Australian Department of Defense, The Coalition Government continues to make substantial investments in Australia's defence capabilities in order to defend our people, interests and values.
In working to this plan, a further $14.0 billion has been allocated over ten years in this year's Budget to build a better equipped, more mobile and operationally ready Defence Force.
The boost to funding comes on top of the $4.1 billion allocated for the enhanced land force initiative, which will establish an extra two Army battalions. An additional $1.0 billion was also allocated to Defence recruitment and retention in December 2006.
This is the seventh budget in a row that the Government has met or exceeded its 2000 Defence White Paper funding commitment.
Since the Coalition Government came to power in 1996, the Defence budget has increased from $10.6 billion in 1995-96 to $22.0 billion in 2007-08, which represents a real increase of about 47% during this time.
This year's budget is $22.0 billion which is an increase of $2.1 billion or 10.6% on 2006-07, and represents 9.3% of Australian Government outlays and 2.0% of GDP.
The Government continues to invest in the Defence Force of today while at the same time building the Defence Force of tomorrow, with the Defence budget planned to grow from $22.0 billion in 2007-08 to $29.9 billion in 2016-17.
The substantial increase in funding will ensure that Defence has a well-equipped and well-trained Defence Force which is able to meet the challenges that lie ahead.
Key investments include the new air combat capability, Air Warfare Destroyers, Amphibious Ships and other priorities included in the Defence Capability Plan.
The additional $14.0 billion allocated over the next ten years will be applied to:
– A package of recruitment and retention measures that are designed to increase recruitment intakes and reduce military separation rates ($2.1 billion).
– The acquisition of 24 F/A-18F Block II Super Hornet multi-role aircraft to ensure that Australia maintains its air combat capability edge during its transition to the F-35 Joint Strike Fighter over the next decade (around $6.6 billion over 13 years).
– Additional logistics sustainment funding to ensure that the Australian Defence Force (ADF) is well prepared and able to respond to contingencies now and in the future, as it has done so exceptionally well in the recent past ($1.8 billion).
– Personnel and operating costs for the C-17 heavy lift aircraft ($1.3 billion).
– A strengthening of Australia 's Defence intelligence and security capabilities to better protect Australia and advance its national interests ($382.2 million).
– An additional $1.3 billion for Defence operations, subject to regular review, comprising:
– $703 million over three financial years to expand Australia's commitment to operations in Afghanistan, including the redeployment of Special Forces and other enabling support elements including a mobile control and reporting unit, and the redeployment of Chinook helicopter support;
– $389 million over three financial years to maintain a deployment of about 1,500 ADF personnel in and around Iraq ;
– $135 million over two financial years to maintain the present ADF force level commitment to East Timor to assist in the restoration of stability and security; and
– $52 million over four financial years for the continued surveillance of Australia 's northern approaches as part of Operation Resolute.
– Investment in security measures to protect Defence personnel, key assets, facilities and infrastructure at Defence bases ($135 million).
– Additional funding to ensure that the Defence Housing Australia meets competitive requirements, with this measure budget neutral at whole-of-Government level ($954 million).
The substantial increase in funding in no way changes the Government's commitment to ongoing improvements in efficiency. Defence continues to meet its savings measures and efficiency dividends while shifting resources from support areas to the frontline.
The recommendations of the recently released Defence Management Review are also being implemented to further improve the efficiency and effectiveness of the organisation.
