As at 30 June 2017, the Defence departmental net cash spend was $31.9 billion. This was an underspend of $30.5 million when compared to the revised estimate in the Defence Portfolio Budget Statements 2017–18.
Table 4.1 contains the Defence resource statement for 2016–17. Expenses by outcomes are detailed in tables 4.2 to 4.6, while the cost of operations is shown in tables 4.7 and 4.8.
Actual available appropriation for 2016–17 $’000 |
Payments made 2016–17 $’000 |
Balance remaining 2016–17 $’000 |
|
ORDINARY ANNUAL SERVICES | |||
Outcome 1 | 30,020,611 |
30,020,529 |
82 |
Outcome 2 | 774,101 |
774,101 |
– |
Outcome 3 | 22,462 |
22,462 |
– |
Total departmental outputs | 30,817,174 |
30,817,092 |
82 |
Total ordinary annual services | 30,817,174 |
30,817,092 |
82 |
OTHER SERVICES | |||
Departmental non-operating | |||
Equity injection | 1,064,704 |
1,064,704 |
– |
Total departmental non-operating | 1,064,704 |
1,064,704 |
– |
Total other services | 1,064,704 |
1,064,704 |
– |
Total available annual appropriation | 31,881,878 |
31,881,796 |
82 |
SPECIAL APPROPRIATIONS | |||
Special appropriations limited by criteria/entitlement | |||
Defence Force Retirement Benefits Act 1948, Part 1, s. 15D and VIC, s. 82ZJ | 14,122 |
14,100 |
22 |
Defence Force Retirement and Death Benefits Act 1973, Part XII, s. 125 | 1,504,600 |
1,498,604 |
5,996 |
Military Superannuation and Benefits Act 1991, Part V, s. 17 | 6,091,696 |
6,335,668 |
(243,972) |
Defence Force (Home Loan Assistance) Act 1990, Part IV, s. 38 | 618 |
587 |
31 |
Australian Defence Force Cover Act 2015 | 110,070 |
21,500 |
88,570 |
Defence Home Ownership Assistance Scheme Act 2008, Part VI, s. 84 | 104,867 |
97,816 |
7,051 |
Other administered | – |
338 |
(338) |
Total special appropriations | 7,825,973 |
7,968,613 |
(142,640) |
Total appropriations | 39,707,851 |
39,850,409 |
(142,558) |
Funding from other sources | 2,158,128 |
2,454,100 |
(295,972) |
Returns to the Official Public Account (net) | (1,560,915) |
(1,720,246) |
159,331 |
Previous years’ outputs (appropriation receivable) | 687,345 |
425,991 |
261,354 |
Cash available | 47,597 |
88,823 |
(41,226) |
Total other available resources | 1,332,155 |
1,248,668 |
83,487 |
Total resourcing | 41,040,006 |
41,099,077 |
(59,071) |
Special accounts | |||
Opening balance | 72,661 |
72,661 |
– |
Appropriation receipts | – |
– |
– |
Appropriation receipts—other agencies | – |
– |
– |
Non-appropriation receipts to special accounts | 27,924 |
53,840 |
(25,916) |
Total special accounts | 100,585 |
126,501 |
(25,916) |
2016–17 budget estimate 1 $’000 |
2016–17 revised estimate 2 $’000 |
2016–17 actual result $’000 |
Variation $’000 |
Variation % |
|
Outcome 1: The protection and advancement of Australia’s national interests through the provision of military capabilities and the promotion of security and stability | |||||
Departmental net cost of service | 29,256,090 |
30,019,342 |
29,872,915 |
(146,427) |
– |
Administered net cost of service | 3,861,024 |
6,288,467 |
6,375,559 |
87,092 |
1 |
Net cost of service for Outcome 1 | 33,117,114 |
36,307,809 |
36,248,474 |
(59,336) |
– |
Outcome 2: The advancement of Australia’s strategic interests through the conduct of military operations and other tasks as directed by Government | |||||
Net cost of service for Outcome 2 | 737,973 |
774,135 |
796,575 |
22,440 |
3 |
Outcome 3: Support for the Australian community and civilian authorities as requested by Government | |||||
Net cost of service for Outcome 3 | 22,462 |
22,462 |
30,922 |
8,460 |
38 |
Net cost of service for Defence outcomes | |||||
Departmental net cost of service | 30,016,525 |
30,815,939 |
30,700,412 |
(115,527) |
– |
Administered net cost of service | 3,861,024 |
6,288,467 |
6,375,559 |
87,092 |
1 |
Total cost of Defence outcomes | 33,877,549 |
37,104,406 |
37,075,971 |
(28,435) |
– |
Notes:
Outcome 1 $’000 |
Outcome 2 $’000 |
Outcome 3 $’000 |
Total $’000 |
|
Departmental | ||||
Expenses | ||||
Employees | 11,277,742 |
105,188 |
10,391 |
11,393,321 |
Suppliers | 12,725,745 |
606,003 |
20,531 |
13,352,279 |
Grants | 27,775 |
105,876 |
– |
133,651 |
Depreciation and amortisation | 5,462,402 |
– |
– |
5,462,402 |
Finance cost | 124,430 |
– |
– |
124,430 |
Write-down of assets and impairment of assets | 909,831 |
– |
– |
909,831 |
Net foreign exchange losses | 7,826 |
– |
– |
7,826 |
Net losses from sale of assets | 15,007 |
– |
– |
15,007 |
Other expenses | 163,185 |
2 |
– |
163,187 |
Total expenses | 30,713,943 |
817,069 |
30,922 |
31,561,934 |
Income | ||||
Revenue | ||||
Goods and services | 436,359 |
20,494 |
– |
456,853 |
Rental income | 6,414 |
– |
– |
6,414 |
Other revenue | 36,954 |
– |
– |
36,954 |
Total revenue | 479,727 |
20,494 |
– |
500,221 |
Gains | ||||
Reversals of previous asset write-downs | 214,703 |
– |
– |
214,703 |
Other gains | 146,598 |
– |
– |
146,598 |
Total gains | 361,301 |
– |
– |
361,301 |
Total income | 841,028
|
20,494
|
–
|
861,522
|
Net cost of departmental outcomes | 29,872,915 |
796,575 |
30,922 |
30,700,412 |
Administered | ||||
Expenses | 7,968,613 |
– |
– |
7,968,613 |
Revenue | 1,593,054 |
– |
– |
1,593,054 |
Net cost of administered outcomes | 6,375,559 |
– |
– |
6,375,559 |
Total departmental and administered outcomes | 36,248,474 |
796,575 |
30,922 |
37,075,971 |
2016–17 budget estimate 1 $’000 |
2016–17 revised estimate 2 $’000 |
2016–17 actual result 3 $’000 |
Variation $’000 |
Variation % |
|
Program 1.1 – Strategic Policy and Intelligence | |||||
Revenues from other sources | 2,095 |
6,758 |
4,164 |
(2,594) |
(38) |
Departmental outputs | 866,778 |
909,177 |
973,489 |
64,312 |
7 |
Program 1.2 – Navy Capabilities | |||||
Revenues from other sources | 86,984 |
69,396 |
17,167 |
(52,229) |
(75) |
Departmental outputs | 5,917,270 |
6,144,236 |
6,016,328 |
(127,908) |
(2) |
Program 1.3 – Army Capabilities | |||||
Revenues from other sources | 45,773 |
35,712 |
34,395 |
(1,317) |
(4) |
Departmental outputs | 7,329,033 |
7,876,185 |
6,997,631 |
(878,554) |
(11) |
Program 1.4 – Air Force Capabilities | |||||
Revenues from other sources | 79,271 |
62,060 |
68,856 |
6,796 |
11 |
Departmental outputs | 5,829,941 |
6,270,942 |
5,962,665 |
(308,277) |
(5) |
Program 1.5 – Joint Operations Command | |||||
Revenues from other sources | – |
– |
249 |
249 |
– |
Departmental outputs | 48,775 |
44,640 |
50,042 |
5,402 |
12 |
Program 1.6 – Vice Chief of the Defence Force | |||||
Revenues from other sources | 216,540 |
218,584 |
166,241 |
(52,343) |
(24) |
Departmental outputs | 1,466,071 |
1,344,496 |
2,057,112 |
712,616 |
53 |
Program 1.7 – Capability Acquisition and Sustainment | |||||
Revenues from other sources | 2,596 |
2,596 |
322 |
(2,274) |
(88) |
Departmental outputs | 692,055 |
614,095 |
541,452 |
(72,643) |
(12) |
Program 1.8 – Defence Executive Support | |||||
Revenues from other sources | 9,912 |
10,837 |
22,845 |
12,008 |
111 |
Departmental outputs | 194,155 |
204,608 |
255,910 |
51,302 |
25 |
Program 1.9 – Estate and Infrastructure | |||||
Revenues from other sources | 345,225 |
338,855 |
469,044 |
130,189 |
38 |
Departmental outputs | 4,145,448 |
4,148,791 |
4,221,148 |
72,357 |
2 |
Program 1.10 – Chief Information Officer | |||||
Revenues from other sources | 72 |
4,546 |
15,717 |
11,171 |
246 |
Departmental outputs | 1,632,688 |
1,246,811 |
1,714,596 |
467,785 |
38 |
Program 1.11 – Defence People | |||||
Revenues from other sources | – |
– |
80 |
80 |
– |
Departmental outputs | 510,647 |
481,197 |
515,343 |
34,146 |
7 |
Program 1.12 – Defence Science and Technology | |||||
Revenues from other sources | 3,631 |
4,607 |
6,555 |
1,948 |
42 |
Departmental outputs | 438,140 |
447,468 |
470,718 |
23,250 |
5 |
Program 1.13 – Chief Finance Officer | |||||
Revenues from other sources | 4,818 |
4,933 |
35,393 |
30,460 |
617 |
Departmental outputs | 185,089 |
286,696 |
96,481 |
(190,215) |
(66) |
Program 1.14 – Defence Force Superannuation Benefits | |||||
Defence Forces Retirement Benefits Act 1948, Part 1, s. 15D and VIC, s. 82ZJ(1) | – |
– |
– |
– |
– |
Defence Force Retirement and Death Benefits Act 1973, Part XII, s. 125(3) | 88,954 |
177,952 |
172,604 |
(5,348) |
(3) |
Military Superannuation and Benefits Act 1991, Part V, s. 17 | 1,472,240 |
4,038,303 |
4,281,668 |
243,365 |
6 |
Australian Defence Force Cover Act 2015 | – |
108,614 |
21,200 |
(87,414) |
(80) |
Total administered expenses | 1,561,194 |
4,324,869 |
4,475,472 |
150,603 |
3 |
Administered revenue from other sources | 1,358,948 |
1,416,269 |
1,462,077 |
45,808 |
3 |
Total Program 1.14 | 202,246 |
2,908,600 |
3,013,395 |
104,795 |
4 |
Program 1.15 – Defence Force Superannuation Nominal Interest | |||||
Defence Forces Retirement Benefits Act 1948, Part 1, s. 15D and VIC, s. 82ZJ(1) | 23,601 |
14,122 |
14,100 |
(22) |
– |
Defence Force Retirement and Death Benefits Act 1973, Part XII, s. 125(3) | 1,745,927 |
1,326,648 |
1,326,000 |
(648) |
– |
Military Superannuation and Benefits Act 1991, Part V, s. 17 | 1,899,314 |
2,053,393 |
2,054,000 |
607 |
– |
Australian Defence Force Cover Act 2015 | – |
1,456 |
300 |
(1,156) |
(79) |
Total administered expenses | 3,668,842 |
3,395,619 |
3,394,400 |
(1,219) |
– |
Administered revenue from other sources | – |
– |
– |
– |
– |
Total Program 1.15 | 3,668,842 |
3,395,619 |
3,394,400 |
(1,219) |
– |
Program 1.16 – Housing Assistance | |||||
Defence Force (Home Loans Assistance) Act 1990, Part IV, s. 38 | 775 |
618 |
587 |
(31) |
(5) |
Defence Home Ownership Assistance Scheme Act 2008, Part VI, s. 84 | 110,852 |
104,867 |
97,816 |
(7,051) |
(7) |
Total administered expenses | 111,627 |
105,485 |
98,403 |
(7,082) |
(7) |
Administered revenue from other sources | 15,644 |
15,178 |
16,871 |
1,693 |
11 |
Total Program 1.1616-17 | 95,983 |
90,307 |
81,532 |
(8,775) |
(10) |
Program 1.17 – Other Administered16-17 | |||||
Expenses16-17 | – |
– |
338 |
338 |
– |
Administered revenue from other sources16-17 | 106,047 |
106,059 |
114,106 |
8,047 |
8 |
Total Program 1.1716-17 | (106,047) |
(106,059) |
(113,768) |
(7,709) |
7 |
Total resourcing16-17 | |||||
Total departmental outputs16-17 | 29,256,090 |
30,019,342 |
29,872,915 |
(146,427) |
– |
Total administered | 3,861,024 |
6,288,467 |
6,375,559 |
87,092 |
1 |
Total departmental revenue from other sources16-17 | 796,917 |
758,884 |
841,028 |
82,144 |
11 |
Total administered revenue from other sources16-17 | 1,480,639 |
1,537,506 |
1,593,054 |
55,548 |
4 |
Equity injection | 2,321,327 |
1,064,704 |
1,064,704 |
– |
– |
Total resources for Outcome 1 | 37,715,997 |
39,668,903 |
39,747,260 |
78,357 |
– |
Notes:
2016–17 budget estimate 1 $’000 |
2016–17 revised estimate 2 $’000 |
2016–17 actual result $’000 |
Variation $’000 |
Variation % |
|
Program 2.1 – Operations Contributing to the Security of the Immediate Neighbourhood | |||||
Revenues from other sources | – | – | 26 | 26 | – |
Departmental outputs | 1,023 | 1,050 | 3,904 | 2,854 | 272 |
Program 2.2 – Operations Supporting Wider Interests | |||||
Revenues from other sources | 15,589 | 15,644 | 20,468 | 4,824 | 31 |
Departmental outputs | 736,950 | 773,085 | 792,671 | 19,586 | 3 |
Total resourcing | |||||
Total departmental outputs | 737,973 | 774,135 | 796,575 | 22,440 | 3 |
Total departmental revenue from other sources | 15,589 | 15,644 | 20,494 | 4,850 | 31 |
Total resources for Outcome 2 | 753,562 | 789,779 | 817,069 | 27,290 | 3 |
Note: This table excludes capital payments for outcomes.
2016–17 budget estimate 1 $’000 |
2016–17 revised estimate 2 $’000 |
2016–17 actual result $’000 |
Variation $’000 |
Variation % |
|
Program 3.1 – Defence Contribution to National Support Tasks in Australia | |||||
Revenues from other sources | – |
– |
– |
– |
– |
Departmental outputs | 22,462 |
22,462 |
30,922 |
8,460 |
38 |
Total resourcing | |||||
Total departmental outputs | 22,462 |
22,462 |
30,922 |
8,460 |
38 |
Total departmental revenue from other sources | – |
– |
– |
– |
– |
Total resources for Outcome 3 | 22,462 |
22,462 |
30,922 |
8,460 |
38 |
Note: This table excludes capital payments for outcomes.
1999–2000 to 2015–16 |
2016–17 |
2017–18 |
2018–19 |
2019–20 |
2020–21 |
Total |
|
Operation Slipper | 7,202.6 |
109.4 |
– |
– |
– |
– |
7,312.0 |
Operation Manitou1 | 73.0 |
44.9 |
54.2 |
10.0 |
.. |
– |
182.1 |
Operation Accordion | 289.9 |
173.3 |
222.2 |
27.7 |
23.1 |
– |
736.2 |
Operation Highroad | 243.7 |
113.6 |
83.5 |
2.7 |
1.8 |
– |
445.3 |
Operation Resolute2,3 | 251.1 |
30.6 |
55.6 |
.. |
– |
– |
337.3 |
Operation Okra | 446.0 |
368.4 |
453.6 |
64.2 |
29.8 |
– |
1,362.0 |
Defence Support to the 2018 Commonwealth Games4 | – |
.. |
33.9 |
0.3 |
– |
– |
34.2 |
Total net additional costs | 8,506.3 |
840.2 |
903.1 |
105.0 |
54.7 |
– |
10,409.3 |
Sources of funding for operations | |||||||
Government supplementation | 8,506.3 |
840.2 |
903.1 |
105.0 |
54.7 |
– |
10,409.3 |
Total cost | 8,506.3 |
840.2 |
903.1 |
105.0 |
54.7 |
– |
10,409.3 |
Notes: This table reflects ongoing and new operations funded under ‘no win, no loss’ arrangements. Double period (..) indicates ‘not zero, but rounded to zero’.
2016–17 budget estimate 1 $m |
2016–17 estimated actual 2 $m |
2016–17 actual result $m |
Variation $m |
|
Operation Slipper | 103.9 |
103.9 |
109.4 |
5.5 |
Operation Manitou | 40.2 |
40.2 |
44.9 |
4.7 |
Operation Accordion | 179.4 |
179.4 |
173.3 |
(6.1) |
Operation Highroad | 59.0 |
95.0 |
113.6 |
18.6 |
Operation Resolute 3 | 22.5 |
22.5 |
30.6 |
8.1 |
Operation Okra | 353.0 |
353.0 |
368.4 |
15.4 |
Defence Support to the 2018 Commonwealth Games 4 | – |
– |
.. |
.. |
Total net additional costs | 757.9 |
794.0 |
840.2 |
46.2 |
Note: This table reflects ongoing and new operations funded under ‘no win, no loss’ arrangements. Double period (..) indicates ‘not zero, but rounded to zero’.