Chapter 3
Outcome performance

Table 3.1 Total cost of Defence Outcomes and Outputs, 2007-08
Outcome/Output Budget
Estimate[1]
($'000)
Revised
Estimate[2]
($'000)
Actual
Result
($'000)
Variation[3]

($'000)
Variation[3]

(%)
Outcome 1: Command of Operations in defence of Australia and its interests
1.1 Command of operations 426,503 435,100 439,102 4,002 0.9
1.2 Defence force military operations & exercises 1,130,212 1,182,582 850,899 -331,683 -28.0
1.3 Contribution to national support tasks 19,876 35,483 30,802 -4,681 -13.2
Total for Outcome 1 1,576,590 1,653,164 1,320,802 -332,362 -20.1
Outcome 2: Navy Capability for the defence of Australia and its interests
2.1 Capability for major surface combatant operations 1,902,220 1,962,991 1,940,239 -22,752 -1.2
2.2 Capability for naval aviation operations 641,202 660,934 1,529,027 868,093 131.3
2.3 Capability for patrol boat operations 277,386 287,719 267,717 -20,002 -7.0
2.4 Capability for submarine operations 815,756 833,645 673,358 -160,287 -19.2
2.5 Capability for afloat support 263,997 275,762 306,226 30,464 11.0
2.6 Capability for mine warfare 387,512 400,218 370,899 -29,319 -7.3
2.7 Capability for amphibious lift 424,751 436,429 323,763 -112,666 -25.8
2.8 Capability hydrographic, meteorological & oceanographic operations 299,841 307,130 195,042 -112,088 -36.5
Total for Outcome 2 5,012,665 5,164,828 5,606,273 441,445 8.5
Outcome 3: Army Capability for the defence of Australia and its interests
3.1 Capability for special operations 581,018 607,171 688,057 80,886 13.3
3.2 Capability for medium combined arms operations 1,115,711 1,135,015 790,587 -344,428 -30.3
3.3 Capability for light combined arms operations 1,048,525 1,098,080 869,344 -228,736 -20.8
3.4 Capability for Army aviation operations 586,716 597,858 658,599 60,741 10.2
3.5 Capability for ground based air defence 126,106 126,937 138,743 11,806 9.3
3.6 Capability for combat support operations 457,002 467,601 498,766 31,165 6.7
3.7 Capability for regional surveillance 164,041 167,063 236,515 69,452 41.6
3.8 Capability for operational logistic support to land forces 604,490 614,233 664,142 49,909 8.1
3.9 Capability for motorised combined arms operations 620,015 631,749 727,072 95,323 15.1
3.10 Capability for protective operations 1,089,381 1,121,329 1,521,757 400,428 35.7
Total for Outcome 3 6,393,005 6,567,037 6,793,582 226,545 3.4
Outcome 4: Air Force Capability for the defence of Australia and its interests
4.1 Capability for air combat operations 1,842,613 1,857,419 2,072,223 214,804 11.6
4.2 Capability for combat support of air operations 1,022,579 1,066,429 1,048,984 -17,445 -1.6
4.3 Capability for surveillance & response operations 1,295,189 1,323,934 1,333,156 9,222 0.7
4.4 Capability for airlift operations 1,164,739 1,200,781 937,569 -263,212 -21.9
Total for Outcome 4 5,325,120 5,448,563 5,391,933 -56,630 -1.0
Outcome 5: Strategic Policy for the defence of Australia and its interests
5.1 International policy, activities & engagement 223,410 227,671 307,497 79,826 35.1
5.2 Strategic policy & military strategy 80,020 84,084 31,805 -52,279 62.2
Total for Outcome 5 303,430 311,755 339,303 27,548 8.8
Outcome 6: Intelligence for the defence of Australia and its interests  
6.1 Intelligence 559,316 574,720 842,763 268,043 46.6
Total for Outcome 6 559,316 574,720 842,763 268,043 46.6
NET COST OF DEFENCE DEPARTMENTAL OUTCOMES 19,170,126 19,720,067 20,294,656 574,589 2.9
Approved allocated profit/(loss) - - -601,389 -601,389 -
DEPARTMENTAL APPROPRIATIONS FROM GOVERNMENT 19,170,126 19,720,067 19,693,267 -26,800 -0.1
Outcome 7: Superannuation and housing services for current & retired Defence personnel
7.1 Superannuation support services for current & retired Defence personnel 2,069,468 2,084,600 2,092,423 7,823 0.4
7.2 Housing assistance for current & retired Defence personnel -64,500 -47,453 -122,979 -75,526 159.2
7.3 Other administered revenues & expenses -868 3,854 30,748 26,894 697.8
NET COST OF ADMINISTERED OUTCOMES 2,004,100 2,041,001 2,000,192 -40,809 -2.0
Total COST OF DEFENCE OUTCOMES 21,174,226 21,761,068 22,294,848 533,780 2.5

Notes

  1. Budget Estimates are consistent with Portfolio Budget Statements 2007-08 (pp124-126).
  2. Revised Estimates are consistent with Portfolio Additional Estimates Statements 2007-08 (pp73-76).
  3. Variation figures are the difference between Actual Result and Revised Estimate.
Table 3.2 Overall Cost to Government of Defence Outcomes (Departmental and Administered), 2007-08
  Outcome 1
Command of
operations
Outcome 2
Navy capability
Outcome 3
Army
capability
Outcome 4
Air Force
capability
Outcome 5
Strategic
policy
Outcome 6
Intelligence
Total Defence
Departmental
Outcome
Outcome 7
Superannuation
& housing support
services for
current & retired
Defence personnel
Total
($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000) ($'000)
DEPARTMENTAL
Income
Revenues
Sale of goods and rendering of services 41,897 147,342 228,346 228,488 5,457 37,310 688,840   688,840
Other revenues 3,573 18,529 30,473 18,386 2,601 9,744 83,307   83,307
Total revenue 45,471 165,871 258,819 246,875 8,058 47,054 772,147 - 772,147
Gains
Reversals of previous asset write-downs 14,564 133,297 315,980 143,540 2,990 4,959 615,330   615,330
Sale of assets 41 719 -584 859 17 24 1,077   1,077
Other gains -307 94 2,624 1,372 -114 -374 3,295   3,295
Total gains 14,298 134,110 318,020 145,771 2,893 4,609 619,702 - 619,702
Total income 59,768 299,981 576,839 392,646 10,951 51,663 1,391,848 - 1,391,848
Expenses
Employees 440,881 1,701,480 3,274,961 1,742,260 73,290 277,424 7,510,296   7,510,296
Suppliers 877,045 1,806,105 2,899,855 2,183,933 256,067 431,074 8,454,080   8,454,080
Grants 596 7,764 5,349 3,906 101 284 18,000   18,000
Depreciation and amortisation 38,746 1,275,851 862,829 1,397,985 9,204 70,261 3,654,874   3,654,874
Finance cost 1,940 12,028 15,189 12,512 1,896 581 44,146   44,146
Write-down and impairment of assets 18,917 1,088,708 287,231 431,057 9,106 113,122 1,948,141   1,948,141
Foreign exchange loss 40 857 -369 1,535 -40 128 2,152   2,152
Other expenses 2,407 13,460 25,375 11,392 629 1,552 54,815   54,815
Total expenses 1,380,571 5,906,254 7,370,421 5,784,579 350,254 894,426 21,686,504 - 21,686,504
Net cost of departmental outcomes 1,320,802 5,606,273 6,793,582 5,391,933 339,303 842,763 20,294,656 - 20,294,656
ADMINISTERED
Revenues 891,624 891,624
Expenses 2,891,816 2,891,816
Net cost of administered outcomes - - - - - - - 2,000,192 2,000,192
Table 3.3 Cost to Government of Departmental Outcomes, 2007-08
  Budget
Estimate[1]
($'000)
Revised
Estimate[2]
($'000)
Actual
Result
($'000)
Variation[3]

($'000)
Variation[3]

(%)
Income
Revenues
Sale of goods and rendering of services 643,206 719,479 688,840 -30,639 -4.3
Other revenue[4] 66,020 138,192 83,307 -54,885 -39.7
Total revenue 709,226 857,671 772,147 -85,524 -10.0
Gains
Reversals of previous asset write-downs 200,000 415,025 615,330 200,305 48.3
Sale of assets - - 1,077 1,077 -
Other gains 7,700 7,700 3,295 -4,405 -57.2
Total gains 207,700 422,725 619,701 196,976 46.6
Total Income 916,926 1,280,396 1,391,848 111,452 8.7
Expenses
Employees 7,304,628 7,491,807 7,510,296 18,489 0.2
Suppliers 9,111,987 9,053,108 8,454,080 -599,028 -6.6
Grants 4,395 18,911 18,000 -911 -4.8
Depreciation and amortisation 3,409,595 3,611,350 3,654,874 43,524 1.2
Finance cost 25,574 31,639 44,146 12,507 39.5
Write-down and impairment of assets 230,000 792,796 1,948,141 1,155,345 145.7
Foreign exchange loss - - 2,152 2,152 -
Other expenses 873 852 54,815 53,963 6333.7
Total expenses 20,087,052 21,000,463 21,686,504 686,041 3.3
Net cost of all outcomes 19,170,126 19,720,067 20,294,656 574,589 2.9
Approved allocated profit/(loss) - - -601,389 -601,389 -
Departmental appropriations from Government 19,170,126 19,720,067 19,693,267 -26,800 -0.1

Notes

  1. Budget Estimates are consistent with Portfolio Budget Statements 2007-08 (pp127-128).
  2. Revised Estimates are consistent with Portfolio Additional Estimates Statements 2007-08 (p75).
  3. Variation figures are the difference between Actual Result and Revised Estimate.
  4. Other revenues includes rental income.