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Chapter 10 - Other mandatory information


Grants

Information on grants expenditure awarded by Defence during 2017–18 is available at www.defence.gov.au/disclosures.asp. In 2017–18, Defence paid approved grants with a total value of $131.7 million—a decrease of $1.0 million compared with the previous year (Table 10.1).

Table 10:1: Approved grants, 2016–17 and 2017–18

 
2016–17 actual value ($’000)
2017–18 actual value ($’000)
Grants programs
Army History Research Grants Scheme
55
65
Family Support Funding Program
1,553
1,422
The ADF Long Tan Youth Leadership and Teamwork Awards
1,602
1,655
Centre for Defence Industry Capability (through DIIS)
-
32
Defence Cooperative Research Centre (through DIIS)
-
4,000
Previous grants programs
2,989
-
Other grants
AW Bell Pty Ltd
402
Alliance 21—University of Sydney
260
780
Army and Air Force Canteen Service
800
400
Australasian Legal Information Institute (AustLII)
-
60
Center for Strategic and International Studies
-
668
Central Bureau Intelligence Corps Associations
-
6
China Matters
-
150
Ferra Engineering Pty Ltd
-
950
Find AE1 Limited
-
500
Heat Treatment Pty Ltd
-
82
Institute of Regional Affairs
-
176
Kokatha Aborginal Cooperation
-
23
Multinational Force and Observers
870
880
Levett Engineering
-
108
Lintex Pty Ltd
-
144
Lovitt Technologies
-
11
Lowy Institute of International Policy
-
338
Maralinga Tjarutja Grant
-
9
PHM Technology
-
238
Peace Operations Training Institute
-
282
Re-Engineering Australia
-
600
Regional Development Australia
-
700
RUAG Australia Pty
-
950
Royal United Services Institute of Australia
-
61
Stand Tall 4 PTS
220
-
The Arabana Aboriginal Coop
-
23
The Afghan National Army Trust Fund Contribution
105,876
104,452
The Australian Airports Association
720
360
The American Australian Association
-
3,000
The Australian Member Committee of the Council for Security Cooperation in the Asia-Pacific
129
-
The Australian National University
291
430
The Australian Nuclear Science and Technology Organisation
2,000
-
The Australian Peacekeeping Memorial Project
1,100
-
The Salt Ash School
-
44
The Australian Strategic Policy Institute
3,442
3,528
The Australian Surf Rowers League
200
180
The Australian War Memorial
2,977
250
The Australian Women’s Pilot Association
-
29
The Institute for Regional Security (previously Kokoda Foundation)—Young Leaders Strategic programme
176
 
The Invictus Games 2018
7,000
-
The National Boer War Memorial Association
500
-
The Research Unit on Military Law & Ethics at the University of Adelaide—Development of a Manual of International Law Applicable to Military uses of Outer Space
36
-
The Sir Richard Williams Foundation
50
50
The United Nations Medical Service
-
377
The University of New South Wales
20
40
The University of Tasmania—Design Hub and Innovation
-
250
Total approved grants paid
132,866
128,905

Notes:

  1. Figures are GST exclusive.
  2. Discrepancies in tables between totals and sum of components are due to rounding.

Advertising and market research

During 2017–18, Defence conducted advertising for recruitment and other campaigns. Further information on those advertising campaigns is available at www.defence.gov.au and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.

Table 10.2 shows total advertising and market research expenditure by Defence during 2017–18. 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, 2017–18

Type
2017–18 expenditure ($)
Advertising
15,379,275
Market research
1,490,728
Polling
-
Direct mail
4,620
Media advertising
59,555,818
Total
76,430,441

Note: All figures are GST inclusive.

Table 10.3: Total advertising and market research expenditure, by Service and Group, 2016–17 and 2017–18

Service or Group
2016–17 expenditure ($)
2017–18 expenditure ($)
Strategic Policy and Intelligence Group
171,070
17,930,182
Defence Executive Support
-
48,705
Chief Finance Officer Group
Joint Capabilities Group
48,302
63,409
Navy
48,498
92,455
Army
98,592
620,032
Air Force
277,354
264,787
Australian Defence Force Headquarters
78,915
187,838
Capability Acquisition and Sustainment Group
57,710
121,123
Estate and Infrastructure Group
35,596
159,278
Chief Information Officer Group
315,021
 
Defence People Group
64,353,137
56,878,262
Defence Science and Technology Group
76,473
64,370
Total
65,560,668
76,430,441

Note: All figures are GST inclusive.

Table 10.4 provides details of individual payments of more than $13,200 (GST inclusive) to persons or organisations for advertising campaigns and market research.

Table 10.4: Individual payments of more than $13 200 to advertising and market research agencies, by Service and Group, 2017–18

Service/Group and agency name
2017–18 expenditure ($)
Purpose
Strategic Policy and Intelligence Group
Advertising
Mitchell & Partners
14,352
Recruitment
Stack Overflow
16,346
Recruitment
Tank Pty Ltd
15,000
Recruitment
Market research
ORIMA Research Pty Ltd
119,600
Validate the effectiveness of the media advertising (campaign)
Media advertising
Dentsu X Australia Pty Ltd
15,398,312
Industry information campaign
TBWA Melbourne
2,366,572
Industry information campaign
Defence Executive Support
Advertising
Creative Universe Pty Ltd
25,000
Advertising to support Defence’s commitment to delivering innovation, best-practice solutions and ideas
The United Services Institute of the Australian Capital Territory
15,000
Sponsorship of the ACT Blamey Oration
Joint Capability Group
Media advertising
Dentsu X Australia Pty Ltd
13,763
Public notices to advise the community of upcoming range noise due to military training or explosive ordnance activities
Navy
Media advertising
Facebook advertising campaign
20,882
Young Endeavour Voyages Facebook advertising campaigns
Superlunar Pty Ltd
24,257
Young Endeavour Voyages TV advertising campaigns
Army
Advertising
Dunham and Company
40,670
Develop brand for Army Chaplaincy
Havas Worldwide Australia Pty Ltd
557,495
ADF recruitment for Army Indigenous Development Program
Air Force
Advertising
Paula M Promotions
67,256
Merchandise for Exercise Pitch Black, air shows and minor events
Media advertising
Smooth FM 91.5 Pty Ltd
31,944
Merchandise for Exercise Pitch Black, air shows and minor events
Last Minute Multi Media
48,984
Advertising for visitor attendance at the Royal Australian Air Force Museum
News Corp Australia
14,000
Advertising for visitor attendance at the Royal Australian Air Force Museum
Capability Acquisition and Sustainment Group
Media advertising
Dentsu Mitchell Media Pty Ltd
44,245
Multiple public notices
Estate and Infrastructure Group
Advertising
Dentsu Mitchell Media Australia Pty Ltd
58,649
Advertising cost for firing ranges
Defence People Group
Advertising
Havas Worldwide Australia Pty Ltd
12,666,513
ADF recruitment advertising
Market research
Chat House Research Pty Ltd
53,372
Qualitative and quantitative research to maximise ADF recruitment targets
GFK Australia Pty Ltd
218,252
Qualitative and quantitative research to maximise ADF recruitment targets
Hall & Partners Open Mind
493,677
Qualitative and quantitative research to maximise ADF recruitment targets
Taylor Nelson Sofres
68,268
Qualitative and quantitative research to maximise ADF recruitment targets
Whereto Research Based
422,733
Qualitative and quantitative research to maximise ADF recruitment targets
Media advertising
Australian Public Service Commission
210,532
Non-CASG APS Employees—Public Service Gazette
Dentsu Mitchell Media Australia
40,052,336
Planning and placement of campaign advertising
Defence Science and Technology Group
Media advertising
Dentsu X Australia Pty Ltd
25,049
Advertising of information sessions to invite participation in the Next Generation Technologies Fund Grand Challenges

Note: All figures are GST inclusive.

Legal expenses

Expenditure on internal and external legal services in 2017–18 is shown in tables 10.5, 10.6 and 10.7. Internal expenses include salaries for military and civilian staff, divisional operating costs and military justice reimbursements. External expenses are professional fees, disbursements and legal assistance at Commonwealth expense. The figures are GST exclusive.

Table 10.5: Estimated expenditure on internal and external legal services, 2016–17 and 2017–18

Type of legal expenditure
2016–17 $m
2017–18 $m
Internal
46.92
46.57
External
46.59
49.89
Total
93.51
96.46

Table 10.6: Estimated cost breakdown of internal legal expenses, 2016–17 and 2017–18

Items
2016–17 $m
2017–18 $m
Salaries for military lawyers
19.14
18.27
Salaries for civilian staff
14.93
16.41
ADF Reserve legal officers
8.07
7.55
Operating costs of the division
4.43
4.03
Military justice disbursements
0.35
0.31
Total
46.92
46.57

Table 10.7: Estimated cost breakdown of external legal expenses, 2016–17 and 2017–18

Items
2016–17 $m
2017–18 $m
Professional fees—Defence legal panel
43.84
46.54
Disbursements
2.38
3.18
Legal assistance at Commonwealth expense
0.37
0.17
Total
46.59
49.89

Omissions and errors in the Defence Annual Report 2016–17

The Defence Annual Report 2016–17 contained the following errors:

Table 7.4: ADF Permanent Force separations, 2015-16 and 2016-17 (page 85)

Data for 2016–17 does not match the data provided in the Defence Annual Report 2016–17 due to retrospective transactions.

Table 7.18: Permanent ADF salary ranges, as at 30 June 2017 (page 97)

The basis of the salary ranges reported for officers holding the rank of Brigadier (equivalent) and above were different to the salary ranges reported for those at the lower ranks. The data should have stated the maximum salary for a Brigadier (equivalent) was $281,490, the maximum salary for a Major General (equivalent) was $299,920, the maximum salary for a Lieutenant General (equivalent) was $402,130, and the minimum and maximum salary for a General (equivalent) was $570,290. These errors were due to the application of different definitions of salary and the mistaken exclusion of some legal statutory appointments.

Tactical Payment Scheme (page 144)

The value of tactical payments was incorrectly reported due to the miscoding of a $67 payment. The correct value for tactical payments in 2016–17 was $1,963 (reported as $1,896).

Appendix A: Consultancies and contracts (page 226)

The value and number of consultancy contracts were incorrectly reported. The correct values and numbers were as follows:

In 2016–17, Defence entered into 879 new consultancy contracts (652 with a value greater than $10,000) involving total actual in-year expenditure of $45.8 million (GST inclusive). In addition, 873 consultancy contracts remained active, involving total actual in-year expenditure of $198.9 million (GST inclusive).

Payment of accounts

In 2017–18, Defence met 98.8 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 approximately 80 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, 2015–16 to 2017–18

 
2015–16
2016–17
2017–18
Number of accounts paid
2,113,079
2,410,605
2,457,010
Accounts paid by due date
2,101,908
2,386,393
2,426,952
Percentage of accounts paid by due date
99.5
99.0
98.8

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 2017–18, four individual payments totalling $5,778 were made under the scheme. All payments were a consequence of damage to property from motor vehicles.

Feature: ADF frozen blood project

Feature: Sea Power Centre—Australia Visiting Naval Fellows Program