Chapter Two > Outcome Seven: Superannuation and Housing Support Services for Current and Retired Defence Personnel

Outcome Seven: Superannuation and Housing Support Services for Current and Retired Defence Personnel

Output 7.1 - Superannuation and Housing Support Services for Current and Retired Defence Personnel

Outcome Seven covers administered activities that Defence performs on behalf of the Government. This outcome contributed to the provision of superannuation and housing support services to current and retired Defence personnel. Defence also administered reimbursements from the UN for costs associated with East Timor and returned the receipts to the Government. Details on the performance of these administered activities are outlined below.

Performance Summary

Administered Revenue

Revenues administered on behalf of the Government represent dividends from the Defence Housing Authority; non-taxation revenue, which includes contributions for military superannuation; and reimbursement from the UN for costs associated with East Timor. These revenues are returned to the Government once collected. The total revenues administered increased by 5 per cent from the 2003-04 projected result to $855.8m in 2003-04.

Superannuation for Current and Retired Defence Personnel

This includes all superannuation services provided for current and retired Defence personnel under the Defence Force Retirement and Death Benefits Scheme and the Military Superannuation and Benefits Scheme. The total expenses increased by 12 per cent from the 2003-04 projected result to $2,296.5m in 2003-04.

Housing Assistance for Current and Retired Defence Personnel

In 2003-04, Defence and the Defence Housing Authority completed the fourth year of an agreement for the delivery of housing services to ADF members. The agreement can be extended until 2010, subject to the Authority meeting agreed key performance indicators in 2006 and 2008. The overall aim of the Defence Housing Authority is to provide a single point for housing and relocation services to ADF members and their families. This includes housing assistance provided for current and retired Defence personnel under the Defence Home Owner Scheme. This scheme provides a subsidy on the interest payable on a home loan for members of the ADF and is covered by the Defence Force (Home Loans Assistance) Act 1990. The housing subsidies provided to ADF members and their families in 2003-04 was approximately $8.2m.

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Price to Government

Table 2.28 Outcome Seven - Superannuation and Housing Support Services for Current and Retired Defence Personnel
Budget
Estimate		 Revised Additional Estimate(1) Projected Result(2) Actual Result Variation(3) Variation
2003-04
$'000		 2003-04
$'000		 2003-04
$'000		 2003-04
$'000		 2003-04
$'000		 2003-04
%
Administered Expenses
Housing subsidies 5,700 7,400 7,500 8,202 702 9.4
Retention benefits 30,600 21,200 29,400 27,297 -2,103 -7.2
Military superannuation benefits 2,200,000 2,200,000 1,980,000 2,261,210 281,210 14.2
Other expenses 181 - - - - -
Total Administered Expenses 2,236,481 2,228,600 2,016,900 2,296,708 279,808 13.9
Administered Revenues
Foreign Government and the UN reimbursements for East Timor -23,000 -23,000 -23,000 - 23,000 -
Housing dividends -205,400 -204,100 -229,364 -230,698 -1,334 0.6
Military superannuation contributions -607,683 -557,683 -557,683 -607,885 -47,202 8.5
Other revenues - - - -3,929 -3,929 -
Total Administered Revenues -836,083 -784,783 -810,047 -839,512 -29,465 3.6
Price to Government for Outcome Seven 1,400,398 1,443,817 1,206,853 1,457,196 250,343 20.7

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 variation figures are the difference between the Actual Result and the Projected Result.

Explanation of Significant Variation - Expenses

Expenses administered on behalf of the Government increased by $279.8m to $2.3 billion, an increase of 13.9 per cent from the 2003-04 projected result. The major variation is due to an increase of $281m for military superannuation benefits as a result of pay rise effects.

Explanation of Significant Variation - Revenue

Revenue administered on behalf of the Government increased by $29.5m to $839.5m, representing an increase of 3.6 per cent from the 2003-04 projected result. The major variation is due to an increase in superannuation contributions of $47.2m as a result of pay rise effects. In addition, actual UN reimbursements for East Timor totalling $20.2m are part of Outcome One.

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