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Chapter 1

OVERVIEW

A review by our Chief Executives of our performance during 2005–06, the corporate governance and accountability structures defining the way that we do business, details of our financial performance, and achievements from key support areas.

Financial Overview

Defence Resourcing

Defence is required to present three financial statements prepared according to AIFRS (Income Statement, Balance Sheet and Cash Flow Statement). Separately, a Defence resourcing presentation (see Table 1.2 below) is used to show the total funds available to Defence in 2005–06. The total Departmental funding element of this presentation (serial 7) is the most common way of measuring Defence's budget.

At the time of the publication of the Portfolio Additional Estimates 2005–06, the projected level of resourcing available to Defence in 2005–06 was $20,354m, comprising total departmental funding of $17,752m and a further $2,602m for the administered appropriation. The total departmental funding allocation of $17,752m (serial 7) comprised funding from the Government for outcomes of $16,134m, an equity injection of $972m, own-source revenue of $622m and net capital receipts of $25m.

Table 1.2 Total Defence Resourcing 2005–06
Serial No
2004–05 Actual Result(1)
   2005–06 Budget Estimate 2005–06 Additional Estimate Actual Result Variation
$'000
   $'000 $'000 $'000 $'000
  Departmental
1
15,742,599
 Revenue from Government for Price of Outcomes 15,977,721 16,133,541 16,064,341 -69,200
2
393,286
 Equity Injection(2) 1,121,148 972,080 1,159,680 187,600
3
16,135,885
Total Revenue from Government (1+2) 17,098,869 17,105,621 17,224,021 118,400
4
458,273
 Own-Source Revenue(3) 371,341 621,752 635,393 13,641
5
105,697
 Net Capital Receipts 24,863 24,863 61,358 36,495
6
563,970
Subtotal 396,204 646,615 696,751 50,136
7
16,699,855
Total Departmental Funding (3+6) 17,495,073 17,752,236 17,920,772 168,536
  Administered
8
2,819,603
 Administered Appropriation(4) 2,539,350 2,602,100 2,754,208 152,108
9
19,519,458
Total Defence Resourcing (7+8) 20,034,423 20,354,336 20,674,980 320,644

Notes:

  1. 2004–05 figures have been amended since publication in the Defence Annual Report 2004–05 to allow comparison with the AIFRS compliant 2005–06 figures.
  2. Includes $187.6m drawn in 2005–06 from equity injection received in previous years which was carried forward in Defence's appropriation receivable.
  3. Own-source Revenue (serial 4) includes sales of goods and services ($547.7m) and other revenue ($87.7m). This excludes revenue from 'assets now recognised' and 'other gains'.
  4. The Administered Appropriation (serial 8) covers costs associated with the military superannuation schemes, and also covers the provision of housing subsidies to current and retired Defence personnel. The administered appropriation is managed by the Department of Finance and Administration on Defence's behalf. More details on the administered appropriation are provided at p. 61 and Table 1.17.

The actual result for 2005–06 was $320.6m higher than the additional estimate including a variation of $168.5m in departmental funding and an increase of $152.1m in administered appropriation. Table 1.2 summarises the total Defence resourcing in 2005–06 compared to the additional estimate.

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