Defence
Afghanistan — Australian Defence Force deployments
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 447.9 | 191.8 | 30.9 | - |
| Related revenue ($m) | ||||
| Australian Taxation Office | -9.0 | -5.0 | - | - |
The Government will provide $703.0 million over four years (including $32.4 million in 2006-07) to increase Australia’s military contribution to the reconstruction and rehabilitation of Afghanistan.
Funding will be provided to increase the Australian Defence Force presence in the areas of special forces, air radar capability, associated logistics, intelligence and heavy airlift support. In addition, the forces involved in protecting the Reconstruction Task Force personnel will continue in operation.
This measure is expected to lead to a reduction in revenue of $15.3 million (including $1.3 million in 2006-07) as otherwise taxable income received by ADF members is not taxed while they are on eligible duty.
Further information can be found in the press release of 10 April 2007 issued by the Prime Minister.
Air combat capability — acquisition of Super Hornets
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 621.0 | 984.7 | 1260.1 | 1046.1 |
| Related capital ($m) | ||||
| Department of Defence | - | 6.0 | 26.6 | 26.0 |
The Government will provide $6.6 billion over 13 years (including $2.6 billion over nine years from 2011-12) to acquire 24 F/A-18F Super Hornet aircraft, weapons and associated support, and to provide for personnel and operating costs to support the capability in service.
Acquisition of the Super Hornet aircraft will help secure Australia’s air combat capability edge by introducing enhanced sensors, weapons and networking capabilities. It will ensure there is no gap in air combat capabilities with the withdrawal of the F-111 aircraft in 2010.
This measure includes $58.6 million in capital funding for related infrastructure.
Further information can be found in the press release of 6 March 2007 issued by the Minister for Defence.
Australian Defence Force retention and recruitment — further initiatives
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 46.5 | 165.8 | 179.2 | 193.9 |
To improve the retention and recruitment of Australian Defence Force (ADF) personnel, the Government will provide $2.1 billion over 10 years (including $1.5 billion over six years from 2011-12). This funding will increase the number of people who join and remain in the military by:
- enhancing financial assistance for home ownership, through a more attractive subsidy for interest payments, the value of which increases with the length of service ($863.8 million);
- reforming the ‘other ranks’ pay scales by introducing restructuring similar to that already implemented for officers ($585.4 million);
- increasing funding for marketing and branding activities ($227.8 million);
- introducing a new transition service to help manage the separation process of those personnel considering leaving the Services, and providing independent financial advice for personnel to better enable them to make informed decisions ($124.6 million);
- expanding the number of cadets and cadet units and improving their experience through a youth development programme conducted in a military environment ($100.0 million);
- building on the existing Royal Australian Navy Sea Change programme by enhancing fleet support for ships whilst in port and improving remuneration for personnel on submarines ($86.5 million);
- identifying potential students for direct entry into ADF technical trade training and sponsoring younger students to commence technical trade training before ADF entry ($71.0 million); and
- delivering professional development opportunities to ADF medical officers, comparable to those in the civilian health workforce ($12.1 million).
This measure builds on funding provided as part of the Mid-Year Economic and Fiscal Outlook 2006-07 measure Australian Defence Force retention and recruitment – new initiatives.
C-17 heavy airlift — personnel and operating funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | - | 73.8 | 111.9 | 132.7 |
The Government will provide $1.4 billion over ten years (including $1.0 billion over six years from 2011-12) for the Australian Defence Force (ADF) to maintain and operate four C-17 heavy airlift aircraft to significantly enhance ADF airlift capability.
The cost of this measure will be partially offset by $103.7 million (in the years 2007-08 to 2009-10) in savings from personnel and operating costs from Defence Capability Plan projects.
This measure is in addition to the funding of the acquisition cost of the C-17 aircraft in the 2006-07 Budget.
Coastal surveillance — continuation
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 12.6 | 12.8 | 13.0 | 13.3 |
The Government will provide $51.6 million over four years for costs associated with coastal surveillance activities under Operation RESOLUTE that protect Australia’s national interests in the Australian Exclusive Economic Zone and adjacent areas.
Defence housing — supplementation for competitive neutrality policy
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | - |
The Government will provide $357.3 million over four years for the Department of Defence to meet increased costs payable to Defence Housing Australia (DHA). This follows from the application of the Government’s competitive neutrality policy to DHA in 2000-01.
As DHA is a government business enterprise operating within the general government sector and the funding is expected to be returned to the Commonwealth through increased dividends and tax-equivalent payments, there is no net effect on the budget.
Defence industry policy
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Defence Materiel Organisation | - | - | - | - |
The Government will provide $97.0 million over four years to enhance the cost-effective delivery of equipment and support to the Australian Defence Force. This will include higher levels of support for research and development by Australian defence companies, defence industry exports, and a broadening of the Skilling Australia’s Defence Industry programme.
The cost of this measure will be met from within the existing resourcing of the Department of Defence.
Further information can be found in the press release of 1 March 2007 issued by the Minister for Defence.
East Timor — continued funding to help restore peace and stability
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 107.7 | 27.1 | - | - |
The Government will provide $134.8 million over two years for the net additional costs of the Australian Defence Force’s continuing contribution to restoring peace and stability in East Timor under Operation ASTUTE.
Iraq — continued funding for stabilisation and reconstruction activities
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 301.7 | 59.7 | 28.1 | - |
| Related revenue ($m) | ||||
| Australian Taxation Office | -23.0 | - | - | - |
The Government will provide $389.4 million over three years to continue the Australian Defence Force’s contribution to stabilisation efforts in Iraq as part of Operation CATALYST, including an additional 70 military personnel to be involved in logistics training for the Iraqi Army.
This measure is expected to lead to a reduction in revenue of $23.0 million as otherwise taxable income received by Australian Defence Force members is not taxed while they are on eligible duty.
Further information can be found in the press release of 20 February 2007 issued by the Minister for Defence.
Jezzine Barracks — gift to the Townsville City Council
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 20.5 | - | - | - |
The Government will provide up to $24.5 million in 2007-08 in association with its proposed gift of the majority of the historic Jezzine Barracks and Kissing Point site to Townsville City Council for community use and heritage protection. Up to $20.0 million will be contributed, subject to matching commitments from the Queensland Government and Townsville City Council, to a community trust that will oversee the development of the site. An amount of $0.5 million will be provided for the costs associated with the establishment of the trust. A further $4.0 million, required to subdivide and prepare the site, will be met from within the existing resourcing of the Department of Defence.
Further information can be found in the press release of 1 August 2006 issued by the Prime Minister.
Logistics — additional funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | 107.9 | 291.3 | 236.2 | 243.3 |
The Government will provide $4.0 billion over ten years (including $2.2 billion over six years from 2011-12) to address logistics funding requirements across 18 high priority Defence platforms. This measure will alleviate a range of equipment obsolescence and inventory shortfall issues and enable enhanced maintenance, refits, and upgrades of equipment across the Army, Navy and Air Force.
The new funding will augment logistics and support funding for a range of platforms and equipment, including:
- Collins class submarines;
- ANZAC class frigates;
- Hercules transport aircraft;
- Hawk Lead-in Fighter training aircraft;
- Army B-class vehicles; and
- Army Black Hawk helicopters.
This measure is in addition to previous logistics funding provided as part of the 2003-04, 2004-05 and 2006-07 Budgets. Provision for funding of $2.2 billion has already been included in the forward estimates.
Operations CATALYST and SLIPPER — acquisition of equipment
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | - |
The Government provided $49.7 million in 2006-07 for the acquisition of equipment such as remote surveillance and protected accommodation to enhance the security of Australian Defence Force deployments to Iraq under Operation CATALYST and Afghanistan under Operation SLIPPER.
Special Operations Command — continuation of funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | - |
The Government will provide $211.2 million over four years to continue the Special Operations Command in the Australian Defence Force. The Special Operations Command further increases Australia’s ability to use non‑conventional war-fighting to respond to terrorism by providing for an additional 334 combat and associated support personnel to supplement Australia’s existing special forces.
This measure involves funding of $51.2 million in 2007-08, $52.3 million in 2008-09, $53.3 million in 2009-10 and $54.4 million in 2010-11. Provision for this funding has already been included in the forward estimates.
Special Purpose Aircraft facilities at Canberra International Airport — continuation of funding
| 2007-08 | 2008-09 | 2009-10 | 2010-11 | |
|---|---|---|---|---|
| Department of Defence | - | - | - | - |
The Government will provide $32.6 million over four years to continue funding for Special Purpose Aircraft maintenance and support facilities at Canberra International Airport. The funding covers lease costs associated with the facility, which supports a jet service for VIPs.
This measure involves funding of $7.9 million in 2007-08, $8.1 million in 2008-09, $8.2 million in 2009-10 and $8.4 million in 2010-11. Provision for this funding has already been included in the forward estimates.



