Chapter Two > Overview of the Defence Outcomes and Outputs

Defence Outcomes and Outputs

In 2003-04, Defence moved to a new outcome and output structure, as required by the Government. This involved moving from one to seven outcomes and from six to thirty outputs. Defence outcomes are the results that the Government seeks from Defence, and are achieved by the successful delivery of outputs, to the standards set in the Portfolio Budget Statements 2003-04 (released in May 2003) and, where applicable, as revised in the Portfolio Additional Estimates Statements 2003-04 (released in February 2004).

The Defence Annual Report 2003-04 reports our achievement against these targets, as well as the projected results contained in the Portfolio Budget Statements 2004-05 (released in May 2004).

Table 2.1 provides details on the cost of Defence's capability-based outcomes and outputs in 2003-04, showing the budget estimate, revised estimate, projected result and actual result.

Table 2.1 Cost of Defence Outputs in 2003-04
  Budget
Estimate		 Revised
Additional
Estimate (1)		 Projected
Result(2)		 Actual
Result(3)
Outcome /Output
2003-04
$m		 2003-04
$m		 2003-04
$m		 2003-04
$m
1. Command of Operations in Defence of Australia and its Interests
1.1 Command of Operations 409 412 375 479
1.2 Defence Force Military Operations and Exercises 418 295 426 240
1.3 Contribution to National Support Tasks 18 9 9 21
Sub-Total Outcome 1 845 716 810 740
2. Navy Capability for the Defence of Australia and its Interests
2.1 Capability for Major Surface Combatant Operations 1,487 1,281 1,363 1,368
2.2 Capability for Naval Aviation Operations 472 470 486 520
2.3 Capability for Patrol Boat Operations 261 272 275 265
2.4 Capability for Submarine Operations 774 836 878 845
2.5 Capability for Afloat Support 215 195 218 197
2.6 Capability for Mine Warfare 334 377 391 386
2.7 Capability for Amphibious Lift 366 363 366 372
2.8 Capability for Hydrographic and Oceanographic Operations 178 216 233 225
Sub-Total Outcome 2 4,088 4,011 4,211 4,177
3. Army Capability for the Defence of Australia and its Interests
3.1 Capability for Special Forces Operations 445 411 335 423
3.2 Capability for Mechanised Operations 801 845 866 847
3.3 Capability for Light Infantry Operations 1,020 998 1,035 900
3.4 Capability for Army Aviation Operations 450 528 593 593
3.5 Capability for Ground-Based Air Defence 93 123 176 123
3.6 Capability for Combat Support Operations 408 422 496 411
3.7 Capability for Regional Surveillance 87 94 150 128
3.8 Capability for Operational Logistic Support to Land Forces 433 535 522 534
3.9 Capability for Motorised Infantry Operations 574 482 577 497
3.10 Capability for Protective Operations 535 467 530 632
Sub-Total Outcome 3 4,845 4,905 5,280 5,086
4. Air Force Capability for the Defence of Australia and its Interests
4.1 Capability for Air Combat Operations 1,780 1,744 1,889 1,804
4.2 Capability for Combat Support of Air Operations 424 592 571 632
4.3 Capability for Strategic Surveillance 369 475 1,052 592
4.4 Capability for Maritime Patrol Aircraft 535 560 933 641
4.5 Capability for Airlift 896 838 - 831
Sub-Total Outcome 4 4,004 4,208 4,445 4,501
5. Strategic Policy for the Defence of Australia and its Interests
5.1 Capability for Strategic and International Policy, Activities and Engagement 170 173 173 176
5.2 Capability for Military Strategy and Strategic Operations 43 30 47 30
Sub-Total Outcome 5 213 203 220 206
6. Intelligence for the Defence of Australia and its Interests
6.1 Intelligence 403 409 413 457
Sub-Total Outcome 6 403 409 413 457
Total Cost of Defence Outputs(4) 14,398 14,452 15,379 15,168

 

Notes

  1. The Revised Additional Estimate figures have been adjusted since the Portfolio Additional Estimates Statements 2003-04 to reflect an improved costing methodology.
    2. The Projected Result is consistent with the Portfolio Budget Statements 2004-05.
    3. The total cost of Defence outputs, shown in this table ($15,168m), relates to Departmental expenses and revenues. The actual total cost of Defence outputs does not include $1,457m of net administered expenses and revenues.
    4. Figures do not add due to rounding. The figures cross-reference to the bottom line figures contained in Table 2.2.

The seventh outcome, Superannuation and Housing Support Services for Current and Retired Defence Personnel, covers activities not directly connected to the delivery of the capability outcomes and outputs. Outcome Seven is described on pp 187-88.

Defence continues to refine its cost attribution rules in order to improve the accuracy of its output costs. There are a number of variables that can influence output costs, including changes to preparedness levels and activity rates, operations, and redirecting funds to meet changing priorities and emergent cost pressures. Changes in the distribution of the workforce and technical adjustments aimed at improving the accounting for Defence's assets and liabilities can have a major impact.

Many of the variations evident between the projected and actual result in 2003-04 reflect accounting adjustments and refinements to attribution rules. There have been few changes to preparedness and activity levels from that which were planned, and few significant real variations between the projected and actual result.

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