Defence funding was increased in the 2001-02 Commonwealth Budget and forward estimates to address a number of specific priorities detailed in the 2000 Defence White Paper. The White Paper provided a funding commitment for Defence of around $29.4 billion (b) (in 2007-08 dollars) over the decade from 2001-02. This funding injection equates to an increase of some 3% of average real growth per year over the period.
In the 2007-08 Budget, the Government allocated Defence an additional $14b over ten financial years in new budget measures comprising:
- Supplementation of $1.278b for the conduct of ADF operations including:
- an additional $389.4m over three years for the continued ADF contribution to stabilisation and reconstruction activities in Iraq
- an additional $703m for the continued ADF contribution, including deploying and sustaining the Reconstruction Task Force to Afghanistan; including $32.4m over the next four financial years for costs that will be incurred in 2006-07
- $134.8m over two years for the ADF contribution to assist Timor-Leste in the restoration of stability, security and confidence to their country
- $51.6m over four financial years for the ADF contribution to the surveillance of Australia’s northern approaches.
- Additional logistics sustainment funding to ensure that the ADF continues to be well prepared and able to respond to contingencies, totalling $1.8b.
- 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, totalling approximately $6b over ten years.
- $382.2m for strengthening Defence intelligence and security capabilities to better protect Australia and advance its national interests.
- $135.4m for investment in security measures to protect Defence personal, key assets, facilities and infrastructure at defence bases.
- A $2.1b package of recruitment and retention measures that are designed to increase recruitment intakes and reduce military separation rates.
- $1.3b for the personnel and operating costs of the four C-17 heavy lift aircraft that the Government agreed to acquire in the 2006-07 Budget.
- Additional funding of $953.8m to ensure that Defence Housing Australia meets competitive neutrality at the whole-of-government level.
- A contribution of $20.5m to help establish the Jezzine Barracks Community Trust.
Graph 6.2 reflects the significance of both employee costs and the investment in specialist military equipment and infrastructure in delivering Defence capability. The increased share for investment is consistent with progress towards acquiring the equipment capabilities outlined in the Defence White Paper. Longer-term projections indicate increases in personnel costs due to growth towards a larger ADF as specified in the White Paper.
6.2 Defence resourcing,
6.3 Defence resourcing,
share of GDP(a)