SECTION TWO
OUTCOMES AND PLANNED
PERFORMANCE
CHAPTER SIX – PLANNED OUTCOME
PERFORMANCE
OUTCOMES AND PERFORMANCE INFORMATION
OUTPUT DESCRIPTIONS
OUTCOME 1 – AUSTRALIA’S NATIONAL INTERESTS ARE PROTECTED
AND ADVANCED THROUGH THE PROVISION OF MILITARY
CAPABILITIES AND THE PROMOTION OF SECURITY AND STABILITY
OUTCOME 2 – MILITARY OPERATIONS AND OTHER TASKS DIRECTED
BY THE GOVERNMENT TO ACHIEVE THE DESIRED RESULTS
OUTCOME 3 – DEFENCE’S SUPPORT TO THE AUSTRALIAN COMMUNITY
AND CIVILIAN AUTHORITIES TO ACHIEVE THE DESIRED RESULTS
Chapter Six – Planned Outcome Performance
OUTCOMES AND PERFORMANCE INFORMATION
The Australian Government requires agencies to measure their intended and actual performance in
terms of outcomes. Government outcomes are the results, impacts or consequences of actions by the
Government on the Australian community. Agencies are required to identify the output groups which
demonstrate their contribution to Government outcomes over the coming year. This chapter describes
each outcome by output groups, specifying the performance indicators and targets used to assess and
monitor the performance of Defence in achieving government outcomes.
Previously, the Government had seven outcomes for Defence. Of these, six were departmental
outcomes which mainly focused on the delivery of military capabilities, and one was an administered
outcome. In the 2008-09 Budget, Defence is implementing a new outcome and output framework. The
new structure will increase the Government’s and the community’s visibility of what Defence
delivers, as it is aligned with Defence’s internal resource allocations and accountabilities.
Under the new structure, Defence will report against the following three outcomes:
•
Outcome 1: Australia’s national interests are protected and advanced through the provision of
military capabilities and the promotion of security and stability
•
Outcome 2: Military operations and other tasks directed by Government to achieve the desired
results
•
Outcome 3: Defence’s support to the Australian community and civilian authorities achieves the
desired results.
69
Chapter Six – Planned Outcome Performance
Figure 1.6.1 − Defence Outcome and Output Structure (as at 1 July 2008)
DEFENCE PORTFOLIO
DEFENCE
Outcome 1
Australia’s national interests are protected and advanced through the provision of military capabilities and the promotion of security and stability
Output Group 1.1
Office of the
Secretary & CDF
Output Group 1.2
Navy Capabilities
Output Group 1.3
Army Capabilities
Output 1.2.1
Navy
Headquarters
Output 1.3.1
Army Command
and Executive
Output 1.2.2
Fleet
Headquarters
Output 1.3.2
Capability for
Special
Operations
Output Group 1.4
Air Force
Capabilities
Output 1.4.1
Air Force
Headquarters
Executive and
Agencies
Output 1.5.1
Intelligence
Output 1.4.2
Air Command
Headquarters and
Executive
Output 1.5.2
Security
Output 1.5.3
International
Policy
Output 1.2.3
Capability for
Major Surface
Combatant
Operations
Output 1.3.3
Capability for
Medium
Combined Arms
Operations
Output 1.4.3
Capability for
Training Support
Output 1.2.4
Capability for
Naval Aviation
Operations
Output 1.3.4
Capability for
Light Combined
Arms Operations
Output 1.4.4
Capability for
Airlift Operations
Output 1.2.5
Capability for
Patrol Boat
Operations
Output 1.3.5
Capability for
Army Aviation
Operations
Output 1.2.6
Capability for
Submarine
Operations
Output 1.3.6
Capability for
Combat Support
to Operations
Output 1.2.7
Capability for
Afloat Support
Output 1.3.7
Capability for
Operational
Logistics Support
to Land Forces
Output 1.2.8
Capability for
Mine Warfare
Output 1.2.9
Capability for
Amphibious Lift
Output 1.3.8
Capability for
Reserve
Protective
Operations
Output Group 1.5
Intelligence
Capabilities
Output Group 1.6
Defence Support
Output 1.6.1
Defence Support
Executive
Output 1.6.3
Personnel
Services
Output 1.6.5
Infrastructure
Output 1.6.6
National
Operations
Output 1.4.6
Capability for
Strategic
Surveillance and
Maritime Attack
Operations
Output Group 1.8
Chief Information
Officer
Output 1.6.2
Defence Health
Services
Output 1.6.4
Defence Legal
Output 1.4.5
Capability for
Combat Support
of Air Operations
Output Group 1.7
Defence Science
and Technology
Output Group 1.9
Vice Chief of the
Defence Force
Output Group 1.10
Joint Operations
Command
Output Group 1.11
Capability
Development
Output Group 1.12
Chief Finance
Officer
Output Group 1.13
People Strategies
and Policy
Output 1.4.7
Capability for Air
Combat
Operations
Output 1.4.8
Capability for
Aerospace
Operational
Output 1.3.9
Training Support Army
Output 1.2.10
Capability for
Hydrographic and
Oceanographic
Operations
Output 1.2.11
Navy Systems
Command
70
Output Group 1.14
Superannuation and
Housing Support Services
for Current and Retired
Defence Personnel and
other Administered Items
Output 1.14.1
Superannuation
Output 1.14.2
Housing
Assistance
Output 1.14.3
Other
Administered
(including UN
receipts)
Chapter Six – Planned Outcome Performance
Figure 1.6.1 − Defence Outcome and Output Structure (as at 1 July 2008) cont.
DEFENCE PORTFOLIO (Continued)
DEFENCE (Continued)
Outcome 2
Military operations and other tasks
directed by the Government to achieve the
desired results
Output Group 2.1
Operations Contributing
to the Security of the
Immediate
Neighbourhood
Output Group 2.2
Operations Supporting
Wider Interests
Output 2.1.1
Operation Astute
(net additional costs
only)
Output 2.2.1
Operation Slipper
(net additional costs
only)
Output 2.1.2
Operation Anode
(net additional costs
only)
Output 2.2.2
Operation Catalyst
(net additional costs
only)
DMO
Outcome 3
Defence’s support to the Australian
community and civilian authorities to
achieve the desired results
Output Group 3.1
Defence Contribution to
National Support Tasks
in Australia
Outcome 1
Defence capabilities are supported
through efficient and effective acquisition
and through-life support of materiel
Output 1.1
Management of
Capability Acquisition
Output 3.1.1
Defence Force Aid
to the Civil Power
Tasks (net
additional costs
only)
Output 3.1.2
Defence Assistance
to the Civil
Community Tasks
(net additional costs
only)
Output 3.1.3
Operation Resolute
(net additional costs
only)
Output 3.1.4
Operation
Testament (net
additional costs
only)
71
Output 1.2
Capability Sustainment
Output 1.3
Policy Advice and
Management Services
Chapter Six – Planned Outcome Performance
OUTPUT DESCRIPTIONS
In line with whole-of-Government requirements, the Portfolio Budget Statements report at the Output
Group level. The descriptions of outputs, for those output groups that have outputs, follow.
Output 1.2.1: Navy Headquarters
Develops the policy and strategic direction and guidance required to shape and meet the Government’s requirements, to
develop the force for the future, and to function effectively and efficiently, all within the resources provided.
Output 1.2.2: Fleet Headquarters
Is accountable to the Chief of Navy for all assigned ships, naval aircraft, support craft and other operational units that
collectively form the Fleet Command. The Command is responsible for the preparation and provision of appropriately trained
and capable maritime forces for operations, and for the operational readiness and effectiveness of units and personnel assigned
to the Command.
Output 1.2.3: Capability for Major Surface Combatant Operations
Possesses combat capabilities in all three primary warfare areas (air, surface and undersea) and can also provide limited
combined and joint ADF command and control facilities for ADF operations.
Output 1.2.4: Capability for Naval Aviation Operations
Contributes to the Navy’s capability for maritime surface warfare (ship strike), undersea warfare, reconnaissance, surveillance,
maritime support, search and rescue, medical evacuation, electronic warfare and aircrew training.
Output 1.2.5: Capability for Patrol Boat operations
Provides maritime resource and border protection operations under the operational control of the Border Protection Command,
with tasking coordinated by Headquarters Northern Command.
Output 1.2.6: Capability for Submarine Operations
Contributes to regional engagement and security through the conduct of port visits and exercises with regional nations.
Submarines may be employed to operate independently either as an element of the ongoing national intelligence collection
effort or as a forward reconnaissance unit in an area of heightened tension. They may also be employed as one of a number of
key elements in task group operations that deny opponents the use of Australia’s maritime approaches.
Output 1.2.7: Capability for Afloat Support
Provides a capability for afloat support consisting of an oil tanker and a replenishment ship.
Output 1.2.8: Capability for Mine Warfare
Provides an advanced mine hunting and clearance diving capability and a limited maritime patrol and surveillance capability;
route survey support and mine warfare training; and mine warfare and clearance diving operations, including explosive
ordnance and improvised explosive device disposal.
Output 1.2.9: Capability for Amphibious Lift
Provides capability for amphibious lift and support to landing forces, with an inherent capability for command and control,
communications, helicopter operations and medical support.
Output 1.2.10: Capability for Hydrographic, Meteorological and Oceanographic Operations
Provides Navy’s capability for hydrographic operations, nautical charting and provision of meteorological and oceanographic
support to the ADF. Additionally, the Navy meets Australia’s international obligations for provision of hydrographic services.
Output 1.2.11: Navy Systems Command
Ensures that the Navy is properly supported in terms of systems, personnel, training, safety and certification, policing and
security, culture and heritage, to deliver against the Chief of Navy’s priorities and to assist Fleet in achieving its operational
commitments.
Output 1.3.1: Army Command and Executive
Develops the policy and strategic guidance required for the Army: to meet and shape the Government’s requirement of Army, to
develop the force for the future, and to function effectively and efficiently, all within the resources provided.
Output 1.3.2: Capability for Special Operations
Provides high readiness forces capable of conducting special reconnaissance, offensive strike, domestic counter terrorism and
offshore recovery operations.
Output 1.3.3: Capability for Medium Combined Arms Operations
Provides combined arms teams based on armoured, mechanised and cavalry forces with integral command and control,
communications, offensive support, combat engineer support, and combat service support.
Output 1.3.4: Capability for Light Combined Arms Operations
Provides combined arms teams based on light infantry forces with integral command and control, communications, offensive
support, combat engineer support, and combat service support.
Output 1.3.5: Capability for Army Aviation Operations
Provides aircraft, which are maintained at high readiness, for mobility through tactical troop lift, command and liaison, and
reconnaissance operations.
72
Chapter Six – Planned Outcome Performance
Output 1.3.6: Capability for Combat Support to Operations
Provides force-level surveillance and target acquisition, electronic warfare, military police, intelligence, force level construction
engineer support, and support to other Army outputs.
Output 1.3.7: Capability for Operational Logistics Support to Land Forces
Provides operational-level combat service support forces with integral command and control, communications, supply chain
management and distribution capabilities.
Output 1.3.8: Capability for Reserve Protective Operations
Provides Army Reserve combined arms teams based on light infantry forces with integral command and control,
communications, and combat service support.
Output 1.3.9: Training Support Army
Provides training that replenishes and sustains Army’s workforce structures and up-skills the existing workforce.
Output 1.4.1: Air Force Headquarters Executive and Agencies
Develops the policy and strategic direction and guidance required for the Air Force to: meet and shape the Government’s
requirement of Air Force; to develop the force for the future; and function effectively and efficiently, within the resources
provided.
Output 1.4.2: Air Command Headquarters and Executive
Plans and manages the components of Air Force capability, delivers Air and Space Operations Centre capability to HQJOC and
aggregates performance and preparedness reporting information.
Output 1.4.3: Capability for Training Support
Contributes to the development of air power capability through the training of our people.
Output 1.4.4: Capability for Airlift Operations
Provides airlift to enable rapid mobility of personnel and cargo to, from and within, a battlefield or area of operation.
Output 1.4.5: Capability for Combat Support of Air Operations
Provides and maintains air base infrastructure and services essential for the mounting of air operations both in Australia and
overseas during contingencies.
Output 1.4.6: Capability for Strategic Surveillance and Maritime Attack Operations
Maintains aircraft, personnel, sensors and air battle management elements to deliver a wide range of intelligence, surveillance
and reconnaissance capabilities, as well as for maritime strike and anti-submarine warfare operations.
Output 1.4.7: Capability for Air Combat Operations
Provides the ADF’s air combat capability to support air control, maritime and land strike, offensive air support for land and
maritime operations and limited reconnaissance roles.
Output 1.4.8: Capability for Aerospace Operational Support
Generates operational support to air and space operations which is defined as the support provided to enable the planning and
conduct of military campaigns.
Output 1.5.1: Intelligence
Collects and produces intelligence, undertake analysis and develop assessments to support the planning and conduct of ADF
operations, Defence policy making and planning, capability development, and wider Government decision making.
Output 1.5.2: Security
Protects sensitive Defence information and materiel by developing protective security policy and standards appropriate to
Defence’s circumstances. This assists with their implementation, evaluation and reporting upon their effectiveness and
promotes an effective security culture in Defence.
Output 1.5.3: International Policy
International Policy Division provides advice to Government and Defence stakeholders on international policy issues, ADF
operations and international Defence activities.
Output 1.6.1: Defence Support Executive
Responsible for managing a number of whole-of-Defence business services and a range of management activities to support
the operations of the Defence Support Group.
Output 1.6.2: Defence Health Services
Responsible for health services to ADF members and preparing ADF health personnel for operational deployment.
Output 1.6.3: Personnel Services
Delivers a range of personnel services, including advice and policy interpretation, to support Defence personnel in Defence
housing and relocations; honours and awards; personnel support services; personnel administration and payroll; training,
education and development, and support to ADF families.
Output 1.6.4: Defence Legal
Provides a broad spectrum of legal services to Defence.
73
Chapter Six – Planned Outcome Performance
Output 1.6.5: Infrastructure
Develops, manages and sustains the Defence estate from the concepts and plans phase through to disposal in an efficient and
effective manner. The Major Capital Facilities Program is identified separately in the Capital Investment chapter (Part One
Chapter Four).
Output 1.6.6: National Operations
As a major service delivery arm of Defence Support Group, National Operations supports Defence capability by delivering a
range of DSG products and services to approximately 117 sites where Defence people work, train and live in Australia.
Output 1.14.1: Superannuation
Superannuation for Current and Retired Defence Personnel.
Output 1.14.2: Housing Support Services for Current and Retired Defence Personnel
Housing Support Services for Current and Retired Defence Personnel.
Output 1.14.3: Other Administered Items
For all other administered items including specific purpose payments.
Output 2.1.1: Operation Astute
The ADF’s contribution to the restoration of peace and stability in Timor-Leste.
Output 2.1.2: Operation Anode
The ADF’s contribution to the Australian-led Regional Assistance Mission to Solomon Islands (RAMSI).
Output 2.2.1: Operation Slipper
The ADF’s contribution to the international coalition against terrorism.
Output 2.2.2: Operation Catalyst
The ADF’s contribution to the rehabilitation and reconstruction of Iraq.
Output 3.1.1: Defence Force Aid to the Civil Authority tasks
The ADF’s assistance to Commonwealth or state and territory governments and their civil authorities in law enforcement tasks,
where there is the possibility that force may be required.
Output 3.1.2: Defence Assistance to the Civil Community tasks
Includes counter-disaster and emergency assistance. Small-scale tasks undertaken within local ADF resources are numerous
and generally have minimal impact on ADF resources. Larger tasks involving coordinated activity with state or territory
authorities or with Emergency Management Australia (in the Attorney-General’s Department) may arise at short notice.
Output 3.1.3: Operation Resolute
The ADF's on-going contribution to Australian whole-of-government efforts to protect Australia’s Exclusive Economic Zone
(EEZ).
Output 3.1.4: Operation Testament
The ADF’s contribution to whole-of-government support to the Catholic Youth Festival and Papal visit to Sydney in July 2008.
74
Chapter Six – Planned Outcome Performance
OUTCOME 1 – AUSTRALIA’S NATIONAL INTERESTS ARE
PROTECTED AND ADVANCED THROUGH THE PROVISION OF
MILITARY CAPABILITIES AND THE PROMOTION OF SECURITY AND
STABILITY
Strategy
Outcome 1 addresses the strategic objectives set out in the 2000 Defence White Paper and the two key
elements of the Defence policy response enunciated in the Defence Update 2005 and confirmed in
Defence Update 2007, namely:
•
shaping and building a defence capability that provides options for a credible response wherever
Australia’s security interests are engaged.
•
building strong security relationships both regionally and globally.
The primary focus of outcome 1 is on maintaining the capacity to support current commitments and
provide response options to the Government to meet the range of potential future domestic, regional
and global contingencies. It also covers working collaboratively with our neighbours and the broader
international defence community and contributing to coalition operations in support of Australia’s
national interests. As well as the provision of military capabilities, this outcome encompasses all of
the policy, command and support functions undertaken by the organisation.
Defence’s administered appropriations relating to Superannuation and Housing Support Services for
Current and Retired Defence Personnel are covered by outcome 1.
Apart from supporting current operations, which are described in detail under outcomes 2 and 3, the
priorities that will be progressed under outcome 1 in 2008-09 are:
•
delivering a draft Defence White Paper for Government consideration that will form the
foundation of our future Defence capabilities
•
continuing the strong commitment on the recruitment and retention of ADF personnel
•
implementing Defence reform to improve effectiveness and efficiency and to enhance governance
•
implement a program of efficiency and economy measures to ensure that all areas of Defence are
fully able to support and deliver future military capability requirements.
75
Chapter Six – Planned Outcome Performance
Resource Statement
Table 1.6.1 provides additional detail of Budget appropriations and the total resourcing for outcome 1:
Australia’s national interests are protected and advanced through the provision of military capabilities
and the promotion of security and stability.
Table 1.6.1—Total Resources Available for Outcome 1[1]
2007-08
Estimated
[2]
actual
2008-09
Budget
estimate
2009-10
Forward
estimate
2010-11
Forward
estimate
2011-12
Forward
estimate
$’000
$’000
$’000
$’000
$’000
Outcome 1: Australia’s national interests are protected and advanced through the provision of military capabilities and
the promotion of security and stability
Output group 1.1—Office of the Secretary and CDF
Revenues from other sources
Departmental outputs
898
981
999
1,021
1,054
82,694
82,848
80,461
83,588
83,599
Output group 1.2—Navy Capabilities
Revenues from other sources
Departmental outputs
45,180
52,697
49,218
49,655
52,112
4,448,429
3,636,215
3,889,939
3,994,214
4,175,644
Output group 1.3—Army Capabilities
Revenues from other sources
Departmental outputs
58,784
65,986
67,145
68,687
70,924
4,282,145
4,568,693
4,945,623
5,164,983
5,359,702
Output group 1.4—Air Force Capabilities
Administered items – specific purpose payment
Revenues from other sources
Departmental outputs
26,800
–
–
–
–
109,172
115,981
117,264
119,958
123,863
3,542,212
3,866,691
4,342,220
4,503,897
4,651,303
18,714
36,269
37,219
29,463
27,311
589,335
647,795
744,348
751,594
758,369
Output group 1.5—Intelligence Capabilities
Revenues from other sources
Departmental outputs
Output group 1.6—Defence Support
Administered items - specific purpose payment
Revenues from other sources
Departmental outputs
–
23,300
–
–
–
214,745
228,643
236,577
245,382
257,580
3,121,709
3,108,623
3,567,023
3,724,758
3,569,174
39,253
24,537
30,149
30,735
31,684
365,454
351,990
390,337
399,444
406,825
Output group 1.7—Defence Science and Technology
Revenues from other sources
Departmental outputs
Output group 1.8—Chief Information Officer
Revenues from other sources
21,294
6,383
5,906
5,038
5,202
799,783
699,984
799,078
816,226
833,379
Revenues from other sources
343,101
273,713
281,139
286,857
295,829
Departmental outputs
496,405
262,016
305,094
313,705
322,359
Departmental outputs
Output group 1.9—Vice Chief of the Defence Force
Output group 1.10—Joint Operations Command
Revenues from other sources
Departmental outputs
537
481
489
501
517
58,830
48,437
49,229
51,220
51,903
Output group 1.11—Capability Development
Revenues from other sources
Departmental outputs
–
–
–
–
–
448,719
342,919
540,590
351,385
469,938
5,994
6,220
6,850
7,257
7,937
339,142
421,723
499,741
571,747
598,641
Output group 1.12—Chief Finance Officer
Revenues from other sources
Departmental outputs
76
Chapter Six – Planned Outcome Performance
Output group 1.13—People Strategies and Policy
Revenues from other sources
Departmental outputs
–
–
–
–
–
281,423
341,132
366,220
383,669
383,215
Output group 1.14—Superannuation and Housing Support Services for Current and Retired Defence Personnel and
other Administered Items
Special appropriations:
Defence Force Retirement Benefits Act, 1948 Part
[3]
VIC , s.82ZJ (1)
Defence Force Retirement and Death Benefits Act,
[3]
1973 Part XII, s.125 (3)
Military Superannuation and Benefits Act, 1991 Part
[3]
V, s.17
Defence Force (Home Loans Assistance) Act, 1990
[3]
Part IV, s.38
[3]
Parliamentary Entitlements Act, 1990 Part I, s.11
Administered items
91,639
91,430
90,897
90,301
89,590
1,442,361
1,439,070
1,430,693
1,421,299
1,410,110
1,257,600
1,360,200
1,465,300
1,573,500
1,686,600
11,250
52,638
71,664
91,424
110,157
4,502
–
–
–
–
2,807,352
2,943,338
3,058,554
3,176,524
3,296,457
[4]
18,379,067
20,519,903
21,110,431
21,664,050
Total resourcing
Total departmental outputs
18,856,280
Total administered items
2,834,152
2,966,638
3,058,554
3,176,524
3,296,457
Total revenue from other sources (s. 31)
857,671
811,892
832,956
844,554
874,013
Equity Injection
524,315
2,365,736
3,550,623
4,247,986
4,740,822
[5]
23,072,419
24,523,332 27,962,035 29,379,495 30,575,342
Total resources for outcome 1
Notes
1. Departmental outputs equals the net cost of outputs.
2. Estimates are based on recasting the 2007-08 output structure to the new structure for comparative purposes.
3. These are accrual estimates.
4. The sum of departmental outputs resourcing in 2007-08 for outcomes 1, 2 and 3 is $208.9m more than the appropriation for
departmental outputs reported in Serial 1 of Table 1.2.1 due to the forecast operating loss.
5. Does not include net capital receipts (NCR). NCR forms part of the capital budget statement (refer table 1.7.12).
77
Chapter Six – Planned Outcome Performance
Output Group 1.1 – Office of the Secretary and CDF
Output Group 1.1: Office of the Secretary and CDF
The primary role of the Office of the Secretary and CDF Group is to support the Secretary and CDF so that they can better
respond to the demands of high operational tempo while also delivering high quality policy advice, driving organisational reform
and exercising strategic leadership. A key focus is to ensure that there is a close linkage between the Government’s strategic
direction and Defence’s business planning and performance framework.
The Group comprises the personal offices of the Secretary and the CDF; Strategy, Coordination and Governance Executive; the
Inspector General’s Division; a number of Military Justice organisations; and the Defence White Paper Team.
The Office of the Secretary and CDF is closely monitoring and managing the vast array of operational, commercial, financial,
regulatory and other risks associated with the Defence mission of defending Australia and its national interests.
Key Performance Indicators
•
•
•
•
•
•
Ensure both Defence strategic policy and business strategy align with Government direction and priorities, provide clear
guidance for the activities of Defence, and be responsive to external developments.
Ensure policy advice provided to the Government is accurate, timely and responsive, and offers practical and cost-effective
approaches to fulfil the Government’s defence responsibilities.
Prepare the draft Defence White Paper for Government consideration.
Lead Defence reform, through implementation of the Defence Business Model and other reform initiatives.
Enhance Defence’s governance framework, through clearer authority and accountability and more rigorous performance
management, assurance and audit processes.
Continue implementation of the reforms to the military justice system, including the full establishment of the Australian
Military Court, and support to the external review of the effectiveness of the military justice system.
Cost summary for output group 1.1
Table 1.6.2—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Employees
53,564
54,920
57,940
60,033
Suppliers
29,812
26,079
26,206
24,161
89
89
90
93
354
361
363
356
–
–
–
–
EXPENSES
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment
of assets
10
10
10
10
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
83,829
81,460
84,609
84,653
-1,051
INCOME
Revenues
Goods and services
-979
-996
-1,018
Other revenue
-3
-3
-3
-3
Total revenue
-981
-999
-1,021
-1,054
Gains
Reversals of previous asset
write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
Total income
Net cost of 1.1 Office of the
Secretary and CDF
–
–
–
–
-981
-999
-1,021
-1,054
82,848
80,461
83,588
83,599
78
Chapter Six – Planned Outcome Performance
Output Group 1.2 – Navy Capabilities
Output group 1.2: Navy Capabilities
The Navy provides maritime forces that contribute to the ADF’s capacity to defend Australia, contribute to regional security,
support global interests, shape the strategic environment and protect national interests. This is done by providing maritime
patrol and response, interdiction and strategic strike, protection of shipping and offshore territories and resources, maritime
intelligence collection and evaluation, hydrographic and oceanographic operations, search and rescue, and escort duties.
Peacetime activities include maritime surveillance and response within Australia’s offshore maritime zones, hydrographic,
oceanographic and meteorological support operations, humanitarian assistance, and maritime search and rescue.
In 2008-09, sufficient maritime combatant forces will be maintained to deploy on operations as required by military
preparedness directives. The Navy will also meet international engagement and interoperability requirements with allied and
regional maritime forces.
The Navy’s ongoing commitment to domestic and overseas operations, combined with the major upgrade of a number of major
fleet units, continues to challenge its ability to maintain high-end warfighting skills. Personnel shortages, particularly in warfare
officer and engineering disciplines, continue to place pressure on the Navy’s ability to deliver support to operations.
The Navy will exploit opportunities to provide concentrated training to maintain the skills needed to meet preparedness
requirements for current and future operations. The Navy continues to carefully manage the development of these skills through
a training program that is balanced against key personnel shortages.
Reinvigoration of naval aviation, area air warfare, anti-ship missile defence and amphibious lift are the Navy’s highest priorities
for capability development, followed by undersea and littoral warfare capabilities. The reinvigoration of the patrol boat force has
been realised and 2008-09 will be the first full financial year with all of the Armidale class patrol boats in service and with full
multi-flexible crewing established.
The capability of the Collins class submarine systems continues to improve. However, Australia is in a region experiencing a
proliferation of submarine and anti-submarine capabilities. Retention of submariners remains a significant challenge. Submarine
capability enhancements will offer major improvements to warfighting capabilities, through continued development of the combat
system, improved communications, sonar integration, and the introduction into service of a new heavyweight torpedo. Personnel
risks will be mitigated through workforce sustainment plans and initiatives, including lateral recruiting from other defence forces.
Cancellation of the Super Seasprite helicopter project has had a significant impact on the aviation capability, particularly in the
effectiveness of the Anzac class frigate/helicopter combination. Seahawk helicopters will carry the additional tasking burden
until a replacement capability is introduced under project AIR 9000 Phase 8 - Future Naval Aviation Combat System.
Significant improvements for our people have been implemented through the major retention initiative ‘Sea Change’. The
momentum will be sustained with a continued focus on improving individual choice and better management of our people’s
careers. The Navy is expanding its workforce from a current average strength of 12,894 to 13,744 by 2011-12. Affecting this
requirement is an increasing focus on the efficient use of resources, rising personnel costs, ongoing operational commitments,
competition from commercial interests for the best talent, and a changing demographic and social climate that will challenge
delivery and maintenance of the workforce. The Navy’s workforce is currently below its target strength. The Navy has in place
systems to identify the workforce size and shape required to support future capability. Shortages continue in several
employment groups, particularly doctors, aviators, engineering professionals, technical personnel, and all trades within the
submarine force. The national skill shortage will continue to affect the Navy's ability to attract suitable candidates for technical
trade positions. Sustained strong retention and recruitment trends are the key elements to building the Navy’s long-term
workforce structure.
The crucial factor in achieving a sustainable workforce is improving the balance between recruitment and separation rates. This
has been one of the most difficult challenges in recent times. The new Navy Capability Allowance will assist in this regard by
providing a financial incentive of $24,000 to general service sailors and $60,000 to submariners of Able Seaman through to
Chief Petty Officer rank who agree to complete a further 18 months service. Other short-term financial retention initiatives have
been approved for engineering officers, technical sailors, seaman officers, warfare sailors and aviation officers and sailors. Work
is also being undertaken to better identify potential capability delivery constraints caused by workforce shortfalls.
Key performance indicators
•
•
•
•
•
Provide timely, accurate and considered advice on Navy capabilities to the CDF, the Secretary and the Government.
Achieve levels of preparedness directed by the Chief of the Defence Force for military response options with a warning time
of less than 12 months.
Achieve a level of training that maintains core skills and professional standards across all outputs.
Achieve mission capability for assigned tasks.
Achieve Hydroscheme 2007-10 data and surveying tasking requirements to meet national hydrographic surveying and
charting obligations.
Table 1.6.3—2008-09 Force Element Targets
Output 1.2.3
[1]
4
Adelaide class frigates
857 URD
8
Anzac class frigates
2,091 URD
Output 1.2.4
16
Seahawks
3,100 Flying Hours
[2]
6
Sea Kings
1,100 Flying Hours
[3]
13
Squirrels
[4]
4,000 Flying Hours
79
Chapter Six – Planned Outcome Performance
Output 1.2.5
14
Armidale class patrol boats
3,500 URD
[5]
Output 1.2.6
6
Submarines
684 URD
[6]
1
Oil Tanker
280 URD
[7]
1
Replenishment Ship
6
Coastal mine hunters
2
Auxiliary minesweepers
730 URD
2
Clearance diving teams
730 URD
1
Heavy landing ship
Output 1.2.7
365 URD
Output 1.2.8
2,088 URD
[8]
Output 1.2.9
365 URD
642 URD
[9]
2
Amphibious landing ships
6
Heavy landing craft
2
Hydrographic ships
4
Survey motor launches
1
Laser airborne depth sounder aircraft
1
Deployable geospatial support team
365 URD
1
Australian Hydrographic Office
249 URD
1
Naval Air Station Weather and Oceanographic Centre
240 URD
2
Mobile Meteorological and Oceanographic (METOC)
teams
730 URD
1,958 URD
[10]
Output 1.2.10
730 URD
Navigational Chart Productions:
• New charts/editions
• Electronic navigational chart cells
1,148 URD
[11]
900 Flying Hours
[12]
50
160
Defence Support:
• New Military Geographic Information (MGI)
products/editions
• MGI foundation datasets
Oceanographic database production:
• Web Enabled Datasets
10
6
6
Notes
1. Unit Ready Days (URD) are the number of days that a force element is available for tasking, by the Fleet Commander,
outside of major maintenance and within planned readiness requirements or in accordance with contracted availability.
2. During 2008-09, a program of equipment modifications to the Seahawk fleet will be completed and progressively more
aircraft will become available for training and employment at sea. With more aircraft available, flying hours are scheduled to
return to the pre-modification program levels over the next couple of financial years.
3. Reflects lower flying hour’s requirement for training due to the proximity of the transition from Sea King to the MRH-90
helicopters.
4. Twelve aircraft are operated, the thirteenth aircraft is held for attrition purposes.
5. The contracted availability is 3,500 days, with the option for the Government to purchase up to an additional 600 days of
availability annually to meet emerging requirements.
6. HMA Ships Sheean and Rankin will remain in full cycle docking for all of 2008-09. HMAS Dechaineux will be in full cycle
docking until late 2008 and HMAS Collins will commence mid-cycle docking in late 2008, with expected completion in
early 2009.
7. HMAS Sirius is scheduled for refit in April 2009, with expected completion in late 2009.
8. HMAS Huon is scheduled for refit in early 2009.
9. HMAS Kanimbla is scheduled for refit in mid-2008, with expected completion in late 2008.
10. HMA Ships Balikpapan, Brunei, and Wewak are scheduled for refits in 2008-09.
11. HMA Ships Mermaid and Paluma are scheduled for Hydrographic Survey System Upgrade in October 2008 – March 2009
and December 2008 – May 2009 respectively.
12. The Laser airborne depth sounder aircraft is scheduled to return to operations, from a survey system upgrade, in
August 2008.
80
Chapter Six – Planned Outcome Performance
Cost summary for output group 1.2
Table 1.6.4—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
1,312,505
1,431,183
1,525,822
1,595,543
Suppliers
1,355,147
1,549,104
1,572,791
1,641,155
Grants
Depreciation and amortisation
–
–
–
–
1,015,076
950,100
933,679
977,557
Finance cost
–
–
–
–
31,684
31,771
31,778
31,902
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
3,714,412
3,962,157
4,064,069
4,246,156
-52,052
Write-down of assets and impairment of assets
INCOME
Revenues
Goods and services
-47,647
-49,159
-49,598
Other revenue
-5,049
-59
-57
-60
Total revenue
-52,697
-49,218
-49,655
-52,112
Gains
Reversals of previous asset write-downs
-25,500
-23,000
-20,200
-18,400
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
-25,500
-23,000
-20,200
-18,400
Total income
-78,197
-72,218
-69,855
-70,512
3,636,215
3,889,939
3,994,214
4,175,644
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Net cost of 1.2 Navy Capabilities
Table 1.6.5—Cost summary by output
2008-09
Budget
estimate
$’000
Output 1.2.1 – Navy Headquarters
27,906
38,306
42,977
39,113
Output 1.2.2 – Fleet Headquarters
317,718
333,373
334,203
365,802
Output 1.2.3 – Capability for Major Surface Combatant
Operations
1,098,741
1,146,469
1,164,551
1,225,497
Output 1.2.4 – Capability for Naval Aviation Operations
333,608
350,566
352,037
370,172
Output 1.2.5 – Capability for Patrol Boat Operations
113,573
123,520
127,040
132,949
Output 1.2.6 – Capability for Submarine Operations
477,655
486,638
493,902
520,538
Output 1.2.7 – Capability for Afloat Support
105,705
104,772
113,670
130,033
Output 1.2.8 – Capability for Mine Warfare
176,880
187,574
194,641
202,863
Output 1.2.9 – Capability for Amphibious Lift
147,695
167,062
169,209
160,809
77,542
78,986
79,794
84,497
Output 1.2.10 – Capability for Hydrographic and
Oceanographic Operations
Output 1.2.11 – Navy Systems Command
Net cost of output group 1.2
759,194
872,674
922,190
943,370
3,636,215
3,889,939
3,994,214
4,175,644
81
Chapter Six – Planned Outcome Performance
Output Group 1.3 – Army Capabilities
Output group 1.3: Army Capabilities
The Army contributes to the achievement of the Government’s defence objectives through the provision of capabilities for land
and special operations. The Army also provides forces for peacetime national tasks, including forces with a capability to
enhance the national domestic security response to terrorist, chemical, biological, radiological or explosive incidents. The Army
provides capabilities that centre around special forces; light and medium combined arms operations; army aviation; combat and
logistic support; and units for protective operations. The Army intends to achieve its performance milestones in 2008-09 by
balancing the requirements to support operations with the need to meet extant preparedness requirements and to develop the
Army’s core capabilities.
In 2008-09, the Army’s first priority will be to continue to support forces and individuals deployed on operations. Army will remain
heavily committed across a spectrum of operations at the domestic, regional and global level.
The Army will continue to increase its ability to sustain a brigade group offshore for extended periods and a battalion group for
short-notice contingency operations. In particular, the development of the Army’s core capabilities in 2008-09 will focus on
continued introduction of the Hardened and Networked Army and the Enhanced Land Force initiatives, to improve its ability to
generate adequate combat weight, support deployed forces, and contribute to domestic security.
The Army, in consultation with Chief of Capability Development Group and the DMO, will continue to develop its combat weight
through improvements in the mobility, firepower and protection of existing force elements by:
• continuing to raise a second mechanised Battle Group based on 7th Battalion RAR and an additional motorised Battle
th th
Group based on 8 /9 Battalion RAR
• continuing to develop 1st Armoured Regiment M1A1 tank capability
• continued delivery of the Bushmaster Protected Mobility Vehicle into service
• continuing procurement activities for the MRH-90 helicopter to provide additional troop lift
• implementing the operational capability of the Army’s armed reconnaissance helicopters
• continuing the introduction into service of upgraded M-113AS4 armoured personnel carrier fleet
• continuing procurement activities for the acquisition of protected self-propelled and lightweight towed 155mm artillery
systems and supporting command and control systems
• developing a detailed second-pass proposal to the Government supporting a further phase of the soldier modernisation
project (concentrating on Command, Control, Communication, Computers, lethality and survivability)
• submitting a second-pass proposal to the Government for the acquisition of enhanced direct fire support weapon systems
for the close combat force
• acquisition of an improved counter landmine and counter-IED capability
• providing a boosted Explosive Ordnance and Improvised Explosive Device disposal capability
• developing a first pass proposal to the Government in late 2008 to provide Protected Light Vehicles.
The Army will continue to develop its Network Centric Warfare capability through:
• continuing the first phase of a multiphase project aimed at enhancing land force communications through the introduction of
a fleet of digital combat net radios
• supporting Capability Development Group (CDG) in developing a detailed second-pass proposal to the Government for the
adoption of a mounted and dismounted Battle Management System.
The Army will continue to develop its contribution to domestic security operations, primarily through its ongoing development of
the Tactical Assault Group (East) and the Incident Response Regiment.
The Army continues to develop and better its capability to maintain situational awareness through:
• the development of a tactical unmanned aerial vehicle capability
• the development of vehicle mounted surveillance systems
• the continued introduction into service of improved thermal imagery capabilities.
The Army is closely managing a number of personnel, logistic and infrastructure risks. These include the need to maintain
sufficient trained personnel to support the introduction of new capabilities while maintaining preparedness requirements; to
sustain key Army fleets during a period of continued high operational tempo; and to manage real cost increases due to the
strong growth in the construction industry over the past few years.
Key performance indicators
•
•
•
Provide timely, accurate and considered advice on Army capabilities to the CDF, the Secretary and the Government.
Achieve levels of preparedness directed by the CDF.
Achieve a level of training that maintains core skills and professional standards across all outputs.
Table 1.6.6—2008-09 Force Element Targets
Aircraft
Number
6
CH-47D Chinook
Flying Hours
1,270
S-70A9 Black Hawk
34
7,500
B-206 Kiowa
41
10,360
AR Helicopter Tiger
14
5,520
82
Chapter Six – Planned Outcome Performance
Aircraft
MRH-90 Multi Role
Number
2
Flying Hours
600
3
2,000
B300 King Air 350
Cost summary for output group 1.3
Table 1.6.7—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
2,566,784
2,792,311
2,936,934
3,125,863
Suppliers
1,474,789
1,655,722
1,794,153
1,830,195
Grants
Depreciation and amortisation
78
79
80
81
616,608
588,786
527,729
496,243
Finance cost
–
–
–
–
18,121
18,170
18,175
18,245
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
4,676,379
5,055,068
5,277,070
5,470,626
Write-down of assets and impairment of assets
INCOME
Revenues
Goods and services
-65,986
-67,145
-68,687
-70,924
Other revenue
–
–
–
–
Total revenue
-65,986
-67,145
-68,687
-70,924
-41,700
-42,300
-43,400
-40,000
–
–
–
–
Gains
Reversals of previous asset write-downs
Net gain from sale of assets
Other gains
–
–
–
–
Total gains
-41,700
-42,300
-43,400
-40,000
-107,686
-109,445
-112,087
-110,924
4,568,693
4,945,623
5,164,983
5,359,702
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Output 1.3.1 Army Command and Executive
331,834
363,161
391,108
405,987
Output 1.3.2 Capability for Special Operations
330,627
356,356
370,476
383,324
Output 1.3.3 Capability for Medium Combined Arms
Operations
644,294
657,466
655,470
669,244
1,112,436
1,166,250
1,240,258
1,305,019
Output 1.3.5 Capability for Army Aviation Operations
415,777
508,610
540,117
558,064
Output 1.3.6 Capability for Combat Support to
Operations
193,640
227,877
245,107
255,857
Output 1.3.7 Capability for Operational Logistics
Support to Land Forces
304,375
326,022
334,624
349,222
Output 1.3.8 Capability for Reserve Protective
Operations
364,226
389,743
405,817
413,033
Output 1.3.9 Training Support Army
871,483
950,139
982,006
1,019,952
4,568,693
4,945,623
5,164,983
5,359,702
Total income
Net cost of 1.3 Army Capabilities
Table 1.6.8—Cost summary by output
Output 1.3.4 Capability for Light Combined Arms
Operations
Net cost of output group 1.3
83
Chapter Six – Planned Outcome Performance
Output Group 1.4 – Air Force Capabilities
Output group 1.4: Air Force Capabilities
The Air Force applies capabilities to protect Australia and its national interests by providing a unique combination of flexibility,
reach, precision and speed of response. The Air Force’s vision is to be a balanced, networked, expeditionary force that
conducts air and surface operations focusing on air combat, combat support of air operations, surveillance and response, and
airlift. These capabilities are supported through our command, training and integrated operational support agencies.
The Air Force’s capabilities can be deployed globally and rapidly to achieve the ADF’s key tasks of defending Australia,
contributing to the security of the region and supporting Australia’s wider interests through participation in coalition operations
and disaster responses. In particular, the Air Force’s air combat capability is essential for securing control of the air, a
prerequisite for most other ADF operations.
The Air Force is undergoing the largest upgrade of capabilities since WWII that, when combined with the ongoing high
operational tempo, is placing considerable pressure on a limited workforce. The high level of new capability deliveries and
upgrades over the coming decade will require careful management to ensure that current capabilities are maintained during
transition for the required levels of preparedness. This will require continuing modest growth to the Air Force workforce. The Air
Force is developing to systematically review organisational effectiveness and efficiency to implement sustainable improvements
which will optimise the delivery of air power with available resources.
As part of the Air Force’s enduring goal of achieving and maintaining a modern, networked force, the F-111 capability will be
withdrawn from service in 2010 with the strike role transitioning to a fleet of 24 F/A-18F Block II Super Hornet multi-role aircraft
and the upgraded F/A-18A/B Hornet. The introduction of the KC-30B multi-role tanker transport aircraft, the Wedgetail airborne
early warning and control aircraft, and the acquisition of the AGM-158 Joint Air-to-Surface Stand-off Missile for the F/A-18A/B
Fleet, improved short-range, day and night, all-weather precision guided weapons will ensure that the Air Force maintains its
capability edge.
The initial operating capability of the four C-17 Globemaster III aircraft will be improved by self protection modifications and role
expansion to include tactical airdrop.
Air Force will continue to work hard in a co-operative labour market to maintain its strong achievements in recruiting and
retention. Substantial remuneration packages are being offered by industry, increasing pressure on qualified specialists in the
health, technology and engineering employment areas. A continuing trend is that the average length of service in the Air Force
is reducing, resulting in reduced experience levels across the force. A worldwide shortage of pilots will continue to provide
employment opportunities for the trained workforce with national and international carriers. Air Force is countering the threat in
the short term with a targeted retention bonus and by developing a new employment system designed to protect capability in the
long term.
Air Force is undertaking a comprehensive review of Professional and Military Education and Training to enhance retention and
ensure personnel are fully prepared to lead the delivery of air power in a networked environment.
Key performance indicators
•
•
•
•
Provide timely, accurate and considered advice on Air Force capabilities to the CDF, Secretary and the Government.
Achieve levels of preparedness directed by the CDF for military response options with a warning time of less than 12
months.
Achieve a level of training that maintains core skills and professional standards across all outputs.
Achieve mission capability for assigned tasks.
Table 1.6.9—2008-09 Force Element Targets
Output 1.4.3: Capability for Training Support
Aircraft
Number
57
Flying Hours 2008-09
20,000
8
5,700
C-130H Hercules
Number
12
Flying Hours 2008-09
3,200
C-130J Hercules
12
7,000
C-17 Globemaster III
4
5,000
KC-30B
1
100
14
4,100
B737 BBJ
2
1,414
CL604 Challenger
3
2,403
PC-9/SA (T)
B300
Output 1.4.4: Capability for Airlift Operations
Aircraft
DHC-4 Caribou
Output 1.4.6: Capability for Strategic Surveillance and Maritime Attack Operations
Aircraft
P-3 Orion
AEW & C
[1]
84
Number
19
Flying Hours 2008-09
7,900
1
350
Chapter Six – Planned Outcome Performance
Output 1.4.7: Capability for Air Combat Operations
Aircraft
Number
[2]
71
F/A-18 Hornet
[3]
3,250
33
7,600
4
1,030
15
F-111
Hawk Lead-in Fighter
PC-9 Forward Air Control training aircraft
Flying Hours 2008-09
11,500
Output 1.4.8: Capability for Aerospace Operational Support
Aircraft
Number
Flying Hours 2008-09
3
822
PC-9
Notes
1. Subject to expected delivery schedule.
2. Total number is made up of 55 F/A-18A and 16 F/A-18B.
3. An additional 12 F-111G aircraft are in storage awaiting disposal action and a further two F-111G have been broken down
for spares.
Cost summary for output group 1.4
Table 1.6.10—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
1,340,578
1,442,652
1,537,766
1,601,505
Suppliers
1,479,011
1,856,504
1,964,699
2,070,516
Grants
Depreciation and amortisation
–
–
–
–
1,176,091
1,175,180
1,137,937
1,124,817
Finance cost
–
–
–
–
19,693
19,747
19,752
19,829
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
4,015,372
4,494,084
4,660,155
4,816,666
-123,863
Write-down of assets and impairment of assets
INCOME
Revenues
Goods and services
-115,981
-117,264
-119,958
Other revenue
–
–
–
–
Total revenue
-115,981
-117,264
-119,958
-123,863
Gains
Reversals of previous asset write-downs
-32,700
-34,600
-36,300
-41,500
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
-32,700
-34,600
-36,300
-41,500
Total income
Net cost of 1.4 Air Force Capabilities
-148,681
-151,864
-156,258
-165,363
3,866,691
4,342,220
4,503,897
4,651,303
85
Chapter Six – Planned Outcome Performance
Table 1.6.11—Cost summary by output
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
801,322
883,995
916,106
938,731
36,388
45,533
44,866
44,639
Output 1.4.3: Capability for Training Support
202,316
219,946
230,784
235,128
Output 1.4.4: Capability for Airlift Operations
594,853
660,152
690,787
728,504
Output 1.4.5: Capability for Combat Support of
Air Operations
207,135
275,927
311,818
335,088
Output 1.4.6: Capability for Strategic
Surveillance and Maritime Attack Operations
709,284
837,655
878,872
897,049
Output 1.4.7: Capability for Air Combat
Operations
1,222,659
1,321,530
1,330,702
1,370,085
Output 1.4.8: Capability for Aerospace
Operations
92,734
97,481
99,962
102,079
3,866,691
4,342,220
4,503,897
4,651,303
Output 1.4.1: Air Force Headquarters
Executive and Agencies
Output 1.4.2: Air Command Headquarters and
Executive
Net cost of output group 1.4
86
Chapter Six – Planned Outcome Performance
Output Group 1.5 – Intelligence Capabilities
Output Group 1.5—Intelligence Capabilities
The Intelligence, Security and International Policy Group has three primary responsibilities; to deliver intelligence capability for
Defence, lead the development of security policy, standards and plans to meet Defence’s protective security requirements, and
provide international policy advice to the Government.
Defence’s ability to preserve its capability edge, against the intelligence capabilities output group, is critically dependent on the
availability of skilled and experienced ADF and civilian personnel to support ongoing operations, to acquire and exploit new
technology, and maintain effective security. Given the reliance on experienced personnel, the Group has increased and
broadened its recruitment and retention strategies through programs such as targeted university recruitment drives, and greater
incentives for staff with specific language and technical talents. These initiatives will continue through 2008-09.
The Defence Security Authority leads the Defence security network in protecting sensitive Defence information and material by
developing protective security policy and standards appropriate to Defence’s circumstances. The main risk to security is the
failure to recommend appropriate security risk mitigation measures to counter emerging security threats and risks. This risk is
being managed by strengthening the approach to security through an effective security governance framework in Defence.
The International Policy Division provides the Government, and Defence stakeholders, with policy advice on international policy
issues, ADF operations and international defence activities. The main risk for the Division is the failure to provide
comprehensive, timely, tailored, and pro-active products in response to changes in Australia’s strategic environment. This risk is
being managed by continuing to develop and build upon Defence’s international relationships, ensuring alignment between
Defence’s policy and operational objectives, and maintaining strong effective relationships with allies and counterpart
organisations through deployed policy advisers.
Key performance indicators
•
•
•
•
•
•
Support the Government, Defence and other agencies with high quality intelligence and policy advice.
Attract, develop and maintain a skilled workforce.
Achieve international best practice in supporting military, police and wider security operations.
Strengthen the approach to security.
Develop ‘next generation’ intelligence, geospatial and security capabilities.
Deliver capability dividends through international partnerships.
87
Chapter Six – Planned Outcome Performance
Cost summary for output group 1.5
Table 1.6.12—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Employees
269,147
300,025
321,055
330,344
Suppliers
353,441
424,825
413,441
417,509
–
–
–
–
59,885
56,460
46,412
37,838
–
–
–
–
1,591
256
149
-11
–
–
–
–
EXPENSES
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment of assets
Net losses from sale of assets
Other expenses
–
–
–
–
Total expenses
684,064
781,567
781,057
785,680
-27,220
INCOME
Revenues
Goods and services
-36,188
-37,130
-29,373
Other revenue
-81
-89
-90
-92
Total revenue
-36,269
-37,219
-29,463
-27,311
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Gains
Total gains
–
–
–
–
Total income
-36,269
-37,219
-29,463
-27,311
Net cost of 1.5 Intelligence Capabilities
647,795
744,348
751,594
758,369
Table 1.6.13—Cost summary by output
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
441,893
509,032
514,164
519,981
65,502
77,379
80,775
78,533
Output 1.5.3 International Policy
140,400
157,937
156,656
159,855
Net cost of output group 1.5
647,795
744,348
751,594
758,369
Output 1.5.1 Intelligence
Output 1.5.2 Security
88
Chapter Six – Planned Outcome Performance
Defence Cooperation Program
The Defence International Engagement Plan provides a robust policy for business planning and
management of Defence’s international engagement, and particularly for the Defence Cooperation
Program (DCP). The aims and objectives of the DCP are to support the Government’s strategic
objectives by:
•
contributing to regional security
•
working with allies, regional partners and others to shape the global and regional environment in a
way favourable to Australia and the ADF
•
consolidating acceptance of Australia as an obvious and legitimate participant in deliberations on
issues that affect regional security
•
encouraging and assisting with the development of defence self-reliance of regional countries.
These objectives are enhanced through assistance to regional security forces in the areas of defence
reform and governance, strategic planning, command and control, counter terrorism, maritime
security, peacekeeping, humanitarian assistance and disaster relief, communications, logistic support,
education and training, and preparedness for chemical, biological, radiological and explosive
incidents and pandemics. Through assisting the development of professional and sustainable defence
forces and Pacific police forces in the region, the DCP is improving the ability of regional countries to
contribute to national and regional security objectives. Australian assistance includes ADF advisers, a
range of training initiatives and bilateral exercises, capacity building initiatives, and equipment and
infrastructure projects.
A key element of the DCP is the Pacific Patrol Boat Program (PPBP), through which Australia has
provided 22 Patrol Boats (with associated personnel and technical assistance) to 12 countries. The
PPBP engages Pacific navies and police maritime wings and is designed to help Pacific island
countries improve their ability to independently police their maritime zones. Other important areas of
focus are the development of the Timor-Leste Defence Force, the Papua New Guinea Defence Reform
Program and the Joint Philippines Australia Army Watercraft Project.
89
Chapter Six – Planned Outcome Performance
Table 1.6.14—Defence Cooperation funding
Papua New Guinea
2007-08
Estimated
actual
$m
2008-09
Budget
estimate
$m
9.773
13.357
South Pacific
Timor-Leste
8.500
8.197
Vanuatu
1.400
1.366
Solomon Islands
1.900
1.689
Tonga
2.200
2.047
Western Samoa
0.500
0.462
Cook Islands
0.450
0.373
Fiji
0.504
0.192
Marshall Islands
0.850
0.775
Federated States of Micronesia
0.897
0.897
Tuvalu
1.400
1.186
Kiribati
0.765
0.765
Palau
0.808
0.858
Multilateral General Assistance
13.025
18.940
Sub-total South Pacific
33.199
37.747
[1]
South-East Asia
Singapore
0.121
0.150
Philippines
5.792
10.140
Thailand
3.068
2.922
Malaysia
4.547
4.466
Indonesia
5.009
5.105
Vietnam
2.128
1.928
Cambodia and Laos
0.764
1.187
Brunei
0.093
0.063
21.522
25.961
9.454
8.453
Sub-total South-East Asia
Other regional activities
Total Defence Cooperation
funding
73.948
85.518
Note
1. Predominantly relates to support of the Pacific Patrol Boat Program,
including the Life Extension Program.
90
Chapter Six – Planned Outcome Performance
Output Group 1.6 - Defence Support
Output group 1.6: Defence Support
The Defence Support Group (DSG) is a multi-faceted business that brings together responsibility for delivering most of the
shared services which support the ADF and other Defence Groups. It is a fundamental part of Defence capability, interacting
with a wide range of companies.
Services provided by DSG include:
• business support services including financial, insurance, records management, library and publishing services (Defence
Support Executive)
• strategic health policy, health services to ADF members and preparing ADF health personnel for operational deployment
(Health Services Division)
• personnel administration, ADF housing and a range of personnel support functions for both ADF personnel and their
families and civilian personnel (Personnel Services Division)
• legal services (Defence Legal Division)
• development, management and sustainment of the Defence estate (Infrastructure Division)
• base support services including catering, accommodation, cleaning, grounds maintenance and access control and a range
of administrative and other support services (National Operations Division).
Like other Defence Groups, DSG is experiencing difficulty in obtaining, and retaining, critical skills including health professionals
(both military and civilians), military lawyers, engineers, project managers and financial staff. The Group is working on improving
workforce planning on a range of skilling activities to grow staff in-house and on contracting strategies (e.g. in health).
Increasing health support costs in the civilian health sector and shortages of professional health staff (in both Defence and the
community) continue to affect the delivery of health support.
In consultation with VCDF Group, DSG is reviewing health support arrangements including health delivery requirements and
escalating costs. DSG entered into new contracts in 2007-08 for the provision of a range of health support services. The new
contracting arrangements are being monitored to assess performance and cost.
DSG is closely managing and monitoring the risks associated with delivering the substantial increase in the Major Capital
Facilities Program over the next five years to support major capability initiatives. This includes the ability to obtain staff to project
manage the works, to obtain timely Parliamentary Works Committee consideration and approval, and industry’s capacity to
undertake the works. As part of the White Paper development, DSG will progress work on affordability and sustainability issues
affecting the Defence estate.
Key performance indicators
•
•
•
•
•
•
•
•
•
Deliver DSG products and services on time and on budget to support the development and delivery of Defence capability.
Improve DSG’s business and governance as part of broader Defence reform and implementation of Defence’s response to
the Defence Management Review. Implement revised responsibilities and accountabilities for base support.
Improve DSG engagement with industry to develop collaborative relationships and ensure effective and efficient products
and services are delivered.
Optimise ADF operational capability through the development of deployable health capabilities to support a wide range of
operations to which the ADF could be committed.
Optimise ADF operational capability through the deployment of ADF lawyers to provide access to relevant and timely legal
support.
Provide ADF members with high quality service residences, relocation and travel services using cost-effective contract
arrangements.
Manage, develop and sustain the Defence estate to meet Defence and Government requirements by developing and
delivering major estate and environment programs on time and to budget.
Provide professional support services to ADF members and families, including delivery of family support programs and
bereavement support in the situation of death and serious casualties.
Provide for the timely recognition to ADF members and ex-serving members in accordance with the Australian and Imperial
Honours and Awards systems and civilian long service recognition.
91
Chapter Six – Planned Outcome Performance
Cost summary for output group 1.6
Table 1.6.15—Cost summary by output group[1]
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
1,204,934
1,320,790
1,411,254
1,473,917
Suppliers
1,406,578
1,635,232
1,704,133
1,745,104
1,390
1,407
1,424
1,456
672,867
783,653
789,172
542,234
48,925
59,956
61,583
63,206
1,632
1,637
1,637
-120
–
–
–
–
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment of assets
Net losses from sale of assets
Other expenses
941
926
937
958
Total expenses
3,337,266
3,803,601
3,970,140
3,826,754
-256,632
INCOME
Revenues
Goods and services
-227,235
-235,031
-244,455
Other revenue
-1,408
-1,546
-927
-948
Total revenue
-228,643
-236,577
-245,382
-257,580
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Gains
Total gains
Total income
Net cost of 1.6 Defence Support
Note
1. Estimate excludes administered items.
–
–
–
–
-228,643
-236,577
-245,382
-257,580
3,108,623
3,567,023
3,724,758
3,569,174
Table 1.6.16—Cost summary by output
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Output 1.6.1 – Defence Support Executive
214,955
243,343
254,293
269,363
Output 1.6.2 – Defence Health Services
280,048
307,509
342,995
361,285
Output 1.6.3 – Personnel Services
432,609
475,091
504,692
521,927
Output 1.6.4 – Defence Legal
57,687
69,584
72,230
65,896
Output 1.6.5 – Infrastructure
588,641
753,295
770,792
813,700
Output 1.6.6 – National Operations
1,534,682
1,718,202
1,779,756
1,537,003
Net cost of output group 1.6
3,108,623
3,567,023
3,724,758
3,569,174
92
Chapter Six – Planned Outcome Performance
Output Group 1.7 – Defence Science and Technology
Output group 1.7: Defence Science and Technology
The core role of the Defence Science and Technology Organisation (DSTO) is to provide science and technology support to
Defence. DSTO also supports the research and technological needs of Australia’s other national security agencies. The
organisation directly contributes to Defence outcomes through the enhancement and optimisation of current capabilities, and in
particular through optimisation and risk reduction of new capabilities.
Supporting both Defence and national security agencies places more pressure on DSTO to maintain a workforce that has an
edge in science and technology expertise, while at the same time trends indicate a reducing global pool of science and
technology professionals and a more competitive labour market in this domain. To address this ongoing risk to its capability,
DSTO partners with universities, industry and international organisations to foster excellence in science, develop people with
the right skills, and leverage off external skill bases. In line with a government election commitment, DSTO is developing
additional measures to strengthen its links with industry and academia.
From an organisational perspective, DSTO must balance its responsibilities to meet broader national security requirements with
maintaining an appropriate level of support to Defence. To achieve this balance, the organisation has established management
and governance processes to integrate broader national security activities into the overall research program.
DSTO also needs to achieve a balance between meeting the immediate needs of DSTO’s clients, developing the capacity to
meet future needs, and understanding the likely implications for Defence of emerging technologies. Consequently, DSTO has
established an annual science and technology planning and review process to define the organisation’s future capability targets
and hence guide the level of effort assigned to developing its capability. It also maintains a long range research program that
has a particular focus on identifying emerging technologies and investigating their impacts on or threats to Defence capabilities.
Key performance indicators
•
•
•
•
•
Support the Minister with high quality advice on matters of defence science and technology.
Provide effective, relevant and timely science and technology advice/solutions to support military operations and enhance
mission effectiveness.
Provide effective assistance and support to capability acquisition decision making and to the sustainability of the current
force.
Identify and/or develop new technologies relevant to Defence.
Maintain a strategically-designed program of forward-looking research supporting DSTO’s science and technology capability
needs.
93
Chapter Six – Planned Outcome Performance
Cost summary for output group 1.7
Table 1.6.17—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Employees
252,407
285,331
302,965
315,931
Suppliers
106,081
116,788
108,757
104,455
–
–
–
–
17,924
18,253
18,343
18,008
–
–
–
–
114
115
115
115
–
–
–
–
EXPENSES
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment of assets
Net losses from sale of assets
Other expenses
–
–
–
–
Total expenses
376,527
420,486
430,179
438,509
-26,470
INCOME
Revenues
Goods and services
-21,173
-25,059
-25,634
Other revenue
-3,364
-5,090
-5,101
-5,215
Total revenue
-24,537
-30,149
-30,735
-31,684
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Gains
Total gains
–
–
–
–
Total income
-24,537
-30,149
-30,735
-31,684
Net cost of 1.7 Defence Science and Technology
351,990
390,337
399,444
406,825
94
Chapter Six – Planned Outcome Performance
Output Group 1.8 – Chief Information Officer
Output group 1.8: Chief Information Officer
The Chief Information Officer Group provides Defence with dependable, secure and integrated information and communication
technology (ICT) capabilities to support efficient and effective conduct of Defence operations, and the conduct of Defence
business.
The Group monitors and manages a number of significant risks across the information domain. These include the social and
economic challenges associated with the recruiting, retention and development of appropriately skilled staff. This risk is
managed through strategies such as the wider use of IT Cadetships and the Defence Graduate Development program. Other
risks include increasingly sophisticated security threats that may outpace defensive capabilities. Liaison and cooperation with
other Defence and allied agencies are used to monitor, identify and address new and emerging threats to information systems
security. Threat risk assessments are conducted when new or changed systems are introduced.
Key performance indicators
•
•
•
•
•
•
•
Provide timely and high-quality ICT advice to the CDF, the Secretary and the Minister.
Provide targeted ICT services that meet Defence needs.
Improve the performance of the core Defence networks.
Develop and implement a Defence ICT Strategy.
Develop a way forward for Defence enterprise systems.
Develop and manage secure information sharing capabilities to support planning and conduct of ADF operations, exercises
and Defence business.
Significantly reduce costs and time to implement ICT solutions for Defence.
Cost summary for output group 1.8
Table 1.6.18—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
90,698
98,117
103,135
110,875
524,144
613,327
623,868
634,036
EXPENSES
Employees
Suppliers
Grants
Depreciation and amortisation
–
–
–
–
89,102
91,006
91,719
90,967
Finance cost
–
–
–
–
2,423
2,534
2,543
2,703
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
706,367
804,984
821,265
838,581
Write-down of assets and impairment of assets
INCOME
Revenues
Goods and services
-6,383
-5,906
-5,038
-5,202
Other revenue
–
–
–
–
Total revenue
-6,383
-5,906
-5,038
-5,202
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
–
–
–
–
-6,383
-5,906
-5,038
-5,202
699,984
799,078
816,226
833,379
Gains
Total income
Net cost of 1.8 Chief Information Officer
95
Chapter Six – Planned Outcome Performance
Output Group 1.9 – Vice Chief of the Defence force
Output group 1.9: Vice Chief of the Defence Force
Vice Chief of the Defence Force Group (VCDF) provides strategic-level management and situational awareness of current and
potential ADF commitments for Defence and other government agencies; delivers joint military professional education and
training; develops joint warfare doctrine; manages joint logistics; manages joint capabilities; provides input to joint capability
development; and undertakes initiatives to develop the capacity of the ADF Reserves to support ADF capability.
The VCDF enables Defence to meet its obligations under Outcome 1 through the provision of military strategic effects and
commitments advice and planning, joint professional education and training, logistics support, and joint capability management.
The VCDF has responsibility for the delivery of the ADF Parliamentary Program which provides parliamentarians with first hand
experience of the ADF, its people and its capabilities. The Group also oversees Australia’s Federation Guard which contributes
specialist ceremonial ADF functions for events of military or public significance.
The VCDF monitors and manages risks associated with changes to Australia’s strategic environment that have an effect on
current and potential commitments. Other risks currently being monitored and managed relate to the provision of logistic support
where it is affected by resource constraints, and risk associated with the lack of skilled and experienced military and civilian
personnel.
Key performance indicators
•
•
•
•
•
•
Provide timely and high quality advice on strategic aspects of current and potential commitments to the CDF, the Secretary
and the Minister.
Enhance ADF joint and combined operational capability.
Enhance the capacity of the Reserves to support ADF capability.
Provide logistics support and services for ADF operations.
Implement the Defence Strategic Logistics Plan.
Continue to improve inventory management.
Cost summary for output group 1.9
Table 1.6.19—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Employees
153,622
161,985
168,499
172,322
Suppliers
355,449
396,404
404,181
416,403
EXPENSES
Grants
Depreciation and amortisation
Finance cost
–
–
–
–
339
321
261
106
–
–
–
–
26,419
27,624
27,721
29,457
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
535,829
586,333
600,662
618,288
Write-down of assets and impairment of assets
INCOME
Revenues
Goods and services
-241,319
-245,559
-251,202
-259,377
Other revenue
-32,394
-35,580
-35,655
-36,452
Total revenue
-273,713
-281,139
-286,857
-295,829
-100
-100
-100
-100
–
–
–
–
Gains
Reversals of previous asset write-downs
Net gain from sale of assets
Other gains
–
–
–
–
Total gains
-100
-100
-100
-100
-273,813
-281,239
-286,957
-295,929
262,016
305,094
313,705
322,359
Total income
Net cost of 1.9 Vice Chief of the Defence Force
96
Chapter Six – Planned Outcome Performance
Output Group 1.10 – Joint Operations Command
Output group 1.10: Joint Operations Command
The Joint Operations Command (JOC) organisation consists of the headquarters and specialist components (Special
Operations, Border Protection Command, Northern Command and when raised, Joint Task Forces). The headquarters plans,
mounts, conducts and controls all Defence operations. Embedded support elements include movements, welfare, logistics and
joint exercises.
The Chief of Joint Operations is also responsible to the ADF’s commitment to the Coastwatch civil surveillance program and
Border Protection Command tasking, providing maritime surveillance assets that are tasked routinely in accordance with the
Government’s direction. The Customs component of the program is reported at Output Four of the Customs section of the
Attorney-General’s PBS.
JOC monitors and manages several risks affecting both operational capability and organisational capacity. These include
increased pressure on the command function resulting from concurrency pressures, which is managed through the ADF
preparedness reporting system. This system is now well defined and provides monthly assessment of capability options for the
ADF to meet the Government’s operational objectives. The reporting system identifies deficiencies and indicates remediation
priorities. The reporting system allows the CDF and his senior commanders to apply appropriate risk management principles to
command of the ADF.
Other risks under management include the unavailability of a national inventory and delays in the remediation of mission
essential equipment. Joint Logistics Command, in concert with the DMO, is managing this process and implementing mitigation
strategies.
Key performance indicators
•
•
•
•
•
ADF forces are effectively deployed and sustained.
Command of ADF forces is effective and the Government’s strategic objectives for operations are achieved.
Achieve levels of preparedness directed by the CDF for forces identified for operational tasks.
Meet major ADF exercise commitments.
Successful move of the headquarters to Bungendore (NSW).
Cost summary for output group 1.10
Table 1.6.20—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
6,177
6,774
7,322
7,638
40,161
40,281
41,700
42,113
–
–
–
–
2,587
2,669
2,705
2,675
–
–
–
–
-6
-6
-6
-6
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
48,918
49,717
51,721
52,419
Suppliers
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment of
assets
INCOME
Revenues
Goods and services
-481
-489
-501
-517
Other revenue
–
–
–
–
Total revenue
-481
-489
-501
-517
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
–
–
–
–
-481
-489
-501
-517
48,437
49,229
51,220
51,903
Gains
Total income
Net cost of 1.10 Joint Operations
Command
97
Chapter Six – Planned Outcome Performance
Output Group 1.11 – Capability Development
Output group 1.11: Capability Development
Capability Development Group (CDG) develops and manages the Defence Capability Plan. CDG develops defence capability
investment proposals for Government consideration, and maintains a ‘sponsor’ role during the acquisition process and delivery
of the capability to the relevant Capability Manager. CDG has a close relationship with the DMO and the Capability Managers.
CDG monitors and manages the development of an executable Defence Capability Plan within fiscal and other resource
constraints. Key Defence planning guidance arising from the 2008 White Paper process will be analysed, joint capability studies
coordinated and monitored, and a coherent capability strategy will be produced to guide development of the Defence Capability
Plan 2009-19.
CDG will continue to refine the capability development process and ensure that it is well understood and applied uniformly within
Defence. CDG will also ensure that the process is synchronised with external stakeholders and well understood. The Group will
continue to build on its engagement with stakeholders, particularly industry and capability development organisations in other
countries. CDG will ensure that its people have the skills necessary to do the job and that the Group develops a sustainable
body of qualified people who will be available into the future.
Key performance indicators
•
•
•
Provide timely and high quality advice on strategic aspects of capability development to the CDF, the Secretary and the
Minister
Produce a Defence Capability Strategy to support Defence capability planning processes
Develop an affordable and executable Defence Capability Plan.
Cost summary for output group 1.11
Table 1.6.21—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
Suppliers
Grants
Depreciation and amortisation
Finance cost
24,712
24,693
25,696
26,295
317,938
515,623
325,414
443,372
–
–
–
–
269
274
276
271
–
–
–
–
Write-down of assets and impairment of
assets
–
–
–
–
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
342,919
540,590
351,385
469,938
–
–
–
–
INCOME
Revenues
Goods and services
Other revenue
–
–
–
–
Total revenue
–
–
–
–
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
–
–
–
–
Total income
–
–
–
–
342,919
540,590
351,385
469,938
Gains
Net cost of 1.11 Capability Development
98
Chapter Six – Planned Outcome Performance
Output Group 1.12 – Chief Finance Officer
Output group 1.12: Chief Finance Officer
The Chief Finance Officer Group (CFOG) is responsible for giving strategic financial advice and information to Ministers, the
Secretary, the CDF and Defence Senior Leaders. It provides a whole-of-Defence focus for planning, management, monitoring
and reporting of key deliverables to the Government, including Defence’s outputs.
The CFOG is responsible for Defence’s financial governance and assurance and manages Defence’s budget and its financial
policies, principles and practices in accordance with the Financial Management and Accountability Act 1997.
The CFOG drives Defence’s financial management and improvement programs through uniform financial management
approaches, a streamlined accountability structure, a financial controls framework, and training and skilling programs.
The Group monitors and manages a number of critical financial risks. These include managing key financial risks and
performing control testing, and establishing Tiger Teams to address financial risk areas of concern.
Portfolio budget pressures and risks are managed through a strong culture of prioritising resource management which is
supported by micro-economic reform.
The CFOG works with all Groups and Services to identify cost drivers for all key business elements.
Key performance indicators
•
•
•
•
Provide timely and high quality financial advice to the Minister, the Secretary and CDF.
Produce Defence’s Budget, Financial Statements and the annual Defence Management and Finance Plan within agreed or
statutory timeframes.
Reduce qualification of the Financial Statements.
Strengthen Defence’s costing capability.
Cost summary for output group 1.12
Table 1.6.22—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
374,090
442,850
520,577
552,380
31,172
36,578
29,821
31,323
–
–
–
–
2,148
6,808
8,266
2,787
–
–
–
–
EXPENSES
Employees
Suppliers
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment of
assets
28,230
28,053
28,039
27,787
Net losses from sale of assets
–
–
–
–
Other expenses
2
1
1
1
Total expenses
435,643
514,290
586,704
614,278
Goods and services
-2,975
-3,120
-3,520
-4,133
Other revenue
-3,245
-3,729
-3,737
-3,804
Total revenue
-6,220
-6,850
-7,257
-7,937
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
-7,700
-7,700
-7,700
-7,700
Total gains
-7,700
-7,700
-7,700
-7,700
INCOME
Revenues
Gains
Total income
-13,920
-14,550
-14,957
-15,637
Net cost of 1.12 Chief Finance Officer
421,723
499,741
571,747
598,641
99
Chapter Six – Planned Outcome Performance
Output Group 1.13 – People Strategies and Policy
Output 1.13 - People Strategies and Policy
Defence recognises that its people are fundamental to Defence capability. A primary objective of Defence is to ensure that there
is the correct balance of military and civilian personnel with the appropriate skills and experience to provide the capabilities
needed to undertake complex military operations, to support operations adequately across a number of fields, and to administer
the organisation. In this context, the role of the People Strategies and Policy Group (PSP) is to develop a People Strategy that
identifies the critical initiatives that must be pursued to generate the organisational capability required by Defence. This People
Strategy will be used to guide the development of organisation-wide policies, set priorities and plan, execute and evaluate the
Defence HR Plan to address attraction and recruitment, retention, remuneration and reward, people development, leadership
capability and the working environment.
Defence's need for skilled personnel has never been greater, and as technology increases, this need will grow. In order to
attract, train and retain required personnel, Defence must compete with the public and private sectors as an employer of choice.
The aim of the PSP Group is to ensure Defence is able to fulfil its commitment to its employees by generating attractive reward
and benefits frameworks, effective career development processes and an enabling culture that reflects the organisation’s values
for both ADF and APS employees. To achieve the organisational capability required by Defence, the PSP Group must develop
strategies and policies in close collaboration with partners across the organisation such as the DSG, the Services and other
Groups.
Key Performance Indicators
•
•
•
•
•
•
•
•
Provide timely and high quality advice on strategic aspects of people strategy and policy to the CDF, the Secretary and the
Minister.
Deliver an enhanced recruitment capability and outcome.
Provide robust workforce research and analysis to inform the development of strategies that generate Defence capability.
Provide a strategic, capability-led workforce plan for the total Defence workforce.
Develop people strategies and policies to conserve the workforce through establishing and maintaining the Australian
Defence Force as an employer of choice.
Improve effectiveness of occupational health and safety policies and practices.
Further improve complaint handling and resolution.
Deliver an improved youth development outcome for Australian Defence Force Cadets.
100
Chapter Six – Planned Outcome Performance
Cost summary for output group 1.13
Table 1.6.23—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
86,058
96,915
105,648
112,678
248,102
262,051
270,521
262,863
–
–
–
–
6,884
7,166
7,412
7,585
–
–
–
–
88
88
88
89
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
341,132
366,220
383,669
383,215
Goods and services
–
–
–
–
Other revenue
–
–
–
–
Total revenue
–
–
–
–
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
–
–
–
–
Total income
–
–
–
–
341,132
366,220
383,669
383,215
Suppliers
Grants
Depreciation and amortisation
Finance cost
Write-down of assets and impairment of
assets
INCOME
Revenues
Gains
Net cost of 1.13 People Strategies and
Policy
101
Chapter Six – Planned Outcome Performance
Output Group 1.14 – Superannuation and Housing Support
Services for Current and Retired Defence Personnel and Other
Administered Items
Output 1.14 - Superannuation and Housing Support Services for Current and Retired Defence Personnel and Other
Administered Items
Superannuation reports contributions and the movement in liabilities associated with the two military superannuation schemes:
the Defence Force Retirement and Death Benefits Scheme (DFRDB) and the Military Superannuation and Benefits Scheme
(MSBS). The DFRDB was closed to new participants in 1991. Since then, MSBS has been available to all full-time members of
the ADF. Both schemes are managed on Defence’s behalf by ComSuper. Output 1.14.1 shows the member contributions and
employer contributions to both schemes, the liability to the Commonwealth for benefits under both schemes, and the payment of
the MSBS Retention Benefit. Since 1991, Defence has paid the MSBS Retention Benefit to eligible MSBS members after
15 years of continuous eligible service. The purpose of the Retention Benefit is to encourage members to serve until they have
completed 20 years of service. Due to legislative amendments passed in 2005, the Retention Benefit is not available to
members who enlisted after 6 October 2005.
Housing Assistance reports dividends received on behalf of the Government from Defence Housing Australia (DHA), and
payments to DHA to manage the existing Defence Home-Owner Scheme (DHOS) and also payments to the Department of
Veterans Affairs (DVA) to manage the new Defence New Home Ownership Assistance Scheme (DHOAS). DHA is classified as
a Government Business Enterprise and is required to make a commercial rate of return for Government. Through Defence, DHA
pays an annual dividend on its operating profit to Government. The Commonwealth’s Competitive Neutrality Guidelines requires
DHA to make tax-equivalent payments to Government in lieu of paying state and territory taxes. Tax-equivalent payments form
part of DHA’s dividend return to Government. From July 2007, DHA will pay income tax directly to the Australian Taxation
Office.
From 1 July 2008, the DHOAS is expected to replace the existing DHOS. The DHOS will continue to be managed by DHA until
the scheme is wound down. The DHOAS will provide ADF members with home ownership assistance that is reflective of the
contemporary housing and home finance markets, together with the flexibility to maintain relativity with both markets. This new
scheme will better reflect current housing market conditions, offer flexibility and choice in selecting mortgage providers, and link
the entitlement to years of service with a decrease of entitlements on discharge. The new scheme will be funded through
administered appropriations and will be managed by DVA.
Other Administered encompasses all other administered revenues and expenses recorded by Defence. It includes interest
received on official bank accounts, net foreign exchange losses and gains and reimbursements from the United Nations (UN) for
contributions to UN-led operations.
102
Chapter Six – Planned Outcome Performance
Cost Summary of Output Group 1.14
Table 1.6.24—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Net foreign exchange losses
Housing subsidies
Retention benefits
[1]
[2]
Military superannuation benefits
[2][3]
Total expenses
–
–
–
–
52,638
71,664
91,424
110,157
42,000
40,000
38,000
36,000
2,848,700
2,946,890
3,047,100
3,150,300
2,943,338
3,058,554
3,176,524
3,296,457
-13
-13
-13
-13
REVENUE
Interest
Net foreign exchange gain
–
–
–
–
-60,448
-61,194
-54,860
-64,058
-4,711
-12,775
-20,681
-26,672
-731,000
-760,000
-760,000
-793,000
-569
-3
-3
-3
-796,741
-833,985
-835,557
-883,746
Net cost of output group 1.14
2,146,597
2,224,569
2,340,967
Notes
1. Part IV, s.38 of the Defence Force (Home Loans Assistance) Act 1990.
2. Part V, s.17 of the Military Superannuation and Benefits Act 1991.
3. Part XII, s.125 (3) of the Defence Force Retirement and Death Benefits Act 1973.
2,412,711
Dividends
Licence fees
Military superannuation
contributions
Other
Total revenue
Table 1.6.25—Cost summary by output
Output 1.14.1 – Superannuation
Output 1.14.2 – Housing
Assistance
Output 1.14.3 – Other
Administered (including UN
receipts)
Net cost of output group 1.14
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
2,159,700
2,226,890
2,325,100
2,393,300
-12,521
-2,305
15,883
19,427
-582
-16
-16
-16
2,146,597
2,224,569
2,340,967
2,412,711
103
Chapter Six – Planned Outcome Performance
OUTCOME 2 – MILITARY OPERATIONS AND OTHER TASKS
DIRECTED BY THE GOVERNMENT TO ACHIEVE THE DESIRED
RESULTS
Strategy
The ADF is required to undertake a range of military operations at the Government’s direction to
ensure the defence of Australia and its national interests. The ADF’s military operations and other
tasks contribute to the achievement of the Government’s strategic objectives, defined in the
2000 Defence White Paper as defending Australia, contributing to the security of the immediate
neighbourhood and supporting wider interests.
Resource Statement
Table 1.6.26 provides additional detail of Budget appropriations and the total resourcing for
outcome 2: Military operations and other tasks directed by Government to achieve the desired results.
Table 1.6.26—Total resources available for outcome 2
2007-08
Estimated
actual
2008-09
Budget
estimate
2009-10
Forward
estimate
2010-11
Forward
estimate
2011-12
Forward
estimate
$’000
$’000
$’000
$’000
$’000
Outcome 2: Military operations and other tasks directed by Government achieve the desired
results
Output group 2.1 – Operations Contributing to the Security of the Immediate Neighbourhood
Revenues from other sources
Departmental outputs
–
–
–
–
–
156,495
202,311
18,700
–
–
Output group 2.2 – Operations Supporting Wider Interests
Revenues from other sources
Departmental outputs
Total resources for outcome 2
–
–
–
–
–
850,006
797,796
135,319
2,860
–
1,006,501
1,000,107
154,019
2,860
–
104
Chapter Six – Planned Outcome Performance
Output Group 2.1 – Operations contributing to the security of
the immediate neighbourhood
Output group 2.1 - Operations contributing to the security of the immediate neighbourhood
Operations contributing to the security of the immediate neighbourhood are designed to help the stability, integrity and cohesion
of the immediate neighbourhood, which Australia shares with Indonesia, New Zealand, Papua New Guinea, Timor-Leste and
the island countries of the Southwest Pacific.
Concurrency pressures that may arise from sustained deployment of major force elements will be addressed through monitoring
ADF concurrency closely to ensure the ADF retains flexible response options for the Government. Possible significant
deterioration in the security environment requiring additional ADF elements will be managed by working closely with other
Australian agencies and international partners to monitor threats.
Key performance indicators
•
•
•
ADF operations meet their stated objectives within the Government’s guidance.
ADF forces are effectively deployed and sustained.
Forces are withdrawn for reconstitution when they are no longer required.
Cost summary for output group 2.1
Table 1.6.27—Cost summary by output group
2008–09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
45,618
–
–
–
156,693
18,700
–
–
EXPENSES
Employees
Suppliers
Grants
–
–
–
–
Depreciation and amortisation
–
–
–
–
Finance cost
–
–
–
–
Write-down of assets and impairment of
assets
–
–
–
–
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
202,311
18,700
–
–
–
–
–
–
INCOME
Revenues
Goods and services
Other revenue
–
–
–
–
Total revenue
–
–
–
–
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
–
–
–
–
Total income
–
–
–
–
202,311
18,700
–
–
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Output 2.1.1 Operation Astute
175,217
18,700
–
–
Output 2.1.2 Operation Anode
27,094
–
–
–
Net cost of output group 2.1
202,311
18,700
–
–
Gains
Net cost of 2.1 Operations contributing
to the security of the immediate
neighbourhood
Table 1.6.28—Cost summary by output
105
Chapter Six – Planned Outcome Performance
Output Group 2.2 – Operations supporting wider interests
Output group 2.2 - Operations supporting wider interests
Operations supporting wider interests are designed to contribute to UN and international efforts to uphold global security.
Concurrency pressures may arise from sustained deployment of major force elements will be addressed through monitoring
ADF concurrency closely to ensure the ADF retains flexible response options for the Government. Possible significant
deterioration in the security environment requiring additional ADF elements will be managed by working closely with other
Australian agencies and international partners to monitor threats.
Key performance indicators
•
•
•
ADF operations meet their stated objectives within the Government’s guidance.
ADF forces are effectively deployed and sustained.
Forces are withdrawn for reconstitution when they are no longer required.
Cost summary for output group 2.2
Table 1.6.29—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
Employees
160,418
–
–
–
Suppliers
–
EXPENSES
637,378
135,319
2,860
Grants
–
–
–
–
Depreciation and amortisation
–
–
–
–
Finance cost
–
–
–
–
Write-down of assets and impairment of
assets
–
–
–
–
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
797,796
135,319
2,860
–
Goods and services
–
–
–
–
Other revenue
–
–
–
–
Total revenue
–
–
–
–
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
Total gains
–
–
–
–
Total income
–
–
–
–
797,796
135,319
2,860
–
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
INCOME
Revenues
Gains
Net cost of 2.2 Operations supporting
wider interests
Table 1.6.30—Cost summary by output
2008-09
Budget
estimate
$’000
Output 2.2.1 Operation Slipper
594,847
82,264
2,860
–
Output 2.2.2. Operation Catalyst
202,949
53,055
–
–
Net cost of output group 2.2
797,796
135,319
2,860
–
106
Chapter Six – Planned Outcome Performance
OUTCOME 3 – DEFENCE’S SUPPORT TO THE AUSTRALIAN
COMMUNITY AND CIVILIAN AUTHORITIES TO ACHIEVE THE
DESIRED RESULTS
Strategy
The ADF can be called upon to provide emergency and non-emergency assistance to the Government
and the Australian community in non-combat related roles. The tasks the ADF may be requested to
undertake could include emergency assistance, search and rescue, disaster recovery, surveillance,
security or non-emergency law enforcement roles. Tasks may be directed by the Government or
requested by other civil authorities or government departments. The Government may also require
the ADF to support significant international events being conducted in Australia.
Resource Statement
Table 1.6.31 provides additional detail of Budget appropriations and the total resourcing for
outcome 3: Defence’s support to the Australian community and civilian authorities to achieve the
desired results.
Table 1.6.31—Total resources available for outcome 3
2007-08
Estimated
actual
2008-09
Budget
estimate
2009-10
Forward
estimate
2010-11
Forward
estimate
2011-12
Forward
estimate
$’000
$’000
$’000
$’000
$’000
Outcome 3: Defence’s support to the Australian community and civilian authorities achieve the desired
Output group 3.1 – Defence Contribution to National Support Tasks in Australia
Revenues from other sources
–
–
–
–
–
Departmental outputs
39,401
12,863
13,060
13,387
–
Total resources for outcome 3
39,401
12,863
13,060
13,387
–
107
Chapter Six – Planned Outcome Performance
Output Group 3.1 – Defence Contribution to National Support
Tasks in Australia
Output group 3.1 - Defence contribution to national Support Tasks in Australia
National support tasks undertaken by the ADF may include the security of the Australian coastline from illegal immigration,
smuggling, quarantine evasion and other intrusions to Australian sovereignty, counter-terrorism responses, search and rescue
and natural disaster relief.
The ADF contributes to the Coastwatch civil surveillance program and Border Protection Command tasking, providing maritime
surveillance assets that are tasked routinely in accordance with the Government’s direction.
Concurrency pressures may arise from sustained deployment of major force elements will be addressed through monitoring
ADF concurrency closely to ensure the ADF retains flexible response options for the Government. Possible significant
deterioration in the security environment requiring additional ADF elements will be managed by working closely with federal and
state agencies to monitor threats.
Key performance indicators
•
•
•
The ADF contribution to national support tasks in Australia meets Government directives.
The ADF response to requests for Defence Force Aid to the Civil Authorities is effectively managed, sustained and reported.
The ADF response to requests for Defence Assistance to the Civil Community is effectively managed, sustained and
reported.
Cost summary for output group 3.1
Table 1.6.32—Cost summary by output group
2008-09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
EXPENSES
Employees
Suppliers
–
–
–
–
12,863
13,060
13,387
–
Grants
–
–
–
–
Depreciation and amortisation
–
–
–
–
Finance cost
–
–
–
–
Write-down of assets and impairment of
assets
–
–
–
–
Net losses from sale of assets
–
–
–
–
Other expenses
–
–
–
–
Total expenses
12,863
13,060
13,387
–
Goods and services
–
–
–
–
Other revenue
–
–
–
–
Total revenue
–
–
–
–
Reversals of previous asset write-downs
–
–
–
–
Net gain from sale of assets
–
–
–
–
Other gains
–
–
–
–
INCOME
Revenues
Gains
Total gains
–
–
–
–
Total income
–
–
–
–
12,863
13,060
13,387
–
Net cost of 3.1 Defence Contribution
to National Support Tasks in
Australia
108
Chapter Six – Planned Outcome Performance
Table 1.6.33—Cost summary by output
Output 3.1.1 Defence Force Aid to
the Civil Authority tasks
2008–09
Budget
estimate
$’000
2009-10
Forward
estimate
$’000
2010-11
Forward
estimate
$’000
2011-12
Forward
estimate
$’000
–
–
–
–
Output 3.1.2 Defence Assistance
to the Civil Community tasks
–
–
–
–
Output 3.1.3 Operation Resolute
12,863
13,060
13,387
–
–
–
–
–
12,863
13,060
13,387
–
Output 3.1.4 Operation Testament
Net cost of output group 3.1
109