Chapter One - Overview > Program of Administrative Savings > page 2 of 2
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Program of Administrative Savings

Table 1.13 details the net savings achieved to date and planned, including transition and up front costs.

Table 1.13 Administrative Savings Achieved/Planned to date
2003-04 2004-05 2005-06 2006-07 2007-08
  $m $m $m $m $m
Initiative
Reductions in civilian workforce 9.5 28.4 46.5 46.5 46.5
Reductions in non-capability related suppliers, including professional service providers 22.0 41.7 41.7 41.7 41.7
Reductions in overseas travel 7.4 7.4 7.4 7.4 7.4
Reductions in domestic travel 11.5 11.5 11.5 11.5 11.5
Renegotiation of the Australian Defence Force Academy agreement 0.9 1.9 1.9 1.9 1.9
Reductions in non-operational overseas positions 4.8 13.4 19.2 20.4 20.3
Removal from service of three P-3 derivative training aircraft - - 5.5 5.5 4.0
Rationalisation of civilian personnel administration centres 1.3 1.3 1.3 1.3 1.3
Rationalisation of the former Public Affairs and Corporate Communication Division 2.7 3.2 3.2 3.2 3.2
PMKeyS Self Service - 0.1 0.1 0.1 0.1
Diners Club Rebate 0.5 -0.2 0.6 0.7 -
Travel Improvement Project (processing staff) - 0.7 2.0 2.0 2.0
Invoice Scanning and Imaging System - 0.2 2.4 2.4 2.4
Closure of Defence Cash Offices and centralising receipting - 0.3 0.3 0.3 0.3
Reduction in ComCover Insurance premium - 22.5 20.8 19.1 17.3
Regional Information, Communication and Technology Market Testing - - 3.7 4.4 4.4
Defence Travel Card/Business Improvement Projects - 0.2 7.0 7.0 7.0
Savings Achieved/Planned to date 60.6 132.4 175.2 175.4 171.3
CSIG Staff (49 positions) - 2.5 - - -
Business Improvement Project transition costs - - 15.8 - -
Regional Information, Communication and Technology Market Testing transition costs - 2.3 3.3 - -
Sub Total of Transition Costs 0.0 4.8 19.1 0.0 0.0
Net Savings 60.6 127.6 156.1 175.4 171.3

Savings achieved and planned are being used to offset the unavoidable cost pressures shown in Table 1.14 to ensure cuts to capability are not required to absorb these costs in the longer term.

Table 1.14 Cost Pressures Offset by Administrative Savings
2003-04 2004-05 2005-06 2006-07 2007-08
  $m $m $m $m $m
Establishment of the Chief Information Office 4.9 4.9 4.9 4.9 4.9
Comcare premium increases 13.0 13.0 13.0 13.0 13.0
Comsuper administration charge 5.4 5.4 5.4 5.4 5.4
Additional legal services and compensation costs 4.0 4.0 4.0 4.0 4.0
Establishment of the Defence Service Call Centre (Cooma New South Wales) 9.5 9.5 9.5 9.5 9.5
Contract costs not able to be funded from Defence Reform Program savings 80.0 100.0 100.0 100.0 100.0
Portfolio contribution to ADF service allowance increase 29.8 29.8 29.8 29.8 29.8
Defence Force Review Tribunal allowance increases 7.0 7.0 7.0 7.0 7.0
ADF Remuneration Reform project costs 13.2 13.2 13.2 13.2 13.2
Increases in overseas leases costs 2.3 2.3 2.3 2.3 2.3
P-3 Orion logistic shortfalls - - 5.5 5.5 4.0
Changes in CSS/PSS contribution rates - 7.2 7.2 7.2 7.2
DFAT common services charges - 1.7 1.7 1.7 1.7
Higher Comsuper user charges - 2.4 2.4 2.4 2.4
Higher Comcare user charges - 1.5 1.5 1.5 1.5
Total Cost pressures requiring funding 169.1 201.9 207.4 207.4 205.9
Savings used as offsets to date 60.6 127.4 156.1 175.4 171.3
Absorbed elsewhere in the Defence Budget or from future savings 108.5 74.5 51.3 32.0 34.6

A number of other initiatives are being developed to deliver the balance of the savings program by 2007-08, as planned.

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