain the current Australian Federal Police presence in Afghanistan to continue building the capability of the Afghan National Police.

Australia's aid program will include a contribution to the Afghanistan Reconstruction Trust Fund managed by the World Bank, and funding to support the Afghanistan Government's national health, education, agriculture, governance and other development programs. A contribution will also be made to assist the return of displaced Afghan nationals residing in Iran.

This measure includes provision for security costs for staff based in Kabul. Security for personnel posted outside the Kabul area will be provided by the Australian Defence Force and International Security Assistance Force partners.

AusAID activities totalling $130.8 million (including $9.0 million in capital funding) will be met from within existing resources. Funding for the Australian Federal Police and Department of Immigration and Citizenship will also be met from within the existing resources of AusAID.

This measure is expected to lead to a reduction in revenue of $2.1 million over two years as a result of the tax treatment of the income and benefits received by deployed officers overseas.

Enhancing Australian Diplomacy

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Foreign Affairs and Trade 0.3 1.9 9.0 8.8 8.5
Department of Foreign Affairs and Trade - 5.0 14.9 4.3 -

The Government will provide $52.6 million over five years to boost the Department of Foreign Affairs and Trade's overseas network from 95 to 97 posts by opening new diplomatic posts in Chengdu (China), and Dakar (Senegal). Funding has also been provided to increase Australia's international diplomatic presence. This proposal includes capital funding of $24.1 million.

This increase in Australia's presence will support trade, investment and diplomacy in key locations around the world.

Further information can be found in the joint press release of 20 March 2012 issued by the Prime Minister, Minister for Foreign Affairs and the Minister for Trade and Competitiveness.

National Security — Baghdad Embassy civilian security arrangements

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of Foreign Affairs and Trade - 33.1 33.9 - -
Department of Foreign Affairs and Trade - 0.5 4.6 - -

The Government will provide $72.2 million over two years (including $5.1 million in capital funding) to continue outsourced security measures for the Australian Embassy and staff in Baghdad.

This measure is a continuation of the measure titled National SecurityBaghdad Embassy civilian security arrangementsfinal transition announced in the 2011‑12 Budget and the measure titled Baghdad Embassy — transition towards civilian security arrangements announced in the 2010‑11 Budget.

Official development assistance — African Development Bank Group membership

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
Department of the Treasury - 0.4 0.3 0.2 0.3
AusAID - - - - -
Total - Expense - 0.4 0.3 0.2 0.3

The Government will provide $9.3 million over four years to commence the process of joining the African Development Bank (AfDB) Group. This funding will be used to support the legislative, diplomatic and consultative processes involved in joining the Bank.

The AfDB was established in 1964 with the aim of helping to reduce poverty and to provide technical and financial assistance encouraging economic and social development in Africa. The AfDB Group includes the African Development Fund, which is the concessional arm of the AfDB and provides concessional loans and grants for developing purposes to Africa s poorest countries.

Funding for this measure includes $8.1 million to be absorbed from within existing AusAID resources, and $1.1 million for the Treasury, of which $0.8 million will be offset from the provision for expanded aid funding held in the Contingency Reserve.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — Asian Development Fund replenishment

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - 46.9 1.5 1.5 1.5
AusAID - 0.4 0.4 - -

The Government will provide a contribution of up to $629.3 million to the tenth replenishment of the Asian Development Fund (ADF). The additional funding would enable Australia to increase its burden share from 6.49 per cent to 11.0 per cent. Australia has committed to increase its burden share to 9.0 per cent with a further 2.0 per cent being conditional on the Asian Development Bank (ADB) implementing operational and management reforms.

The ADB was established in 1966 and is focused on delivering projects that have an economic and development impact in Asia and the Pacific. The ADF is the concessional arm of the ADB. The ADF assists low‑income countries in Asia and the Pacific and is replenished every four years.

Australia's contribution contains both a loan (approximately 80 per cent) and a grant component (approximately 20 per cent), with the loan component having no impact on the underlying cash balance or fiscal balance. The fiscal balance impact associated with Australia's burden share is $46.5 million in 2012‑13 with payments to be made over nine years.

Funding for this measure will be offset from the provision for expanded aid funding held in the Contingency Reserve.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — An Effective Aid Program for Australia

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - - -
AusAID - - - - -

The Government will provide $49.7 million over four years to enhance AusAID's corporate functions to ensure Australia's growing aid program continues to be delivered effectively. This funding will provide targeted improvements in AusAID's capacity to manage fraud and risk, manage aid quality and performance systems, provide increased transparency of the aid program, and assess the effectiveness of aid delivery through multilateral agencies.

Funding for this measure will be absorbed from within existing AusAID resources.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — Australia's development partnerships with the United Nations

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - - 102.3
AusAID - - - - -

The Government will provide $154.3 million over four years (including departmental funding of $9.7 million) to expand engagement with six United Nations (UN) agencies. This measure will provide funding for health and education initiatives to the UN Development Programme ($32.2 million), the UN Children's Fund ($40.9 million), UN Women ($16.5 million), the World Health Organization ($27.5 million), the UN Population Fund ($16.5 million) and the Joint UN Programme on HIV/AIDS ($11.0 million).

Funding for this measure includes $102.3 million to be offset from the provision for expanded aid funding held in the Contingency Reserve and $51.9 million to be absorbed from within existing AusAID resources.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — closing development gaps in East Asia

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - - 108.9
AusAID - - - - -

The Government will provide $208.6 million over four years to increase development assistance in East Asia. Activities include: expanded assistance to Burma for health programs addressing maternal and child health and improving access to and quality of education; Cambodian programs targeting maternal and child health and agricultural development; programs in Laos for the provision of basic school supplies and development of agricultural practices; and for climate change mitigation programs in Vietnam.

Funding for this measure includes $108.9 million to be offset from the provision for expanded aid funding held in the Contingency Reserve and $99.7 million absorbed from within existing AusAID resources.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — deferring Australia's growth target

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - -447.2 -782.6 -823.6 -866.7

The Government will continue to grow Australia's aid budget to 0.5 per cent of Gross National Income (GNI) but defer the target date by one year, from 2015‑16 to 2016‑17.

This measure will achieve $2.9 billion in savings over four years while still growing aid spending by 50.0 per cent over the period 2012‑13 to 2015‑16. These savings will be achieved by a $2.7 billion reduction in the provision for expanded aid funding held in the Contingency Reserve and a reduction of $212.5 million to existing AusAID resources.

Under the new growth profile, ODA spending will have doubled from 2007‑08 levels by 2014‑15. Additionally, based on current projections of ODA contributions by the 23 members of the Development Assistance Committee of the Organisation for Economic Co‑operation and Development (OECD), this growth path could see Australia rank sixth in the ODA donor rankings by 2015‑16. Currently, Australia is ranked tenth.

Official development assistance — Fiji increased assistance

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - - -

The Government will provide an additional $61.0 million over four years to increase official development assistance to Fiji. This measure will continue the Government's focus on strengthening health, education and improving economic livelihoods in Fiji with the expansion of the program focussing on alleviating poverty and vulnerability through more direct engagement in rural and disadvantaged communities.

The cost of this measure will be met from within the existing resources of AusAID.

This measure is part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — Government Partnerships for Development

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - 0.7 20.7 20.7

The Government will provide $52.8 million over four years to fund a range of small‑scale projects in developing countries that draw on the expertise of Commonwealth government agencies, state government agencies, and universities. Activities funded through the Government Partnerships for Development facility must have a focus on assisting the development of the partner country, including internships and placements, training workshops, twinning arrangements, small projects and policy research.

Funding for this measure includes $42.1 million to be offset from the provision for expanded aid funding held in the Contingency Reserve and $10.7 million absorbed from within existing AusAID resources.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — overcoming poverty and building stability in the Pacific

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - 98.3 243.3
AusAID - - - 0.4 -

The Government will provide $384.5 million over four years to address development needs in the Pacific, including: increased rates of child immunisation; improved access to education; increased reliability of drinking water supplies; and assistance with country adaption to the effect of climate change through infrastructure improvements across the Pacific.

Funding for this measure includes $341.9 million to be offset from the provision for expanded aid funding held in the Contingency Reserve and $42.6 million absorbed from within existing AusAID resources.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — Queen Elizabeth Diamond Jubilee Trust

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - - -

The Government will provide up to $5 million in 2012‑13 to the Queen Elizabeth Diamond Jubilee Trust as part of Australia's commemoration of the diamond jubilee of Her Majesty Queen Elizabeth II. The Prime Minister has written to the Premiers and Chief Ministers encouraging them collectively to match the Commonwealth's contribution.

The Trust will work with partner charities and organisations to deliver projects that are a fitting and enduring tribute to the Queen. Australia's contribution is for projects that will assist developing countries.

The costs of this measure will be absorbed from within existing AusAID resources.

Further information can be found in the press release of 7 February 2012 issued by the Prime Minister.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

See also the related expense measures titled Queen Elizabeth II Diamond Jubilee Essay Competition — establishment and The Prime Minister's Queen Elizabeth II Diamond Jubilee Scholarship — establishment.

Official development assistance — rejoining the United Nations International Fund for Agricultural Development

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - 0.9 121.6 1.4 1.4
AusAID - - 1.0 - -

The Government will provide up to $126.4 million over four years as part of Australia rejoining the International Fund for Agricultural Development (IFAD). This replenishment will have an impact on the fiscal balance of $120.0 million in 2013‑14, as the total replenishment commitment is expected to be made in that year, with the underlying cash impacts expected to occur as contributions are disbursed from 2014‑15. Final details of Australia's replenishment will be confirmed following satisfactory completion of the treaty and pledging process.

IFAD is a specialised agency of the United Nations that was established as an international financial institution in 1977 and is dedicated to eradicating rural poverty in developing countries. Australia was a founding member of IFAD, but withdrew from membership in July 2007.

The Government announced Australia's intention to rejoin IFAD, following a 2011 AusAID review, at the 35th session of IFAD's governing council on 22 February 2012.

Funding for this measure will be offset from the provision for expanded aid funding held in the Contingency Reserve.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

Official development assistance — strengthening preparedness and response to humanitarian crises

Expense ($m)
2011‑12 2012‑13 2013‑14 2014-15 2015-16
AusAID - - - 114.6 270.0
AusAID - - - 0.7 -

The Government will provide $435.6 million over four years to expand AusAID's capacity to respond to crises and to reduce developing country vulnerability to natural disasters and instability arising from conflict and state fragility.

This measure provides funding for faster and more effective preparedness and response capability within AusAID through the expansion of staff, training and emergency stores; increased contributions for humanitarian emergencies and crises; contributions towards selected global humanitarian organisations to expand capacity to anticipate, prepare for and respond to conflict and disasters; and building the capacity of developing countries in the Asia‑Pacific region to manage disasters and other crises.

In addition, this measure will provide contributions towards global humanitarian organisations and Non‑Government Organisations for disaster risk reduction, disaster response, civilian‑military cooperation and the removal of unexploded ordnance and landmines in developing countries.

Funding for this measure includes $385.3 million to be offset from the provision for expanded aid funding held in the Contingency Reserve and $50.4 million to be absorbed from within existing AusAID resources.

This measure forms part of the Government's commitment to increase Australia's official development assistance over the long term.

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