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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.
Defence Portfolio Additional Estimates Statements 2019–20
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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]
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Letter of Transmitttal
Defence Portfolio Additional Estimates Statements 2019–20
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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.
User Guide
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USER GUIDE TO THE
PORTFOLIO ADDITIONAL ESTIMATES STATEMENTS
Defence Portfolio Additional Estimates Statements 2019–20
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User Guide
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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.
Defence Portfolio Additional Estimates Statements 2019–20
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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
Defence Portfolio Additional Estimates Statements 2019–20
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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
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
GLOSSARY................................................................................................................................. 142
ACRONYMS ................................................................................................................................ 148
Portfolio Overview
3
PORTFOLIO OVERVIEW
Defence Portfolio Additional Estimates Statements 2019–20
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Portfolio Overview
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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).
Defence Portfolio Additional Estimates Statements 2019–20
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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
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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
Defence Portfolio Additional Estimates Statements 2019–20
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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.
Australian Signals Directorate
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.
Defence Housing Australia
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
Defence Housing Australia
Australian Signals Directorate
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.
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Department of Defence
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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
Defence Portfolio Additional Estimates Statements 2019–20
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Department of Defence
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Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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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
Department of Defence
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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.
Defence Portfolio Additional Estimates Statements 2019–20
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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.
Department of Defence
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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 -
Defence Portfolio Additional Estimates Statements 2019–20
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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
Department of Defence
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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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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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.
Defence Portfolio Additional Estimates Statements 2019–20
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
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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
Defence Portfolio Additional Estimates Statements 2019–20
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]
One Star and above 84 84
Senior Officers[2] 903 903
Officers 5,749 5,749
Other Ranks 24,085 24,085
Total Army 30,821 30,821
Air Force [1]
One Star and above 53 53
Senior Officers[2] 700 700
Officers 4,460 4,460
Other Ranks 9,280 9,280
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).
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 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.
Department of Defence
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
Defence Portfolio Additional Estimates Statements 2019–20
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
Department of Defence
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 - - - - - - -
Depreciation and amortisation - - - - - - -
Finance cost - - - - - - -
Write-dow n of assets and impairment of assets - 1,331 - -1,331 - - -
Net losses from sale of assets - - - - - - -
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 - - -
Other revenue - - - - - - -
Total revenue 26,158 27,537 27,557 20 - - -
Gains
Reversal of previous asset w rite-dow ns - - - - - - -
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
Total 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
Defence Portfolio Additional Estimates Statements 2019–20
32
Program 1.3: Defence Contribution to National Support Tasks in Australia
Performance information is as reported in the PBS 2019–20.
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 - - - - - - -
Depreciation and amortisation - - - - - - -
Finance cost - - 167 167 - - -
Write-dow n of assets and impairment of assets - - - - - - -
Net losses from sale of assets - - - - - - -
Other expenses - - - - - - -
Total expenses 61,775 59,297 137,670 78,373 - - -
Income
Revenues
Goods and services 54 - - - - - -
Other revenue - - - - - - -
Total revenue 54 - - - - - -
Gains
Reversal of previous asset w rite-dow ns - - - - - - -
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
Total gains - - - - - - -
Total income 54 - - - - - -
Program 1.3 Defence Contribution to National
Support Tasks in Australia 61,721 59,297 137,670 78,373 - - -
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 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
Departmental outputs 652,667 757,540 864,577 107,037 751,774 876,978 839,722
Program 2.2 Defence Executive Support
Revenues from other sources 30,930 31,845 31,847 2 32,643 33,459 35,339
Departmental outputs 304,809 261,976 278,220 16,244 271,652 277,868 231,665
Program 2.3 Defence Finance
Revenues from other sources 128,917 7,731 7,315 -416 7,466 7,588 7,715
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
Revenues from other sources 10,935 63,225 267,642 204,417 187,207 208,577 231,105
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
Revenues from other sources 24,483 34,375 97,784 63,409 101,141 120,167 130,679
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
Revenues from other sources 42,725 52,730 170,910 118,180 192,619 218,013 237,800
Departmental outputs 6,821,708 7,498,572 7,577,175 78,603 8,133,745 8,238,076 8,968,675
Program 2.8 Australian Defence Force Headquarters Command
Revenues from other sources 336 352 722 370 1,149 2,197 3,038
Departmental outputs 121,251 157,396 145,584 -11,812 184,484 210,727 212,645
Program 2.9 Capability Acquisition and Sustainment
Revenues from other sources 16,107 1,408 23,001 21,593 4,389 2,585 2,599
Departmental outputs 623,574 673,003 660,392 -12,611 714,599 748,731 789,823
Program 2.10 Estate and Infrastructure
Revenues from other sources 697,879 371,619 312,844 -58,775 360,170 382,429 393,754
Departmental outputs 4,550,457 4,894,228 4,949,479 55,251 4,757,535 5,010,619 5,479,168
Program 2.11 Chief Information Officer
Revenues from other sources 36,086 46,638 51,678 5,040 57,318 61,148 64,380
Departmental outputs 1,766,755 1,671,007 1,751,969 80,962 1,530,735 1,683,145 1,982,033
Program 2.12 Defence People
Revenues from other sources 2,171 4 6 2 6 6 6
Departmental outputs 505,525 531,873 508,794 -23,079 548,904 562,758 582,219
Program 2.13 Defence Science and Technology
Revenues from other sources 4,021 4,827 4,279 -548 5,682 6,389 6,749
Departmental outputs 485,233 468,282 509,405 41,123 499,825 499,961 551,561
Department of Defence
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
Defence Portfolio Additional Estimates Statements 2019–20
36
Contributions to Outcome 2
Program 2.1: Strategic Policy and Intelligence
Performance information is as reported in the PBS 2019–20 except for the following revisions.
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
2021-22 Forward Estimate
2022-23 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
Other expenses 53 - - - - - -
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 - - -
Other gains - - - - - - -
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.
Department of Defence
37
Program 2.2: Defence Executive Support
Performance information is as reported in the PBS 2019–20.
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
Finance cost - - - - - - -
Write-dow n of assets and impairment of assets 1,652 11 40 29 39 38 38
Net losses from sale of assets - - - - - - -
Other expenses - - - - - - -
Total expenses 335,739 293,821 310,067 16,246 304,295 311,327 267,004
Income
Revenues
Goods and services 28,907 31,705 31,705 - 32,498 33,312 35,188
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
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
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
Defence Portfolio Additional Estimates Statements 2019–20
38
Program 2.3: Defence Finance
Performance information is as reported in the PBS 2019–20.
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
Net losses from sale of assets - - - - - - -
Other expenses 10,951 - - - - - -
Total expenses 171,707 185,839 171,748 -14,091 155,466 158,551 162,946
Income
Revenues
Goods and services 4,409 1,301 1,301 - 1,381 1,426 1,469
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
Net gains from sale of assets - - - - - - -
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.
Department of Defence
39
Program 2.4: Joint Capabilities
Performance information is as reported in the PBS 2019–20.
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
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
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
Defence Portfolio Additional Estimates Statements 2019–20
40
Program 2.5: Navy Capabilities
Performance information is as reported in the PBS 2019–20 except for the following revisions.
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
Write-dow n of assets and impairment of assets 27,882 116,033 148,783 32,750 170,317 195,002 221,321
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.
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
42
Program 2.6: Army Capabilities
Performance information is as reported in the PBS 2019–20 except for the following revisions.
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
Depreciation and amortisation 1,598,216 1,047,407 1,213,188 165,781 1,269,346 1,283,003 1,393,957
Finance cost 248 4,898 670 -4,228 689 709 728
Write-dow n of assets and impairment of assets 41,011 61,492 89,419 27,927 106,855 122,685 142,949
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
Goods and services 25,544 21,985 21,985 - 17,411 23,381 17,172
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.
Department of Defence
43
Program 2.7: Air Force Capabilities
Performance information is as reported in the PBS 2019–20 except for the following revisions.
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 - - -
Depreciation and amortisation 1,681,700 1,736,155 1,977,153 240,998 1,986,907 1,830,380 2,070,599
Finance cost 1,050 23,515 5,993 -17,522 6,145 6,303 6,465
Write-dow n of assets and impairment of assets 88,194 145,926 166,315 20,389 190,854 220,341 242,882
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
Goods and services 18,410 39,120 39,120 - 40,097 41,204 42,357
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
Reversal of previous asset w rite-dow ns 2,035 8,982 126,434 117,452 146,636 170,776 189,259
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
45
Program 2.8: Australian Defence Force Headquarters Command
Performance information is as reported in the PBS 2019–20.
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
Finance cost - - - - - - -
Write-dow n of assets and impairment of assets 1,334 335 662 327 1,194 2,435 3,417
Net losses from sale of assets - - - - - - -
Other expenses 785 - - - - - -
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
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
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
Defence Portfolio Additional Estimates Statements 2019–20
46
Program 2.9: Capability Acquisition and Sustainment
Performance information is as reported in the PBS 2019–20.
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 - - - - - -
Other expenses 51 - - - - - -
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
Other revenue - - - - - - -
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 - - -
Other gains - - - - - - -
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
Department of Defence
47
Program 2.10: Estate and Infrastructure
Performance information is as reported in the PBS 2019–20.
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 - - - - - -
Depreciation and amortisation 1,052,631 1,010,985 1,312,332 301,347 1,387,345 1,475,346 1,567,395
Finance cost 94,517 93,487 105,379 11,892 102,717 100,351 97,896
Write-dow n of assets and impairment of assets 37,747 10,893 27,982 17,089 30,985 38,995 45,627
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
Reversal of previous asset w rite-dow ns 20,516 4,326 5,917 1,591 7,686 13,693 18,690
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.
Defence Portfolio Additional Estimates Statements 2019–20
48
Program 2.11: Chief Information Officer
Performance information is as reported in the PBS 2019–20.
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 - - - - - -
Write-dow n of assets and impairment of assets 17,172 13,130 30,548 17,418 36,189 40,049 43,166
Net losses from sale of assets 1,722 - - - - - -
Other expenses 318 - - - - - -
Total expenses 1,802,841 1,717,645 1,803,647 86,002 1,588,053 1,744,293 2,046,413
Income
Revenues
Goods and services 35,300 37,054 37,054 - 38,797 39,710 40,645
Other revenue - - - - - - -
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
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
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
Department of Defence
49
Program 2.12: Defence People
Performance information is as reported in the PBS 2019–20.
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
Net losses from sale of assets - - - - - - -
Other expenses 5 - - - - - -
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
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
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
Defence Portfolio Additional Estimates Statements 2019–20
50
Program 2.13: Defence Science and Technology
Performance information is as reported in the PBS 2019–20.
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
Finance cost - - - - - - -
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 - - - - - -
Other expenses 84 - - - - - -
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
Net gains from sale of assets - - - - - - -
Other gains - - - - - - -
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
Department of Defence
51
Administered Program 2.14: Defence Force Superannuation Benefits
Performance information is as reported in the PBS 2019–20.
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
Defence Portfolio Additional Estimates Statements 2019–20
52
Administered Program 2.15: Defence Force Superannuation Nominal Interest
Performance information is as reported in the PBS 2019–20.
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
Net foreign exchange losses - - - - - - -
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 - - - - - - -
Net foreign exchange gains - - - - - - -
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
Department of Defence
53
Administered Program 2.16: Housing Assistance
Performance information is as reported in the PBS 2019–20.
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
Net foreign exchange losses - - - - - - -
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 - - - - - - -
Net foreign exchange gains - - - - - - -
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
Defence Portfolio Additional Estimates Statements 2019–20
54
Administered Program 2.17: Other Administered
Performance information is as reported in the PBS 2019–20.
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
Department of Defence
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
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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 - - - -
Defence Portfolio Additional Estimates Statements 2019–20
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
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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 - - - -
Department of Defence
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
Defence Portfolio Additional Estimates Statements 2019–20
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
Department of Defence
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 - - - -
Defence Portfolio Additional Estimates Statements 2019–20
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
Non-financial assets
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
Interest bearing liabilities
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
Department of Defence
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
OPERATING ACTIVITIES
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 - - - -
Total cash received 35,918,477 36,928,971 38,222,043 39,882,853 42,994,656
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
INVESTING ACTIVITIES
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
FINANCING ACTIVITIES
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 - - - -
Total cash received 3,963,482 4,040,467 5,749,426 8,368,235 9,747,336
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
Defence Portfolio Additional Estimates Statements 2019–20
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
Department of Defence
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.
Defe
nce
Portfo
lio A
dditio
na
l Estim
ate
s S
tate
men
ts 2
01
8–19
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.
Department of Defence
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
Defence Portfolio Additional Estimates Statements 2019–20
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
Non-financial assets
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.
Department of Defence
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
%
OPERATING ACTIVITIES
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
INVESTING ACTIVITIES
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
Defence Portfolio Additional Estimates Statements 2019–20
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 - - - -
Foreign exchange - - - - -
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
Department of Defence
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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
Cash and cash equivalents 114,576 158,466 158,466 158,466 158,466
Trade and other receivables 38,332 39,166 39,482 32,567 36,488
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
Non-financial assets
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.
Defence Portfolio Additional Estimates Statements 2019–20
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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
OPERATING ACTIVITIES
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
Total cash received 1,633,642 1,336,161 1,222,268 1,137,753 1,059,914
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
INVESTING ACTIVITIES
Cash received
Dividends 26,555 22,546 41,705 41,826 34,711
Total cash received 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
Department of Defence
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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).
Defence Portfolio Additional Estimates Statements 2019–20
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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
Defence Portfolio Additional Estimates Statements 2019–20
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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
Department of Defence
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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
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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)
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 (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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Table 65: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure (Gross Plan) (Continued)
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
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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Table 65: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure (Gross Plan) (Continued)
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
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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Table 65: Top 30 Acquisition Projects by 2019–20 Forecast Expenditure (Gross Plan) (Continued)
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
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
Budget Estimate 2019-20
$m
Revised Estimate 2019-20
$m
Variation 2019-20
$m
Project Performance Update and Explanation of Variation
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)
Domain/ Product Name Product Serial
Budget Estimate 2019-20
$m
Revised Estimate 2019-20
$m
Variation 2019-20
$m
Project Performance Update and Explanation of Variation
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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Table 66: Top 30 Sustainment Products by 2019-20 Forecast Expenditure (Continued)
Domain/ Product Name Product Serial
Budget Estimate 2019-20
$m
Revised Estimate 2019-20
$m
Variation 2019-20
$m
Project Performance Update and Explanation of Variation
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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Table 66: Top 30 Sustainment Products by 2019-20 Forecast Expenditure (Continued)
Budget Estimate 2019-20
$m
Revised Estimate 2019-20
$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
Estimated Cumulative
Expenditure to 30 June
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
of change in delivery schedule
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
of change in delivery schedule
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 Edinburgh SA - Spence - 7.4 7.6 1.7 2.5 0.8
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
of change in delivery schedule
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
Total 388.6 330.3 317.4 39.8 19.1 -20.7 The financial variation is a result
of change in delivery schedule
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 - - -
Total 329.8 282.0 275.0 16.8 27.8 11.0 The financial variation is a result
of change in delivery schedule
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
Total 276.5 236.7 238.8 12.7 12.3 -0.4 The financial variation is a result
of change in delivery schedule
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
RAAF Edinburgh SA - Spence - 5.3 10.4 3.9 4.3 0.4
HMAS Stirling WA - Brand - 7.3 8.8 8.3 6.6 -1.7
Total 230.9 85.3 115.7 97.7 85.8 -11.9 The financial variation is a result
of change in delivery schedule
Maritime Operational Support Capability Facilities (SEA 1654 Phase 3)[1]
HMAS Stirling WA - Brand - 9.3 0.5 109.0 50.0 -59.0
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
Total 220.5 11.1 11.9 120.7 72.4 -48.3 The financial variation is a result
of change in delivery schedule
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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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
Total 212.5 19.1 18.4 131.8 125.2 -6.6 The financial variation is a result
of change in delivery schedule
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
Total 149.0 1.4 4.1 128.6 102.4 -26.2 The financial variation is a result
of change in delivery schedule
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
Total 115.6 94.4 92.8 13.9 19.6 5.7 The financial variation is a result
of change in delivery schedule
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
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
of change in delivery schedule
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 -
Total 95.3 62.1 61.5 8.0 8.0 0.0 The financial variation is a result
of change in delivery schedule
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
of change in delivery schedule
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
of change in delivery schedule
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
Total 57.1 54.8 54.3 1.2 1.3 0.1 The financial variation is a result
of change in delivery schedule
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
of change in delivery schedule
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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 - - -
Total 50.5 44.4 43.9 3.9 4.2 0.3 The financial variation is a result
of change in delivery schedule
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
Total 40.4 9.2 22.4 4.9 10.1 5.1 The financial variation is a result
of change in delivery schedule
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
Total 24.3 0.1 0.4 23.1 22.8 0.3 The financial variation is a result
of change in delivery schedule
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 - - -
Total 21.5 11.2 11.2 9.5 9.5 0.0 The financial variation is a result
of change in delivery schedule
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
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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
Total 16.7 1.0 0.0 12.7 1.8 -11.0 The financial variation is a result
of change in delivery schedule
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
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Table 67: Approved Capital Facilities Projects by State and Federal Electorate (Continued)
State and
Electorate
Total Estimated
Expenditure $m
Estimated Cumulative
Expenditure to 30 June
2019 $m
Estimated Cumulative
Expenditure to 30 June
2019 $m (revised)
2019-20 Budget
Estimate $m
2019-20 Revised
Estimate $m
Variation $m
Project Performance Update and Explanation of Financial
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Department of Defence
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.
Defence Portfolio Additional Estimates Statements 2019–20
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.
Australian Signals Directorate
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
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 Portfolio Additional Estimates Statements 2019–20
112
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Australian Signals Directorate
113
AUSTRALIAN SIGNALS DIRECTORATE
Section 1: ASD Overview and Resources
1.1 STRATEGIC DIRECTION STATEMENT
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
Defence Portfolio Additional Estimates Statements 2019–20
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.
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
Defence Portfolio Additional Estimates Statements 2019–20
116
Annual Appropriations
Table 71: Appropriation Bill (No. 3) 2019–20
Table 72: 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
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.
Australian Signals Directorate
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.
Defence Portfolio Additional Estimates Statements 2019–20
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
Australian Signals Directorate
119
Contributions to Outcome 1
Program 1.1: Foreign Signals Intelligence, Cyber Security and Offensive Cyber Operations
Performance information is as reported in the PBS 2019–20.
Defence Portfolio Additional Estimates Statements 2019–20
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.
3.1 EXPLANATORY TABLES
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.
Australian Signals Directorate
121
3.2 BUDGETED FINANCIAL STATEMENTS
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
Foreign exchange - - - - -
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
Defence Portfolio Additional Estimates Statements 2019–20
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
Trade and other receivables 16,056 16,056 16,056 16,056 16,056
Total financial assets 13,811 15,715 18,031 19,273 16,566
Non-financial assets
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
Interest bearing liabilities
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
Australian Signals Directorate
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
OPERATING ACTIVITIES
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) - - - - -
Total cash received 754,365 814,101 855,923 900,027 864,015
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
INVESTING ACTIVITIES
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
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity 130,636 176,836 188,440 108,070 69,793
Total cash received 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
Defence Portfolio Additional Estimates Statements 2019–20
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
Opening balance as at 1 July 2019
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
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
Transactions with owners
Distribution to owners
Returns on capital:
Restructuring - - - - -
Other - - - - -
Contributions by owners
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
Australian Signals Directorate
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
CAPITAL ASSET ADDITIONS
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
Defence Portfolio Additional Estimates Statements 2019–20
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).
Defence Housing Australia
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
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128
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Defence Housing Australia
129
DEFENCE HOUSING AUSTRALIA
Section 1: DHA Overview and Resources
1.1 STRATEGIC DIRECTION STATEMENT
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.
Defence Portfolio Additional Estimates Statements 2019-20
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)
Defence Housing Australia
131
The chart below shows DHA’s Senior Executive.
Figure 4: DHA Organisational Structure (as at 31 December 2019)
Defence Portfolio Additional Estimates Statements 2019-20
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.
Defence Housing Australia
133
1.3 BUDGET MEASURES
There are no budget measures relating to DHA for the 2019-20 Additional Estimates.
Defence Portfolio Additional Estimates Statements 2019-20
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
Defence Housing Australia
135
Contributions to Outcome 1
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
Members satisfied with their service residence
Return on equity
> 99%
> 80%
1.1% Expected to be met
2020-21 and beyond
Houses supplied against provisioning schedule
Members satisfied with their service residence
Return on equity
> 99%
> 80%
3.3%
Defence Portfolio Additional Estimates Statements 2019-20
136
Section 3: DHA Explanatory Tables and Budgeted Financial Statements
DHA advises no significant changes to targets published in the PBS 2019-20.
3.1 EXPLANATORY TABLES
Not applicable to DHA.
Defence Housing Australia
137
3.2 BUDGETED FINANCIAL STATEMENTS
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
Defence Portfolio Additional Estimates Statements 2019-20
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
Cash and cash equivalents 212,924 271,517 331,740 469,981 688,368
Trade and other receivables 8,827 12,984 12,416 30,684 22,123
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
Total financial assets 227,153 289,198 348,657 505,241 715,166
Non-financial assets
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
Interest bearing liabilities
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
1. Prepared on Australian Accounting Standards basis.
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.
Defence Housing Australia
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
OPERATING ACTIVITIES
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
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property,
plant and equipment21,053 22,707 48,402 14,790 24,070
Total cash received 21,053 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)
FINANCING ACTIVITIES
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
1. Prepared on Australian Accounting Standards basis.
Financial Reporting Rules.
Estimates submission has been prepared on a fair value basis, in line w ith the PGPA Act
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
Defence Portfolio Additional Estimates Statements 2019-20
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
Opening balance as at 1 July 2019
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
Comprehensive income
Surplus/(deficit) for the period 39,436 - - - 39,436
Total comprehensive income 39,436 - - - 39,436
Transactions with owners
Distributions to owners
Returns on capital:
Dividends (17,367) - - - (17,367)
Contributions by owners
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
1. Prepared on Australian Accounting Standards basis.
Estimates submission has been prepared on a fair value basis, in line w ith the PGPA Act Financial
Reporting 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
Defence Housing Australia
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
CAPITAL ASSET ADDITIONS
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
1. Prepared on Australian Accounting Standards basis.
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
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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.
Defence Portfolio Additional Estimates Statements 2019-20
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.
Defence Portfolio Additional Estimates Statements 2019-20
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.
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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
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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