agency resources and planned performance...11 department of defence agency resources and planned...

11

Department of Defence

Agency Resources and Planned Performance

Section 1: Defence Overview and Resources

1.1 Strategic Direction Statement

1.2 Defence Resource Statement

1.3 Budget Measures

1.4 Capital Investment Programme

1.5 People

Section 2: Defence Outcomes and Planned Performance

2.1 Outcomes and Performance Information

Section 3: Defence Explanatory Tables and Budgeted Financial Statements

3.1 Explanatory Tables

3.2 Resource Summary

3.3 Budgeted Financial Statements

3.4 Consolidated Budgeted Financial Statements for the Department of Defence (including DMO)

Defence Portfolio Additional Estimates Statements 2014-15

12


13

DEPARTMENT OF DEFENCE

Section 1: Defence Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

The following changes have been made to 1.1 Strategic Direction Statement since the Portfolio Budget Statements 2014-15:

Defence’s primary focus continues to be to protect and advance Australia's strategic interests through the provision of an appropriately prepared and equipped Defence force. To achieve this, Defence prepares for and conducts military operations and other tasks as directed by the Government.

The need to sustain operations in the Middle East, capitalise on the opportunities and manage the challenges of strategic transformation in our region, while maximising Defence capability within fiscal guidance, are some of the key elements driving Defence strategy and activities.

The development of a new Defence White Paper has commenced and will be finalised in 2015. The White Paper will set out the Government’s strategic direction and plan for Defence, and will be accompanied by a ten-year Defence Capability Plan.

Enhancing Defence engagement with allies and security partners in the Indo-Pacific region will remain a priority this year. Over 2014-15, the ADF will also continue to contribute to security in the Middle East and Afghanistan, including through operations in Iraq as part of the US-led coalition, through assistance to the Afghan National Security Forces as part of the NATO-led ‘train, advise and assist’ mission, and through the tasking of a major fleet unit to promote maritime security in the Middle East region.

Defence will continue to build capacity to protect Australia’s interests through the introduction of new capabilities such as the HMAS Canberra which was commissioned into service on 28 November 2014 as the first of two Landing Helicopter Docks (LHD) for the Navy. Australia's first two F-35 aircraft were also completed in the third quarter of 2014. Australia's first two F-35 aircraft were also completed in the third quarter of 2014 and Australian aircrew have begun training to fly the F-35. Army's Plan BEERSHEEBA is continuing to maximise Army's capabilities to best posture Army to respond to the full spectrum of possible operational commitments.

Australia continues to enhance cooperation with the United States, including under the Force Posture Initiative, with around 1,150 US Marines rotating through Northern Australia, for training and other engagement activity in 2014. Defence is also continuing to enhance its presence in Northern Australia and the visibility of Defence activity in the Asia-Pacific.


14

1.2 DEFENCE RESOURCE STATEMENT

Table 2: Total Defence Resourcing

Seria

l No.

2013-14Actual$'000

2014-15Budget

Estimate$'000

2014-15Revised Estimate

$'000Variation

$'000Variation

%

2015-16Forward Estimate

$'000


$'000


$'000Defence resourcing

1 24,272,707 Appropriation for departmental outcomes 25,882,986 26,440,723 557,737 2 2 27,016,201 27,272,684 28,582,5352 1,418,385 Equity injection appropriation 2,463,678 2,346,764 -116,914 -4.7 2,440,165 2,161,003 3,326,5303 - Prior year appropriation - - - - - - -4 25,691,092 Current year's appropriation (1 + 2 + 3) 28,346,664 28,787,487 440,823 1.6 29,456,366 29,433,687 31,909,0655 - Draw down of appropriations carried forward - - - - - - -6 - Other appropriation receivable movements - -71,357 -71,357 - - - -7 -32,441 Return to the Official Public Account[1] -853 -853 - - -875 -897 -9198 -32,441 Funding from / to the OPA (5 + 6 +7) -853 -72,210 -71,357 8,365.4 -875 -897 -9199 25,658,651 Funding from Government (4 + 8) 28,345,811 28,715,277 369,466 1.3 29,455,491 29,432,790 31,908,146

10 78,252 Capital receipts 97,224 128,153 30,929 31 8 229,908 43,476 73,20511 968,347 Own source revenue (s74 receipts)[2] 859,673 934,800 75,127 8.7 860,058 880,042 915,55812 - Prior year receipts - - - - - - -13 1,046,599 Funding from other sources (10 + 11 + 12) 956,897 1,062,953 106,056 11.1 1,089,966 923,518 988,76314 26,705,250 Total Defence funding (9 + 13) 29,302,708 29,778,230 475,522 1.6 30,545,457 30,356,308 32,896,909

Administered15 2,098,636 Administered special appropriations 4,916,602 6,002,415 1,085,813 22.1 5,120,549 5,218,594 5,362,66316 1,467,573 Own source revenue 1,474,120 1,424,559 -49,561 -3.4 1,459,075 1,356,350 1,309,96717 -1,467,573 Returns to the Official Public Account -1,474,120 -1,424,559 49,561 -3.4 -1,459,075 -1,356,350 -1,309,96718 2,098,636 Total Administered funding (15 + 16 + 17) 4,916,602 6,002,415 1,085,813 22.1 5,120,549 5,218,594 5,362,66319 28,803,886 Total Defence resourcing (14 + 18) 34,219,310 35,780,645 1,561,335 4.6 35,666,006 35,574,902 38,259,572

Appropriation carried forward

20 414,742Appropriation receivable including previous year's outputs - - - - - - -

21 35,490 Cash in bank 466 12,732 12,266 - 12,732 12,732 12,73222 450,232 Total appropriations carried forward (20 + 21) 466 12,732 12,266 - 12,732 12,732 12,732

Notes1. Represents net transfers to and from the Official Public Account.2. All figures are net of GST.


15

Annual Appropriations

Table 3: Appropriation Bill (No 3) 2014-15

2013-14 Available

$'000

2014-15 Budget

Estimate $'000

2014-15 Revised

Estimate $'000

Increase in Estimates

$'000

Decrease in Estimates

$'000Departmental OutputsOutcome 1Australia's national interests are protected and advanced through he provision of military capabilities and the promotion of security and stability 23,440,073 25,462,517 25,584,124 121,607 -Outcome 2Military operations and other tasks directed by the Government to achieve he desired results 1,022,827 352,729 788,859 436,130 -Outcome 3Defence's support to he Australian community and civilian authorities to achieve the desired results 54,097 67,740 67,740 - -Total 24,516,997 25,882,986 26,440,723 557,737 -

Table 4: Appropriation Bill (No 4) 2014-15

2013-14 Available

$'000

2014-15 Budget

Estimate $'000

2014-15 Revised

Estimate $'000

Increase in Estimates

$'000

Decrease in Estimates

$'000Non-operating Equity injections 1,521,488 2,463,678 2,346,764 - 116,914Total non-operating 1,521,488 2,463,678 2,346,764 - 116,914

Note1. No additional appropriation is provided in Appropriation Bill (No.4) as the net funding change is nega ive. $116.9m will be extinguished against Appropriation Bill (No.2).

Drawdown of Appropriations Carried Forward

Table 5: Revised Appropriation Receivable

2014-15Revised

Estimate$'000


$'000


$'000


$'000Portfolio Budget Statements 2014-15 Estimates - - - -

Net Drawdown - - - -Closing balance appropriation receivable - - - -


16

Funding from Other Sources

Own Source Revenue

Table 6: Variation in Own Source Revenue


$'000


$'000


$'000


$'000Portfolio Budget Statements 2014-15 Estimates 859,673 873,367 893,714 929,612Variation in own source revenue 75,127 -13,309 -13,672 -14,054Own source revenue revised estimates 934,800 860,058 880,042 915,558Prior year receipts - - - -Total 934,800 860,058 880,042 915,558


17

1.3 BUDGET MEASURES

2014-15 Budget Measures and Other Budget Adjustments

Table 7: Variation to Defence Funding

Programme2014-15

$m2015-16

$m2016-17

$m2017-18

$mDepartmental Budget measuresExpenditure measuresOperation Slipper Heron Remotely Piloted Aircraft 2 2 26.7 - - -Operation Highroad [1] 2 2 82.4 - - -Operation Accordion – Extension 2 2 63.2 - - -Operation Okra 2 2 260.8 30.9 5.8 -Total Departmental Budget Measures 433.1 30.9 5.8 -Other budget adjustmentsDMO Direct Appropriation Adjustments Various 1.5 1.5 1.6 1.7Foreign Exchange Various 6.3 74.4 23.8 -30.4Carried Forward Appropriation Receivable movement 1.13 -71.4 - - -Total Other Departmental Budget Adjustments -63.6 75.9 25.4 -28.7Variation to Defence Departmental Funding 369.5 106.9 31.2 -28.7

Note1. Provision for this funding was included in the Mid-Year Economic and Fiscal Outlook 2014-15.


18

Operations Summary

Table 8: Net Additional Cost of Operations from 1999-00 to 2017-18

1999-00 to 2013-14

Actual Result$m

2014-15Revised

Estimate$m

2015-16ForwardEstimate

$m


$m


$mTotal

$mOperation Astute 4,311.9 - - - - 4,311.9Operation Bel Isi 47.7 - - - - 47.7Operation Slipper 6,924.8 267.5 121.9 103.9 - 7,418.1Operation Manitou - 52.0 2.9 1.7 - 56.6Operation Accordion - 120.2 1.7 - - 121.9Operation Highroad - 82.4 - - - 82.4Operation Resolute 175.0 59.7 0.6 - - 235.3Operation Catalyst 2,364.5 - - - - 2,364.5Operation Okra - 260.8 30.9 5.8 - 297.5Operation Anode 355.2 0.1 - - - 355.3Operation Sumatra Assist 44.5 - - - - 44.5Operation Acolyte 10.5 - - - - 10.5Operation Deluge 6.7 - - - - 6.7Operation Pakistan Assist 9.8 - - - - 9.8Operation Outreach 14.6 - - - - 14.6Operation Kruger 45.3 - - - - 45.3Operation Southern Indian Ocean 10.8 3.0 - - - 13.7Enhanced Force Protection in Afghanistan 540.0 16.2 - - - 556.2Defence Support to 2014 G20 Summit 0.1 8.0 - - - 8.2

Total Net Additional Costs 14,861.5 869.9 158.0 111.4 - 16,000.8Sources of Funding for Operations

Government Supplementation 13,230.7 845.5 158.0 111.4 - 14,345.6Department of Foreign Affairs and Trade 9.1 - - - - 9.1Department of Defence (Absorbed) 1,621.7 24.3 - - - 1,646.0

Total Cost 14,861.5 869.9 158.0 111.4 - 16,000.8


19

1.4 CAPITAL INVESTMENT PROGRAMME

Table 9: Capital Investment Programme

Defence Capability Plan Budget Update

Seria

l No. 2014-15

BudgetEstimate

$m

2014-15Revised

Estimate$m

Variation$m

Defence Capability Plan (DCP)1 DMO Delivered 770.8 136.6 -634.22 Group and Services delivered 85.6 191.2 105.63 Total Defence Capability Plan (1+2) 856.4 327.8 -528.64 Remaining DCP approvals in 2013-14 274.2 31.2 -243.05 DCP available from 1 July 2014 397.3 640.3 243.06 Total Unapproved DCP (4+5) 671.5 671.5 -

Total Capital Investment Programme

Seria

l No. 2014-15

BudgetEstimate

$m

2014-15Revised

Estimate$m

Variation$m

Defence Capability Plan (DCP) - remaining approvals1 DMO Delivered 604.4 136.6 -467.82 Group and Services delivered 67.2 191.2 124.13 Total Defence Capbility Plan (1+2) 671.5 327.8 -343.7

Approved Major Capital Investment Programme4 DMO delivered 5,108.6 5,406.4 297.85 Group and Services delivered (excludes Capital Facilities and ICT Investment

Plan) 95.0 346.2 251.26 Government approved DCP projects in 2013-14 yet to be allocated to Groups,

Services or the DMO 184.9 - -184.97 Government approved DCP projects in 2014-15 yet to be allocated to Groups,

Services or the DMO - - -8 Total Approved Major Capital Investment Programme (4+5+6+7) 5,388.5 5,752.6 364.1

Capital Facilities9 Approved capital facilities projects 935.3 1,071.4 136.1

10 Unapproved capital facilities projects 254.6 232.1 -22.511 Total Capital Facilities Programme (9+10) 1,189.9 1,303.5 113.612 ICT Investment Plan (1) 375.6 400.1 24.5

Minors Programme13 Approved DMO delivered 23.3 36.6 13.314 Approved Group and Services delivered 7.6 9.3 1.715 Unapproved DMO delivered 112.8 49.1 -63.716 Unapproved Group and Services delivered 5.7 5.7 -0.017 Total Minors Programme (13+14+15+16) 149.4 100.7 -48.718 Other Investment (2) 809.9 753.6 -56.319 Total Capital Investment Programme (3+8+11+12+17+18) 8,584.8 8,638.3 53.5

Capital component 7,496.2 7,644.0 147.8Operating component 1,088.7 994.3 -94.4

Notes1 Only includes activities delivered by the Chief Information Officer Group.2 Includes the capital component of Repairable Items within the Capability Sustainment Programme.


20

Table 10: Capability Sustainment Programme

Seria

l No. 2014-15

BudgetEstimate

$m

2014-15 Revised

Estimate$m

Variation$m

Current Sustainment1 Navy Sustainment 1,969.7 1,968.3 -1.52 Army Sustainment 1,511.0 1,486.6 -24.43 Air Force Sustainment 1,855.0 1,967.0 112.04 Chief Information Officer Sustainment 488.6 737.9 249.35 Vice Chief of the Defence Force Sustainment 43.5 45.9 2.46 Office of the Secretary and CDF Sustainment 20.3 20.9 0.67 Joint Operations Command Sustainment 5.6 5.7 0.18 Defence Support and Reform Group Sustainment 784.6 770.2 -14.4

Future Sustainment9 Future Sustainment Costs associated with AMCIP, ICT and Facilities 164.4 106.8 -57.6

10 Total Sustainment 6,842.8 7,109.4 266.6

Table 11: Retained Capital Receipts

Seria

l No. 2014-15

BudgetEstimate

$m

2014-15Revised

Estimate$m

Variation$m

Property SalesProceeds from the sale of land and buildings 49.3 79.9 30.6Proceeds from the sale of housing 12.4 12.4 -Total proceeds from the sale of property 61.7 92.3 30.6Costs from the sale of property -23.8 -11.1 12.7

1 Proceeds retained by Defence 37.9 81.2 43.4

2 Proceeds from sale of specialist military equipment 7.5 7.5 -

3 Proceeds from sale of infrastructure, plant and equipment 28.0 28.0 -

4 Proceeds from sale of other assets - 0.3 0.35 Retained Capital Receipts (1+2+3+4) 73.4 117.1 43.6

Table 12: Variation in Estimates of Net Capital Receipts


$m


$m


$m


$mPortfolio Budget Statements 2014-15 Estimates 73.4 78.7 22.7 60.8

Movement in proceeds from sales associated with the capital disposals programme 43.6 124.8 -68.2 -79.0Variation in Net Capital Receipts 43.6 124.8 -68.2 -79.0Total Net Capital Receipts 117.1 203.5 -45.5 -18.1


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Section 2: Defence Outcomes and Planned Performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programmes which contribute to Government outcomes over the Budget and forward years.

Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor the performance of the Department of Defence in achieving Government outcomes.

Figure 3: Structure of Defence’s Outcomes


27

Outcome 1 Resources

Table 17: Total Budgeted Resources Available for Outcome 1

2014-15Budget

Estimate$'000

2014-15Revised

Estimate$'000

Variation$'000


$'000


$'000


$'000Programme 1.1 Office of the Secretary and CDFRevenues from other sources 538 538 - 540 534 531Departmental outputs 160,008 165,654 5,646 186,765 183,043 195,361Programme 1.2 Navy CapabilitiesRevenues from other sources 128,840 121,579 -7,261 126,871 131,039 136,110Departmental outputs 4,797,105 5,048,012 250,907 5,062,488 4,944,710 4,961,918Programme 1.3 Army CapabilitiesRevenues from other sources 108,015 103,328 -4,687 106,339 105,954 126,529Departmental outputs 5,986,472 6,563,726 577,254 6,556,389 6,395,843 6,338,726Programme 1.4 Air Force CapabilitiesRevenues from other sources 194,350 165,903 -28,447 192,903 201,804 211,010Departmental outputs 4,761,993 5,032,649 270,656 5,102,557 4,930,762 5,050,954Programme 1.5 Intelligence CapabilitiesRevenues from other sources 11,478 11,497 19 11,990 12,263 12,395Departmental outputs 537,966 557,885 19,919 628,399 605,940 631,836Chief Operating Officer (COO)Revenues from other sources 356,600 382,631 26,031 372,161 355,856 376,420Departmental outputs 5,548,196 5,682,685 134,489 5,779,620 5,603,121 6,172,525

Programme 1.6 Chief Operating Officer - Defence Support and ReformRevenues from other sources 351,297 377,713 26,416 370,066 348,919 373,924Departmental outputs 4,085,667 3,960,740 -124,927 4,072,090 3,953,120 4,598,810Programme 1.7 Chief Operating Officer - Chief Information OfficerRevenues from other sources 5,303 4,918 -385 2,095 6,937 2,496Departmental outputs 979,344 1,251,854 272,510 1,263,884 1,196,879 1,126,286Programme 1.8 Chief Operating Officer - Defence PeopleRevenues from other sources - - - - - -Departmental outputs 483,185 470,091 -13,094 443,646 453,122 447,429

Programme 1.9 Defence Science and TechnologyRevenues from other sources 35,159 35,300 141 36,155 37,190 38,317Departmental outputs 408,191 417,148 8,957 435,711 411,563 391,230Programme 1.10 Vice Chief of the Defence ForceRevenues from other sources 346,506 360,474 13,968 342,095 353,437 366,930Departmental outputs 1,230,805 1,168,975 -61,830 1,202,844 1,235,254 1,255,634Programme 1.11 Joint Operations CommandRevenues from other sources 336 - -336 604 614 623Departmental outputs 52,168 50,297 -1,871 51,214 52,234 56,490Programme 1.12 Capability DevelopmentRevenues from other sources 26,224 16,943 -9,281 21,416 25,509 30,044Departmental outputs 1,423,081 786,404 -636,677 1,792,424 2,769,288 3,490,579Programme 1.13 Chief Finance OfficerRevenues from other sources 805,333 802,930 -2,403 832,337 875,860 900,854Departmental outputs 556,532 110,689 -445,843 59,806 29,521 37,282


28

Table 17 (Continued): Total Budgeted Resources Available for Outcome 1

2014-15Budget

Estimate$'000

2014-15Revised

Estimate$'000

Variation$'000


$'000


$'000


$'000

Defence Force Retirement Benefits Act, 1948 Part 1, s.15D and VIC, s.82ZJ (1) - - - - - - Defence Force Retirements and Death Benefits Act, 1973 Part XII, s.125 (3) 105,382 154,000 48,618 92,819 81,150 70,712Military Superannuation and Benefits Act, 1991 Part V, s.17 1,318,868 2,337,883 1,019,015 1,367,676 1,305,468 1,285,518Total Administered expenses 1,424,250 2,491,883 1,067,633 1,460,495 1,386,618 1,356,230Administered revenues from other sources 1,324,094 1,288,892 -35,202 1,331,754 1,231,718 1,184,913Total Programme 1.14 100,156 1,202,991 1,102,835 128,741 154,900 171,317Programme 1.15 Defence Force Superannuation Nominal InterestDefence Force Retirement Benefits Act, 1948 Part 1, s.15D and VIC, s.82ZJ (1) 28,598 23,000 -5,598 27,203 25,858 24,565Defence Force Retirements and Death Benefits Act, 1973 Part XII, s.125 (3) 1,782,778 1,640,000 -142,778 1,801,001 1,817,114 1,829,951Military Superannuation and Benefits Act, 1991 Part V, s.17 1,567,812 1,743,000 175,188 1,710,208 1,850,688 2,000,140Total Administered expenses 3,379,188 3,406,000 26,812 3,538,412 3,693,660 3,854,656Administered revenues from other sources - - - - - -Total Programme 1.15 3,379,188 3,406,000 26,812 3,538,412 3,693,660 3,854,656Programme 1.16 Housing AssistanceDefence Force (Home Loan Assistance) Act , 1990 Part IV, s.38 1,511 1,357 -154 1,129 938 778Defence Home Ownership Assistance Scheme Act 2008 Part VI, s.84 111,653 103,175 -8,478 120,513 137,378 150,999Total Administered expenses 113,164 104,532 -8,632 121,642 138,316 151,777Administered revenues from other sources 13,335 13,953 618 14,511 15,092 15,695Total Programme 1.16 99,829 90,579 -9,250 107,131 123,224 136,082Programme 1.17 Other AdministeredAdministered revenues from other sources 133,463 109,481 -23,982 112,814 116,149 108,845Total Programme 1.17 -133,463 -109,481 23,982 -112,814 -116,149 -108,845Total resourcingTotal Departmental outputs 25,462,517 25,584,124 121,607 26,858,217 27,161,279 28,582,535Total Administered 3,445,710 4,590,089 1,144,379 3,661,470 3,855,635 4,053,210Total Departmental revenue from o her sources 2,013,379 2,001,123 -12,256 2,043,411 2,100,060 2,199,763Total Administered revenue from o her sources 1,470,892 1,412,326 -58,566 1,459,079 1,362,959 1,309,453Equity injection 2,463,678 2,346,764 -116,914 2,440,165 2,161,003 3,326,530Total resources for Outcome 1 34,856,176 35,934,426 1,078,250 36,462,342 36,640,936 39,471,491

Programme 1.14 Defence Force Superannuation Benefits


31

Table 20: Navy Deliverables (Unit Ready Days)[1]

Deliverables

2014-15 Budget

Estimate

2014-15 Revised Estimate

20 Major Combatants[2] 2,986 3,028 20 Minor Combatants[3] 4,837 4,417 9 Amphibious and Afloat Support[4] 1,508 1,482 9 Hydrographic Force[5] 2,810 2,971

Notes

1. Unit Ready Days (URD) are the aggregate number of days that constituent force elements are available for tasking.

2. Major Combatants comprises Adelaide class frigates, Anzac class frigates, submarines and Hobart class air warfare destroyers (from 2016-17). The increase in URD is due to the extension in operational service of HMAS Sydney until 1 March 2015, changes to HMAS Darwin’s scheduled maintenance and adjustment to Waller’s schedule for return to operational service. HMAS Sydney will not accrue URD while being used as a harbour training ship March-December 2015.

3. Minor Combatants comprises Armidale class patrol boats (ACPB) and coastal minehunters. The decrease in URD is attributable to ongoing ACPB maintenance and reliability issues and HMAS Bundaberg fire.

4. Amphibious and Afloat Support comprises the oil tanker, replenishment ship, landing ship dock, heavy landing ship, heavy landing craft and Canberra class landing helicopter dock (from 2015-16). Although there are additional URD associated with the decision to retain Tobruk in operational service until July 2015, there is an overall net decrease in URD for amphibious and afloat support due to the programming of additional scheduled maintenance for Sirius and Choules.

5. Hydrographic Force comprises the hydrographic ships, survey motor launches, chart production office and meteorological and oceanographic centres. The increase in URD is due to changes in scheduled maintenance and associated trials periods.

Table 21: Navy Deliverables (Unit Availability Days)[1]

Deliverables 2014-15 Budget

Estimate


20 Major Combatants[2] 2,830 2,951

20 Minor Combatants[3] 4,273 3,606

9 Amphibious and Afloat Support[4] 1,298 1,374

9 Hydrographic Force[5] 2,352 2,283

Notes

1. A Unit Availability Day (UAD) is a day when a unit is materielly ready and its personnel state and level of competence enables the unit to safely perform tasks in the units normal operating environment, immediately. UAD differs from URD in that for a UAD minor maintenance periods, defects, training and personnel state of a unit are taken into account.

2. Major Combatants comprises Adelaide class frigates, Anzac class frigates, submarines and Hobart class air warfare destroyers (from 2016-17). The increase in UAD is due to the extension in operational service of HMAS Sydney until 1 March 2015, changes to HMAS Darwin’s scheduled maintenance and adjustment to Waller’s schedule for return to operational service. HMAS Sydney will not accrue UAD while being used as a harbour training ship March-December 2015.

3. Minor Combatants comprises Armidale class patrol boats and coastal minehunters. The decrease in UAD is attributable to ongoing ACPB ship maintenance and reliability issues and HMAS Bundaberg fire.

4. Amphibious and Afloat Support comprises the oil tanker, replenishment ship, landing ship dock, heavy landing ship, heavy landing craft and Canberra class landing helicopter dock (from 2015-16). The increase in UAD is attributable to Choules and Sirius schedule changes and the decision to retain Tobruk in operational service until July 2015.

5. Hydrographic Force comprises the hydrographic ships, survey motor launches, chart production office and meteorological and oceanographic centres. The decrease in UAD is due to changes in scheduled maintenance and associated trials periods.


32

Table 22: Navy Deliverables (Products)

Deliverables

2014-15 Budget

Estimate


Charting Projects[1] 20 17

Notes

1. A Charting Project includes all priority elements involved in producing paper and electronic charts for particular geographic area projects. Staffing pressures have resulted in the inability to complete three of the scheduled projects for 2014-15.

Table 23: Navy Deliverables (Flying Hours)

Deliverables

2014-15 Budget

Estimate


16 S-70B-2 (Seahawk)[1] 2,800 3,200

13 AS350BA (Squirrel)[2] 3,600 3,000

1 Laser airborne depth sounder aircraft (LADS)[3]

980 935

Notes

1. S-70B-2 Seahawk target increased from 2,800 to 3,200 to enable additional aircrew to be trained prior to transfer to the MH-60R.

2. A portion of the training conducted on the AS350BA has been transferred to leased helicopters as part of a plan to reduce reliance on the ageing platform.

3. LADS target decreased due to loss of hours due to inclement weather July-October 2014.


34

Table 25: Army Deliverables (Rate of Effort – Flying Hours)

Deliverables

2014-15 Budget

Estimate


2015-16 Forward

Year 1

2016-17 Forward

Year 2

2017-18 Forward

Year 3 6 CH-47D Chinook 1,700 1,657 380 - - 7 CH-47F Chinook[1] - 43 1,320 1,700 2,000 34 S-70A Black Hawk 5,090 5,090 4,230 3,730 2,000 41 B-206 Kiowa[2] 6,150 6,000 6,000 6,000 6,000 22 ARH Tiger[3] 4,726 4,151 5,846 6,227 6,227 47 MRH90 Taipan 5,400 5,400 7,100 8,400 9,300

Notes

1. The Chinook 2014-15 Rate of Effort comprised 1,700 hours Baseline which has been split into two lines to reflect transition of six CH-47D to seven CH-47F. Chinook ROE will be increased by 300 hours to 2,000 flying hours from 2017-18 as a result of successive Airworthiness Board Findings relating to low flying experience, a shortfall in the experience of flying supervisors and the requirement to balance flying hours against revised Unit Establishment and Unit Training and Assessment Plan requirements.

2. B-206 Kiowa hours have been revised down by 150 hours from the 2014-15 Budget Estimate of 6,150 hours. 6,000 hours is the limit that the Army Aviation Training System contract can support.

3. The Tiger rate of effort continues to be impacted by poor but improving sustainment support and the requirement for unscheduled maintenance.


36

Table 27: Air Force Deliverables (Flying Hours)

Deliverables 2014-15 Budget

Estimate


2015-16 Forward

Year 1

2016-17 Forward

Year 2

2017-18 Forward

Year 3

63 PC-9[1] 17,852 16,552 16,352 16,552 17,202 16 B300 King Air 350[2] 11,400 10,000 10,700 10,700 10,700 12 C-130J Hercules[3] 7,350 7,350 7,350 7,350 7,350 6 C-17A Globemaster III[4] 5,200 6,000 5,200 5,200 5,200

10 C-27J Spartan 1,000 1,000 2,500 5,000 7,500 5 KC-30A MRTT[5] 3,100 4,100 3,100 3,100 3,100 2 B737 BBJ 1,600 1,600 1,600 1,600 - 3 CL604 Challenger 2,403 2,200 2,403 2,403 -

16 AP-3C Orion[6] 7,900 7,300 6,770 6,465 4,660 6 E-7A Wedgetail 3,600 3,000 3,600 3,600 3,600

71 F/A-18A/B Hornet[7] 13,000 13,000 13,000 12,000 12,000 24 F/A-18F Super Hornet[8] 5,050 7,050 5,200 4,000 4,000 8 P-8A Poseidon - - - 450 2,762

33 Hawk 127[9] 7,500 7,000 7,000 7,000 7,000 12 E/A-18G Growler - - - 800 1,600 2 F-35A Lightning II[10] - 230 500 500 752

Notes

1. PC-9 hours for FY 14-15 expected to reduce by 1,000 hours due to lower student throughput at No.2 Flying Training School (2FTS). PC-9 hours expected to reduce over FY 15-16 to FY 17-18 due lower student throughput at 2FTS, fewer Flying Instructor Course students and public relations tasks planned at Central Flying School.

2. B300 hours for FY 14-15 expected to reduce by 1,400 hours and for FY 15-16 to FY 17-18 by 700 hours a year due to a reduced training liability.

3. C-130J hours for FY 16-17 and FY 17-18 expected to reduce by 900 hours (from the original Portfolio Budget Statements forward year estimate) due to the introduction of C-27J and additional C-17A aircraft. The acquisition of a C-130J fuselage trainer has also reduced the flying hours required for training.

4. C-17A hours for FY 14-15 expected to increase by 800 hours due to operational assignment.

5. KC-30A hours for FY 14-15 expected to increase by 1,000 hours due to operational assignment.

6. AP-3C hours for FY 14-15 expected to reduce by 600 hours due to aircraft serviceability.

7. F/A-18A/B hours reduced to 12,000 hours a year over FY 16-17 to FY 17-18 due structural life / fatigue management necessary to support aircraft ops until planned withdrawal date.

8. F/A-18F hours for FY 14-15 expected to increase by 2,000 hours due to operational assignment.

9. Hawk 127 hours expected to reduce by 500 hours a year over FY 14-15 to FY 17-18 due to reduced student throughput to achieve F/A-18A/B/F conversions.

10. F-35A Lightning II hours added for project pilot training.


44

Programme 1.10 Deliverables

• Provide investigative and policing advice and deliver investigating services to maintain discipline within the ADF. This is no longer a VCDF Group Deliverable as ADFIS transferred from VCDF Group to OSCDF on 1 July 2014.

Programme 1.10 Key Performance Indicators

• Delivery of best practice policing and investigative service to the ADF. This is no longer a VCDF Group Key Performance Indicator as ADFIS transferred from VCDF Group to OSCDF on 1 July 2014.


57

Section 3: Defence Explanatory Tables and Budgeted Financial Statements

3.1 EXPLANATORY TABLES

Special Accounts provide a means to set aside and record amounts used for specified purposes. Table 47 shows the expected additions (receipts) and reductions (payments) for each account used by the Department of Defence. The corresponding table in the PBS 2014-15 is Table 42.

Table 47: Summary of Estimated Special Account Balances[1][2]

Outcome

Opening2014-15

2013-14 [3]

$'000

Receipts2014-15

2013-14 [3]

$'000

Payments2014-15

2013-14 [3]

$'000

Adjustments2014-15

2013-14 [3]

$'000

Closing Balance2014-15

2013-14 [3]

$'000

1 66,553 26,840 -28,842 - 64,551

73,363 33,597 -40,407 - 66,553

1 324 27 -22 - 329

322 37 -35 - 324

1 167 6 -4 - 169

166 5 -4 - 167

1 1,338 68 -15 - 1,391

1,274 162 -98 - 1,338

Total Special Accounts 2014-15 68,382 26,941 -28,883 - 66,4402013-14 actual 75,125 33,801 -40,544 - 68,382

Notes

2. 2013-14 actuals in italics.3. These are all Special Public Monies under the FMA Act 1997 .

1. 2014-15 estimates in bold.

Services for Other Entities and Trust Moneys - Defence Special Account– Public Governance, Performance and Accountability Act 2013

Defence Endowments Special Account – Public Governance, Performance and Accountability Act 2013

Fedorczenko Legacy Special Account – Public Governance, Performance and Accountability Act 2013

Young Endeavour Youth Programme Special Account – Public Governance, Performance and Accountability Act 2013


58

3.1.1 Australian Government Indigenous Expenditure

Table 48: Australian Government Indigenous Expenditure

ProgrammeBill No. 1

$'000Outcome 1Defence Indigenous Employment Strategy[1][2] 1.8 Departmental 2014-15 Revised Estimate 3,838 Departmental 2014-15 Budget Estimate 3,878 Army Aboriginal Community Assistance Programme[1][3] 1.3 Departmental 2014-15 Revised Estimate 5,700 Departmental 2014-15 Budget Estimate 5,750 Total 2014-15 Revised Estimate 9,538Total 2014-15 Budget Estimate 9,628

Notes1. All amounts are GST exclusive. Revised Estimate and Budget Estimate are direct costs.2. The Defence Indigenous Development Programme, as previously disclosed, has been subsumed into the Defence Indigenous Employment Strategy.

3. The majority of costs are subsequen ly recovered from Department of Prime Minister and Cabinet under Outcome 2.2.1 Indigenous Housing and Infrastructure Appropriation.

Defence Indigenous Employment Strategy

No changes have been made to the Defence Indigenous Employment Strategy since the PBS 2014-15.

Army Aboriginal Community Assistance Programme

No changes have been made to the Army Aboriginal Community Assistance Programme since the PBS 2014-15.


59

3.1.2 Grants

The following changes to the grants programme since the PBS 2014-15 total $6,193,640, with two grant programmes and five individual grants approved.

Table 49: Grants approved since the 2014-15 Budget

Total Approvals

$'000[1]

2014-15 Revised

Estimate$'000[1]

66 661,490 1,490

59 59130 13030 30

3,276 3,276400 400400 400150 50131 4062 21

Total additional grants 6,194 5,962

Note1. Approvals and Revised Estimate are as at 12 January 2015 and exclude GST.

The Sir Richard Williams FoundationRoyal Melbourne Ins itute of TechnologyUniversity of Melbourne

Army History Research Grants SchemeFamily Support Funding Programme

Australian Member Committee of he Council for Security Cooperation in the Asia-Pacific (AUS-CSCAP)Kokoda Foundation - Australia-United States Trilogy DialogueKokoda Foundation - Young Leaders Strategic programmeAustralian Strategic Policy Ins itute (ASPI)Army and Air Force Canteen Service (AAFCANS)The Australian Sailor Pty Ltd

The following are grants that have been approved since the Portfolio Budget Statements 2014-15.

Army History Research Grants Scheme

Grants to the total of $65,718 were approved for the Army Military History Research Grants Scheme. These grants promote the study and understanding of Army, its history and traditions, which in turn assists in the achievement of Government’s Defence policy objectives through the provision of capabilities for land and special operations. The scheme has been in operation since 1992.

Family Support Funding Programme

Since the publication of the PBS 2014-15, the Family Support Funding Programme has approved grants to the total of $1,490,439 (plus GST of $52,068, where applicable). This programme provides funds to support projects and services initiated by Defence families. It is also available to existing groups in the community composed of or benefiting Defence families.

Australian Member Committee of the Council for Security Cooperation in the Asia-Pacific (AUS-CSCAP)

A grant of $59,091 (plus GST of $5,909) was approved for the AUS-CSCAP, to facilitate and promote dialogue on security issues in the Asia-Pacific. This grant is for administration and publication costs.


60

Kokoda Foundation

Two grants were approved for the Kokoda Foundation. This is an independent, not-for-profit think-tank that conducts research and fosters independent thinking on Australia’s security challenges in its activities including research publications, hosting events and the Young Leaders Strategic Congresses.

− A grant of $130,000 (plus GST of $13,000) was approved to support the Australia-United States Trilogy Dialogue.

− A grant of $30,000 (plus GST of $3,000) was approved for two weekend congresses of the Young Leaders Strategic programme.

ASPI

A grant of $3,276,000 was approved for the ASPI. ASPI's purpose is to provide fresh, independent and non-partisan ideas, and to promote discussion within government, academia and the wider public on Australia's Defence and strategic policy issues.

Army and Air Force Canteen Service (AAFCANS)

A grant to the value of $400,000 (plus GST of $40,000) has been approved for AAFCANS. The funding is to support the improvement of the amenities of canteens and convenience stores run by the Service.

The Australian Sailor Pty Ltd

A grant of $400,000 was approved for the Australian Sailor Charitable Trust as a contribution to the construction of the Australian Sailor Centenary Monument to be erected at Rous Head precinct in Fremantle, Western Australia.

The Sir Richard Williams Foundation

A multi-year grant (2014-15 to 2016-17) of $150,000 was approved for the Sir Richard Williams Foundation, to undertake independent research and analysis of contemporary issues facing Defence in today’s complex security environment. The Sir Richard Williams Foundation is an independent research organisation, which intends to take a more active and public role in the strategic Defence debate.

Royal Melbourne Institute of Technology

A grant to the value of $130,657 has been approved to fund a PhD study for a period of three years. The study is titled 'Ensuring the suitability of Computer models for integration into heterogeneous simulation environments.'

University of Melbourne

A grant to the value of $61,735 has been approved to fund a PhD study for a period of two years. The study is titled 'Sense and Avoid Utilising Radar on a Chip'.


61

3.2 RESOURCE SUMMARY

Table 50: Budgeted Departmental Net Cost of Service (cash) (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000NET COST OF SERVICE (CASH)Cost of Service

Employee payments 10,052,671 10,328,234 10,859,765 10,639,388 10,781,553Supplier payments 9,252,251 10,670,625 10,472,223 10,652,907 11,567,504Purchase of specialist military equipment 4,397,336 5,552,648 6,079,955 5,740,763 6,804,961Purchase of inventory 1,088,078 1,156,823 1,336,675 1,388,051 1,347,776Purchase of other property, plant and equipment 1,662,996 1,781,745 1,513,250 1,667,589 2,203,041Other cash used 925,004 1,055,024 1,014,447 1,011,078 999,373

Total cash used 27,378,336 30,545,099 31,276,315 31,099,776 33,704,208Own source receipts 1,689,296 1,807,064 1,820,824 1,666,986 1,796,062

Total cash received 1,689,296 1,807,064 1,820,824 1,666,986 1,796,062Net cost of service (cash) 25,689,040 28,738,035 29,455,491 29,432,790 31,908,146FUNDED BY

Appropriation Bill 1/3/5 (price of outcomes) 24,272,707 26,440,723 27,016,201 27,272,684 28,582,535Appropriation carried forward from previous year - -71,357 - - -Appropriation Bill 2/4/6 (equity injection) 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Net cash to the Official Public Account -32,441 -853 -875 -897 -919

Total funding source 25,658,651 28,715,277 29,455,491 29,432,790 31,908,146

Change in cash -30,389 -22,758 - - -


62

Portfolio Resource Statement

Table 51: Portfolio Resources[1]

DepartmentalBill No. 3

$m


$m

AppropriationAct (No.1)

2014-15

$m

AppropriationAct (No.2)2014-15[2]

$m

Return to the OPA

$m

Special Appropriation

$m

Total Appropriation

$m

Non-Appropriation

Receipts

$m

Other Non-Appropriated

Items

$m

TotalResources

Available

$mDepartment of Defence

Administered appropriations - - - - 49.6 1,085.8 1,135.4 -49.6 - 1,085.8Departmental appropriations 557.7 - - -116.9 -71.4 - 369.5 106.1 - 475.5

Total Department of Defence 557.7 - - -116.9 -21.8 1,085.8 1,504.8 56.5 - 1,561.3


$m


$m

AppropriationAct (No.1)2014-15[3]

$m


2014-15

$m

Return to the OPA

$m


$m

Total Appropriation

$m

Non-Appropriation

Receipts

$m


Items

$m

TotalResources

Available

$mDefence Materiel Organisation

Administered appropriations - - - - - - - - - -Departmental appropriations - - -1.4 - - - -1.4 -257.0 - -258.5

Total Defence Materiel Organisation - - -1.4 - - - -1.4 -257.0 - -258.5


$m


$m


2014-15

$m


2014-15

$m

Return to the OPA

$m


$m

Total Appropriation

$m

Non-Appropriation

Receipts

$m


Items

$m

TotalResources

Available

$mDefence Housing Australia

Administered appropriations - - - - - - - - - -Departmental appropriations - - - - - - - 64.5 - 64.5

Total Defence Housing Australia - - - - - - - 64.5 - 64.5

Total Portfolio 557.7 - -1.4 -116.9 -21.8 1,085.8 1,503.4 -136.0 - 1,367.4 Notes1. Figures shown include inter-agency transactions.2. Defence will seek a determination by the Minister of Finance, under the Appropriation Act (No.2) 2014-15, to decrease the Departmental outcome appropriation.3. DMO will seek a determination by the Minister of Finance, under the Appropriation Act (No.1) 2014-15, to decrease the Departmental outcome appropriation.


63

Table 52: Total Departmental and Administered Consolidated Cash Budget for the Department of Defence (including DMO)[1]

2014-15Budget

Estimate$m

APPROPRIATIONS AND CAPITALAppropriation (Bill 1)[2] 26,758 5Appropriation (Bill 3) 557.7Appropriation - Contributed Equity (Bill 2)[3] 2,346 8Appropriations for military superannuation[4] 2,242 3less Returns to the OPA -1,497 0Total cash available 30,408.3OPERATING ACTIVITIESCash received

Goods and services 550 0Net GST received 1,571 2Interest 29 6Other cash 151.4Fees 14 0

Total cash received 2,316.2Cash used

Employees 9,566 6Suppliers 10,728 0Net GST paid 1,571 2Grants 102 9Other cash 25.1Subsidies paid 104 5Military benefits 2,137 8

Total cash used 24,236.0Net cash from or (used by) operating activities -21,919.9INVESTING ACTIVITIESCash received

Proceeds from sales of land and buildings 92 3Proceeds from sales of infrastructure, plant and equipment 28 0Proceeds from sales of specialist military equipment 7 5Dividends 54 0Other cash received 0 3

Total cash received 182.1Cash used

Purchase of land and buildings 1,080 8Purchase of infrastructure, plant and equipment 583 8Purchase of specialist military equipment 5,552 6Purchase of intangibles 118.4Purchase of inventory 1,156 8Selling costs on sale of assets 6.4Finance costs 110 5Loans -

Total cash used 8,609.4Net cash from or (used by) investing activities -8,427.3FINANCING ACTIVITIESCash used

Repayment of debt 76 5Total cash used 76.5Net cash from or (used by) financing activities -76.5Net increase or (decrease) in cash and cash equivalents held -15.4

Cash and cash equivalents at the beginning of the reporting period 158.1Effect of exchange rate movements on cash and cash equivalents -

Cash and cash equivalents at the end of the reporting period 142.7

Notes1. Figures shown eliminate interagency transactions and transactions flowing between Departmental and Administered funding. 2. Includes $875.5m of appropriation planned to be drawn down by DMO.3. $116.9m will be extinguished against Appropriation Bill (No. 2).4. Cross reference with Table 76 Consolidated Budgeted Administered Statement of Cash Flows for the Department of Defence (including DMO) for the period ended 30 June.


64

Table 53: Defence Resource Statement Se

rial N

o.

Estimate as at

Budget2014-15

$'000

+

Proposed Additional Estimates

2014-15$'000

=

Total Estimate at Additional

Estimates2014-15

$'000

TotalAvailable

Appropriation 2013-14

$'000ORDINARY ANNUAL SERVICES

Outcome 1 25,462,517 121,607 25,584,124 23,440,073Outcome 2 352,729 436,130 788,859 1,022,827Outcome 3 67,740 - 67,740 54,097

1 Total Departmental outputs 25,882,986 557,737 26,440,723 24,516,9972 Total ordinary annual services (1) 25,882,986 557,737 26,440,723 24,516,997

OTHER SERVICESDepartmental non-operating

Equity injections 2,463,678 -116,914 2,346,764 1,521,4883 Total Departmental non-operating 2,463,678 -116,914 2,346,764 1,521,4884 Total other services (3) 2,463,678 -116,914 2,346,764 1,521,4885 Total available annual appropriation (2+4) 28,346,664 440,823 28,787,487 26,038,485

SPECIAL APPROPRIATIONSSpecial appropriations limited by criteria/entitlement

Defence Forces Retirement Benefits Act, 1948 Part 1 s.15D and VIC, s.82ZJ 28,598 -5,598 23,000 53,362Defence Force Retirement and Death Benefits Act, 1973 Part XII, s.125 1,888,160 -94,160 1,794,000 1,451,263Military Superannuation and Benefits Act, 1991 Part V, s.17 2,886,680 1,194,203 4,080,883 500,457Defence Force (Home Loan Assistance) Act, 1990 Part IV, s.38 1,511 -154 1,357 1,577Defence Home Ownership Assistance Scheme Act 2008 Part VI, s.84 111,653 -8,478 103,175 91,977

6 Total special appropriations 4,916,602 1,085,813 6,002,415 2,098,6367 Total appropriations (5+6) 33,263,266 1,526,636 34,789,902 28,137,121

Funding from other sources 2,431,017 56,495 2,487,512 2,514,172Returns from the OPA (net) -1,474,973 -21,796 -1,496,769 -1,500,014Previous years' outputs (appropriation receivable) - - - 67,349Cash available 466 12,266 12,732 68,460

8 Total other available resources 956,510 46,965 1,003,475 1,149,9679 Total resourcing (7+8) 34,219,776 1,573,601 35,793,377 29,287,088

Special AccountsOpening Balance 73,071 -4,689 68,382 75,125Appropriation Receipts - - - -Appropriation Receipts - other agencies - - - -Non-Appropriation Receipts to Special Accounts 26,941 - 26,941 33,801

10 Total special accounts 100,012 -4,689 95,323 108,926


65

Table 54: Third Party Payments to and from other Agencies

2014-15Budget

Estimate$'000

2014-15Revised

Estimate$'000

Variation$'000

Revenue received from Defence Housing Australia for interest on loans, dividends and competitive neutrality payments (Administered) 135,945 115,815 -20,130Payments made to Defence Housing Australia for the provision of services (Departmental) 561,491 618,540 57,049Payments made to Department of Foreign Affairs and Trade for the provision of services (Departmental) 21,713 21,713 -Payments made to the Attorney-General's Department for the provision of services (Departmental) 23,337 23,337 -Payments made to Comsuper for the provision of services (Departmental) 32,150 33,266 1,116Payments made to the Department of Finance for the provision of services (Departmental) 64,095 64,095 -Payments made to the Australian Federal Police for the provision of services (Departmental) 41,299 36,657 -4,642


66

3.3 BUDGETED FINANCIAL STATEMENTS

3.3.1 Departmental and Administered Budgeted Financial Statements

Table 55: Variation in Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)

2014-15Budget

Estimate$'000


$'000Variation

$'000Variation

%EXPENSES

Employee benefits 10,534,578 10,360,565 -174,013 -1.7Supplier expenses 12,074,675 12,639,639 564,964 4.7Grants 91,561 92,418 857 0.9Depreciation and amortisation 4,178,150 4,297,952 119,802 2.9Finance costs 146,644 148,180 1,536 1.0Write-down of assets and impairment of assets 828,637 881,394 52,757 6.4Losses from sale of assets - - - -Other 45,389 25,554 -19,835 -43.7

Total expenses 27,899,634 28,445,702 546,068 2.0LESS:OWN-SOURCE INCOMEOwn-source revenue

Sales of goods and rendering of services 798,585 822,621 24,036 3.0Other revenue 848,812 854,614 5,802 0.7

Total own-source revenue 1,647,397 1,677,235 29,838 1.8Gains

Reversals of previous asset write-downs 339,091 313,597 -25,494 -7.5Sale of assets 24,906 8,893 -16,013 -64.3Other gains 5,254 5,254 - -

Total gains 369,251 327,744 -41,507 -11.2Total own-source income 2,016,648 2,004,979 -11,669 -0.6Net cost of (contribution by) services 25,882,986 26,440,723 557,737 2.2

Revenue from Government 25,882,986 26,440,723 557,737 2.2Surplus (Deficit) attributable to the Australian Government - - - -Total comprehensive income attributable to the Australian Government - - - -


67

Table 56: Variation in Budgeted Departmental Balance Sheet (as at 30 June)

2014-15Budget

Estimate$'000


$'000Variation

$'000Variation

%ASSETSFinancial assets

Cash and cash equivalents 466 12,732 12,266 2,632.2Trade and other receivables 110,402 82,542 -27,860 -25.2Tax assets 58,205 89,757 31,552 54.2Appropriation receivable - - - -Other receivables 422,986 278,311 -144,675 -34.2

Total financial assets 592,059 463,342 -128,717 -21.7Non-financial assets

Land and buildings 16,282,730 17,373,502 1,090,772 6.7Infrastructure, plant and equipment 7,377,422 7,116,183 -261,239 -3.5Specialist military equipment 43,842,701 43,298,649 -544,052 -1.2Intangibles 553,916 832,868 278,952 50.4Heritage and cultural 1,023,969 1,002,315 -21,654 -2.1Inventories 5,941,559 6,323,134 381,575 6.4Prepayments 148,105 218,262 70,157 47.4

Total non-financial assets 75,170,402 76,164,913 994,511 1.3Assets held for sale 52,399 28,693 -23,706 -45.2

Total assets 75,814,860 76,656,948 842,088 1.1LIABILITIESPayables

Suppliers 1,027,328 1,106,242 78,914 7.7Other 463,067 378,524 -84,543 -18.3

Total payables 1,490,395 1,484,766 -5,629 -0.4Interest bearing liabilities

Leases 1,321,565 1,427,990 106,425 8.1Total interest bearing liabilities 1,321,565 1,427,990 106,425 8.1Provisions

Employee provisions 2,332,987 2,313,246 -19,741 -0.8Restoration, decontamination and decommissioning 934,431 955,283 20,852 2.2Other 3,014 2,294 -720 -23.9

Total provisions 3,270,432 3,270,823 391 -Total liabilities 6,082,392 6,183,579 101,187 1.7NET ASSETS 69,732,468 70,473,369 740,901 1.1EQUITY

Contributed equity 21,703,066 21,587,441 -115,625 -0.5Reserves 14,729,722 14,892,351 162,629 1.1Retained surplus (accumulated deficit) 33,299,680 33,993,577 693,897 2.1

Total equity 69,732,468 70,473,369 740,901 1.1


68

Table 57: Variation in Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2014-15Budget

Estimate$'000


$'000Variation

$'000Variation

%OPERATING ACTIVITIESCash received

Appropriations 25,882,986 26,440,723 557,737 2.2Goods and services 798,585 822,621 24,036 3.0Net GST received 697,148 744,111 46,963 6.7Other cash received 61,088 112,179 51,091 83.6Cash transfer from the Official Public Account (receivables) - - - -

Total cash received 27,439,807 28,119,634 679,827 2.5Cash used

Employees 10,491,430 10,328,234 -163,196 -1.6Suppliers 10,090,184 10,670,625 580,441 5.8Net GST paid 697,148 744,111 46,963 6.7Grants 91,561 92,418 857 0.9Other cash used 45,389 25,054 -20,335 -44.8Cash transfer to the Official Public Account (receivables) 853 72,210 71,357 8,365.4

Total cash used 21,416,565 21,932,652 516,087 2.4Net cash from (used by) operating activities 6,023,242 6,186,982 163,740 2.7INVESTING ACTIVITIESCash received

Proceeds from sales of land and buildings 61,675 92,317 30,642 49.7Proceeds from sales of infrastructure, plant and equipment 28,000 28,000 - -Proceeds from sales of specialist military equipment 7,549 7,549 - -Other cash received - 287 287 -

Total cash received 97,224 128,153 30,929 31.8Cash used

Purchase of land and buildings 961,469 1,080,827 119,358 12.4Purchase of infrastructure, plant and equipment 518,695 582,486 63,791 12.3Purchase of specialist military equipment 5,677,403 5,552,648 -124,755 -2.2Purchase of intangibles 75,210 118,432 43,222 57.5Purchase of inventory 1,161,511 1,156,823 -4,688 -0.4Selling costs on sale of assets 2,787 6,372 3,585 128.6Finance costs 110,532 110,532 - -

Total cash used 8,507,607 8,608,120 100,513 1.2Net cash from (used by) investing activities -8,410,383 -8,479,967 -69,584 0.8FINANCING ACTIVITIESCash received

Appropriations - contributed equity 2,463,678 2,346,764 -116,914 -4.7Total cash received 2,463,678 2,346,764 -116,914 -4.7Cash used

Repayment of debt 76,537 76,537 - -Cash to the Official Public Account - - - -

Total cash used 76,537 76,537 - -Net cash from (used by) financing activities 2,387,141 2,270,227 -116,914 -4.9Net increase (decrease) in cash and cash equivalents held - -22,758 -22,758 -

Cash and cash equivalents at the beginning of the reporting period 466 35,490 35,024 7,515.9Effect of exchange rate movements on cash and cash equivalentsat the beginning of the reporting period - - - -

Cash and cash equivalents at the end of the reporting period 466 12,732 12,266 2,632.2


69

Table 58: Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)

2013-14ActualResult

$'000


$'000


$'000


$'000


$'000EXPENSES

Employee benefits 10,172,387 10,360,565 10,868,445 10,664,809 10,814,019Supplier expenses 10,566,252 12,639,639 12,546,188 12,728,973 13,775,198Grants 48,796 92,418 92,554 94,178 6,161Depreciation and amortisation 3,867,716 4,297,952 4,445,973 4,756,345 5,005,251Finance costs 129,106 148,180 153,189 153,634 160,472Write-down of assets and impairment of assets 852,653 881,394 916,785 953,801 992,473Foreign exchange losses 3,502Losses from sale of assets 4,340 - - 6,609 -Other 89,137 25,554 36,478 14,395 28,724

Total expenses 25,733,889 28,445,702 29,059,612 29,372,744 30,782,298LESS:OWN-SOURCE INCOME

Own-source revenueSales of goods and rendering of services 827,287 822,621 810,034 832,671 866,630Other revenue 865,459 854,614 876,284 917,028 943,448

Total own-source revenue 1,692,746 1,677,235 1,686,318 1,749,699 1,810,078Gains

Foreign exchange - - - - -Reversals of previous asset write-downs 293,384 313,597 328,826 344,841 361,681Sale of assets - 8,893 22,881 - 22,346Other gains 37,863 5,254 5,386 5,520 5,658

Total gains 331,247 327,744 357,093 350,361 389,685Total own-source income 2,023,993 2,004,979 2,043,411 2,100,060 2,199,763Net cost of (contribution by) services 23,709,896 26,440,723 27,016,201 27,272,684 28,582,535

Revenue from Government 24,197,161 26,440,723 27,016,201 27,272,684 28,582,535Surplus (Deficit) attributable to the Australian Government 487,265 - - - -OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves 162,629 - - - -Total other comprehensive income/(loss) 162,629 - - - -

Total comprehensive income attributable to the Australian Government 649,894 - - - -


70

Table 59: Budgeted Departmental Balance Sheet (as at 30 June)

2013-14ActualResult

$'000


$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 35,490 12,732 12,732 12,732 12,732Trade and other receivables 71,906 82,542 82,542 82,542 82,542Tax assets 89,757 89,757 89,757 89,757 89,757Appropriation receivable 414,742 - - - -Other receivables 479,312 278,311 241,764 205,892 140,910

Total financial assets 1,091,207 463,342 426,795 390,923 325,941Non-financial assets

Land and buildings 16,976,931 17,373,502 18,093,955 18,663,926 19,669,742Infrastructure, plant and equipment 7,118,912 7,116,183 7,022,391 6,868,944 6,815,533Specialist military equipment 41,270,763 43,298,649 45,773,813 47,595,577 50,263,123Intangibles 819,577 832,868 798,009 757,715 702,175Heritage and cultural 1,002,312 1,002,315 1,002,315 1,002,315 1,002,315Inventories 6,385,571 6,323,134 6,265,960 6,204,022 6,130,013Prepayments 218,282 218,262 218,244 218,225 218,206

Total non-financial assets 73,792,348 76,164,913 79,174,687 81,310,724 84,801,107Assets held for sale 28,692 28,693 28,693 28,693 28,693

Total assets 74,912,247 76,656,948 79,630,175 81,730,340 85,155,741LIABILITIESPayables

Suppliers 1,700,866 1,106,242 1,110,276 1,092,638 1,189,847Other 384,162 378,524 384,019 320,668 284,612

Total payables 2,085,028 1,484,766 1,494,295 1,413,306 1,474,459Interest bearing liabilities

Leases 1,492,541 1,427,990 1,389,392 1,349,559 1,309,701Total interest bearing liabilities 1,492,541 1,427,990 1,389,392 1,349,559 1,309,701Provisions

Employee provisions 2,287,291 2,313,246 2,316,431 2,337,900 2,368,170Restora ion, decontamination and decommissioning 917,635 955,283 997,958 1,037,370 1,085,595Other 2,294 2,294 2,294 2,294 2,294

Total provisions 3,207,220 3,270,823 3,316,683 3,377,564 3,456,059Total liabilities 6,784,789 6,183,579 6,200,370 6,140,429 6,240,219NET ASSETS 68,127,458 70,473,369 73,429,805 75,589,911 78,915,522EQUITY

Contributed equity 19,241,530 21,587,441 24,026,731 26,186,837 29,512,448Reserves 14,892,351 14,892,351 14,892,351 14,892,351 14,892,351Retained surplus (accumulated deficit) 33,993,577 33,993,577 34,510,723 34,510,723 34,510,723

Total equity 68,127,458 70,473,369 73,429,805 75,589,911 78,915,522


71

Table 60: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000OPERATING ACTIVITIESCash received

Appropria ions 24,272,707 26,440,723 27,016,201 27,272,684 28,582,535Goods and services 874,490 822,621 810,034 832,671 866,630Net GST received 642,697 744,111 730,858 743,468 807,299Interest 2 - - - -Other cash received 93,855 112,179 50,024 47,371 48,928Cash transfer from the Official Public Account (receivables) 1,364,882 - - - -

Total cash received 27,248,633 28,119,634 28,607,117 28,896,194 30,305,392Cash used

Employees 10,052,671 10,328,234 10,859,765 10,639,388 10,781,553Suppliers 9,252,251 10,670,625 10,472,223 10,652,907 11,567,504Net GST paid 682,230 744,111 730,858 743,468 807,299Grants 48,996 92,418 92,554 94,178 6,161Other cash used 35,528 25,054 36,478 14,395 28,724Cash transfer to the Official Public Account (receivables) 1,397,323 72,210 875 897 919

Total cash used 21,468,999 21,932,652 22,192,753 22,145,233 23,192,160Net cash from (used by) operating activities 5,779,634 6,186,982 6,414,364 6,750,961 7,113,232INVESTING ACTIVITIESCash received

Proceeds from sales of land and buildings 30,223 92,317 196,359 14,127 26,495Proceeds from sales of infrastructure, plant and equipment 18,482 28,000 26,000 21,800 39,161Proceeds from sales of specialist military equipment 28,853 7,549 7,549 7,549 7,549Proceeds from sales of heritage and cultural assets - - - - -Other cash received 694 287 - - -

Total cash received 78,252 128,153 229,908 43,476 73,205Cash used

Purchase of land and buildings 1,111,175 1,080,827 971,299 1,213,817 1,680,147Purchase of infrastructure, plant and equipment 508,430 582,486 468,817 393,441 473,949Purchase of specialist military equipment 4,397,336 5,552,648 6,079,955 5,740,763 6,804,961Purchase of heritage and cultural assets - - - - -Purchase of intangibles 43,391 118,432 73,134 60,331 48,945Purchase of inventory 1,088,078 1,156,823 1,336,675 1,388,051 1,347,776Selling costs on sale of assets 6,709 6,372 5,445 4,982 5,084Finance costs 95,270 110,532 110,514 114,222 112,247

Total cash used 7,250,389 8,608,120 9,045,839 8,915,607 10,473,109Net cash from (used by) investing activities -7,172,137 -8,479,967 -8,815,931 -8,872,131 -10,399,904FINANCING ACTIVITIESCash received

Appropria ions - contributed equity 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Total cash received 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Cash used

Repayment of debt 56,271 76,537 38,598 39,833 39,858Cash to the Official Public Account - - - - -

Total cash used 56,271 76,537 38,598 39,833 39,858Net cash from (used by) financing activities 1,362,114 2,270,227 2,401,567 2,121,170 3,286,672Net increase (decrease) in cash and cash equivalents held -30,389 -22,758 - - -

Cash and cash equivalents at the beginning of the reporting period 68,460 35,490 12,732 12,732 12,732Effect of exchange rate movements on cash and cash equivalents at beginning of the repor ing period -2,581 - - - -

Cash and cash equivalents at the end of the reporting period 35,490 12,732 12,732 12,732 12,732


72

Table 61: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2014-15)

Retained Earnings

$'000

Asset Revaluation

Reserve$'000

Contributed Equity/Capital

$'000

Total Equity

$'000Opening balance as at 1 July 2014

Balance carried forward from previous period 33,993,577 14,892,351 19,241,530 68,127,458Adjustment for changes in accounting policies - - - -

Adjusted opening balance 33,993,577 14,892,351 19,241,530 68,127,458Comprehensive income

Comprehensive income recognised directly in equity:Gain/loss on revaluation of property - - - -

Subtotal comprehensive income - - - -Surplus (Deficit) for the period - - - -

Total comprehensive income recognised directly in equity - - - -Transactions with owners

Distribution to ownersReturns on capital:

Restructuring - - - -Other - - -853 -853

Contributions by ownersAppropriation (equity injection) - - 2,346,764 2,346,764Other - - - -

Sub-total transaction with owners - - 2,345,911 2,345,911Transfers between equity components - - - -

Estimated closing balance as at 30 June 2015 33,993,577 14,892,351 21,587,441 70,473,369


73

Table 62: Departmental Capital Budget Statement

2013-14ActualResult

$'000


$'000


$'000


$'000


$'000CAPITAL APPROPRIATIONS

Equity injection 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Total capital appropriations 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Represented by:

Purchase of non-financial assets 1,362,114 2,270,227 2,401,567 2,121,170 3,286,672Annual finance lease costs 56,271 76,537 38,598 39,833 39,858Other items - - - - -

Total Items 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations 1,418,385 2,346,764 2,182,784 1,795,912 2,829,658Funded by finance lease costs 571,376 - - - -Funded internally from departmental resources[1] 4,641,947 4,987,629 5,410,421 5,612,440 6,178,344

Total 6,631,708 7,334,393 7,593,205 7,408,352 9,008,002Reconciliation of cash used to acquire assets to asset movement table

Total purchases 6,631,708 7,334,393 7,593,205 7,408,352 9,008,002less additions by finance lease 571,376 - - - -less additions by creditors/borrowings - - - - -plus borrowing/finance costs 95,270 110,532 110,514 114,222 112,247plus annual finance lease costs 56,271 76,537 38,598 39,833 39,858less gifted assets - - - - -less s75/restructuring - - - - -

Total cash used to acquire assets 6,211,873 7,521,462 7,742,317 7,562,407 9,160,107

Note1. Includes the following sources of funding: - annual and prior year appropriations - donations and contributions - gifts - internally developed assets - s74 relevant agency receipts - proceeds from the sale of assets.


74

Table 63: Statement of Departmental Asset Movements (2014-15)

Land$'000

Buildings

$'000

Specialist Military

Equipment$'000

Infrastructure, Plant and

Equipment$'000

Intangibles$'000

Heritage and Cultural

Assets $'000

AssetsHeld for

Sale $'000

Total$'000

As at 1 July 2014Gross book value 4,947,963 12,307,445 77,416,060 7,510,543 1,551,774 1,002,315 28,693 104,764,793Accumulated depreciation/amortisation and impairment - 278,472 36,145,300 391,578 732,204 - - 37,547,554Opening net book balance 4,947,963 12,028,973 41,270,760 7,118,965 819,570 1,002,315 28,693 67,217,239CAPITAL ASSET ADDITIONSEstimated expenditure on new or replacement assets

By purchase - appropriation equity 9,193 1,071,634 5,483,723 582,486 118,432 - - 7,265,468By purchase - donated funds - - - - - - - -By finance lease - - - - - - - -

Total additions 9,193 1,071,634 5,483,723 582,486 118,432 - - 7,265,468Other movementsAssets held for sale - - - - - - - -Reclassifications[1] - - 79,055 11,711 - - - 90,766Depreciation and amortisation - 586,860 3,055,442 550,516 105,134 - - 4,297,952Disposal of entities or other operations (including restructuring) 69,130 12,107 - 31,651 - - - 112,888Other disposals[2] - 16,164 479,447 14,812 - - - 510,423Total other movements 69,130 615,131 3,455,834 585,268 105,134 - - 4,830,497As at 30 June 2015Gross book value 4,888,026 13,350,808 82,499,391 8,058,277 1,670,206 1,002,315 28,693 111,497,716Accumulated depreciation/amortisation and impairment - 865,332 39,200,742 942,094 837,338 - - 41,845,506Closing net book value 4,888,026 12,485,476 43,298,649 7,116,183 832,868 1,002,315 28,693 69,652,210

Notes1. Reclassification include assets first found.2. Other disposals includes write-offs.


75

Table 64: Variation in Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)

2014-15Budget

Estimate$'000


$'000Variation

$'000Variation

%INCOME ADMINISTERED ON BEHALF OF GOVERNMENTRevenueNon-taxation

Interest 34,791 29,636 -5,155 -14.8Dividends 47,795 50,128 2,333 4.9Military superannuation contributions 1,324,094 1,288,892 -35,202 -2.7Fees 13,335 13,953 618 4.6Other 50,877 29,717 -21,160 -41.6

Total non-taxation 1,470,892 1,412,326 -58,566 -4.0Total revenues administered on behalf of Government 1,470,892 1,412,326 -58,566 -4.0EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Subsidies 113,164 104,532 -8,632 -7.6Military retention benefits 95,883 95,883 - -Military superannuation benefits 4,707,555 5,802,000 1,094,445 23.2

Total expenses administered on behalf of Government 4,916,602 6,002,415 1,085,813 22.1


76

Table 65: Variation in Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

2014-15Budget

Estimate$'000

2014-15Revised

Estimate$'000

Variation$'000

Variation%

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENTFinancial assets

Cash and cash equivalents - - - -Trade and other receivables 64,709 63,046 -1,663 -2.6Investments accounted for using the equity method 2,270,046 2,317,032 46,986 2.1Loans 594,580 509,580 -85,000 -14.3

Total financial assets 2,929,335 2,889,658 -39,677 -1.4Non-financial assets

Prepayments 153,890 161,036 7,146 4.6Total non-financial assets 153,890 161,036 7,146 4.6Total assets administered on behalf of Government 3,083,225 3,050,694 -32,531 -1.1LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENTPayables

Other 5,543 5,630 87 1.6Total payables 5,543 5,630 87 1.6Provisions

Superannuation - DFRB[1] 477,100 477,100 - -Superannuation - DFRDB[2] 30,756,000 30,756,000 - -Superannuation - MSBS[3] 28,101,878 28,101,878 - -

Total provisions 59,334,978 59,334,978 - -Total liabilities administered on behalf of Government 59,340,521 59,340,608 87 -

Notes1. Defence Force Retirement Benefits.2. Defence Force Retirement and Death Benefits.3. Military Superannuation and Benefits Scheme.


77

Table 66: Variation in Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)

2014-15Budget

Estimate$'000


$'000Variation

$'000Variation

%OPERATING ACTIVITIESCash received

Interest 34,791 29,636 -5,155 -14.8Military superannuation contributions 1,324,094 1,288,892 -35,202 -2.7Fees 13,335 13,953 618 4.6Other 51,375 38,087 -13,288 -25.9

Total cash received 1,423,595 1,370,568 -53,027 -3.7Cash used

Subsidies paid 113,164 104,532 -8,632 -7.6Military benefits 2,120,422 2,137,800 17,378 0.8

Total cash used 2,233,586 2,242,332 8,746 0.4Net cash from or (used by) operating activities -809,991 -871,764 -61,773 7.6INVESTING ACTIVITIESCash received

Dividends 50,525 53,991 3,466 6.9Total cash received 50,525 53,991 3,466 6.9Cash used

Loans 85,000 - -85,000 -100.0Total cash used 85,000 - -85,000 -100.0Net cash from or (used by) investing activities -34,475 53,991 88,466 -256.6Net increase (decrease) in cash held -844,466 -817,773 26,693 -3.2

Cash at the beginning of the reporting period - - - -Cash from the Official Public Account for appropriations 2,318,586 2,242,332 -76,254 -3.3Cash to the Official Public Account -1,474,120 -1,424,559 49,561 -3.4Effect of exchange rate movements on cash and cash equivalents - - - -

Cash and cash equivalents at the end of the reporting period - - - -


78

Table 67: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15RevisedBudget

$'000


$'000


$'000


$'000INCOME ADMINISTERED ON BEHALF OF GOVERNMENTRevenueNon-taxation

Interest 30,000 29,636 30,936 32,866 34,175Dividends 53,991 50,128 50,476 57,390 54,331Military superannuation contributions 1,242,121 1,288,892 1,331,754 1,231,718 1,184,913Fees 13,448 13,953 14,511 15,092 15,695Foreign exchange 453 - - - -Other 69,756 29,717 31,402 25,893 20,339

Total non-taxation 1,409,769 1,412,326 1,459,079 1,362,959 1,309,453Total revenues administered on behalf of Government 1,409,769 1,412,326 1,459,079 1,362,959 1,309,453EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Write-down and impairment of assets 157 - - - -Subsidies 93,641 104,532 121,642 138,316 151,777Military retention benefits 65,570 95,883 77,940 93,000 105,540Military superannuation benefits 12,851,141 5,802,000 4,920,967 4,987,278 5,105,346Other 406 - - - -

Total expenses administered on behalf of Government 13,010,915 6,002,415 5,120,549 5,218,594 5,362,663


79

Table 68: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

2013-14ActualResult

$'000


$'000


$'000


$'000


$'000ASSETS ADMINISTERED ON BEHALF OF GOVERNMENTFinancial assets

Cash and cash equivalents - - - - -Trade and other receivables 75,278 63,046 63,050 69,659 69,145Investments accounted for using the equity method 2,337,796 2,317,032 2,373,768 2,432,907 2,496,965Loans 509,580 509,580 529,580 569,580 569,580

Total financial assets 2,922,654 2,889,658 2,966,398 3,072,146 3,135,690Non-financial assets

Prepayments 163,019 161,036 189,496 237,896 253,956Total non-financial assets 163,019 161,036 189,496 237,896 253,956Total assets administered on behalf of Government 3,085,673 3,050,694 3,155,894 3,310,042 3,389,646LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENTPayables

Other 5,630 5,630 5,630 5,630 5,630Total payables 5,630 5,630 5,630 5,630 5,630Provisions

Superannuation - DFRB[1] 587,100 477,100 454,200 431,600 409,500Superannuation - DFRDB[2] 40,692,000 30,756,000 31,048,000 31,300,000 31,507,000Superannuation - MSBS[3] 41,598,000 28,101,878 30,627,149 33,043,115 35,637,000

Total provisions 82,877,100 59,334,978 62,129,349 64,774,715 67,553,500Total liabilities administered on behalf of Government 82,882,730 59,340,608 62,134,979 64,780,345 67,559,130



80

Table 69: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)

2013-14ActualResult

$'000


$'000


$'000


$'000



Interest 30,000 29,636 30,936 32,866 34,175Military superannuation contributions 1,303,030 1,288,892 1,331,754 1,231,718 1,184,913Fees 13,233 13,953 14,511 15,092 15,695Other 70,237 38,087 31,746 26,198 17,794


Subsidies paid 93,553 104,532 121,642 138,316 151,777Military benefits 2,005,083 2,137,800 2,222,044 2,354,750 2,439,598

Total cash used 2,098,636 2,242,332 2,343,686 2,493,066 2,591,375Net cash from or (used by) operating activities -682,136 -871,764 -934,739 -1,187,192 -1,338,798INVESTING ACTIVITIESCash received

Dividends 51,073 53,991 50,128 50,476 57,390Total cash received 51,073 53,991 50,128 50,476 57,390Cash used

Loans - - 20,000 40,000 -Total cash used - - 20,000 40,000 -Net cash from (used by) investing activities 51,073 53,991 30,128 10,476 57,390Net increase (decrease) in cash held -631,063 -817,773 -904,611 -1,176,716 -1,281,408

Cash at the beginning of reporting period - - - - -Cash from the Official Public Account for appropriations 2,098,636 2,242,332 2,363,686 2,533,066 2,591,375Cash to the Official Public Account -1,467,573 -1,424,559 -1,459,075 -1,356,350 -1,309,967Effect of exchange rate movements on cash and cash equivalents - - - - -

Cash and cash equivalents at the end of the reporting period - - - - -


81

3.3.2 Notes to the Financial Statements

The financial statements have been prepared in accordance with the Australian Accounting Standards and the Finance Minister’s Orders.


82

3.4 CONSOLIDATED BUDGETED FINANCIAL STATEMENTS FOR THE DEPARTMENT OF DEFENCE (INCLUDING DMO)

Table 70: Consolidated Budgeted Departmental Net Cost of Service (cash) for the Department of Defence (including DMO) (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000NET COST OF SERVICE (CASH)Cost of Service

Employee payments 10,604,533 10,855,514 11,430,127 11,202,377 11,352,735Supplier payments 9,204,980 10,727,998 10,483,716 10,624,608 11,588,072Purchase of specialist military equipment 4,397,336 5,552,648 6,079,955 5,740,763 6,804,961Purchase of inventory 1,088,078 1,156,823 1,336,675 1,388,051 1,347,776Purchase of other property, plant and equipment 1,664,120 1,783,058 1,514,596 1,668,969 2,204,456Other cash used 1,567,392 1,892,534 1,904,424 1,879,508 1,973,418

Total cash used 28,526,439 31,968,575 32,749,493 32,504,276 35,271,418Own source receipts 1,960,186 2,362,408 2,369,659 2,193,251 2,419,996

Total cash received 1,960,186 2,362,408 2,369,659 2,193,251 2,419,996Net cost of service (cash) 26,566,253 29,606,167 30,379,834 30,311,025 32,851,422FUNDED BY

Appropriation Bill 1/3/5 (price of outcomes) 25,178,206 27,316,227 27,940,544 28,218,222 29,564,048Appropriation Bill 2/4/6 (equity injection) 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Net cash to the Official Public Account -32,441 -72,210 -875 -68,200 -39,156

Total funding source 26,564,150 29,590,781 30,379,834 30,311,025 32,851,422

Change in cash -2,103 -15,386 - - -


83

Table 71: Consolidated Comprehensive Departmental Income Statement (Showing Net Cost of Services) for the Department of Defence (including DMO) (for the period ending 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000EXPENSES

Employee benefits 10,731,306 10,891,933 11,426,115 11,236,944 11,392,100Supplier expenses 9,944,775 11,907,238 11,732,499 11,891,937 12,935,019Grants 61,796 102,888 101,153 104,048 14,759Depreciation and amortisation 3,868,705 4,299,278 4,447,319 4,757,725 5,006,666Finance costs 129,106 148,180 153,189 153,634 160,472Write-down of assets and impairment of assets 856,114 881,394 916,785 953,801 992,473Foreign exchange 21,559 - - - -Losses from sale of assets 4,340 - - 6,609 -Other 85,618 25,554 36,478 14,395 28,724

Total Expenses 25,703,319 28,256,465 28,813,538 29,119,093 30,530,213LESS:Own-source revenue

RevenueSales of goods and rendering of services 498,368 548,873 476,552 490,297 518,590Other revenue 328,446 59,533 52,041 51,067 50,991

Total own-source revenue 826,814 608,406 528,593 541,364 569,581Gains

Foreign exchange - - - - -Reversals of previous asset write-downs 293,388 313,597 328,826 344,841 361,681Sale of assets - 8,893 22,881 - 22,346Other gains 37,863 5,254 5,386 5,520 5,658

Total gains 331,251 327,744 357,093 350,361 389,685Total own-source income 1,158,065 936,150 885,686 891,725 959,266Net cost of (contribution by) services 24,545,254 27,320,315 27,927,852 28,227,368 29,570,947

Revenue from Government 25,104,952 27,320,315 27,927,852 28,227,368 29,570,947Surplus (Deficit) attributable to the Australian Government 559,698 - - - -OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves 162,667 - - - -Total other comprehensive income/(loss) 162,667 - - - -

Total Comprehensive income attributable to the Australian Government 722,365 - - - -


84

Table 72: Consolidated Budgeted Departmental Balance Sheet for the Department of Defence (including DMO) (as at 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000ASSETSFinancial assets

Cash and cash equivalents 158,118 142,732 142,732 142,732 142,732Trade and other receivables 73,649 91,240 91,240 91,240 91,240Tax assets 196,637 196,637 196,637 196,637 196,637Appropriation receivable 589,235 171,222 158,530 199,620 244,756Other receivables 445,394 278,298 241,751 205,879 140,897

Total financial assets 1,463,033 880,129 830,890 836,108 816,262Non-financial assets

Land and buildings 16,976,931 17,373,502 18,093,955 18,663,926 19,669,742Infrastructure, plant and equipment 7,123,973 7,121,244 7,027,452 6,874,005 6,820,594Specialist military equipment 41,270,763 43,298,649 45,773,813 47,595,577 50,263,123Intangibles 819,590 832,868 798,009 757,715 702,175Heritage and cultural 1,002,312 1,002,315 1,002,315 1,002,315 1,002,315Inventories 6,385,571 6,323,134 6,265,960 6,204,022 6,130,013Prepayments 1,601,632 1,757,021 1,757,003 1,756,984 1,756,980

Total non-financial assets 75,180,772 77,708,733 80,718,507 82,854,544 86,344,942Assets held for sale 28,692 28,693 28,693 28,693 28,693

Total assets 76,672,497 78,617,555 81,578,090 83,719,345 87,189,897LIABILITIESPayables

Suppliers 2,781,457 2,487,239 2,491,273 2,473,635 2,570,844Other 405,239 297,932 284,419 290,995 293,356

Total payables 3,186,696 2,785,171 2,775,692 2,764,630 2,864,200Interest bearing liabilities

Leases 1,492,541 1,427,990 1,389,392 1,349,559 1,309,701Total interest bearing liabilities 1,492,541 1,427,990 1,389,392 1,349,559 1,309,701Provisions

Employee provisions 2,467,706 2,495,281 2,504,782 2,532,773 2,569,777Restoration, decontamination and decommissioning 917,635 955,283 997,958 1,037,370 1,085,595Other 5,318 5,318 5,318 5,318 5,318

Total provisions 3,390,659 3,455,882 3,508,058 3,575,461 3,660,690Total liabilities 8,069,896 7,669,043 7,673,142 7,689,650 7,834,591NET ASSETS 68,602,601 70,948,512 73,904,948 76,029,695 79,355,306EQUITY

Contr buted equity 19,396,898 21,742,809 24,182,099 26,342,205 29,667,816Reserves 14,892,641 14,892,641 14,892,641 14,892,641 14,892,641Retained surplus (accumulated deficit) 34,313,062 34,313,062 34,830,208 34,794,849 34,794,849

Total equity 68,602,601 70,948,512 73,904,948 76,029,695 79,355,306


85

Table 73: Consolidated Budgeted Departmental Statement of Cash Flows for the Department of Defence (including DMO) (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000



Appropriations 25,178,206 27,316,227 27,940,544 28,218,222 29,564,048Goods and services 512,278 550,031 476,574 497,780 524,154Net GST received 1,270,453 1,571,151 1,612,236 1,602,028 1,772,746Other cash received 98,675 113,073 50,941 49,967 49,891Cash transfer from the Official Public Account (receivables) 1,364,882 - - - -


Employees 10,604,533 10,855,514 11,430,127 11,202,377 11,352,735Suppliers 9,204,980 10,727,998 10,483,716 10,624,608 11,588,072Net GST paid 1,312,239 1,571,151 1,612,236 1,602,028 1,772,746Grants 61,374 102,888 101,153 104,048 14,759Other cash used 35,529 25,054 36,478 14,395 28,724Cash transfer to the Official Public Account (receivables) 1,397,323 72,210 875 68,200 39,156

Total cash used 22,615,978 23,354,815 23,664,585 23,615,656 24,796,192Net cash from (used by) operating activities 5,808,516 6,195,667 6,415,710 6,752,341 7,114,647INVESTING ACTIVITIESCash received

Proceeds from sales of land and buildings 30,223 92,317 196,359 14,127 26,495Proceeds from sales of infrastructure, plant and equipment 19,010 28,000 26,000 21,800 39,161Proceeds from sales of specialist military equipment 28,853 7,549 7,549 7,549 7,549Other cash received 694 287 - - -

Total cash received 78,780 128,153 229,908 43,476 73,205Cash used

Purchase of land and buildings 1,111,175 1,080,827 971,299 1,213,817 1,680,147Purchase of infrastructure, plant and equipment 509,554 583,799 470,163 394,821 475,364Purchase of specialist military equipment 4,397,336 5,552,648 6,079,955 5,740,763 6,804,961Purchase of intangibles 43,391 118,432 73,134 60,331 48,945Purchase of inventory 1,088,078 1,156,823 1,336,675 1,388,051 1,347,776Selling costs on sale of assets 6,709 6,372 5,445 4,982 5,084Finance costs 95,270 110,532 110,514 114,222 112,247

Total cash used 7,251,513 8,609,433 9,047,185 8,916,987 10,474,524Net cash from (used by) investing activities -7,172,733 -8,481,280 -8,817,277 -8,873,511 -10,401,319FINANCING ACTIVITIESCash received

Appropriations - contributed equity 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Total cash received 1,418,385 2,346,764 2,440,165 2,161,003 3,326,530Cash used

Repayment of debt 56,271 76,537 38,598 39,833 39,858Cash to the Official Public Account - - - - -

Total cash used 56,271 76,537 38,598 39,833 39,858Net cash from (used by) financing activities 1,362,114 2,270,227 2,401,567 2,121,170 3,286,672Net increase (decrease) in cash and cash equivalents held -2,103 -15,386 - - -

Cash and cash equivalents at the beginning of the reporting period 162,802 158,118 142,732 142,732 142,732Effect of exchange rate movements on cash and cash equivalents at beginning of the reporting period -2,581 - - - -

Cash and cash equivalents at the end of the reporting period 158,118 142,732 142,732 142,732 142,732


86

Table 74: Consolidated Budgeted Income and Expenses Administered on Behalf of Government for the Department of Defence (including DMO) (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000INCOME ADMINISTERED ON BEHALF OF GOVERNMENTRevenueNon-taxation

Interest 30,067 29,636 30,936 32,866 34,175Dividends 53,991 50,128 50,476 57,390 54,331Military superannuation contributions 1,242,121 1,288,892 1,331,754 1,231,718 1,184,913Fees 13,448 13,953 14,511 15,092 15,695Foreign exchange 415 - - - -Other 71,717 29,967 31,652 26,143 20,589

Total non-taxation 1,411,759 1,412,576 1,459,329 1,363,209 1,309,703Total revenues administered on behalf of Government 1,411,759 1,412,576 1,459,329 1,363,209 1,309,703EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Write-down and impairment of assets 563 - - - -Subsidies 93,641 104,532 121,642 138,316 151,777Military retention benefits 65,570 95,883 77,940 93,000 105,540Military superannuation benefits 12,851,141 5,802,000 4,920,967 4,987,278 5,105,346

Total expenses administered on behalf of Government 13,010,915 6,002,415 5,120,549 5,218,594 5,362,663


87

Table 75: Consolidated Budgeted Assets and Liabilities Administered on Behalf of Government for the Department of Defence (including DMO) (as at 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000


$'000ASSETS ADMINISTERED ON BEHALF OF GOVERNMENTFinancial assets

Cash and cash equivalents - - - - -Trade and other receivables 76,780 64,548 64,552 71,161 70,647Investments accounted for using the equity method 2,337,796 2,317,032 2,373,768 2,432,907 2,496,965Loans 509,580 509,580 529,580 569,580 569,580

Total financial assets 2,924,156 2,891,160 2,967,900 3,073,648 3,137,192Non-financial assets

Prepayments 163,019 161,036 189,496 237,896 253,956Total non-financial assets 163,019 161,036 189,496 237,896 253,956Total assets administered on behalf of Government 3,087,175 3,052,196 3,157,396 3,311,544 3,391,148

PayablesOther 7,169 7,169 7,169 7,169 7,169

Total payables 7,169 7,169 7,169 7,169 7,169Provisions

Superannuation - DFRB[1] 587,100 477,100 454,200 431,600 409,500Superannuation - DFRDB[2] 40,692,000 30,756,000 31,048,000 31,300,000 31,507,000Superannuation - MSBS[3] 41,598,000 28,101,878 30,627,149 33,043,115 35,637,000

Total provisions 82,877,100 59,334,978 62,129,349 64,774,715 67,553,500Total liabilities administered on behalf of Government 82,884,269 59,342,147 62,136,518 64,781,884 67,560,669


LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT


88

Table 76: Consolidated Budgeted Administered Statement of Cash Flows for the Department of Defence (including DMO) (for the period ended 30 June)

2013-14ActualResult

$'000

2014-15Revised

Estimate$'000


$'000


$'000



Interest 30,073 29,636 30,936 32,866 34,175Military superannuation contributions 1,303,030 1,288,892 1,331,754 1,231,718 1,184,913Fees 15,707 13,953 14,511 15,092 15,695Other 71,776 38,337 31,996 26,448 18,044


Subsidies paid 93,553 104,532 121,642 138,316 151,777Military benefits 2,005,083 2,137,800 2,222,044 2,354,750 2,439,598

Total cash used 2,098,636 2,242,332 2,343,686 2,493,066 2,591,375Net cash from or (used by) operating activities -678,050 -871,514 -934,489 -1,186,942 -1,338,548INVESTING ACTIVITIESCash received

Dividends 51,264 53,991 50,128 50,476 57,390Total cash received 51,264 53,991 50,128 50,476 57,390Cash used

Loans - - 20,000 40,000 -Total Cash used - - 20,000 40,000 -Net cash from (used by) investing activities 51,264 53,991 30,128 10,476 57,390Net increase (decrease) in cash held -626,786 -817,523 -904,361 -1,176,466 -1,281,158

Cash at the beginning of reporting period - - - - -Cash from the Official Public Account for appropriations 2,098,636 2,242,332 2,363,686 2,533,066 2,591,375Cash to the Official Public Account -1,471,850 -1,424,809 -1,459,325 -1,356,600 -1,310,217Effect of exchange rate movements on cash and cash equivalents - - - - -

Cash and cash equivalents at the end of the reporting period - - - - -


89

APPENDICES

Appendix A Defence Cooperation Programme

Appendix B The Unapproved Major Capital Investment Programme (also known as the Defence Capability Plan)

Appendix C Major Capital Facilities Programme

Appendix D Approved Projects Being Developed for Private Financing Arrangements

Appendix E Status of Major Projects Foreshadowed for Government and Parliamentary Standing Committee on Public Works Consideration (PWC) in 2014-15


90

APPENDIX A: DEFENCE COOPERATION PROGRAMME

No changes have been made to the Defence Cooperation Programme since the Portfolio Budget Statements 2014-15.


92

APPENDIX C: MAJOR CAPITAL FACILITIES PROGRAMME Information is as reported in the PBS 2014-15.

Approved Major Capital Facilities Projects

Table 80: Approved Major Capital Facilities Projects by State and Federal Electorate

State and Electorate

TotalEstimated

Expenditure$m

EstimatedCumulative

Expenditureto 30 June 2014

$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m

Variation$m Project Performance Update and Explanation of Variation

Facilities in support of the New Air Combat Capability [5]

RAAF Williamtown NSW - Newcastle 1,460.4 - - 63.0 63.0 Project has been approved since the Portfolio Budget Statements 2014-15Enhanced Land Force Stage 2 Works [1]

Lone Pine Barracks NSW - Hunter - 111.6 9 9 9.4 -0.6The financial variation is a result of reduced activity onsite due to higher than expected rainfall.

Puckapunyal Training Area VIC - McEwan - 0.0 7 9 1.0 -6.9 The financial variation is a result of savings realised in the delivery of the works.

Simpson Barracks, Watsonia VIC - Jagajaga - 21.2 - 0.1 0.1 The financial variation is a result of contract completion.

RAAF Amberley QLD - Blair - 9.6 - -

Lavarack Barracks, Townsville QLD - Herbert - 65.1 - -

Townsville Training Area QLD - Kennedy - 3.9 - -

Greenbank Training Area QLD - Rankin- 119.3 2.1 3.3 1.2

The financial variation is the result of additional infrastructure design and construction necessary to meet approved capability requirements.

Gallipoli Barracks, Enoggera QLD - Ryan- 794.6 22.1 26.5 4.5

The financial variation is a result of the opportunity to deliver construction works earlier than planned.

Wide Bay Training Area QLD - Wide Bay- 68.6 18 8 17.1 -1.7

The financial variation is the result of reduced construction onsite while environmental assessment outcomes were addressed.

Kokoda Barracks, Canungra QLD - Wright- 67.1 0 0 1.8 1.8

The financial variation is a result of additional costs to deliver Information Communications Technology works.

Cultana Training Area SA - Grey- 0.3 0 8 6.1 5.3

The financial variation is a result of the opportunity to deliver construction works earlier than planned.

RAAF Edinburgh SA - Wakefield - 35.3 - 0.2 0.2 The financial variation is a result of contract completion.

Majura Field Training Area ACT - Fraser - 22.4 - -Total 1,457.8 1,319.1 61.7 65.5 3.9


93

Table 80 (Continued): Approved Major Capital Facilities Projects by State and Federal Electorate


TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


Defence Logistics Transformation Programme [1]

Defence National Storage & Distribution Centre, Moorebank NSW - Hughes -

188.8 27.7 12.0 -15.7 The financial variation is a result of savings realised in the delivery of the works.

Wadsworth Barracks, Bandiana VIC - Indi -21.5 43.2 49.6 6.4

The financial variation is the result of additional work undertaken to meet approved capability requirements.

RAAF Amberley QLD - Blair- 89.8 59.9 51.0 -8.9 The financial variation is a result of savings realised in the delivery of the works.

Townsville QLD - Herbert -35.1 59.0 54.5 -4.5 The financial variation is a result of savings realised in the delivery of the works.

RAAF Edinburgh SA - Wakefield- 0.5 16.2 21.2 5.1

The financial variation is the result of additional work undertaken to deliver an associated and separately approved capability requirement.

HMAS Stirling, Rockingham WA - Brand- - - 10.1 10.1

The financial variation is the result delivery schedule reprogramming allowing work at this site to be brought forward to financial year 2014-15.

Robertson Barracks NT - Solomon- 109.6 27.1 23.1 -4.0 The financial variation is a result of savings realised in the delivery of the works.

Total 752.7 445.3 233.1 221.5 -11.6Moorebank Units Relocation [2]

Steele Barracks, Moorebank NSW - Hughes 352.9 163.0 121.7 105.2 -16.6 The financial variation is a result of savings realised in the delivery of the works.

Albatross Redevelopment Stage 3

HMAS Albatross, Nowra NSW - Gilmore192.0 22.7 62.6 51.0 -11.6

The financial variation is a result of changes to the forecast phasings that has allowed better synchronisation with other projects being delivered at HMAS Albatross.

Facilities for MH-60R Seahawk Maritime Combat Helicopters [1]

HMAS Albatross, Nowra NSW - Gilmore 71.4 73.5 73.8 0.3The financial variation is the result of remediation of unforeseen in-ground conditions.

HMAS Stirling, Rockingham WA - Brand 5.2 5.8 6.0 0.2The financial variation is the result of additional construction work to fully meet the approved capability requirement.

Total 189.0 76.6 79.3 79.8 0.5


94



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


East Sale Redevelopment

RAAF East Sale VIC - Gippsland 185.6 65.3 102.1 100.9 -1.2 The financial variation is a result of delays in finalising subcontracts.

JP2047 Phase 3 Defence Terrestrial Communications Network Facilities Upgrade [3][5]

National 131.1 - - 60.3 60.3 Project has been approved since the Portfolio Budget Statements 2014-15.

Facilities for Air Warfare Destroyer (SEA 4000)

Garden Island NSW - Wentworth 109.9 16.0 79.9 74.4 -5.5The financial variation reflects the required expenditure phasing based on the current delivery programme.

Defence Force School of Signals

Simpson Barracks, Watsonia VIC - Jagajaga 101.3 92.3 8.9 0.3 -8.6The financial variation is a result of delays due to investigation of value for money delivery options for the final scope element.

ADFA Redevelopment

ADFA ACT - Fraser 98.5 73.0 20.9 17.3 -3.6 The financial variation is a result of savings realised in the delivery of the works.

Airfield Capital Works [1]

RAAF Base Williams VIC - Lalor - - 14.0 6.2 -7.8 The financial variation is a result of savings realised in the delivery of the works.

Woomera Aerodrome SA - Grey - - 27.0 32.0 5.0The financial variation is the result of remediation of unforseen in-ground conditions.

RAAF Base Edinburgh SA - Wakefield - - 25.0 13.4 -11.6 The financial variation is a result of savings realised in the delivery of the works.

Total 66.0 - 66.0 51.6 -14.4


95



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


Joint Project (JP) 3029 Phase 2 Space Telescope [5]

Harold E Holt, Exmouth WA - Durack 63.0 - - 4.2 4.2 Project has been approved since the Portfolio Budget Statements 2014-15.

Facilities for Landing Helicopter Dock ships (JP2048)

Garden Island NSW - Wentworth 60.3 5.0 39.6 45.5 5.9The financial variation is the result of additional work undertaken to meet approved capability requirements.

AIR 9000 Phase 5C Replacement Chinook Facilities Project [5]

RAAF Townsville QLD - Herbert 49.8 - - 13.4 13.4 Project has been approved since the Portfolio Budget Statements 2014-15.DSTO Fishermans Bend - Human Protection and Performance Division Security and Facilities Upgrade [5]

Fishermans Bend VIC - Melbourne Ports 41.1 - - 14.5 14.5

The financial variation is a result of earlier than expected contract award and construction start up.

Liverpool Military Area High Voltage Reticulation Systems Upgrade

Liverpool Military Area NSW - Hughes 19.6 16.6 2.1 5.0 2.8The financial variation is a result of the opportunity to deliver construction works earlier than planned.

JP 154 Facilities for Joint Counter Improvised Explosive Device Capability Stage 2 - Nurrungar [5]

Woomera SA - Grey14.2 - - 4.5 4.5 Project has been approved since the Portfolio Budget Statements 2014-15.


96



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


JP 154 Facilities for Joint Counter Improvised Explosive Device Capability Stage 2 - Other Sites [1]

Defence National Storage & Distribution Centre, Moorebank NSW - Hughes - - 1.3 - -1.3

Holsworthy Barracks, Holsworthy NSW - Hughes - - - 1.2 1.2

Singleton Training Area NSW - Hunter - - 0.5 0.6 0.1

Wadsworth Barracks, Bandiana VIC - Indi - - 0.5 0.8 0.3

Simpson Barracks, Watsonia VIC - Jagajaga - 1.5 0.8 2.3 1.5

Kokoda Barracks, Canungra QLD - Forde - - 0.8 - -0.8

Townsville Training Area QLD - Herbert - - 0.9 1.0 0.1

Gallipoli Barracks, Enoggera QLD - Ryan - - - 0.6 0.6

Cultana Training Area SA - Grey - - 0.7 - -0.7

Edinburgh Defence Precinct SA - Wakefield - 1.8 0.8 - -0.8

Campbell Barracks, Perth WA - Curtin - - 0.7 1.0 0.3

RAAF Darwin NT - Solomon - - 1.0 0.7 -0.3Total 13.4 3.3 8.0 8.0 0.0

The financial variations across multiple sites are as a result of numerous minor changes to the delivery of the approved capability requirement.


97



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


Low Level Bridge Repair

Fleet Base West, Stirling WA - Brand 12.8 - 8.1 2.5 -5.6The financial variation is the result of delays due to reassessment of the contracting methodology in order to reduce delivery risk.

2nd Cavalry Regiment Relocation Facilities [5]

Lavarack Barracks, Townsville QLD - Herbert 12.6 - - 12.6 12.6 Project has been approved since the Portfolio Budget Statements 2014-15.

Flood Mitigation [5]

RAAF Darwin NT - Solomon 9.9 0.1 2.5 2.6 0.1The financial variation is the result of additional investigations required to finalise site selection.

Land 998 Phase 1 Replacement Aviation Fire Truck [1][5]

RAAF Richmond NSW - Greenway - - - 0.3 0.3

RAAF Williamtown NSW - Newcastle - - - 0.3 0.3

RAAF Amberley QLD - Blair - - - 0.3 0.3

Lavarack Barracks, Townsville QLD - Herbert - - - 0.3 0.3


Robertson Barracks NT - Solomon - - - 0.3 0.3

RAAF Tindal NT - Lingiari - - - 0.3 0.3

Total 9.6 - - 1.8 1.8 Project has been approved since the Portfolio Budget Statements 2014-15.


98



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


Thermal Test Facility

Fishermans Bend VIC - Melbourne Ports 9.2 0.3 8.4 6.0 -2.4

The financial variation is a result of delays in negotiation of delivery phase contracts.

Australian Operational Concept Contingency and Stores [1]

RAAF Williams VIC - Lalor - - 0.8 0.5 -0.3 The financial variation is a result of delays in finalising delivery phase contracts.

RAAF Amberley QLD - Blair - 0.1 0.9 - -0.9This work package is no longer required as the Defence Logistics Transformation Programme satisfies the facilities requirement at this location.

RAAF Townsville QLD - Herbert - 0.2 1.5 0.5 -1.0 The financial variation is a result of delays in finalising delivery phase contracts.

RAAF Edinburgh SA - Wakefield - 0.1 0.9 - -0.9This work package is no longer required as the Defence Logistics Transformation Programme satisfies the facilities requirement at this location.

Derwent Barracks, Glenorchy TAS - Denison - 0.8 0.6 0.5 -0.1 The financial variation is a result of savings realised in the delivery of the works.

RAAF Darwin NT - Solomon - - 2.0 0.5 -1.5 The financial variation is a result of delays in finalising delivery phase contracts.

Total 7.9 1.2 6.7 2.1 -4.6


99



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


AIR 8000 Battlefield Airlifter Interim Facilities [5]

RAAF Base Richmond NSW - Greenway 6.1 0.2 5.4 5.4 0.0

Gallipoli Barracks New Entrance [5]

Gallipoli Barracks, Enoggera QLD - Ryan 4.8 - - 2.6 2.6 Project has been approved since the Portfolio Budget Statements 2014-15.

Potable Water Supply Upgrade

RAAF Pearce WA - Pearce 4.6 0.8 2.2 0.6 -1.6

The financial variation is a result of delays due to additional surveys undertaken to ensure design meets the requirement.

RAAF Amberley Behms Road Upgrade [5]

RAAF Amberley QLD - Blair 4.5 - - 4.5 4.5 Project has been approved since the Portfolio Budget Statements 2014-15.

Porton Barracks Redevelopment [5]

Porton Barracks, Edmonton QLD - Edmonton 4.3 - - 1.4 1.4 Project has been approved since the Portfolio Budget Statements 2014-15.Support Facilities Landing Helicopter Dock (LHD) Landing Crafts

HMAS Waterhen NSW - Wentworth 3.9 1.2 2.5 2.3 -0.2The financial variation is the result of changed site conditions and subsequent delays to reassess and confirm the approved scope elements.


100



TotalEstimated

Expenditure$m

EstimatedCumulative


$m

2014-15Budget

Estimate$m

2014-15Revised

Estimate$m


JP154 Phase 3A Ningaui Australian Protected Route Clearance [1][5]

Holsworthy Barracks, Holsworthy NSW - Hughes - - - 0.5 0.5

Lavarack Barracks, Townsville QLD - Herbert - - - 1.0 1.0


Robertson Barracks NT - Solomon - - - 0.9 0.9

Total 3.3 - - 3.3 3.3Projects in or about to enter Defects Liability Period [4] 13.8 38.1 24.3Total 5,452.0 2,301.9 935.3 1,071.4 136.0Notes

Project has been approved since the Portfolio Budget Statements 2014-15.

1. These projects cross state and electoral boundaries. Estimated cumulative expenditure to 30 June 2014 and expenditure estimates for 2014-15 are provided in the table per location.

3. This project is delivering facilities at over 200 locations that cross state and electoral boundaries.

2. This amount represents the Defence funded element of the Moorebank Units Relocation Project. The Department of Finance are funding the remaining element of $517.1m with a total approved project value of $870 0m.

5. Project has been approved since publication of Portfolio Budget Statements 2014-15 .

4. This amount represents the expenditure estimates for contract administration of 38 completed projects during their first year in-use and construction completion of five medium works projects that are under the $2m reporting threshold to the Public Works Committee.


101

New South Wales

Information is as reported in the PBS 2014-15.

Queensland

Facilities for Chinook Helicopter (AIR 9000 Phases 5B and 5C)

The project will provide new and upgraded facilities to support the introduction into service of the new CH47 F Chinook helicopter. The project will provide working accommodation, simulator facilities, aircraft hangars and workshops, storage facilities and supporting infrastructure for the Army’s 5th Aviation Regiment at RAAF Base Townsville, QLD. Construction commenced in late 2014 and is scheduled for completion by mid 2017.

Victoria

Watsonia - Defence Force School of Signals

This project will provide new working accommodation, improved security arrangements and upgraded living-in accommodation for the Defence Force School of Signals at Simpson Barracks. Construction commenced in October 2008. The Living-In Accommodation and other major components of the project are now complete. Remaining scope elements are scheduled for completion by late 2017.

DSTO Fishermans Bend - Human Protection Performance and Security

The project will provide new and upgraded site security and will rectify identified working accommodation shortfalls within Human Protection Performance Division facilities located at the Defence Science and Technology Organisation site at Fishermans Bend (Melbourne, VIC). The project is scheduled for completion by early 2016.

South Australia

Joint Project (JP) 154 Facilities for Joint Counter Improvised Explosive Device Capability – Phase 1 Stage 1 - Nurrungar

The project will provide test and evaluation facilities at Nurrungar (Woomera, SA). Construction is planned to commence in mid 2015 and be completed in mid 2016.

Australian Capital Territory

Information is as reported in the PBS 2014-15.

Western Australia

JP 3029 Phase 2 Space Telescope

The project will provide new facilities and infrastructure at the Harold E. Holt Naval Communications Station to house a space surveillance telescope which is being provided by the US. Construction is planned to commence in mid 2015 and be completed in late 2016.


102

VARIOUS Locations

New Air Combat Capability (AIR 6000 NACC)

This project will provide new and upgraded facilities and infrastructure to support the introduction of the joint strike fighter at RAAF Base Williamtown (Newcastle, NSW), and RAAF Base Tindal (Katherine, NT) with support facilities and infrastructure provided at Defence Establishment Myambat and seven forward operating bases. Construction commenced in early 2015 and be completed by late 2022.

Defence Terrestrial Communications Network Facilities Upgrade (JP 2047)

The project will provide upgraded and new communications infrastructure and supporting facilities at multiple Defence owned and leased sites across Australia. The project will support the introduction into service of the new Defence Terrestrial Communications Network. Construction commenced in late 2014 and is scheduled for completion by mid 2016.

JP 154 Facilities for Joint Counter Improvised Explosive Device Capability – Phase 1 Stage 2 - Other sites

The project will provide test and evaluation facilities at Edinburgh (Adelaide, South Australia), plus storage and training facilities at 14 other sites across Australia in support of the ADF’s counter IED capability. The project is scheduled for completion by mid 2016.


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APPENDIX D: APPROVED PROJECTS BEING DEVELOPED FOR PRIVATE FINANCING ARRANGEMENTS

Project Single Living Environment and Accommodation Precinct (Single LEAP Phase 2)

Information is as reported in the Portfolio Budget Statements 2014-15.


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APPENDIX E: STATUS OF MAJOR PROJECTS FORESHADOWED FOR GOVERNMENT AND PARLIAMENTARY STANDING COMMITTEE ON PUBLIC WORKS CONSIDERATION (PWC) IN 2014-15

During 2014-15, Defence expects to present a number of facilities proposals to the Government and the Parliamentary Standing Committee on Public Works (PWC). Table 81 provides details of the eighteen proposed major and medium capital projects expected to be referred to the PWC in 2014-15 or seek Government approval in 2014-15. In some cases, the projects may require the Government's approval before referral to the PWC.

Table 81: Programme of Works Foreshadowed for Consideration and Approval

State/Electorate

Actual/IndicativePWC Referral

Date

Actual/IndicativePWC Hearing

Date[1] Current StatusCapital Facilities Projects Foreshadowed for PWC Consideration in 2014-15

RAAF Base Williamtown Redevelopment Stage 2 NSW - Newcastle Early 2015 Mid 2015 In development

Facilities for Chinook Helicopter (Air 9000 Phases 5B and 5C) QLD - Herbert Early 2014 Mid 2014 Approved

AIR 6000 New Air Combat Capability (NACC) Multiple Mid 2014 Mid 2014 Approved

Defence Terrestrial Communications Network Upgrade (Joint Project (JP) 2047) Multiple Mid 2014 Mid 2014 ApprovedFacilities for Joint Counter Improvised Explosive Device Capability - Phase 1 Stage 1 - Nurrungar (Joint Project (JP) 154) SA - Grey Mid 2014 Mid 2014 Approved

Space Telescope (Joint Project (JP) 3029) Multiple Late 2014 Late 2014 Approved

AIR 9000 Helicopter Aircrew Training System Multiple Late 2014 Early 2015 Referred

AIR 7000 Phase Maritime Patrol Aircraft Multiple Late 2014 Early 2015 Referred

Campbell Barracks Redevelopment WA - Curtin Late 2014 Early 2015 In development

Darwin Hardened Barge Ramp NT - Solomon Early 2015 Mid 2015 In developmentAir Traffic Control Complex Infrastructure Project and AIR5431 ph2/3 Fixed Base Defence Air Traffic Management and Control System Multiple Early 2015 Mid 2015 In development

17th Construction Squadron Relocation Project QLD - Blair Mid 2015 Mid 2015 In development

Medium Projects Foreshadowed to Seek Approval in 2014-15

Army Emergency Response Facilities, Luscombe Airfield - Holsworthy NSW - Hughes In development

Samford Road - Gallipoli Barracks EnoggeraQLD - Ryan

Approved

Cyber Security Operational Centre (COSC) Refurbishment - Russell Offices

ACT - FraserApproved

Proof & Experimental Establishment (P&EE) Road and Car Park Upgrade - Graytown

VIC - MurrayIn development

Proof & Experimental Establishment (P&EE) Vibration Test Facility - Port Wakefield

SA - WakefieldIn development

Joint Project (JP) 154 Phase 3A (Project Nigaui) Australian Protected Route Clearance Capability

MultipleApproved

Note1. Hearing dates will be subject to the Committee's consideration and agreement.


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RAAF Base Williamtown Redevelopment Stage 2

The project will sustain and improve the functionality and capability of RAAF Base Williamtown (Newcastle, NSW) including upgrades or replacement of critical ageing infrastructure to meet future requirements. Subject to Government and Parliamentary approval, construction is scheduled to commence in mid 2016 and be completed by mid 2021.

Facilities for Chinook Helicopter (Air 9000 Phases 5B and 5C)

The project will provide new and upgraded facilities to support the introduction into service of the new CH47 F Chinook helicopter. The project will provide working accommodation, simulator facilities, aircraft hangars and workshops, storage facilities and supporting infrastructure for the Army’s 5th Aviation Regiment at RAAF Base Townsville, QLD. Construction commenced in late 2014 and is scheduled for completion in mid 2017.

AIR 6000 New Air Combat Capability

This project will provide new and upgraded facilities and infrastructure to support the introduction of the joint strike fighter at RAAF Base Williamtown (Newcastle, NSW), and RAAF Base Tindal (Katherine, NT) with support facilities and infrastructure provided at Defence Establishment Myambat and seven forward operating bases. Construction commenced in early 2015 and is scheduled for completion by late 2022.

Defence Terrestrial Communications Network Facilities Upgrade (Joint Project (JP) 2047)

The project will provide upgraded and new communications infrastructure and supporting facilities at multiple Defence owned and leased sites across Australia. The project will support the introduction into service of the new Defence Terrestrial Communications Network. Construction commenced in late 2014 and is scheduled for completion by mid 2016.

JP 154 Facilities for Joint Counter Improvised Explosive Device Capability – Phase 1 Stage 1 - Nurrungar

The project will provide test and evaluation facilities at Nurrungar (Woomera, SA). Construction is planned to commence in mid 2015 and is scheduled for completion in mid 2016.

JP 3029 Phase 2 Space Telescope

The project will provide new facilities and infrastructure at the Harold E. Holt Naval Communications Station to house a space surveillance telescope from the US. Subject to Government and Parliamentary approval, construction is planned to commence in mid 2015 and be completed in late 2016.

AIR 9000 Phase 7 Helicopter Aircrew Training System

The project will provide new and upgraded training facilities to support the introduction of the new joint Navy and Army Helicopter Aircrew Training System. The project will provide working accommodation, simulation facilities, training facilities and aircraft hangars at HMAS Albatross, Nowra NSW as well as communication rooms and helicopter operation areas at Jervis Bay Air field, ACT. Subject to Parliamentary approval, construction is scheduled to commence in mid 2015 and be completed in mid 2017.


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AIR 7000 Maritime Patrol Aircraft Phase 2B

The project will provide new and upgraded facilities and infrastructure to support the introduction of the P-8A aircraft at RAAF Base Edinburgh, RAAF Base Townsville, RAAF Base Pearce and RAAF Base Darwin. Subject to Parliamentary approval, construction is planned to commence in late 2015 and be completed by mid 2020.

Campbell Barracks Redevelopment

The project will provide a new Headquarters for the Special Air Services Regiment, communications facilities, working accommodation, storage facilities and supporting site infrastructure at Campbell Barracks. Subject to Government and Parliamentary approval, construction is planned to commence in late 2015 and be completed by late 2018.

Darwin Hardened Barge Ramp

The project will provide funding to the Northern Territory Government’s Land Development Corporation for the construction and sustainment of a multi-user barge ramp facility at East Arm Port in Darwin. The Facility will support mounting operations for the new Canberra Class Landing Helicopter Dock Ships. Subject to Government and Parliamentary approval, construction is planned to commence in mid 2015 and be completed by mid 2016.

Air Traffic Control Complex Infrastructure Project and AIR5431 ph2/3 Fixed Base Defence Air Traffic Management and Control System

The project will provide facilities in support of replacement Air Traffic Management Surveillance, Command and Control Systems under AIR5431 Phases 2 and 3, including the replacement of aged and degraded Air Traffic Control Towers. Subject to Government and Parliamentary approval, construction is planned to commence in late 2015 and be completed by late 2021.

17th Construction Squadron Relocation Project

The project will provide facilities to collocate 17th Construction Squadron with 6th Engineer Support Regiment and 21st Construction Squadron at RAAF Base Amberley. Subject to Government and Parliamentary approval, construction is planned to commence in late 2015 and be completed by late 2016.

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