Annual Report 2004-05

Purchaser-Provider Arrangements

Sections:

• Defence Housing Authority |
• ComSuper |
• Comcare |
• Department of Foreign Affairs and Trade |

Defence Housing Authority

Defence and the Defence Housing Authority have two formal agreements: the Services Agreement for Housing and Related Requirements (the Services Agreement) and the Relocation Services Agreement. The agreements formalise the relationship between Defence (as purchaser) and the Defence Housing Authority (as provider) of housing and related services.

The Services Agreement extends to 2010 and provides for a major review of its terms after five years of operation. The review commenced in February 2005, and Defence and the Defence Housing Authority have agreed to amend the Agreement to develop a commercial agreement to establish more business-like and transparent arrangements.

The Relocation Services Agreement allows for performance reviews to be conducted in 2006, 2008 and 2010.

The cost of Defence Housing Authority services for housing and relocation services and the Defence Home Loans Scheme for ADF members in 2004-05 was $443.9m. This includes $83.36m to pay the outstanding annuity liability for 1,078 Defence-owned service residences located on Defence bases.

Defence Housing Authority has continued to provide community-standard housing and tenancy management in accordance with Defence capability requirements and satisfactory relocation services to ADF personnel. In June 2003, the Australian National Audit Office tabled its report Defence Housing and Relocation Services (Audit Report No. 51)⁵ and recommended several significant changes to existing arrangements to establish more commercial arrangements between Defence and the Defence Housing Authority and improve contract management arrangements. A report on Defence's implementation of the Australian National Audit Office recommendations was provided to the Joint Standing Committee on Public Accounts and Audit during 2004-05. Most of the recommendations have been implemented, although three recommendations remain to be considered by the Government.

5. More information on the Defence Housing and Relocation Services (Audit Report No. 51) can be viewed at http://www.anao.gov.au/WebSite.nsf/Publications/ . [ back ]