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Annual Report 2013-14

Volume 1, Part 2 : Performance

Chapter 3: Outcome 1


The protection and advancement of Australia’s national interests through the provision of military capabilities and the promotion of security and stability

Summary

The primary focus of Outcome 1 is on maintaining the capacity to support current commitments and provide strategic response options to the Government to meet the range of potential future security contingencies. As well as the provision of military capabilities, this outcome encompasses all of the policy, command and support functions undertaken by the organisation.

Structure

There are 17 programs under Outcome 1. These include departmental outputs for programs 1.1 to 1.13 and administered expenses relating to retirements, superannuation and housing support services.

Figures 3.1 and 3.2 show the extent to which the deliverables and key performance indicators for Outcome 1 have been met.

Figure 3.1: Deliverables

Figure 3.1 is a pie graph showing that 67 per cent of the deliverables for outcome 1 have been met, 29 per cent have been substantially met and 4 per cent have been partially met.

Figure 3.2: Key performance indicators

Figure 3.2 is a pie graph showing that 78 per cent of the key performance indicators have been met, 18 per cent have been substantially met and 4 per cent have been partially met.

Table 3.1: Total cost of Defence Outcome 1

 

2013–14
budget
estimate1
$’000

2013–14
revised
estimate2
$’000

2013–14
actual
result3
$’000

Variation
$’000

%

Program 1.1: Office of the Secretary and CDF

Revenues from other sources

539

539

1,592

1,053

195

Departmental outputs

164,183

164,146

162,417

–1,729

–1

Program 1.2: Navy Capabilities

Revenues from other sources

248,407

164,756

131,850

–32,906

–20

Departmental outputs

4,332,858

4,585,977

4,401,693

–184,284

–4

Program 1.3: Army Capabilities

Revenues from other sources

156,852

101,736

108,879

7,143

7

Departmental outputs

5,343,805

5,729,352

5,684,714

–44,638

–1

Program 1.4: Air Force Capabilities

Revenues from other sources

323,449

218,148

138,341

–79,807

–37

Departmental outputs

4,165,276

4,564,679

4,384,276

–180,403

–4

Program 1.5: Intelligence Capabilities

Revenues from other sources

13,550

12,276

7,610

–4,666

–38

Departmental outputs

524,824

518,654

550,113

31,459

6

Chief Operating Officer

Revenues from other sources

348,905

333,096

421,708

88,612

27

Departmental outputs

5,173,208

5,279,776

5,020,614

–259,162

–5

Program 1.6: Chief Operating Officer—Defence Support and Reform

Revenues from other sources

334,311

324,849

405,073

80,224

25

Departmental outputs

3,747,675

3,729,187

3,623,672

–105,515

–3

Program 1.7: Chief Operating Officer—Chief Information Officer

Revenues from other sources

14,594

8,247

16,166

7,919

96

Departmental outputs

972,779

1,089,636

970,082

–119,554

–11

Program 1.8: Chief Operating Officer—Defence People

Revenues from other sources

469

469

Departmental outputs

452,754

460,953

426,860

–34,093

–7

Program 1.9: Defence Science and Technology

Revenues from other sources

35,317

32,112

32,290

178

1

Departmental outputs

427,200

421,217

425,664

4,447

1

Program 1.10: Vice Chief of the Defence Force

Revenues from other sources

231,636

329,338

287,835

–41,503

–13

Departmental outputs

1,251,094

1,196,585

1,403,090

206,505

17

Program 1.11: Joint Operations Command

Revenues from other sources

373

334

1,290

956

286

Departmental outputs

50,680

48,259

45,208

–3,051

–6

Program 1.12: Capability Development

Revenues from other sources

86,203

20,208

65,647

45,439

225

Departmental outputs

883,841

344,979

444,403

99,424

29

Program 1.13: Chief Finance Officer

Revenues from other sources

822,302

794,797

808,991

14,194

2

Departmental outputs

560,563

586,449

540,568

–45,881

–8

Program 1.14: Defence Force Superannuation Benefits

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

Defence Force Retirements and Death Benefits Act 1973 Part XII, s.125(3)

96,957

124,657

7,924,126

7,799,469

6,257

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

1,255,387

2,020,000

2,053,485

33,485

2

Total administered expenses

1,352,344

2,144,657

9,977,611

7,832,954

365

Administered revenue from other sources

1,279,134

1,279,902

1,242,134

–37,768

–3

Total Program 1.14

73,210

864,755

8,735,477

7,870,722

910

Program 1.15: Defence Force Superannuation Nominal Interest

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

26,918

21,954

22,100

146

1

Defence Force Retirements and Death Benefits Act 1973 Part XII, s.125(3)

1,481,592

1,345,795

1,344,000

–1,795

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

1,419,134

1,584,493

1,573,000

–11,493

–1

Total administered expenses

2,927,644

2,952,242

2,939,100

–13,142

Administered revenue from other sources

Total Program 1.15

2,927,644

2,952,242

2,939,100

–13,142

Program 1.16: Housing Assistance

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

1,963

1,817

1,577

–240

–13

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

104,626

101,192

92,064

–9,128

–9

Total administered expenses

106,589

103,009

93,641

–9,368

–9

Administered revenue from other sources

12,192

12,727

13,448

721

6

Total Program 1.16

94,397

90,282

80,193

–10,089

–11

Program 1.17: Other Administered

Administered revenue from other sources

158,214

168,761

154,187

–14,574

–9

Expenses

563

563

Total Program 1.17

–158,214

–168,761

–153,624

15,137

–9

Total resourcing

Total departmental outputs

22,877,532

23,440,073

23,062,760

–377,313

–2

Total administered

2,937,037

3,738,518

11,601,146

7,862,628

210

Total departmental revenue from other sources

2,267,533

2,007,340

2,006,033

–1,307

Total administered revenue from other sources

1,449,540

1,461,390

1,409,769

–51,621

–4

Equity injection

683,005

1,521,488

1,418,385

–103,103

–7

Total resources for Outcome 1

30,214,647

32,168,809

39,498,093

7,329,284

23

Notes

  1. As published in the Portfolio Budget Statements 2013–14, Table 11.
  2. As published in the Portfolio Budget Statements 2014–15, Table 12.
  3. At the program level, departmental revenues from other sources include minor reclassifications from expenses.

Table W3.1: Departmental cost summary for outcome 1

  2013–14
budget
estimate[1]
$'000
2013–14
revised
estimate[2]
$'000
2013–14
actual
result
$'000


Variation
$'000
%
Expenses

Employees

10,078,358

9,999,694

10,010,058

10,364

0

Suppliers

10,293,688

10,430,080

10,106,307

(323,773)

(3)

Grants

6,319

6,736

5,988

(748)

(11)

Depreciation and amortisation

3,441,587

4,004,400

3,867,716

(136,684)

(3)

Finance cost

132,739

126,581

129,106

2,525

2

Write-down of assets and impairment of assets

1,123,488

790,007

852,653

62,646

8

Net losses from sale of assets

4,340

4,340

Other expenses

68,886

89,915

92,625

2,710

3

Total expenses

25,145,065

25,447,413

25,068,793

(378,620)

(1)

Income

Revenue

Goods and services

820,941

816,889

809,327

(7,562)

(1)

Other revenue

873,957

850,174

865,459

15,285

2

Total revenue

1,694,898

1,667,063

1,674,786

7,723

0

Gains

Reversals of previous asset write-downs

551,602

322,215

293,384

(28,831)

(9)

Net gains from sale of assets

15,907

12,936

(12,936)

(100)

Other gains

5,126

5,126

37,863

32,737

639

Total gains

572,635

340,277

331,247

(9,030)

(3)

Total income

2,267,533

2,007,340

2,006,033

(1,307)

(0)

Departmental cost summary for outcome 1

22,877,532

23,440,073

23,062,760

(377,313)

(2)

Comment
This table excludes capital payments for outcomes.

Notes

  1. Total aggregation of outcome 1 programmes as published in the Portfolio Budget Statements 2013-14.
  2. Total aggregation of outcome 1 programmes as published in the Portfolio Budget Statements 2014-15.