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User Guide

Purpose of the annual report

This is the annual report from the Secretary of Defence and the Chief of the Defence Force to the Minister for Defence for the financial year ended 30 June 2016. The report addresses the purposes and outcomes of the Department of Defence and the Australian Defence Force—collectively known as Defence.

The report relates to Defence’s performance for the period 1 July 2015 to 30 June 2016. It is the primary mechanism of accountability to the Parliament of Australia and provides readers with a useful and informative picture of the department’s performance during 2015–16.

Defence is committed to maintaining accountability and transparency in its activities and continually improving its reporting.

Report structure

The structure of this report is significantly different to reports from previous years. The Government’s Public Management Reform Agenda seeks to improve the quality of Commonwealth entities’ corporate planning and performance measurement. To support this change, new annual reporting requirements were published by the Department of Finance in July 2016. This report meets those requirements and is published in two volumes for ease of reference.

Volume One: Performance, governance and accountability

Chapters 1 and 2 contain a review of the year by the Secretary and the Chief of the Defence Force, including the highlights and challenges, as well as priorities for the year ahead. These chapters also provide an overview of the portfolio and the department, including its role, functions, purposes, ministers, organisational structure, and outcome and program framework.

Chapters 3 and 4 provide an assessment of Defence’s performance in achieving Government-directed outcomes in the reporting period.

Chapters 5 and 6 detail the department’s corporate governance arrangements and management and accountability processes.

Chapters 7 and 8 include information on workforce and asset management, purchasing and capital investment.

Chapters 9 and 10 discuss Defence’s environmental performance and include other mandatory information such as advertising and market research and other administrative activities.

Appendices provide additional information about consultants and contractors, legal expenses, exempt contracts and where to find information referred to in section 17AJ(d) of the Public Governance, Performance and Accountability Rule 2014 and in Resource Management Guide No. 135—Annual reports for non-corporate Commonwealth entities.

A list of abbreviations and acronyms and an alphabetical index are provided at the end of Volume One.

Volume Two: Audited financial statements

Volume Two contains the audited financial statements for the year ending 30 June 2016.

Non-financial performance measurement

This report is the first to contain annual performance statements—a new requirement under the Public Governance, Performance and Accountability Act 2013. The purpose of the performance statements is to demonstrate what impact Commonwealth entities are making through the achievement of their purposes and the delivery of their outcomes.

Non-financial performance is reported against the measures outlined in the 2015–16 Defence Corporate Plan and the Portfolio Budget Statements and Portfolio Additional Estimates Statements for the same period.

The performance criteria from the Portfolio Budget Statements and Portfolio Additional Estimates Statements for 2015–16 were assessed using the three measures shown below.


Criterion was met or exceeded

Partially achieved

Some aspects of the criterion were met and any issues were being managed

Not achieved

No progress or minimal progress was made

A narrative summary is provided in Chapter 3 (Volume One) for each performance criterion from the 2015-16 Defence Corporate Plan.