skip to navigation skip to content skip to footer

Chapter 10 - Other Mandatory Information


Grants

Information on grants awarded by Defence during 2016–17 is available at www.defence.gov.au/disclosures.asp. In 2016–17, Defence paid approved grants with a total value of $132.9 million, an increase of $4.2 million compared to the previous year (Table 10.1).

Table 10.1: Approved grants, 2015–16 and 2016–17

 

2015–16 actual value ($’000)1

2016–17 actual value ($’000)1

Grants programs
Army History Research Grants Scheme
52
55
Defence Science and Technology Group—Industry Placement Program
384
Family Support Funding Program
1,473
1,553
Indigenous Australians and the Australian Defence Force
86
Industry Skilling Enhancement
563
600
New Air Combat Capability—Industry Support Program
2,654
1,038
Priority Industry Capability Innovation Program
291
1,265
Skilling Australia’s Defence Industry
3,710

Other grants

3 Wing Australian Air Force Cadets
49
ADF Long Tan Youth Leadership and Teamwork Awards
1,602
Afghan National Army Trust Fund contribution
107,052
105,876
Alliance 21 Program, United States Studies Centre, University of Sydney
560 260
 
Army and Air Force Canteen Service
800
Australian Airports Association
720
Australian Member Committee of the Council for Security Cooperation in the Asia–Pacific (multi-year grant)
153
129
Australian National University—Shedden Professor of Strategic Policy Studies position (multi-year grant)
339
291
Australian Nuclear Science and Technology Organisation
2,000
Australian Peacekeeping Memorial Project
2,000
1,100
Australian Sailor Pty Ltd
250
Australian Strategic Policy Institute (multi-year grant)
3,358
3,442
Australian Surf Rowers League
200
Australian War Memorial—Anzac Centenary travelling exhibition
2,727
2,727
Australian War Memorial—MV Krait
250
China Matters
100
Fisher House Foundation (multi-year grant)
25
Institute for Regional Security (previously Kokoda Foundation)—Young Leaders Strategic Program
176
176
Invictus Games 2018
7,000
Multinational Force and Observers (multi-year grant)
939
870
National Boer War Memorial Association
1,450
500
Research Unit on Military Law and Ethics at the University of Adelaide— development of a Manual on International Law Applicable to Military Uses of Outer Space
36
Royal United Services Institute of Australia
99
Sir Richard Williams Foundation (multi-year grant)
50
50
Stand Tall for PTS
150
220
University of Melbourne—PhD study
19
UNSW Canberra at the Australian Defence Force Academy
20
Total approved grants paid
128,623
132,866

Note: Figures are GST exclusive.

Advertising and market research

During 2016–17, Defence conducted advertising for recruitment and other campaigns. Information on those advertising campaigns is available in reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website, www.finance.gov.au.

Table 10.2 shows total advertising and market research expenditure by Defence during 2016–17. Table 10.3 shows Defence spending on advertising and market research by Service and Group.

Table 10.2: Total advertising and market research, by type, 2016–17

Type 2016–17 expenditure ($)
Advertising
19,069,792
Market research
1,087,653
Polling
Direct mail
18,009
Media advertising
45,385,214
Total
65,560,668

Note: All figures are GST inclusive

Table 10.3: Total advertising and market research expenditure, by Service and Group, 2016–17

Service or Group

2015–16 expenditure ($)

2016–17 expenditure ($)

Navy
23,014
48,498
Army
29,201
98,592
Air Force
225,454
277,354
Associate Secretary (Defence Executive Support)
126,203
Vice Chief of the Defence Force Group
139,630
127,217
Joint Operations Command
Strategic Policy and Intelligence Group
16,023
171,070
Chief Finance Officer Group
Chief Information Officer Group
192,945
315,021
Capability Acquisition and Sustainment Group
62,808
57,710
Defence Science and Technology Group
34,332
76,473
Estate and Infrastructure Group
160,166
35,596
Defence People Group
69,685,027
64,353,137
Total
70,694,803
65,560,668

Note: All figures are GST inclusive.

Table 10.4 provides details of individual payments of more than $13,000 (including GST) to persons or organisations for advertising campaigns and market research.

Table 10.4: Individual payments of more than $13,000 to advertising and market research agencies, by Service and Group, 2016–17

Service/Group and agency name

2016–17 Purpose expenditure ($)

Purpose
Navy
Direct mail
Direct Response Australia Pty Ltd
18,009
Coordination of the Young Endeavour Youth Scheme mail-out to schools
Army
Advertising
Havas Worldwide Australia Pty Ltd
66,554
ADF recruitment
Air Force
Media advertising
Dentsu Mitchell Media Australia
29,825
Volunteer position of Commander Australian Air Force Cadets
Vice Chief of the Defence Force Group
Advertising
Chilli Promotions Pty Ltd

15,345

Promotional items for the Defence Work Experience Program
Intandem

19,915

Promotional items for the Defence Work Experience Program
Promotion Products Pty Ltd

30,402

Promotional items for the Defence Work Experience Program

Media advertising

Mitchell and Partners Australia

13,780

Multiple public notices across Australia to advise the community of upcoming range noise due to military training or explosive ordnance activities

Strategic Policy and Intelligence Group

Advertising

Tank Pty Ltd

69,315

Recruitment
Infocus Australia

14,837

Recruitment
Mitchel and Partners Australia

73,419

Recruitment

Media advertising

Enex Pty Ltd

13,500

Media production for Stay Smart Online
Chief Information Officer Group
Advertising
White Pages
315,021
White Pages advertising
Capability Acquisition and Sustainment Group
Advertising
HorizonOne Recruitment

39,364

Non-ADF advertising costs for Government-directed recruitment for various projects
Mitchell Communications Group

18,346

Non-ADF advertising costs for Government-directed recruitment for multiple submarine programs

Defence Science and Technology Group

Media advertising

Faircount Media Group LCC (USA)

13,366

Advertisement in 100 Years of World-Class Leadership in Materials and Manufacturing for Our Airmen
Refraction Media Pty Ltd

24,142

Full-page advertisement for STEM in Careers with Science 2017, Careers with Maths 2017, Careers with Engineering 2017 and Careers with Code 2017
The Royal Institution of Australia (RiAus)

13,200

Ultimate Careers 2017 corporate advertising package

Estate and Infrastructure Group

Advertising

Mitchell and Partners Australia

18,547

Advertisement placement service—newspaper  
Mitchell and Partners Australia

17,049

Public notices—field firing ranges—metro areas  

Defence People Group

Advertising

Havas Worldwide Australia Pty Ltd

18,312,248

ADF recruitment advertising

Market research

Chat House Research Pty Ltd
277,395
Qualitative and quantitative research to maximise ADF recruitment targets
GfK Australia Pty Ltd
81,764
Qualitative and quantitative research to maximise ADF recruitment targets
Hall & Partners Open Mind
600,865
Qualitative and quantitative research to maximise ADF recruitment targets
Taylor Nelson Sofres
81,011
Qualitative and quantitative research to maximise ADF recruitment targets
Whereto Research Based Consulting
60,643
Qualitative and quantitative research to maximise ADF recruitment targets

Media advertising

Australian Public Service Commission
109,946
APS employees (non–Capability Acquisition and Sustainment Group)— Public Service Gazette
Dentsu Mitchell Media Australia
44,794,463
Planning and placement of campaign advertising

Note: All figures are GST inclusive.

Legal expenses

Expenditure on internal and external legal services in 2016–17 is shown in tables 10.5 to 10.7. Internal expenses include salaries for military and civilian staff, divisional operating costs and military justice disbursements. External expenses are professional fees, disbursements and legal assistance at Commonwealth expense.

Table 10.5: Estimated expenditure on internal and external legal services, 2015–16 and 2016–17

Type of legal expenditure
2015–16 ($m)
2016–17 ($m)
Internal
48.02
46.92
External
38.02
46.59
Total
86.04
93.51

Note: All figures are GST exclusive.

Table 10.6: Estimated cost breakdown of internal legal expenses, 2015–16 and 2016–17

Item
2015–16 ($m)
2016–17 ($m)
Salaries for military lawyers
19.83
19.14
Salaries for civilian staff
15.91
14.93
ADF Reserve legal officers
7.45
8.07
Operating costs of Defence Legal Division
4.41
4.43
Military justice disbursements
0.42
0.35
Total
48.02
46.92

Note: All figures are GST exclusive.

Table 10.7: Estimated cost breakdown of external legal expenses, 2015–16 and 2016–17

Item
2015–16 ($m)
2016–17 ($m)
Professional fees—Defence legal panel
35.48
43.84
Disbursements
2.19
2.38
Legal assistance at Commonwealth expense
0.35
0.37
Total
38.02
46.59

Note: All figures are GST exclusive.

Omissions and errors

Defence Annual Report 2015–16

Work health and safety incidents and number of people involved, 2012–13 to 2015–16 (Volume 1, page 108, Table 7.21)

The number of fatalities was incorrectly reported for 2014–15 and 2015–16. Examination of individual fatality records identified a duplicate record reported within the 2014–15 figure (reported in the Defence Annual Report 2015–16 as 13 fatalities). This has now been corrected to 12 fatalities for 2014–15. Data for 2015–16 was incorrectly reported as 10 fatalities. On investigation, it was found that this was due to human error. The correct figure for 2015–16 is nine fatalities.

In the same table, the total number of incidents and number of people involved for 2014–15 were incorrectly reported as 14,411 and 15,551 respectively. Examination of reported data shows that erroneously reported incidents were included into the report dataset. On investigation, it was found that this was due to human error. The correct figures for the total number of incidents and number of people involved for 2014–15 are 13,891 and 15,164 respectively (data as at 30 June 2017).

Suppliers expense—operating lease commitments (Volume 2, page 24, note 1.1B)

The value of operating lease commitments was incorrectly reported due to foreign exchange implications. The correct value of commitments (in thousands) was $8,176,420.

Reconciliation of the opening and closing balances of property, plant and equipment, and intangibles— capital commitments (Volume 2, page 35, note 3.2A)

The value of capital commitments was incorrectly reported due to foreign exchange implications. The correct value of commitments (in thousands) by category was:

  • Land and buildings—$1,963,498
  • Specialist military equipment—$14,586,125
  • Infrastructure, plant and equipment—$1,478,157
  • Intangibles—$95,107

Annual appropriation for 2015–16 (Volume 2, page 56, note 5.1A)

The value of section 74 receipts and appropriation applied value were incorrectly reported as (in thousands) $358,227 and $29,386,391 respectively. The GST portion of section 74 receipts was recorded incorrectly. The correct value (in thousands) was $701,833 of section 74 receipts and $29,729,997 of appropriation applied.

Payment of accounts

In 2016-17, Defence met 99 per cent of all payment transactions by their due date. This result is ahead of the 90 per cent Government benchmark. The volume of payments through Defence Purchasing Cards and Travel Cards represented more than 81 per cent (2015–16, 89 per cent) of all payments, which continued to have a positive effect on the paid-by-due-date result (Table 10.8).

Table 10.8: Accounts paid by due date, 2014–15 to 2016–17

2014–15
2015–16
2016–17
Number of accounts paid
2,013,583
2,113,079
2,410,605
Accounts paid by due date
1,997,627
2,101,908
2,386,393
Percentage of accounts paid by due date
99.2
99.5
99.0

Tactical payment scheme

The tactical payment scheme was legislated on 1 July 2009, under sections 123H and 123J of the Defence Act 1903. The scheme was introduced in 2009–10 to provide a means for making expeditious non-liability payments resulting from military actions by deployed forces. This scheme is critical for maintaining local community support and thereby ensuring the safety of deployed forces.

In 2016–17, eight individual payments totalling $1,896 were made under the scheme. Seven payments were a consequence of minor damage to property from motor vehicles, and one payment related to a damaged laptop.