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Thursday, 16 August 2012
Page: 5705

Defence Budget

(Question No. 1932)


Senator Johnston asked the Minister representing the Minister for Defence, upon notice, on 27 June 2012:

For the 2012-13 and 2013-14 financial years, detailed separately, what is the estimated amount that will be paid by the department in relation to the Carbon Tax.


Senator Bob Carr: The Minister for Defence has provided the following answer to the honourable senator's question:

From a financial perspective and using the Department of Treasury Modelling a Carbon Price, Defence has forecast the impact on its cost base by using the following method:

Total Defence Operating Funding of $24.8b (PBS 2012-13, Page 99, Table 60)

Less Employees of $9.8b (PBS 2013, Page 99, Table 60)

Less Budget spent overseas of $3.5b (FOREX volume in AUD used for PBS 2012-13)

Times 0.7% (As per Treasury Model)

Equals Carbon Price effect of $80.4m

Using the above methodology, the estimated effect of a carbon price on the cash budget in 2012-13 is in the order of $80.4m. This represents 0.32% of the Defence total budget.

Using the above methodology, the estimated effect of a carbon price on the forward estimate cash budget in 2013-14 is in the order of $77.7m or 0.31% of the Defence forward estimate.