Portfolio Budget Statements 2004-05

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The purpose of the Defence Portfolio Budget Statements is to provide further explanation for Senators and Members of the proposed expenditure for Defence in Appropriation Bills (Nos. 1 and 2) 2004-05.

This document contains the Portfolio Budget Statements for the Defence Housing Authority, which provides housing to meet Defence's requirements.

The document does not address the Department of Veterans' Affairs, which is part of the Defence Portfolio but for which Budget Statements are tabled separately.

The performance information contained in the Defence Portfolio Budget Statements is derived from the Government-endorsed Defence Management and Finance Plan 2004-14. The plan is classified for reasons of national security.

The chapter structure of the Portfolio Budget Statements 2004-05 has changed from the 2003-04 structure to a provide more logical flow of information and to prepare for the Defence Materiel Organisation (DMO) becoming a prescribed agency under the Financial Management and Accountability Act 1997 from 1 July 2005. Financial information for Defence (including DMO) has been grouped together. A separate chapter has been established which includes a budget overview of the DMO for visibility purposes prior to separate financial accountability from Defence in 2005-06.

There have been two changes to the output structure.

• Outcome Four - Air Force Capability now has four outputs, from five in 2003-04. The new Output is Output 4.3 - Capability for Surveillance and Response Operations. This is the result of an amalgamation of the Capability for Strategic Surveillance (previously Output 4.3) and Capability for Maritime Patrol Aircraft (previously Output 4.4).
• Outcome Five - Strategic Policy has two outputs. The second output, Output 5.2, has changed from Military Strategy and Strategic Operations to Military Strategy and Capability Analysis. This is to better reflect the change in responsibilities as a result of the Defence reorganisation.

Introduction. (254 KB) Including the User Guide.

Chapter One - Overview. (255 KB) This chapter contains:

• an overview of the strategic environment;
• Defence White Paper implementation details;
• Defence capability development overview; and
• changes to Defence's structure.

Chapter Two - Resourcing. (354 KB) This chapter details Defence's financial outlook for 2004-05, including:

• a budget summary and measures;
• budgeted financial statements and notes for 2004-05 and forward estimates;
• discretionary grants; and
• purchaser-provider arrangements with the Defence Housing Authority.

Chapter Three - Capital Budget. (139 KB) This chapter focuses on Defence's capital budget. It includes information on:

• projects to be approved in 2004-05;
• an overview of the approved major capital equipment program (details of the program are in Chapter Seven);
• capital facilities projects;
• other capital purchases; and
• capital receipts.

Chapter Four - Planned Outcome Performance. (518 KB) This chapter relates to the delivery of the outcomes required by the Government. Defence has a budget structure which has seven outcomes (including and administered outcome) and twenty-nine outputs. It contains detailed explanations of the outcomes and outputs including:

• a schematic illustration of Defence's outcome structure;
• the estimated cost of each outcome and output; and
• a description of each outcome and output, including planned performance, key risks and strategies and risk mitigation initiatives.

Chapter Five - People. (113 KB) This chapter relates to Defence attracting and leading people and maximising their skills and knowledge in order for it to deliver outcomes sustainably. The information provided in this section includes:

• a personnel overview; and
• a workforce summary.

Chapter Six - Management Reforms and Efficiencies. (113 KB) This chapter relates to the implementation of internal business processes that are designed to ensure sustainable delivery of outcomes. The chapter includes information on:

• the implementation of the Defence Procurement Review;
• progress of budget and business process reform;
• the program of administrative savings;
• the Commercial Support Program;
• delivering internal services;
• the Defence information environment; and
• portfolio evaluations.

Chapter Seven - Defence Materiel Organisation. (137 KB) This new chapter anticipates the DMO becoming a prescribed agency from 1 July 2005. The information in this section includes:

• DMO's strategic priorities and initiatives;
• key elements of the DMO's overall budget - operating, purchases and inventory; and
• details of the performance and estimated expenditure of the top 30 major capital equipment projects.

The 2005-06 budget statements will contain separate financial statements and performance information for the DMO.

Index. (157 KB) A glossary and a list of acronyms and abbreviations used in the document are also provided in the index.

Defence Housing Authority (87 KB) This section contains:

• an overview of the Authority, including performance forecasts for 2004-05;
• details of the Authority's outcome and output, including performance information; and
• a detailed tabular explanation of the 2004-05 budget and forward estimates.

Or download entire document as one file (1.99 MB)

Styles and conventions used

Figures in tables and in the text may be rounded. Discrepancies in tables between totals and sums of components are due to rounding. Negative figures are presented in two ways in this document - by bracketed figures in the financial statements, and by a minus sign elsewhere in the document.

Corrections

The PDF documents have been updated with corrections made in June 2004. A list of the corrections is available in PDF format (11KB).