Annual Report 2003-04

Defence Capability Plan (-$9.6m)

The Defence Capability Plan is a detailed, costed plan for Australia's military capabilities over a ten-year period, with broad guidance on major investments over the following ten years. The plan is reviewed regularly to take account of changing strategic circumstances, new technologies and changed priorities. This plan was reviewed, and a revised Defence Capability Plan was announced in February 2004. The plan sets out the planned investment in new equipment under five capabilities goals - land forces, air combat, maritime forces, strike and information capability.

Between the period when the Defence White Paper 2000 was announced in December 2000 and 30 June 2004, the Government had approved around 120 major projects or phases of projects with an approximate cost of $18.4 billion. The Government will be presented with further projects for approval in 2004-05.

An amount of $9.6m remained unexpensed in 2003-04 due to timing issues associated with the approval of some projects. This funding was used to contribute to higher than forecast expenses in the approved major capital equipment program.