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Annual Report 2013-14

Volume 1, Part 1 : Defence Overview

Chapter 2: Departmental overview


This chapter gives an overview of Defence, which consists of the Department of Defence, the Australian Defence Force (ADF), the Defence Materiel Organisation (DMO) and some smaller entities.

Role

The primary role of Defence is to defend Australia against armed attack and to be able to deploy more widely in pursuit of Australia’s national security interests. Australia’s defence policy is founded on the principle of self-reliance in the direct defence of Australia, but with a capacity to do more where there are shared interests with partners and allies.

Mission

The ADF is constituted under the Defence Act 1903, and its mission is to defend Australia and its national interests. In fulfilling that mission, the ADF serves the Australian Government of the day and is accountable to the Australian Parliament, which represents the Australian people, for efficiently and effectively carrying out the Government’s defence policy.

Values

Defence civilian employees conduct their duties in accordance with the Public Service Act 1999,the Australian Public Service (APS) Code of Conduct and the APS Values. The ADF—the Army, the Navy and the Air Force— has service-specific codes of conduct and values.

In addition to the single-service and APS values, specific Defence values have been established to provide a common and unifying thread for all people working in Defence. These values are:

Professionalism
striving for excellence in everything we do
Loyalty
commitment to each other and Defence
Integrity
doing what is right
Courage
the strength of character to honour our convictions (moral courage) and bravery in the face of personal harm (physical courage)
Innovation
actively looking for better ways of doing our business
Teamwork
working together with respect, trust and a sense of collective purpose.

Strategic direction

In 2014–15, major whole-of-organisation activities will shape Defence’s future.

In early 2014, the Government began the development of a new Defence White Paper, for release around mid-2015. The White Paper will provide the Government’s long-term strategic direction for Australia’s defence, aligning defence policy, strategy, force structure and organisation in an affordable and achievable way.

The Defence White Paper will include a comprehensive review of Australia’s strategic environment and outline the tasks that the Government expects the ADF to undertake and how those tasks will be achieved within available resources. It will be informed by a Force Structure Review designed to rigorously assess defence capability goals to find the right balance between capability and cost.

The White Paper will be costed and aligned with the Government’s commitment to increase defence spending to 2 per cent of Australia’s gross domestic product by 2023–24. It will be accompanied by a new 10-year Defence Capability Plan and Defence Industry Policy Statement.

The development of the White Paper is supported by a government-appointed external expert panel and will include broad consultation within the Australian Government and with state and territory governments, key experts and think tanks, Australian industry, the Australian public and international allies and partners.

The First Principles Review will consider whether Defence is fit for purpose and is able to deliver its intended outputs with the minimum resources necessary.

Changes in ministerial responsibilities

On 18 September 2013, a new Australian Government was sworn in with the following ministers in the Defence portfolio:

  • Minister for Defence: Senator the Hon David Johnston
  • Assistant Minister for Defence: the Hon Stuart Robert MP
  • Parliamentary Secretary to the Minister for Defence: the Hon Darren Chester MP.

The Minister for Veterans’ Affairs, Senator the Hon Michael Ronaldson, is in the Defence portfolio but reports separately through the Department of Veterans’ Affairs budget statements and annual report.

Details of the allocation of portfolio responsibilities for Defence are at www.minister.defence.gov.au/allocation-of-portfolio-responsibilities.

Changes in senior leadership

Rear Admiral David Johnston was promoted to Vice Admiral and appointed Chief of Joint Operations on 20 May 2014, following the retirement of Lieutenant General Ash Power.

Ms Rebecca Skinner was appointed Deputy Secretary Defence People on 12 May 2014.

Mr Peter Baxter was appointed Deputy Secretary Strategy on 28 January 2014.

Mr Brendan Sargeant was appointed Associate Secretary and Chief Operating Officer on 12 September 2013.

Mr Colin Thorne was appointed General Manager Land and Maritime within the DMO on 9 September 2013.

Portfolio structure

The Defence portfolio consists of a number of component organisations that together are responsible for supporting the defence of Australia and its national interests. The most significant bodies are:

  • the Department of Defence: a department of state headed by the Secretary of the Department of Defence
  • the ADF: commanded by the Chief of the Defence Force (CDF) and consisting of the three Services, which are commanded by Service chiefs
  • the DMO: a prescribed agency within Defence, headed by a Chief Executive Officer.

The portfolio contains some smaller entities, including a number of statutory offices created by the Defence Force Discipline Act 1982, Defence Act 1903, Naval Defence Act 2010 and Air Force Act 1923 as well as the Australian Strategic Policy Institute.

Figure 2.1: Defence portfolio structure

Organisational structure

Defence’s workforce consists of ADF members of the Navy, Army and Air Force and members of the APS. The joint leadership of Defence by the Secretary and the CDF is known as the ‘diarchy’. The diarchy reflects the individual and joint responsibilities and accountabilities of the Secretary and the CDF through directions given by the Minister for Defence. Figure 2.2 shows Defence’s organisational structure at 30 June 2014.

Defence reports against its programs under four outcomes—three for Defence and one for the DMO. Please refer to the foldout at the back of the report for a detailed outcome and program structure.

Figure 2.2: Defence organisational structure at 30 June 2014

How the department evolved

Following Federation in 1901, the Commonwealth took over responsibility for matters concerning the whole nation, which, until then, had been dealt with individually by the six colonies. Defence was one of the first functions to be passed to the new Australian Government. The function of the newly established Department of Defence was to administer the Army and the Navy and supervise the allocation and disbursement of the small defence budget.

The outbreak of World War I led to the creation of an expeditionary force made up of nearly 330,000 men and women who were sent overseas to different theatres of war. This placed unprecedented demands on the small organisation. To administer and provide logistics to such a large military force, the department increased its military and civilian workforce—including a record number of female clerks—from 267 in 1914 to 1,483 by 1918.

Between 1919 and 1932, employment preference in the department was given to returned soldiers. Of the 972 men admitted to permanent positions in the clerical division in this period, 924 were returned soldiers. In the second half of the 1930s, as the effects of the Great Depression eased, the Government slowly increased its defence spending in response to the developing situation in the Far East and in Europe. Between 1934 and 1940, 186 new clerks were appointed to the department. There was also a need for higher educational standards, and the Department of Defence was the leading department in financing university scholarships.

Administrative changes in 1939 resulted in the formation of a group of departments that included three separate service departments (Navy, Army and Air), the civilian Department of Defence, and the Ministry of Supply and Development, which was responsible for military logistics and munitions production. Each body had a separate minister, secretary and budget. This structure would continue for another three decades.

During World War II, the divided structure worked because the three Services were much of the time fighting three ‘different’ wars in three different theatres of operation. The department continued to deal with defence policy and joint service matters and provided a secretariat for the higher committees. When the war ended, a voluntary exodus of many temporary staff members made the employment of returned servicemen easier.

During and after World War II, the location of the Department of Defence in Melbourne created administrative problems due to its distance from the federal government in Canberra. Sir Frederick Shedden, one of the most influential public servants of his time and the Secretary of the department from 1937 to 1956, was largely responsible for the delay in transferring the department to Canberra, as he lived and worked in Melbourne. The move finally happened under Sir Edwin Hicks, who was Secretary of the department from 1956 to 1968.

A 1957 report by Lieutenant General Sir Leslie Morshead, a decorated World War I and II veteran and successful businessman, recommended the amalgamation of the three service departments into a single Department of Defence and the amalgamation of the departments of Supply and Defence Production. The report was not accepted by the government of the day; the disjointed and complex structure continued and management and support of the Services were primarily matters for independent and separate decisions by the service boards. The Defence Administration Committee, established in early 1959, met only annually to review defence expenditure, and the Minister for Defence and his department provided input once a year into the overall service estimates.

In 1967, during Australia’s involvement in the Vietnam War, Lieutenant General (later General) Sir John Wilton, Chairman of the Chiefs of Staff Committee, proposed the formation of a unified Department of Defence and the abolition of the three separate service departments and ministers. Wilton argued that a clear chain of operational control would be needed if Australia were to be involved in future joint military operations. His proposal was unsuccessful.

It was Sir Arthur Tange, the Secretary of the department from 1970 until his retirement in 1979, who was to implement the much-needed change to Defence’s structure and management. In 1973, Tange produced Australian Defence: Report on the Reorganisation of the Defence Group of Departments (the Tange Report). The report contained many of Morshead’s and Wilton’s proposals. Although unpopular and criticised by many, the report’s recommendations were accepted by the government of the day, paving the way for the Defence Force Reorganisation Act 1975. The three single-service departments were abolished and the Department of Defence was formed, headed by a Secretary. In 1976, General (later Sir) Francis Hassett was appointed the first Chief of Defence Force Staff. In October 1984, the title changed to Chief of the Defence Force.

The Secretary of the Department of Defence retained traditional statutory responsibilities as permanent head of the department and adviser to the minister on policy, resources, organisation and finance. The Chief of the Defence Force Staff exercised joint responsibility for the administration of the Defence organisation. This division of responsibilities—the diarchy—has continued through to the present day.



Resource summary

The Defence departmental net cash spend as at 30 June 2014 was $25,689 million. This was an underspend of $438.3 million when compared to the revised estimate as at the Defence Portfolio Budget Statements 2014–15, primarily as a result of:

  • an underspend of $268.6 million in no-win/no-loss operations funding
  • a hand back of $52.3 million in no-win/no-loss foreign exchange funding due to an appreciation in the Australian dollar.

Table 2.1: Departmental net cost of service (cash)

   

2013–14
budget
estimate1
$’000

2013–14
revised
estimate2
$’000

2013–14
actual
result
$’000



Variation
$’000

Cost of service

Employee payments

10,170,235

10,120,793

10,052,671

–68,122

Supplier payments

9,300,167

9,614,890

9,252,251

–362,639

Purchase of specialist military equipment

3,179,327

4,559,211

4,397,336

–161,875

Purchase of inventory

1,054,362

1,069,130

1,088,078

18,948

Purchase of property, plant and equipment3

1,489,833

1,563,983

1,662,996

99,013

Other4

891,869

912,765

925,004

12,239

Total cash used

26,085,793

27,840,772

27,378,336

–462,436

Own source revenue5

1,655,473

1,713,444

1,689,296

–24,148

Net cost of service (cash)

24,430,320

26,127,328

25,689,040

–438,288

Funded by

Appropriation Bills 1, 3 & 5 (Price of Outcomes)

23,796,086

24,516,997

24,272,707

–244,290

Appropriation Bills 2, 4 & 6 (Equity injection)

683,005

1,521,488

1,418,385

–103,103

Other appropriation movements

Return of contributed equity

–48,771

–46,500

–32,441

14,059

Cash holdings from previous appropriations

-–

67,349

–67,349

Decrease to cash at bank

67,994

30,389

–37,605

Total funding source

24,430,320

26,127,328

25,689,040

–438,288

Additional output funding

                 

-

Revised total funding source

24,430,320

26,127,328

25,689,040

–438,288

Defence no-win/no-loss hand-back (net)

                 

320,760

Departmental variance

                 

–117,528

Notes

  1. As published in the Portfolio Budget Statements 2013–14, Table 43.
  2. As published in the Portfolio Budget Statements 2014–15, Table 45.
  3. Includes purchase of land and buildings, infrastructure, plant and equipment, intangibles and heritage and cultural assets.
  4. Includes grants, GST payments, finance costs, repayment of debt, selling costs on sale of assets and other cash used.
  5. Includes sale of goods and services, other cash received, interest received, GST and proceeds from sale of assets.

Figure W2.1: Departmental net cost of service (cash) six year trend

  2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Net Cost of Service (cash) 22,058 24,299 23,939 25,292 23,299 25,689

Note

  1. Departmental net cost of services figures based on in-year dollars.

Table W2.1: Administered net cost of service (cash)

  2013–14
budget
estimate[1]
$'000
2013–14
revised
estimate[2]
$'000
2013–14
actual
result
$'000
Variation
$'000
%
Cost of service
Employees 2,006,026 1,947,625 2,005,083 57,458 3
Subsidies 106,589 103,009 93,553 (9,456) (9)
Grants -   -   -   -   -  
Loans to CAC Act bodies -   -   -   -   -  
CAC Act body investments -   -   -   -   -  
Other -   -   -   -   -  
Total cash used 2,112,615 2,050,634 2,098,636 48,002 2
Cash received
Military superannuation contributions 1,279,078 1,279,902 1,303,030 23,128 2
Fees 12,192 12,727 13,233 506 4
Interest 31,849 29,807 30,000 193 1
Dividends 45,813 51,073 51,073 -   -  
Other 76,648 91,061 70,237 (20,824) (23)
Total cash received 1,445,580 1,464,570 1,467,573 3,003 0
Net cost of service (cash) 667,035 586,064 631,063 44,999 8
Funded by
Appropriations          
Cash from the official public account for appropriations 2,112,615 2,050,634 2,098,636 48,002 2
Cash transfer to the official public account (1,445,580) (1,464,570) (1,467,573) (3,003) 0
Cash holdings at the beginning of the reporting period -   -   -   -   -  
Total funding source 667,035 586,064 631,063 44,999 8

Notes

  1. As published in the Portfolio Budget Statements 2013-14 table 62.
  2. As published in the Portfolio Budget Statements 2014-15 table 64.

Table 2.2: Overall cost to government of Defence outcomes (departmental and administered)

     

Outcome 1
$’000

Outcome 2
$’000

Outcome 3
$’000

Total
$’000

Departmental

Expenses

Employees

10,010,058

156,103

6,226

10,172,387

Suppliers

10,106,307

437,292

22,653

10,566,252

Grants

5,988

42,808

48,796

Depreciation and amortisation

3,867,716

3,867,716

Finance cost

129,106

129,106

Writedown of assets and impairment of assets

852,653

852,653

Net losses from sale of assets

4,340

4,340

Other expenses

91,625

15

92,640

Total expenses

25,068,793

636,218

28,879

25,733,890

Income

Revenue

Goods and services

809,327

17,960

827,287

Other revenue

865,459

865,459

Total revenue

1,674,786

17,960

1,692,746

Gains

Reversals of previous asset writedowns

293,384

293,384

Net gains from sale of assets

Other gains

37,863

37,863

Total gains

331,247

331,247

Total income

2,006,033

17,960

2,023,993

Net cost of departmental outcomes

23,062,760

618,258

28,879

23,709,897

Administered

Expenses

13,010,915

13,010,915

Revenue

1,409,769

1,409,769

Net cost of administered outcomes

11,601,146

11,601,146

Total departmental and administered outcomes

34,663,906

618,258

28,879

35,311,043

Figure W2.2: Administered net cost of service (cash) six year trend

  2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Net Cost of Service (cash) 758 747 616 609 612 631

Note

  1. Administered net cost of services figures based on in-year dollars.

Table W2.2: Total net cost of service (cash)

  2013–14
budget
estimate[1]
$'000
2013–14
revised
estimate[2]
$'000
2013–14
actual
result
$'000
Variation
$'000
%
Outcome 1: The protection and advancement of Australia's national interests through the provision of military capabilities and the promotion of security and stability
Departmental net cost of service  22,877,532 23,440,073 23,062,760 (377,313) (2)
Administered net cost of service 2,937,037 3,738,518 11,601,146 7,862,628 210
Net cost of service for outcome 1 25,814,569 27,178,591 34,663,906 7,485,315 28
Outcome 2: The advancement of Australia's strategic interests through the conduct of military operations and other tasks as directed by Government
Net cost of service for outcome 2 901,621 1,022,827 618,258 (404,569) (40)
Outcome 3: Support for the Australian community and civilian authorities as requested by Government
Net cost of service for outcome 3 16,933 54,097 28,879 (25,218) (47)
Net cost of service for Defence outcomes
Departmental net cost of service  23,796,086 24,516,997 23,709,897 (807,100) (3)
Administered net cost of service 2,937,037 3,738,518 11,601,146 7,862,628 210
Total cost of Defence outcomes 26,733,123 28,255,515 35,311,043 7,055,528 25

Notes

  1. As published in the Portfolio Budget Statements 2013-14.
  2. As published in the Portfolio Budget Statements 2014-15.

Table 2.3: Defence resource statement, 2013–14

 

Actual
available
appropriation
for 2013–14
$’000

Payments
made
2013–14
$’000

Balance
remaining
2013–14
$’000

Ordinary annual services

Outcome 1

23,440,073

23,463,438

–23,365

Outcome 2

1,022,827

761,757

261,070

Outcome 3

54,097

47,512

6,585

Total departmental outputs

24,516,997

24,272,707

244,290

Total ordinary annual services

24,516,997

24,272,707

244,290

Departmental non-operating

Equity injection

1,521,488

1,418,385

103,103

Total departmental non-operating

1,521,488

1,418,385

103,103

Total available annual appropriation

26,038,485

25,691,092

347,393

Other services

Previous years’ outputs (appropriation receivable)

67,349

67,349

Cash available

68,460

32,970

35,490

Funding from other sources

1,046,599

1,046,599

Returns to the Official Public Account (net)

–32,441

–32,441

Total other resourcing

1,149,967

1,047,128

102,839

Total available departmental resourcing

27,188,452

26,738,220

450,232

Special appropriations

Special appropriations limited by criteria/entitlement

Defence Forces Retirement Benefits Act 1948
Part 1, s. 15D and VIC, s. 82ZJ

53,362

53,362

Defence Force Retirement and Death Benefits Act 1973
Part XII, s. 125

1,451,263

1,451,263

Military Superannuation and Benefits Act 1991 Part V, s. 17

500,457

500,457

Defence Force (Home Loans Assistance) Act 1990 Part IV, s. 38

1,577

1,577

Defence Home Ownership Assistance Scheme Act 2008
Part VI, s. 84

91,977

91,977

Other administered

Total special appropriations

2,098,636

2,098,636

Funding from other sources

1,467,573

1,467,573

Returns to the Official Public Account (net)

–1,467,573

–1,467,573

Total other resourcing

Total administered resourcing

2,098,636

2,098,636

Total resourcing

29,287,088

28,836,856

450,232

Special accounts

Opening balance

75,125

75,125

Appropriation receipts

Appropriation receipts—other agencies

Non-appropriation movements to special accounts

33,801

40,544

–6,743

Total special accounts

108,926

40,544

68,382

Table W2.3: Departmental income and expenses

  2013–14
budget
estimate[1]
$'000
2013–14
revised
estimate[2]
$'000
2013–14
actual
result
$'000
Variation
$'000
Expenses
Employees 10,218,326 10,192,335 10,172,387 (19,948)
Suppliers 11,033,920 11,276,055 10,566,252 (709,803)
Depreciation and amortisation 3,441,587 4,004,400 3,867,716 (136,684)
Other expenses[3] 1,380,525 1,062,332 1,127,534 65,202
Total expenses 26,074,358 26,535,122 25,733,889 (801,233)
Income
Revenue from Government 23,796,086 24,516,997 24,197,161 (319,836)
Other income[4] 2,278,272 2,018,125 2,023,993 5,868
Total income 26,074,358 26,535,122 26,221,154 (313,968)
Surplus/(deficit) attributable
to Government
- - 487,265 487,265

Notes

  1. As published in the Portfolio Budget Statements 2013-14 table 48.
  2. As published in the Portfolio Budget Statements 2014-15 table 53.
  3. Includes grants, finance costs, write-down of assets and impairment of assets,foreign exchange losses, losses from sale of assets and other expenses.
  4. Includes sale of goods and rendering of services, rental income, other revenue and gains.

Table W2.4: Departmental income and expenses net variations

  Income and
expense
variation
$'000

Variation
adjustment
$'000

Net
variation
$'000
Expenses    
Employees (19,948)
offset by:
no win / no loss - operations 32,426
Net employees     12,478
Suppliers (709,803)
offset by:
no win / no loss - operations 223,899
Net suppliers     (485,904)
Depreciation and amortisation (136,684)    
Net depreciation     (136,684)
Other 65,202
offset by:
Reversal of previous asset write-downs and impairment 28,831
no win / no loss - operations (3,731)
Net other expenses     90,302
Total expenses (801,233) 281,425 (519,808)
 
Income
Revenue from Government (319,836)
offset by:
no win / no loss - operations 267,655
Net revenue from Government     (52,181)
Other income 5,868
offset by:
no win / no loss - operations (15,061)
reversal of previous asset write-downs and impairment 28,831
Net other income     19,638
Total income (313,968) 281,425 (32,543)
Surplus/(deficit) attributable
to Government
487,265 -   487,265

Table W2.5: Administered income and expenses

  2013–14
budget
estimate[1]
$'000
2013–14
revised
estimate[2]
$'000
2013–14
actual
result
$'000
Variation
$'000
%
Expenses administered on behalf of Government          
Military superannuation benefits 4,202,885 5,019,796 12,851,141 7,831,345 156
Military retention benefits 77,103 77,103 65,570 (11,533) (15)
Subsidies 106,589 103,009 93,641 (9,368) (9)
Grants -   -   -   -   -  
Foreign exchange losses -   -   -   -   -  
Other -   -   563 563 -  
Total expenses 4,386,577 5,199,908 13,010,915 7,811,007 150
Income administered on behalf of Government          
Interest 31,849 29,807 30,000 193 1
Foreign exchange gains -   -   453 453 -  
Military superannuation contributions 1,279,134 1,279,902 1,242,121 (37,781) (3)
Dividends 49,717 50,525 53,991 3,466 7
Fees 12,192 12,727 13,448 721 6
Other 76,648 88,429 69,756 (18,673) (21)
Total income 1,449,540 1,461,390 1,409,769 (51,621) (4)

Notes

  1. As published in the Portfolio Budget Statements 2013-14 table 60.
  2. As published in the Portfolio Budget Statements 2014-15 table 62.

People summary

Efforts to grow the ADF while concurrently achieving efficiencies in Defence’s APS workforce have had a clear effect on the Defence workforce. The actual funded strength of the ADF and the actual staffing level (full-time equivalent, FTE) for the APS at 30 June 2014 were 56,922 and 19,988, respectively, compared to 56,117 and 21,006 at 30 June 2013. These actual staffing figures are the most reliable indicator of end-of-year staffing levels.

For the APS, this was a reduction of 1,018 actual FTE from 2012–13. This reflects the continuing downward trend following a reduction of 1,278 in 2012–13. The downward trend is also evident in other Defence workforce statistical data. The average FTE for 2013–14 of 20,496 reflected the average number of employees receiving salary or wages over the financial year, with adjustments for casual and part-time staff. This compared to the 2012–13 average FTE of 21,534. As the APS workforce trends down, the average figure for the year will always be above the end-of-year actual figure. The downward trend will continue in 2014–15 in line with government direction and budget forecasts.

Defence’s APS headcount for the year also showed a downward trend, from 22,105 at 30 June 2013 to 21,194 at 30 June 2014, a reduction of 911. The headcount figure includes paid and unpaid employees, covering full-time, part-time, ongoing and non-ongoing employees. (The headcount figure should not be used to calculate overall numbers of paid staff (FTE) in Defence.)

The ADF is increasing to a permanent workforce strength of around 58,500. It grew by 805 (from a funded strength of 56,117 to 56,922) in 2013–14, and is forecast to continue its growth in future years.

Further details on the workforce are in Chapter 8.

Actual staffing levels

Infographic  providing the comparative numbers in the permanent workforce for the ADF—Navy, Army and Air Force—and the APS as at 30 June 2013 and 30 June 2014. It shows an overall increase in ADF staff and a decline in the numbers of APS staff.

Workforce planning figures

Table 2.4: Defence and DMO consolidated workforce table

      

2012–13
actual
result

2013–14
budget
estimate1

2013–14
revised
estimate2

2013–14
actual
result

Variation

%

ADF3

Total ADF permanent force

56,607

58,235

56,570

56,364

–206

–0.4

APS

APS—Defence

15,786

15,547

15,268

15,280

12

0.1

APS—DMO

5,389

5,307

4,878

4,812

–66

–1.4

APS—DMO (APS backfill)

359

363

428

404

–24

–5.6

Total APS

21,534

21,217

20,574

20,496

–78

–0.4

Contractors4

Defence contractors

358

445

346

340

–6

–1.7

DMO contractors

33

48

28

18

–10

–35.7

Total contractors

391

493

374

358

–16

–4.3

Total workforce strength

78,532

79,945

77,518

77,218

–300

–0.4

Notes

All numbers represent average full-time equivalents. Employees on forms of leave without pay are not included.

  1. As published in the Portfolio Budget Statements 2013–14.
  2. As published in the Portfolio Additional Estimates Statements 2013–14.
  3. Numbers for ADF permanent force include ADF members in the DMO, and Reservists on continuous full-time service but excludes Active and High Ready Reserve Reservists (Navy 2,021, Army 14,662, Air Force 3,058) who rendered service during the financial year. These are excluded because, due to the nature of Reserve service, numbers for the Reserve force represent headcounts rather than average full-time equivalents.
  4. Contractors are individuals under contract performing agency roles. Contractors are not APS employees.

Figure 2.3: Defence workforce summary (including DMO) as at 30 June 2014

Figure 2.3 is a pie graph showing the percentage of personnel in each aspect of the Defence workforce as at 30 June 2014. The Army has the highest percentage at 37 per cent; the smallest percentage is contractors at 0.5 per cent.