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Annual Report 2014–15

Volume 1, Part 2 : Performance

Chapter 3
Outcome 1

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 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, the outcome encompasses all of the policy, command and support functions undertaken by the organisation.

There are 17 programmes under Outcome 1. These include departmental outputs for programmes 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 were met in 2014–15.

Figure 3.1: Deliverables

Figure 3.2: Key performance indicators

Table 3.1: Total cost of Defence Outcome 1

2014–15
budget
estimate[1]
$’000

2014–15
revised
estimate[2]
$’000

2014–15
actual
result[3]
$’000

Variation
$’000

%

Programme 1.1 Office of the Secretary
and CDF

Revenues from other sources

538

538

2,066

1,528

284

Departmental outputs

160,008

169,128

178,346

9,218

5

Programme 1.2 Navy Capabilities

Revenues from other sources

128,840

120,964

170,177

49,213

41

Departmental outputs

4,797,105

5,103,368

4,883,020

–220,348

–4

Programme 1.3 Army Capabilities

Revenues from other sources

108,015

103,207

94,003

–9,204

–9

Departmental outputs

5,986,472

6,498,449

6,696,643

198,194

3

Programme 1.4 Air Force Capabilities

Revenues from other sources

194,350

165,358

171,550

6,192

4

Departmental outputs

4,761,993

5,163,895

4,796,682

–367,213

–7

Programme 1.5 Intelligence Capabilities

Revenues from other sources

11,478

11,500

8,962

–2,538

–22

Departmental outputs

537,966

558,483

654,608

96,125

17

Chief Operating Officer

Revenues from other sources

356,600

382,611

420,204

37,593

10

Departmental outputs

5,548,196

5,674,340

5,634,111

–40,229

–1

Programme 1.6 Chief Operating Officer—Defence Support and Reform

Revenues from other sources

351,297

377,744

418,747

41,003

11

Departmental outputs

4,085,667

3,976,543

3,957,221

–19,322

Programme 1.7 Chief Operating Officer—Chief Information Officer

Revenues from other sources

5,303

4,867

1,151

–3,716

–76

Departmental outputs

979,344

1,253,555

1,238,654

–14,901

–1

Programme 1.8 Chief Operating Officer—Defence People

Revenues from other sources

306

306

Departmental outputs

483,185

444,242

438,235

–6,007

–1

Programme 1.9 Defence Science and Technology

Revenues from other sources

35,159

32,867

28,532

–4,335

–13

Departmental outputs

408,191

416,455

439,766

23,311

6

Programme 1.10 Vice Chief of the Defence Force

Revenues from other sources

346,506

362,077

347,097

–14,980

–4

Departmental outputs

1,230,805

1,165,416

1,469,576

304,160

26

Programme 1.11 Joint Operations Command

Revenues from other sources

336

235

235

-

Departmental outputs

52,168

43,438

38,119

–5,319

–12

Programme 1.12 Capability Development

Revenues from other sources

26,224

17,261

33,994

16,733

97

Departmental outputs

1,423,081

588,603

614,025

25,422

4

Programme 1.13 Chief Finance Officer

Revenues from other sources

805,333

803,204

695,440

–107,764

–13

Departmental outputs

556,532

111,005

312,412

201,407

181

Programme 1.14 Defence Force Superannuation Benefits

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

-

-

-

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

105,382

154,000

141,195

–12,805

–8

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

1,318,868

2,337,883

2,281,432

–56,451

–2

Total administered expenses

1,424,250

2,491,883

2,422,627

–69,256

–3

Administered revenue from other sources

1,324,094

1,316,539

1,285,809

–30,730

–2

Total Programme 1.14

100,156

1,175,344

1,136,818

–38,526

–3

Programme 1.15 Defence Force Superannuation Nominal Interest

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

28,598

23,000

23,000

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

1,782,778

1,640,000

1,641,000

1,000

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

1,567,812

1,743,000

1,742,000

–1,000

Total administered expenses

3,379,188

3,406,000

3,406,000

Administered revenue from other sources

Total Programme 1.15

3,379,188

3,406,000

3,406,000

Programme 1.16 Housing Assistance

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

1,511

1,357

1,156

–201

–15

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

111,653

103,175

97,206

–5,969

–6

Total administered expenses

113,164

104,532

98,362

–6,170

–6

Administered revenue from other sources

13,335

13,953

14,297

344

2

Total Programme 1.16

99,829

90,579

84,065

–6,514

–7

Programme 1.17 Other Administered

Administered revenue from other sources

133,463

109,627

130,185

20,558

19

Expenses

11

11

Total Programme 1.17

–133,463

–109,627

–130,174

–20,547

19

Total resourcing

Total departmental outputs

25,462,517

25,492,580

25,717,309

224,729

1

Total administered

3,445,710

4,562,296

4,496,710

–65,586

–1

Total departmental revenue from other sources

2,013,379

1,999,587

1,972,260

–27,327

–1

Total administered revenue from other sources

1,470,892

1,440,119

1,430,291

–9,828

–1

Equity injection

2,463,678

2,758,491

2,758,491

Total resources for Outcome 1

34,856,176

36,253,073

36,419,788

166,715

Notes

  1. As published in the Portfolio Budget Statements 2014–15, Table 12.
  2. As published in the Portfolio Budget Statements 2015–16, Table 12.
  3. At the programme level, departmental revenues from other sources include minor reclassifications from expenses.

Web table 3.1: Departmental cost summary for outcome 1

2014-15
budget
estimate[1] $'000

2014-15
revised
estimate[2] $'000

2014-15
actual
result
$'000



Variation
$'000




%

Expenses

Employees

10,467,908

10,227,227

10,247,338

20,111

0

Suppliers

11,803,232

11,833,467

11,443,367

(390,100)

(3)

Grants

6,482

10,514

10,966

452

4

Depreciation and amortisation

4,178,150

4,288,756

4,257,845

(30,911)

(1)

Finance cost

146,644

150,625

137,869

(12,756)

(8)

Write-down of assets and impairment of assets

828,597

956,565

1,421,750

465,185

49

Foreign exchange losses

-

-

2,054

2,054

-

Net losses from sale of assets

-

-

51,643

51,643

-

Other expenses

44,883

25,013

116,734

91,721

367

Total expenses

27,475,896

27,492,167

27,689,566

197,399

1

Income

Revenue

Goods and services

795,316

817,308

849,440

32,132

4

Other revenue

848,812

854,614

790,683

(63,931)

(7)

Total revenue

1,644,128

1,671,922

1,640,123

(31,799)

(2)

Gains

Reversals of previous asset write-downs

339,091

313,518

294,866

(18,652)

(6)

Net gains from sale of assets

24,906

8,893

-

(8,893)

(100)

Other gains

5,254

5,254

37,271

32,017

609

Total gains

369,251

327,665

332,137

4,472

1

Total income

2,013,379

1,999,587

1,972,260

(27,327)

(1)

Departmental cost summary for outcome 1

25,462,517

25,492,580

25,717,306

224,726

1

Notes

  1. This table excludes capital payments for outcomes.
  2. Total aggregation of outcome 1 programmes as published in the Portfolio Budget Statements 2014–15.
  3. Total aggregation of outcome 1 programmes as published in the Portfolio Budget Statements 2015–16.