portfolio additional estimates statements 2019-20 · 2020-02-13 · links to portfolio budget...

USER GUIDE AND PORTFOLIO

Portfolio Additional Estimates Statements 2019-20

Defence Portfolio

Explanations of Additional Estimates 2019-20

Defence Portfolio Additional Estimates Statements 2019–20

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© Commonwealth of Australia 2020

ISBN 978-1-925890-23-5 (Print) ISBN 978-1-925890-24-2 (Online)

This publication is available for your use under a Creative Commons BY Attribution 3.0 Australia, with the exception of the Commonwealth Coat of Arms, the Department of Defence, the Australian Signals Directorate and the Defence Housing Australia logo, photographs, images, signatures and where otherwise stated. The full licence terms are available from http://creativecommons.org/licenses/by/3.0/au/legalcode.

Use of the Department of Defence’s material under a Creative Commons BY Attribution 3.0 Australia licence requires you to attribute the work (but not in any way that suggests that the Department of Defence endorses you or your use of the work).

Department of Defence material used 'as supplied'

Provided you have not modified or transformed the Department of Defence material in any way including, for example, by changing the Department of Defence text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Department of Defence statistics – then the Department of Defence prefers the following attribution:

Source: The Australian Government Department of Defence.

Derivative material

If you have modified or transformed the Department of Defence‘s material, or derived new material from those of the Department of Defence in any way, then the Department of Defence prefers the following attribution:

Based on The Australian Government Department of Defence’s data.

Australian Signals Directorate material used 'as supplied'

Provided you have not modified or transformed the Australian Signals Directorate material in any way including, for example, by changing the Australian Signals Directorate text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Australian Signals Directorate statistics – then the Australian Signals Directorate prefers the following attribution:

Source: The Australian Government Australian Signals Directorate.

Derivative material

If you have modified or transformed the Australian Signals Directorate ‘s material, or derived new material from those of the Australian Signals Directorate in any way, then the Australian Signals Directorate prefers the following attribution:

Based on The Australian Government Australian Signals Directorate’s data.

http://creativecommons.org/licenses/by/3.0/au/deed.en

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Defence Housing Australia material used 'as supplied'

Provided you have not modified or transformed the Defence Housing Australia material in any way including, for example, by changing the Defence Housing Australia text; calculating percentage changes; graphing or charting data; or deriving new statistics from published Defence Housing Australia statistics – then the Defence Housing Australia prefers the following attribution:

Source: The Australian Government Defence Housing Australia.

Derivative material

If you have modified or transformed the Defence Housing Australia‘s material, or derived new material from those of the Defence Housing Australia in any way, then the Defence Housing Australia prefers the following attribution:

Based on The Australian Government Defence Housing Australia’s data.

Use of the Coat of Arms

The terms under which the Coat of Arms can be used are set out on the It’s an Honour website (see www.itsanhonour.gov.au).

Other Uses

Inquiries regarding this licence and any other use of this document are welcome at:

Assistant Secretary Budgeting and Reporting R1-2-B024 Department of Defence PO Box 7901 Canberra BC ACT 2610 Telephone: (02) 6265 7341 Email: [email protected]

http://www.itsanhonour.gov.au/

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Letter of Transmitttal


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ABBREVIATIONS AND CONVENTIONS

The following notations may be used:

NEC/nec not elsewhere classified

- nil

.. not zero, but rounded to zero

na not applicable (unless otherwise specified)

nfp not for publication

$m $ million

Figures in tables and in the text may be rounded. Figures in text are generally rounded to one decimal place, whereas figures in tables are generally rounded to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Enquiries

Should you have any enquiries regarding this publication please contact Assistant Secretary Budgeting and Reporting, Defence Finance Group, Department of Defence on (02) 6265 7341. Links to Portfolio Budget Statements (including Portfolio Additional Estimates Statements and Portfolio Supplementary Additional Estimates Statements) can be located on the Australian Government Budget website at www.budget.gov.au.

http://www.budget.gov.au/

User Guide

vii

USER GUIDE TO THE

PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS


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User Guide

ix

USER GUIDE

The purpose of the 2019-20 Portfolio Additional Estimates Statements (PAES), like that of the Portfolio Budget Statements (PB Statements), is to inform Senators and Members of Parliament of the proposed allocation of resources to Government outcomes by entities within the portfolio. The focus of the PAES differs from the PB Statements in one important aspect. While the PAES include an Entity Resource Statement to inform Parliament of the revised estimate of the total resources available to an entity, the focus of the PAES is on explaining the changes in resourcing by outcomes since the Budget. As such, the PAES provides information on new measures and their impact on the financial and/or non-financial planned performance of programs supporting those outcomes.

The PAES facilitate understanding of the proposed appropriations in Appropriation Bills (Nos. 3 and 4) and Appropriation (Parliamentary Departments) Bill (No. 2) 2019-2020. In this sense, the PAES is declared by the Additional Estimates Appropriation Bills to be a ‘relevant document’ to the interpretation of the Bills according to section 15AB of the Acts Interpretation Act 1901.

Whereas the Mid-Year Economic and Fiscal Outlook (MYEFO) 2019-20 is a mid-year budget report which provides updated information to allow the assessment of the Government’s fiscal performance against its fiscal strategy, the PAES update the most recent budget appropriations for entities within the portfolio.


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STRUCTURE OF THE PORTFOLIO ADDITIONAL ESTIMATES

STATEMENTS

The PAES are presented in three parts with subsections.

User guide

Provides a brief introduction explaining the purpose of the PAES.

Portfolio overview

Provides an overview of the portfolio, including a chart that outlines the outcomes for entities

in the portfolio.

Entity Additional Estimates Statements

A statement (under the name of the entity) for each entity affected by Additional Estimates.

Section 1: Entity

overview and resources

This section details the changes in total resources available to an

entity, the impact of any measures since Budget, and impact of

Appropriation Bills Nos. 3 and 4.

Section 2: Revisions to

outcomes and planned

performance

This section details changes to Government outcomes and/or

changes to the planned performance of entity programs.

Section 3: Special

account flows and

budgeted financial

statements

This section contains updated explanatory tables on special

account flows and staffing levels and revisions to the budgeted

financial statements.

Portfolio glossary

Explains key terms relevant to the Portfolio.

Acronyms

Alphabetical guide to the Statements.

Table of Contents

1

CONTENTS

PORTFOLIO OVERVIEW ................................................................................................................3

Ministers and their Portfolio Responsibilities ............................................................................. 6

Changes affecting the Portfolio ........................................................................................................6

Portfolio Structure and Outcomes ....................................................................................................8

DEPARTMENT OF DEFENCE ..................................................................................................... 11

Section 1: Defence Overview and Resources ........................................................................... 13

1.1 Strategic Direction Statement ................................................................................................. 13

1.2 Defence Resource Statement ................................................................................................. 16

1.3 Budget Measures .................................................................................................................... 19

1.4 Capital Investment Program .................................................................................................... 21

1.5 People ..................................................................................................................................... 23

Section 2: Defence Revisions to Outcomes and Planned Performance ................................ 27

2.1 Changes to Outcome and Program Structures ....................................................................... 27

2.2 Outcomes and Performance Information ................................................................................ 28

Section 3: Defence Explanatory Tables and Budgeted Financial Statements ....................... 55

3.1 Explanatory Tables .................................................................................................................. 55

3.2 Resource Summary ................................................................................................................. 59

3.3 Budgeted Financial Statements .............................................................................................. 62

APPENDICES ............................................................................................................................... 79

Appendix A: Defence Cooperation Program ................................................................................. 80

Appendix B: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure ............................... 82

Appendix C: Top 30 Sustainment Products by 2019–20 Forecast Expenditure ........................... 87

Appendix D: Facilities and Infrastructure Program ....................................................................... 91

Appendix E: Status of Major Projects Foreshadowed for Government and Parliamentary Standing Committee on Public Works Consideration (PWC) in 2019–20 .................................................. 107


2

AUSTRALIAN SIGNALS DIRECTORATE ................................................................................. 111

Section 1: ASD Overview and Resources ................................................................................ 113

1.1 Strategic Direction Statement ................................................................................................ 113

1.2 ASD Resource Statement ..................................................................................................... 115

1.3 Budget Measures .................................................................................................................. 117

Section 2: ASD Revisions to Outcomes and Planned Performance ..................................... 118

2.1 Outcome and Performance Information ................................................................................ 118

Section 3: ASD Explanatory Tables and Budgeted Financial Statements ........................... 120

3.1 Explanatory Tables ................................................................................................................ 120

3.2 Budgeted Financial Statements ............................................................................................ 121

DEFENCE HOUSING AUSTRALIA ............................................................................................ 127

Section 1: DHA Overview and Resources ................................................................................ 129

1.1 Strategic Direction Statement ................................................................................................ 129

1.2 DHA Resource Statement ..................................................................................................... 132

1.3 Budget Measures .................................................................................................................. 133

Section 2: DHA Revisions to Outcomes and Planned Performance ..................................... 134


Section 3: DHA Explanatory Tables and Budgeted Financial Statements ........................... 136



GLOSSARY................................................................................................................................. 142

ACRONYMS ................................................................................................................................ 148

Portfolio Overview

3

PORTFOLIO OVERVIEW


4


Portfolio Overview

5

DEFENCE PORTFOLIO OVERVIEW

The Defence Portfolio consists of component organisations that together are responsible for the defence of Australia and its national interests. The most significant bodies are:

the Department of Defence, headed by the Secretary of the Department of Defence; and

the Australian Defence Force (ADF), commanded by the Chief of the Defence Force and consisting of the three Services.

Defence is established as a Department of State under the Administrative Arrangements Order. The Department of Defence operates under the Public Service Act 1999 and is a non-corporate Commonwealth entity under the Public Governance, Performance and Accountability Act 2013. The ADF is constituted through the Defence Act 1903. In practice, these bodies work together closely and are broadly regarded as one organisation known simply as ‘Defence’.

The Defence Portfolio includes the Australian Signals Directorate (ASD) and Defence Housing Australia (DHA). The portfolio also contains some smaller entities, including a number of statutory offices, trusts and companies created by the Public Governance, Performance and Accountability Act 2013, Defence Force Discipline Act 1982 and Defence Act 1903, which are independent but reside administratively within Defence.

The Department of Veterans’ Affairs (DVA) and associated bodies, as designated in the Administrative Arrangements Order, also form part of the Defence Portfolio. DVA is administered separately to Defence, and information related to the Department can be found in its Portfolio Budget and Portfolio Additional Estimate Statements.

A full outline of the Department of Defence’s Portfolio Overview can be found in the Portfolio

Budget Statements 2019–20 (PBS 2019–20).


6

Ministers and their Portfolio Responsibilities

CHANGES AFFECTING THE PORTFOLIO

Senator the Hon Linda Reynolds CSC was sworn in on 29 May 2019 as the Minister for Defence.

The Hon Alex Hawke MP was sworn in on 29 May 2019 as the Assistant Defence Minister.

The Hon Darren Chester MP was sworn in for a second term on 29 May 2019 as the Minister for Veterans and Defence Personnel.

The Hon Melissa Price MP was sworn in on 29 May 2019 as the Minister for Defence Industry.

The Ministers and their portfolio responsibilities are as follows:

Senator the Hon Linda Reynolds, CSC, Minister for Defence

Oversight of all aspects of the Defence portfolio

Defence Budget

Defence Reform and Enterprise Management

Strategic Policy

International Policy and Engagement

Intelligence

Australian Signals Directorate

ADF Operations

Defence Planning Guidance

The Integrated Investment Program

Force Structure Review

Development of capability requirements

Capability/cost trade off during capability life cycle

People, Equipment and Readiness

Force Posture, including USFPI and ASMTI

Science and Technology policy and support to capability and operations

Defence Security and Vetting Policy

Estate and Infrastructure Policy

Defence Information and Communication Technology The Hon Alex Hawke, MP, Assistant Defence Minister Minister for International Development and the Pacific

Support the Minister for Defence with Defence's contribution to the Australian Government's Indo-Pacific Step-Up, including:

o Capacity building in the Pacific o Delivery of key infrastructure projects in the Pacific o Pacific Maritime Security Program and acquisition of the Large Hulled Vessel o Pacific Support Team o Defence engagement activities in the Pacific, including training and sporting

relationships o Defence fora in the Pacific, including the Annual Joint Heads of Pacific security

event o Defence commemorations across the Pacific

Portfolio Overview

7

The Hon Darren Chester MP, Minister for Veterans and Defence Personnel

Personnel policy and support

Veterans policy and support

Defence Health Services

Military justice

Honours and Awards

Army, Navy and Air Force Cadets

Parliamentary Exchange Program

Transition from ADF

Defence Housing Australia

International engagement on veterans and defence personnel matters

Defence's response to perfluorinated chemicals matters The Hon Melissa Price MP, Minister for Defence Industry

Support the Minister for Defence in the management of capability acquisition and sustainment projects

Australian Industry Capability Program

Australian Defence Industry development

Defence Exports

Global supply chains

Equipment disposals

Centre for Defence Industry Capability

Defence Innovation Hub

Science and Technology engagement with Australian industry, including the Next Generation Technology Fund

Test and evaluation policy and procedures

International engagement on defence industry matters

Estate and Infrastructure management and delivery


8

PORTFOLIO STRUCTURE AND OUTCOMES

Figure 1: Defence Portfolio Structure and Outcomes

The Defence Portfolio Structure and Outcomes is effective at the time of this publication release.

Minister for Defence Senator the Hon Linda Reynolds CSC

Assistant Defence Minister The Hon Alex Hawke MP

Minister for Veterans and Defence Personnel The Hon Darren Chester MP

Secretary Mr Greg Moriarty

Chief of the Defence Force General Angus J. Campbell, AO, DSC

Minister for Defence Industry The Hon Melissa Price MP

Department of Defence Secretary: Mr Greg Moriarty

Chief of the Defence Force: General Angus J. Campbell, AO, DSC

Outcome 1: Defend Australia and its national interests through the conduct of operations and provision of

support for the Australian community and civilian authorities in accordance with Government direction.

Outcome 2: We protect and advance Australia’s strategic interests through the provision of strategic policy, the development, delivery and sustainment of military, intelligence and enabling capabilities, and the promotion of

regional and global security and stability as directed by Government.


Director General: Ms Rachel Noble PSM

Outcome 1: Defend Australia from global threats and advance our national interests through the provision of

foreign signals intelligence, cyber security and offensive cyber operations, as directed by Government.


Managing Director: Mr Barry Jackson

Outcome 1: To contribute to Defence outcomes by providing total housing services that meet Defence

operational and client needs through a strong customer and business focus.

Department of Defence



Military Justice Appointments

Navy

Army

Air Force

Trusts, companies and other statutory offices and entities.

Australian Defence Force

Portfolio Overview

9

Defence Portfolio Bodies

The following changes have taken place since the PBS 2019-20:

Royal Australian Navy Central Canteens Board

Commodore Simon Ottaviano, RAN was appointed as Chairperson on 7 October 2019.

Royal Australian Navy Relief Trust Fund

Commodore Shane Glassock CSC, RAN was appointed as Chairperson on 8 April 2019.


10



11

DEPARTMENT OF DEFENCE

Entity Resources and Planned Performance

Section 1: Defence Overview and Resources .......................................................................... 13

1.1 Strategic Direction Statement ................................................................................................. 13

1.2 Defence Resource Statement ................................................................................................. 14

1.3 Budget Measures .................................................................................................................... 19

1.4 Capital Investment Program .................................................................................................... 21

1.5 People ..................................................................................................................................... 23

Section 2: Defence Revisions to Outcomes and Planned Performance ................................ 27

2.1 Changes to Outcome and Program Structures ....................................................................... 27

2.2 Outcomes and Performance Information ................................................................................ 28

Section 3: Defence Explanatory Tables and Budgeted Financial Statements ....................... 55

3.1 Explanatory Tables .................................................................................................................. 55

3.2 Resource Summary ................................................................................................................. 59

3.3 Budgeted Financial Statements .............................................................................................. 62


12



13


Section 1: Defence Overview and Resources

1.1 STRATEGIC DIRECTION STATEMENT

No changes have been made to the Defence Strategic Direction Statement since the PBS 2019–20.


14

Figure 2: Defence Organisational Chart

This Defence Organisational Chart is effective at the time of this publication release.

Minister for Defence Senator the Hon Linda Reynolds CSC

Assistant Defence Minister The Hon Alex Hawke MP

Minister for Veterans and Defence Personnel

The Hon Darren Chester MP

Secretary Mr Greg Moriarty

Chief of the Defence Force General Angus J. Campbell, AO, DSC

****

Minister for Defence Industry The Hon Melissa Price MP

Stars (*) refer to ADF Star Rank This Defence Organisational Chart is effective at the time of this publication release.

Chief of Joint Capabilities Air Marshal Warren McDonald, AM, CSC ***

Vice Chief of the Defence Force Vice Admiral David Johnston, AO ***

Chief of Navy Vice Admiral Michael Noonan, AO ***

Chief of Army Lieutenant General Rick Burr, AO, DSC, MVO ***

Chief of Air Force Air Marshal Mel Hupfeld, AO, DSC ***

Chief of Joint Operations Lieutenant General Greg Bilton, AM, CSC *** Deputy Secretary

Strategic Policy and Intelligence Mr Peter Tesch

Chief Defence Scientist Professor Tanya Monro

Deputy Secretary Capability Acquisition and Sustainment Mr Tony Fraser, AO, CSC

Deputy Secretary Defence People Ms Justine Greig

Chief Finance Officer Mr Steven Groves

Associate Secretary Ms Rebecca Skinner

Chief Information Officer Mr Stephen Pearson

Deputy Secretary Estate and Infrastructure Mr Steve Grzeskowiak

Deputy Secretary National Naval Shipbuilding Mr Tony Dalton


15

Senior Executive Changes

The following changes have taken place since the PBS 2019–20:

Mr Peter Tesch was appointed as the Deputy Secretary Strategic Policy and Intelligence with effect May 2019.

On 28 June 2019, Lieutenant General Greg Bilton, AM, CSC was appointed as the Chief Joint Operations.

On 4 July 2019, Air Marshal Mel Hupfeld AO, DSC was appointed as the Chief of Air Force.

On 29 July 2019, Mr Tony Dalton was appointed as the Deputy Secretary of National Naval Shipbuilding.

Organisational Structure

No changes have taken place since the PBS 2019–20.

Program Structure

No changes have taken place since the PBS 2019–20.


16

1.2 DEFENCE RESOURCE STATEMENT

Table 1: Total Defence Resourcing

Seri

al N

o.

2018-19

Actual

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Defence resourcing

1 32,407,283 Appropriation for departmental outcomes 33,878,310 34,348,197 469,887 1.4 35,408,700 36,713,799 39,551,268

2 3,343,482 Equity injection appropriation 3,946,645 4,040,467 93,822 2.4 5,749,426 8,368,235 9,747,336

3 620,000 Prior year appropriation - - - - - - -

4 36,370,765 Current year's appropriation (1 + 2 + 3) 37,824,955 38,388,664 563,709 1.5 41,158,125 45,082,036 49,298,605

5 - Draw dow n of appropriations carried forw ard - - - - - - -

6 - Other appropriation receivable movements - - - - - - -

7 -14,914 Return to the Official Public Account[1] - - - - - - -

8 -14,914 Funding from / to the OPA (5 + 6 +7) - - - - - - -

9 36,355,851 Funding from Government (4 + 8) 37,824,955 38,388,664 563,709 1.5 41,158,125 45,082,036 49,298,605

10 70,831 Capital receipts 133,265 231,797 98,532 73.9 103,099 102,081 74,243

11 708,837 Ow n source revenue (s74 receipts) [2] 603,560 491,718 -111,842 -18.5 559,151 584,774 590,860

12 - Prior year receipts - - - - - - -

13 779,668 Funding from other sources (10 + 11 + 12) 736,825 723,515 -13,310 -1.8 662,250 686,855 665,103

14 37,135,519 Total Defence funding (9 + 13) 38,561,780 39,112,179 550,400 1.4 41,820,375 45,768,891 49,963,709

Administered

15 8,528,929 Administered special appropriations 6,943,861 9,908,098 2,964,237 42.7 7,089,298 7,286,999 7,494,951

16 1,660,197 Ow n source revenue 1,358,706 1,358,707 1 0.0 1,263,973 1,179,579 1,094,625

17 -1,660,197 Returns to the Official Public Account -1,358,706 -1,358,707 -1 0.0 -1,263,973 -1,179,579 -1,094,625

18 8,528,929 Total Administered funding (15 + 16 + 17) 6,943,861 9,908,098 2,964,237 42.7 7,089,298 7,286,999 7,494,951

19 45,664,448 Total Defence resourcing (14 + 18) 45,505,641 49,020,277 3,514,637 7.7 48,909,673 53,055,890 57,458,660

Appropriation carried forward

20 255,893

Appropriation receivable including previous year's

outputs 48,558 255,893 207,335 427.0 255,893 255,893 255,893

21 76,179 Cash in bank - Departmental 72,241 76,179 3,938 5.5 76,179 76,179 76,179

22 114,576 Cash in bank - Administered 145,174 158,466 13,292 9.2 158,466 158,466 158,466

23 446,648 Total appropriations carried forward (20 + 21) 265,973 490,538 224,565 84.4 490,538 490,538 490,538

Notes

1. Represents net transfers to and from the Official Public Account.

2. All f igures are net of GST.


17

Annual Appropriations

Table 2: Appropriation Bill (No. 3) 2019–20[1]

Table 3: Appropriation Bill (No. 4) 2019–20

2018-19

Available

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Increase in

Estimates

$'000

Decrease in

Estimates

$'000

Departmental Outputs

Outcome 1 740,839 706,139 799,758 93,619 -

Outcome 2 31,896,909 33,172,171 33,548,439 376,268 -

Total 32,637,748 33,878,310 34,348,197 469,887 -

Note

1. Additional appropriation provided in Appropriation Bill (No. 3) w ill be $488.8m as the efficiency dividend of $19.0m w as

retrospectively adjusted against Bill 1 after the 2019-20 budget estimate.

2018-19

Available

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Increase in

Estimates

$'000

Decrease in

Estimates

$'000

Non-operating

Equity injections 3,343,482 3,946,645 4,040,467 93,822 -

Total non-operating 3,343,482 3,946,645 4,040,467 93,822 -


18

Drawdown of Appropriations Carried Forward

Table 4: Revised Appropriation Receivable

Funding from Other Sources

Own Source Revenue

Table 5: Variation in Own Source Revenue

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Portfolio Budget Statements 2019-20 Estimates 48,558 48,558 48,558 48,558

Net movement 207,335 207,335 207,335 207,335

Closing balance appropriation receivable 255,893 255,893 255,893 255,893

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Portfolio Budget Statements 2019-20 Estimates 603,560 593,697 620,923 617,246

Variation in ow n source revenue -111,842 -34,546 -36,149 -26,386

Own source revenue revised estimates 491,718 559,151 584,774 590,860

Prior year receipts - - - -

Total 491,718 559,151 584,774 590,860


19

1.3 BUDGET MEASURES

2019–20 Budget Measures and Other Budget Adjustments

Table 6: Variation to Defence Funding

Program

2019-20

Budget

Estimate

$m

2020-21

Forward

Estimate

$m

2021-22

Forward

Estimate

$m

2022-23

Forward

Estimate

$m

Departmental Budget Measures

Expenditure Measures

Defence Home Ow nership Assistance Scheme[1] 2.10 - -0.3 -0.6 -0.9

Protected Mobile Fires Project (LAND 8112) 2.6 - 6.8 7.0 100.6

Cyber Security Package[2] Various -10.9 -26.7 -33.2 -34.3

Tasmanian Defence Innovation and Design Precinct[3] 2.13 - - - -

Counter Foreign Interference Taskforce[4] 2.1 nfp nfp nfp nfp

Efficiency Dividend Extension[5] Various -18.9 -57.1 -80.4 -86.9

Operation Bushfire Assist 1.3 87.9 - - -

Total Departmental Budget Measures 58.1 -77.2 -107.1 -21.5

Other Budget Adjustments

Foreign Exchange Various 488.7 395.9 469.9 548.8

Operation OKRA 1.2 9.9 - - -

Operation MANITOU 1.2 1.2 - - -

Transfer of Projects to Australian Signals Directorate (ASD) 2.1 -4.0 - - -

Other Budget Adjustments [6] Various nfp nfp nfp nfp

Total Other Departmental Budget Adjustments 495.8 395.9 469.9 548.8

Variation to Defence Departmental Funding 553.8 318.7 362.8 527.2

Notes

1. This measure represents the Departmental offset associated w ith an increase in Administered expenditure (and related revenue) pertaining

to the Defence Home Ow nership Assistance Scheme in the Housing Assistance Program 2.16.

2. This measure represents the transfer of $105m to ASD out of the $150m received by Defence at PBS 2019-20 as 'Additional Funding to

Support Defence Capability'.

3. Defence w ill be absorbing the cost of this measure, being $30m over the Forw ard Estimates.

4. The expenditure for this budget measure is not for publication (nfp) due to national security reasons.

5. This budget measure w as reflected through an adjustment to Appropriation Bill 1.

6. The expenditure for this budget adjustment is not for publication (nfp) due to national security reasons.


20

Operations Summary

Table 7: Net Additional Cost of Operations to 2022-23[1][2]

Actual

Result to

2018-19

$m

2019-20

Revised

Estimate

$m

2020-21

Forward

Estimate

$m

2021-22

Forward

Estimate

$m

2022-23

Forward

Estimate

$m

Total

$m

Operation Manitou 222.3 73.6 23.9 25.8 - 345.6

Operation Accordion 861.9 215.8 28.8 21.0 - 1,127.5

Operation Highroad 526.4 86.8 1.1 - - 614.3

Operation Resolute[2] 397.3 59.3 - - - 456.6

Operation Okra 1,319.1 279.2 30.8 19.6 - 1,648.7

Operation Augury - Philippines 20.0 - - - - 20.0

Defence Support to the 2018 Commonw ealth Games 8.2 - - - - 8.2

Operation Bushfire Assist - 87.9 - - - 87.9

Total Net Additional Costs 3,355.2 802.6 84.6 66.4 - 4,308.8

Sources of Funding for Operations

Government Supplementation 3,339.5 802.6 84.6 66.4 - 4,293.1

Department of Defence (absorbed) 15.7 - - - - 15.7

Total Cost 3,355.2 802.6 84.6 66.4 - 4,308.8

Notes

1. This table reflects on-going and new Operations funded under No Win/No Loss arrangements.

2. Includes funding for expanded activities under Operation Sovereign Borders.


21

1.4 CAPITAL INVESTMENT PROGRAM

Table 8: Capital Investment Program[1]

Table 9: Capability Sustainment Program

Seri

al N

o. 2018-19

Actual

Result

$m

2019-20

Budget

Estimate

$m

2019-20

Revised

Estimate

$m

Variation

$m

1 Major Capital Investment Program 8,478.5 8,687.9 8,891.2 203.3

2 Capital Facilities Program 1,974.0 2,093.0 2,099.9 6.9

3 ICT Investment Plan 449.1 864.1 728.2 -135.9

4 Minors Program 42.8 123.4 86.7 -36.7

5 Total Capital Investment Program 10,944.4 11,768.4 11,806.1 37.7

1. Total Capital Investment Program includes unapproved and approved projects.

Note

Seri

al N

o. 2018-19

Actual

Result

$m

2019-20

Budget

Estimate

$m

2019-20

Revised

Estimate

$m

Variation

$m

1 Navy Sustainment 2,580.8 2,413.1 2,419.3 6.2

2 Army Sustainment 1,607.4 1,697.4 1,714.5 17.1

3 Air Force Sustainment 2,717.5 3,078.3 3,007.0 -71.3

4 Chief Information Officer Sustainment[1] 1,335.5 1,308.8 1,322.1 13.3

5 Joint Capabilities Group Sustainment 468.1 496.8 502.0 5.2

6 Strategic Policy & Intelligence Sustainment 165.7 129.0 126.7 -2.3

7 Australian Defence Force Headquarters Sustainment 1.3 2.2 10.8 8.6

8 Estate & Infrastructure Group Sustainment[2] 2,716.7 2,921.8 2,951.1 29.3

9 Other Minor Sustainment -13.8 43.9 33.2 -10.7

10 Total Sustainment[3] 11,579.3 12,091.3 12,086.7 -4.6

1. Chief Information Officer Sustainment includes all ICT sustainment for the Department.

Notes

3. Total sustainment includes both current and future sustainment.

2. Estate & Infrastructure Group Sustainment includes all estate maintenance, garrison support and associated costs for the Department.


22

Table 10: Retained Capital Receipts

Table 11: Variation in Estimates of Net Capital Receipts

Seri

al N

o. 2019-20

Budget

Estimate

$m

2019-20

Revised

Estimate

$m

Variation

$m

2020-21

Forward

Estimate

$m

2021-22

Forward

Estimate

$m

2022-23

Forward

Estimate

$m

Property Sales

Proceeds from the sale of land and buildings 90.5 70.6 -19.9 51.7 49.5 33.9

Proceeds from the sale of housing 14.2 14.2 - 14.7 15.4 15.5

Total proceeds from the sale of property 104.7 84.8 -19.9 66.4 64.9 49.4

Costs from the sale of property [1] -9.9 -23.0 -13.1 -15.5 -9.7 -7.3

1 Net property proceeds retained by Defence 94.8 61.9 -32.9 50.8 55.2 42.0

2 Proceeds from sale of specialist military equipment 7.5 126.1 118.5 17.5 17.0 -

3 Proceeds from sale of infrastructure, plant and equipment 21.0 20.9 -0.1 19.2 20.2 24.9

4 Retained Capital Receipts (1+2+3) 123.3 208.8 85.5 87.6 92.4 66.9

Note

1. Costs from the sale of property include remediation w orks.

2019-20

Revised

Estimate

$m

2020-21

Forward

Estimate

$m

2021-22

Forward

Estimate

$m

2022-23

Forward

Estimate

$m

Portfolio Budget Statements 2019-20 Estimates 123.3 238.7 91.4 107.2

Movement in net proceeds from sales associated w ith the capital disposal program 85.5 -151.1 1.0 -40.3

Variation in Net Capital Receipts 85.5 -151.1 1.0 -40.3

Total Net Capital Receipts 208.8 87.6 92.4 66.9


23

1.5 PEOPLE

Workforce Overview

Defence continues to reshape its workforce to deliver capabilities identified in the Defence White Paper 2016, and to deliver the organisational capability envisaged in the First Principles Review. There has been steady growth in the workforce this financial year, with significant effort into recruitment and retention of the shipbuilding, cyber, Science Technology Engineering and Mathematics, and ICT workforces. The ADF Total Workforce Model continues to be implemented as the employment framework that enables flexible service. While ADF enlistments remain strong, there are some areas that require improvement including critical categories and recruitment of women and Indigenous Australians.

Defence has implemented new programs to improve the support provided to members transitioning from the ADF to civilian life, and continued to work closely with the Department of Veterans’ Affairs through the Transition Transformation Program.

Workforce Summary

The average full-time workforce is forecast to be 76,361 in 2019-20, comprising 60,090 permanent ADF (79 per cent) and 16,271 APS employees (21 per cent). The service breakdown of the ADF Permanent Force is:

14,776 Navy personnel

30,821 Army personnel

14,493 Air Force personnel

The forecast for service categories 3, 4 and 5 in 2019-20 is 1,000,400 days of service performed by an estimated 20,450 members of the Reserve Forces. Information about the ADF Total Workforce Model and structure of service categories is available on the department’s website here: http://www.defence.gov.au/ADF-TotalWorkforceModel/Default.asp.

Over the forward estimates period, the workforce (excluding service categories 3, 4 and 5) will increase by 1,207 from the forecast of 76,361 in 2019-20 to 77,568 in 2022-23.

The planned strength of the Defence workforce is shown in Tables 12 and 13, while a breakdown by Service and rank/level is at Table 14.

Under the 2016 Defence White Paper, the permanent ADF workforce will grow to around 62,400 over the coming decade. Over 2019-20 and the Forward Estimates, the Defence APS workforce is expected to stabilise around 16,200. The majority of growth in the workforce is to meet the priorities outlined in the 2016 Defence White Paper. These include enhancements to intelligence, space and cyber security capabilities and naval shipbuilding.

http://www.defence.gov.au/ADF-TotalWorkforceModel/Default.asp


24

Defence People

Defence People strategies are as reported in the PBS 2019–20 except for the following update:

Defence is progressing amendments to the Australian Defence Force Superannuation Trust Deed 2015 and both the Australian Defence Force Super Act 2015 and the Superannuation Industry (Supervision) Act 1993 which was announced as part of the 2019-20 Budget. These amendments will see membership eligibility be extended to allow ADF Super members to choose to remain contributory members after they discharge from the ADF and will align ADF Super with superannuation arrangements available in broader industry and other public superannuation schemes.

Defence has also progressed the amendment to the Defence Home Ownership Assistance Scheme legislation, which was announced as part of the MYEFO 2019-20, that will see the eligibility timeframe extended for ex-serving ADF members to access the Scheme from two to five years.

Table 12: Planned Workforce Allocation for the 2019–20 Budget and Forward Estimates —Average Fulltime[1]

2019-20

Budget

Estimate [2]

2019-20

Revised

Estimate [2][3]

Variation[3]

2020-21

Forward

Estimate [2][3]

2021-22

Forward

Estimate [2][3]

2022-23

Forward

Estimate [2][3]

ADF Permanent Force [4]

Navy 14,776 14,776 - 14,825 14,946 15,078

Army 30,821 30,821 - 30,997 31,125 31,216

Air Force 14,493 14,493 - 14,763 14,956 15,108

1 Total Permanent Force 60,090 60,090 - 60,585 61,027 61,402

Civilian Employees

APS 16,272 16,271 -1 16,195 16,170 16,166

2 Total Civilian Employees 16,272 16,271 -1 16,195 16,170 16,166

Total Workforce Strength (1 + 2) 76,362 76,361 -1 76,780 77,197 77,568

Notes

1. All numbers for the full-time w orkforce elements represent average full-time equivalents.

2. Budget and Revised Estimates f igures represent forecast 2019-20 achievement for each element of the fulltime w orkforce,

w hile Forw ard Estimates for the full-time w orkforce elements represent the Government approved strength for each year.

3. The decrease in Civilian Employee w orkforce since PBS 2019-20 represents the transfer to another agency to support a

taskforce.

4. ADF Permanent Force includes Service Categories 6 and 7, and Service Options C and G personnel.


25

Table 13: Planned Workforce Allocation for the 2019–20 Budget and Forward Estimates —Reserve (Service Categories 3, 4, and 5)[1][2]

2019-20

Budget

Estimate

2019-20

Revised

Estimate

2020-21

Forward

estimate

2021-22

Forward

estimate

2022-23

Forward

estimate

Service Category 3 and 5

96,000 96,000 98,000 100,000 100,000

(1,750) (1,750) (1,800) (1,900) (2,000)

685,000 685,000 695,000 705,000 715,000

(15,500) (15,500) (15,750) (16,000) (16,250)

218,000 218,000 223,000 228,000 233,000

(3,160) (3,160) (3,160) (3,160) (3,160)

999,000 999,000 1,016,000 1,033,000 1,048,000

(20,410) (20,410) (20,710) (21,060) (21,410)

Service Category 4

1,400 1,400 1,450 1,500 1,550

(40) (40) (40) (40) (40)

1,400 1,400 1,450 1,500 1,550

(40) (40) (40) (40) (40)

1,000,400 1,000,400 1,017,450 1,034,500 1,049,550

(20,450) (20,450) (20,750) (21,100) (21,450)

Notes

1. Reserves include all active members (Service Categories 3, 4 and 5), excluding Reservists undertaking

continuous full-time service (Service Option C), w hich is reported in Table 12.

2. As the number of days or hours w orked by Reserve members can vary greatly, f igures above in Table 13 show

the total number of days’ service rendered, w ith a headcount of members rendering paid service in brackets.

Navy

Army

2 Sub-total Service Category 4

Total Reserves (1 + 2)

Air Force

1 Sub-total Service Category 3 and 5

Air Force


26

Table 14: Breakdown of Average Personnel Numbers by Service and Rank

2019-20

Budget

Estimate

2019-20

Revised

Estimate

Navy[1]

One Star and above 55 55

Senior Officers[2] 675 675

Officers 3,005 3,005

Other Ranks 11,041 11,041

Total Navy 14,776 14,776

Army[1]





Total Army 30,821 30,821

Air Force [1]





Total Air Force 14,493 14,493

APS[1]

Senior Executives[3] 150 150

Senior Officers[2] 5,274 5,273

Other APS Staff 10,848 10,848

Total APS 16,272 16,271

Total Workforce 76,362 76,361

Notes

1. Permanent Forces and APS numbers are forecasts of the average strength for 2019-20.

2. Senior Officers are of Colonel or Lieutenant Colonel rank equivalent and APS Executive Level 1 and 2.

3. The 2019-20 figures for Senior Executive Service include the Secretary of the Department of Defence, 12 Chiefs

of Division and 2 Medical Officers (Grades 5 to 6).


27

Section 2: Defence Revisions to Outcomes and Planned Performance

2.1 CHANGES TO OUTCOME AND PROGRAM STRUCTURES

No significant change from PBS 2019–20.


28

2.2 OUTCOMES AND PERFORMANCE INFORMATION

Outcome 1: Defend Australia and its national interests through the conduct of operations and provision of support for the Australian community and civilian authorities in accordance with Government direction.

Outcome 1 Strategy

No changes have been made to the Defence Strategic Direction Statement since the PBS 2019–20, with the exception of the following inclusion of operations:

BUSHFIRE ASSIST 2019-2020 – ADF Support to national disaster relief efforts.

CIVIL ASSIST 2019 – Validation of planning and preparation for large-scale emergencies of national significance and prolonged periods of civil emergency in support of civilian agencies.

FORTITUDE – ADF Support to United Nations Disengagement Observer Force.

LINESMAN – United Nations Security Council demilitarisation observation and reporting.

RENDER SAFE – ADF led mission to safely dispose of Second World War Explosive Remnants of War from South Pacific island nations.

SOLOMON ISLANDS ELECTION ASSIST – Contribute to whole of Australian Government support to the Solomon Island in the conduct of the Solomon Islands National General Election.

Correction:

ASLAN – Contribute to the United Nations Mission in South Sudan (previously ‘Mission’ was not capitalised).

Linked Programs

No changes have been made to Linked Programs since the PBS 2019–20.


29

Outcome 1 Resources

Table 15: Total Budgeted Resources Available for Outcome 1

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Program 1.1 - Operations Contributing to the Security of the Immediate Neighbourhood

Revenues from other sources - - - - - - -

Departmental outputs 29,890 2,285 5,007 2,722 2,347 2,411 2,479

Program 1.2 - Operations Supporting Wider Interests

Revenues from other sources 26,158 27,537 27,557 20 - - -

Departmental outputs 551,880 644,557 657,080 12,523 83,316 66,670 105

Program 1.3 - Defence Contribution to National Support Tasks in Australia

Revenues from other sources 54 - - - - - -

Departmental outputs 61,721 59,297 137,670 78,373 - - -

Total resourcing

Total Departmental outputs 643,491 706,139 799,758 93,619 85,663 69,081 2,584

Total Departmental revenue from other sources 26,212 27,537 27,557 20 - - -

Total resources for Outcome 1 669,703 733,676 827,315 93,639 85,663 69,081 2,584


30

Contributions to Outcome 1

Program 1.1: Operations Contributing to the Security of the Immediate Neighbourhood

Performance information is as reported in the PBS 2019–20 except for the following revisions.

Program 1.1 inclusion under ‘Delivery’:

Supporting the Whole of Government Step Up in the Pacific.

Table 16: Cost Summary for Program 1.1 Operations Contributing to the Security of the Immediate Neighbourhood

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 522 - - - - - -

Suppliers 29,367 2,285 5,007 2,722 2,347 2,411 2,479

Grants - - - - - - -

Depreciation and amortisation - - - - - - -

Finance cost - - - - - - -

Write-dow n of assets and impairment of assets - - - - - - -

Net losses from sale of assets - - - - - - -

Other expenses - - - - - - -

Total expenses 29,890 2,285 5,007 2,722 2,347 2,411 2,479

Income

Revenues

Goods and services - - - - - - -

Other revenue - - - - - - -

Total revenue - - - - - - -

Gains

Reversal of previous asset w rite-dow ns - - - - - - -

Net gains from sale of assets - - - - - - -

Other gains - - - - - - -

Total gains - - - - - - -

Total income - - - - - - -

Program 1.1 Operations Contributing to the

Security of the Immediate Neighbourhood 29,890 2,285 5,007 2,722 2,347 2,411 2,479


31

Program 1.2: Operations Supporting Wider Interests

Performance information is as reported in the PBS 2019–20.

Table 17: Cost Summary for Program 1.2 Operations Supporting Wider Interests

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 81,036 91,141 91,141 - - - -

Suppliers 496,993 579,622 593,495 13,873 83,316 66,670 105

Grants - - - - - - -



Write-dow n of assets and impairment of assets - 1,331 - -1,331 - - -


Other expenses 9 - - - - - -

Total expenses 578,037 672,094 684,637 12,543 83,316 66,670 105

Income

Revenues

Goods and services 26,158 27,537 27,557 20 - - -


Total revenue 26,158 27,537 27,557 20 - - -

Gains





Total income 26,158 27,537 27,557 20 - - -

Program 1.2 Operations Supporting Wider

Interests 551,880 644,557 657,080 12,523 83,316 66,670 105


32

Program 1.3: Defence Contribution to National Support Tasks in Australia


Table 18: Cost Summary for Program 1.3 Defence Contribution to National Support Tasks in Australia

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 2,955 8,468 83,153 74,685 - - -

Suppliers 58,820 50,829 54,350 3,521 - - -

Grants - - - - - - -


Finance cost - - 167 167 - - -

Write-dow n of assets and impairment of assets - - - - - - -



Total expenses 61,775 59,297 137,670 78,373 - - -

Income

Revenues

Goods and services 54 - - - - - -


Total revenue 54 - - - - - -

Gains





Total income 54 - - - - - -

Program 1.3 Defence Contribution to National

Support Tasks in Australia 61,721 59,297 137,670 78,373 - - -


33

Outcome 2: Protect and advance Australia’s strategic interests through the provision of strategic policy, the development, delivery and sustainment of military, intelligence and enabling capabilities, and the promotion of regional and global security and stability as directed by Government.

Outcome 2 Strategy

No changes have been made to the Defence Strategic Direction Statement since the PBS 2019–20.

Linked Programs

No changes have been made to Linked Programs since the PBS 2019–20.


34

Outcome 2 Resources

Table 19: Total Budgeted Resources Available for Outcome 2

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Program 2.1 Strategic Policy and Intelligence

Revenues from other sources 4,150 5,229 5,225 -4 5,868 6,760 7,992


Program 2.2 Defence Executive Support

Revenues from other sources 30,930 31,845 31,847 2 32,643 33,459 35,339


Program 2.3 Defence Finance


Departmental outputs 42,790 178,108 164,433 -13,675 148,000 150,963 155,231

Program 2.4 Joint Capabilities

Revenues from other sources 269,748 168,929 303,907 134,978 290,589 284,927 281,595

Departmental outputs 1,877,015 1,882,479 1,877,979 -4,500 1,955,856 2,057,659 2,256,960

Program 2.5 Navy Capabilities


Departmental outputs 6,282,467 6,574,517 6,574,886 369 7,431,073 7,778,461 8,158,208

Program 2.6 Army Capabilities


Departmental outputs 7,490,033 7,623,190 7,685,546 62,356 8,394,853 8,548,774 9,340,774

Program 2.7 Air Force Capabilities



Program 2.8 Australian Defence Force Headquarters Command

Revenues from other sources 336 352 722 370 1,149 2,197 3,038


Program 2.9 Capability Acquisition and Sustainment



Program 2.10 Estate and Infrastructure

Revenues from other sources 697,879 371,619 312,844 -58,775 360,170 382,429 393,754


Program 2.11 Chief Information Officer



Program 2.12 Defence People

Revenues from other sources 2,171 4 6 2 6 6 6


Program 2.13 Defence Science and Technology




35

Table 19: Total Budgeted Resources Available for Outcome 2 (Continued)

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Program 2.14 Defence Force Superannuation Benefits

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) 114,000 64,448 121,000 56,552 54,829 46,172 38,476

Military Superannuation and Benefits Act, 1991 Part

V, s.17 3,972,702 2,040,818 5,485,476 3,444,658 1,883,261 1,774,565 1,680,298

Australian Defence Force Cover Act 2015 304,300 274,144 688,900 414,756 376,106 481,916 586,764

Total Administered expenses 4,391,002 2,379,410 6,295,376 3,915,966 2,314,195 2,302,653 2,305,538

Administered revenues from other sources 1,388,079 1,244,386 1,244,386 - 1,148,469 1,063,384 985,434

Total Program 2.14 3,002,923 1,135,024 5,050,990 3,915,966 1,165,726 1,239,269 1,320,104

Program 2.15 Defence Force Superannuation Nominal Interest

Defence Force Retirement Benefits Act, 1948 Part 1,

s.15D and VIC, s.82ZJ (1) 12,600 17,646 6,937 -10,709 16,704 15,765 14,852

Defence Force Retirements and Death Benefits Act,

1973 Part XII, s.125 (3) 1,364,000 1,641,468 1,031,122 -610,346 1,643,341 1,641,257 1,636,745

Military Superannuation and Benefits Act, 1991 Part

V, s.17 2,629,000 2,760,180 2,432,016 -328,164 2,944,619 3,125,854 3,304,868

Australian Defence Force Cover Act 2015 12,000 22,901 20,390 -2,511 39,393 61,293 88,773

Total Administered expenses 4,017,600 4,442,195 3,490,465 -951,730 4,644,058 4,844,169 5,045,238

Administered revenues from other sources - - - - - - -

Total Program 2.15 4,017,600 4,442,195 3,490,465 -951,730 4,644,058 4,844,169 5,045,238

Program 2.16 Housing Assistance

Defence Force (Home Loan Assistance) Act , 1990

Part IV, s.38 5 312 312 - 252 203 163

Defence Home Ownership Assistance Scheme Act

2008 Part VI, s.84 120,320 121,944 121,944 - 130,794 139,974 144,012

Total Administered expenses 120,325 122,256 122,256 - 131,046 140,177 144,175

Administered revenues from other sources 16,968 16,852 16,852 - 17,444 18,015 18,465

Total Program 2.16 103,357 105,404 105,404 - 113,602 122,162 125,710

Program 2.17 Other Administered

Expenses 2 - - - - - -

Total Administered expenses 2 - - - - - -

Administered revenues from other sources 106,248 98,303 98,303 - 98,375 91,266 94,860

Total Program 2.17 -106,246 -98,303 -98,303 - -98,375 -91,266 -94,860

Total resourcing

Total Departmental outputs 31,524,284 33,172,171 33,548,438 376,267 35,323,035 36,644,718 39,548,684

Total Administered 7,017,634 5,584,319 8,548,556 2,964,237 5,825,011 6,114,334 6,396,193

Total Departmental revenue from other sources 1,268,488 788,912 1,277,162 488,250 1,246,246 1,334,246 1,402,751

Total Administered revenue from other sources 1,511,295 1,359,541 1,359,541 - 1,264,288 1,172,665 1,098,759

Prior Year Appropriation 620,000 - - - - - -

Equity injection 3,343,482 3,946,645 4,040,467 93,822 5,749,426 8,368,235 9,747,336

Total resources for Outcome 2 45,285,183 44,851,589 48,774,164 3,922,575 49,408,006 53,634,198 58,193,723


36


Program 2.1: Strategic Policy and Intelligence


Table 20: Cost Summary for Program 2.1 Strategic Policy and Intelligence

Table 21: Strategic Policy and Intelligence Deliverables (Hydrographic Products and Services)

Deliverables

2019-20 Budget

Estimate

2019-20 Revised

Estimate Variation

2020-21 Forward Estimate



Charting Projects 15 12[1] -3 15 15 15

Nautical Publications 29 30[2] 1 29 30 29

Australian Hydrographic Office (AHO) Availability

250 249[3] -1 249 248 248

Notes

1. Charting projects have been reduced to 12 projects due to a temporary shortfall in availability of hydrographic surveyors for incoming survey data assessment.

2. Nautical Publications has been increased by one publication to reflect the achievement of AHP 24 Chart Correction handbook, deferred from 2018-19.

3. The Australian Hydrographic Office will be unavailable for one day due to essential maintenance of core ICT capability, the Hydrographic METOC Information Environment.

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 152,955 161,174 173,767 12,593 166,348 185,592 190,159

Suppliers 398,317 458,676 541,842 83,166 537,633 623,883 562,051

Grants 130,374 137,427 142,422 4,995 26,628 26,994 22,277

Depreciation and amortisation[1] -22,503 4,730 10,037 5,307 24,564 43,791 68,343

Finance cost - - 18 18 18 18 19

Write-dow n of assets and impairment of assets [1] -1,756 760 1,716 956 2,456 3,468 4,879

Net losses from sale of assets [2] -623 - - - -5 -9 -13


Total expenses 656,817 762,767 869,802 107,035 757,641 883,738 847,714

Income

Revenues

Goods and services 4,060 4,392 4,392 - 4,517 4,641 4,769

Other revenue -26 2 4 2 4 6 10

Total revenue 4,034 4,394 4,396 2 4,521 4,647 4,779

Gains

Reversal of previous asset w rite-dow ns 116 833 823 -10 1,347 2,113 3,213

Net gains from sale of assets - 2 7 5 - - -


Total gains 116 835 830 -5 1,347 2,113 3,213

Total income 4,150 5,229 5,225 -4 5,868 6,760 7,992

Program 2.1 Strategic Policy and Intelligence 652,667 757,540 864,577 107,037 751,774 876,978 839,722

Notes

1. The depreciation and amortisation in 2018-19 is impacted by adjustments made for assets transferred to ASD based on a review of Depreciation

balances as part of the establishment of ASD as a separate agency.

2. Whilst the amounts show n in 2018-19, 2020-21, 2021-22 and 2022-23 represent a gain for this program, at the Portfolio level, Defence has budgeted for

a net loss from sale of assets in these years.


37

Program 2.2: Defence Executive Support


Table 22: Cost Summary for Program 2.2 Defence Executive Support

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 103,431 105,086 117,493 12,407 113,015 114,729 117,361

Suppliers 229,970 188,244 192,104 3,860 190,933 196,273 149,345

Grants 156 - - - - - -

Depreciation and amortisation 531 480 430 -50 308 287 261


Write-dow n of assets and impairment of assets 1,652 11 40 29 39 38 38



Total expenses 335,739 293,821 310,067 16,246 304,295 311,327 267,004

Income

Revenues


Other revenue 206 127 127 - 130 133 137

Total revenue 29,113 31,832 31,832 - 32,628 33,445 35,325

Gains

Reversal of previous asset w rite-dow ns 1,817 13 15 2 15 14 14



Total gains 1,817 13 15 2 15 14 14

Total income 30,930 31,845 31,847 2 32,643 33,459 35,339

Program 2.2 Defence Executive Support 304,809 261,976 278,220 16,244 271,652 277,868 231,665


38

Program 2.3: Defence Finance


Table 23: Cost Summary for Program 2.3 Defence Finance[1]

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees[2] 69,007 113,313 104,922 -8,391 108,228 110,338 112,485

Suppliers 24,147 68,423 63,837 -4,586 44,072 45,089 47,279

Grants 2,938 - - - - - -

Depreciation and amortisation 972 307 60 -247 129 196 256

Finance cost 5 - - - - - -

Write-dow n of assets and impairment of assets 63,687 3,796 2,929 -867 3,037 2,928 2,925


Other expenses 10,951 - - - - - -

Total expenses 171,707 185,839 171,748 -14,091 155,466 158,551 162,946

Income

Revenues


Other revenue 16,744 - - - - - -

Total revenue 21,153 1,301 1,301 - 1,381 1,426 1,469

Gains

Reversal of previous asset w rite-dow ns 107,764 1,242 826 -416 767 711 659


Other gains - 5,188 5,188 - 5,318 5,451 5,587

Total gains 107,764 6,430 6,014 -416 6,085 6,162 6,246

Total income 128,917 7,731 7,315 -416 7,466 7,588 7,715

Program 2.3 Defence Finance 42,790 178,108 164,433 -13,675 148,000 150,963 155,231

Notes

1. The Defence Finance Program includes adjustments applied at the w hole of Defence level, and not otherw ise applied to other programs.

2. Full-time equivalent headcount is held in this Program from time to time for future prioritisation.


39

Program 2.4: Joint Capabilities


Table 24: Cost Summary for Program 2.4 Joint Capabilities

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 622,554 654,380 647,792 -6,588 648,999 676,083 686,311

Suppliers 896,202 786,803 802,490 15,687 871,673 945,440 1,111,605

Grants 4,121 2,118 - -2,118 - - -

Depreciation and amortisation 34,549 32,536 33,034 498 54,353 74,012 114,133

Finance cost - - 18 18 18 18 19

Write-dow n of assets and impairment of assets 587,952 575,572 698,552 122,980 671,402 647,032 626,487

Net losses from sale of assets 10 - - - - - -

Other expenses 1,376 - - - - - -

Total expenses 2,146,763 2,051,408 2,181,886 130,478 2,246,445 2,342,586 2,538,555

Income

Revenues

Goods and services 9,790 4,730 10,350 5,620 4,862 4,981 5,095

Other revenue 3,616 166 766 600 170 174 178

Total revenue 13,406 4,896 11,116 6,220 5,032 5,155 5,273

Gains

Reversal of previous asset w rite-dow ns 256,342 164,033 292,792 128,759 285,557 279,772 276,322



Total gains 256,342 164,033 292,792 128,759 285,557 279,772 276,322

Total income 269,748 168,929 303,907 134,978 290,589 284,927 281,595

Program 2.4 Joint Capabilities 1,877,015 1,882,479 1,877,979 -4,500 1,955,856 2,057,659 2,256,960


40

Program 2.5: Navy Capabilities


Table 25: Cost Summary for Program 2.5 Navy Capabilities

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 2,241,745 2,264,144 2,285,959 21,815 2,433,586 2,508,425 2,475,556

Suppliers 2,659,674 2,811,711 2,780,489 -31,222 3,311,745 3,478,821 3,821,893

Grants 150 - - - - - -

Depreciation and amortisation 1,358,549 1,409,304 1,578,909 169,605 1,652,769 1,739,363 1,796,938

Finance cost 10,426 36,551 13,529 -23,022 13,249 12,871 12,548


Net losses from sale of assets [1] -12,198 - - - -9,168 -4,685 3,698

Other expenses 7,173 - 34,859 34,859 45,781 57,243 57,359

Total expenses 6,293,402 6,637,743 6,842,529 204,786 7,618,280 7,987,039 8,389,313

Income

Revenues

Goods and services 17,357 21,872 18,483 -3,389 18,932 19,488 19,963

Other revenue 93 34,541 34,541 - 35,404 36,289 37,218

Total revenue 17,450 56,413 53,024 -3,389 54,336 55,777 57,181

Gains

Reversal of previous asset w rite-dow ns -16,511 7,148 115,449 108,301 132,871 152,800 173,924

Net gains from sale of assets - -336 99,170 99,506 - - -

Other gains 9,996 - - - - - -

Total gains -6,515 6,812 214,618 207,806 132,871 152,800 173,924

Total income 10,935 63,225 267,642 204,417 187,207 208,577 231,105

Program 2.5 Navy Capabilities 6,282,467 6,574,517 6,574,886 369 7,431,073 7,778,461 8,158,208

Note

1. Whilst the amounts show n in 2018-19, 2020-21 and 2021-22 represent a gain for this program, at the Portfolio level, Defence has budgeted for a net loss

from sale of assets in these years.


41

Table 26: Navy Deliverables (Unit Availability Days)[1]

Deliverables 2019-20 Budget

Estimate 2019-20 Revised

Estimate

18 Major Combatants[2] 3,078 2,833

21 Minor Combatants[3] 4,382 3,897

4 Amphibious and Afloat Support[4] 952 919

10 Maritime Teams[5] 2,376 3,637

7 Hydrographic Force[6] 1,763 1,670

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 unit’s normal operating environment, immediately.

2. Major Combatants comprises one Adelaide Class Frigate (FFG), eight Anzac Class Frigates (FFH), three Hobart Class Destroyers (DDG) and six Collins Class Submarines (CCSM). UAD decrease due to amendments to maintenance periods for the Anzac Class Frigates and Hobart Class Destroyers. HMAS Melbourne was decommissioned on 26 October 2019.

3. Minor Combatants comprises thirteen Armidale Class Patrol Boats (ACPB), two Cape Class Patrol Boats (CCPB) and six Huon Class Coastal Minehunters (MHC). UAD decrease due to defects across platforms and extensions to planned maintenance periods.

4. Amphibious and Afloat Support comprises one Oil Tanker (AO), one Landing Ship Dock (LSD) and two Canberra Class Landing Helicopter Dock (LHD). UAD decrease due to rescheduling of planned maintenance periods.

5. Maritime Teams comprises two Clearance Diving teams, four Deployable Geospatial Support (DGST) and four Mobile Meteorological and Oceanographic (METOC) teams. Significant UAD increase due to DGST now comprising four teams (previously one), and the four METOC teams available for the entire 12 month period.

6. Hydrographic Force comprises two Hydrographic Ships (HS), four Survey Motor Launches (SML), and the Naval Air Station Weather and Oceanographic Centre. Minor decrease in UAD due to changes to the operating and maintenance profiles of the HS and SML.

Table 27: Navy Deliverables (Flying Hours)

Deliverables 2019-20 Budget

Estimate 2019-20 Revised

Estimate

24 MH-60R[1] 7,200 4,900

- MRH-90[2] - -

1 Laser airborne depth sounder aircraft (LADS)[3] 1,260 390

Notes

1. Significant decrease in flying hours due to reduced rates of effort following safety intervention activities, reduced tasking requirements, and workforce shortfalls.

2. Navy is operating MRH-90s; however their flying hours are included under Army Aviation as Army is joint capability manager of the aircraft.

3. LADS flying hours amended to 390 hours to account for the aircraft’s decommission on 6 November 2019.


42

Program 2.6: Army Capabilities


Table 28: Cost Summary for Program 2.6 Army Capabilities

Table 29: Army Deliverables (Rate of Effort – Flying Hours)

Deliverables

2019-20 Budget

Estimate

2019-20 Revised

Estimate Variation

2020-21 Forward

Year 1

2021-22 Forward

Year 2

2022-23 Forward

Year 3

10 CH-47F Chinook 2400 2400 - 2600 2600 2600

34 S-70A-9 Black Hawk[1] 2500 2500 - 1500 600 0

22 ARH Tiger 5300 4542 -758 4500 4500 4500

47 MRH90 Taipan 9670 9270 -400 10300 10300 10300

Note

1. Aircraft planned withdrawal date is 2021-22. S-70A is being replaced by MRH90.

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 4,244,572 4,380,217 4,254,263 -125,954 4,370,811 4,450,151 4,614,604

Suppliers 1,604,888 2,163,054 2,222,218 59,164 2,751,068 2,814,022 3,313,276

Grants 404 497 97 -400 100 102 105


Finance cost 248 4,898 670 -4,228 689 709 728


Net losses from sale of assets [1] 15,104 - - - -7,440 -7,437 116

Other expenses 10,073 - 3,475 3,475 4,564 5,706 5,717

Total expenses 7,514,516 7,657,565 7,783,330 125,765 8,495,994 8,668,940 9,471,453

Income

Revenues


Other revenue 856 665 665 - 682 699 716

Total revenue 26,401 22,650 22,650 - 18,093 24,080 17,888

Gains

Reversal of previous asset w rite-dow ns -5,170 4,233 68,734 64,501 83,048 96,087 112,791

Net gains from sale of assets - 7,492 6,400 -1,092 - - -

Other gains 3,252 - - - - - -

Total gains -1,918 11,725 75,134 63,409 83,048 96,087 112,791

Total income 24,483 34,375 97,784 63,409 101,141 120,167 130,679

Program 2.6 Army Capabilities 7,490,033 7,623,190 7,685,546 62,356 8,394,853 8,548,774 9,340,774

Note

1. Whilst the amounts show n in 2020-21 and 2021-22 represent a gain for this program, at the Portfolio level, Defence has budgeted for a net loss from sale

of assets in these years.


43

Program 2.7: Air Force Capabilities


Table 30: Cost Summary for Program 2.7 Air Force Capabilities

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 2,261,977 2,327,752 2,304,677 -23,075 2,373,104 2,401,164 2,520,821

Suppliers 2,769,702 3,316,072 3,272,969 -43,103 3,741,140 3,963,784 4,330,860

Grants 148 1,881 681 -1,200 - - -


Finance cost 1,050 23,515 5,993 -17,522 6,145 6,303 6,465


Net losses from sale of assets 38,832 - - - 1,556 786 1,447

Other expenses 22,829 - 20,298 20,298 26,657 33,332 33,400

Total expenses 6,864,433 7,551,302 7,748,085 196,783 8,326,363 8,456,089 9,206,475

Income

Revenues


Other revenue 563 5,743 5,743 - 5,886 6,033 6,184

Total revenue 18,973 44,863 44,863 - 45,983 47,237 48,541

Gains


Net gains from sale of assets [1] - -1,115 -387 729 - - -

Other gains 21,717 - - - - - -

Total gains 23,752 7,867 126,047 118,180 146,636 170,776 189,259

Total income 42,725 52,730 170,910 118,180 192,619 218,013 237,800

Program 2.7 Air Force Capabilities 6,821,708 7,498,572 7,577,175 78,603 8,133,745 8,238,076 8,968,675

Note

1. Whilst the amounts show n in 2019-20 represent a loss for this program, at the Portfolio level, Defence has budgeted for a net gain from sale of assets

in this year.


44

Table 31: Air Force Deliverables (Flying Hours)

Deliverables

2019-20 Budget

Estimate

2019-20 Revised

Estimate Variation

2020-21 Forward

Year 1

2021-22 Forward

Year 2

2022-23 Forward

Year 3

62 PC-9/A[1] 3,826 3,700 -126 - - -

49 PC-21[2] 19,626 19,626 - 23,652 23,652 23,652

12 KA350 King Air[3] 8,300 8,300 - 8,300 8,300 8,300

12 C-130J Hercules[4] 7,350 7,800 450 7,350 7,350 7,350

8 C-17A Globemaster III[5] 6,200 7,000 800 6,200 6,200 6,200

10 C-27J Spartan[6] 7,500 4,000 -3,500 7,500 7,500 7,500

7 KC-30A MRTT[7] 4,700 5,780 880 4,700 4,700 4,700

2 737 BBJ[8] 1,600 1,400 -200 1,600 1,600 1,600

3 Falcon-7X[9] 2,403 2,000 -403 2,403 2,403 2,403

2 AP-3C Orion[10] 600 700 100 700 700 350

11 P-8A Poseidon[11] 5,400 5,400 - 6,600 6,600 6,600

6 E-7A Wedgetail 3,600 3,600 - 3,600 3,600 3,600

67 F/A-18A/B Hornet[12] 8,100 8,100 - 4,750 1,500 -

24 F/A-18F Super Hornet 4,050 4,050 - 4,050 4,050 4,050

33 Hawk 127 6,500 6,500 - 6,500 6,500 6,500

11 E/A-18G Growler 2,400 2,400 - 2,800 2,800 2,800

18 F-35A Lightning II[13] 4,564 4,564 - 8,204 11,831 14,519

1 MC-55A Peregrine[14] - - - - - 300

Notes

1. PC-9/A hours reflect the complete withdrawal of the aircraft by 31 December 2019.

2. All PC-21 aircraft have now been delivered.

3. KA350 King Air estimates for 2019-20 to 2020-21 under review due to delayed delivery of cabin modification and reduced number of ISTAREW modified aircraft.

4. C130J anticipate 450 flying hours overfly due to increased tasking and improved aircraft availability.

5. C-17A Globemaster III hours for 2019-20 include operational assignments.

6. C-27J will fly 4,000 flying hours due to lower than originally estimated availability owing to a maturing sustainment system (maintenance, engineering and supply chain). This is subject to remediation and will lead to increases in rate of effort.

7. KC-30A MRTT hours for 2019-20 include an additional 1,800 flying hours due to operational assignments, including an extra 200 flying hours above previous estimates due to increased effort on operations.

8. 737 BBJ will under fly 200 flying hours due to low VIP rates since the federal election, additionally approximately 60 VIP flying hours have been transferred to GTC (KC-30A). HUD and FMC upgrade reduced availability to one aircraft for 21 weeks in 2019-20.

9. Falcon 7X will under fly 403 flying hours due to low VIP flying rate since the federal election. The Challenger aircraft were returned to the leasing company in September 2019. Three Falcon 7X special purpose aircraft have replaced the three CL 604 Challenger aircraft.

10. Increase in AP-3C Orion flying hours for 2019-20 to ensure appropriate flying hours for FORGEN EW crews and ensure positive aircrew production of new capabilities coming online from 2023 onwards. CAF approved PWD extension to December 2022.

11. Increase in P-8A Poseidon flying hours is an acceleration of flying hours allocation from 2022-23 to increase FORGEN and operational MISRR.

12. F/A-18A/B hours reflect the phased withdrawal of the aircraft. As at December 2019, four (of 71) aircraft have been removed from the Defence Register as part of the planned withdrawal.

13. 18 F-35A aircraft have been delivered to date, with 13 in Australia and five in the USA.

14. MC-55A hours reflect the aircraft’s introduction into service.


45

Program 2.8: Australian Defence Force Headquarters Command


Table 32: Cost Summary for Program 2.8 Australian Defence Force Headquarters Command

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 29,250 33,183 26,145 -7,038 27,686 26,605 27,527

Suppliers 88,788 117,635 115,453 -2,182 147,809 166,170 156,316

Grants - - - - - - -

Depreciation and amortisation 1,430 6,595 4,046 -2,549 8,945 17,714 28,423


Write-dow n of assets and impairment of assets 1,334 335 662 327 1,194 2,435 3,417



Total expenses 121,587 157,748 146,306 -11,442 185,633 212,924 215,683

Income

Revenues

Goods and services 191 263 310 47 308 355 405

Other revenue -1 - - - - - -

Total revenue 191 263 310 47 308 355 405

Gains

Reversal of previous asset w rite-dow ns 145 89 412 323 841 1,842 2,634



Total gains 145 89 412 323 841 1,842 2,634

Total income 336 352 722 370 1,149 2,197 3,038

Program 2.8 Australian Defence Force

Headquarters Command 121,251 157,396 145,584 -11,812 184,484 210,727 212,645


46

Program 2.9: Capability Acquisition and Sustainment


Table 33: Cost Summary for Program 2.9 Capability Acquisition and Sustainment

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 449,469 448,981 443,271 -5,710 473,273 480,632 490,049

Suppliers 193,109 212,498 237,660 25,162 243,461 268,540 300,288

Grants - - - - - - -

Depreciation and amortisation 727 - 527 527 328 223 166

Finance cost - - 1 1 1 1 1

Write-dow n of assets and impairment of assets 38 12,932 1,933 -10,999 1,925 1,921 1,918

Net losses from sale of assets -3,712 - - - - - -


Total expenses 639,681 674,411 683,392 8,981 718,988 751,317 792,422

Income

Revenues

Goods and services 15,624 1,011 5,681 4,670 2,864 1,063 1,079


Total revenue 15,624 1,011 5,681 4,670 2,864 1,063 1,079

Gains

Reversal of previous asset w rite-dow ns 483 397 1,531 1,134 1,525 1,522 1,520

Net gains from sale of assets - - 15,789 15,789 - - -


Total gains 483 397 17,320 16,923 1,525 1,522 1,520

Total income 16,107 1,408 23,001 21,593 4,389 2,585 2,599

Program 2.9 Capability Acquisiton and

Sustainment 623,574 673,003 660,392 -12,611 714,599 748,731 789,823


47

Program 2.10: Estate and Infrastructure


Table 34: Cost Summary for Program 2.10 Estate and Infrastructure

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 1,084,413 1,146,179 1,129,156 -17,023 1,101,575 1,145,041 1,186,017

Suppliers 2,753,937 2,989,144 2,666,279 -322,865 2,448,321 2,615,099 2,922,754

Grants 360 - - - - - -


Finance cost 94,517 93,487 105,379 11,892 102,717 100,351 97,896


Net losses from sale of assets 572 - - - 37,125 11,516 43,973

Other expenses 224,158 15,158 21,195 6,037 9,636 6,700 9,261

Total expenses 5,248,336 5,265,847 5,262,323 -3,524 5,117,705 5,393,048 5,872,923

Income

Revenues

Goods and services 350,134 364,044 334,654 -29,390 347,843 363,981 370,382

Other revenue 6,918 4,688 4,604 -84 4,641 4,755 4,682

Total revenue 357,051 368,732 339,258 -29,474 352,484 368,736 375,064

Gains


Net gains from sale of assets [1] - -1,439 -32,332 -30,893 - - -

Other gains 320,311 - - - - - -

Total gains 340,828 2,887 -26,414 -29,301 7,686 13,693 18,690

Total income 697,879 371,619 312,844 -58,775 360,170 382,429 393,754

Program 2.10 Estate and Infrastructure 4,550,457 4,894,228 4,949,479 55,251 4,757,535 5,010,619 5,479,168

Note

1. Whilst the amounts show n in 2019-20 represent a loss for this program, at the Portfolio level, Defence has budgeted for a net gain from sale of assets

in this year.


48

Program 2.11: Chief Information Officer


Table 35: Cost Summary for Program 2.11 Chief Information Officer

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 112,637 115,481 111,831 -3,650 114,526 115,511 118,136

Suppliers 1,341,185 1,392,082 1,391,290 -792 1,154,343 1,297,313 1,550,240

Grants - - - - - - -

Depreciation and amortisation 324,783 196,952 269,977 73,025 282,994 291,420 334,872

Finance cost 5,024 - - - - - -


Net losses from sale of assets 1,722 - - - - - -


Total expenses 1,802,841 1,717,645 1,803,647 86,002 1,588,053 1,744,293 2,046,413

Income

Revenues



Total revenue 35,300 37,054 37,054 - 38,797 39,710 40,645

Gains

Reversal of previous asset w rite-dow ns 785 9,584 14,624 5,040 18,521 21,438 23,735



Total gains 785 9,584 14,624 5,040 18,521 21,438 23,735

Total income 36,086 46,638 51,678 5,040 57,318 61,148 64,380

Program 2.11 Chief Information Officer 1,766,755 1,671,007 1,751,969 80,962 1,530,735 1,683,145 1,982,033


49

Program 2.12: Defence People


Table 36: Cost Summary for Program 2.12 Defence People

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 164,989 190,891 160,809 -30,082 160,059 162,379 166,190

Suppliers 336,091 334,188 327,623 -6,565 368,692 379,979 395,388

Grants 1,421 1,700 3,400 1,700 3,588 3,607 3,627

Depreciation and amortisation 5,172 5,094 16,439 11,345 16,031 16,248 16,459

Finance cost - - 512 512 523 534 546

Write-dow n of assets and impairment of assets 19 4 17 13 17 16 16



Total expenses 507,696 531,877 508,800 -23,077 548,910 562,764 582,225

Income

Revenues

Goods and services 26 - - - - - -

Other revenue 2,116 - - - - - -

Total revenue 2,142 - - - - - -

Gains

Reversal of previous asset w rite-dow ns 29 4 6 2 6 6 6



Total gains 29 4 6 2 6 6 6

Total income 2,171 4 6 2 6 6 6

Program 2.12 Defence People 505,525 531,873 508,794 -23,079 548,904 562,758 582,219


50

Program 2.13: Defence Science and Technology


Table 37: Cost Summary for Program 2.13 Defence Science and Technology

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Employees 300,482 301,512 299,312 -2,200 304,849 311,338 317,584

Suppliers 152,138 145,586 190,945 45,359 174,290 167,151 211,655

Grants 9,304 - - - - - -

Depreciation and amortisation 26,792 24,172 17,224 -6,948 18,479 19,206 19,640


Write-dow n of assets and impairment of assets 407 1,838 6,203 4,365 7,889 8,655 9,431

Net losses from sale of assets 48 - - - - - -


Total expenses 489,254 473,109 513,684 40,575 505,507 506,350 558,310

Income

Revenues

Goods and services 3,691 2,598 1,953 -645 2,595 3,010 3,074

Other revenue 19 123 - -123 128 134 139

Total revenue 3,710 2,721 1,953 -768 2,723 3,144 3,213

Gains

Reversal of previous asset w rite-dow ns 312 2,106 2,326 220 2,958 3,245 3,536



Total gains 312 2,106 2,326 220 2,958 3,245 3,536

Total income 4,021 4,827 4,279 -548 5,682 6,389 6,749

Program 2.13 Defence Science and Technology 485,233 468,282 509,405 41,123 499,825 499,961 551,561


51

Administered Program 2.14: Defence Force Superannuation Benefits


Table 38: Cost Summary for Program 2.14 Defence Force Superannuation Benefits

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Net foreign exchange losses - - - - - - -

Retention benefits 91,702 121,811 77,476 -44,335 86,416 86,416 86,416

Military superannuation benefits 4,299,300 2,257,599 6,217,900 3,960,301 2,227,780 2,216,237 2,219,122

Total expenses 4,391,002 2,379,410 6,295,376 3,915,966 2,314,196 2,302,653 2,305,538

Income

Revenues

Interest - - - - - - -

Net foreign exchange gains - - - - - - -

Military superannuation contributions 1,388,079 1,244,386 1,244,386 - 1,148,470 1,063,383 985,433

Total income 1,388,079 1,244,386 1,244,386 - 1,148,470 1,063,383 985,433

Program 2.14 Defence Force Superannuation

Benefits 3,002,923 1,135,024 5,050,990 3,915,966 1,165,726 1,239,270 1,320,105


52

Administered Program 2.15: Defence Force Superannuation Nominal Interest


Table 39: Cost Summary for Administered Program 2.15 Defence Force Superannuation Nominal Interest

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses


Retention benefits - - - - - - -

Military superannuation benefits 4,017,600 4,442,195 3,490,464 -951,731 4,644,058 4,844,169 5,045,238

Total expenses 4,017,600 4,442,195 3,490,464 -951,731 4,644,058 4,844,169 5,045,238

Income

Revenues

Interest - - - - - - -


Military superannuation contributions - - - - - - -

Total income - - - - - - -

Program 2.15 Defence Force Superannuation

Nominal Interest 4,017,600 4,442,195 3,490,464 -951,731 4,644,058 4,844,169 5,045,238


53

Administered Program 2.16: Housing Assistance


Table 40: Cost Summary for Administered Program 2.16 Housing Assistance

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses


Housing subsidies 120,325 122,256 122,256 - 131,046 140,177 144,175

Total expenses 120,325 122,256 122,256 - 131,046 140,177 144,175

Income

Revenues

Interest - - - - - - -


Dividends - - - - - - -

License fees 16,968 16,852 16,852 - 17,444 18,015 18,465

Other - - - - - - -

Total income 16,968 16,852 16,852 - 17,444 18,015 18,465

Program 2.16 Housing Assistance 103,357 105,404 105,404 - 113,602 122,162 125,710


54

Administered Program 2.17: Other Administered


Table 41: Cost Summary for Administered Program 2.17 Other Administered

2018-19

Actual

Result

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Expenses

Write-dow n of assets and impairment of assets 2 - - - - - -

Total expenses 2 - - - - - -

Income

Revenues

Interest 24,506 23,335 23,335 - 22,919 22,730 22,072

Dividends 24,545 41,705 41,705 - 41,826 34,711 38,428

Other 56,897 33,263 33,263 - 33,630 33,825 34,360

Net foreign exchange gains 300 - - - - - -

Total income 106,248 98,303 98,303 - 98,375 91,266 94,860

Program 2.17 Other Administered -106,246 -98,303 -98,303 - -98,375 -91,266 -94,860


55

Section 3: Defence Explanatory Tables and Budgeted Financial Statements

3.1 EXPLANATORY TABLES

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2019–20 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government indigenous expenditure.

Table 42: Summary of Estimated Special Account Balances[1][2][3][4][5]

Outcome

Opening

2019-20

2018-19

$'000

Receipts

2019-20

2018-19

$'000

Payments

2019-20

2018-19

$'000

Adjustments

2019-20

2018-19

$'000

Closing

Balance

2019-20

2018-19

$'000

2 115,240 377,137 -333,247 1,866 160,996

111,519 267,964 -264,243 - 115,240

2 51 - - -51 -

50 1 - - 51

2 167 - - -167 -

164 3 - - 167

2 - - - - -

1,578 52 -1,630 - -

Total Special Accounts 2019-20 115,458 377,137 -333,247 1,648 160,996

2018-19 actual 113,311 268,020 -265,873 - 115,458

Notes

1. 2019-20 estimates in bold.

2. 2018-19 actuals in italics.

3. These are all Special Public Monies.

4. The table reports all amounts on a GST exclusive basis.

5. On 15 July 2019, a PGPA Act determination w as made by the Minister for Finance, w hich repealed the existing Defence Special Accounts

and replaced them w ith the Defence Endow ments, Bequest and Other Trust Special Moneys Special Account.

Defence Endow ments Special Account – Public

Governance, Performance and Accountability Act 2013

Fedorczenko Legacy Special Account – Public

Governance, Performance and Accountability Act 2013

Young Endeavour Youth Program Special Account –

Public Governance, Performance and Accountability Act

2013

Services for Other Entities and Trust Moneys - Defence

Special Account– Public Governance, Performance and

Accountability Act 2013


56

3.1.1 Australian Government Indigenous Expenditure

Australian Government Indigenous Expenditure

No changes have been made to the Australian Government Indigenous Expenditure since the PBS 2019–20.

Defence Indigenous Employment Strategy

No changes have been made to the Defence Indigenous Employment Strategy since the PBS 2019–20.

Defence Indigenous Programs

No changes have been made to the Defence Indigenous Programs since the PBS 2019–20.

Army Aboriginal Community Assistance Program

The Army Aboriginal Community Assistance Program (AACAP) is a joint initiative between Army and the National Indigenous Australians Agency (NIAA). The aim of AACAP is to improve the infrastructure, health and living conditions within remote aboriginal communities. This aim supports the federal government’s commitment to ‘closing the gap’ between indigenous and non-indigenous Australians. One project is undertaken each calendar year. These AACAP projects leverage the ability of Army to deliver a range of services in remote areas, providing infrastructure works, employability skills training, health promotion and community support in a holistic and effective manner. Army also benefits from the opportunities afforded by the conduct of AACAP Projects to exercise and test various operational capabilities. The 2019 Project is to be delivered in Jigalong in the Pilbara region of Western Australia. Development for the 2020 Project in Pormpuraaw in Far North Queensland is underway.


57

3.1.2 Grants

The following are total approved grants (GST exclusive) for 2019-20 with the following update to the PBS 2019-20.

Table 43: Approved Grants[1]

Total

Approved

2019-20

Budget

Estimate

$’000

Total

Approved

2019-20

Revised

Estimate

$’000

Grant Sub-Programs:

ADF Long Tan Aw ards [2] - 1,503

Army History Research 49 82

Australia-US Multidisciplinary University Research Initiative (AUSMURI) [2] - 2,000

Centre for Defence Industry Capability (CDIC) 1,383 28,224

Defence Cooperative Research Centre (DCRC) [2] - 8,000

Family Support Funding Program (FSFP) [2] - 1,377

Industry Skilling Program Enhancement (ISPE) through School Pathw ays Programs (SPP) 1,400 1,400

New Air Combat Capability (NACC) 2,250 2,227

Strategic Policy Grants Program 5,828 1,956

Individual Grants:

City of Parramatta RSL 9 9

Stand Tall for PTSD 350 350

Australian Strategic Policy Institute (ASPI) 20,000 20,000

War Widow s' Guild of Australia NSW Limited 10 10

Williamstow n Pre-School Inc. 73 73

Kapani Warrior (new ) - 20

Total Approved 31,352 67,231

Notes

1. Excludes grant applications not yet approved under the Commonwealth Grants Rules and Guidelines 2017.

2. Adding an on-going sub-program incorrectly omitted from the 2019-20 Budget estimate.


58

Explanation of Grants

Information is as reported in the PBS 2019-20, with the following updates:

ADF Long Tan Awards

The ADF Long Tan Youth Leadership and Teamwork Awards is an on-going grants sub-program that recognises students who demonstrate leadership and teamwork within both the school and the broader local community. At the same time, they recognise those who display strong values, such as doing one’s best, respect for others and “mateship”, characteristics that are integral to Australian society. The awards are an important initiative by the Australian Government in conjunction with the Australian Defence Force designed to encourage senior students–tomorrow’s leaders–to actively participate in the life of their schools and local communities.

Australia-US Multidisciplinary University Research Initiative (AUSMURI)

AUSMURI is an on-going grants sub-program that encourages Australian universities to collaborate with universities in the United States and explore opportunities in designated topics. It complements the Multidisciplinary University Research Initiative (MURI) grant program administered by the US Department of Defense. AUSMURI supports Australian universities which are part of successful bids in the US MURI process.

Defence Cooperative Research Centre (DCRC)

The Defence Cooperative Research Centre (DCRC) for Trusted Autonomous Systems, established under the Next Generation Technologies Fund, was formally launched by the then Minister for Defence Industry, the Hon Christopher Pyne MP at the International Conference on Robotics and Automation (ICRA) 2018 in Brisbane. This is an on-going grants sub-program that brings together a world-class team from across Australian academia, publicly funded research agencies and industry to engage in multi-disciplinary research and innovation.

Family Support Funding

Community organisations can apply for a grant to deliver support and services of value to Defence families and their communities through the Family Support Funding Program (FSFP), an on-going grants sub-program. The FSFP provides funding to not-for-profit organisations to facilitate the coming together of Defence families to support their overall wellbeing and engagement within their local communities and to empower them to thrive and contribute to community capacity building.

Kapani Warrior

Kapani Warrior enhances the Australian Army’s ability to recruit Indigenous personnel from remote and disadvantaged communities and has an emphasis on bush-based activities which aims to grow a new generation of male leaders in Indigenous communities. The Kapani Cup celebrates the strong relationships between defence veterans and young Aboriginal men and provides participants with a safe competitive opportunity to display their skills and confidence developed from their participation in Kapani Warrior.


59

3.2 RESOURCE SUMMARY

Table 44: Budgeted Departmental Net Cost of Service (Cash) (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

NET COST OF SERVICE (CASH)

Cost of Service

Employee payments 11,687,174 12,173,962 12,309,527 12,618,896 12,960,174

Supplier payments 12,281,051 14,244,753 13,862,578 14,605,389 16,416,240

Purchase of specialist military equipment 8,999,149 8,305,404 10,669,472 13,736,436 15,142,048

Purchase of inventory 1,693,173 1,650,321 1,850,438 1,942,311 2,048,331

Purchase of other property, plant and equipment 2,014,731 2,162,509 2,666,202 2,401,963 2,942,375

Other cash used 2,326,064 2,664,287 2,716,350 3,048,175 3,307,068

Total cash used 39,001,342 41,201,236 44,074,567 48,353,170 52,816,236

Ow n source receipts 2,646,806 2,812,572 2,916,442 3,271,135 3,517,631

Total cash received 2,646,806 2,812,572 2,916,442 3,271,135 3,517,631

Net cost of service (cash) 36,354,536 38,388,664 41,158,125 45,082,035 49,298,605

FUNDED BY

Appropriation Bill 1/3/5 (price of outcomes) 32,407,283 34,348,197 35,408,700 36,713,799 39,551,268

Appropriation carried forw ard from previous year - - - - -

Appropriation Bill 2/4/6 (equity injection) 3,343,482 4,040,467 5,749,426 8,368,235 9,747,336

Net cash to the Official Public Account -14,914 - - - -

Total funding source 35,735,851 38,388,664 41,158,125 45,082,035 49,298,605

Change in cash -618,685 - - - -


60

Table 45: Defence Resource Statement – Additional Estimates for 2019-20 as at February 2020

Actual

available

appropriation

2018-19

$'000

Estimate

as at

Budget

2019-20

$'000

Proposed

Additional

Estimates

2019-20

$'000

Total

estimate at

Additional

Estimates

2019-20

$'000

Departmental

Annual appropriations - ordinary annual

services 32,637,748 33,878,310 469,887 34,348,197

Prior year appropriations available 25,320 - - -

Equity injection 3,343,482 3,946,645 93,822 4,040,467

Prior year equity injection available 620,000

Total departmental annual 36,626,550 37,824,955 563,709 38,388,664

Total departmental resourcing 36,626,550 37,824,955 563,709 38,388,664

Administered

Annual appropriations - ordinary annual

services 8,528,929 6,943,861 2,964,237 9,908,098

Prior year appropriations available - - - -

Equity injection - - - -

Total administered annual 8,528,929 6,943,861 2,964,237 9,908,098

Total administered special appropriations

Special accounts -

Opening balance 113,311 101,284 14,174 115,458

Non-appropriation receipts 268,020 377,137 - 377,137

Payments made -265,873 -333,247 - -333,247

Total special accounts 115,458 145,174 14,174 159,348

Total administered resourcing 8,644,387 7,089,035 2,978,411 10,067,446


61

Table 46: Third Party Payments to and from other Agencies[1]

Budget

Estimate

2019-20

$'000

Revised

Estimate

2019-20

$'000

Variation

$'000

Receipts from Defence Housing Australia for interest on loans, dividends and competitive neutrality

payments (Administered) 92,717 93,614 897

Payments made to Defence Housing Australia for the provision of services (Departmental) 544,923 616,670 71,747

Receipts from Australian Signals Directorate for provision of services (Departmental) 89,276 89,276 -

Payments made to Australian Signals Directorate for the provision of services (Departmental) 2,647 2,647 -

Payments made to Department of Foreign Affairs and Trade for the provision of services

(Departmental) 24,723 24,723 -

Payments made to the Commonw ealth Superannuation Corporation (CSC) for the provision of

services (Departmental) 35,346 35,346 -

Payments made to the Department of Finance for the provision of services (Departmental) 70,102 70,061 -41

Payments made to Comcare for w orkers compensation premiums (Departmental) 22,522 24,545 2,023

Payments made to the Australian Federal Police for the provision of services (Departmental) 48,913 48,913 -

Note

- Inter-agency transactions relating to Budget Measures as disclosed in the PBS 2019-20 .

1. Third party payments to and from other Agencies include:

- Inter-agency transactions in excess of $20m per annum; and

- Inter-agency transactions that w ere in excess of $20m in the previous year's annual statements.


62

3.3 BUDGETED FINANCIAL STATEMENTS

3.3.1 Departmental and Administered Budgeted Financial Statements

Table 47: Variation in Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%

EXPENSES

Employee benefits 12,341,903 12,233,693 -108,210 -0.9

Supplier expenses 15,616,851 15,458,052 -158,799 -1.0

Grants 143,623 146,600 2,977 2.1

Depreciation and amortisation 5,474,719 6,433,356 958,637 17.5

Finance costs 158,451 126,288 -32,163 -20.3

Write-dow n of assets and impairment of assets 944,053 1,175,100 231,047 24.5

Losses from sale of assets - - - -

Other 15,158 79,826 64,668 426.6

Total expenses 34,694,759 35,652,916 958,157 2.8

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sales of goods and rendering of services 557,611 534,544 -23,067 -4.1

Other revenue 46,055 46,450 395 0.9

Total own-source revenue 603,667 580,993 -22,674 -3.8

Gains

Reversals of previous asset w rite-dow ns 202,990 629,890 426,900 210.3

Sale of assets 4,604 88,647 84,043 1,825.4

Other gains 5,188 5,188 - -

Total gains 212,782 723,725 510,943 240.1

Total own-source income 816,449 1,304,719 488,270 59.8

Net cost of (contribution by) services 33,878,310 34,348,197 469,887 1.4

Revenue from Government 33,878,310 34,348,197 469,887 1.4

Surplus (Deficit) attributable to the Australian Government - - - -

Total comprehensive income attributable to the Australian Government - - - -


63

Table 48: Variation in Budgeted Departmental Balance Sheet (as at 30 June)

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%

ASSETS

Financial assets

Cash and cash equivalents 72,241 76,179 3,938 5.5

Trade and other receivables 85,279 53,647 -31,632 -37.1

Tax assets 70,318 104,908 34,590 49.2

Appropriation receivable 48,558 255,893 207,335 427.0

Other receivables 180,855 284,241 103,386 57.2

Total financial assets 457,251 774,868 317,617 69.5

Non-financial assets

Land and buildings 20,003,073 21,053,659 1,050,586 5.3

Infrastructure, plant and equipment 8,422,130 8,248,280 -173,850 -2.1

Specialist military equipment 69,492,116 69,968,475 476,359 0.7

Intangibles 702,787 766,377 63,590 9.0

Heritage and cultural 440,444 449,769 9,325 2.1

Inventories 6,256,396 6,789,997 533,601 8.5

Prepayments 1,541,124 2,499,635 958,511 62.2

Total non-financial assets 106,858,069 109,776,191 2,918,122 2.7

Assets held for sale 47,432 151,376 103,944 219.1

Total assets 107,362,752 110,702,435 3,339,683 3.1

LIABILITIES

Payables

Suppliers 2,221,784 1,951,985 -269,799 -12.1

Other 171,156 199,875 28,719 16.8

Total payables 2,392,939 2,151,860 -241,079 -10.1

Interest bearing liabilities

Leases 1,443,160 2,889,974 1,446,814 100.3

Total interest bearing liabilities 1,443,160 2,889,974 1,446,814 100.3

Provisions

Employee provisions 3,045,842 3,163,056 117,214 3.8

Restoration, decontamination and decommissioning 1,319,253 1,378,240 58,987 4.5

Other 312,565 432,341 119,776 38.3

Total provisions 4,677,660 4,973,636 295,976 6.3

Total liabilities 8,513,760 10,015,471 1,501,711 17.6

NET ASSETS 98,848,992 100,686,965 1,837,973 1.9

EQUITY

Contributed equity 35,575,342 35,821,590 246,248 0.7

Reserves 26,727,755 27,877,969 1,150,214 4.3

Retained surplus (accumulated deficit) 36,545,895 36,987,405 441,510 1.2

Total equity 98,848,992 100,686,965 1,837,973 1.9


64

Table 49: Variation in Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%

OPERATING ACTIVITIES

Cash received

Appropriations 33,878,310 34,348,197 469,887 1.4

Goods and services 557,504 445,269 -112,235 -20.1

Net GST received 2,106,010 2,089,056 -16,954 -0.8

Other cash received 46,055 46,450 395 0.9

Total cash received 36,587,880 36,928,971 341,091 0.9

Cash used

Employees 12,285,376 12,173,962 -111,414 -0.9

Suppliers 13,501,224 14,244,753 743,529 5.5

Net GST paid 2,106,010 2,068,340 -37,670 -1.8

Grants 143,623 146,600 2,977 2.1

Other cash used 15,158 15,158 - -

Cash transfer to the Official Public Account (receivables) - - - -

Total cash used 28,051,392 28,648,813 597,421 2.1

Net cash from (used by) operating activities 8,536,488 8,280,159 -256,329 -3.0

INVESTING ACTIVITIES

Cash received

Proceeds from sales of land and buildings 104,729 84,849 -19,880 -19.0

Proceeds from sales of infrastructure, plant and equipment 20,987 20,883 -104 -0.5

Proceeds from sales of specialist military equipment 7,549 126,065 118,516 1,570.0

Other cash received - - - -

Total cash received 133,265 231,797 98,532 73.9

Cash used

Purchase of land and buildings 1,139,083 1,196,748 57,665 5.1

Purchase of infrastructure, plant and equipment 1,059,633 924,447 -135,186 -12.8

Purchase of specialist military equipment 8,421,945 8,305,404 -116,541 -1.4

Purchase of intangibles 130,197 41,314 -88,883 -68.3

Purchase of inventory 1,715,279 1,650,321 -64,958 -3.8

Selling costs on sale of assets 13,324 27,922 14,598 109.6

Finance costs 95,125 116,288 21,163 22.2

Total cash used 12,574,586 12,262,444 -312,142 -2.5

Net cash from (used by) investing activities -12,441,321 -12,030,647 410,674 -3.3

FINANCING ACTIVITIES

Cash received

Appropriations - contributed equity 3,946,645 4,040,467 93,822 2.4

Total cash received 3,946,645 4,040,467 93,822 2.4

Cash used

Repayment of debt 41,812 289,979 248,167 593.5

Total cash used 41,812 289,979 248,167 593.5

Net cash from (used by) financing activities 3,904,833 3,750,489 -154,344 -4.0

Net increase (decrease) in cash and cash equivalents held - - - -

Cash and cash equivalents at the beginning of the reporting period 72,241 76,179 3,938 5.5

Effect of exchange rate movements on cash and cash equivalents

at the beginning of the reporting period - - - -

Cash and cash equivalents at the end of the reporting period 72,241 76,179 3,938 5.5


65

Table 50: Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

EXPENSES

Employee benefits 11,921,994 12,233,693 12,396,058 12,687,986 13,022,798

Supplier expenses 14,033,327 15,458,052 16,070,843 17,030,642 18,875,529

Grants 149,376 146,600 30,316 30,703 26,009

Depreciation and amortisation 6,063,549 6,433,356 6,702,498 6,791,188 7,411,443

Finance costs 111,272 126,288 123,361 120,804 118,222

Write-dow n of assets and impairment of assets 865,338 1,175,100 1,223,162 1,283,567 1,345,057

Foreign exchange losses 36,665 - - - -

Losses from sale of assets 39,754 - 22,068 171 49,221

Other 241,200 79,826 86,637 102,981 105,737

Total expenses 33,462,475 35,652,916 36,654,944 38,048,042 40,954,015

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sales of goods and rendering of services 539,654 534,544 512,106 536,552 541,598

Other revenue 31,105 46,450 47,043 48,220 49,260

Total own-source revenue 570,759 580,993 559,149 584,772 590,858

Gains

Foreign exchange - - - - -

Reversals of previous asset w rite-dow ns 368,665 629,890 681,777 744,020 806,302

Sale of assets - 88,647 - - -

Other gains 355,276 5,188 5,318 5,451 5,587

Total gains 723,941 723,725 687,095 749,471 811,889

Total own-source income 1,294,700 1,304,719 1,246,244 1,334,243 1,402,747

Net cost of (contribution by) services 32,167,775 34,348,197 35,408,700 36,713,799 39,551,268

Revenue from Government 32,525,834 34,348,197 35,408,700 36,713,799 39,551,268

Surplus (Deficit) attributable to the Australian Government 358,059 - - - -

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net

cost of services

Changes in asset revaluation reserves 1,150,214 - - - -

Total other comprehensive income/(loss) 1,150,214 - - - -

Total comprehensive income attributable to the Australian

Government 1,508,273 - - - -


66

Table 51: Budgeted Departmental Balance Sheet (as at 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

ASSETS

Financial assets

Cash and cash equivalents 76,179 76,179 76,179 76,179 76,179

Trade and other receivables 53,648 53,647 53,647 53,647 53,647

Tax assets 250,481 104,908 98,023 93,366 88,829

Appropriation receivable 255,893 255,893 255,893 255,893 255,893

Other receivables 289,613 284,241 284,239 284,237 284,235

Total financial assets 925,814 774,868 767,981 763,322 758,783


Land and buildings 19,454,331 21,053,659 21,723,285 22,062,941 23,059,467

Infrastructure, plant and equipment 7,735,749 8,248,280 8,724,730 9,039,387 9,014,287

Specialist military equipment 66,559,643 69,968,475 75,490,341 84,004,250 93,364,070

Intangibles 890,442 766,377 635,219 688,574 886,243

Heritage and cultural 473,307 449,769 426,231 402,694 379,268

Inventories 7,178,986 6,789,997 6,422,137 6,074,268 5,745,307

Prepayments 2,497,354 2,499,635 2,505,509 2,509,577 2,509,628

Total non-financial assets 104,789,812 109,776,191 115,927,452 124,781,691 134,958,270

Assets held for sale 151,376 151,376 151,376 151,376 151,376

Total assets 105,867,002 110,702,435 116,846,809 125,696,389 135,868,429

LIABILITIES

Payables

Suppliers 2,511,261 1,951,985 2,175,543 2,485,086 2,735,018

Other 446,749 199,875 199,876 199,876 199,875

Total payables 2,958,010 2,151,860 2,375,419 2,684,962 2,934,894


Leases 1,485,329 2,889,974 2,862,515 2,833,812 2,809,914

Total interest bearing liabilities 1,485,329 2,889,974 2,862,515 2,833,812 2,809,914

Provisions

Employee provisions 3,041,254 3,163,056 3,264,970 3,351,889 3,433,900

Restoration, decontamination and decommissioning 1,303,571 1,378,240 1,475,175 1,588,761 1,705,419

Other 432,341 432,341 432,341 432,341 432,341

Total provisions 4,777,166 4,973,636 5,172,485 5,372,990 5,571,659

Total liabilities 9,220,505 10,015,471 10,410,419 10,891,764 11,316,467

NET ASSETS 96,646,497 100,686,965 106,436,389 114,804,625 124,551,962

EQUITY

Contributed equity 31,781,123 35,821,590 41,571,015 49,939,250 59,686,588

Reserves 27,877,969 27,877,969 27,877,969 27,877,969 27,877,969

Retained surplus (accumulated deficit) 36,987,405 36,987,405 36,987,405 36,987,405 36,987,405

Total equity 96,646,497 100,686,965 106,436,389 114,804,625 124,551,962


67

Table 52: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000


Cash received

Appropriations 32,407,283 34,348,197 35,408,700 36,713,799 39,551,268

Goods and services 642,419 445,269 512,108 536,554 541,600

Net GST received 1,855,282 2,089,056 2,254,192 2,584,280 2,852,528

Interest 11,856 - - - -

Other cash received 66,418 46,450 47,043 48,220 49,260

Cash transfer from the Official Public Account (receivables) 935,219 - - - -


Cash used

Employees 11,687,174 12,173,962 12,309,527 12,618,896 12,960,174

Suppliers 12,281,051 14,244,753 13,862,578 14,605,389 16,416,240

Net GST paid 1,897,105 2,068,340 2,254,192 2,584,280 2,852,528

Grants 147,888 146,600 30,316 30,703 26,009

Other cash used 71,554 15,158 - - -

Cash transfer to the Official Public Account (receivables) 950,133 - - - -

Total cash used 27,034,905 28,648,813 28,456,613 29,839,268 32,254,951

Net cash from (used by) operating activities 8,883,572 8,280,159 9,765,429 10,043,586 10,739,705


Cash received

Proceeds from sales of land and buildings 16,965 84,849 66,381 64,865 49,372

Proceeds from sales of infrastructure, plant and equipment 22,849 20,883 19,169 20,213 24,871

Proceeds from sales of specialist military equipment 28,269 126,065 17,549 17,004 -

Other cash received 2,748 - - - -

Total cash received 70,831 231,797 103,099 102,081 74,243

Cash used

Purchase of land and buildings 1,001,210 1,196,748 1,466,214 1,148,644 1,856,498

Purchase of infrastructure, plant and equipment 929,091 924,447 1,179,295 1,063,917 730,011

Purchase of specialist military equipment 8,999,149 8,305,404 10,669,472 13,736,436 15,142,048

Purchase of heritage and cultural assets 200 - - - -

Purchase of intangibles 84,230 41,314 20,694 189,402 355,866

Purchase of inventory 1,693,173 1,650,321 1,850,438 1,942,311 2,048,331

Selling costs on sale of assets 16,139 27,922 17,806 15,063 12,269

Finance costs 100,045 116,288 113,063 110,200 107,301

Total cash used 12,823,237 12,262,444 15,316,982 18,205,973 20,252,324

Net cash from (used by) investing activities -12,752,406 -12,030,647 -15,213,883 -18,103,892 -20,178,081


Cash received

Appropriations - contributed equity (current year) 3,343,482 4,040,467 5,749,426 8,368,235 9,747,336

Appropriations - contributed equity (prior year) 620,000 - - - -


Cash used

Repayment of debt 93,333 289,979 300,972 307,929 308,961

Cash to the Official Public Account - - - - -

Total cash used 93,333 289,979 300,972 307,929 308,961

Net cash from (used by) financing activities 3,870,149 3,750,489 5,448,454 8,060,307 9,438,375

Net increase (decrease) in cash and cash equivalents held 1,315 - - - -

Cash and cash equivalents at the beginning of the reporting

period 72,241 76,179 76,179 76,179 76,179

Effect of exchange rate movements on cash and cash

equivalents at beginning of the reporting period 2,623 - - - -

Cash and cash equivalents at the end of the reporting

period 76,179 76,179 76,179 76,179 76,179


68

Table 53: Departmental Statement of Changes in Equity — Summary of Movement (Budget year 2019–20)

Retained

Earnings

$'000

Asset

Revaluation

Reserve

$'000

Contributed

Equity/

Capital

$'000

Total

Equity

$'000

Opening balance as at 1 July 2019

Balance carried forw ard from previous period 36,987,405 27,877,969 31,781,123 96,646,497

Adjustment for changes in accounting policies - - - -

Adjusted opening balance 36,987,405 27,877,969 31,781,123 96,646,497

Comprehensive 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 owners

Returns on capital:

Restructuring - - - -

Other - - - -

Contributions by owners

Appropriation (equity injection) - - 4,040,467 4,040,467

Other - - - -

Sub-total transaction with owners - - 4,040,467 4,040,467

Transfers betw een equity components - - - -

Estimated closing balance as at 30 June 2020 36,987,405 27,877,969 35,821,590 100,686,964


69

Table 54: Departmental Capital Budget Statement (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

CAPITAL APPROPRIATIONS

Equity injection 3,343,482 4,040,467 5,749,426 8,368,235 9,747,336

Total capital appropriations 3,343,482 4,040,467 5,749,426 8,368,235 9,747,336

Represented by:

Purchase of non-financial assets 3,250,149 3,750,489 5,448,454 8,060,307 9,438,375

Annual f inance lease costs 93,333 289,979 300,972 307,929 308,961

Other items - - - - -

Total Items 3,343,482 4,040,467 5,749,426 8,368,235 9,747,336

PURCHASE OF NON-FINANCIAL ASSETS

Funded by capital appropriations 3,343,482 4,040,467 5,749,426 8,368,235 9,747,336

Funded by f inance lease costs 3,040 - - - -

Funded internally from departmental resources [1] 7,667,358 6,427,445 7,586,248 7,770,164 8,337,087

Total 11,013,880 10,467,913 13,335,674 16,138,399 18,084,423

Reconciliation of cash used to acquire assets

to asset movement table

Total purchases 11,013,880 10,467,913 13,335,674 16,138,399 18,084,423

less additions by f inance lease 3,040 - - - -

less additions by creditors/borrow ings - - - - -

plus borrow ing/finance costs 100,045 116,288 113,063 110,200 107,301

plus annual f inance lease costs 93,333 289,979 300,972 307,929 308,961

less gifted assets - - - - -

less s75/restructuring - - - - -

Total cash used to acquire assets 11,204,218 10,874,180 13,749,709 16,556,528 18,500,685

Note

1. Includes the follow ing sources of funding:

- annual and prior year appropriations;

- donations and contributions;

- gifts;

- internally developed assets;

- s74 relevant agency receipts; and

- proceeds from the sale of assets.

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70 Table 55: Statement of Departmental Asset Movements (2019-20)

Land

$'000

Buildings

$'000

Specialist

Military

Equipment

$'000

Infrastructure,

Plant and

Equipment

$'000

Intangibles

$'000

Heritage and

Cultural

Assets

$'000

Assets Held

for Sale

$'000

Total

$'000

As at 1 July 2019

Gross book value 5,847,507 13,156,781 69,230,267 8,066,779 2,290,267 501,206 151,376 99,244,183

Gross book value - ROU 62,662 994,839 - 290,452 - - - 1,347,953

Accumulated depreciation/amortisation and impairment - 579,702 2,670,624 607,488 1,399,825 27,899 - 5,285,538

Accumulated depreciation/amorisation and impairement - ROU - 27,756 - 13,994 - - - 41,750

Opening net book balance 5,910,169 13,544,162 66,559,643 7,735,749 890,442 473,307 151,376 95,264,848

CAPITAL ASSET ADDITIONS

Estimated expenditure on new or replacement assets

By purchase - appropriation equity 5,043 1,191,705 8,305,404 924,447 41,314 - - 10,467,913

By purchase - appropriation equity - ROU - 1,387,589 - 305,969 - - - 1,693,558

By finance lease - - - - - - - -

By finance lease - ROU - - - - - - - -

Total additions 5,043 1,191,705 8,305,404 924,447 41,314 - - 10,467,913

Total additions - ROU - 1,387,589 - 305,969 - - - 1,693,558

Other movements

Reclassif ications [1]- - 428,494 24,440 - - - 452,934

Reclassif ications - ROU - - - - - - - -

Depreciation and amortisation - 625,620 4,755,368 560,835 165,379 23,537 - 6,130,739

Depreciation and amortisation - ROU - 252,126 - 50,491 - - - 302,617

Other disposals[2]78,883 28,379 569,698 130,999 - 1 - 807,960

Other disposals - ROU - - - - - - - -

Total other movements -78,883 -653,999 -4,896,572 -667,394 -165,379 -23,538 - -6,485,765

Total other movements - ROU - -252,126 - -50,491 - - - -302,617

As at 30 June 2019

Gross book value 5,773,667 14,320,106 77,394,467 8,884,667 2,331,581 501,205 151,376 109,357,069

Gross book value - ROU 62,662 2,382,428 - 596,421 - - - 3,041,511

Accumulated depreciation/amortisation and impairment - 1,205,322 7,425,992 1,168,323 1,565,204 51,436 - 11,416,277

Accumulated depreciation/amortisation and impairment - ROU - 279,882 - 64,485 - - - 344,367

Closing net book value 5,836,329 15,217,330 69,968,475 8,248,280 766,377 449,769 151,376 100,637,936

Notes

1. Reclassif ication include assets f irst found.

2. Other disposals includes w rite-offs.


71

Table 56: Variation in Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%

INCOME ADMINISTERED ON BEHALF OF GOVERNMENT

Revenue

Non-taxation

Interest 23,335 23,335 - -

Dividends 41,705 41,705 - -

Military superannuation contributions 1,244,386 1,244,386 - -

License fees 16,852 16,852 - -

Other 33,263 33,263 - -

Total non-taxation 1,359,541 1,359,541 - -

Total revenues administered on behalf of Government 1,359,541 1,359,541 - -

EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Subsidies 122,256 122,256 - -

Military retention benefits 121,811 77,476 -44,335 -36.4

Military superannuation benefits 6,699,794 9,708,366 3,008,572 44.9

Total expenses administered on behalf of Government 6,943,861 9,908,098 2,964,237 42.7


72

Table 57: Variation in Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assets

Cash and cash equivalents 145,174 158,466 13,292 9.2

Trade and other receivables 82,498 39,166 -43,332 -52.5

Investments accounted for using the equity method 2,776,987 2,956,511 179,524 6.5

Loans 509,580 509,580 - -

Total financial assets 3,514,239 3,663,723 149,484 4.3


Prepayments 278,335 306,079 27,744 10.0

Total non-financial assets 278,335 306,079 27,744 10.0

Total assets administered on behalf of Government 3,792,574 3,969,802 177,228 4.7

LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

Payables

Other 154,143 165,518 11,375 7.4

Total payables 154,143 165,518 11,375 7.4

Provisions

Superannuation - DFRB[1] 351,602 351,602 - -

Superannuation - DFRDB[2] 33,671,551 33,671,551 - -

Superannuation - MSBS[3] 58,492,389 58,492,389 - -

Superannuation - ADF Super[4] 613,221 613,221 - -

Total provisions 93,128,763 93,128,763 - -

Total liabilities administered on behalf of Government 93,282,905 93,294,281 11,376 ..

Notes

1. Defence Force Retirement Benefits.

2. Defence Force Retirement and Death Benefits.

3. Military Superannuation and Benefits Scheme.

4. Australian Defence Force Super.


73

Table 58: Variation in Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Variation

$'000

Variation

%


Cash received

Interest 23,335 23,335 - -

Military superannuation contributions 1,244,386 1,244,386 - -

Fees 16,852 16,852 - -

Other 51,588 51,588 - -

Total cash received 1,336,160 1,336,160 - -

Cash used

Subsidies paid 122,256 122,256 - -

Military benefits 2,702,351 2,736,791 34,440 1.3

Total cash used 2,824,607 2,859,047 34,440 1.2

Net cash from or (used by) operating activities -1,488,447 -1,522,887 -34,440 2.3


Cash received

Dividends 22,546 22,546 - -

Total cash received 22,546 22,546 - -

Cash used

Loans - - - -

Total cash used - - - -

Net cash from or (used by) investing activities 22,546 22,546 - -

Net increase (decrease) in cash held -1,465,901 -1,500,341 -34,440 2.3

Cash at the beginning of the reporting period 101,284 114,576 13,292 13

Cash from the Official Public Account for appropriations 2,824,607 2,859,047 34,440 1.2

Cash to the Official Public Account -1,358,706 -1,358,707 -1 0.0

Net increase (decrease) in Special Account 43,890 - -43,890 -100.0

Effect of exchange rate movements on cash and cash equivalents - - - -

Cash and cash equivalents at the end of the reporting period 145,174 114,575 -30,599 -21


74

Table 59: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

INCOME ADMINISTERED ON BEHALF OF GOVERNMENT

Revenue

Non-taxation

Interest 24,506 23,335 22,919 22,730 22,072

Dividends 24,545 41,705 41,826 34,711 38,428

Military superannuation contributions 1,388,079 1,244,386 1,148,470 1,063,383 985,433

Fees 16,968 16,852 17,444 18,015 18,465

Foreign exchange 300 - - - -

Other 56,897 33,263 33,630 33,825 34,360

Total non-taxation 1,511,295 1,359,541 1,264,289 1,172,664 1,098,758

Total revenues administered on behalf of Government 1,511,295 1,359,541 1,264,289 1,172,664 1,098,758

EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT

Write-dow n and impairment of assets 2 - - - -


Subsidies 120,325 122,256 131,046 140,177 144,175

Military retention benefits 91,702 77,476 86,416 86,416 86,416

Military superannuation benefits 8,316,900 9,708,366 6,871,836 7,060,406 7,264,360

Other - - - - -

Total expenses administered on behalf of Government 8,528,929 9,908,098 7,089,298 7,286,999 7,494,951


75

Table 60: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT

Financial assets



Investments accounted for using the equity method 2,889,025 2,956,511 3,021,869 3,083,942 3,142,998

Loans 509,580 509,580 509,580 509,580 509,580

Total financial assets 3,551,513 3,663,723 3,729,397 3,784,555 3,847,532


Prepayments 249,655 306,079 308,698 293,900 285,332

Total non-financial assets 249,655 306,079 308,698 293,900 285,332

Total assets administered on behalf of Government 3,801,168 3,969,802 4,038,095 4,078,455 4,132,864

LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT

Payables

Other 121,628 165,518 165,518 165,518 165,518

Total payables 121,628 165,518 165,518 165,518 165,518

Provisions

Superannuation - DFRB[1] 513,900 351,602 332,825 313,109 295,438

Superannuation - DFRDB[2] 55,023,000 33,671,551 33,685,578 33,584,705 33,500,841

Superannuation - MSBS[3] 125,745,000 58,492,389 62,246,876 65,919,800 69,584,189

Superannuation - ADF Super[4] 736,300 613,221 1,006,215 1,512,240 2,133,959

Total provisions 182,018,200 93,128,763 97,271,494 101,329,855 105,514,427

Total liabilities administered on behalf of Government 182,139,828 93,294,281 97,437,012 101,495,373 105,679,945

Notes

1. Defence Force Retirement Benefits.

2. Defence Force Retirement and Death Benefits.

3. Military Superannuation and Benefits Scheme.

4. Australian Defence Force Super.


76

Table 61: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000


Cash received

Interest 24,506 23,335 22,919 22,730 22,072

Military superannuation contributions 1,530,626 1,244,386 1,148,470 1,063,384 985,433

Fees 18,867 16,852 17,444 18,015 18,465

Other 59,643 51,588 33,435 33,624 33,944


Cash used

Subsidies paid 122,236 122,256 131,046 140,177 144,175

Military benefits 2,662,350 2,736,791 2,818,142 3,073,664 3,157,636

Other 55 - - - -

Total cash used 2,784,641 2,859,047 2,949,188 3,213,841 3,301,811

Net cash from or (used by) operating activities -1,150,999 -1,522,886 -1,726,920 -2,076,088 -2,241,897


Cash received

Dividends 26,555 22,546 41,705 41,826 34,711


Cash used

Loans - - - - -

Total cash used - - - - -

Net cash from (used by) investing activities 26,555 22,546 41,705 41,826 34,711

Net increase (decrease) in cash held -1,124,444 -1,500,340 -1,685,215 -2,034,262 -2,207,186

Cash at the beginning of reporting period 109,972 114,576 158,466 158,466 158,466

Cash from the Official Public Account for appropriations 2,784,641 2,859,047 2,949,188 3,213,841 3,301,811

Cash to the Official Public Account -1,660,197 -1,358,707 -1,263,973 -1,179,579 -1,094,625

Net increase (decrease) in Special Account 4,604 43,890 - - -

Effect of exchange rate movements on cash and cash

equivalents - - - - -

Cash and cash equivalents at the end of the reporting

period 114,576 158,466 158,466 158,466 158,466


77

3.3.2 Notes to the Financial Statements

The financial statements have been prepared in accordance with the Australian Accounting Standards and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR).


78



79

APPENDICES

Appendix A: Defence Cooperation Program ................................................................................. 80

Appendix B: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure ............................... 82

Appendix C: Top 30 Sustainment Products by 2019–20 Forecast Expenditure ........................... 87

Appendix D: Facilities and Infrastructure Program ....................................................................... 91

Appendix E: Status of Major Projects Foreshadowed for Government and Parliamentary Standing Committee on Public Works Consideration (PWC) in 2019–20 .................................................. 107


80

APPENDIX A: DEFENCE COOPERATION PROGRAM

No changes have been made to the Defence Cooperation Program since the PBS 2019–20, except for the following revisions.

Table 62: Defence Cooperation Program Budget 2019-20

Table 63: South Pacific Region Budget 2019-20

2018-19

Actual

$’000

2019-20

Budget

Estimate

$’000

2019-20

Revised

Estimate

$’000

Papua New Guinea 31,977 40,898 42,000

South Pacif ic Region 57,017 82,432 73,890

South-East Asia 19,205 21,779 28,048

Other regional activities [1] 7,180 9,379 10,901

Defence International Training Centre[2]4,677 4,677 4,677

Total 120,056 159,165 159,516

Notes

1. Sri Lanka has been included as a Defence Cooperation Country from 2019-20.

2. The Defence International Training Centre (DITC) provides training in Australia to

the defence forces of South-East Asia and South Pacif ic nations and to other

selected overseas personnel. The DITC is managed by JCG Group.

2018-19

Actual

$’000

2019-20

Budget

Estimate

$’000

2019-20

Revised

Estimate

$’000

Timor Leste 6,333 6,740 7,320

Vanuatu 1,270 842 1,358

Solomon Islands 1,057 855 1,067

Tonga 3,018 2,969 3,511

Samoa 600 252 609

Cook Islands 111 198 200

Republic of the Marshall Islands 183 476 481

Federated States of Micronesia 261 239 242

Fiji 3,313 3,634 3,678

Tuvalu 277 346 350

Kiribati 278 470 475

Palau 313 432 437

DCP Scheduled Support 5,880 7,979 7,800

Pacif ic Patrol Boat Program 34,123 57,000 46,362

Total 57,017 82,432 73,890


81

Table 64: South-East Asia Region Budget 2019-20

2018-19

Actual

$’000

2019-20

Budget

Estimate

$’000

2019-20

Revised

Estimate

$’000

Philippines 3,357 3,300 9,312

Thailand 2,966 3,113 3,151

Malaysia 4,551 4,320 4,620

Indonesia 3,838 5,900 5,700

Vietnam 2,808 3,000 3,245

Cambodia and Laos 1,192 1,580 1,426

Brunei 203 300 304

Myanmar 291 266 290

Total 19,205 21,779 28,048

82

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APPENDIX B: TOP 30 ACQUISITION PROJECTS BY 2019–20 FORECAST EXPENDITURE

Table 65: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure (Gross Plan)

Domain/ Project Name Project Number/ Phase

Approved Project

Expenditure $m

Cumulative Expenditure

to 30 June 2019

$m

Budget Estimate 2019-20

$m

Revised Estimate 2019-20

$m

Variation 2019-20

$m

Project Performance Update and Explanation of Variation

Air Domain

New Air Combat Capability (NACC)

AIR 6000 Phase 2A/B

17,155 4,612 2,389 1,898 -491

All aircraft production and program milestones, including Joint Strike Fighter initial operating capability milestones, are being delivered as planned.

The variation reflects the financial requirements arising from the United States Joint Program Office for anticipated billing arrangements for the remainder of this financial year and 2020-21.

Maritime Patrol and Response Aircraft System

AIR 7000 Phase 2

5,450 3,900 360 302 -58

The variation reflects revised financial commitment to the cooperative program for aircraft and weapons payments. The variation is primarily due to the earlier programming of 2019-20 aircraft payment funding into 2018-19.

Pilot Training System AIR 5428 Phase 1

1,269 681 302 303 1 The expenditure against planned budget is on track.

Airborne Early Warning & Control (AEWC) Interoperability Compliance Upgrade

AIR 5077 Phase 5A

1,207 606 180 179 -1 The expenditure against planned budget is on track.

Growler Airborne Electronic Attack Capability

AIR 5349 Phase 3

3,555 2,428 129 174 45

The variation reflects the financial programming requirements for Foreign Military Sales payments from 2018-19 into 2019-20, as well as delays in delivery of the Advanced Mobile Threat Training Emitter System contract (Advanced MTTES).

Future Naval Aviation Combat System (FNACS)

AIR 9000 Phase 8

3,252 2,338 113 129 16

The Project remains on track to achieve final operating capability by 2023.

The variation is primarily due to the procurement of additional Foreign Military Sales repairable items, and earlier than forecast implementation of Air Warfare Destroyer ship aviation upgrades for Seahawk Romeo.

Battlefield Airlift - Caribou Replacement

AIR 8000 Phase 2

1,455 833 94 92 -2 The expenditure against planned budget is on track.

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Table 65: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure (Gross Plan) (Continued)


Approved Project

Expenditure $m


to 30 June 2019

$m


$m


$m

Variation 2019-20

$m


Air Domain (Continued)

Multi-Role Helicopter (MRH) AIR 9000 Phase 2

3,776 3,216 56 120 64

The variation is primarily due to accrued 2018-19 payments that were delayed to 2019-20, early partial achievement of Final Acceptance Milestone criteria, and the allocation of contingency budget to realised risks associated with the stand up of 6 Aviation Regiment.

Joint Domain

Battlefield Command Systems (Tranche 2)

LAND 200 Phase 2-A

975 322 263 248 -15 The variation is primarily due to delays in vehicle integration and tactical communication network re-planning.

Battlespace Communications System (Land)

JP 2072 Phase 2B

952 490 207 190 -17

The variation is primarily due to the earlier than planned payment of equipment due to early achievement of delivery milestones (achieved in 2018-19) associated with the Integrated Battlefield Telecommunications Network. There are also further delays associated with integration aspects of interfacing projects (now planned for 2020-21).

Civil Military Air Traffic System (CMATS)

AIR 5431 Phase 3

978 264 93 87 -6 The variation is primarily due to re-negotiation of the payment schedule for the On-Supply Agreement with Air Services Australia, from 2019-20 into 2020-21 and 2021-22.

ADF Identification Friend or Foe and Automatic Dependent Surveillance - Broadcast

JP 90 Phase 1

438 171 78 39 -39 The variation is primarily due to delays in the upgrade of the Identification Friend or Foe system into the rotary and fixed wing aircraft.

Jindalee Operational Radar Network (JORN) Phase 6

AIR 2025 Phase 6

1,118 92 72 47 -25 The variation is primarily due to delays in the Prime Contract systems engineering program for the major redesign and upgrade to Australia’s Jindalee Operational Radar Network.

Maritime Communication Modernisation

SEA 1442 Phase 4

444 176 57 46 -11

The variation is primarily due to the delay in the planned installations and acquisition of spares to align with the revised ship availability, and a realignment of milestone activities for the acceptance of the First of Class.

Satellite Ground Station (SGS) - East and Wideband SATCOM Network Management System

JP 2008 Phase 5B2

236 114 57 64 7 The variation is primarily due to the achievement of project milestone deliverables earlier than originally forecast, and a revision of the expected payment schedule.

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Approved Project

Expenditure $m


to 30 June 2019

$m


$m


$m

Variation 2019-20

$m


Land Domain

Project Overlander - Protected Mobility Vehicle-Light

LAND 121 Phase 4

1,999 552 292 240 -52 The variation is primarily due to the revised payment milestones associated with the delays in finalising the Hawkei reliability program, and subsequent commencement of full rate production.

Medium and Heavy Capability (MHC), Field Vehicles, Modules and Trailers (FVMT)

LAND 121 Phase 3B

3,400 2,250 238 260 22

The project continues to deliver on schedule and is managed in conjunction with Land 121 Phase 5B. The variation is primarily due to Phase 3B vehicle and module milestones that had been re-programmed from 2018-19 to 2019-20.

Mounted Combat Reconnaissance Capability

LAND 400 Phase 2

5,879 285 200 174 -26 The variation is primarily due to delays as a result of the inclusion of the Electronic Architecture scope of work, as well as the feasibility study for the Active Protection System.

Night Fighting Equipment Replacement

LAND 53 Phase 1BR

452 206 91 79 -12

The project continues to deliver on schedule.

The variation is primarily due to efficiencies made in the support requirements for Tranche 1 of this project, which are now forecast for reinvestment in Tranche 2 deliveries.

Tactical Training Vehicles LAND 121 Phase 5

1,213 58 84 50 -34

The project is being managed in conjunction with Land 121 Phase 3B and continues to deliver on schedule.

The variation is primarily due to deliverables brought forward from 2019-20 into 2018-19, and for milestone payments deferred to 2020-21.

Maritime Domain

Future Frigate - Design and Construction

SEA 5000 Phase 1

6,336 417 492 373 -119

The variation is primarily due to the reprogramming of activities against the Head Contract, i.e. agreed deferral of the Integrated Baseline Review and the Integrated Logistics Support Contract Change Proposal. These adjustments are not anticipated to impact on key milestones including the commencement of prototyping by end 2020, and commencement of construction by end 2022.

Air Warfare Destroyer Program SEA 4000 Phase 3

9,114 7,785 356 315 -41 The variation is primarily due to the reprogramming of direct project costs, associated project management office expenditure and spares procurement into 2020-21.

Offshore Patrol Vessel SEA 1180 Phase 1-A

3,748 354 349 249 -100 The variation between the budget and the revised estimates is primarily due to the reprogramming of activities, i.e. Milestone on Spares and Pre Preparedness Review.

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Approved Project

Expenditure $m


to 30 June 2019

$m


$m


$m

Variation 2019-20

$m


Maritime Domain (Continued)

Offshore Patrol Vessel SEA 1180 Phase 1-A

3,748 354 349 249 -100 The variation between the budget and the revised estimates is primarily due to the reprogramming of activities, i.e. Milestone on Spares and Pre Preparedness Review.

Future Submarine Design and Construction

SEA 1000 Phase 1B

6,018 723 289 581 292

Government approval of $3.8 billion to enter into the Strategic Partnering Agreement and Submarine Design Contract with Naval Group was received in February 2019. This is reflected in the increased budget estimate for 2019-20.

The variation is primarily due to this approval along with the alignment of the Submarine Design Contract with Naval Group (signed in March 2019) and the Design, Build and Integration Contract with Lockheed Martin Australia (signed in January 2018), which required reprogramming of certain activities to 2020-21. The Attack Class Submarine Program remains on cost and schedule for delivery of the fleet from the early 2030s.

Maritime Operational Support Capability

SEA 1654 Phase 3

1,089 550 192 196 4 The expenditure against planned budget is on track.

Collins Sonar Capability Assurance Program

SEA 1439 Phase 6

674 192 105 88 -17 The variation is primarily due to milestone payments being paid in 2018-19 rather than in 2019-20 as originally forecast. The project remains on schedule.

Submarine Escape Rescue & Abandonment System

SEA 1354 Phase 1

382 38 83 99 16 The variation is primarily due to milestone payments being paid in 2019-20, rather than in 2018-19 as originally forecast. There is no change to scheduled delivery.

Pacific Patrol Boat Replacement SEA 3036 Phase 1

506 112 78 78 - The expenditure against planned budget is on track.

Collins Class Communications & Electronic Warfare Improvement

SEA 1439 Phase 5B2-A

612 251 96 94 -2

The expenditure against planned budget is on track.

The variation is primarily due to the delay of Foreign Military Sales planned payments to 2020-21.

ANZAC Air Search Radar Replacement

SEA 1448 Phase 4B-A

430 197 71 75 4

The variation is primarily due to delays in the installation milestones of the second of class vessel HMAS Anzac mission system to align with the ANZAC Midlife Capability Assurance Program (AMCAP) Sustainment Program. All contractual milestones associated with mission system two production and factory acceptance testing now occur in 2019-20.

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Approved Project

Expenditure $m


to 30 June 2019

$m


$m


$m

Variation 2019-20

$m

Total Top 30 Projects (Gross Plan) 84,112 34,213 7,467 6,869 -598

Other Approved Project Gross Plans 36,193 21,838 1,197 1,707 510

Total Approved Projects (Gross Plan) 120,305 56,051 8,664 8,576 -88

Management Margin: Slippage -1,485 -662 823

Payments Required for the Approved Programme

7,179 7,914 735

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APPENDIX C: TOP 30 SUSTAINMENT PRODUCTS BY 2019–20 FORECAST EXPENDITURE

Table 66: Top 30 Sustainment Products by 2019–20 Forecast Expenditure

Domain/ Product Name Product Serial


$m


$m

Variation 2019-20

$m


Air Domain

F/A 18F Super Hornet Weapon System

CAF21 511 480 -31 The variation is primarily due to the progressive reduction in the obligations under the Foreign Military Sales case with the United States.

Multi Role Helicopter TLH MRH90 CA48 251 232 -19

During Talisman Sabre 2019, the MRH90 experienced a Tail Rotor Blade issue which resulted in the MRH90 fleet cessation of flying from the 11 July 2019. This cessation was lifted on the 08 August 2019, with a gradual return to flying operations dependent on availability of modified Tail Rotor Blades. Consequently, as at the end of November 2019, the MRH90 fleet has not achieved the forecast Rate of Effort, which is reflected in the variation.

Airborne Early Warning and Control System - AEWC

CAF20 243 251 8 The variation is primarily due to additional funding required for security improvements.

F-35 Joint Strike Fighter CAF30 191 171 -20 The variation is primarily due to revised forecasts relating to the maturity of the emerging sustainment pipeline.

F/A 18F Hornet Weapon System CAF02 180 181 1 The expenditure against planned budget is on track.

Armed Reconnaissance Helicopter Weapons System

CA12 162 154 -8 The variation is primarily due to the agreed reduced Rate of Effort and the updated delivery schedule for the Capability Assurance Program.

Lead-In Fighter Hawk 127 Weapon System

CAF03 137 179 42

Note: The scope of this Product has changed to now include DEF6014 autonomous vehicle deliverables, Advanced Test and Training Environment support, and contracted Joint Adversarial Training and Testing Services.

The revised estimate reflects endorsed additional scope noted above, beyond the CAF03 core product of Lead In Fighter Training Systems.

MH-60R Seahawk Romeo Helicopter

CN35 130 143 13

As of December 2019, all 24 Seahawk Romeo aircraft have had the six minor mission system options incorporated. The variation is primarily due to support contract requirements, foreign exchange updates and additional Seahawk Romeo maintenance training.

C-17 Heavy Air Lift Weapons System

CAF19 123 118 -5

The expenditure against planned budget is on track.

There is some invoicing delay from the company to United States Air Force, which is affecting all C-17 partner nations and resulting in an anticipated reduction in 2019-20 Foreign Military Sales case payments.

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Table 66: Top 30 Sustainment Products by 2019-20 Forecast Expenditure (Continued)



$m


$m

Variation 2019-20

$m


Air Domain (Continued)

KC-30A Weapon System Multi-role Tanker Transport

CAF22 119 140 21 The variation is primarily due to additional expenditure to meet spares and deeper maintenance needs in the short-term, and to appropriately invest in mitigations for longer term supportability.

C130J-30 Hercules Weapon System CAF06 113 124 11 The variation is primarily due to additional cost of maintenance, spares, and repairs needed to meet aircraft serviceability and flying rate of effort targets. These costs include remediating the available quantity of serviceable engines and propellers.

P-8A Poseidon Maritime Surveillance Aircraft

CAF35 103 82 -21 The variation is primarily due to activities delivered in 2018-19, rather than in 2019-20 as previously forecast.

Pilot Training System CAF37 75 79 4 The expenditure against planned budget is on track.

C27J Spartan Battlefield Airlifters CAF34 69 69 - The expenditure against planned budget is on track.

Joint Domain

Army Munitions and Army Guided Weapons

CA59 & CA60

157 160 3 The variation is primarily due to foreign exchange updates.

Wide Area Surveillance (OTHR) CAF13 90 90 - The expenditure against planned budget is on track.

Air Force Munitions and Air Force Guided Weapons

CAF32 & CAF33

83 62 -21 The variation is primarily attributable to the planned transfer of explosive ordnance manufacturing funding from Air Force to the new Explosive Ordnance Manufacturing Facilities product (CJC 01).

Navy Explosive Ordnance CN54 76 141 65 The variation mitigates a number of emerging risks over the forward estimates and capitalises on earlier than expected supply chain opportunities.

Battlespace Communication Systems

CA31 73 100 27 The variation is primarily due to the acquisition of additional radios for the Protected Mobility Integrated Capability Assurance program.

Explosive Ordnance Manufacturing Facilities

CJC01 73 91 18 The variation is primarily due to the planned transfer of funding from Air Force for explosive ordnance manufacturing activities (CAF32 & CAF33).

ATC Capability (Air Traffic Control) CAF12 67 78 11 The variation is primarily due to variations in the planned introduction of the Civil Military Air Traffic Control System (CMATS), and some impacts from minor projects on navigation aids being delivered in sustainment.

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$m


$m

Variation 2019-20

$m


Joint Domain (Continued)

Command and Intelligence Systems CA40 63 55 -8

The variation is primarily due to delays in the transition to service of Enhanced Special Operations (Redfin) project (JP2097), the removal of Enhanced Deployable Local Area Network (EDLAN) support from the scope of the Battlefield Communications System (Land) project (JP2072PH2B), and more refined repair/support estimates.

Land Domain

ADF Clothing CA39 108 90 -18

The product continues to meet the ADF’s clothing and footwear requirements.

The variation is primarily due to revised demand planning and work prioritisation, that have resulted in cost savings and reallocation of funding to existing capability sustainment funding pressures.

ADO Commercial Vehicles Fleet CA19 75 53 -22

The variation is primarily due to savings made by the program due to the ability to access to a wider vehicle market following cessation of the Australian vehicle manufacturing industry, and enhancements to fleet management and vehicle replacement planning that have been driven by improvements in the data being provided by the whole of government Fleet Services Contractor.

Maritime Domain

Collins Class Submarine CN10 566 569 3 The variation is primarily due to foreign exchange updates.

Anzac Class Frigate CN02 339 360 21 The variation is primarily due to funding provided to Anzac Class Frigates for additional treatment of maintenance, supportability and obsolescence risks.

Destroyer Designated Guided (Air Warfare)

CN40 188 209 21 The variation is primarily due to funding provided to Hobart Class Destroyers for additional treatment of maintenance and supportability risks, and foreign exchange updates.

Canberra Class Landing Helicopter Dock

CN34 132 131 -1 The expenditure against planned budget is on track.

Maritime Cross Platform CN49 76 81 5 The variation is primarily due to funding provided to Maritime Cross Platform for additional procurement of common material across multiple Navy platforms.

Hydrographic Support CN46 70 75 5 The variation is primarily due to funding provide to support the Engineering Annual Program necessary for completion of supportability engineering change proposals for the Leeuwin Class Hydrographic Ships and Paluma Class Survey Motor Launches.

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$m


$m

Variation 2019-20

$m

Total - Top 30 Products 4,644 4,748 104

Other Approved Sustainment Product Estimates 1,887 2,128 241

Total Sustainment Product Funds Available 6,531 6,876 345

Support to Operations 257 264 7

Total Sustainment and Operations Funding 6,788 7,140 352

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APPENDIX D: FACILITIES AND INFRASTRUCTURE PROGRAM

The Facilities and Infrastructure Program component of the Integrated Investment Program comprises approved and yet to be approved major and medium capital facilities projects.

Prior to 23 March 2019, Major Capital Facilities projects were defined as having expenditure over $15 million (excluding GST) and were subject to Government approval, and formal review by the Parliamentary Standing Committee on Public Works (PWC). Medium Capital Facilities projects had expenditure between $2 million and $15 million with projects over $8 million subject to Government approval. Projects valued between $2 million and $15 million were required to be notified to, and agreed by, the PWC but may not have been formally reviewed by the Committee. Details of approved major projects are provided in this Appendix in line with this definition, as it was the basis of the Portfolio Budget Statements 2019-20.

On 23 March 2019, the Public Works Committee Legislation Amendment (2019 Measures No 1) Regulations 2019 took effect. Under this instrument, the referral threshold for public works for Defence purposes was increased from $15 million to $75 million. Defence’s Major Capital Facilities projects are now defined as having expenditure over $75 million (excluding GST) and are subject to Government approval, and formal review by the PWC. Medium Capital Facilities projects have expenditure between $2 million and $75 million with projects over $8 million subject to Government approval. Projects valued between $2 million and $75 million are required to be notified to, and agreed by, the PWC but may not be formally reviewed by the Committee.

The Facilities and Infrastructure Program is comprised of projects that support and sustain current and future capability requirements, support other government initiatives, meet legislative obligations and provide engineering and infrastructure services and upgrades to existing facilities.

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Approved Capital Facilities Projects

The table below and the following descriptions provide details on the progress and expenditure during 2019-20, on Capital Facilities projects.

Table 67: Approved Capital Facilities Projects by State and Federal Electorate

State and Electorate

Total Estimated

Expenditure $m

Estimated Cumulative

Expenditure to 30 June

2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m

Project Performance Update and Explanation of Financial

variation

New Air Combat Capability Facilities Project (AIR 6000 Phase 2A/B)[1]

RAAF Williamtown NSW - Paterson - 885.3 856.3 15.9 23.4 7.5

RAAF Tindal NT - Lingiari - 391.2 427.7 77.6 82.3 4.7

RAAF Darwin NT - Solomon - - - 2.3 - -2.3

RAAF Townsville QLD - Herbert - - - 2.3 - -2.3

RAAF Learmonth WA - Durack - - - - - -

Defence Establishment Myambat NSW - Hunter - 3.4 1.0 7.2 6.3 -0.9

Total 1,485.8 1,279.9 1,285.0 105.3 112.0 6.7 The financial variation is a result

of change in delivery schedule

Enhanced Land Force (ELF) Stage 2[1]

Lone Pine Barracks NSW - Hunter - 115.8 115.8 - - -

Puckapunyal Training Area VIC - Nicholls - 11.7 11.8 - - -

Simpson Barracks, Watsonia VIC - Jagajaga - 20.2 20.2 - - -

RAAF Amberley QLD - Blair - 9.6 9.6 - - -

Lavarack Barracks, Townsville QLD - Herbert - 62.0 62.0 - - -

Townsville Training Area QLD - Kennedy - 3.9 3.9 - - -

Greenbank Training Area QLD - Rankin - 120.7 120.7 - - -

Gallipoli Barracks, Enoggera QLD - Ryan - 807.9 807.9 - - -

Wide Bay Training Area QLD - Wide Bay - 91.8 78.3 - - -

Kokoda Barracks, Canungra QLD - Wright - 71.8 68.5 - - -

Cultana Training Area SA - Grey - 69.4 61.8 0.2 7.7 7.5

RAAF Edinburgh SA - Spence - 34.5 34.5 - - -

Majura Field Training Area ACT - Fenner - 22.4 13.4 - - -

RMC Canberra ACT - Fenner - - 9.0 - - -

Mount Stuart QLD - Kennedy - - 7.8 - - -

Total 1,457.8 1,441.8 1,425.4 0.2 7.7 7.5 The financial variation is a result


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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)

State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

Maritime Patrol Aircraft Replacement (AIR 7000 Phase 2B)[1]

RAAF Edinburgh SA - Spence - 396.9 410.3 50.3 95.0 44.7

RAAF Darwin NT - Solomon - 3.0 3.1 63.9 33.0 -30.9

RAAF Townsville QLD - Herbert - - - 16.1 8.0 -8.1

RAAF Pearce WA - Pearce - - - 48.8 29.1 -19.8

HMAS Stirling WA - Brand - 4.3 4.3 2.1 0.4 -1.7

Total 707.9 404.2 417.6 181.2 165.4 -15.8 The financial variation is a result


Larrakeyah Defence Precinct Redevelopment Program The financial variation is a result of change in delivery schedule Larrakeyah Defence Precinct NT - Solomon 495.5 1.7 24.9 81.2 50.5 -30.7

HMAS Cerberus Redevelopment

HMAS Cerberus VIC - Flinders 465.6 67.5 122.4 141.0 141.0 -

Air Traffic Control Complex Infrastructure Project and Fixed Base Defence Air Traffic Management and Control System (AIR 5431 Phases 2 and 3)[1]

RAAF Amberley QLD - Blair - 48.7 49.0 1.5 1.5 0.0

Army Aviation Centre Oakey QLD - Groom - 36.1 35.8 1.1 3.6 2.5

RAAF Townsville QLD - Herbert - 41.8 38.3 1.4 2.5 1.1

RAAF Richmond NSW - Macquarie - 31.8 27.8 3.2 2.8 -0.4

HMAS Albatross NSW - Gilmore - 23.0 16.9 0.7 0.7 -

RAAF Williamtown NSW - Paterson - 48.5 43.6 2.8 3.9 1.1

RAAF East Sale VIC - Gippsland - 9.6 9.7 1.1 - -1.1

RAAF Woomera SA - Grey - 0.9 0.9 - - -


RAAF Gingin WA - Pearce - 7.5 7.3 1.8 3.5 1.7

RAAF Pearce WA - Pearce - 35.6 33.1 2.9 3.5 0.6

RAAF Darwin NT - Solomon - 17.2 15.9 23.9 28.8 4.9

RAAF Tindal NT - Lingiari - 47.3 45.2 2.6 4.5 1.9

Total 409.9 355.2 331.0 44.7 58.1 13.4 The financial variation is a result


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Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

Growler Airborne Electronic Attack Capability Facilities (AIR 5349 Phase 3)[1]

RAAF Amberley QLD - Blair - 254.3 244.4 19.8 9.4 -10.4

Delamere Weapons Range NT - Lingiari - 76.0 73.0 20.0 9.8 -10.2



Battlefield Airlifter Facilities (AIR 8000 Phase 2) The financial variation is a result of change in delivery schedule RAAF Amberley QLD - Blair 370.4 348.6 337.7 17.9 27.0 9.1

HMAS Stirling Redevelopment Stage 3A The financial variation is a result of change in delivery schedule HMAS Stirling, Rockingham WA - Brand 366.8 217.0 242.7 100.8 101.3 0.5

Pilot Training System Facilities (AIR 5428 Phase 1)[1]

RAAF East Sale VIC - Gippsland - 179.4 174.4 4.3 13.9 9.6

RAAF Pearce WA - Pearce - 93.3 91.2 - 4.3 4.3

RAAF Edinburgh SA - Spence - - - 10.0 7.6 -2.4

RAAF Williamtown NSW - Paterson - - - 2.5 2.0 -0.5

RAAF Gingin WA - Pearce - 9.4 9.3 - - -



Garden Island (East) Critical Infrastructure Recovery (CIRP) Stage 2 The financial variation is a result of change in delivery schedule Garden Island Defence Precinct NSW - Sydney 286.5 3.2 8.0 84.1 53.6 -30.5

LAND 121 Stage 2A[1]

Lavarack Barracks, Townsville QLD - Herbert - 121.3 126.6 8.8 1.5 -7.3

Gallipoli Barracks, Enoggera QLD - Ryan - 58.9 53.5 1.3 - -1.3

RAAF Williamtown NSW - Paterson - 12.7 13.0 0.5 - -0.5

Holsworthy Barracks, Holsworthy NSW - Hughes - 1.3 1.9 0.1 - -0.1

Puckapunyal Training Area VIC - Nicholls - 24.3 23.7 - - -

Campbell Barracks WA - Curtin - 6.1 7.4 1.6 1.6 0.0

RAAF Edinburgh SA - Spence - 8.9 9.1 - - -

Robertson Barracks NT - Lingiari - 0.6 1.0 0.3 - -0.3

RAAF Darwin NT - Solomon - 2.5 2.5 0.2 9.3 9.1



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State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

RAAF Base Williamtown Redevelopment Stage 2 The financial variation is a result of change in delivery schedule RAAF Williamtown NSW - Paterson 274.0 199.9 201.2 58.0 54.3 -3.7

Explosive Ordnance Logistics Reform Program[1]

RAAF Amberley QLD - Blair - 10.3 21.5 5.9 1.4 -4.5

Mount Stuart QLD - Kennedy - 4.8 9.8 0.7 1.3 0.6

RAAF Darwin NT - Solomon - 8.6 18.3 2.7 1.9 -0.8

Defence Establishment Myambat NSW - Hunter - 22.4 19.2 39.5 36.6 -2.9

Twofold Bay NSW - Eden-

Monaro - 4.0 7.5 11.5 2.8 -8.7

HMAS Cerberus VIC - Flinders - 4.9 13.0 - 0.4 0.4

Mangalore VIC - Nicholls - 11.8 3.7 16.7 22.3 5.6

Point Wilson VIC - Corio - 5.0 - 8.5 9.2 -0.3

Fort Direction TAS - Franklin - 1.0 3.4 - 0.1 0.1





Maritime Operational Support Capability Facilities (SEA 1654 Phase 3)[1]


Randwick Barracks NSW - Kingsford

Smith - 1.8 11.2 11.6 22.2 10.6

Garden Island Defence Precinct NSW - Sydney - 0.2 0.1 0.2 0.1



C-17 Maintenance Facility, Aircraft Apron and Associated Infrastructure (AIR 8000 Phase 3) The financial variation is a result of change in delivery schedule RAAF Amberley QLD - Blair 219.4 168.4 173.5 36.9 18.6 -18.3

Point Wilson Waterside Infrastructure Remediation Project This project has been approved since PBS Point Wilson VIC - Corio 218.9 - - - 28.1 28.1

Garden Island (East) Critical Infrastructure Recovery (CIRP) Stage 1 The financial variation is a result of change in delivery schedule Garden Island Defence Precinct NSW - Sydney 213.4 28.7 34.2 86.3 91.0 4.7

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Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

Joint Health Command Garrison Facilities Upgrades[1]

Simpson Barracks, Watsonia VIC - Jagajaga - 1.6 - 11.6 9.8 -1.8

Puckapunyal Training Area VIC - Nicholls - 1.7 - 13.4 11.1 -2.3

Albury-Wodonga, South Bandiana

VIC - Indi - 2.0 6.8 11.8 11.0 -0.8

Royal Military College ACT - Canberra - 3.5 4.2 29.8 33.3 3.5

Holsworthy Barracks NSW - Hughes - 0.8 3.2 6.5 4.0 -2.5

Robertson Barracks NT - Lingiari - 1.3 0.3 1.0 1.9 0.9

Larrakeyah Barracks NT - Solomon - 1.8 1.3 12.9 12.7 -0.2

Army Aviation Centre Oakey QLD - Groom - 1.8 - 11.7 9.9 -1.8

Gallipoli Barracks, Enoggera QLD - Ryan - 1.2 - 7.1 5.7 -1.4

Campbell Barracks WA - Curtin - 2.0 1.3 12.8 14.5 1.7

RAAF Townsville QLD - Herbert - 1.2 - 11.1 8.4 -2.7

RAAF Pearce WA - Pearce - 0.3 1.2 2.1 3.0 0.9



Airfield Capital Works P0007(East Sale, Pearce, Gingin and Oakey)[1]

RAAF East Sale VIC - Gippsland - - 2.3 93.0 67.4 -25.6

RAAF Pearce WA - Pearce - - - - - -

RAAF Gingin WA - Pearce - - - - - -

Army Aviation Centre Oakey QLD - Groom - - 1.8 35.6 35.0 -0.6



DEF101 Data Centre Upgrade The financial variation is a result of change in delivery schedule HMAS Harman ACT - Bean 129.9 2.3 - 48.9 26.2 -22.7

Defence Force School of Signals (DFSS) Redevelopment Project

Simpson Barracks, Watsonia VIC - Jagajaga - - 92.8 13.0 18.4 5.4

HMAS Cerberus VIC - Flinders - - - 0.9 1.2 0.3



Space Surveillance Telescope (JP 3029 Phase 2)

Harold E Holt, Exmouth WA - Durack 97.2 84.4 88.2 6.0 6.0 0.0

97

Departm

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State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

Naval Guided Weapons Maintenance Facilities Project

Defence Establishment Orchard Hills

NSW - Lindsay 95.5 1.0 - 22.6 50.0 27.4 The financial variation is a result


Airfield Capital Works P0006 (Curtin, Tindal and Townsville)[1]

RAAF Townsville QLD - Herbert - - - 7.0 6.0 -1.0

RAAF Curtin WA - Durack - 14.0 15.0 - 1.0 1.0

RAAF Tindal NT - Lingiari - 48.1 46.5 1.0 1.0 -



Russell Office Precinct Upgrade R5 and R6 Midlife Upgrade

Russell Offices ACT - Canberra 75.4 26.3 33.2 34.8 36.5 1.7 The financial variation is a result


Defence High Performance Computing Centre

RAAF Edinburgh SA - Spence 68.8 2.0 - 57.4 37.0 -20.4 The financial variation is a result


Land 17 Phase 1B/1C[1]

Gallipoli Barracks, Enoggera QLD - Ryan - 7.9 6.8 - 0.1 0.1

Lavarack Barracks QLD - Herbert - 10.0 8.6 - 0.1 0.1

Robertson Barracks NT - Lingiari - 10.3 13.7 1.2 0.3 -0.9

Puckapunyal Training Area VIC - Nicholls - 9.6 9.0 - 0.1 0.1

Campbell Barracks WA - Curtin - 4.7 4.8 - 0.1 0.1

Holsworthy Barracks NSW - Hughes - 5.1 4.4 - 0.1 0.1

RAAF Williamtown NSW - Paterson - 6.0 5.3 - 0.1 0.1

Proof & Experimental Establishment - Port Wakefield

SA - Grey - 1.3 1.6 - 0.1 0.1



AIR 2025 Phase 6 Jindalee Operational Radar Networks (JORN) Facilities Project

Alice Springs NT - Lingiari 50.7 1.4 9.0 33.0 42.8 9.8 The financial variation is a result


98

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Portfo

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01

9–20


State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

REDFIN Infrastructure (JP 2097 Phase 1B)[1]

Holsworthy Barracks NSW - Hughes - 18.1 17.4 0.6 0.9 0.3

Campbell Barracks WA - Curtin - 17.0 17.6 3.3 3.3 -

Defence Establishment Howard Springs

NT - Lingiari - 5.3 4.4 - - -

Lavarack Barracks QLD - Herbert - 4.0 4.4 - - -



LAND 4502 Phase 1 Additional CH-47F Chinook Facilities The financial variation is a result of change in delivery schedule RAAF Townsville QLD - Herbert 49.9 1.3 0.3 33.3 28.9 -4.4

Singleton Mid Term Refresh This project has been approved since the PBS Singleton Military Area NSW - Hunter 42.2 - - - 7.3 7.3

Replacement Aviation Refuelling Vehicles Infrastructure (JP 157 Phase 1)[1]

RAAF Amberley QLD - Blair - - 0.3 - 0.1 0.1

RAAF Townsville QLD - Herbert - - 2.1 2.1 1.0 -1.1

RAAF Williamtown NSW - Paterson - - 2.2 - 1.0 1.0

RAAF Richmond NSW - Macquarie - - 2.7 0.9 1.2 0.3

Holsworthy Barracks NSW - Hughes - - 2.0 1.0 0.9 -0.1

RAAF Darwin NT - Solomon - - 1.4 - 0.6 0.6

Robertson Barracks NT - Lingiari - - 1.4 - 0.6 0.6

RAAF Tindal NT - Lingiari - - 0.5 - 0.2 0.2

RAAF Learmonth WA - Durack - - 3.1 - 1.4 1.4

RAAF Curtin WA - Durack - - - - - -

HMAS Stirling WA - Brand - - 1.4 - 0.6 0.6

RAAF Edinburgh SA - Spence - - 3.1 - 1.4 1.4

Woomera Test Facility SA - Grey - - 2.1 0.9 1.0 0.1



99

Departm

ent o

f Defe

nce


State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

LAND 200 Tranche 2 Battlefield Communications Systems Facilities Project

Robertson Barracks NT - Lingiari - - 0.1 1.7 2.0 0.3

RAAF Edinburgh SA - Spence - - 0.1 0.9 1.6 0.7

Lavarack Barracks QLD - Herbert - - 0.1 5.4 4.4 1.0

Puckapunyal Training Area VIC - Nicholls - - 0.1 4.0 4.5 0.5

Singleton Military Area NSW - Hunter - - 0.1 5.5 4.0 1.5

Watsonia Barracks VIC - Jagajaga - - 0.1 1.9 2.6 0.7

Bandiana VIC - Indi - - 0.1 3.7 3.7 0.0



LAND 998 Phase 1 Replacement Aviation Fire Truck Facilities Project

RAAF Amberley QLD - Blair - - 1.6 - - -

RAAF Tindal NT - Lingiari - - 1.2 3.8 1.6 -2.2

RAAF Williamtown NSW - Paterson - - 1.4 5.6 7.9 2.3

RAAF Richmond NSW - Macquarie - - 2.4 - - -

Robertson Barracks NT - Lingiari - - 2.5 - - -

Gallipoli Barracks QLD - Ryan - - 0.3 - - -

Lavarack Barracks QLD - Herbert - - 1.9 - - -



LAND 2110 Phase 1B – Chemical, Biological, Radiological and Nuclear Defence (CBRND) Facilities

HMAS Stirling WA - Brand - - - 0.7 0.1 -0.6

Bindoon Training Area WA - Pearce - - - 0.1 - -0.1

Robertson Barracks NT - Lingiari - - - 2.4 0.3 -2.1

RAAF Edinburgh SA - Spence - - - 2.0 0.3 -1.7

Lavarack Barracks QLD - Herbert - - - 1.1 0.2 -0.9

Gallipoli Barracks QLD - Ryan - - - 0.3 - -0.3

RAAF Amberley QLD - Blair - - - 1.1 0.2 -0.9

Holsworthy Barracks NSW - Hughes - - - 0.6 0.1 -0.5

Kapooka Military Area NSW - Riverina - - - 1.2 0.2 -1.0

RAAF Base Wagga NSW - Riverina - - - 0.4 0.1 -0.3

HMAS Creswell ACT - Fenner - - - 0.7 0.2 -0.6

10

0

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9–20


State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

Majura Range ACT - Canberra - - - 1.1 0.2 -0.9

HMAS Cerberus VIC - Flinders - - - 0.4 0.1 -0.3

Dutson Air Weapons Range VIC - Gippsland - - - 0.6 0.1 -0.5



HMAS Moreton Unit Relocation The financial variation is a result of change in delivery schedule HMAS Moreton QLD – Griffith 15.6 8.8 14.0 1.1 1.6 0.5

USFPI Marine Rotational Force Darwin (MRF-D) This project was not previously

reported in the PBS RAAF Darwin NT - Solomon 13.4 - - - 13.4 13.4

DEF 799 Phase 1 – Geospatial Intelligence Satellite Capability

RAAF Base Edinburgh SA - Spence - - 0.8 - 0.9 -

Christmas Island NT - Lingiari - - 2.4 - 0.8 -

Woomera Test Facility SA - Grey - - 1.2 - 1.2 -

RAAF Base Tindal NT - Lingiari - - 2.5 - 0.0 -

Total 10.3 - 6.8 - 2.9 2.9 This project was not previously

reported in the PBS

Vibration Test Facility Port Wakefield This project was not previously reported in the PBS Port Wakefield SA - Grey 8.9 - 0.1 - 6.9 6.9

Underwater Explosive Ordnance Test Facility DSTG Nagambie This project was not previously reported in the PBS Nagambie VIC - Nicholls 7.6 - 6.8 - 0.5 0.5

Robertson Barracks Close Training Area This project was not previously reported in the PBS Robertson Barracks NT - Lingiari 7.6 - - - 2.4 2.4

RAAF Base Pearce – Upgrade of Potable Water This project was not previously reported in the PBS RAAF Pearce WA - Pearce 7.5 - 1.1 - 1.5 1.5

JP2008 Phase B2 Wagga Military Satellite Capability Wideband Terrestrial Infrastructure Project This project was not previously reported in the PBS Kapooka Military Area NSW - Riverina 6.9 - - - 1.8 1.8

10

1

Departm

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State and

Electorate

Total Estimated

Expenditure $m



2019 $m



2019 $m (revised)

2019-20 Budget

Estimate $m

2019-20 Revised

Estimate $m

Variation $m


variation

Robertson Barracks Small Arms Range This project was not previously reported in the PBS Robertson Barracks NT - Lingiari 6.9 - 6.1 - 0.1 0.1

Combat Training Centre – Tully Training Replacement Suspension Bridge This project was not previously reported in the PBS Tully Training Area QLD - Kennedy 6.7 - 3.5 - 2.7 2.7

Building 106 Extensions and Alterations, Environmental Test Facility, Proof and Experimental Establishment, Port Wakefield, SA This project was not previously reported in the PBS Port Wakefield SA - Grey 5.5 - 0.3 - 4.1 4.1

DSTO Graytown Armour Testing Facility This project was not previously reported in the PBS Graytown VIC - Nicholls 5.0 - 4.6 - 0.0 0.0

Projects in or about to enter Defects Liability Period[2] 3.8 12.1 8.3

Total[3] 9,912.6 5,886.7 6,045.2 1,803.8 1,715.3 -88.5

Notes

1. These projects cross state and electoral boundaries. Estimated cumulative expenditure to 30 June 2019 and expenditure estimates for 2019-20 are provided in the table per location.

2. This amount represents the expenditure estimates for contract administration of five completed projects during their first year in-use.

3. Sum of the individual items may differ to the totals due to rounding. Budget estimates shown as 0.0 are amounts greater than $0 but less than $50,000.


102

Explanation of Projects

Information is as reported in the PBS 2019–20, with the following updates:

New South Wales

Garden Island (East) Critical Infrastructure Recovery Project (CIRP) Stage 1

This project is addressing critical structural, condition and engineering services risks on the Cruiser and Oil Wharves at Garden Island (East), Sydney, NSW. The project is scheduled for completion by mid 2021.

Garden Island (East) Critical Infrastructure Recovery Project (CIRP) Stage 2.

This project is providing upgraded wharves and engineering services to address condition, capacity and compliance issues at Garden Island (East), Sydney, NSW. This project is scheduled for completion by early 2024.

Singleton Mid-Term Refresh

This project is remediating trunk infrastructure in the Singleton Military Area, and delivering new and refurbished buildings for base support and logistics. The project is scheduled for completion by early 2022.

JP2008 Phase B2 Wagga Military Satellite Capability Wideband Terrestrial Infrastructure Project

This project provided infrastructure to support JP2008PH5B capability project requirements at Kapooka Military Area, Wagga Wagga. The overall JP2008PH5B capability project aim was to establish a multi terminal remotely-controlled Satellite Ground Station-East (SGS-E). Construction is complete and currently in the Defects Liability Period.

Queensland

Battlefield Airlifter Facilities (AIR 8000 Phase 2)

This project is providing facilities at RAAF Base Amberley, QLD to accommodate and support the operation of the new C-27J Battlefield Airlifter aircraft. The works are complete except for in-ground infrastructure, ICT and heritage works. The project is scheduled for completion by late 2020.

C-17 Maintenance Facility, Aircraft Apron and Associated Infrastructure (AIR 8000 Phase 3)

This project is providing a maintenance facility, working accommodation, an aircraft apron and associated facilities at RAAF Base Amberley, QLD. The works are complete except for ICT installation. This project is scheduled for completion by mid 2020.

HMAS Moreton Unit Relocation

This project is ensuring that Navy’s operational and administrative functions are retained after the partial disposal of surplus Defence land at Bulimba Barracks. The project is also providing new facilities and services on the remaining portion of the site to replace those functions that were displaced. The works are complete except for the ICT installation, which is scheduled for completion by January 2020.

Combat Training Centre – Tully

This project provided a pedestrian suspension bridge at the Tully Training Area, Combat Training Centre to enable emergency casualty evacuation from the training area. Previous crossing points were destroyed by Cyclone Yasi in 2011. Construction is complete and currently in the Defects Liability Period.


103

Western Australia

Space Surveillance Telescope (JP 3029 Phase 2)

This project is providing facilities and infrastructure to support the operations of the Space Surveillance Telescope, which will enable an increased ability to track space debris. The works are complete except for the Central Power Station. The project is scheduled for completion by March 2020.

HMAS Stirling Redevelopment Stage 3A

This project is providing upgrades and refurbishment of existing critical shortfalls to infrastructure and facilities. The works are complete except for 11 packages, the main elements being electrical, maritime structures, and the wastewater treatment plant. The project is scheduled for completion by mid 2020.

Campbell Barracks Redevelopment

This project provided a new Headquarters for the Special Air Services Regiment, communications facilities, working accommodation, storage facilities and supporting site infrastructure at Campbell Barracks, WA. Construction is complete and currently in the Defects Liability Period.

RAAF Base Pearce – Upgrade of Potable Water Infrastructure

This project is providing a base wide compliant potable water system modification at RAAF Base Pearce to address potable water supply and infrastructure issues that are critical to the ongoing operations of the base. Construction is scheduled to commence in January 2020 and is scheduled for completion by late 2020.

Northern Territory

Larrakeyah Defence Precinct Redevelopment Program

This program of works is upgrading critical base infrastructure, improving the working environment for Defence personnel including new facilities for the North West Mobile Force (NORFORCE), and supporting future growth on Larrakeyah Defence Precinct. This project is also delivering a new wharf, fuel storage and refueling capabilities to support Navy’s major surface combatant ships operating in the north of Australia. The project is scheduled for completion by mid 2023.

USFPI Marine Rotational Force Darwin (MRF-D)

This project is providing refurbished demountable accommodation to create a self-contained US Marine Corp residential precinct at RAAF Base Darwin for US Marine rotations commencing March 2020. The works are complete except for installation of electrical sub-mains, final landscaping and building commissioning. The project is scheduled for completion by February 2020.

Robertson Barracks Close Training Area

This project is providing perimeter fencing, signage, fire break installations, rubbish clearance and asbestos removal to ensure the newly acquired Robertson Barracks Close Training Area land is suitable for Defence use. Construction is scheduled to commence in March 2020 and is scheduled for completion in mid 2021.

Robertson Barracks Small Arms Range

This project is addressing issues that impact on Darwin-based units to maintain mandated levels of readiness, through the construction of a 25m / 100m small-arms range within the Robertson Barracks Close Training Area. The project is scheduled for completion by March 2020.


104

South Australia

Defence High Performance Computing Centre

This project is providing facilities to house the high performance computing equipment as well as meeting, auditorium, and training facilities located at DSTG Edinburgh. The project is scheduled for completion by early 2021.

Vibration Test Facility Port Wakefield

This project is providing new facilities to house the dual shaker acquired by Joint Logistics Command to allow the ongoing testing and evaluation needs of the Proof and Experimental Establishment, Port Wakefield. The project is scheduled for completion in mid 2020.

Building 106 Extensions and Alterations, Environmental Test Facility, Proof and Experimental Establishment, Port Wakefield, SA

This project is providing a new Environmental Test Facility control building at Port Wakefield to improve working conditions, workplace efficiency and access control. The project is scheduled for completion in February 2020.

Victoria

HMAS Cerberus Redevelopment

This project is providing engineering services upgrade, consolidation of Living-In-Accommodation and Mess Facilities, co-location of Clothing Store with Naval Store, School of Survivability and Ship Safety upgrade, Gym upgrade, Armoury, Explosive Ordnance and Weapons Storage Facility upgrade, and demolition. The project is scheduled for completion by mid 2023.

Defence Force School of Signals (DFSS) Redevelopment Project

This project is providing new working accommodation at DFSS Simpson Barracks, VIC and ICT upgrades at DFSS Maritime Communications and Information Systems (MCIS) Wing at HMAS Cerberus, VIC. Construction is scheduled for completion by mid 2020.

Point Wilson Waterside Infrastructure Remediation Project

This project is providing remediation to the Point Wilson Explosives Area waterside infrastructure in order to enable the recommencement of bulk Explosive Ordnance importation operations. The project will refurbish the existing 2.4 km jetty with a new road deck, and provide an entirely new wharf, amenities building, landside infrastructure and engineering services. This project is scheduled for completion by late 2022.

Underwater Explosive Ordnance Test Facility DSTG Nagambie

This project is providing an essential testing facility for DSTG to conduct underwater testing of materials. Construction is complete and currently in the Defects Liability Period.

DSTO Graytown Armour Testing Facility

This project is providing an essential testing facility for DSTG to conduct Armour testing of materials. The works are complete except for installation of the Armour plating. The project is scheduled for completion by February 2020.


105

Various Locations

New Air Combat Capability Facilities Project (AIR 6000 Phase 2A/B)

This project is providing 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, NSW. The majority of the works are complete at RAAF Bases Williamtown and Tindal. The project is scheduled for completion by early 2021.

Enhanced Land Force (ELF) Stage 2

This project provided modern purpose-built facilities and supporting infrastructure for the 8th/9th Battalion, the Royal Australian Regiment and supporting elements of the Army's 7th Brigade at Gallipoli Barracks in Enoggera, Brisbane, QLD. The project included the construction of new and refurbished accommodation and training facilities, as well as common use facilities and site infrastructure upgrades, at Enoggera and other Defence sites across four States and both mainland Territories.

Facilities at Townsville, Singleton, Duntroon and Watsonia provide modern accommodation and supporting infrastructure for increased Army career training. In Sydney, at RAAF Bases Amberley and Edinburgh, and at nine other Defence Training Areas, new and refurbished facilities with site infrastructure upgrades have been provided for Army and joint enabling elements supporting the Enhanced Land Force capabilities.

All works are complete with the exception of works at Cultana Training Area, which includes the delivery of a wash point approved as part of the Hardened Networked Army facilities project. The project is scheduled for completion by February 2020.

Maritime Patrol Aircraft Replacement (AIR 7000 Phase 2B)

This project is providing new and upgraded facilities and infrastructure to support the introduction of the P-8A aircraft at RAAF Base Edinburgh SA, RAAF Base Townsville QLD, RAAF Base Pearce WA, and RAAF Base Darwin NT, as well as additional explosive ordnance facilities at HMAS Stirling. The project is scheduled for completion by mid 2022.

LAND 121 Stage 2A

This project is providing facilities across 13 bases to sustain the B-vehicle fleet in accordance with the Basis of Issue for Army, RAAF and Joint Logistics Command. These facilities will maintain (workshops and repair parts storage), support (fuel points, loading ramps, wash points and weigh bridges), and sustain (shelters and hardstand) the LAND 121 vehicles. The project is scheduled for completion by late 2020.

REDFIN Infrastructure (JP 2097 Phase 1B)

This project is providing facilities for the Special Operations Vehicle fleet to support mobility and communications for Special Operations Forces. The works are complete, except for ICT installation and the Fixed Communications Station. The project is which are scheduled for completion by mid 2020.

Pilot Training System Facilities (AIR 5428 Phase 1)

This project is providing fit-for-purpose facilities to support the modern joint training system being delivered by the AIR5428-1 Capability Project, with the facilities being delivered at RAAF Base East Sale VIC, RAAF Base Pearce and RAAF Gingin, WA, RAAF Base Williamtown NSW and RAAF Base Edinburgh SA. The works are complete except for the remediation of a Hanger at RAAF Base Edinburgh, and contamination remediation works at RAAF Base Peace, The project is scheduled for completion by mid 2020.


106

LAND 17 Phase 1B/1C

This project is providing facilities at eight Defence establishments to provide the necessary working, storage, maintenance and training facilities to support the additional Lightweight Towed Howitzer and simulation capability being acquired under LAND 17 Phase 1B/1C. The works are complete except for ICT installation. The project is scheduled for completion by mid 2020.

Maritime Operational Support Capability Facilities (SEA 1654 Phase 3)

This project is providing new and upgraded facilities and infrastructure to support the introduction of the Supply Class Auxiliary Oiler Replenishment vessels being provided under SEA 1654 Phase 3 Maritime Operational Support Capability Project. The project is scheduled for completion by mid 2022.

Airfield Capital Works P0007 (East Sale, Pearce, Gingin and Oakey).

This project is providing major maintenance to aircraft pavements and airfield lighting at RAAF Bases East Sale VIC, Pearce and Gingin WA, and Army Aviation Centre Oakey QLD. The project is scheduled for completion by late 2022.

Joint Health Command Garrison Facilities Upgrades

This project is providing fit for purpose, contemporary Garrison Health Facilities at 12 priority sites around Australia. The project is scheduled for completion by mid 2021.

Replacement Aviation Refueling Vehicles Infrastructure (JP 157 Phase 1)

This project is providing new and upgraded facilities to support a new fleet of aviation refueling vehicles at 15 locations. The works are complete except for Holsworthy Barracks and RAAF Base Townsville. The project is scheduled for completion by January 2020.

LAND 200 Tranche 2 Battlefield Communications Systems Facilities Project

This project is providing training and storage infrastructure to support the rollout of Battlefield Management Systems (BMS) at seven locations. The works are complete at Robertson Barracks and Edinburgh Defence Precinct, with all other sites scheduled for completion by mid 2020.

LAND 2110 Phase 1B – Chemical, Biological, Radiological and Nuclear Defence (CBRND) Facilities

This project is providing new and refurbished facilities including training and storage facilities at 14 Defence sites to support Australian Defence Force CBRND activities. Construction is scheduled to commence in late 2020 and is scheduled for completion by mid 2021.

DEF 799 Phase 1 – Geospatial Intelligence Satellite Capability

This project provided working accommodation at RAAF Base Edinburgh and facilities to support the establishment of three antenna farms (Christmas Island, RAAF Base Tindal and Woomera Test Facility) to support Australia’s ability to collect satellite imagery through commercial satellites. Construction is complete and currently in the Defects Liability Period.


107

APPENDIX E: STATUS OF MAJOR PROJECTS FORESHADOWED FOR

GOVERNMENT AND PARLIAMENTARY STANDING COMMITTEE ON PUBLIC

WORKS CONSIDERATION (PWC) IN 2019–20

Program of Works Foreshadowed for Consideration and Approval

Information is as reported in the PBS 2019–20.

During 2019-20, Defence has presented/expects to present a number of facilities proposals to the Parliamentary Standing Committee on Public Works (PWC). The following tables detail the proposed major and medium capital facilities projects expected to be referred to the PWC in Financial Year 2019-20.

Table 68: Major Capital Facilities Projects Foreshadowed for PWC Consideration and Approval in 2019-20[1]

State/Electorate

Actual/Indicative PWC Referral

Date

Actual/ Indicative

PWC Hearing Date[2]

Parliamentary Approval

Date[3]

Point Wilson Waterside Infrastructure Remediation

VIC – Corio 28 June 2018 31 July 2019[4]

24 August 2018

19 September 2019

Navy Capability Infrastructure Sub-program (combining facilities for SEA 5000 Phase 1 Future Frigates and SEA 1180 Phase 1 Offshore Patrol Vessels Project Batch 1)

Multiple 10 September

2019 20 November

2019 5 December

2019

HMAS Watson Redevelopment NSW –

Wentworth 11 September

2019 31 October

2019 5 December

2019

Shoalwater Bay Training Area Remediation

QLD – Capricornia

18 September 2019

15 November 2019

5 December 2019

LAND 121 Phase 5B Unit Sustainment Facilities

Multiple 27 November

2019 Early 2020 Mid 2020

Armoured Fighting Vehicle Facilities Program: Stage 1

Multiple 27 November

2019 Early 2020 Mid 2020

Facilities to Support KC-30 operations at RAAF Base Tindal and RAAF Base Tindal Redevelopment

NT – Lingiari Early 2020 Early 2020 Mid 2020

AIR 7000 Phase 1B Stage 1 Remotely Piloted Aircraft System and AIR 555 Phase 1 Airborne Intelligence Surveillance Reconnaissance Electronic Warfare Facilities Works

Multiple Early 2020 Early 2020 Mid 2020

Joint Information Warfare Facility ACT – Bean Early 2020 Early 2020 Mid 2020

Notes

1. This appendix identifies major and mediums capital facilities projects as defined by the Public Works Committee Legislation Amendment (2019 Measures No 1) Regulations 2019 with major being over $75 million (excluding GST) and medium being between $2 million and $75 million (excluding GST) for Defence purposes.

2. Hearing dates are subject to the Committee's consideration and agreement.

3. Forecasted approval dates are shown as “Early”, “Mid”, “Late”.

4. Point Wilson Waterside Infrastructure Remediation Project was referred to the PWC a second time, in July 2019. The second referral was a result of Parliamentary approval not being achieved prior to the 2019 election.


108

Table 69: Medium Projects Foreshadowed for Consideration and Approval[1]

State/Electorate PWC Notification[2]

Singleton Mid Term Refresh NSW – Hunter 19 September 2019

Defence Technology Acceleration Collab Fit-out Project ACT – Canberra 19 September 2019

Facilities for SEA 1442 Phase 6 Protected Satellite Communication Multiple 19 September 2019

Phase One Mulwala Decommissioning and Demolition Project NSW – Farrer 28 November 2019

Facilities for LAND 154 Phase 2 Weapons Technical Intelligence

Capability Multiple 28 November 2019

Facilities to Support the LAND 555 Phase 6 – Force Level Electronic

Warfare, Signals Intelligence and Vehicles Project QLD – Groom 28 November 2019

Puckapunyal Military Area Health & Wellbeing Centre –

ELF Stage 1 VIC – Nicolls Early 2020

BP26 Flexible Working Pilot ACT – Bean Early 2020

R1 Flexible Working Pilot ACT – Bean Early 2020

Holsworthy Mid Term Refresh NSW – Hughes Early 2020

Facilities to Support AIR 3023 Phase 1 Advanced Maritime Strike

Capability Air Multiple Early 2020

Oakey Barracks Mid Term Refresh (Swartz Barracks) QLD – Groom Early 2020

Sydney Future Office Accommodation Project Multiple Mid 2020

(June)

Melbourne Office Accommodation VIC – Melbourne Mid 2020

(June)

2CER Compensatory Hardstand QLD – Ryan Mid 2020

(June)

Phase 5D Nulka Assembly Maintenance Facilities Project NSW – Lindsay Mid 2020

(June)

Notes

1. This appendix identifies major and mediums capital facilities projects as defined by the Public Works Committee Legislation Amendment (2019 Measures No 1) Regulations 2019 with major being over $75 million (excluding GST) and medium being between $2 million and $75 million (excluding GST) for Defence purposes.

2. PWC Notification date confirms PWC’s actual approval dates. Forecast dates are subject to the PWC’s consideration and agreement.


109

Explanation of Projects

Information is as reported in the PBS 2019–20, with the following updates:

Project Narratives by State and Various Locations

Queensland

Shoalwater Bay Training Area (SWBTA) Remediation Project

This project will redevelop SWBTA to support the introduction of amphibious capability and ensure the Training Area remains sustainable into the future. SWBTA requires major developments in internal roads, tracks and creek crossings, including redeveloping training and support facilities. Construction is planned to commence in early 2020 and be completed by mid 2022.

New South Wales

HMAS Watson Redevelopment

This project will deliver a major redevelopment/upgrade of base engineering services and facilities at HMAS Watson to maintain support for Defence capability, in particular Navy training. Construction is planned to commence in early 2020 and be completed by early 2026.

Australian Capital Territory

Joint Information Warfare Facility

This proposed project will provide training facilities at HMAS Harman in support of capability. Subject to Parliamentary approval, construction is planned to commence in late 2020 and be completed by early 2023.

Northern Territory

Facilities to Support KC-30 Operations at RAAF Base Tindal and RAAF Base Tindal Redevelopment

This proposed program of works will provide new and upgraded facilities and infrastructure at RAAF Base Tindal NT to support growth in demand from the increasing operational tempo. Works proposed include providing some living-in-accommodation and critical base infrastructure, trunk engineering services (power, water, sewage) to ensure reliability of essential base services. The works proposed will also provide new airfield infrastructure, such as lengthening and widening the runway and constructing a new air movements terminal, aircraft apron, and an aviation fuel farm. Subject to Government and Parliamentary approvals, construction is planned to commence in mid 2020 and be completed by late 2027.


110

Various Locations

Navy Capability Infrastructure Sub-program

This program of works will provide new and upgraded facilities and infrastructure required around Australia to support the Navy’s introduction into service and sustainment of the new Hunter Class Frigates (SEA5000 Phase 1) and Arafura Class Offshore Patrol Vessels (SEA1180 Phase 1). Works are planned at HMAS Stirling WA, HMAS Coonawarra NT, HMAS Cairns QLD, Garden Island Defence Precinct NSW, Henderson WA and Osborne SA. Construction is planned to commence in early 2020 and be completed by mid 2027.

SEA 5000 Phase 1 – Future Frigates

This project will provide upgraded facilities and infrastructure to support the introduction of a new Class of frigates to replace the current Anzac Class Frigates. Construction is planned to commence in early 2020 and be completed by mid 2025.

SEA 1180 Phase 1 – Offshore Patrol Vessels (OPV) Batch 1

This project will provide berthing, training, maintenance, logistics, and support facilities at HMAS Stirling, HMAS Coonawarra, and HMAS Cairns to support the introduction into service of 12 new OPVs. Construction is planned to commence in mid 2020 and be completed by mid 2027.

AIR 7000 Phase 1B Stage 1 Remotely Piloted Aircraft System and AIR 555 Phase 1 Airborne Intelligence Surveillance Reconnaissance Electronic Warfare Facilities Works

This proposed program of works will provide fit for purpose facilities and infrastructure to support the introduction into service of the MQ-4C Triton Remotely Piloted Aircraft System and MC-55A Peregrine Airborne Intelligence Surveillance Reconnaissance Electronic Warfare capability. Works are planned at RAAF Base Edinburgh SA, RAAF Base Tindal and RAAF Base Darwin NT, RAAF Base Townsville QLD and the Territory of Cocos (Keeling) Islands. Subject to Government and Parliamentary approvals, construction is planned to commence in mid 2020 and be completed by 2024.

Armoured Fighting Vehicle Facilities Program: Stage 1

This proposed project will provide upgrades to support capability. Proposed scope includes upgrading unit facilities and training areas at various sites around Australia. Subject to Parliamentary approval, construction is planned to commence in mid 2020 and be completed by 2023.


111

AUSTRALIAN SIGNALS DIRECTORATE

Agency Resources and Planned Performance

Section 1: ASD Overview and Resources ........................................................................................ 113

1.1 Strategic Direction Statement ............................................................................................... 113

1.2 ASD Resource Statement ..................................................................................................... 115

1.3 Budget Measures .................................................................................................................. 117

Section 2: ASD Outcomes and Planned Performance ................................................................. 118


Section 3: ASD Explanatory Tables and Budgeted Financial Statements .............................. 120




112



113

AUSTRALIAN SIGNALS DIRECTORATE

Section 1: ASD Overview and Resources


No changes have been made to the Strategic Direction Statement since the PBS 2019–20.

Figure 3: ASD Organisational Structure

Acting Deputy Director-General

Signals Intelligence & Network Operations

Mr Ben Staughton

Deputy Director-General Corporate & Capability

Ms Hazel Bennett

Acting Head Australian Cyber Security Centre

Mr Karl Hanmore

Director-General

Ms Rachel Noble PSM

Principal Deputy Director-General

LTGEN John Frewen DSC, AM

Minister for Defence

Senator the Hon Linda Reynolds CSC


114

Senior Executive Changes

The following changes have taken place since the PBS 2019–20:

On 1 July 2019 Ms Rachel Noble PSM commenced as the Head of the Australian Cyber Security Centre.

On 14 September 2019 Mr Mike Burgess resigned his position as Director-General Australian Signals Directorate.

On 14 September 2019 LTGEN John Frewen DSC, AM commenced acting as Director-General Australian Signals Directorate.

On 2 December 2019 Mr Ben Staughton commenced acting as the Deputy Director-General Signals Intelligence and Network Operations.

On 13 December 2019 Mr Karl Hanmore commenced acting as the Head of the Australian Cyber Security Centre.

On 16 December 2019 Ms Rachel Noble PSM was appointed as the Director-General Australian Signals Directorate.


115

1.2 ASD RESOURCE STATEMENT

Table 70: ASD Resource Statement – Budget Estimates for 2019-20 as at Additional Estimates February 2020

Actual

available

appropriation

2018-19

$'000

Estimate

as at

Budget

2019-20

$'000

Proposed

Additional

Estimates

2019-20

$'000

Total

estimate at

Additional

Estimates

2019-20

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Departmental

Annual appropriations - ordinary annual services

Departmental appropriation 737,884 744,212 19,688 763,900 804,045 846,530 813,827

s74 External Revenue 3,023 4,072 4 4,076 2,857 2,924 3,000

Annual appropriations - other services - non-operating

Equity injection 130,636 173,240 3,596 176,836 188,440 108,070 69,793

Total departmental annual appropriations 868,520 921,524 23,288 944,812 995,342 957,524 886,620

Total departmental resourcing 868,520 921,524 23,288 944,812 995,342 957,524 886,620

Total resourcing for ASD 868,520 921,524 23,288 944,812 995,342 957,524 886,620


116

Annual Appropriations



2018-19

Available

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Increase in

Estimates

$'000

Decrease in

Estimates

$'000

Departmental Outputs

Departmental Outputs [1] 737,884 744,212 763,900 19,688 -

Total 737,884 744,212 763,900 19,688 -

Note

1. Additional appropriation is provided in Appropriation Bill (No. 3) as the net funding change is positive w ith $19.7m.

2018-19

Available

$'000

2019-20

Budget

Estimate

$'000

2019-20

Revised

Estimate

$'000

Increase in

Estimates

$'000

Decrease in

Estimates

$'000

Non-operating

Equity injections [1] 130,636 173,240 176,836 3,596 -

Total non-operating 130,636 173,240 176,836 3,596 -

Note

1. Additional equity injection is provided in Appropriation Bill (No. 4) as the net funding change is positive w ith $3.6m.


117

1.3 BUDGET MEASURES

2019–20 Budget Measures and Other Budget Adjustments

Table 73: Variation to ASD Funding

2019-20

$m

2020-21

$m

2021-22

$m

2022-23

$m

Departmental Budget Measures

Expenditure Measures

2019 Election Commitments [1]- 5.3 10.5 -

Cyber Security Package 10.9 26.7 33.1 34.3

Counter Foreign Interference Taskforce[2]nfp nfp nfp nfp

Total Departmental Budget Measures 10.9 32.0 43.6 34.3

Other Budget Adjustments

Foreign Exchange 6.3 6.2 4.5 2.5

Other Budget Adjustments [3]nfp nfp nfp nfp

Transfer of Projects from Defence 4.0 - - -

Total Other Departmental Budget

Adjustments 10.3 6.2 4.5 2.5

Variation to ASD Departmental Funding 21.2 38.2 48.1 36.8

Notes

2. The expenditure for this budget measure is not for publication (nfp) due to national security reasons.

3. The expenditure for this budget adjustment is not for publication (nfp) due to national security reasons.

1. Measure relates to a commitment identif ied under Appendix B included w ith the 2019 PEFO economic

statement.


118

Section 2: ASD Revisions to Outcomes and Planned Performance

2.1 OUTCOME AND PERFORMANCE INFORMATION

Outcome 1: Defend Australia from global threats and advance our national interests through the provision of foreign signals intelligence, cyber security and offensive cyber operations, as directed by Government.

Outcome 1 Strategy

No changes have been made to this outcome strategy since the PBS 2019–20.

Outcome 1 Expense Statement

Table 74: Budgeted Expenses for Outcome 1

2018-19

Actual

Expenses

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

Program 1.1 - Foreign Signals Intelligence, Cyber Security and Offensive Cyber Operations

Departmental expenses 779,475 852,975 891,903 934,450 901,828

Departmental total 779,475 852,975 891,903 934,450 901,828

Total expenses for Program 1.1 779,475 852,975 891,903 934,450 901,828

2018-19 2019-20

Average Staffing Level (number) 1,730 2,060


119


Program 1.1: Foreign Signals Intelligence, Cyber Security and Offensive Cyber Operations



120

Section 3: ASD Explanatory Tables and Budgeted Financial Statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of entity finances for the 2019-20 budget year, including the impact of budget measures and resourcing on financial statements.


Table 75: Third Party Payments to and from Other Agencies[1]

Budget

Estimate

2019-20

$'000

Revised

Estimate

2019-20

$'000

Variation

$'000

Payments made to Department of Defence for provision of services (Departmental) 89,276 89,276 -

Note

1. Third party payments to and from other Agencies include:

- Inter-agency transactions in excess of $20m per annum;

- Inter-agency transactions that w ere in excess of $20m in the previous year's annual statements; and

- Inter-agency transactions relating to Budget Measures as disclosed in Defence Budget Measures.


121


3.2.1 Budgeted Financial Statements

Table 76: Comprehensive Income Statement (showing net cost of services) for the period ended 30 June

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

EXPENSES

Employee benefits 240,419 271,229 282,827 297,361 306,531

Supplier expenses 475,871 496,748 524,076 552,093 510,295

Grants - - - - -

Depreciation and amortisation 60,027 84,998 85,000 84,996 85,002

Finance costs - - - - -

Write-dow n of assets and impairment of assets 2,997 - - - -

Foreign exchange losses 161 - - - -

Losses from sale of assets - - - - -

Other - - - - -

Total expenses 779,475 852,975 891,903 934,450 901,828

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sales of goods and rendering of services 4,347 4,073 2,853 2,922 2,998

Rental revenue - 3 4 2 2

Other 168 - - - -

Total own-source revenue 4,515 4,076 2,857 2,924 3,000

Gains


Reversals of previous asset w rite-dow ns - - - - -

Sale of assets - - - - -

Other gains 115 - - - -

Total gains - - - - -

Total own-source income 4,630 4,076 2,857 2,924 3,000

Net cost of (contribution by) services -774,845 -848,899 -889,046 -931,526 -898,828

Revenue from Government 743,530 763,900 804,045 846,530 813,816

Surplus (Deficit) attributable to the Australian

Government -31,315 -84,999 -85,001 -84,996 -85,012

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification

to net cost of services

Changes in asset revaluation reserves 11,302 - - - -

Total other comprehensive income/(loss) -31,315 -84,999 -85,001 -84,996 -85,012

Total comprehensive income attributable to the

Australian Government -20,013 -84,999 -85,001 -84,996 -85,012


122

Table 77: Budgeted Departmental Balance Sheet (as at 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000

ASSETS

Financial assets

Cash and cash equivalents -2,245 -341 1,975 3,217 510




Land and Building 42,033 42,030 42,029 42,028 42,025

Property, plant and equipment 262,257 351,995 452,960 475,484 460,679

Intangibles 24,115 26,219 28,694 29,245 28,843

Other non-financial assets 108,092 108,092 108,092 108,092 108,092

Total non-financial assets 436,497 528,336 631,775 654,849 639,639

Assets held for sale - - - - -

Total assets 450,308 544,051 649,806 674,122 656,205

LIABILITIES

Payables

Suppliers 38,146 40,052 42,368 43,610 40,901

Other 10,389 10,389 10,389 10,389 10,389

Total payables 48,535 50,441 52,757 53,999 51,290


Leases - - - - -

Total interest bearing liabilities - - - - -

Provisions

Employee provisions 76,474 76,474 76,474 76,474 76,474

Other - - - - -

Total provisions 76,474 76,474 76,474 76,474 76,474

Total liabilities 125,009 126,915 129,231 130,473 127,764

NET ASSETS 325,299 417,136 520,575 543,649 528,441

EQUITY

Contributed equity 345,312 522,148 710,588 818,658 888,462

Reserves 11,302 11,302 11,302 11,302 11,302

Retained surplus (accumulated deficit) -31,315 -116,314 -201,315 -286,311 -371,323

Total equity 325,299 417,136 520,575 543,649 528,441


123

Table 78: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)

2018-19

Actual

Result

$'000

2019-20

Revised

Estimate

$'000

2020-21

Forward

Estimate

$'000

2021-22

Forward

Estimate

$'000

2022-23

Forward

Estimate

$'000


Cash received

Appropriations 737,884 763,900 804,045 846,530 813,827

Goods and services 3,023 4,076 2,857 2,924 3,000

Net GST received 12,287 46,130 49,026 50,578 47,193

Interest 1 - - - -

Other cash received 1,170 -5 -5 -5 -5

Cash transfer from the Official Public Account (receivables) - - - - -


Cash used

Employees 222,730 271,229 282,827 297,361 306,531

Suppliers 509,596 494,997 522,454 551,133 513,001

Net GST paid 14,571 46,130 49,026 50,578 47,193

Grants - - - - -

Other cash used 14 - - - -

Cash transfer to the Official Public Account (receivables) 1 - - - -

Total cash used 746,912 812,356 854,307 899,072 866,725

Net cash from (used by) operating activities 7,453 1,745 1,616 955 -2,710


Cash received

Proceeds from sales of property, plant and equipment - - - - -

Proceeds from sales of intangibles - - - - -

Other cash received - - - - -

Total cash received - - - - -

Cash used

Purchase of assets 140,335 176,677 187,740 107,783 69,790

Selling costs on sale of assets - - - - -

Finance costs - - - - -

Total cash used 140,335 176,677 187,740 107,783 69,790

Net cash from (used by) investing activities -140,335 -176,677 -187,740 -107,783 -69,790


Cash received

Appropriations - contributed equity 130,636 176,836 188,440 108,070 69,793


Cash used

Repayment of debt - - - - -

Cash to the Official Public Account - - - - -

Total cash used - - - - -

Net cash from (used by) financing activities 130,636 176,836 188,440 108,070 69,793

Net increase (decrease) in cash and cash equivalents held -2,246 1,904 2,316 1,242 -2,707

Cash and cash equivalents at the beginning of the reporting period - -2,245 -341 1,975 3,217

Effect of exchange rate movements on cash and cash equivalents at beginning

of the reporting period 1 - - - -

Cash and cash equivalents at the end of the reporting period -2,245 -341 1,975 3,217 510


124

Table 79: Departmental Statement of Changes in Equity – Summary of Movement (Budget Year 2019-20)

Retained

Earnings

$'000

Asset

Revaluation

Reserve

$'000

Other

Reserves

$'000

Contributed

Equity/

Capital

$'000

Total

Equity

$'000


Balance carried forw ard from previous period -31,315 11,302 - 345,312 325,299

Adjustment for changes in accounting policies - - - - -

Adjusted opening balance -31,315 11,302 - 345,312 325,299


Comprehensive income recognised directly in equity: - - - - -

Gain/loss on revaluation of property - - - - -

Subtotal comprehensive income - - - - -

Surplus (Deficit) for the period -84,999 - - - -84,999

Total comprehensive income recognised directly in

equity -84,999 - - - -84,999


Distribution to owners

Returns on capital:

Restructuring - - - - -

Other - - - - -


Appropriation (equity injection) - - - 176,836 176,836

Other - - - - -

Sub-total transaction with owners - - - 176,836 176,836

Transfers betw een equity components - - - - -

Estimated closing balance as at 30 June 2020 -116,314 11,302 - 522,148 417,136


125

Table 80: Statement of Asset Movements (2019-20)

Land and

Buildings

Property,

plant and

equipment

$'000

Intangibles

$'000

Other

$'000

Total

$'000

As at 1 July 2019

Gross book value 42,124 292,876 41,783 244 377,027

Accumulated depreciation/amortisation and impairment -91 -30,619 -17,668 - -48,378

Opening net book balance 42,033 262,257 24,115 244 328,649


Estimated expenditure on new or replacement assets

By purchase - appropriation equity - 179,153 -2,316 - 176,837

By transfer from another agency - - - - -

By purchase - donated funds - - - - -

By finance lease - - - - -

Total additions - 179,153 -2,316 - 176,837

Other movements

Assets held for sale - - - - -

Reclassif ications - - -

Depreciation and amortisation -3 -89,415 4,420 - -84,998

Disposal of entities or other operations (including restructuring) - - - - -

Other disposals - - - - -

Total other movements -3 -89,415 4,420 - -84,998

As at 30 June 2020

Gross book value 42,124 472,029 39,467 244 553,864

Accumulated depreciation/amortisation and impairment -94 -120,034 -13,248 - -133,376

Closing net book value 42,030 351,995 26,219 244 420,488


126

3.2.2 Notes to the Financial Statements

The financial statements have been prepared in accordance with the Australian Accounting Standards and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR).


127

DEFENCE HOUSING AUSTRALIA

Entity Resources and Planned Performance

Section 1: DHA Overview and Resources ....................................................................................... 129

1.1 Strategic Direction Statement .......................................................................................................... 129

1.2 DHA Resource Statement ................................................................................................................ 132

1.3 Budget Measures ............................................................................................................................... 133

Section 2: DHA Outcomes and Planned Performance ................................................................. 134

2.1 Outcome and Performance Information ......................................................................................... 134

Section 3: DHA Explanatory Tables and Budgeted Financial Statements .............................. 136

3.1 Explanatory Tables ............................................................................................................................ 136

3.2 Budgeted Financial Statements....................................................................................................... 137

Defence Portfolio Additional Estimates Statements 2019-20

128



129

DEFENCE HOUSING AUSTRALIA

Section 1: DHA Overview and Resources


The main function of Defence Housing Australia (DHA) is to provide housing and related services to members of the Australian Defence Force (ADF) and their families in response to Defence requirements. In fulfilling its role, DHA contributes to Defence retention, recruitment and operational goals.

DHA’s total housing portfolio primarily accommodates ADF Members with Dependents (MWD) and their families, but also includes off-base accommodation for ADF singles (Members with Dependants (Unaccompanied) [MWD(U)] and Members without Dependants [MWOD]).

DHA is responsible for managing the allocation of dwellings to ADF members and the resulting tenancies. DHA manages:

About 17,948 properties in all states and territories of Australia valued at about $11.2 billion;

The allocation of dwellings to ADF members (MWD, MWD(U) and MWOD);

Administering the payment of Defence-funded Rent Allowance (RA) to eligible ADF members renting through the private market; and

The online booking and allocation system for approximately 41,000 Defence-owned and maintained Living-in Accommodation beds across 52 Defence bases and establishments.

DHA utilises a large portfolio strategy to provide housing solutions in a sustainable and financially prudent way, balancing leasing, developments and acquisitions to reflect the cyclical nature of the property markets and changes in housing demand from Defence.

DHA is a Government Business Enterprise (GBE) operating under the provisions of Defence Housing Australia Act 1988 (DHA Act) and the Public Governance, Performance and Accountability Act 2013 (PGPA Act). It is required to maintain a strong balance sheet and to meet shareholder return obligations. DHA sits within the Defence portfolio and reports to the Minister for Defence Personnel and the Minister for Finance as joint Shareholder Ministers.

DHA is not directly funded from the Federal Budget. DHA is a full tax paying entity and contributes 60% of Net Profit after Tax as an annual dividend to the Australian Government. DHA helps to finance its activities by selling and leasing back dwellings through its property investment program and selling land and property that is surplus to its requirements.


130

DHA Organisational Structure

The composition of DHA’s Board of Directors and associated committees is detailed below. As at 31 December 2019, the DHA Board members were:

Chairman Hon J.A.L. (Sandy) Macdonald

Managing Director Mr Barry Jackson

Commercial Director Hon Alan Ferguson

Commercial Director Mr Robert Fisher AM

Commercial Director Ms Andrea Galloway

Commercial Director Mr Ewen Jones

Nominee Secretary of Defence Mr Martin Brady AO

Nominee Chief of Defence Force BRIG Leigh Wilton AM

Nominee Secretary of Finance Mr Simon Lewis AO, PSM

The DHA Board also has the following subcommittees: Board Audit Committee,

Board Investment Committee and Board Nomination and Remuneration Committee.

DHA also has an Advisory Committee in accordance with the DHA Act that had the following

members as at 31 December 2019:

Chairperson BRIG Leigh Wilton AM

Convenor of Defence Families of Australia Ms Maree Sirois

Appointee of Chief of Navy RADM Mark Hammond AM (Deputy Chief of Navy)

Appointee of Chief of Army MAJGEN Anthony Rawlins DSC, AM (Deputy Chief of Army)

Appointee of Chief of Air Force AVM Stephen Meredith AM, DSM (Deputy Chief of Air Force)

Appointee of Defence Housing Australia Mr Barry Jackson (Managing Director)


131

The chart below shows DHA’s Senior Executive.

Figure 4: DHA Organisational Structure (as at 31 December 2019)


132

1.2 DHA RESOURCE STATEMENT

Table 81: DHA Resource Statement – Additional Estimates for 2019-20 as at Additional Estimates February 2020[1]

Estimate

as at

Budget

2019-20

$'000

Proposed

Additional

Estimates

2019-20

$'000

Total

estimate at

Additional

Estimates

2019-20

$'000

Opening balance/cash reserves at 1 July 98,036 114,888 212,924

Funds from Government

Amounts received from related entities

Amounts from portfolio department 560,287 52,987 613,274

Amounts from other entities - - -

Total amounts received from related entities 560,287 52,987 613,274

Total funds from Government 560,287 52,987 613,274

Funds from other sources

Interest 3,772 221 3,993

Sale of goods and services 674,637 (222,076) 452,561

Total funds from other sources 678,409 (221,855) 456,554

Total net resourcing for Entity 1,238,696 (168,868) 1,069,828

Actual

2018-19 2019-20

Average staffing level (number) 629 643

Note

1. DHA is not directly appropriated. Appropriations are made to Department of Defence w hich are then

paid to DHA and are considered "departmental" for all purposes.


133

1.3 BUDGET MEASURES

There are no budget measures relating to DHA for the 2019-20 Additional Estimates.


134

Section 2: DHA Revisions to Outcomes and Planned Performance

2.1 OUTCOME AND PERFORMANCE INFORMATION

Outcome 1: To contribute to Defence outcomes by providing total housing services that meet Defence Operational and client needs through a strong customer and business focus

Outcome 1 Strategy

No changes have been made to this outcome strategy since the PBS 2019-20.

Outcome Expense Statement

Table 82: Budgeted Expenses for Outcome 1

2018-19

Actual

expenses

$'000

2019-20

Revised

estimated

expenses

$'000

2020-21

Forw ard

estimate

$'000

2021-22

Forw ard

estimate

$'000

2022-23

Forw ard

estimate

$'000

Program 1.1: (Other Departmental - DHA)

Revenue from Government

Payment from related entities 573,212 616,670 596,952 603,860 606,466

Revenues from other independent sources 352,435 268,452 143,803 197,588 213,719

Total expenses for Program 1.1 925,647 885,122 740,755 801,448 820,185

2018-19 2019-20

Average staffing level (number) 629 643


135


Program 1.1: The provision of Defence housing and housing related services

Program 1.1 Objectives

Include:

Provide quality housing and related services; and

Provide value to shareholders.

Delivery Deliver housing provisioning schedule outcomes in line with Defence requirements.

Sustainably optimise revenue and profit.

Performance information

Year Performance criteria Targets Actuals

2018-19 Houses supplied against provisioning schedule

Members satisfied with their service residence

Return on equity

> 99%

> 80%

2.4%

> 97.4%

> 89%

2.4%

2019-20 Houses supplied against provisioning schedule


Return on equity

> 99%

> 80%

1.1% Expected to be met

2020-21 and beyond

Houses supplied against provisioning schedule


Return on equity

> 99%

> 80%

3.3%


136

Section 3: DHA Explanatory Tables and Budgeted Financial Statements

DHA advises no significant changes to targets published in the PBS 2019-20.


Not applicable to DHA.


137


3.2.1 Budgeted Financial Statements

Table 83: Comprehensive Income Statement (showing net cost of services) for the period ended 30 June[1][2]

2018-19

Actual

$'000

2019-20

Revised

budget

$'000

2020-21

Forw ard

estimate

$'000

2021-22

Forw ard

estimate

$'000

2022-23

Forw ard

estimate

$'000

INCOME

Revenue

Sale of goods and rendering of services 922,003 881,154 737,607 798,310 815,295

Interest 3,644 3,968 3,148 3,138 4,890

Total revenue 925,647 885,122 740,755 801,448 820,185

Total income 925,647 885,122 740,755 801,448 820,185

EXPENSES

Employee benefits 68,709 68,476 70,014 71,498 73,124

Suppliers 750,733 403,449 301,422 336,776 327,639

Depreciation and amortisation 24,706 295,109 290,351 286,688 286,560

Finance costs 24,506 52,753 50,094 48,961 47,515

Write-dow n and impairment of assets 10,028 10,254 9,002 6,827 4,675

Losses from asset sales 1,547 658 1,301 370 602

Total expenses 880,229 830,699 722,184 751,120 740,115

Profit (Loss) before income tax 45,418 54,423 18,571 50,328 80,070

Income tax expense 15,475 14,987 8,076 13,014 22,519

Net profit/(loss) 29,943 39,436 10,495 37,314 57,551

Profit/(loss) attributable to the

Australian Government 29,943 39,436 10,495 37,314 57,551

Total comprehensive income

attributable to the Australian

Government 29,943 39,436 10,495 37,314 57,551

Notes

1. Prepared on Australian Accounting Standards basis.

Rules.

2. The data in this table is based on DHA's 2019-20 Corporate Plan w hich is w ith our Shareholder

Ministers for approval. The Corporate Plan is prepared on a cost basis, w hilst the Additional

Estimates submission has been prepared on a fair value basis, in line w ith the PGPA Act Financial Reporting


138

Table 84: Budgeted Departmental Balance Sheet (as at 30 June)[1][2][3]

2018-19

Actual

$'000

2019-20

Revised

budget

$'000

2020-21

Forw ard

estimate

$'000

2021-22

Forw ard

estimate

$'000

2022-23

Forw ard

estimate

$'000

ASSETS

Financial assets



Investments accounted for under the equity method 7 7 7 7 7

Other investments - - - - -

Other f inancial assets 5,395 4,690 4,494 4,569 4,668



Land and buildings 2,065,991 3,662,994 3,614,588 3,664,850 3,729,433

Property, plant and equipment 6,245 7,324 5,653 9,647 8,602

Intangibles 4,526 6,416 9,164 11,619 13,552

Inventories 978,557 907,210 864,711 728,265 575,853

Tax assets 28,314 69,709 69,748 69,194 67,728

Other non-financial assets 29,854 5,872 5,990 6,110 6,232

Total non-financial assets 3,113,487 4,659,525 4,569,854 4,489,685 4,401,400

Assets held for sale 2,175 1,918 1,918 1,918 1,918

Total assets 3,342,815 4,950,641 4,920,429 4,996,844 5,118,484

LIABILITIES

Payables

Suppliers 60,713 10,267 10,524 10,787 11,057

Dividends 24,545 17,367 15,337 20,079 34,743

Other payables 23,953 52,519 49,948 54,264 65,108

Total payables 109,211 80,153 75,809 85,130 110,908


Loans 509,580 509,580 509,580 509,580 509,580

Leases - 1,699,421 1,628,506 1,624,306 1,641,730

Total interest bearing liabilities 509,580 2,209,001 2,138,086 2,133,886 2,151,310

Provisions

Employee provisions 16,629 22,871 23,448 24,038 24,644

Other provisions 111,799 100,156 95,338 91,140 87,419

Total provisions 128,428 123,027 118,786 115,178 112,063

Total liabilities 747,219 2,412,181 2,332,681 2,334,194 2,374,281

Net assets 2,595,596 2,538,460 2,587,748 2,662,650 2,744,203

EQUITY

Parent entity interest

Contributed equity 396,148 396,148 396,148 396,148 396,148

Reserves 2,146,317 2,202,519 2,259,527 2,317,194 2,375,939

Retained surplus / (accumulated

deficit)53,131 (60,207) (67,927) (50,692) (27,884)

Total parent entity interest 2,595,596 2,538,460 2,587,748 2,662,650 2,744,203

Total non-controlling interest - - - - -

Total Equity 2,595,596 2,538,460 2,587,748 2,662,650 2,744,203

Notes


2. Equity is the residual interest in assets after the deduction of liabilities.

3. The data in this table is based on DHA's 2019-20 Corporate Plan w hich is w ith our Shareholder Ministers for

approval. The Corporate Plan is prepared on a cost basis, w hilst the Additional Estimates submission has been

prepared on a fair value basis, in line w ith the PGPA Act Financial Reporting Rules.


139

Table 85: Budgeted Departmental Statement of Cash Flows (for the period ended 30 June)[1][2]

2018-19

Actual

$'000

2019-20

Revised

budget

$'000

2020-21

Forw ard

estimate

$'000

2021-22

Forw ard

estimate

$'000

2022-23

Forw ard

estimate

$'000


Cash received

Sale of goods and rendering of services 1,007,756 1,039,070 918,639 959,572 1,002,960

Interest 5,745 3,993 3,163 3,133 4,882

Other 53,653 26,765 1,352 1,016 1,012

Total cash received 1,067,154 1,069,828 923,154 963,721 1,008,854

Cash used

Employees 89,462 62,234 69,437 70,908 72,518

Suppliers 793,852 496,922 437,040 370,203 341,040

Borrow ing costs 24,506 20,883 19,305 17,703 15,907

Other 89,577 88,375 42,564 40,519 42,962

Total cash used 997,397 668,414 568,346 499,333 472,427

Net cash from / (used by)

operating activities 69,757 401,414 354,808 464,388 536,427


Cash received

Proceeds from sales of property,

plant and equipment21,053 22,707 48,402 14,790 24,070


Cash used

Purchase of property, plant, and

equipment and intangibles39,761 59,126 42,823 48,585 43,590

Total cash used 39,761 59,126 42,823 48,585 43,590

Net cash from / (used by)

investing activities (18,708) (36,419) 5,579 (33,795) (19,520)


Cash received

Other - - - - -

Total cash received - - - - -

Cash used

Dividends paid 26,555 24,545 20,245 15,337 20,079

Principal payments on lease liability - 281,857 279,919 277,015 278,441

Total cash used 26,555 306,402 300,164 292,352 298,520

Net cash from/(used by)

financing activities (26,555) (306,402) (300,164) (292,352) (298,520)

Net increase/(decrease) in cash

held 24,494 58,593 60,223 138,241 218,387

Cash and cash equivalents at the

beginning of the reporting period188,430 212,924 271,517 331,740 469,981

Cash and cash equivalents at

the end of the reporting period 212,924 271,517 331,740 469,981 688,368

Notes


Financial Reporting Rules.

Estimates submission has been prepared on a fair value basis, in line w ith the PGPA Act




140

Table 86: Departmental Statement of Changes in Equity – Summary of Movement (Budget Year 2019-20)[1][2]

Retained

earnings

$'000

Asset

revaluation

reserve

$'000

Other

reserves

$'000

Contributed

equity /

capital

$'000

Total

equity

$'000


Balance carried forw ard from

previous period53,131 2,146,317 - 396,148 2,595,596

Adjustment for changes in

accounting policies(135,407) - - - (135,407)

Adjusted opening balance (82,276) 2,146,317 - 396,148 2,460,189


Surplus/(deficit) for the period 39,436 - - - 39,436

Total comprehensive income 39,436 - - - 39,436


Distributions to owners

Returns on capital:

Dividends (17,367) - - - (17,367)


Other - 56,202 - - 56,202

Sub-total transactions with

owners(17,367) 56,202 - - 38,835

Estimated closing balance as at

30 June 2020(60,207) 2,202,519 - 396,148 2,538,460

Closing balance attributable to

the Australian Government(60,207) 2,202,519 - 396,148 2,538,460

Notes


Estimates submission has been prepared on a fair value basis, in line w ith the PGPA Act Financial

Reporting Rules.




141

Table 87: Statement of Asset Movements (2019-20 Budget Year)[1][2]

Land

$'000

Buildings

$'000

Other

property,

plant and

equipment

$'000

Computer

softw are

and

intangibles

$'000

L&B,

IP&E held

for sale

$'000

Total

$'000

As at 1 July 2019

Gross book value 1,101,595 964,402 25,820 21,770 2,175 2,115,762

Gross book value - ROU - - - - - -

Accumulated depreciation/

amortisation and impairment - (6) (19,575) (17,244) - (36,825)

Accumulated depreciation/amorisation

and impairement - ROU - - - - - -

Opening net book balance 1,101,595 964,396 6,245 4,526 2,175 2,078,937


Estimated expenditure on new

or replacement assets

By purchase - other 24,539 23,170 1,097 4,494 - 53,300

By purchase - other - ROU - 1,805,751 2,278 - - 1,808,029

Total additions 24,539 1,828,921 3,375 4,494 - 1,861,329

Other movements

Assets held for sale or in a disposal

group held for sale (11,225) (11,225) - - 22,450 -

ROU held for sale or in a

disposal group held for sale - - - - - -

Revaluation 16,524 14,466 - - - 30,990

Revaluation - ROU - 10,000 - - - 10,000

Depreciation/amortisation expense - - (1,537) (2,604) - (4,141)

Depreciation/amortisation on

ROU - (274,997) (759) - - (275,756)

Disposals - (22,707) (22,707)

Total other movements 5,299 (261,756) (2,296) (2,604) (257) (261,614)

As at 30 June 2020

Gross book value 1,131,433 990,813 26,917 26,264 1,918 2,177,345

Gross book value - ROU - 1,815,751 2,278 - - 1,818,029

Accumulated depreciation/

amortisation and impairment - (6) (21,112) (19,848) - (40,966)

Accumulated depreciation/amortisation

and impairment - ROU - (274,997) (759) - - (275,756)

Closing net book balance 1,131,433 2,531,561 7,324 6,416 1,918 3,678,652


2. The data in this table is based on DHA's 2019-20 Corporate Plan w hich is w ith our Shareholder Ministers for approval.

The Corporate Plan is prepared on a cost basis, w hilst the Additional Estimates submission has been prepared on a

fair value basis, in line w ith the PGPA Act Financial Reporting Rules.

Notes


142

GLOSSARY

Accumulated

depreciation

The aggregate depreciation recorded for a particular depreciating asset.

Additional

estimates

Where amounts appropriated at Budget time are required to change, Parliament

may make adjustments to portfolios through the Additional Estimates Acts.

Administered

appropriation

Revenue, expenses, assets and liabilities administered by an agency for the

Commonwealth (such as taxes, benefits payments and public debt) that are not

concerned with running the agency or its commercial activities.

Administered items Expenses, revenues, assets or liabilities managed by agencies on behalf of the

Commonwealth. Agencies do not control administered items. Administered

expenses include grants, subsidies and benefits. In many cases, administered

expenses fund the delivery of third party outputs.

Agency Assets, liabilities, revenues and expenses that are controlled by Defence or a

subsidiary. Includes officials allocated to the organisation.

Amortisation A term used interchangeably with depreciation, except that it applies to a non-

current physical asset under finance lease, or a non-current intangible asset,

over its limited useful life.

Appropriation An authorisation by Parliament to spend money from the Consolidated Revenue

Fund (the principal working fund of the Commonwealth) for a particular purpose.

Annual

appropriation

Two Appropriation Bills are introduced into Parliament in May and comprise the

Budget for the financial year beginning 1 July. Further Bills are introduced later in

the financial year as part of the Additional Estimates.

Assets Future economic benefits controlled by Defence as a result of past transactions

or other past events. Assets are initially recognised at the cost of acquisition.

Non-financial assets are subject to ongoing revaluation assessment.

Assets under

construction

Assets under construction by Defence for Defence, or for the use of another

entity according to a construction contract where Defence controls the asset until

completion, or assets under construction or otherwise being made ready by

another entity for use by Defence.

Australian

Accounting

Standards

Specify techniques of accounting practice and the method of presenting financial

information about a reporting entity.

Average funded

strength

A budgetary measure used to count the average number of Australian Defence

Force (ADF) members paid on a full-time equivalent basis during a financial year.

Capability The combination of military equipment, personnel, logistics support, training,

resources, etc. that provides Defence with the ability to achieve its operational

aims.

Capability Manager A Capability Manager is responsible for raising, training and sustaining in-service

capabilities through the coordination of fundamental inputs to capability.

Capability Managers include the Service Chiefs, the Chief of Joint Operations

and the Chief Information Officer.

Capital budget All proposed capital expenditure funded by appropriation for outcomes, by equity

injections or loans and/or appropriations for administered capital, or by other

sources.

Capital expenditure Expenditure by an agency on capital projects, for example purchasing a building.

Coalition Countries including Australia who provide troops, logistical support or assistance

in Military Operations, peacekeeping or reconstruction efforts.

Glossary

143

Combined exercise

or operation

An exercise or operation activity involving one or more Services of the ADF with

the forces of other countries.

Consolidated

Revenue Fund

Section 81 of the Constitution stipulates that all revenue raised or money

received by the Commonwealth forms the one consolidated revenue fund. The

fund is not a bank account. The Official Public Account reflects most of the

operations of the fund.

Corporate

governance

The process by which agencies are directed and controlled. It is generally

understood to encompass authority, accountability, stewardship, leadership,

direction and control.

Defence

information

environment

Encompasses all of Defence’s computing and communication capabilities at all

classification levels. It supports all Defence warfighting functions, including

overseas deployed elements and connection to Coalition networks, as well as the

day-to-day management functions.

Defence

Management and

Finance Plan

The Defence Management and Finance Plan provide Ministers and central

agencies with a clear oversight of Defence planning and financing strategies. It

describes the strategies agreed through the 2000 Defence White Paper and

subsequent Strategic Review papers. As a compendium of information attached

to Defence’s annual Portfolio Budget Submission, it is intended to help Ministers

make informed strategic and budgetary decisions on Defence, by bringing into

one document the expected financial position of the portfolio taking into account

existing commitments and proposed new investments. The Plan also provides

the Government with the information necessary to ensure that its investment in

Defence is both affordable and sustainable.

Departmental items Assets, liabilities, revenues and expenses that are controlled by the agency in

providing its outputs. Departmental items would generally include computers,

plant and equipment assets used by agencies in providing goods and services

and most employee expenses, supplier costs and other administrative expenses

incurred.

Depreciation Apportionment of an asset’s capital value as an expense over its estimated

useful life to take account of normal usage, obsolescence, or the passage of

time.

Discretionary

grants

Payments where the portfolio Minister and paying agency have discretion in

determining whether or not a particular applicant should receive funding and may

or may not impose conditions in return for the grant. There is a central

discretionary grants register.

Employee Any Australian Public Service officer of Defence or serving Defence Force

member who receives a salary or wage, along with other benefits, for the

provision of services whether on a full-time, part-time, permanent, casual or

temporary basis.

Employee

expenses

Include, but are not limited to, benefits provided to employees in the form of

salaries and wages, performance pay, senior officers’ allowances, leave, and

superannuation, but does not include amounts paid or owed to employees as

reimbursement of out-of-pocket expenses.

Equity injection An additional contribution, over and above the cost of outputs. Equity injections

form part of the Commonwealth’s investment in Defence.

Expense Total value of all of the resources consumed in producing goods and services or

the loss of future economic benefits in the form of reductions in assets or

increases in liabilities of an entity.

Fair value The amount for which an asset could be exchanged, or a liability settled,

between knowledgeable and willing parties in an arm’s length transaction. The

fair value can be affected by the conditions of the sale, market conditions and the

intentions of the asset holder.


144

Force element A component of a unit, a unit or an association of units having common prime

objectives and activities.

Force element

group

A grouping of force elements with an appropriate command and control structure

for a specified role or roles (e.g. the Navy Submarine Group).

Forward estimates The level of proposed expenditure for future years, based on relevant

demographic, economic and other future forecasting assumptions. The

Government required forward estimates for the following three financial years to

be published in each annual Federal Budget paper.

Garrison Support

Services

Includes a range of base support services such as ground maintenance,

hospitality, training area management, base security, transport, air support and

firefighting, and rescue services.

Group A high-level organisational grouping of functions and activities used by the

Defence Executive as its primary management grouping (e.g. the Strategic Policy

& Intelligence Group).

Infrastructure Items owned, leased or otherwise under the control of Defence in support of

activities on land and within buildings. Infrastructure includes items such as

runways, roads, car parks, parade grounds, ovals, lighting, water, sewerage and

other general service related items. It does not include land upon which, or within

which, it is constructed or those fixed items integral to, and under, buildings.

Integrated

Investment

Program

The Integrated Investment Program is a costed, detailed development plan for

the Australian Defence capabilities to be delivered through implementation of the

Defence White Paper. The program is reviewed regularly to take account of

changing strategic circumstances, new technologies and changed priorities, in

the context of the overall Defence budget.

Interoperability The ability of systems, units or forces to provide the services to, and accept

services from, other systems, units or forces and to use the services so

exchanged to enable them to operate effectively together.

Inventory Inventory is comprised of consumable stores and supplies, fuel and explosive

ordnance used in the delivery of Defence services. These are items which are

consumed in normal use, lose their identity during periods of use by incorporation

into, or attachment upon, another assembly, as a result of wear and tear, cannot

be reconditioned because their design does not make it possible or their specific

values do not justify it.

Joint exercise or

operation

An exercise or operation involving two or more Services of the ADF.

Liabilities Sacrifices of future economic benefits that Defence is presently obliged to make

to other entities as a result of past transactions or other past events.

Listed entity An entity established by regulation under the Public Governance, Performance

and Accountability Act 2013. The Act provides financial management authority to,

and requires accountability by the Chief Executive of an agency. This used to be

called ‘Prescribed agency’ under the former Financial Management and

Accountability Act 1997.

Materiel Acquisition

Agreements

Materiel Acquisition Agreements cover the Capability Acquisition and

Sustainment Group’s (formerly known as Defence Materiel Organisation)

acquisition services to Defence for both major and minor capital equipment.

Materiel

Sustainment

Agreements

Materiel Sustainment Agreements are between the Capability Managers and the

Chief Executive Officer of the Capability Acquisition and Sustainment Group.

These agreements cover the sustainment of current capability, including good

and services such as repairs, maintenance, fuel and explosive ordnance.

Glossary

145

Military response

options

A set of generic tasks that describe the range of military options the Government

could consider as a basis for a response to a particular situation or contingency.

Net assets See Equity.

Operating result Equals revenue less expense.

Operational tempo The rate at which the ADF is able to deliver its operations effects, for example,

the rate at which forces are dispatched and the time in which they are turned

around for their next task. At the local level, this might translate to the crew of an

aircraft spending a very small amount of time on the ground before it is re-tasked

for its next mission. At the organisational level, this translates to available fighting

forces spending very little time at home before they are deployed again for their

next operation.

Outcomes The results that the Government seeks from Defence, and are achieved by the

successful delivery of its outputs, to the standards set in the Portfolio Budget

Statements. For more information, see Defence’s Section 2 - Planned Outcome

Performance.

Permanent forces The permanent Navy, the regular Army and the permanent Air Force.

Platforms Refers to air, land, surface or sub-surface assets that are discrete and taskable

elements within the ADF.

Portfolio Additional

Estimates

Statements

Similar to the portfolio budget statement and prepared at Additional Estimates

time to support and update on the Government’s original annual budget for

Defence.

Portfolio Budget

Statements

The document presented by the Minister for Defence to Parliament to inform

Senators and Members of the basis for the Defence budget appropriations in

support of the provisions in Appropriations Bills 1 and 2. The statements

summarise the Defence budget and provides detail of outcome performance

forecasts and resources in order to justify expenditure for Defence.

Price One of the three key efficiency indicators. The amount the government or the

community pays for the delivery of agreed outputs.

Public Governance,

Performance and

Accountability Act

2013

The Public Governance, Performance and Accountability Act 2013 replaced the

Financial Management and Accountability Act 1997 and the Commonwealth

Authorities and Companies Act 1997.

Purchaser-provider

arrangements

Arrangements under which the outputs of one agency are purchased by another

agency to contribute to outcomes. Purchaser-provider arrangements can occur

between Commonwealth agencies and state/territory government or private

sector bodies.

Quality One of the three key efficiency indicators. Relates to the characteristics by which

customers or stakeholders judge an organisation, product or service.

Assessment of quality involves use of information gathered from interested

parties to identify differences between user's expectations and experiences.

Quantity One of the three key efficiency indicators. Examples include: the size of an

output; count or volume measures; how many or how much.

Readiness The readiness of forces to be committed to operations within a specified time,

dependent on the availability and proficiency of personnel, equipment, facilities

and consumables.

Reserves The Naval Reserve, the Army Reserve and the Air Force Reserve.


146

Revenues Inflows or other enhancements, or savings in outflows, of future economic

benefits in the form of increases in assets or reductions in liabilities of Defence,

other than those relating to contributions by the Commonwealth, that result in an

increase in equity during the reporting period.

Risk management At the highest level, involves the identification and mitigation of those risks that

have the potential to adversely affect the achievement of agreed output

performance at the agreed output price.

Service

Category 2

Reserve members who do not render service, although retain a liability to be

‘called out’ in specific circumstances, should this be required.

Service

Category 3

Reserve members who are available for voluntary service, or are rendering

service. This category applies to Reservists who provide service to undertake a

specified tasking, normally for short tenures and generally within a financial year.

Service

Category 4

Reserve members who are available for voluntary service at short notice. This

service category replaces the High Readiness Reserve.

Service

Category 5

Reservists who are providing voluntary service characterised by stability in terms

of a specific pattern of service and the number of days to be served.

Service Categories

7 and 6

Permanent Australian Defence Force personnel with Service Category 6 being a

permanent part time service option.

Service Options Group members who provide capabilities where differentiated service

arrangements or conditions of service are required. For example, a Reservist

undertaking continuous full time service under the Total Workforce Model now

has their service in Service Category 3, 4 or 5 ‘modified’ by Service Option C

(rendering continuous full time service) and personnel undertaking the Australian

Defence Force Gap Year program would have their service classified by Service

Option G.

Special account Balances existing within the Consolidated Revenue Fund that are supported by

standing appropriations (Public Governance, Performance and Accountability Act

2013, ss.78 and 80). Special accounts allow money in the Consolidated Revenue

Fund to be acknowledged as set-aside (hypothecated) for a particular purpose.

Amounts credited to a Special Account may only be spent for the purposes of the

Special Account. Special Accounts can only be established by a written

determination of the Finance Minister (s.78 of the Public Governance,

Performance and Accountability Act 2013) or through an Act of Parliament

(referred to in s.80 of the Public Governance, Performance and Accountability

Act 2013).

Special

Appropriations

(including Standing

Appropriations)

An amount of money appropriated by a particular Act of Parliament for a specific

purpose and number of years. For special appropriations the authority to

withdraw funds from the Consolidated Revenue Fund does not generally cease

at the end of the financial year.

Standing appropriations are a sub-category consisting of ongoing special

appropriations — the amount appropriated will depend on circumstances

specified in the legislation.

Specialist military

equipment

Items of a specific military nature and that are not available through the normal

external market in their current form to other than government military

purchasers. It includes the prime military equipment plus the direct support items

associated with the equipment.

System Program

Office

The office of the Program Manager. It serves as the single point of contact with

industry, government agencies, and other activities participating in the acquisition

process of a given system.

Glossary

147

Theatre The area in which military operations and activities take place.

Two-pass approval

process

The process by which major capital investment proposals are developed for

consideration and approval by the Government.

Unit Availability

Days

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 unit’s normal operating environment, immediately.

Weighted average

cost

An inventory valuation method which considers the fluctuating prices and

quantities of acquired goods in computing of the cost of inventory. The weighted

average method takes the prices of units at the beginning inventory and the

varying prices of purchases made and are weighted by the number of units to

determine the weighted average cost per unit. It may be computed as the

weighted average cost of all available goods present in a given period, or as a

weighted moving average cost adjusted when new goods are delivered.

Write-downs The reduction in the value of assets.


148

ACRONYMS

A

AACAP Army Aboriginal Community Assistance Program

ACPB Armidale Class Patrol Boats

ADF Australian Defence Force

ADO Australian Defence Organisation

AEWC Airborne Early Warning and Control System

AHO Australian Hydrographic Office

AHP Australian Hydrographic Publication

AM Member of the Order of Australia

AMCAP ANZAC Midlife Capability Assurance Program

AO Officer of the Order of Australia

AO Amphibious and Afloat Support – Oil Tanker

APS Australian Public Service

ARH Armed Reconnaissance Helicopters

ASD Australian Signals Directorate

ASMTI Australia-Singapore Military Training Initiative

ATC Air Traffic Control

AUSMURI Australia-US Multidisciplinary University Research Initiative

AVM Air Vice Marshal

B

BMS Battlefield Management Systems

C

CAF Chief of Air Force

CBRND Chemical Biological Radiological Nuclear Defence

CCPB Cape Class Patrol Boat

CCSM Collins Class Submarine

CDF Chief of the Defence Force

CER Combat Engineer Regiment

CIRP Critical Infrastructure Recovery Project

CMATS Civil Military Air Traffic System

CSC Conspicuous Service Cross

CSC Commonwealth Superannuation Corporation

Acronyms

149

D

DCRC Defence Cooperative Research Centre

DDG Hobart Class Air Warfare Destroyers

DFRB Defence Force Retirement Benefits

DFRDB Defence Force Retirement and Death Benefits Scheme

DFSS Defence Force School of Signals

DGST Deployable Geospatial Support

DHA Defence Housing Australia

DITC Defence International Training Centre

DSC Distinguished Service Cross

DSTG Defence Science and Technology Group

DVA Department of Veterans’ Affairs

E

EDLAN Enhanced Deployable Local Area Network

ELF Enhanced Land Force

EW Electronic Warfare

F

FFG Fast Frigate Guided / Guided Missile Frigate – Adelaide Class Frigate

FFH Fast Frigate Helicopter / Helicopter Capable Frigate - Anzac Class Frigate

FMC Flight Management Computer

FMS Foreign Military Sales

FNACS Future Naval Aviation Combat System

FORGEN Force Generation

FSFP Family Support Funding Program

FTE Full Time Equivalent

FVMT Field Vehicles, Modules and Trailers

G

GBE Government Business Enterprise

GTC Government and Transport Communications

H

HMAS Her Majesty's Australian Ship

HS Hydrographic Ships

HUD Head Up Display


150

I

ICRA International Conference on Robotics and Automation

ICT Information and Communications Technology

ISPE Industry Skilling Program Enhancement

ISTAREW Intelligence, Surveillance, Target Acquisition and Reconnaissance Electronic Warfare

J

JCG Joint Capability Group

JORN Jindalee Operational Radar Network

JP Joint Project

L

LADS Laser Airborne Depth Sounder Aircraft

LHD Landing Helicopter/Heavy Dock

LSD Landing Ship Dock

M

MAJGEN Major General

METOC Mobile Meteorological and Oceanographic

MCIS Maritime Communications and Information Systems

MHC Mine Hunter Coastal – Coastal Mine Hunter

MHC Medium Heavy Capability

MISRR Maritime Intelligence Surveillance Reconnaissance and Response

MP Member of Parliament

MRH Multi-Role Helicopter

MRF Maritime Rotational Force

MRTT Multi-Role Tanker Transport

MSBS Military Superannuation and Benefits Scheme

MTTES Mobile Threat Training Emitter System

MURI Multidisciplinary University Research Initiative

MVO Member of the Royal Victorian Order

MWD Members with Dependants

MWOD Members without Dependants

MWD(U) Members with Dependants (Unaccompanied)

MYEFO Mid-Year Economic and Fiscal Outlook

Acronyms

151

N

NACC New Air Combat Capability

NIAA National Indigenous Australians Agency

NORFORCE North West Mobile Force

O

OPV Offshore Patrol Vessel

OTHR Over the Horizon Radar

P

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PEFO Pre-election Economic and Fiscal Outlook

PGPA Public Governance Performance and Accountability

PSM Public Service Medal

PWC Committee on Public Works

R

RAAF Royal Australian Air Force

RADM Rear Admiral

RAN Royal Australian Navy

ROE Rate of Effort – Flying Hours

ROU Right of Use

S

SATCOM Satellite Communications

SGS Satellite Ground Station

SME Specialist Military Equipment or School of Military Engineering

SML Survey Motor Launch

SPP School Pathways Program

SWBTA Shoalwater Bay Training Area

U

UAD Unit Availability Days

USFPI United States Force Posture Initiatives

portfolio additional estimates statements 2019-20 · 2020-02-13 · links to portfolio budget...

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