Chapter Three - People > Workforce Overview > page 4 of 11
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Workforce Overview

Staffing by Average Strength

Employee Expenses

The actual result for employee expenses in 2004-05 totalled $6,173.0m, representing a decrease of $519.9m from the 2004-05 revised estimate of $6,692.9m. The variation comprises permanent military employees (-$435.7m), Reserve employees (-$4.9m) and civilian employees (-$79.3m). Table 3.7 provides details.

  2004-05
Budget
Estimate
2004-05
Revised
Estimate
2004-05
Actual
Result
Variation Variation
Table 3.7 Explanation of Variations in Employee Expenses
  $m $m $m $m %
Salaries, Allowances, Superannuation and Leave Liability 4,319.1 4,299.1 3,918.6 -380.5 -8.9
Housing 412.8 410.5 390.6 -19.9 -4.8
ADF Compensation (1) - - - - -
Health Services 152.5 141.4 162.9 21.5 15.2
Fringe Benefits Tax 293.7 342.6 285.8 -56.8 -16.6
Sub Total Permanent ADF 5,178.1 5,193.6 4,757.9 -435.7 -8.4
Navy Reserves 12.3 13.2 13.3 0.1 0.8
Army Reserves 85.2 91.5 88.2 -3.3 -3.6
Air Force Reserves 19.4 22.2 20.6 -1.6 -7.2
Sub Total Reserves 116.9 126.9 122.0 -4.9 -3.9
Salaries, Allowances, Superannuation and Leave Liability 1,394.3 1,348.6 1,265.1 -83.5 -6.2
Other Expenses including Fringe Benefits Tax 21.0 23.8 28.0 4.2 17.6
Sub Total APS 1,415.3 1,372.4 1,293.1 -79.3 -5.8
Total Employee Expenses (2) 6,710.3 6,692.9 6,173.0 -519.9 -7.8

Notes

  1. Function transferred to Department of Veterans' Affairs in 2004-05.
  2. Correlates with Table 1.2.
Permanent Military Employees (-$435.7m)

Military employee expenses totalled $4,757.9m, representing a decrease of $435.7m from the revised estimate of $5,193.8m.

This decrease was due to:

  • an overestimate of accrual leave expenses including bringing to account leave expenses in late 2003-04 rather than as budgeted for in 2004-05 (-$217.7m). This had no cash impact in 2004-05;
  • an overestimate of the original budget estimate (-$118.0m);
  • lower than planned average funded strength of 482 comprising Navy (-78), Army (-379) and Air Force (-25) (-$39.6m);
  • lower than anticipated expenditure on military employee allowances in relation to overseas operations with funds to be returned to the Government under the no win no loss arrangements (-$5.0m);
  • lower than expected costs associated with Defence Housing Authority commercial rental payments with funds to be returned to Government under the no-win no-loss arrangements (-$11.9m);
  • reduced housing costs, due in part to lower than planned ADF strength (-$8.0m);
  • increases in health costs relating to medical and professional fees due to the Services being unable to fully fill their medical and health services positions (+$12.5m);
  • increased expenses for contracted health practitioners associated with slower than planned substitution of more costly Professional Service Providers with more cost effective civilian employees (+$9m);
  • a one-time adjustment to fringe benefits tax expenses to correct timing differences between the fringe benefits tax year and the financial year over the period 1999 2000 to 2004-2005 (-$31.6m). This had no cash impact in 2004-05; and
  • lower than anticipated fringe benefits tax payable, due in part to lower than planned average funded strength (-$25.2m).
Reserves Employees (-$4.9m)

ADF Reserves expenses totalled $122.0m, representing a decrease of $4.9m from the 2004-05 revised estimate of $126.9m. This was primarily due to lower than anticipated number of Reservists and lower than projected use of Reserve days by non-Service groups (-1,852) (-$4.9m).

Civilian Employees (-$79.3m)

Civilian employee expenses totalled $1,293.1m, representing a decrease of $78.9m on the revised estimate of $1,372.0m.

The decrease was due to:

  • an overstatement of the civilian employee salary and allowances (-$37.3m);
  • the bringing to account of leave expenses late in 2003-04 rather than as budgeted in 2004-05 (-$30.4m). This had no cash impact in 2004-05;
  • lower than planned average full-time equivalent of 217 (-$15.8m);
  • higher than anticipated redundancies costs (+$5.7m);
  • an increase in the Comcare civilian workers' compensation premium (+$2.1m);
  • an increase in civilian health services expenses (+$1.7m); and
  • other minor variations including Fringe Benefits Tax payments (-$5.3m).
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