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Department of Defence—Report for 2018-19


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A N N U A L

R E P O R T

18-19

ii DEFENCE ANNUAL REPORT 2018-19

Defence at a glance

Mission The Defence mission is to defend Australia and its national interests.

Role Defence’s primary role is to protect and advance Australia’s strategic interests through the promotion of security and stability, the provision of military capabilities to defend Australia and its national interests, and the provision of support to the Australian community and civilian authorities as directed by Government.

Purposes The 2018-19 Defence Corporate Plan purposes outline two core outcomes for Defence to deliver for the Government and the Australian community:

1. Defend Australia and its national interests 2. Protect and advance Australia’s strategic interests.

Defence’s performance in achieving its purposes during the 2018-19 reporting period is described in Chapter 3—‘Annual performance statements’.

Strategy Through the 2016 Defence White Paper, the Government has identified Australia’s strategic defence interests as:

• a secure, resilient Australia with secure northern approaches and proximate sea lines of communication

• a secure nearer region, encompassing maritime South-East Asia and the South Pacific (comprising Papua New Guinea, Timor-Leste and Pacific Island countries)

• a stable Indo-Pacific region and rules-based global order.

Portfolio structure As at 30 June 2019, the Defence portfolio consisted of:

• the Department of Defence (including the ADF)

• the Australian Signals Directorate

• trusts and companies

• statutory offices created by the Defence Force Discipline Act 1982 and the Defence Act 1903

• the Department of Veterans’ Affairs and its associated bodies.

Responsible ministers As at 30 June 2019, the Defence portfolio has four ministers:

• Senator the Hon Linda Reynolds, CSC, Minister for Defence

• the Hon Alex Hawke MP, Assistant Defence Minister

• the Hon Darren Chester MP, Minister for Veterans and Defence Personnel

• the Hon Melissa Price MP, Minister for Defence Industry.

Values Our employees conduct their duties in accordance with the Australian Public Service (APS) Code of Conduct, the APS Values, and the Defence and Service-specific values. The purpose of the Defence Force Discipline Act 1982 is to maintain and enforce military discipline necessary for Australian Defence Force (ADF) capability.

These APS and ADF values and rules are the foundation for our work and govern the way we relate to our stakeholders and to each other. Without diminishing the ADF and APS values, specific Defence values have been established to provide a common and unifying thread for all people working in Defence. These values are:

• Professionalism—striving for excellence in everything we do

• Loyalty—commitment to each other and Defence

• Integrity—doing what is right

• Courage—the strength of character to honour our convictions (moral courage) and bravery in the face of personal harm (physical courage)

• Innovation—actively looking for better ways of doing our business

• Teamwork—working together with respect, trust and a sense of collective purpose.

Funding As at 30 June 2019, the Defence departmental net cash spend was $36.4 billion. More information about Defence funding can be found in Chapter 4—‘Financial summary’.

iii DEFENCE AT A GLANCE

DEFENCE BASE LOCATIONS

Our people As at 30 June 2019, the ADF actual strength was 58,554 members and the APS actual full-time equivalent workforce was 15,996. More information can be found in Chapter 6—‘Strategic workforce management’.

Where we work Defence has the most extensive land and property holdings in Australia, including large training areas and bases close to the coastline. Defence also operates a number of operational bases around the globe.

PERTH

DARWIN

CAIRNS

TOWNSVILLE

BRISBANE

SYDNEY

CANBERRA

HOBART

MELBOURNE

ADELAIDE

RAAF Woomera

RAAF Learmonth

RAAF Curtin

RAAF Tindal

RAAF Scherger

Anglesea Barracks

RAAF Williamtown

HMAS Creswell HMAS Albatross

Lone Pine Barracks (Singleton Military Area)

Puckapunyal

RAAF East Sale

RAAF Amberley

Army Aviation Centre Oakey Borneo Barracks

HMAS Cairns

Campbell Barracks Irwin Barracks Leeuwin Barracks RAAF Pearce HMAS Stirling

RAAF Darwin

Larrakeyah Defence Precinct

(Larrakeyah Barracks & HMAS Coonawarra) Robertson Barracks Defence Establishment Berrimah

Edinburgh Defence Precinct Keswick Barracks Woodside Barracks

HMAS Cerberus RAAF Williams Simpson Barracks Victoria Barracks DST Fishermans Bend

Blamey Barracks RAAF Wagga

Albury Wodonga Military Area

RAAF Townsville Lavarack Barracks

Victoria Barracks HMAS Moreton Gallipoli Barracks

Garden Island Defence Precinct (inc HMAS Kuttabul) HMAS Penguin HMAS Waterhen HMAS Watson Liverpool Military Area Randwick Barracks Victoria Barracks Defence Establishment Orchard Hills RAAF Richmond RAAF Glenbrook

Defence Headquarters Russell Offices HQJOC HMAS Harman Royal Military College Duntroon / Australian Defence Force Academy Australian Defence College

Kokoda Barracks

About this report This is the Secretary of Defence and the Chief of the Defence Force’s performance report to the Minister for Defence, the Parliament of Australia and the Australian public for the 2018-19 financial year. The report addresses the purposes and outcomes of the Department of Defence and the Australian Defence Force—collectively known as Defence.

The report was prepared in accordance with parliamentary reporting and legislative requirements. The requirements table in Appendix E (pages 261-263) identifies for the reader where required information may be found.

Online content An electronic version of this report and supplementary performance information may be accessed at www.defence.gov.au/annualreports. Appendix D of this report (page 260) lists the supplementary information that is available on the Defence website.

The Defence Annual Report 2018-19 is also published on www.transparency.gov.au.

iv DEFENCE ANNUAL REPORT 2018-19

Senator the Hon Linda Reynolds, CSC Minister for Defence Parliament House Canberra ACT 2600

Dear Minister,

We present the Defence Annual Report 2018-19 for the year ended 30 June 2019. The report has been prepared for the purposes of section 46 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). Subsection 46(1) of the PGPA Act requires that an annual report be provided to the responsible Minister for presentation to the Parliament.

The report reflects the mandatory requirements as prescribed by the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule). It includes Defence’s audited financial statements, as required by subsection 43(4) of the PGPA Act, and Defence’s annual performance statements, as required by section 39 of the PGPA Act.

Consistent with the requirements set out in Section 10 of the Public Governance, Performance and Accountability Rule 2014, we certify that Defence has conducted Whole of Defence fraud risk assessments as part of the biennial Defence fraud and corruption control planning cycle. We also certify that Defence has in place reasonable and appropriate measures, mechanisms and programs to prevent, detect, investigate, record and confidentially report suspected fraud and corruption.

Yours sincerely,

Greg Moriarty Angus Campbell, AO, DSC

Secretary General

25 September 2019 Chief of the Defence Force

25 September 2019

cc the Hon Alex Hawke MP, the Hon Darren Chester MP, the Hon Melissa Price MP

v CONTENTS

Contents Defence at a glance ii

About this report iii

Letter of transmittal iv

CHAPTER 1 REVIEWS BY THE SECRETARY AND THE CHIEF OF THE DEFENCE FORCE 1

Secretary’s review 2

Chief of the Defence Force’s review 5

CHAPTER 2 DEPARTMENTAL OVERVIEW 9

CHAPTER 3 ANNUAL PERFORMANCE STATEMENTS 17

CHAPTER 4 FINANCIAL SUMMARY 53

CHAPTER 5 GOVERNANCE AND EXTERNAL SCRUTINY 67

CHAPTER 6 STRATEGIC WORKFORCE MANAGEMENT 81

CHAPTER 7 ASSET MANAGEMENT 125

CHAPTER 8 ENVIRONMENTAL PERFORMANCE 133

APPENDICES 141

Appendix A: Financial statements 142

Appendix B: Additional workforce tables 229

Appendix C: Other mandatory information 257

Appendix D: Supplementary online material 260

Appendix E: List of requirements 261

Abbreviations and acronyms 265

List of figures and tables 266

Index 269

Contacts and acknowledgments 275

vi DEFENCE ANNUAL REPORT 2018-19

A No. 36 Squadron C-17A Globemaster takes off from Nackeroo Airfield within the Bradshaw Field Training Area in the Northern Territory.

1 CHAPTER 1 | REVIEWS BY THE SECRETARY AND THE CHIEF OF THE DEFENCE FORCE

REVIEWS BY THE SECRETARY AND THE CHIEF OF THE DEFENCE FORCE1

Australian Army soldier Private Hannah Bailey lays a poppy at the Lone Pine memorial wall dedicated to the missing. The walls adorning the memorial carry the

names of 4,228 Australians missing, as well as those who died on hospital ships and were buried at sea.

2 DEFENCE ANNUAL REPORT 2018-19

Mr Greg Moriarty, Secretary of Defence.

Secretary’s review I am proud to present Defence’s achievements for 2018-19. Three themes have been particularly important in our work this year: continued reform; enhanced regional engagement; and investment in defence industry and capability, all of which contribute to Australia’s security and future prosperity.

The department has made significant progress in implementation of the 2016 Defence White Paper. The White Paper remains important to ensuring Defence is well equipped and well prepared to addresses the challenges Australia may face over the coming decades. Defence will continue to review how changes in the strategic environment, technology and emerging issues affect our capacity to achieve what the Government and the Australian people expect of us.

Organisational and cultural reform Continual improvement through organisational and cultural reform is a central pillar supporting Defence’s mission, capability and strategy. This approach must become part of our organisational DNA and a foundation that empowers agility with our delivery of capability.

We have had another successful year of implementing the recommendations of the First Principles Review, maintaining a clear commitment to our reform agenda. I am pleased that we have successfully implemented all but two of the 75 recommendations. As we become better aligned, continue to embed leadership behaviours, and streamline and integrate our business, we will be able to be more responsive and build on this year’s achievements. In 2018-19, Defence continued to build on the progress made over recent years to foster a more inclusive culture and work together as One Defence. The One Defence approach is fundamental to enabling an effective and professional workforce culture that is united, respectful and collaborative within all components of Defence and across Government. How we do business and build teams must continue to mature to be more collegiate and more agile.

Exhibiting One Defence Leadership Behaviours, including accountability, inclusion and judgement, are key. I want to see Defence staff across both the Australian Public Service (APS) and Australian Defence Force (ADF) continuing to embody our values to deliver outcomes and partner more effectively across Government. I was pleased that the results of the last APS employee census showed improved collaboration.

Our workforce must be fit for purpose—capable, efficient, agile and resilient; and one that can deliver Government’s objectives in a highly dynamic strategic environment. In 2018-19, we have made a concentrated effort to future-proof our workforce for the next decade. We have committed $384.3 million to support the 2016 Defence White Paper People Initiatives and provide an integrated, enterprise approach to our developing our workforce.

The Defence Industry Skilling and Science, Technology, Engineering and Mathematics Strategy, released in February 2019, will help us to attract, train and retain a highly skilled and technically effective workforce to meet our defence capability needs.

3 CHAPTER 1 | REVIEWS BY THE SECRETARY AND THE CHIEF OF THE DEFENCE FORCE

Defence can point to some significant achievements in improving Indigenous representation across our workforce. We have developed a range of career development pathway programs for Aboriginal and Torres Strait Islander Australians seeking a career in Defence, whether as a Defence Force member or an Australian Public Servant.

This year we were recognised by Supply Nation, the peak industry body for Aboriginal and Torres Strait Islander owned companies, as the Government Member of the Year for our exceptional commitment, engagement and leadership in supplier diversity and driving growth in the Indigenous business sector.

Regional engagement Over the year we put additional emphasis on strengthening our international partnerships. These relationships will help ensure our region’s stability and prosperity and ensure that we continue to protect Australia’s strategic interests.

In June 2019, the Minister for Defence, Senator the Hon Linda Reynolds, CSC, attended the 18th International Institute for Strategic Studies Asia Security Summit (2019 Shangri-La Dialogue). The dialogue reaffirmed our relationships with our key partners, such as the United States, Japan and the ASEAN region. Minister Reynolds reinforced Australia’s commitment to collaborating with these partners to support security and prosperity across the Indo-Pacific.

The Pacific Step-Up initiative has been a key focus for Defence in the past 12 months. We have supported the Australian Government’s commitment to an open, secure and prosperous region by strengthening relationships and promoting security and stability with our key regional partners.

Our $2 billion Pacific Maritime Security Program is rolling out 21 new Guardian-Class Patrol Boats to 13 nations, the first of which have already been delivered. The program also includes integrated aerial surveillance, which will significantly enhance regional cooperation over the next five years.

These key initiatives are examples of the breadth of Defence activities and shared purpose with our near neighbours. They demonstrate the pivotal role of the organisation in pursuit of Australia’s national interests and the region’s prosperity and security.

Defence industry and capability Now more than ever, the development of Australian defence industry and the knowledge, expertise and innovation it provides is a fundamental input into capability.

In the past 12 months, the Next Generation Technologies Fund entered into more than 40 funding collaborations with eight companies, 13 universities and two publicly funded research agencies, committing more than $240 million to research programs being executed over the coming years.

The Defence Innovation Hub has continued to enhance Defence capability by investing in maturing and further developing technologies, awarding 37 innovation contracts at a total investment of more than $75.2 million in the past 12 months.

This year we have made significant progress in implementing the national Naval Shipbuilding Plan. A milestone was signing the Future Submarine Program Strategic Partnering Agreement with Naval Group on 11 February 2019. The national Naval Shipbuilding Plan directly serves Australia’s strategic and nation-building interests.

In the past 12 months we have also strengthened our military and intelligence capabilities to support a more integrated and agile Australian Defence Force. Prominent among these have been the EA-18G Growlers, P-8A Poseidons and fifth-generation F-35 Joint Strike Fighters.

We are also undertaking the biggest acquisition project in the history of the Australian Army. Valued between $14 billion and $20 billion over the next 15 years, this project will deliver the next generation of armoured fighting vehicles for our Army.

4 DEFENCE ANNUAL REPORT 2018-19

Defence’s achievements would not have been possible without the contributions and commitment of our people. The achievements contained within this annual report are a testament to our APS and ADF workforces’ ability to be considered and responsive in a dynamic and more complex strategic environment. Our mission remains unchanged, but we must continue to improve and make smarter choices, manage and balance risk and demonstrate the behaviours that result in a more potent defence organisational capability. I look forward to working with the entire Defence team over the next 12 months, alongside the Chief of the Defence Force, General Angus Campbell, AO, DSC, to protect Australia and defend its national interests.

Greg Moriarty

Secretary of Defence

Royal Australian Navy, Australian Army, Royal Australian Air Force and United States Marines on board HMAS Canberra during entry into Vietnam as part of Indo-Pacific Endeavour 2019.

5 CHAPTER 1 | REVIEWS BY THE SECRETARY AND THE CHIEF OF THE DEFENCE FORCE

General Angus J Campbell, AO, DSC, Chief of the Defence Force.

Chief of the Defence Force’s review In 2018-19, Defence increased engagement across the Indo-Pacific region, continued to deliver on the Government’s operational commitments, worked towards the capability investment outlined in the 2016 Defence White Paper and made improvements to better support our people.

Indo-Pacific engagement The Australian Defence Force (ADF) has been very active in the Indo-Pacific region over the past year, as we continue to partner with military and security forces to address common concerns, and build relationships at both institutional and personal levels. In addition to supporting the delivery of the Australian Government’s Pacific Step-Up, the ADF participated in major exercises and supported a number of our neighbours as they delivered key defence and security outcomes.

We supported our nearest neighbour, Papua New Guinea, host the Asia-Pacific Economic Cooperation forum in November 2018. ADF personnel from all Services provided niche capabilities, and Defence also handed over a new geospatial IT system to the Papua New Guinea National Mapping Bureau.

In April 2019, Solomon Islands successfully held the first national general election since the end of the Regional Assistance Mission to Solomon Islands in 2017. The ADF and New Zealand Defence Forces were proud to support Solomon Islands with transport, logistics and communications. Our support reflects the close bilateral relationship we share and underlines our commitment to security and stability in the Solomon Islands.

Exercise Rajawali Ausindo in Indonesia and Exercise Balikatan in the Philippines practiced humanitarian assistance and disaster relief responses, while Exercise Kakadu in Darwin enhanced regional maritime security cooperation. Indo-Pacific Endeavour 2019 and Joint Task Force 637 saw our people engage throughout the Indian Ocean, South-East Asia and the South-West Pacific. All of these events, and many more, maintained relationships and strengthened our ability to effectively work together.

On a personal note, I was pleased to visit Vanuatu, Tonga, Fiji, the Solomon Islands and Papua New Guinea to discuss our common security goals. I also attended the Shangri-La Dialogue in Singapore with both the Minister for Defence, Senator the Hon Linda Reynolds, CSC, and the Secretary.

Operational performance The ADF’s operational commitments remained focused on countering terrorism. The territorial defeat of Da’esh in the Middle East in March was a significant milestone for the global coalition. However, the ongoing threat from non-state actors remains. The achievement of Initial Operating Capability by the Iraqi Army School of Infantry Non-Commissioned Officer II means our mission has transitioned from directly training Iraqi soldiers to a mentoring and train-the-trainer mission. A KC-30A air-to-air refuelling aircraft and E-7A Wedgetail airborne early warning and control aircraft remain in the region as part of our commitment to the global coalition.

6 DEFENCE ANNUAL REPORT 2018-19

We have evolved our support to Afghanistan to include aviation advisors and force protection personnel to enhance Afghan Air Force capabilities, in addition to institutions that support the wider Afghan National Defense and Security Forces. We remain the second largest contributor to the Afghan National Army Trust Fund, contributing US$520 million since 2010.

HMAS Ballarat completed an outstanding deployment as part of Operation MANITOU, locating and destroying explosive precursor chemicals, nearly half a million rounds of illicit ammunition, and over 21 tonnes of heroin, hashish, methamphetamines and amphetamines, with an estimated value in excess of $1 billion.

Following a request from the United Nations Command, the ADF deployed a small number of military personnel to the Korean Peninsula to support the implementation of the inter-Korean Comprehensive Military Agreement. Additionally, HMAS Melbourne, AP-3C Orion and P-8A Poseidon aircraft conducted surveillance patrols in support of the international effort to enforce United Nations Security Council resolutions on North Korea. The flights to deter and disrupt sanctions evasion are part of Australia’s commitment to a stable and secure Indo-Pacific region.

Building future capability The modernisation of air, land and maritime assets flowing from the Government’s $200 billion 10-year plan, outlined in the 2016 Defence White Paper, is well underway. The partnership between Defence and industry is strong, and I am pleased to see increased contributions by Australian small businesses to ADF capability. While this significant investment in traditional defence equipment is critical, it is being integrated with space and cyber capabilities, and underpinned by modern, integrated systems to support a trained and skilled workforce.

This year, Defence commenced a critical 30-year, $1.1 billion investment in a simpler, safer and more assured fuel network. We signed a $1.5 billion contract towards our future short-range, ground-based air defence capability, commenced a $600 million upgrade for Navy’s Fleet Information Environment, and invested $52.8 million in a deployable computer network to improve information sharing with Five Eyes partners.

ADF personnel will be better prepared as a result of an $897 million investment in simulation technologies to develop realistic future training environments. Additionally, Government approval was given in September for a 13-year, $1 billion Integrated Soldier System, to enhance and continuously improve the basic equipment used by personnel in the field.

Technological advances in unmanned and autonomous systems continue to present opportunities and challenges in equal measure. Exercise Autonomous Warrior combined scientific trials, demonstrations and exercises, as part of the ADF’s work with industry to inform future capability options. Additionally, Air Force purchased the MQ-4C Triton remotely piloted aircraft for broad area maritime surveillance and selected the MQ-9 as Australia’s first armed remotely piloted aircraft system. Navy formed a new Squadron 822X for unmanned aerial systems and Army introduced the Phantom 4 and Black Hornet systems.

Supporting our people None of these achievements would have been possible without the dedicated and highly skilled people of Defence, who continue to have a positive impact in our communities. Defence has been proud to support a diverse range of local community events, public events of significance, and communities impacted by natural disasters. I am particularly proud of the Army Aboriginal Community Assistance Program and Exercise Kummundo that continue to reinforce the strong links between the ADF and the Indigenous people of northern, central and western Australia. In 2018-19, 7.3 per cent of new recruits identified as Aboriginal or Torres Strait Islander.

We continue to make inroads to improve Defence culture, including through the Defence Reconciliation Action Plan, to ensure Defence remains a place where all of our people feel safe and want to come to work.

7 CHAPTER 1 | REVIEWS BY THE SECRETARY AND THE CHIEF OF THE DEFENCE FORCE

A new contract was signed to deliver contemporary health services for 80,000 ADF members. Mental health support, which is an important focus of the ADF, continues to be a high priority. Adaptive sports now offers wounded, injured and ill members opportunities to improve their confidence to face future challenges in their rehabilitation. This program facilitated the participation of serving and ex-serving personnel in the 2018 Invictus Games hosted in Sydney. A home crowd provided an opportunity for our Invictus athletes to showcase their sporting achievements to all Australians.

I also recognise the essential support that Defence families provide to our organisation. As such, Defence has continued to implement a broad range of programs and services aimed at helping our people and their families make the most of the challenges and opportunities presented by military life. This included $1.4 million in community grants to directly support activities and services for our families across Australia.

I am privileged to lead a great ADF team. Every day, our people serve our nation, and I am both very proud of and thankful for their commitment. I look forward to continuing our progress through close cooperation with the Secretary and our outstanding senior leadership team.

Angus J Campbell, AO, DSC

General Chief of the Defence Force

Figure 1.1: ADF operations during 2018-19

Operation RESOLUTE—Border Security

Operation SOUTHERN DISCOVERY —Southern Ocean and Antarctica

Operation SOLANIA—Paci*c Islands

Operation GATEWAY—South-East Asia

Operation PALADIN—Israel and Lebanon

Operation FORTITUDE—Israel and Syria

Operation CHARTER—Cyprus

Operation OKRA—Iraq

Operation STEADFAST—Iraq

Operation HIGHROAD—Afghanistan

Operation ACCORDION—Middle East region

Operation MAZURKA—Sinai

Operation ASLAN—South Sudan

Operation MANITOU—Middle East region Operation AUGURY—PHILIPPINES

Operation RENDER SAFE—South West Paci*c

ENHANCED REGIONAL ENGAGEMENT —South West Paci*c

INDO-PACIFIC ENDEAVOUR —South West Paci*c

Operation ARGOS—UNSC sanctions

Operation LINESMAN—UNSC demilitarisation observation and reporting

8 DEFENCE ANNUAL REPORT 2018-19

Space surveillance telescope facilities completed

The Defence Estate and Infrastructure Group handed over ownership of the new Space Surveillance Telescope Facilities to Defence Capability Acquisition and Sustainment Group in May 2019.

The completed facilities, located in Exmouth, Western Australia are an important milestone in Project AIR3029 Phase 2. This project is an inter-government joint initiative between Australia and the United States to provide space situational awareness through the tracking, classification, and identification of space-based objects.

The facilities are on Defence land approximately six kilometres north-west of Harold E Holt Naval Communications Station. This remote site was chosen as the possibility of light interference is low and the area’s weather conditions are ideal to enable the maximum collection of useful data.

The new $97.2 million facilities will accommodate a space telescope that has been relocated from New Mexico, US. Its installation is on track to meet initial operating capability in 2021. The construction of the unique facilities was

completed by a combined team led by Aurecon, the project manager / contract administrator; M3 Engineering and Technology Corporation, the Design Services Consultant; and Sitzler, the prime contractor; and was supported by a range of local industries from the region. The design and manufacture of the track and bogie system to allow the dome to rotate a full 360 degrees, undertaken by Hofmann Engineering, a Perth based contractor, resulted in a world-leading product.

Construction of the 270 tonne rotating dome enclosure and supporting facilities is a significant achievement for the Australian industry, with 22 subcontractor packages awarded to Western Australian industry, of which six packages were awarded to the building and construction sectors local to the Exmouth region. Notably, local Exmouth contractors Exmouth Civil and Pebble Beach Construction performed outstandingly in meeting the facilities’ unique building requirements.

The space telescope will be remotely operated by the RAAF in collaboration with the US to monitor orbiting satellites, space debris, and near earth asteroids.

Space surveillance telescope facilities at Exmouth, WA

9 CHAPTER 2 | DEPARTMENTAL OVERVIEW

DEPARTMENTAL OVERVIEW2

2018 ACT Woman of the Year and former Defence graduate Ashleigh Streeter-Jones speaking at the International Women’s Day event at

Russell Offices, Canberra.

10 DEFENCE ANNUAL REPORT 2018-19

Purposes Purposes are defined in the Public Governance, Performance and Accountability Act 2013 (PGPA Act) as ‘the objectives, functions or role’ of an entity. Defence’s primary role is to protect and advance Australia’s strategic interests through the promotion of security and stability, the provision of military capabilities to defend Australia and its national interests, and the provision of support for the Australian community and civilian authorities as directed by Government.

In the 2018-19 Defence Corporate Plan, the Defence purposes were:

1. Defend Australia and its national interests 2. Protect and advance Australia’s strategic interests.

Further information on the two Defence purposes is included in the 2018-19 Defence Corporate Plan, which is available at www.defence.gov.au/publications/corporateplan/. Defence’s performance in achieving its purposes during the 2018-19 reporting period is described in Chapter 3—‘Annual performance statements’.

Strategic direction The Government supports a stable, rules-based global order that underpins the peaceful resolution of disputes, facilitates free and open trade, and enables access to the earth’s shared natural resources. In a rapidly changing security environment, the Government expects Defence to defend Australia and its national interests, play an active role in contributing to regional security and stability, and contribute to coalition operations around the world where our interests are engaged.

Implementation of the 2016 Defence White Paper continues to be central to ensuring Defence can address emerging challenges in Australia’s strategic environment over the next decades while promoting its interests. This includes investing in Defence’s hard and soft power as a central contribution to Australia’s strategic weight.

Defence will continue to review how shifts in the strategic environment and advances in technology affect Defence’s capacity to achieve what Government and the Australian people expect of it. In response, Defence will make adjustments to strategy, resources and posture, as required.

Defence’s commitment to a strong, unified and integrated One Defence as set out in the First Principles Review recommendations will continue into 2019-20. This will strengthen accountability and decision-making and enable continued improvement in policy formulation and the quality of advice provided to the Government.

Defence portfolio structure As at 30 June 2019, the Defence portfolio has four ministers:

• Senator the Hon Linda Reynolds, CSC, Minister for Defence

• the Hon Alex Hawke MP, Assistant Defence Minister

• the Hon Darren Chester MP, Minister for Veterans and Defence Personnel

• the Hon Melissa Price MP, Minister for Defence Industry.

Defence is established as a Department of State under the Administrative Arrangements Order. Defence operates under the Public Service Act 1999 and is a non-corporate Commonwealth entity under the PGPA Act. The Australian Defence Force (ADF) is constituted through the Defence Act 1903.

In addition to the Department of Defence and the ADF, the Defence portfolio consists of other entities, including Defence Housing Australia; the Australian Defence Force Cadets; and a number of statutory offices, canteens, trusts and companies. Legislation that establishes these entities includes the Defence Housing Australia Act 1987, the Defence Act 1903, the Army and Air Force (Canteen) Regulation 2016, the Navy (Canteen) Regulation 2016, the Services Trust Funds Act 1947, the Royal Australian Air Force Veterans’ Residences Act 1953 and the Corporations Act 2001.

11 CHAPTER 2 | DEPARTMENTAL OVERVIEW

Minister for Defence Senator the Hon Linda Reynolds, CSC

Assistant Defence Minister The Hon Alex Hawke MP

Minister for Defence Industry The Hon Melissa Price MP

Minister for Veterans and Defence Personnel The Hon Darren Chester MP

Secretary Greg Moriarty

Chief of the Defence Force General Angus Campbell, AO, DSC

Department of Defence

Australian Defence Force

Australian Signals Directorate

Defence Housing Australia

Navy Army Air Force

Military Justice appointments

Trusts, companies and other statutory offices and entities

The portfolio also contains the Australian Signals Directorate, designated under the Intelligence Services Act 2001, and the Department of Veterans’ Affairs and associated bodies, as designated in the Administrative Arrangements Order. Figure 2.1 shows the Defence portfolio structure as at 30 June 2019.

Figure 2.1: Defence portfolio structure as at 30 June 2019

Note: The Department of Veterans’ Affairs is not included in Figure 2.1.

Changes in ministerial responsibilities Following the federal election on 18 May 2019, the new Government was sworn in on 29 May 2019. The following changes were made in the Defence portfolio:

• Senator the Hon Linda Reynolds, CSC, was sworn in as the Minister for Defence

• the Hon Alex Hawke MP was sworn in as the Assistant Defence Minister

• the Hon Darren Chester MP continued as the Minister for Defence Personnel

• the Hon Melissa Price MP was sworn in as the Minister for Defence Industry.

12 DEFENCE ANNUAL REPORT 2018-19

Since its introduction into service in November 2016 the P-8A Poseidon has given the ADF one of the most advanced maritime patrol and surveillance capabilities in the world, enabling it to protect the strategic defence interest ‘A secure, resilient Australia with secure northern approaches and proximate sea lines of communication’.

The acquisition and sustainment of the P-8A Poseidon capability remains a fundamental element in supporting the successful delivery of Australia’s overarching maritime patrol and response strategy.

With significantly increased connectivity, networking and data-processing capacity compared to the retiring AP-3C Orion, the P-8A Poseidon offers the Royal Australian Air Force a considerable capability edge.

Based on the commercially proven Boeing 737, the P-8A Poseidon is a modern, highly reliable aircraft designed to deliver an advanced maritime intelligence surveillance, reconnaissance and response capability and will dominate in the anti-submarine warfare role.

With complex mission systems supporting anti-surface and anti-submarine warfare, as well as search and survivor assistance capabilities, the aircraft is equipped with advanced sensors including maritime radar, electro-optics, electronic support measures and an acoustic system that provides the ability to conduct searches of large expanses of the ocean more effectively.

The P-8A Poseidon is therefore well equipped for the One Defence focus on securing Australia’s northern approaches and is making a vital contribution to meeting the ADF’s regional and national security objectives as directed by government.

The P-8A Poseidon has already deployed in support of Operation ARGOS, providing an air component of the multinational effort to enforce UN Security Council resolutions related to North Korea. In 2018-19 its advanced capability was also demonstrated by No. 11 Squadron based at RAAF Base Edinburgh during Operation APEC ASSIST, Operation GATEWAY and Operation RESOLUTE.

Australia now has eight P-8A Poseidon aircraft. The full fleet of 12 is expected to be operational by 2022.

P-8A Poseidon—delivering a capability edge

A Royal Australian Air Force P-8A Poseidon UNIPAC II drop training exercise over St Vincent

Gulf in South Australia.

13 CHAPTER 2 | DEPARTMENTAL OVERVIEW

Outcomes and programs Defence’s annual Portfolio Budget Statements (PBS) detail the outcomes and program structures for the Defence portfolio. Within this framework, the outcome is the intended result, impact or consequence of our actions. We work towards achieving our outcomes through undertaking activities and delivering results for each program.

Figure 2.2 shows Defence’s two outcomes for 2018-19, together with the related programs. The PBS describe the performance criteria and targets to be used in assessing and monitoring the performance of Defence in achieving government outcomes.

Figure 2.2: Defence’s outcomes and programs, 2018-19

Purpose Outcome statement Budget program

Purpose 1: Defend Australia and its national interests.

Outcome 1: Defend Australia and its national interests through the conduct of operations and provision of support for the Australian community and civilian authorities in accordance with Government direction.

1.1 Operations Contributing to the Safety of the Immediate Neighbourhood

1.2 Operations Supporting Wider Interests

1.3 Defence Contribution to National Support Tasks in Australia

Purpose 2: Protect and advance Australia’s strategic interests.

Outcome 2: Protect and advance Australia’s strategic interests through the provision of strategic policy, the development, delivery and sustainment of military, intelligence and enabling capabilities, and the promotion of regional and global security and stability as directed by Government.

Departmental 2.1 Strategic Policy and Intelligence 2.2 Defence Executive Support 2.3 Chief Finance Officer 2.4 Joint Capabilities 2.5 Navy Capabilities 2.6 Army Capabilities 2.7 Air Force Capabilities 2.8 Australian Defence Force

Headquarters

2.9 Capability Acquisition and Sustainment 2.10 Estate and Infrastructure 2.11 Chief Information Officer 2.12 Defence People 2.13 Defence Science and Technology

Administered 2.14 Defence Force Superannuation Benefits 2.15 Defence Force Superannuation

Nominal Interest

2.16 Housing Assistance 2.17 Other Administered

14 DEFENCE ANNUAL REPORT 2018-19

Associate Secretary Ms Rebecca Skinner

Chief Finance Of*cer Mr Steven Groves

Deputy Secretary Strategic Policy and Intelligence Mr Peter Tesch

Deputy Secretary Capability Acquistion and Sustainment Mr Anthony Fraser

Deputy Secretary National Naval Shipbuilding and General Manager Submarines Vacant

Chief Defence Scientist Prof Tanya Monro

Chief Information Of*cer Mr Stephen Pearson

Deputy Secretary Defence People Ms Justine Greig

Deputy Secretary Estate and Infrastructure Mr Steve Grzeskowiak

Vice Chief of the Defence Force Vice Admiral David Johnston, AO

Chief of Navy

Vice Admiral Michael Noonan, AO

Chief of Army

Lieutenant General Rick Burr, AO, DSC, MVO

Chief of Air Force

Air Marshal Leo Davies, AO, CSC

Chief of Joint Operations

Lieutenant General Gregory Bilton, AM, CSC

Chief of Joint Capabilities Air Marshal Warren McDonald, AM, CSC

Minister for Defence Senator the Hon Linda Reynolds, CSC

Minister for Defence Industry Hon Melissa Price MP

Assistant Defence Minister Hon Alex Hawke MP

Minister for Veterans and Defence Personnel Hon Darren Chester MP

Secretary Mr Greg Moriarty

Chief of the Defence Force General Angus Campbell, AO, DSC

Organisational structure The Secretary of Defence and the Chief of the Defence Force jointly manage Defence as a diarchy. The term ‘diarchy’ reflects the individual and joint responsibilities and accountabilities of the Secretary and the Chief of the Defence Force in ensuring that Defence meets Australian Government requirements. The manner in which the diarchy operates is described in directions given to the Secretary and the Chief of the Defence Force by the Minister for Defence. Figure 2.3 shows the elements and relationships of Defence organisational structure as at 30 June 2019.

Figure 2.3: Defence organisational structure as at 30 June 2019

Note: For a more current view visit www.defence.gov.au.

15 CHAPTER 2 | DEPARTMENTAL OVERVIEW

Changes in senior leadership • On 3 July 2018, Lieutenant General Richard Burr was appointed Chief of Army.

• On 6 July 2018, Mr Thomas Hamilton commenced acting as the Deputy Secretary Strategic Policy and Intelligence.

• On 7 July 2018, General Angus Campbell was appointed Chief of the Defence Force.

• On 7 July 2018, Vice Admiral David Johnston, RAN, was appointed Vice Chief of the Defence Force.

• On 7 July 2018, Vice Admiral Michael Noonan, RAN, was appointed Chief of Navy.

• On 28 August 2018, (then) Air Chief Marshal Mark Binskin, the previous Chief of the Defence Force, transferred to the Reserve Service.

• On 1 September 2018, (then) Vice Admiral Raymond Griggs, RAN, the previous Vice Chief of the Defence Force, transferred to the Reserve Service.

• On 1 September 2018, (then) Vice Admiral Timothy Barrett, RAN, the previous Chief of Navy, transferred to the Reserve Service.

• On 3 September 2018, Mr Stephen Johnson was appointed Deputy Secretary National Naval Shipbuilding in the Capability Acquisition and Sustainment Group.

• On 3 September 2018, Mr Greg Divall commenced acting as the Deputy Secretary Capability Acquisition and Sustainment Group.

• On 7 September 2018, Mr Kim Gillis, the previous Deputy Secretary Capability Acquisition and Sustainment, retired from the Australian Public Service.

• On 27 September 2018, Ms Rebecca Skinner was appointed as the Associate Secretary.

• On 5 November 2018, Mr Anthony Fraser was appointed as the Deputy Secretary Capability Acquisition and Sustainment Group.

• On 6 November 2018, Dr Todd Mansell commenced acting as the Chief Defence Scientist.

• On 16 November 2018, Dr Alexander Zelinsky, the previous Chief Defence Scientist, retired from the Australian Public Service.

• On 28 January 2019, Air Marshal Warren McDonald was promoted to Air Marshal and reappointed as Chief of Joint Capabilities.

• On 11 March 2019, Professor Tanya Monro was appointed as the Chief Defence Scientist.

• On 18 April 2019, Mr Peter Tesch was appointed as the Deputy Secretary Strategic Policy and Intelligence.

• On 31 May 2019, Mr Stephen Johnson, the previous Deputy Secretary National Naval Shipbuilding in the Capability Acquisition and Sustainment Group, resigned from the Australian Public Service.

• On 28 June 2019, Lieutenant General Gregory Bilton was appointed Chief of Joint Operations.

16 DEFENCE ANNUAL REPORT 2018-19

Financial summary Defence has a sound financial position, with sufficient cash reserves and future appropriations to fund its debts as and when they fall due. Defence’s departmental net cash spend was $36.4 billion in 2018-19. This was an underspend of $30 million when compared to the revised estimate in the Defence Portfolio Budget Statements 2019-20, excluding appropriations to be returned to Government for operations funded on a No Win, No Loss basis which were not spent during the year.

Defence received an unqualified audit report on the 2018-19 Financial Statements from the Australian National Audit Office. These statements are in Appendices, ‘Financial statements’.

See Chapter 4, ‘Financial summary’, for a financial overview of 2018-19.

People summary Defence’s workforce comprises ADF members of the Navy, Army and Air Force and Australian Public Service (APS) employees.

The ADF’s actual funded strength at 30 June 2019 was 58,554, compared with 58,363 at 30 June 2018. The APS’s actual full-time equivalent workforce at 30 June 2019 was 15,996, compared with 17,308 at 30 June 2018. The reduction in APS strength in 2018-19 was primarily due to the creation of the Australian Signals Directorate as a statutory agency on 1 July 2018.

Detailed information on Defence’s workforce is provided in Chapter 6, ‘Strategic workforce management’ and in Appendix B, ‘Additional workforce tables’.

Figure 2.4: ADF and APS comparative funded strength for 2017-18 and 2018-19

0

10,000

30 June 2018

Actual paid strength

30 June 2019

20,000

30,000

40,000

50,000

60,000

ADF APS

15,996

58,554

17,728

58,363

17 CHAPTER 2 | DEPARTMENTAL OVERVIEW

ANNUAL

PERFORMANCE STATEMENTS3

Australian Army soldier Lance Corporal Jordan Hoegger from the 2nd Battalion (Amphibious), Royal Australian Regiment, prepares to move during a platoon attack at

Pohakuloa Training Area as part of Exercise Rim of the Pacific 18 (RIMPAC 18).

18 DEFENCE ANNUAL REPORT 2018-19

Statement of preparation I, as the accountable authority of the Department of Defence, present the 2018-19 annual performance statements of the Department of Defence, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act). In my opinion, these annual performance statements are based on properly maintained records, accurately reflect the performance of the entity, and comply with subsection 39(2) of the PGPA Act.

Greg Moriarty Secretary of the Department of Defence 24 September 2019

The annual performance statements for 2018-19 provide an assessment of Defence’s performance in achieving our purposes by reporting on the performance measures and criteria set out in the 2018-19 Defence Corporate Plan and the performance criteria listed in the Portfolio Budget Statements 2018-19 (PBS) and the Portfolio Additional Estimates Statements 2018-19 (PAES). In 2018-19 the purposes are directly aligned to the Defence outcomes in the PBS.

To enhance readability of the annual performance statements, the performance measures and criteria are organised around the two purposes described in the 2018-19 Defence Corporate Plan:

Purpose 1: Defend Australia and its national interests.

Purpose 2: Protect and advance Australia’s strategic interests.

Outcome statements describe what the Government requires Defence to achieve using resources allocated through the Commonwealth budget process. In 2018-19 Defence had two outcome statements:

Outcome 1: Defend Australia and its national interests through the conduct of operations and provision of support for the Australian community and civilian authorities in accordance with Government direction.

Outcome 2: We protect and advance Australia’s strategic interests through the provision of strategic policy, the development, delivery and sustainment of military, intelligence and enabling capabilities, and the promotion of regional and global security and stability as directed by Government.

The purpose of Defence’s enterprise performance management is to ensure alignment between Government direction, strategy, funding and capability, such that the purposes of Defence are achieved. The aim is to provide a clear line of sight between:

• the Corporate Plan (purposes, activities and intended results)

• the PBS (allocation of resources to programs to achieve Government outcomes and a forecast of expected performance)

• annual performance statements within Defence’s Annual Report (actual performance results for the financial year against the Corporate Plan and the PBS)

• the Defence Financial Statements at Appendix A.

Defence is continuing to mature the approach which will enable improved traceability in demonstrating the achievement of Government outcomes in accordance with the requirements of the Public Governance, Performance and Accountability Act 2013. Figure 3.1 demonstrates the position of the annual performance statements within Defence’s enterprise performance management. Figure 3.2 sets out the relationship between Defence’s Portfolio Budget Statements, Corporate Plan, the Defence Business Plan and Group and Service business plans.

19 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Corporate Plan

Portfolio Budget Statements

(Portfolio Additional Estimates Statements)

Annual Report

Annual Performance Statements (non-financial performance)

Financial Statements (financial performance)

Performance Cycle

Plan and Resource Forecast intended results, required resources and

performance measures

Monitor Measure

performance using agreed methodology

Report Actual results against forecast performance

Learn

Improve next cycle

DEFENCE ENTERPRISE PERFORMANCE MANAGEMENT

Plan

Performance

Program Performance

Figure 3.1: Defence enterprise performance management

Defence’s annual performance statements provide an assessment of actual performance in achieving each Defence purpose. This includes analysis against each performance criterion, using the key:

• Achieved—the intended result was achieved as planned

• Partially achieved—the intended result was not fully achieved during the reporting period.

Note: Due to national security considerations, not all targets are available to be published.

Figure 3.2: Defence enterprise planning view

2018-2019 Defence Portfolio Budget Statements

Purpose 1: Defend Australia and its national interests

OUTCOME 1

OUTCOME 1

Programs ($m)

1.1 Operations—neighbourhood safety $41.2 1.2 Operations—wider interests $696.8

1.3 National support tasks $53.4

Programs ($m)

2.1 Strategic Policy & Intelligence $759.2 2.2 Defence Executive Support $214.9

2.3 Chief Finance Officer $145.3

2.4 Joint Capabilities Group $1,503

2.5 Navy Capabilities $6,286.5

2.6 Army Capabilities $ 7,500.8

2.7 Air Force Capabilities $7,585.6

2.8 ADFHQ $104.5

2.9 Capability Acquisition & Sustainment $529.8 2.10 Estate & Infrastructure $4,651.5

2.11 Chief Information Officer $1,385.9

2.12 Defence People $565

2.13 Defence Science & Technology $446.9

OUTCOME 1

2 Intended Results

2 Intended Results

3 Activities Measures/Targets

Measures/Targets

Tasks Resources

Tasks Resources

25 Activities

Sub Activities

Sub Activities

Sub Activities

Sub Activities

EXTERNAL INTERNAL

OUTCOME 1

OUTCOME 1

OUTCOME 1

OUTCOME 2

OUTCOME 2

Defence Corporate Plan (4 YEARS)

Responsible Officer Business Plans (1 YEAR)

Defence Business Plan (1 YEAR)

Purpose 2: Protect and advance Australia’s strategic interests

2 Intended Results

3 Activities

6 Intended Results

25 Activities

20 DEFENCE ANNUAL REPORT 2018-19

Purpose 1: Defend Australia and its national interests Defence achieved Purpose 1 in 2018-19. The Government has deployed the Australian Defence Force to meet policy objectives. The Australian Defence Force has conducted operations to defend Australia’s national interests domestically, through the Indo-Pacific region, and globally to promote stability, integrity and cohesion.

Defence has planned and participated in a range of national support tasks in 2018-19, including securing the Australian maritime boundary, support to counter-terrorism capabilities, search and rescue, and humanitarian assistance and disaster relief. Around 3,000 Australian Defence Force members contributed to Joint Task Forces which supported recovery operations in North Queensland after significant flooding in February 2019. In March 2019, approximately 200 Australian Defence Force members supported evacuation and recovery operations in the Northern Territory in the wake of Tropical Cyclone Trevor.

Defence cooperated with other Commonwealth departments and agencies to support operations in the Indo-Pacific region to deliver whole-of-government outcomes and stronger security partnerships. For example, Defence is supporting the Australian Government’s Pacific Step-Up initiative through a program of enhanced regional engagement providing training, equipment and infrastructure improvements to enhance the capacity of the region’s security forces. These activities have seen more of our people deploying across the Indo-Pacific on a regular basis. The benefits of this enhanced engagement have been reflected through strengthened bilateral and multilateral relationships and closer institutional bonds.

Defence’s contribution to building stronger people-to-people links, through activities as diverse as Indo-Pacific Endeavour and the Women, Peace and Security agenda, has been positively received across the region. Indo-Pacific Endeavour is a major maritime activity that promotes regional security and stability. Between May and July 2018, Indo-Pacific Endeavour visited a number of Pacific Island countries, providing an opportunity for Australian Defence Force personnel to work alongside partner nations to build security capacity and strengthen host nation humanitarian assistance and disaster relief capabilities. From February to June 2019, Indo-Pacific Endeavour visited India and Sri Lanka, as well as a range of South-East Asian countries, conducting major maritime security exercises and training activities alongside the military forces of regional neighbours to increase interoperability. Defence integrates Women, Peace and Security principles into all of our activities across the Pacific, including through the Defence Cooperation Program. A particular focus of this program has been preparing regional forces for service on United Nations peacekeeping operations, ensuring Women, Peace and Security principles are effectively and sensitively incorporated into military planning and operation execution.

Defence has assisted regional partners with infrastructure development to support the arrival of Guardian Class Patrol Boats into the region, and is developing facilities to improve the access of host nation personnel to training programs delivered under the Defence Cooperation Program. Defence has progressed the governance framework and initial design work of the Papua New Guinea-Australia joint initiative to redevelop the Lombrum Naval Base to enhance Papua New Guinea Defence Force capability. Defence has also progressed development of the Blackrock Peacekeeping and Humanitarian Assistance and Disaster Relief Camp in Fiji, where we have Australian Defence Force personnel working side by side with Fijian counterparts. Throughout Pacific Island countries, we have undertaken minor facilities repairs and upgrades, on an opportunity basis, during planned Australian Defence Force exercises and activities.

In 2018-19, requests for Australian Defence Force humanitarian assistance and disaster relief capabilities remained high. The Australian Defence Force responded to an earthquake and subsequent tsunami in central Indonesia and assisted Indonesian authorities with the distribution of aid equipment and personnel. Regional assistance missions such as this have obvious humanitarian effects, but also develop trust, cooperation and interoperability with regional forces. Defence also contributed to stability in the Indo-Pacific region, and the rules-based global framework, through collaborating with partners on transnational issues such as counter-terrorism capacity building in South-East Asia, as well as niche support to civil agencies across the Pacific for a number of law enforcement tasks.

Defence has been actively engaged in North-East and South-East Asia. Operation ARGOS, Australia’s contribution to maintaining economic and diplomatic pressure on North Korea, continues to support multinational efforts to enforce United Nations Security Council sanctions against North Korea. As part of this operation, the Australian Defence Force has deployed maritime patrol aircraft and Major Fleet Units to conduct maritime surveillance operations. Defence has also supported the inter-Korean peace process through Operation LINESMEN, the

21 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

deployment of a small number of Australian Defence Force specialists to the Republic of Korea to monitor the implementation of agreed actions.

Closer to our immediate region, Defence is contributing to the preservation of regional security and stability in South-East Asia through the auspices of Operation GATEWAY, an operation that has endured since the 1980s. Under Operation GATEWAY, the Australian Defence Force provides maritime surveillance patrols in the North Indian Ocean and South China Sea, contributing to the bilateral Defence relationship between Australia and Malaysia.

In the Middle East, Operation MANITOU supports international efforts to promote maritime security, stability and prosperity. During 2018-19, the Australian Defence Force has seized narcotics valued at over A$1.4 billion, large quantities of ammunition and in excess of 12 tonnes of precursor chemicals required for the manufacture of explosives. Through Operation OKRA, the Australian Defence Force has collaborated closely with the Government of Iraq, Gulf nations and international partners to combat the Daesh terrorist threat in Iraq. Australian Defence Force personnel have provided military advice and assistance to the Counter-Terrorism Service of the Iraqi Security Forces and also supported international efforts to train and build the capacity of the Iraqi Security Forces. In Afghanistan, under Operation HIGHROAD, the Australian Defence Force has contributed to the North Atlantic Treaty Organization-led Resolute Support Mission to train, advise and assist the Afghan National Defense and Security Forces. Australian Defence Force personnel have provided military advice, education and training services to support the long-term growth and development of the Afghan National Defense and Security Forces.

In addition to the operations outlined in the 2018-19 Defence Portfolio Budget Statements, and those mentioned above, Defence has established Operation STEADFAST as the Australian Defence Force’s contribution to the North Atlantic Treaty Organization mission in Iraq, providing continued capacity building of the Iraqi Security Forces.

PBS programs contributing to Purpose 1

PBS1.1 Operations Contributing to the Safety of the Immediate Neighbourhood

PBS1.2 Operations Supporting Wider Interests

PBS1.3 Defence Contributions to National Support Tasks in Australia

PBS2.8 Australian Defence Force Headquarters

Intended Result 1.1: Defence operational capability is able to be deployed to support Government policy objectives.

During the reporting period, Defence operations and activities were successfully planned and executed as directed by Government. Defence contributed to United Nations and international efforts to uphold global security, engaging in operations and activities that included Operation APEC 2018 ASSIST, Operation AUGURY—PHILIPPINES, Enhanced Regional Engagement in support of Pacific Step-Up, Solomon Islands Election Assistance and Indo-Pacific Endeavour.

In support of the Government’s policy objectives of regional stability, security and prosperity, Defence engaged across departments and agencies to deal with requirements relating to Australian Defence Force operations with Indonesia, Papua New Guinea, South-East Asian countries and the island countries of the South-West Pacific.

Defence also collaborated with other departments and agencies such as the Department of Home Affairs, the Department of Foreign Affairs and Trade, the Department of the Prime Minister and Cabinet, Emergency Management Australia, the Australian Federal Police and the states and territories to manage short-notice issues relating to the Australian Defence Force’s operations, longer-term complex issues such as defeating terrorism, and future operations requiring Government consideration.

22 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criterion Target

1.1a Conduct and sustain operations contributing to the security and safety of the immediate neighbourhood in accordance with Government strategic direction.

Assessment of operational deployments against outcomes agreed with Government.

All Government directed tasks are met.

Source 2018-19 Defence Corporate Plan Activity 1.1a

Portfolio Budget Statements 2018-19 Program 1.1

Results Achieved

Analysis Defence operations and activities were successfully conducted in accordance with operational plans as directed by Government.

Defence successfully engaged across departments and agencies to enable the Australian Defence Force’s operations in Australia’s immediate neighbourhood with Indonesia, Papua New Guinea, South-East Asian countries and the island countries of the South-West Pacific.

Defence has provided full support to Operation SOVEREIGN BORDERS and maintained other operational commitments, consistent with Government priorities.

Operations and activities during this period included Operation APEC 2018 ASSIST, Operation AUGURY—PHILIPPINES, Enhanced Regional Engagement in support of Pacific Step-Up, Solomon Islands Election Assistance and Indo-Pacific Endeavour.

Activity Performance criterion Target

1.1b Conduct and sustain operations supporting wider interests in accordance with Government strategic direction.

Assessment of operational deployments against outcomes agreed with Government.

All Government directed tasks are met.

Source 2018-19 Defence Corporate Plan Activity 1.1b

Portfolio Budget Statements 2018-19 Program 1.2

Results Achieved

Analysis During the reporting period, Defence successfully conducted operations and activities supporting wider interests that contribute to United Nations and international efforts to uphold global security.

Defence supported Australia’s contribution to multinational efforts to enforce United Nations Security Council sanctions against North Korea through conduct of Operation ARGOS. Defence also supported the inter-Korean peace process through Operation LINESMEN.

Defence supported international efforts to promote maritime security, stability and prosperity in the Middle East through Operation MANITOU, and in collaboration with the Government of Iraq, Gulf nations and international partners combated terrorist threats in Iraq through Operation OKRA. Defence made further contributions to international efforts in Afghanistan and Iraq through Operations HIGHROAD and STEADFAST respectively.

Defence worked collaboratively with other Government departments and agencies to deal with a variety of issues, ranging from short-notice responses to incidents, to longer-term complex issues that required comprehensive Government consideration.

23 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Intended Result 1.2: Defence contributions to National Support Tasks in Australia are provided in accordance with Government direction.

Activity Performance criterion Target

1.2a Contribute to national security and support tasks as directed by Government.

Assessment of capacity and capability provided in support of whole-of-Government outcomes.

All Government directed tasks are met.

Source 2018-19 Defence Corporate Plan Activity 1.2a

Portfolio Budget Statements 2018-19 Program 1.3

Results Achieved

Analysis Defence provided advice and support to operations and activities including:

• the planning and conduct of operations to enforce the sovereignty of Australian maritime zones from unauthorised maritime arrivals, smuggling and quarantine evasion

• counter-terrorism response

• search and rescue

• humanitarian assistance

• disaster relief.

Defence engaged with and contributed to the Department of Home Affairs civil surveillance program and Maritime Border Command tasking through the provision of maritime surveillance assets that were tasked routinely in accordance with Government direction.

Defence supported the Defence Assistance to the Civil Community program with emergency and non-emergency support following severe weather events in north and central Queensland and Tropical Cyclone Trevor in Darwin, and provided support to firefighting efforts in Queensland, Victoria, Tasmania and Western Australia.

24 DEFENCE ANNUAL REPORT 2018-19

HMAS Success conducts a Replenishment at Sea with USNS Pecos in the approach lanes of the Singapore Straits during Indo-Pacific Endeavour 2019.

A principal partner in the Indo-Pacific region

Defence has longstanding relationships with Indo-Pacific nations based on mutual respect, trust and close partnerships. In 2018 the Australian Government announced a step up in our commitment to supporting and working with our closest neighbours.

To drive the delivery of new and continuing Defence initiatives in the region, the Indo-Pacific Enhanced Engagement Branch was established in the International Policy Division. The new initiatives respond to priorities identified through dialogue with our partners in the region and complement a range of activities conducted under the Defence Cooperation Program and Pacific Maritime Security Program.

Defence has become more active across the region, including through increasing our maritime and land presence in training and activities with military and security forces, planning an annual Joint Heads of Pacific Security Forces event in Australia, reinforcing alumni networks in the security sector, and expanding sporting engagements.

Defence has partnered with Papua New Guinea, Fiji, and Vanuatu on significant infrastructure projects that will enhance the security capability of the Pacific. Australian Army engineers will plan, design and deliver the infrastructure in collaboration with local stakeholders and industry. There will be opportunities for local contractors

and consultants to be part of these projects, providing benefits to the local economy. The new infrastructure incorporates environmentally sustainable design principles to maximise the use of resilient and locally available materials.

Fiji’s Blackrock Peacekeeping and Humanitarian Assistance and Disaster Relief Camp project was the first to commence, with early works starting in April 2019 and main works due to start in September 2019. The redevelopment will provide Fiji with world-class infrastructure to support their pre-deployment training, as well as humanitarian assistance and disaster relief capability. The official handover of the main elements of Blackrock camp is planned to coincide with Fiji’s 50th anniversary of independence celebrations in October 2020.

Land and maritime deployments in the Pacific region were a high priority under Joint Task Force 637 for the first half of 2019. The task force visited Papua New Guinea, Vanuatu, Samoa, Tuvalu, Tonga, Fiji, Solomon Islands and New Caledonia, delivering training and other activities ranging from cultural engagement and capacity-building to hydrographic surveys.In the second half of 2019 the group will visit French Polynesia, Timor-Leste and the Federated States of Micronesia. At the same time ADF elements will deploy to help in the protection of fishing industries under Operation SOLANIA and the removal of the explosive remnants of war under Operation RENDER SAFE 2019.

25 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

In May 2019, Defence successfully completed the latest iteration of the Indo-Pacific Endeavour engagement program after nearly three months, 12,500 nautical miles and visits to seven countries.

Joint Task Group Indo-Pacific Endeavour 2019 comprised 1,200 Defence personnel, four ships and a P-8 Poseidon aircraft. The engagement program deepened existing relationships with regional partners, forged new friendships through bilateral and multilateral engagement, provided training and capacity-building, and promoted security and stability in the near region.

Sri Lanka, India, Malaysia, Indonesia, Thailand, Vietnam and Singapore were the focus of the visits, which encompassed a wide range of activities spanning disaster assistance planning, multinational naval manoeuvres and military training serials. For the first time, Indo-Pacific Endeavour incorporated Australian Defence industry through pop-up exhibitions and displays.

While the Indo-Pacific Endeavour 2019 maritime task group was undertaking the final legs of its deployment, other Navy fleet units were engaged in Exercise La Perouse in the north-east Indian Ocean and Exercise Pacific Vanguard in the Pacific Ocean. The diversity of these activities, distributed across a wide region, demonstrates Defence’s readiness to respond if required to a range of contingencies across the region, either as an ADF joint task force or as elements in a combined response with international partners.

In the north-west Indian Ocean, HMAS Toowoomba and the submarine HMAS Collins participated in the French-led multinational Exercise La Perouse, centred on the aircraft carrier FS Charles de Gaulle in a combined task force that also included ships and aircraft from the United States Navy and the Japanese Maritime Self-Defense Force. This exercise demonstrated the true power of international partnerships and the importance of maritime interoperability.

Further east, in the vicinity of Guam, HMAS Melbourne and HMAS Parramatta and the submarine HMAS Farncomb participated in the United States led Exercise Pacific Vanguard, together with the navies of Japan and South Korea, working through a range of complex maritime task group scenarios.

Navy’s newly established Sea Training Group— Defence Cooperation Program had elements supporting the Australian Government’s $2 billion Pacific Maritime Security Program to help introduce the Guardian-Class Patrol Boats into service and through-life sustainment. The first three Guardian-Class Patrol Boats have been handed over to Papua New Guinea, Tuvalu and Tonga. Through this program, the successor of the Pacific Patrol Boat Program, Australia is maintaining what will be a continuous 60-year presence in and commitment to the region.

To increase regional mariner expertise, Navy established the Watch Keeping Support Program to provide on-the-job mariner training to police and military officers from Pacific nations participating in the Pacific Maritime Security Program. This provides an opportunity for these personnel to gain exposure to all aspects of patrol boat operations. As at June 2019, Papua New Guinea, Tuvalu, the Federated States of Micronesia, Kiribati, Fiji, Samoa, Palau and Tonga have participated in the program.

These elements combined have seen a significant contribution to the Indo-Pacific nations over the past year, with more to come in building a region that is strategically secure, economically stable and politically sovereign

26 DEFENCE ANNUAL REPORT 2018-19

Purpose 2: Protect and advance Australia’s strategic interests Defence achieved Purpose 2 in 2018-19 and continued to protect and advance Australia’s strategic interests through the provision of strategic policy, the development, delivery and sustainment of military, intelligence and enabling capabilities, and the promotion of regional and global security and stability as directed by Government.

Defence engaged in the continuous review of the Defence Planning Guidance, Defence’s classified strategy document, to ensure the alignment of strategy, capability and resources. Defence made significant progress in aligning its future force structure to changes in Australia’s strategic environment through the commencement of the 2019 Force Structure plan.

Defence generated and sustained capability required to support defence operations and preparedness objectives. Classified preparedness assessment and reporting indicated this was supported by the Defence Preparedness Assessment Summary, which reported overall that preparedness performance improved during 2018-19.

Defence progressed many of the investments needed to realise future capability requirements. In 2018-19, Defence continued to deliver the Integrated Investment Program’s $200 billion recapitalisation of Australian Defence Force capability. The Government approved 115 capability-related proposals for major equipment, facilities and infrastructure, information and communications technology (ICT) and science technology.

Defence advanced industry engagement policy initiatives to enhance Australia’s industrial base that supports Defence capability. Science and technology research continued to play a major role in supporting Defence and national security operations, as well as the acquisition, sustainment and future-proofing of Defence capability. Evidence of this is the continued implementation of the Defence Innovation Hub, the Next Generation Technologies Fund, the Sovereign Investment Capability Priority Grants program and the Defence Global Competiveness Grants program.

Defence worked to further enhance international engagement by further investing in the Defence Cooperation Program, increasing the number of training positions for international military students in Australia, and raising Defence’s broader international profile. Additional overseas positions were created, notably to enhance Defence Science and Technology cooperation. Defence also regularly meets with allies and partners to discuss national naval shipbuilding issues.

Defence continued to enhance its health and welfare services to Australian Defence Force members and families through support for transitions, casualty and critical incidents, mobility, and community capacity building. The Defence Community Organisation continued to provide a family helpline in addition to regionally based area offices, which allows families to access education assistance, partner employment and support for dependents with special needs. Also, Defence’s community capacity building has provided community centres and grants through the Family Support Funding Program. Defence continued to provide practical support to Australian Defence Force members transitioning from the military, including transition seminars and expos, and post-transition surveys to enhance transition outcomes for members.

Overall Defence continued to build on the reform initiatives of the First Principles Review throughout 2018-19. An updated continuous reform and improvement agenda, ‘Defence 2022—Embedding One Defence’, is in the design stage and will guide enterprise reform initiatives over the next three years.

27 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

PBS programs contributing to Purpose 2

PBS2.1 Strategic Policy and Intelligence

PBS2.2 Defence Executive Support

PBS2.3 Chief Finance Officer

PBS2.4 Joint Capabilities

PBS2.5 Navy Capabilities

PBS2.6 Army Capabilities

PBS2.7 Air Force Capabilities

PBS2.8 Australian Defence Force Headquarters

PBS2.9 Capability Acquisition and Sustainment

PBS2.10 Estate and Infrastructure Group

PBS2.11 Chief Information Officer

PBS2.12 Defence People

PBS2.13 Defence Science and Technology

PBS2.14 Defence Force Superannuation Benefits

PBS2.15 Defence Force Superannuation Nominal Interest

PBS2.16 Housing Assistance

PBS2.17 Other Administered

28 DEFENCE ANNUAL REPORT 2018-19

Intended Result 2.1: Defence develops strategic policy advice that guides the design, development, integration and preparedness of Defence capability as directed by Government.

During the reporting period, Defence continued to develop high-quality policy advice to inform decision-making by ministers and Cabinet. Defence continued to ensure the continuous review of the classified Defence Planning Guidance, and the alignment of strategy, capability and resources. Defence conducted strategic identification of inherent and likely strategic risks across the social, environmental, economic, technological and geopolitical environments.

Defence policy guided the design, development, integration and preparedness of Defence capability as directed by Government through the delivery of:

• the Pacific Step-Up

• the Coexistence in the Woomera Prohibited Area Review

• Defence review of foreign investment review cases in liaison with the Treasury.

A robust and effective internal review has ensured that evolving global trends and geostrategic issues are well considered to support policy considerations. Defence’s contestability function has ensured a high degree of assurance on capability proposals.

Activity Performance criterion Target

2.1a Undertake regular review of strategic risks and mitigations through Defence’s strategic-level documents.

Defence’s strategic policy is updated to reflect changes in Defence strategic risks.

Defence’s strategic review framework supports and manages risk through annual reviews.

Source 2018-19 Defence Corporate Plan Activity 2.1a

Portfolio Budget Statements 2018-19 Program 2.1

Results Achieved

Analysis Defence conducted strategic foresighting through the identification of inherent and likely strategic risks across the social, environmental, economic, technological and geopolitical environments. Reported via the Quarterly Strategic Review and the Annual Strategic Review, these two products are endorsed by the Strategic Command Group and the Defence Strategic Policy Committee. This analysis assisted Defence in identifying future developments, potential disruptions, and evolving global trends supporting agile policy consideration to address gaps and optimise opportunities through the classified Defence Planning Guidance.

29 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Activity Performance criterion Target

2.1b Provide Ministers with quality, relevant and timely strategic policy advice.

Quality, relevant and timely strategic policy advice is available for Government.

Ministers are able to make informed decisions in a timely fashion based on advice received.

Source 2018-19 Defence Corporate Plan Activity 2.1b

Portfolio Budget Statements 2018-19 Program 2.1

Results Achieved

Analysis Defence provided high-quality advice to inform decision-making by ministers and Cabinet, most prominently in relation to the Pacific Step-Up. The Coexistence in the Woomera Prohibited Area Review was delivered in March 2019 to ensure security and economic interests are optimally balanced. Defence provided advice to Treasury on over 700 foreign investment applications. Defence’s contestability function provided a high degree of assurance as to capability, with most contested capability proposals being progressed fully, or with minimal re-work, to Government for approval. Defence continued to advance wide-ranging geostrategic issues, thereby ensuring the continuous review of the classified Defence Planning Guidance, and the alignment of strategy, capability and resources.

Activity Performance criterion Target

2.1c Deliver and implement the 2016 Defence White Paper.

Effective implementation of the 2016 Defence White Paper.

The 2016 Defence White Paper implementation plan activities for 2018-22 are delivered as agreed with Government.

Source 2018-19 Defence Corporate Plan Activity 2.1c

Portfolio Budget Statements 2018-19 Programs 2.4, 2.8

Results Achieved

Analysis Defence continues to implement the 2016 Defence White Paper across strategy, capability and resourcing. Since the White Paper’s release, Government has approved over 300 capability proposals and over $100 billion in capital and sustainment funding. In addition to capability decisions, Defence deepened international engagement, including through Indo-Pacific Endeavour, and supported the Government’s Pacific Step-Up. Work also continued on long-term enablers including ICT modernisation, improved cyber capabilities and estate management. Defence will continue to be responsive to emerging challenges, supported by regular reviews of Defence’s classified strategic planning documents and by the Integrated Investment Program. The Government accepted the final 2016 Defence White Paper Implementation Progress Report in February 2019. This was the second and final implementation report to Government. Defence White Paper implementation reporting has now transitioned to business as usual based on individual implementation activities through Defence’s enterprise governance.

30 DEFENCE ANNUAL REPORT 2018-19

Intended Result 2.2: The generation and sustainment of Defence capabilities achieve the objectives of Government.

During the reporting period, Defence made significant progress in maturing processes for aligning Defence’s future force structure to changes in Australia’s strategic environment, the investments needed to realise Defence’s future capability requirements, and the delivery and sustainment of capability elements. Defence capability delivery groups were able to generate and sustain the capability elements required to support Defence operations and preparedness objectives with the support of enabling service delivery groups, as evidenced by the increase in the Defence capability elements meeting preparedness requirements. While risks and issues in some areas were identified and managed during the reporting period, these did not negatively affect the overall Intended Result.

Activity Performance criterion Target

2.2a Design the future force through management of the capability lifecycle and the Integrated Investment Program.

The future force design is realised through resourcing delivered through the Integrated Investment Program

Future force design development aligns to strategic policy.

Source 2018-19 Defence Corporate Plan Activity 2.2a

Portfolio Budget Statements 2018-19 Program 2.8

Results Achieved

Analysis During the reporting period, Defence continued to refine and employ a process whereby its force structure and the Integrated Investment Program were reviewed at least annually with recommended changes put forward as part of the Bi-annual Integrated Investment Program Update to Government. This ensured that Defence’s force structure and the Integrated Investment Program were iteratively updated to take account of changes in Australia’s strategic environment, potential threats and the pace of technological change. During 2018-19, key activities Defence engaged in included:

• embarking on a fundamental review of Defence’s force structure, known as the 2019 Force Structure Plan

• implementation of the Force Integration Management System

• provision of interoperability and integration advice to support Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance design and Information Warfare

• delivery of a variety of technology forecasting products and events, including Science and Technology Outlook, Human Biotechnologies Military Implications Symposium in October 2018, and the Space Technologies Symposium in March 2019.

• continuous improvement to ensure the Contestability operating model continued to inform strategic capability and investment options through the provision of risk-based contestability advice across the capability life cycle, including the design of the future force.

31 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Activity Performance criterion Target

2.2b Integrate and prepare capability elements, and plan for the effective conduct of joint, combined and interagency operations.

Defence’s maritime, land, air force and joint capabilities are generated and sustained to ensure forces are available to meet Government requirements.

Forces meet preparedness requirements to conduct joint, combined and interagency operations as directed by Government.

Source 2018-19 Defence Corporate Plan Activity 2.2b

Portfolio Budget Statements 2018-19 Program 2.4

Results Achieved

Analysis In 2018-19, interagency preparedness requirements for integrated, whole-of-government operations were met and Joint Force elements were effectively integrated to meet national requirements.

Joint force elements were integrated effectively to meet Defence performance requirements. Specific integration elements were validated through governance and Integration Test and Evaluation activities. These activities included the interoperability activity ‘Bold Quest’ (a US-led, multinational activity designed to provide the opportunity to ensure interoperability with coalition partners) and Joint Force validation through Exercise TALISMAN SABRE 2019. Integration assessments were progressed through the Force Integration Governance arrangements and endorsed through the Joint Force Authority Directives.

Activity Performance criterion Target

2.2c Monitor preparedness for Government-directed operations and national support tasks through the preparedness management system.

Defence’s maritime, land, air force and joint capabilities are generated and sustained to ensure forces are available to meet Government requirements.

Forces meet preparedness requirements to conduct joint, combined and interagency operations as directed by Government.

Source 2018-19 Defence Corporate Plan Activity 2.2c

Portfolio Budget Statements 2018-19 Programs 2.4, 2.5, 2.6, 2.7, 2.8

Results Achieved

Analysis This performance criterion relates to activities undertaken to monitor preparedness of capability elements for Government-directed operations and national support tasks through the preparedness management system. Defence’s preparedness to meet Government direction, in accordance with the Chief of the Defence Force Preparedness Directive, was achieved. Defence preparedness requirements are directed annually, and the Defence Preparedness Assessment Summary measures and reports on Defence’s achievement of those requirements. Classified preparedness reporting is provided quarterly in the Defence Preparedness Assessment Summary and the Preparedness and Concurrency ministerial advice.

Overall preparedness performance improved in the 2018-19 financial year. While the total percentage of Defence capability elements that fully met or partially met requirements remained steady at 98 per cent, the percentage of Defence capability elements that fully met preparedness requirements increased by 9.3 per cent.

32 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criterion Target

2.2d Conduct raise, train and sustain activities to ensure maritime, land and aerospace forces are available to meet Government direction.

Chief of the Defence Force preparedness levels meet Government requirements.

Chief of the Defence Force preparedness levels are achieved as agreed with Government.

Source 2018-19 Defence Corporate Plan Activity 2.2d

Portfolio Budget Statements 2018-19 Programs 2.4, 2.5, 2.6, 2.7, 2.8

Results Achieved

Analysis This performance criterion relates to activities undertaken to raise, train and sustain maritime, land and aerospace capability elements to ensure forces are available to meet Government direction. Overall preparedness performance has improved in the 2018-19 financial year. While the total percentage of Defence capability elements that fully met or partially met requirements has remained steady at 98 per cent, the percentage of Defence capability elements that fully met preparedness requirements has increased by 9.3 per cent during the reporting period.

Classified preparedness assessment and reporting is provided quarterly in the Defence Preparedness Assessment Summary and the Preparedness and Concurrency ministerial advice.

Activities were conducted to ensure naval forces were prepared and available to meet Government-directed activities and the Chief of the Defence Force preparedness levels, within allocated resources and as agreed with Government.

Navy achieved its commitment to generate required forces and continues to improve its warfighting output as reflected by contribution to operations and undertaking key roles in major joint and combined exercises. Integration of new naval capabilities is proceeding according to plan.

Underachievement of Unit Availability Days (as detailed in the Navy Deliverable Tables in the Portfolio Budget Statements) was due to emerging defects and program changes associated with planned maintenance. While targets and programs were achieved, ongoing workforce hollowness continues to place stress on the delivery of capability.

Army met the specified Australian Government preparedness requirements for the Australian Defence Force’s Land Elements. Army maintains a Force Generation System and an Operational Generation System which ensure that Army is Ready Now and Future Ready.

Air Force has complied with the preparedness requirements stipulated in the Chief of the Defence Force Preparedness Directive, and has achieved preparedness levels as agreed with Government. The transition of multiple platform types has been actively managed to ensure no impact on preparedness settings. These transitions have resulted in some variation to flying hours, but have not affected Air Force’s overall ability to achieve preparedness requirements.

Information Warfare Division contributed to the achievement of required preparedness levels through strengthening Defence capability to ensure the Australian Defence Force’s forces have superior situational awareness.

The Australian Defence College contributed to achieving preparedness levels through the delivery of future-focused Joint Professional Military Education and Joint Individual training including ab initio military officer training, strategic leadership and military theory training, joint operational planning, United Nations peacekeeping operations training and other specialist courses.

33 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Activity Performance criterion Target

2.2e Develop, deliver and sustain intelligence capability to meet Government, Defence and partner requirements.

Defence intelligence outputs align with Government intelligence priorities.

Government intelligence priorities are met.

Source 2018-19 Defence Corporate Plan Activity 2.2e

Portfolio Budget Statements 2018-19 Program 2.1

Results Achieved

Analysis Over the 2018-19 period, the Defence intelligence agencies delivered high-quality and timely intelligence services that achieved Government intelligence priorities.

The Defence Intelligence Organisation provided timely, high-quality strategic-level intelligence assessments in support of Australian Defence Force operations, Defence and whole-of-government policy, and capability development.

The Australian Geospatial-Intelligence Organisation met intelligence priorities through delivering accurate and timely geospatial-intelligence activities to Defence, the National Intelligence Community and the Government. This included timely and accurate geospatial-intelligence and hydrographic services in support of military operations and domestic and regional security priorities.

Activity Performance criterion Target

2.2f Manage and sustain the Defence estate to meet Government and Defence requirements by developing and delivering major infrastructure, property and environmental programs.

The management and sustainment of the estate meets the requirements of the Capability Managers.

The Defence Estate Strategy implementation plan is delivered as agreed.

Source 2018-19 Defence Corporate Plan Activity 2.2f

Portfolio Budget Statements 2018-19 Program 2.10

Results Achieved

Analysis Implementation of the Defence Estate Strategy 2016-36 is in its third year, with Defence continuing to deliver the Defence Estate Strategy Implementation Plan satisfactorily.

Development of the Defence Estate Asset Management Framework and of the Estate Engineering Governance and Integrity System has progressed. When matured, they will enhance Defence’s delivery and management of the estate to achieve the objective of an estate that is safe, compliant, and fit for purpose to support Defence capability. Local Industry Capability Plans continue to be a focus to maximise opportunity for local industry involvement. Defence has continued to progress estate projects as part of the Integrated Investment Program, and is working to ensure estate projects are delivered by Australia to support bilaterally agreed intended outcomes for the United States Force Posture Initiative and the Australia-Singapore Military Training Initiative.

34 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criteria Target

2.2g Deliver integrated estate and infrastructure services to enable Defence people, equipment and systems, including base support for the Australian Defence Force.

Service delivery is aligned to capability outputs.

Service delivery meets customer requirements.

Less than 5 per cent service failures impacting operational capability.

An increase in the overall customer satisfaction rate.

Source 2018-19 Defence Corporate Plan Activity 2.2g

Portfolio Budget Statements 2018-19 Program 2.10

Results Achieved

Analysis Estate and infrastructure services were delivered with no service failures being identified that directly affected Defence Operational Capability. Infrastructure risks have been identified within the Defence estate, and work is ongoing to identify specific factors.

Overall customer satisfaction increased by 2 per cent, from 67 per cent to 69 per cent, since the last survey was completed in November 2017. A refreshed Service Delivery Framework is in place with milestones across two years to December 2020, with an aim to improve integration across enablers. Work is ongoing to improve customer satisfaction rates.

Activity Performance criterion Target

2.2h Manage the acquisition and sustainment of Defence materiel equipment to meet Government and Defence requirements.

Capability proposals, once approved by Government, meet agreed schedule and are delivered within agreed costs and scope.

Deliver Government approved acquisition projects to budget, schedule and agreed capability scope.

Source 2018-19 Defence Corporate Plan Activity 2.2h

Portfolio Budget Statements 2018-19 Program 2.9

Results Achieved

Analysis As at 30 June 2019, Defence was managing 205 major and minor acquisition projects worth a total life cycle cost of $132.0 billion. The 2018-19 acquisition projects budget of $8.6 billion was achieved and acquisition projects are being delivered within the agreed parameters of scope and cost. Where schedule slippage has occurred, Capability Acquisition and Sustainment Group are working with the Capability Managers to manage any impacts.

Of the 124 Government approved Major acquisition projects, two projects had issues with capability, schedule or cost which were significant enough to be included in the Projects of Concern report. A further 13 projects were identified as Projects of Interest, with risks associated with capability, schedule or cost that warrant attention from senior executives. Additional information on selected major acquisition projects can be found in the Major Projects Report, which is tabled annually with the Joint Committee of Public Accounts and Audit.

During 2018-19, 35 major and minor acquisition projects closed, seven more than 2017-18. These projects had a final spend over their life of $5.673 billion against a budget of $5.745 billion, 1.2 per cent less than the budget approved by Government. The total underspend is a result of 13 projects underspending by a total of $71.6 million, three projects overspending by a total of $0.02 million and 19 projects coming in on budget. Of the 35 closed projects, four experienced changes to scope and two projects with changes to schedule. Further information on acquisition projects can be found in Appendix D, ‘Supplementary online material’, web tables D.3 to D.5.

35 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Activity Performance criterion Target

2.2i Deliver agreed materiel equipment support to meet operational requirements.

Sustainment products are delivered consistent with Capability Manager requirements.

Deliver sustainment products to meet Capability Manager requirements.

Source 2018-19 Defence Corporate Plan Activity 2.2i

Portfolio Budget Statements 2018-19 Program 2.9

Results Achieved

Analysis As at 30 June 2019, Defence was managing 113 sustainment products with an annual budget of $6.7 billion. Capability Acquisition and Sustainment Group has supported the Capability Managers in achieving preparedness levels and operational outcomes, through the delivery of sustainment of military equipment to agreed availability targets. Detail of sustainment products can be found in Table 3.1.

Of the 113 sustainment products, ten Products of Interest have demonstrated variances in the areas of availability and cost performance that warrant attention and were managed closely. Further information on sustainment products can be found in Appendix D, ‘Supplementary online material’, web - Web table D.1.

36 DEFENCE ANNUAL REPORT 2018-19

Table 3.1: Unit availability days, flying hours and HydroScheme products

Source Deliverable

2017-18

Actual

2018-19

Revised

estimate

2018-19

Actual

Navy 2017-18 2018-19

Portfolio Budget Statements

2018-19 Program 2.5 (unit

availability days1)

18 17 Major Combatants2 3,408.0 3,053.0 3,080.0

21 21 Minor Combatants3 3,880.0 4,098.0 3,601.0

5 5 Amphibious and Afloat

Support4

1,179.0 1,263.0 1,295.0

7 7 Maritime Teams5 2,555.0 2,331.0 2,416.0

7 7 Hydrographic Force6 1,574.0 1,897.0 1,535.0

Navy

Portfolio Budget Statements

2018-19 Program 2.5 (flying

hours)

24 24 MH-60R7 6,059.0 5,920.0 5,380.0

- - MRH-908 - - -

1 1 Laser airborne depth

sounder aircraft9

1,193.0 1,260.0 1,243.0

Army

Portfolio Budget Statements

2018-19 Program 2.6 (rate of

effort—flying hours)

7 10 CH-47F Chinook10 2,000.0 2,200.0 2,057.0

34 34 S-70A-9 Black Hawk11 4,193.6 3,000.0 3,158.0

41 41 B-206B-1 Kiowa12 3,058.6 1,800.0 317.0

22 22 ARH Tiger13 2,867.5 4,700.0 4,205.0

47 47 MRH-90 Taipan14 7,348.7 8,430.0 7,246.0

Notes:

1. A Unit Availability Day is a day when a unit is materially ready and its personnel state and level of competence enables the unit to safely perform tasks in the unit’s normal operating environment, immediately.

2. Major Combatants comprises Adelaide-Class Frigates, Anzac-Class Frigates, Hobart-Class Air Warfare Destroyers and Collins-Class Submarines. HMAS Newcastle was withdrawn from service on 30 June 2019.

3. Minor Combatants comprises Armidale-Class Patrol Boats, Cape-Class Patrol Boats and Coastal Minehunters. Unit Availability Day decrease is due to emerging defects across platforms and extensions to planned maintenance periods.

4. Amphibious and Afloat Support comprises the Oil Tanker, Replenishment Ship, Landing Ship Dock and Landing Helicopter Dock. HMAS Success was withdrawn from service on 29 June 2019.

5. Maritime Teams comprises Clearance Diving, Deployable Geospatial Support and Mobile Meteorological and Oceanographic teams.

6. Hydrographic Force comprises the hydrographic ships, survey motor launches and meteorological and oceanographic centres. The decrease in Unit Availability Days is due to emerging defects across platforms.

7. Flying hours decrease in 2018-19 is due to additional maintenance requirements.

8. Navy is operating six of the 47 MRH-90s; however, Navy flying hours have been included under Army Aviation, as Army is joint capability manager for the aircraft.

9. Laser airborne depth sounder aircraft capability ceases on 6 November 2019.

10. The minor variance in Rate of Effort in 2018-19 for CH-47F can be attributed to routine workforce capacity limitations within the operational unit.

11. The minor variance in Rate of Effort in 2018-19 for S-70A-9 can be attributed to an opportunity to support Special Operations Command Force Generation requirements and was achieved within the existing sustainment funding allocation. The S-70A-9 Fleet achieved planned Rate of Effort for both 2017-18 and 2018-19.

12. B-206B-1 was retired from service on 18 October 2018.

13. The mature ARH capability requirement for aircraft hours has been set at 4,500 for 2019-20 and beyond. The variance in Rate of Effort for this financial year has been attributed to a lower accumulation of hours when embarked at sea in preparation for and during Exercise Indo-Pacific Endeavour. The increase in actual flying hours from 2017-18 to 2018-19 is due to changes in aircraft availability.

14. Achievement of MRH-90 Taipan aircraft hours remains contingent on the provision of aircraft spares.

37 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Source Deliverable

2017-18

Actual

2018-19

Revised

estimate

2018-19

Actual

Air Force

Portfolio Budget Statements

2018-19 Program 2.7 (flying

hours)

62 45 PC-9/A15 14,836.2 16,452.0 13,461.0

8 36 PC-2116 1,224.2 7,000.0 3,984.0

16 12 KA350 King Air17 7,394.0 6,300.0 5,722.0

12 12 C-130J Hercules 6,999.0 7,350.0 7,357.0

8 8 C-17A Globemaster III18 6,972.0 7,000.0 6,549.0

10 10 C-27J Spartan19 2,144.0 5,000.0 2,595.0

5 6 KC-30A MRTT20 5,662.0 5,660.0 4,836.0

2 2 737 BBJ21 1,435.0 1,600.0 1,288.0

3

-

2

2

CL-604 Challenger and

Falcon F7X22

1,737.0 2,403.0 1,716.0

15 2 AP-3C Orion23 4,281.5 1,600.0 1,751.0

8 8 P-8A Poseidon24 2,773.7 4,254.0 4,564.0

6 6 E-7A Wedgetail25 3,018.4 3,600.0 3,199.0

71 69 F/A-18A/B Hornet26 10,375.4 11,200.0 10,129.0

24 24 F/A-18F Super Hornet27 5,183.0 4,050.0 3,540.0

33 33 Hawk 12728 5,782.0 6,500.0 5,938.0

12 11 E/A-18G Growler29 1,089.5 1,900.0 1,654.0

2 14 F-35A Lightning II30 701.9 2,538.0 2,036.0

15. PC-9/A aircraft numbers are decreasing due to transition to the new PC-21 Pilot Training System. This transition resulted in reductions in numbers of instructors and students for PC-9/A courses and therefore variation of actual versus planned flying hours.

16. PC-21 aircraft numbers are increasing due to transition from PC-9A to the new Pilot Training System. Transition management of new aircraft, including prioritising the development of PC-21 training courseware and curriculum, resulted in variation of actual versus planned flying hours for 2018-19.

17. Changes in aircraft availability due to replacement and reconfiguration of some aircraft resulted in reduction in flying hours for 2018-19.

18. Minor variance in rate of effort in 2018-19 is due to changes in demand to support operations.

19. Changes in aircraft availability in 2018-19 are due to serviceability and logistic support issues and a pause in flying associated with the squadron relocating from Richmond to Amberley.

20. Minor variance in rate of effort in 2018-19 is due to changes in demand to support operations.

21. Changes in demand to support Government.

22. Changes in demand to support Government.

23. AP-3C aircraft numbers are decreasing due to transition to the new P-8A capability. Increase in actual rate of effort for 2018-19 is due to increased demand to support operations.

24. Minor variance in actual rate of effort for 2018-19 is due to increase in demand to support operations.

25. Minor variance in actual rate of effort for 2018-19 is due to planned aircraft modifications affecting aircraft availability.

26. F/A-18A/B aircraft numbers are decreasing due to transition to the new F-35A Air Combat capability. Transition management of workforce to F-35A and increased maintenance requirements associated with retiring aircraft resulted in variation of actual versus planned flying hours for 2018-19.

27. Changes in aircraft availability due to reduced exercise tasking.

28. Changes in aircraft availability due to temporary suspension of flying operations following aircraft incident.

29. Changes in aircraft and aircrew availability.

30. F-35A aircraft numbers are increasing due to transition from F/A-18A/B to the new Air Combat capability. Minor variance in actual rate of effort for 2018-19 is due to changes in aircraft availability, including reduced utilisation of Australian aircraft embedded in pooled United States Air Force training program.

38 DEFENCE ANNUAL REPORT 2018-19

Source Deliverable

2017-18

Actual

2018-19

Revised

estimate

2018-19

Actual

Strategic Policy and Intelligence

Portfolio Budget Statements

2018-19 Program 2.1

(Hydrographic Products and

Services31)

Maritime Safety Updates32 1,063 100%33 100%34

Charting Projects35 11 15 15

Nautical Publications36 29 30 2837

Survey Projects38 17 13 13

Australian Hydrographic Office Availability 39 247 247 24640

31. In accordance with the First Principles Review recommendations, the functions of the Australian Hydrographic Office transferred from Navy to the Strategic Policy and Intelligence Group in 2016-17. Information relating to HydroScheme Products and the Chart Production Office component of Hydrographic Force Unit Availability Days are now included in this table. Full details of hydrographic products and services are in HydroScheme.

32. A Maritime Safety Update is an urgent safety-critical revision to nautical charts and publications or other hydrographic products and services.

33. In 2018-19, the PBS target became qualitative, measuring performance against a goal of 100 per cent of Priority 1 Maritime Safety Updates to be applied to products and released within expected time frames.

34. There were 1,595 Maritime Safety Updates processed in 2018-19. Fourteen were finalised outside expected time frames, which is 0.008 per cent. There were no resulting maritime safety incidents.

35. Charting Projects include the charting activities involved in compiling and publishing all paper and electronic charts, or other charting services, for a particular geographic area. A Charting Project is considered complete when all affected products are updated through different charting activities.

36. The Nautical Publications produced are 25 fortnightly Notices to Mariners, three annual publications, and selected additional publications each year. In 2018-19, the three annual publications produced were Australian National Tide Tables; AusTides; and the inaugural Solomon Islands National Tide Tables, which was produced by the Australian Hydrographic Office as the Primary Charting Authority for Solomon Islands.

37. Publication of the Seafarers Handbook for Australian Waters and the Australian Chart and Publication Maintenance Handbook will occur in August 2019.

38. A Survey Project is a major hydrographic survey activity within a particular geographic area.

39. Australian Hydrographic Office Availability is when the Australian Hydrographic Office, as a Defence capability, is materially ready and its personnel state and level of competence enables the Australian Hydrographic Office to provide hydrographic products and services in accordance with the Navigation Act 2012 immediately.

40. The Australian Hydrographic Office was unavailable for one day due to a power outage required for office refurbishment activities.

39 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Activity Performance criterion Target

2.2j Implement the Defence Strategic Workforce Plan 2016-2026 to attract, recruit, develop and retain a highly skilled workforce.

Progress in the delivery of actions from the Defence Strategic Workforce Plan 2016-2026.

Implementation milestones are achieved.

Source 2018-19 Defence Corporate Plan Activity 2.2j

Portfolio Budget Statements 2018-19 Program 2.12

Results Partially achieved

Analysis The Defence Strategic Workforce Plan is a 10-year plan to deliver the workforce identified in the White Paper and the Integrated Investment Program. The Defence Strategic Workforce Plan Implementation Plan includes a number of activities under 10 themed action areas. As at 30 June 2019, 39 per cent of activities were complete; 42 per cent were being implemented and on track; 17 per cent were not yet commenced due to sequencing; and 2 per cent were delayed. Concerted effort continues to attract, recruit, train and retain the right people in the right roles. The partially achieved result pertains to the continuing workforce pressures in critical categories such as cyber, intelligence, engineering, health, and information and communications specialists, as Defence grows its demand in these occupations. There is also hollowness in the mid-career ranks as Navy reshapes the workforce to operate and sustain the new fleet of vessel types. Remediation actions are in place to address these pressures. In 2019-20, Defence will also refresh the Defence Strategic Workforce Plan to respond to changing environmental influences, to enhance the risk analysis framework, to focus more on retention of personnel in critical categories, and to be postured to support anticipated adjustments in Force Structure Planning.

Activity Performance criterion Target

2.2k Deliver and sustain a dependable, secure and integrated ICT capability that ensures a secure and integrated information environment to support Defence business and military operations.

ICT services meet requirements. ICT capabilities are delivered in accordance with the Integrated Investment Program as governed by the Investment Committee.

Source 2018-19 Defence Corporate Plan Activity 2.2k

Portfolio Budget Statements 2018-19 Program 2.11

Results Partially achieved

Analysis Defence is part-way through a major ICT infrastructure transformation program, encompassing the modernisation of desktop, network and data centre services. While individually these programs have delivered a significant upgrade to Defence’s aging infrastructure and systems, the complexity and scale of this work with multiple programs being undertaken concurrently, has resulted in some recent unplanned service disruptions within the Defence Network. These disruptions have not undermined the performance of ADF operations. A comprehensive action plan under the direction of the CIO is underway to remediate these deficiencies.

There is currently a program underway to upgrade and modernise the Middle East Region Communications and Information Systems capability. One element of this, the enhanced Deployable Local Area Network (eDLAN), has not met delivery milestones and is also contributing to the partially effective assessment. Chief Information Officer has initiated a separate eDLAN remediation activity to mitigate risks to ADF operations.

40 DEFENCE ANNUAL REPORT 2018-19

A35-010 and A35-009, F-35A Joint Strike Fighter fly in formation with F/A-18 Hornets.

Contesting complexity

As a portfolio with one of the largest capital investment programs in Australia, Defence’s independent and credible contestability function is essential to its outcomes and reputation.

The Contestability Division, established in response to a recommendation of the 2015 Defence First Principles Review, engages closely with its stakeholders to shape and encourage behaviours across the Department that respectfully challenge the status quo by testing judgments and assumptions. It supports the senior Defence leadership to achieve informed investment leading to enhanced capability by confirming a compelling alignment to strategic guidance, a strong and well-articulated plan to see the program or project to success, and assurance that the Government will realise the expected outcome at the right time.

In addition to the work of the Contestability Division, an increasing number of independent assurance reviews and strong support from

senior committees indicates a developing culture of contestability being just ‘something we do around here’. The Smart Buyer Framework applied at key decision points has been a valuable mechanism for improving contesting behaviours. Identifying strategy drivers, assumptions, constraints, unknowns, threats, opportunities and issues enables rich questions to be asked and creates incentives to find expansive answers. This is not a checklist exercise; it is a thinking exercise.

Defence is proud of the cultural shift that has occurred across the Department since the Contestability Division’s establishment, and will continue to nourish this change.

The Australian public rightly demands that Defence minimise mistakes and achieve the greatest value from our investments and decisions. An entrenched culture of contestability at every level of the organisation contributes to this outcome.

41 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Intended Result 2.3: Defence delivers on the objectives of its enterprise reform program as agreed by Government.

In 2018-19, Defence continued to strongly deliver on its enterprise reform program. Over the last three years Defence has undergone significant transformation implementing the recommendations of the First Principles Review. In the First Principles Review Oversight Board’s final report, it advised that the First Principles Review recommendations are substantially implemented (73 of 75 First Principles Review recommendations completed), achieving a step change in organisational effectiveness and efficiency.

The two remaining First Principles Review recommendations relate to ongoing Capability Acquisition and Sustainment Group reform across the network of Systems Program Offices. Completion is expected by 2023.

Building on the foundation of the First Principles Review, a continuous reform and improvement agenda will be implemented over the next three years, ‘Defence 2022—Embedding One Defence’.

Defence has met all financial and non-financial legislative requirements, and has provided high-quality and timely strategic financial advice to the Government and senior leaders.

Activity Performance criterion Target

2.3a Resource, implement and review Defence’s enterprise reform program.

Business outcomes are improved as part of broader Defence reform.

Defence reform is achieved in accordance with Reform Implementation Plans.

Source 2018-19 Defence Corporate Plan Activity 2.3a

Portfolio Budget Statements 2018-19 Program 2.2

Results Achieved

Analysis The First Principles Review reform program commenced in 2014 and resulted in 75 agreed or agreed in principle recommendations. Seventy-three recommendations have been implemented. Defence has achieved clearer accountability for senior leaders, a stronger strategic centre to drive decision-making, more effective collaboration and partnering with industry and across Government, and an ongoing process to embed the end-to-end Capability Life Cycle. The two remaining First Principles Review recommendations relate to Systems Program Office reform and are expected to be completed by 2023.

At the time of reporting, Enterprise Resource Planning (ERP) program implementation had been delayed due to an Independent Assurance Review process and contractor arrangements for a Systems Integrator. Tranche 1 activities commenced in July 2019 and governance arrangements for ERP have been clarified. Business Process Owners are also actively engaged in reviewing their requirements and change initiatives to support broader organisational transformation activities in advance of ERP implementation.

42 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criterion Target

2.3b Integrate enabling services to deliver a single Defence enterprise.

The Service Delivery system enables Australian Defence Force operations.

Enterprise planning and performance monitoring processes are delivered in line with the One Defence Business Framework, supporting Defence capability.

Enabling services are delivered in accordance with agreed requirements.

Defence meets its non-financial performance management and risk management obligations.

Source 2018-19 Defence Corporate Plan Activity 2.3b

Portfolio Budget Statements 2018-19 Program 2.2

Results Partially achieved

Analysis Defence has made good progress on the integration of enabling services in line with the milestones outlined in the Service Delivery Framework, which was renewed in December 2018. Initiatives such as the co-location of enabling services have shown positive results for Defence customers. This initiative is being expanded across 33 establishments. Customer Satisfaction Survey data has shown improvements in customer experience across the enabling services. ICT instability and network complications resulting from the rollout of large-scale network transformation programs have at times hampered performance, but have not affected military operations.

In the 2018-19 reporting period Defence met its key non-financial performance management and risk management obligations. For example, Defence published the Defence Coporate Plan 2018-19 on time and tabled the Defence Annual Report 2017-18 in accordance with legislative requirements and Commonwealth obligations.

In December 2018 the Enterprise Committee Governance Framework was updated and the number of enterprise committees was reduced from 25 to 11 in early 2019. This has had the effect of strengthening the strategic centre by streamlining and focusing committee activity, strengthening and consolidating decision-making, and improving accountability, transparency and decision-making outcomes for the enterprise. There are now clear lines of sight between committees, standardised processes, escalation thresholds and clarity of decision-making responsibility and accountability.

Activity Performance criterion Target

2.3c Implement the Australian Defence Force Total Workforce Model to support individual and organisational flexibility.

All elements of the Australian Defence Force Total Workforce Model, including Service Category 6 (mature) are implemented.

The Defence Workforce has the agility and skills required to meet current and future demand to support capability.

Source 2018-19 Defence Corporate Plan Activity 2.3c

Portfolio Budget Statements 2018-19 Program 2.12

Results Partially achieved

Analysis The Total Workforce Model has been implemented by Defence and key project milestones have been satisfied. The Total Workforce Model is now embedded in the workforce plans and capability frameworks of Navy, Army and Air Force, which enables greater agility in the utilisation of permanent and Reserve force members in delivering Defence outcomes. The Total Workforce Model is transitioning from an implementation phase to business as usual, where key instruments and processes are refined as part of the maturation of the model. Changes to the Military Superannuation Benefits Scheme Trust Deed will be progressed in 2020 to account for part-time working arrangements for permanent Australian Defence Force members (Service Category 6). These amendments require legislative and systems changes. The maturation of the Total Workforce Model will see opportunities in recruitment, training and integrated workforce design and planning being realised.

43 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Activity Performance criterion Target

2.3d Implement and evaluate Defence’s cultural reform strategy,

Pathway to Change: Evolving Defence Culture 2017-22.

Implementation of the six key cultural priorities through the regular enterprise performance reviews.

Cultural reform priorities are implemented as set out in the Pathway to Change strategy.

Source 2018-19 Defence Corporate Plan Activity 2.3d

Portfolio Budget Statements 2018-19 Program 2.12

Results Partially achieved

Analysis Defence has implemented enterprise initiatives to give effect to the six key cultural reform priorities under Pathway to Change 2017-22. The six priorities are:

• Leadership accountability

• Capability through inclusion

• Ethics and workplace behaviours

• Health, wellness and safety

• Workplace agility and flexibility

• Leading and developing integrated teams.

The six cultural reform priorities are also being implemented through the specific cultural plans of Groups and Services. This includes Navy having launched their cultural program Next Generation Navy, Army reinforcing their commitment to Good Soldiering, and Air Force continuing to focus on their culture program New Horizon.

Defence measures workforce attitudes and behaviours via a number of internal surveys. Results of these surveys indicate there has been a cultural shift in Defence, in that behaviours that were considered acceptable previously are no longer accepted and our leaders understand they are accountable for not just their outcomes but also how those outcomes are achieved. For example the annual YourSay Survey data indicates that 76 per cent of personnel surveyed experience moderate to very high morale in the workplace and 80 per cent are committed to staying at Defence.

Defence has improved its leadership capabilities with an observed cultural shift toward the One Defence Leadership Behaviours. Evaluations of Defence’s leadership development programs consistently indicate a positive impact on the reform efforts, particularly for staff at the Executive Levels. Defence has also improved its performance culture as a result of its revised APS Performance Management Framework, which emphasises quality conversations and recognising and rewarding high performance.

Implementation of this activity is assessed as partially achieved, as achieving a cultural shift is a significant undertaking and requires many years for the change to be fully realised. The work of culture change will continue so we can build an organisation capable of meeting Government objectives and sustaining the trust and commitment of the Australian community and of the people who work in Defence.

44 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criterion Target

2.3e Deliver enterprise resource planning and budget management in accordance with Commonwealth legislation and policy frameworks.

Produce Defence’s Budget, Financial Statements and the annual Defence Management and Finance Plan.

Produced in accordance with agreed statutory timeframes.

Source 2018-19 Defence Corporate Plan Activity 2.3e

Portfolio Budget Statements 2018-19 Program 2.3

Results Achieved

Analysis Defence met all key deliverables in accordance with Commonwealth legislation and policy frameworks, including:

• the Defence Portfolio Budget Submission and Defence Management and Financial Plan

• the Defence Portfolio Budget Statements

• the Defence Portfolio Additional Estimates Statements

• input to the Commonwealth Budget Management System

• Defence’s Financial Statements.

Performance criterion Target

Quality and timeliness of financial advice to the Minister, Secretary and Chief of the Defence Force.

Financial advice meets the Minister, Secretary and Chief of the Defence Force’s requirements.

Source Portfolio Budget Statements 2018-19 Program 2.3

Results Achieved

Analysis Defence provided professional and timely written and verbal strategic financial advice to the Minister for Defence, the Secretary and the Chief of the Defence Force. This included:

• ministerial and Cabinet submissions

• responses to parliamentary Questions on Notice

• support to Senate Estimates and other public accountability activities

• internal reporting and briefing.

All financial information was supported by reliable and validated data sources in Defence’s financial systems, meeting the requirements of the Minister, the Secretary and the Chief of the Defence Force.

Performance criterion Target

Status of Financial Statements. Financial Statements are

unqualified.

Source Portfolio Budget Statements 2018-19 Program 2.3

Results Achieved

Analysis Defence produced audited Defence Financial Statements for publication in the Defence Annual Report. The Australian National Audit Office determined that the Defence financial statements:

• complied with Australian Accounting Standards—Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015

• presented fairly the financial position of Defence as at 30 June 2019 and its financial performance and cash flows for the year.

45 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Intended Result 2.4: Defence’s capability and capacity is enabled by supporting engagement and innovation with Australian industry.

Defence has advanced industry engagement policy initiatives to enhance the Australian industrial base that supports Defence capability. During 2018-19, the Defence Industry Skilling and Science, Technology, Engineering and Mathematics Strategy and the Defence Policy for Industry Participation were launched.

Science and technology research continues to play a major role in supporting Defence and national security operations, as well as the acquisition, sustainment and future-proofing of Defence capability.

Enabling Defence’s capability and capacity through industry is evidenced through the continued implementation of:

• the Defence Innovation Hub

• the Next Generation Technologies Fund

• the Sovereign Investment Capability Priority Grants program

• the Defence Global Competiveness Grants program.

Activity Performance criterion Target

2.4a Engage with industry to enhance the Australian industrial base that supports Defence capability.

The objectives of the Defence Industry Policy Statement are met.

Delivery of the outcomes of the Defence Industry Policy Statement.

Source 2018-19 Defence Corporate Plan Activity 2.4a

Portfolio Budget Statements 2018-19 Program 2.1

Results Achieved

Analysis Defence has advanced industry engagement policy initiatives to enhance the Australian industrial base that supports Defence capability. During 2018-19, the Defence Industry Skilling and Science, Technology, Engineering and Mathematics Strategy and the Defence Policy for Industry Participation were launched. The Sovereign Investment Capability Priority Grants program commenced, awarding 28 grants to Australian businesses, and the Defence Global Competitiveness Grants program was launched and invested $1.5 million in nine companies. The Defence Innovation Hub continued to invest in developing Australian technologies. The Hub awarded 37 innovation contracts, with an investment value of more than $75.2 million, and built its portfolio of innovation projects to over $130 million.

46 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criteria Target

2.4b Conduct applied research focused on supporting Defence and national security operations, sustaining and enhancing current capability, and supporting the development and acquisition of future capability.

Defence’s strategic research builds understanding of future Design capability.

Defence capability is enhanced by collaborative research partnerships with Publicly Funded Research Agencies, academia, industry, and international research agencies.

Science and technology research supports Defence operations, sustainment and enhancement of current capability, and the development and acquisition of future capability.

Strategic research activities are aligned with Integrated Investment Program priorities.

Collaborative activities with academia, industry, and allied defence research agencies are aligned to 2016 Defence White Paper and Defence Industry Policy Statement priorities.

Science and technology activities are balanced to support Defence operational and capability priorities in accordance with 2016 Defence White Paper.

Source 2018-19 Defence Corporate Plan Activity 2.4b

Portfolio Budget Statements 2018-19 Program 2.13

Results Achieved

Analysis Science and technology research continues to play a major role in supporting Defence and national security operations, as well as the acquisition, sustainment and future-proofing of Defence capability. The annual Defence science and technology investment process, coupled with systematic stakeholder feedback, ensures Defence science and technology investment is aligned to the department’s highest priorities. Strategic research activities (including those initiated under the Next Generation Technologies Fund) are delivering high-impact research to support Defence acquisitions and generating leap-ahead Defence capabilities. The Defence science and technology supply chain has expanded to include 33 Australian universities, 12 strategic industry alliances and key international government research partnerships.

47 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Intended Result 2.5: Australia’s reputation as a strategic partner is enhanced by international engagement.

Activity Performance criterion Target

2.5a Conduct international engagement to enhance Australia’s strategic position as directed by Government in accordance with the 2016 Defence White Paper.

Defence has met its commitments to Government and the intention of the Defence International Engagement Policy.

Short-term (2018-2022) government objectives are met including those outlined in the Defence International Engagement Policy.

Source 2018-19 Defence Corporate Plan Activity 2.5a

Portfolio Budget Statements 2018-19 Program 2.1

Results Achieved

Analysis Throughout 2018-19 Defence has worked to further integrate international engagement as a core function across the department. Defence has expanded investment in the Defence Cooperation Program, increased training positions for international military students in Australia, and enhanced its broader international activity profile as part of the Pacific Step-Up. Defence’s operational application of the Women, Peace and Security Agenda was successfully completed in December 2018. Additional overseas positions have been created in Singapore and Korea which are focused on enhancing Defence collaboration in science and technology. Defence has also regularly engaged with allies and partners to discuss naval shipbuilding.

48 DEFENCE ANNUAL REPORT 2018-19

Helicopter structural fatigue testing

Defence scientists are maturing the technologies required to conduct full-scale structural fatigue testing of helicopter airframes, potentially transforming the way helicopters are certified and structural integrity is managed.

While full-scale durability tests are routinely conducted for fixed-wing aircraft, the complex, high-frequency flight loading of helicopters has been particularly challenging to replicate in the laboratory.

Defence Science and Technology (DST) has commissioned a test rig and control systems that will be used to develop technologies for the rapid application of complex flight loads. Once the technologies are mature, they will be trialled on a full-scale retired Bromeo Seahawk MH-60 helicopter for a full technical demonstration.

The aim of the research is to mature several technologies to the point where full-scale helicopter airframe durability testing is a viable option for fleet sustainment managers and new helicopter designs.

The benefits of full-scale fatigue testing of helicopters are significant. In the short term, it could provide the certification basis to extend the life of United States and Australian Romeo MH-60R fleets. In the longer term, it could influence how structural integrity is managed for next-generation rotorcraft.

The program is a collaboration between Australia and the United States, with DST and the United States Naval Air System Command providing the technical expertise; the United States Navy providing the test article; and the MH-60R Program Office in Defence’s Capability and Sustainment Group providing additional support.

Gerry Payet, Mechanical Technician (QinetiQ); Quang Nguyen, Lead System Engineer; and Beau

Krieg, Science Team Lead Spectrum Development preparing the simulated helicopter rig for cycling.

49 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Intended Result 2.6: Defence provides appropriate health and welfare services.

During the reporting period Defence continued to deliver services to support the health and wellbeing of Australian Defence Force personnel and veterans. Health and wellbeing services were planned and delivered as a collaborative effort between Joint Health Command, Defence People Group, Navy, Army, Air Force and the Department of Veterans’ Affairs.

In 2018-19, the Services continued to maintain health capabilities to support their exercises and operations. The Services also contributed to the delivery of health services by providing uniformed Health staff for Garrison Health and Combat Health Support.

The Defence Work Health and Safety Strategy 2017-22 was a key priority in 2018-19. The strategy and supporting implementation plan continue to embed work health and safety into our thinking and behaviour as well as in all Defence business and management systems. The initiatives include:

• Senior Officer Safety Responsibilities

• Work Health and Safety Expected Behaviours

• Defence Work Health and Safety Scorecard.

Defence has long recognised that the mental health and wellbeing of its workforce is critical to Defence capability. As of 1 April 2019, the Periodic Mental Health Screen has been implemented in all Harrison Health Centres. Defence also partnered with the Department of Veterans’ Affairs, Open Arms—Veterans and Families Counselling, and Phoenix Australia to run Project RESTORE, a clinical trial of a treatment for post-traumatic stress disorder known as Prolonged Exposure. The recruitment of trial participants will conclude at the end of 2019 and a final evaluation of outcomes will be delivered by the end of 2020. Defence has continued to partner with Beyond Blue to provide the NewAccess Defence service for all its employees. NewAccess is a free and confidential service that provides sessions with a specifically trained NewAccess Defence Coach to help tackle day-to-day pressures.

Activity Performance criterion Target

2.6a Deliver health support to meet the requirements of the Australian Defence Force.

Quality of health services delivered to Australian Defence Force members and families.

Delivery of health services meets standards.

Source 2018-19 Defence Corporate Plan Activity 2.6a

Portfolio Budget Statements 2018-19 Program 2.4

Results Achieved

Analysis There was an improvement in health services quality measures, including a 24 per cent decrease in complaints and a 12.5 per cent decrease in clinical incidents. The annual Joint Health Command customer satisfaction survey reported a slight increase in survey participants who indicated they ‘agree’ or ‘strongly agree’ that the quality of health care was excellent. Garrison Health Clinical Standards and audit processes continued to refine and improve service delivery.

Joint Health Command continues to improve the health aspects of transition from service—for example, ensuring that all Australian Defence Force members who are medically transitioned from service are provided with a positive handover to the Department of Veterans’ Affairs and, if necessary, the civilian health system.

Joint Health Command conducted a Family Sensitive Practice pilot in late 2018, which encouraged health practitioners to engage Australian Defence Force members in a discussion about their family needs and to refer them to support as required. The pilot was successful and will now be implemented across all Australian Defence Force health facilities by the end of 2019.

There was an overall increase of 1,493 in Australian Defence Force Family Health Program registrations.

50 DEFENCE ANNUAL REPORT 2018-19

Activity Performance criterion Target

2.6b Deliver welfare services to agreed standards to meet the requirements of the Australian Defence Force.

Quality of welfare services delivered to Defence personnel and families.

Delivery of welfare services meets standards.

Source 2018-19 Defence Corporate Plan Activity 2.6b

Portfolio Budget Statements 2018-19 Program 2.12

Results Achieved

Analysis Defence delivered a range of support services and measures of practical assistance to members and their families. The Personalised Career and Employment Program was introduced in January 2019, to provide intensive support and employment pathways to at-risk members who are least likely to secure employment without additional support. Access to the two-day Job Search Preparation program is available to all serving Australian Defence Force members at any time in their career. The Transition for Employment Program, launched in July 2018, offers tailored assistance to gain civilian employment to Australian Defence Force members with complex medical conditions. The Career Transition Assistance Scheme continues to facilitate access to training and financial support to prepare members for employment post transition from permanent military service.

The outcomes of a member’s transition are measured quarterly through the post-transition survey. Defence continues to deliver 30 Australian Defence Force Member and Family Transition Seminars nationally. The new one-day expo-style seminar is reporting high levels of attendance, returning an average of 95 per cent satisfaction rate per scheduled offering.

Activity Performance criterion Target

2.6c Deliver initiatives to improve the delivery of welfare services to current and former members of the Australian Defence Force.

Australian Defence Force members and families are supported through the delivery of welfare services and support services.

Support is delivered in a timely and professional manner.

Source 2018-19 Defence Corporate Plan Activity 2.6c

Portfolio Budget Statements 2018-19 Program 2.12

Results Achieved

Analysis Defence continues to provide a range of support services and measures of practical assistance to members and families including critical incident and casualty support; mobility support such as education assistance for children, partner employment assistance and support for members with dependants with special needs; absence from home support; and community capacity building with community centres and grants through the Family Support Funding Program.

Defence’s 24/7 Defence Family Helpline provides information, crisis response and referral to regionally based Defence Community Organisation area offices who are able to provide brief interventions and a range of support services.

51 CHAPTER 3 | ANNUAL PERFORMANCE STATEMENTS

Administered PBS programs

Performance criterion Target

Provision of timely payments to the Commonwealth Superannuation Corporation and quality administration of Defence Force Retirement Benefits, Defence Force Retirement Death Benefits, Military Superannuation Benefits Scheme and Australian Defence Force Super employer and member contributions.

Payments are provided within agreed timeframes to the Commonwealth Superannuation Corporation and quality administration of Defence Force Retirement Benefits, Defence Force Retirement Death Benefits, Military Superannuation Benefits Scheme and Australian Defence Force Super employer and member contributions.

Source Portfolio Budget Statements 2018-19 Program 2.14

Results Achieved

Analysis Employer and member contributions to Defence Force Retirement Benefits, Defence Force Retirement Death Benefit and Military Superannuation Benefits Scheme were paid on time to the Commonwealth Superannuation Corporation throughout 2018-19.

The related accounting entries were correctly recorded and reconciled in compliance with the monthly financial reporting timetable set by Defence.

Performance criterion Target

Provide quality administration services for Defence Force Retirement Benefits, Defence Force Retirement Death Benefits, Military Superannuation Benefits Scheme and Australian Defence Force Cover nominal interest transactions.

Administration services are provided as agreed to Defence Force Retirement Benefits, Defence Force Retirement Death Benefits, Military Superannuation Benefits Scheme and Australian Defence Force Cover nominal interest transactions.

Source Portfolio Budget Statements 2018-19 Program 2.15

Results Achieved

Analysis The determination of the nominal interest transactions for Defence Force Retirement Benefits, Defence Force Retirement Death Benefits and Military Superannuation Benefits Scheme were correctly made and recorded in compliance with the monthly financial reporting timetable set by Defence.

Performance criterion Target

Eligible Australian Defence Force members continue to access the scheme. (Defence Home Ownership Assistance Scheme) The uptake of new subsidised loans is maintained at current levels.

Source Portfolio Budget Statements 2018-19 Program 2.16

Results Achieved

Analysis Interest in the Defence Home Ownership Assistance Scheme continues to remain positive with Australian Defence Force members. The number of Defence Home Ownership Assistance Scheme applications and subsidised loans was consistent with the previous year’s activity levels. During the financial year the Department of Veterans’ Affairs processed 5,608 Defence Home Ownership Assistance Scheme applications, and 3,286 Defence Home Ownership Assistance Scheme subsidy payments were commenced.

52 DEFENCE ANNUAL REPORT 2018-19

Performance criterion Target

Eligible Australian Defence Force members are offered competitive home loan interest rates by the home loan provider.

Interest rates offered are equal to or lower than standard product offerings.

Source Portfolio Budget Statements 2018-19 Program 2.16

Results Achieved

Analysis The three appointed home loan providers on the Defence Home Ownership Assistance Scheme panel are providing competitive in terest rates in accordance with their obligations under their respective deeds.

Performance criterion Target

Account and report ‘Other Administered’. Accounting and reporting is

accurate.

Source Portfolio Budget Statements 2018-19 Program 2.17

Results Achieved

Analysis Transactions relating to ‘Other Administered’ were correctly determined and recorded in compliance with the monthly financial reporting timetable set by Defence. ‘Other Administered’ comprises interest on overdue accounts, interest on operational bank accounts, interest on loans to build accommodation, dividends and tax equalisation receipts from Defence Housing Australia, and royalty receipts.

53 CHAPTER 4 | FINANCIAL SUMMARY

FINANCIAL SUMMARY4

Australian Army officer from the 6th Battalion, Royal Australian Regiment, disembarks a United States Marine Corps MV-22 Osprey

aircraft during an urban assault on Raspberry Creek, Shoalwater Bay Training Area.

54 DEFENCE ANNUAL REPORT 2018-19

Summary Defence closely manages its performance against its cash based budget throughout the year. The cash based budget is the primary focus of the organisation and it is on this basis that Defence judges its financial performance. The final cash outcome for 2018-19 was an underspend of $30 million (excluding hand back of $216 million for No Win No Loss Operations) compared to the cash budget. This cash surplus represents a variance of 0.8 per cent against our cash based appropriation of $36,601 million and demonstrates the close scrutiny Defence has placed on its financial and budget management during 2018-19. In the 2018-19 accrual based financial statements, Defence had an operating surplus of $358 million, of which $176 million relates to gains from the contribution made by Singapore to Defence with respect to the Australia-Singapore Military Training Initiative (ASTMI) agreement. The remaining difference is attributable to the net impact of various non-cash gains and losses recognised in the accrual based financial statements, including revisions of estimates for provisions.

Table 4.1 contains the Defence resource statement for 2018-19. Expenses by outcomes are detailed in tables 4.2 to 4.5, while the cost of operations is shown in tables 4.6 and 4.7.

Table 4.1: Defence resource statement, 2018-19

Actual available appropriation for 2018-19

$’000

Payments made 2018-19 $’000

Balance remaining 2018-19 $’000

ORDINARY ANNUAL SERVICES

Prior year departmental appropriation available 25,3201 25,233 87

Departmental appropriation 32,637,7481 32,380,4192 257,3292,3

Receipts retained under PGPA Act—section 74 1,264,492 1,264,492 -

Total departmental outputs 33,927,560 33,670,144 257,416

Total ordinary annual services 33,927,560 33,670,144

OTHER SERVICES

Departmental non-operating

Prior year equity injection available 620,000 620,000 -

Equity injection 3,343,4821 3,343,482 -

Total departmental non-operating 3,963,482 3,963,482 -

Total other services 3,963,482 3,963,482

Total available annual appropriation and payments 37,891,042 37,633,626

SPECIAL APPROPRIATIONS

Special appropriations limited by criteria/entitlement

Defence Force Retirement Benefits Act 1948 Part 1, s.15D; and VIC, s.82ZJ - 40,648 -

Defence Force Retirement and Death Benefits Act 1973 Part XII, s.125 - 1,601,998 -

Military Superannuation and Benefits Act 1991 Part V, s.17 - 1,014,094 -

Defence Force (Home Loan Assistance) Act 1990 Part IV, s.38 - 331 -

Australian Defence Force Cover Act 2015 - 5,610 -

Defence Home Ownership Assistance Scheme Act 2008 Part VI, s.84 - 121,905 -

Other administered - 55 -

Total special appropriations - 2,784,641 -

Special accounts

Opening balance 113,311 - -

Non-appropriation receipts to special accounts 268,020 - -

Payments made - 265,873 -

Total special accounts 381,331 265,873 115,458

Total resourcing and payments 38,272,373 40,684,140 -

Notes:

1. Appropriation amounts disclosed exclude amounts withheld under section 51 of the PGPA Act or appropriation acts which have been repealed.

2. Includes No Win No Loss amounts in relation to Operations of $215.6 million.

3. Payments made and balance remaining have been adjusted to incorporate assets held in trust which are not included in the Department’s financial statements.

55 CHAPTER 4 | FINANCIAL SUMMARY

Expenses by outcomes Table 4.2: Total cost of Defence outcomes and programs on an accrual basis, 2018-19

2018-19 budget estimate1 $’000

2018-19 revised estimate2 $’000

2018-19 actual result $’000

Variation $’000

Variation %

Outcome 1: Defend Australia and its national interests through the conduct of operations and provision of support for the Australian community and civilian authorities in accordance with Government direction

Net cost of service for Outcome 1 791,401 740,842 643,491 (97,351) (13)

Outcome 2: Protect and advance Australia’s strategic interests through the provision of strategic policy, the development, delivery and sustainment of military, intelligence and enabling capabilities, and the promotion of regional and global security and stability as directed by Government

Departmental net cost of service 31,679,805 31,931,039 31,524,284 (406,755) (1)

Administered net cost of service 5,470,129 7,007,429 7,017,634 10,205 0

Net cost of service for Outcome 2 37,149,934 38,938,468 38,541,918 (396,550) (1)

Net cost of service for Defence outcomes

Departmental net cost of service 32,471,206 32,671,881 32,167,775 (504,106) (2)

Administered net cost of service 5,470,129 7,007,429 7,017,634 10,205 0

Total cost of Defence outcomes 37,941,335 39,679,310 39,185,409 (493,901) (1)

Notes:

1. As published in the Portfolio Budget Statements 2018-19.

2. As published in the Portfolio Budget Statements 2019-20.

Royal Australian Air Force airwoman, Sergeant Danina Johnson, from No. 10 Squadron, operates camera equipment onboard an AP-3C Orion Maritime Patrol Aircraft during a surveillance

mission as part of Operation ARGOS.

56 DEFENCE ANNUAL REPORT 2018-19

Table 4.3: Overall cost to Government of Defence outcomes (departmental and administered), 2018-19

Outcome 1 $’000 Outcome 2 $’000

Total $’000

DEPARTMENTAL

Expenses

Employees 84,513 11,837,481 11,921,994

Suppliers 585,179 13,448,148 14,033,327

Grants - 149,376 149,376

Depreciation and amortisation - 6,063,549 6,063,549

Finance cost - 111,272 111,272

Write-down of assets and impairment of assets - 865,338 865,338

Net foreign exchange losses - 36,665 36,665

Net losses from sale of assets - 39,754 39,754

Other expenses 11 241,189 241,200

Total expenses 669,703 32,792,772 33,462,475

Income

Revenue

Goods and services 26,212 513,442 539,654

Rental income - 6,544 6,544

Other revenue - 24,561 24,561

Total revenue 26,212 544,547 570,759

Gains

Reversals of previous asset writedowns - 368,665 368,665

Other gains - 355,276 355,276

Total gains - 723,941 723,941

Total income 26,212 1,268,488 1,294,700

Net cost of departmental outcomes 643,491 31,524,284 32,167,775

ADMINISTERED

Expenses - 8,528,929 8,528,929

Revenue - 1,511,295 1,511,295

Net cost of administered outcomes - 7,017,634 7,017,634

Total departmental and administered outcomes 643,491 38,541,918 39,185,409

57 CHAPTER 4 | FINANCIAL SUMMARY

Table 4.4: Total cost of Defence Outcome 1

2018-19 budget estimate1 $’000

2018-19 revised estimate2 $’000

2018-19 actual result $’000

Variation $’000 Variation %

Program 1.1—Operations Contributing to the Security of the Immediate Neighbourhood

Revenues from other sources - - - - -

Departmental outputs 41,196 41,123 29,890 (11,232) (27)

Program 1.2—Operations Supporting Wider Interests

Revenues from other sources 21,446 21,633 26,158 4,525 21

Departmental outputs 696,791 667,312 551,880 (115,432) (17)

Program 1.3—Defence Contribution to National Support Tasks in Australia

Revenues from other sources - - 54 54 -

Departmental outputs 53,414 32,407 61,721 29,314 90

Total resourcing

Total departmental outputs 791,401 740,842 643,491 (97,351) (13)

Total departmental revenue from other sources 21,446 21,633 26,212 4,579 21

Total resources for Outcome 1 812,847 762,475 669,703 (92,772) (12)

Notes: This table excludes capital payments for outcomes.

1. As published in the Portfolio Budget Statements 2018-19, Table 11.

2. As published in the Portfolio Budget Statements 2019-20, Table 10.

Table 4.5: Total budgeted resources available for Outcome 2

2018-19 budget estimate1 $’000

2018-19 revised estimate2 $’000

2018-19 actual result3 $’000

Variation $’000

Variation %

Program 2.1—Strategic Policy and Intelligence

Revenue from other sources 7,125 5,029 4,150 (879) (17)

Departmental outputs 759,193 697,705 652,667 (45,038) (6)

Program 2.2—Defence Executive Support

Revenue from other sources 34,899 34,912 30,930 (3,982) (11)

Departmental outputs 214,908 252,772 304,809 52,037 21

Program 2.3—Defence Finance

Revenue from other sources 6,259 17,558 128,917 111,3594 634

Departmental outputs 145,309 169,304 42,790 (126,514)4 (75)

Program 2.4—Joint Capabilities

Revenue from other sources 169,126 171,769 269,748 97,979 57

Departmental outputs 1,503,836 1,851,943 1,877,015 25,072 1

Program 2.5—Navy Capabilities

Revenue from other sources 61,400 61,570 10,935 (50,635) (82)

Departmental outputs 6,286,506 6,296,957 6,282,467 (14,490) (0)

Program 2.6—Army Capabilities

Revenue from other sources 34,850 33,534 24,483 (9,051) (27)

Departmental outputs 7,500,795 7,545,104 7,490,033 (55,071) (1)

Program 2.7—Air Force Capabilities

Revenue from other sources 56,060 48,461 42,725 (5,736) (12)

Departmental outputs 7,585,556 7,057,159 6,821,708 (235,451)5 (3)

58 DEFENCE ANNUAL REPORT 2018-19

2018-19 budget estimate1 $’000

2018-19 revised estimate2 $’000

2018-19 actual result3 $’000

Variation $’000

Variation %

Program 2.8—Australian Defence Force Headquarters

Revenue from other sources 181 327 336 9 3

Departmental outputs 104,530 93,782 121,251 27,469 29

Program 2.9—Capability Acquisition and Sustainment

Revenue from other sources 2,727 17,563 16,107 (1,456) (8)

Departmental outputs 529,770 630,716 623,574 (7,142) (1)

Program 2.10—Estate and Infrastructure

Revenue from other sources 366,039 364,675 697,879 333,204 91

Departmental outputs 4,651,537 4,721,221 4,550,457 (170,764) (4)

Program 2.11—Chief Information Officer

Revenue from other sources 42,757 43,424 36,086 (7,338) (17)

Departmental outputs 1,385,936 1,647,186 1,766,755 119,569 7

Program 2.12—Defence People

Revenue from other sources - 4 2,171 2,167 54,175

Departmental outputs 565,001 498,438 505,525 7,087 1

Program 2.13—Defence Science and Technology

Revenue from other sources 5,270 4,850 4,021 (829) (17)

Departmental outputs 446,928 468,754 485,233 16,479 4

Program 2.14—Defence Force Superannuation Benefits

Defence Force Retirement Benefits Act 1948 Part 1, s.15D; and VIC, s.82ZJ(1) - - - - -

Defence Force Retirements and Death Benefits Act 1973 Part XII, s.125(3) 79,838 114,434 114,000 (434) (0)

Military Superannuation and Benefits Act 1991 Part V, s.17 2,183,097 3,916,892 3,972,702 55,810 1

Australian Defence Force Cover Act 2015 151,020 311,921 304,300 (7,621) (2)

Total administered expenses 2,413,955 4,343,247 4,391,002 47,755 1

Administered revenue from other sources 1,165,712 1,342,307 1,388,079 45,772 3

Total Program 2.14 1,248,243 3,000,940 3,002,923 1,983 0

Program 2.15—Defence Force Superannuation Nominal Interest

Defence Force Retirement Benefits Act 1948 Part 1, s.15D; and VIC, s.82ZJ(1) 18,816 12,564 12,600 36 0

Defence Force Retirements and Death Benefits Act 1973 Part XII, s.125(3) 1,651,709 1,364,436 1,364,000 (436) 0

Military Superannuation and Benefits Act 1991 Part V, s.17 2,572,762 2,631,265 2,629,000 (2,265) 0

Australian Defence Force Cover Act 2015 8,119 12,054 12,000 (54) (0)

Total administered expenses 4,251,406 4,020,319 4,017,600 (2,719) 0

Administered revenue from other sources - - - - -

Total Program 2.15 4,251,406 4,020,319 4,017,600 (2,719) 0

59 CHAPTER 4 | FINANCIAL SUMMARY

2018-19 budget estimate1 $’000

2018-19 revised estimate2 $’000

2018-19 actual result3 $’000

Variation $’000

Variation %

Program 2.16—Housing Assistance

Defence Force (Home Loan Assistance) Act 1990 Part IV, s.38 386 386 5 (381) (99)

Defence Home Ownership Assistance Scheme Act 2008 Part VI, s.84 116,025 113,605 120,320 6,715 6

Total administered expenses 116,411 113,991 120,325 6,334 6

Administered revenue from other sources 16,237 16,237 16,968 731 5

Total Program 2.16 100,174 97,754 103,357 5,603 6

Program 2.17—Other Administered

Expenses - - 2 2 0

Administered revenue from other sources 129,694 111,584 106,248 (5,336) (5)

Total Program 2.17 -129,694 -111,584 (106,246) 5,338 (5)

Total resourcing

Total departmental outputs 31,679,805 31,931,039 31,524,284 (406,755) (1)

Total administered 5,470,129 7,007,429 7,017,634 10,205 0

Total departmental revenue from other sources 786,693 803,677 1,268,488 464,8116 58

Total administered revenue from other sources 1,311,643 1,470,128 1,511,295 41,167 3

Prior year appropriation - 620,000 620,000 - -

Equity injection 3,060,443 3,406,065 3,343,482 (62,583) (2)

Total resources for Outcome 2 42,308,713 45,238,338 45,285,183 46,845 0

Notes: This table excludes capital payments for outcomes.

1. As published in the Portfolio Budget Statements 2018-19, Table 15.

2. As published in the Portfolio Budget Statements 2019-20, Table 14.

3. At the program level, departmental revenues from other sources include minor reclassifications from expenses.

4. The higher than anticipated revenue from other sources and associated lower departmental outputs relates to first found/price adjustments to assets and inventory that could not be directly attributed to a specific program.

5. Lower than anticipated outputs are primarily due to lower than expected supplier and depreciation expenses.

6. Higher than anticipated total departmental revenue from other sources is primarily due to the recognition of other gains associated with the Australia-Singapore Military Training Initiative (ASMTI) agreement and revisions in estimates for decontamination and decommissioning provisions.

60 DEFENCE ANNUAL REPORT 2018-19

Unconquered strength, honour and optimism on display at the Invictus Games

The 2018 Invictus Games, held in Sydney, won the hearts and minds of the nation as almost 500 wounded, injured and ill current and former serving defence personnel from 18 nations showcased their fighting spirit across eight days of spirited but friendly competition from 20 to 27 October.

The event highlighted the healing power of sport and demonstrated the very best of human spirit on and off the sporting field. Invictus Games 2018 was more than a sporting event—it changed lives. The competitors were tested and challenged but not overcome. They proved that they can reclaim their future by embracing each other and with the support of their families and friends.

Sydney welcomed more than 1,000 of the competitors’ family members and friends from the 18 nations to recognise the crucial role they play in the recovery and rehabilitation of their loved

ones. Among the cheering spectators inspired by the courage and camaraderie on display were over 10,000 school students. Millions followed the competitors’ journeys through the media.

The Patron of the Invictus Games Foundation, HRH The Duke of Sussex, reflected on the Invictus spirit as a symbol of strength, honour and optimism for a new generation.

Research conducted following Invictus Games 2018 indicated that seven out of every 10 Australians want to play a role in supporting veterans, 87 per cent of all adults nationally were aware of the Invictus Games, and 90 per cent agreed it has the power to make a significant difference to those involved.

An outstanding community of partners across government and the commercial, corporate and not-for-profit sectors came together to support the successful delivery of the event.

The next Invictus Games will be staged in The Hague, the Netherlands, in 2020.

Australian Invictus Games wheelchair rugby players Jamie Tanner and Peter Arbuckle celebrate beating the United

Kingdom during the wheelchair rugby final at Sydney Olympic Park.

61 CHAPTER 4 | FINANCIAL SUMMARY

Cost of operations Table 4.6: Net additional cost of operations from 1999-2000 to 2022-23

1999- 2000 to 2017-18 actual

result $m

2018-19 actual result $m

2019-20 Budget estimate1 $m

2020-21 forward estimate1 $m

2021-22 forward estimate1 $m

2022-23 forward estimate1 $m

Total $m

Operation MANITOU 180.2 42.1 72.4 23.9 25.8 - 344.4

Operation ACCORDION 678.4 183.5 215.8 28.8 21.0 - 1,127.5

Operation HIGHROAD 439.7 86.7 86.8 1.1 0.0 - 614.3

Operation RESOLUTE2 331.9 65.4 59.3 - - - 456.6

Operation OKRA 1,120.1 199.0 269.3 30.8 19.6 - 1,638.8

Operation AUGURY— PHILIPPINES

12.5 7.5 - - - - 20.0

Defence support to the 2018 Commonwealth Games 7.7 0.5 - - - - 8.2

Total net additional costs 2,770.5 584.7 703.6 84.6 66.4 - 4,209.8

Sources of funding for operations

Government supplementation 2,762.8 576.7 703.6 84.6 66.4 - 4,201.6

Department of Defence (absorbed)

7.7 8.0 - - - - 8.2

Total cost 2,770.5 584.7 703.6 84.6 66.4 - 4,209.8

Notes: This table reflects ongoing and new operations funded under No Win, No Loss arrangements.

1. As published in the Portfolio Budget Statements 2019-20, Table 3.

2. Includes funding for activities under Operation Sovereign Borders.

Table 4.7: Net additional cost of operations, 2018-19

2018-19 budget estimate1 $m

2018-19 estimated actual2 $m

2018-19 actual result $m

Variation $m

Operation MANITOU 64.9 64.9 42.1 (22.8)

Operation ACCORDION 235.8 235.8 183.5 (52.3)

Operation HIGHROAD 89.5 91.9 86.7 (5.2)

Operation RESOLUTE3 53.2 53.2 65.4 12.2

Operation OKRA 306.5 306.5 199.0 (107.5)

Operation AUGURY—PHILIPPINES 40.1 40.1 7.5 (32.6)

Defence support to the 2018 Commonwealth Games 0.3 0.3 0.5 0.2

Total net additional costs 790.3 792.7 584.7 (208.0)

Notes: This table reflects ongoing and new operations funded under No Win, No Loss arrangements.

1. As published in the Portfolio Budget Statements 2018-19, Table 3.

2. As published in the Portfolio Budget Statements 2019-20, Table 3.

3. Includes funding for activities under Operation Sovereign Borders.

62 DEFENCE ANNUAL REPORT 2018-19

Grants As per the Commonwealth Grants Rules and Guidelines 2017, from 1 December 2017, grant opportunities and grants awarded are reported on GrantConnect (www.grants.gov.au).

In 2018-19, Defence approved 4,451 grants with a total value of $165 million (GST exclusive). Information on grants expenditure awarded by Defence during 2018-19 is available at GrantConnect (www.grants.gov.au).

Advertising and market research During 2018-19, Defence conducted advertising for recruitment and other campaigns. Further information on those advertising campaigns is available at www.defence.gov.au and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.

Table 4.8 shows total advertising and market research expenditure by Defence during 2018-19. Table 4.9 shows Defence spending on advertising and market research by Service and Group.

Table 4.8: Total advertising and market research, by type, 2018-19

Type 2017-18 expenditure ($) 2018-19 expenditure ($)

Advertising 15,379,275 13,783,288

Market research 1,490,728 1,737,957

Polling - 0

Direct mail 4,620 397

Media advertising 59,555,818 44,255,875

Total 76,430,441 59,777,516

Note: All figures are GST inclusive.

Table 4.9: Total advertising and market research expenditure, by Service and Group, 2017-18 and 2018-19

Service or Group 2017-18 expenditure ($) 2018-19 expenditure ($)

Strategic Policy and Intelligence 17,930,182 661,227

Defence Executive Support 48,705 10,470

Defence Finance - 1,404

Joint Capability 63,409 90,655

Navy 92,455 95,772

Army 620,032 78,659

Air Force 264,787 161,556

Australian Defence Force Headquarters 187,838 47,464

Capability Acquisition and Sustainment 121,123 77,164

Estate and Infrastructure 159,278 121,140

Chief Information Officer - 0

Defence People 56,878,262 58,283,656

Defence Science and Technology 64,370 148,348

Total 76,430,441 59,777,516

Note: All figures are GST inclusive.

63 CHAPTER 4 | FINANCIAL SUMMARY

Table 4.10 provides details of individual payments of more than $13,800 (GST inclusive) to persons or organisations for advertising campaigns and market research.

Table 4.10: Individual payments of more than $13,800 to advertising and market research agencies, by Service and Group, 2018-19

Service/Group and agency name 2018-19 expenditure ($) Purpose

Strategic Policy and Intelligence Group

Market research

TBWA Melbourne 89,473 Information Campaign

ORIMA Research Pty Ltd 29,900 Information Campaign

Media advertising

Dentsu X Australia Pty Ltd 508,624 Information Campaign

Navy Capabilities

Media advertising

Spinach Advertising 29,944 Advertising of the Young Endeavour recruitment for the

Youth Development Voyages

Universal McCann 17,833 Civilian recruitment advertising

Army Capabilities

Advertising

Havas Worldwide Australia Pty Ltd 78,364 Regional Force Surveillance Units centred marketing

campaign for the recruitment of local Indigenous at Darwin, Cairns and Karratha

Air Force Capabilities

Advertising

Universal McCann 21,087 Recruitment advertising

Media advertising

Lastminute Multimedia 14,780 Advertising of Royal Australian Air Force Museum

Nova Entertainment 36,124 Advertising of Royal Australian Air Force Museum

Universal McCann 15,726 Advertising of Woomera Prohibited Area Range Activity

Warning Notice

Estate and Infrastructure Group

Advertising

Dentsu X Australia Pty Ltd 20,664.67 Public notices—Defence Field Firing Ranges

Defence People

Advertising

Havas 11,018,411 ADF recruitment advertising

VMLY&R 2,582,518 ADF recruitment advertising

Market research

Where to Research 162,679 Qualitative and quantitative research to maximise ADF

recruitment targets

Kantar Public 492,302 Qualitative and quantitative research to maximise ADF

recruitment targets

Chat House 378,421 Qualitative and quantitative research to maximise ADF

recruitment targets

Hall and Partners 579,789 Qualitative and quantitative research to maximise ADF

recruitment targets

Media advertising

Australian Public Service Commission 304,632 2018-19 Public Service Gazette

Dentsu X Australia Pty Ltd 68,887 Defence graduate marketing package

Universal McCann 76,151 Defence graduate marketing package

64 DEFENCE ANNUAL REPORT 2018-19

Service/Group and agency name 2018-19 expenditure ($) Purpose

Dentsu X Australia Pty Ltd 1,599,151 Planning and placement of campaign advertising

Universal McCann 40,936,184 Planning and placement of campaign advertising

Defence Science and Technology Group

Advertising

Nationwide News 16,500 Journal Publication

Note: All figures are GST inclusive.

Legal expenses Expenditure on internal and external legal services in 2018-19 is shown in tables 4.11, 4.12 and 4.13. Internal expenses include salaries for military and civilian staff, divisional operating costs and military justice reimbursements. External expenses are professional fees, disbursements and legal assistance at Commonwealth expense. The figures are GST exclusive.

Table 4.11: Estimated expenditure on internal and external legal services, 2017-18 and 2018-19

Type of legal expenditure 2017-18

$m

2018-19 $m

Internal 46.57 49.20

External 49.89 60.68

Total 96.46 109.88

Table 4.12: Estimated cost breakdown of internal legal expenses, 2017-18 and 2018-19

Items 2017-18

$m

2018-19 $m

Salaries for military lawyers 18.27 21.39

Salaries for civilian staff 16.41 17.73

ADF Reserve legal officers 7.55 6.42

Operating costs of the division 4.03 3.37

Military justice disbursements 0.31 0.29

Total 46.57 49.20

65 CHAPTER 4 | FINANCIAL SUMMARY

Table 4.13: Estimated cost breakdown of external legal expenses, 2017-18 and 2018-19

Items 2017-18

$m

2018-19 $m

Professional fees—Defence legal panel 46.54 55.14

Disbursements 3.18 5.34

Legal assistance at Commonwealth expense 0.17 0.20

Total 49.89 60.68

Payment of accounts In 2018-19, Defence met 98.6 per cent of all payment transactions by their due date. This result is ahead of the 90 per cent Government benchmark. The volume of payments through Defence Purchasing Cards and Travel Cards represented approximately 78 per cent of all payments, which continued to have a positive effect on the paid-by-due-date result (Table 4.14).

Table 4.14: Accounts paid by due date, 2017-18 to 2018-19

2017-18 2018-19

Number of accounts paid 2,457,010 2,610,782

Accounts paid by due date 2,426,952 2,575,848

Percentage of accounts paid by due date 98.8 98.6

Note: Figures for 2017-18 include accounts paid for the Australian Signals Directorate—these are no longer reported as part of Defence.

Tactical payments scheme The tactical payment scheme was legislated on 1 July 2009, under sections 123H and 123J of the Defence Act 1903. The scheme was introduced in 2009-10 to provide a means for making expeditious non-liability payments resulting from military actions by deployed forces. This scheme is critical for maintaining local community support and thereby ensuring the safety of deployed forces.

In 2018-19, fourteen individual payments totalling $8,705 were made under the scheme. All payments were a consequence of damage to property from motor vehicles.

The MH-60R Helicopter fires flares during a practice serial with HMAS Toowoomba.

66 DEFENCE ANNUAL REPORT 2018-19

Australian Hydrographic Office engagement in the region and beyond

The Australian Hydrographic Office, part of the Strategic Policy and Intelligence Group, is responsible for Defence’s obligations under the Navigation Act 2012. In support of Australian ships and the wider global maritime community, it manages a portfolio of 889 electronic navigation charts, 483 paper nautical charts, and a range of associated nautical publications. In 2018-19 the Australian Hydrographic Office continued its engagement in the South-West Pacific, partnering with nations in the region to achieve a variety of commendable outcomes.

In February 2019 the Australian Hydrographic Office released the inaugural edition of the Solomon Islands National Tide Tables. This publication is a natural progression from the memorandum of understanding between Australia and the Solomon Islands, signed in September 2017, establishing Australia as the primary charting authority for the Solomon Islands. This annual publication will contribute to hydrographic capacity-building and maritime safety in Solomon Islands waters.

In March 2019 the Australian Hydrographic Office published the first Papua New Guinea branded official nautical chart. This change makes it one of the first hydrographic offices in the world to formally identify charts by the sovereignty of the nation state for which the charts are produced. It reflects a bilateral relationship of respect, equality and openness between Australia and Papua New Guinea.

Commodore Fiona Freeman, Royal Australian Navy, Hydrographer of Australia, chairs the annual South-West Pacific Hydrographic Commission Conference, which focuses on raising awareness of the importance of hydrography in the region and coordinating hydrographic capacity-building activities for developing South-West Pacific nations.

The most recent conference was hosted in Niue in February 2019. Twenty nations were represented, as well as industry stakeholders and representatives from the International Hydrographic Organization. The conference followed a technical workshop focusing on the implementation of hydrographic governance and updates in the region, including surveying, charting, risk assessments and capacity-building projects.

This engagement strengthens Australia’s strategic importance in the region, improves navigational safety and freedom of manoeuvre, and is a core part of Australia’s hydrographic capacity-building support for the South-West Pacific.

In addition to capacity-building, the Australian Hydrographic Office continues to contribute to the knowledge of the Australian maritime community. It published a downloadable supplement to the Seafarers Handbook for Australian Waters in November 2018 in response to feedback from shipping industry representatives and the Australian Maritime Safety Authority. This publication addresses misconceptions among mariners regarding the accuracy of bathymetry in electronic navigational charts and the impact that level of accuracy should have on route planning and conduct. The supplement is freely available from the Australian Hydrographic Office website (www.hydro.gov.au) and has been downloaded over 7,000 times. The content has also been offered to the International Hydrographic Organization for publication as an internationally recognised standard.

Conferences, engagements, products and activities like these are valuable opportunities for Australia to build strong relationships with governments and senior officials of other nations and cement the Australian Hydrographic Office as a leading voice in the international maritime community.

67 CHAPTER 5 | GOVERNANCE AND EXTERNAL SCRUTINY

GOVERNANCE AND EXTERNAL SCRUTINY5

Royal Australian Navy officer Lieutenant Shafiqah Shariff-Ali on board HMAS Newcastle while transiting the Malacca Strait during Indo-Pacific Endeavour 2019.

68 DEFENCE ANNUAL REPORT 2018-19

ONE DEFENCE Our continuing journey

2014

2015

FPR First Principles Review

Embedding

ONEDefence 2016

Government commissioned the First Principles Review to ensure Defence was fit for purpose and able to respond to future challenges.

75 recommendations to create a more unified and integrated organisation, more consistently linked to its strategy and clearly led by its centre.

Defence has substantially implemented the recommendations of the FPR, and is now focused on embedding the One Defence business model and leadership behaviours and ongoing reform.

Achievements to date 73 of the 75 recommendations have now been completed.

The independent First Principles Review Oversight Board provided their final report to the Minister in June 2019, evaluating Defence’s implementation and embedding of the First Principles Review.

The Oversight Board reported that the First Principles Review recommendations have been substantially implemented, with Defence having undertaken significant work to improve business structures, processes and culture in line with the One Defence model.

What next … Beyond 2018-19, Defence will implement an ongoing reform agenda to evolve and transform Defence, ensuring responsiveness to Government priorities and the changing strategic environment. This reform agenda will focus on:

transforming our workforce to ensure Defence is a flexible and agile organisation capable of meeting evolving national security challenges

improving our business processes to ensure Defence is a more integrated, streamlined and efficient organisation

continuing to integrate our service delivery functions to reduce duplication and waste as part of the Government’s congestion-busting agenda

continuing to improve our relationship with—and support for—Australia’s defence industry to support Defence’s ability to meet strategic challenges.

69 CHAPTER 5 | GOVERNANCE AND EXTERNAL SCRUTINY

Senior management committees and their roles Defence’s enterprise management and advisory committees are the primary mechanisms for providing direction and assuring that strategy, capability and resources are aligned across the Defence enterprise. The tiered committee structure, as shown in Figure 5.1, supports aggregated reporting, decision-making at the lowest level and mechanisms for escalation and de-escalation as required.

The Defence enterprise committee governance framework was developed to address recommendations from the First Principles Review. Further development of appropriate tools, guidance and systems is expected to provide more effective management of workflow through enterprise committees and improve enterprise level governance, reform, enterprise risk and reporting requirements.

Figure 5.1: Defence enterprise committee structure and roles, indicating incumbent Chairs as at 30 June 2019

Defence Committee Chair: Secretary Incumbent: Mr Greg Moriarty

Enterprise Business Committee Chair: Associate Secretary Incumbent: Ms Rebecca Skinner

Defence People Committee Chair: Deputy Secretary Defence People Incumbent: Ms Justine Greig

Strategic Policy Committee Chair: Secretary Incumbent: Mr Greg Moriarty

Defence Security Committee Chair: Associate Secretary Incumbent: Ms Rebecca Skinner

Defence Audit and Risk Committee Chair: External Incumbent: Ms Jennifer Clark

Chiefs of Services Committee Chair: Chief of the Defence Force Incumbent: General Angus Campbell

Defence Finance and Resourcing Committee Chair: Chief Finance Officer Incumbent: Mr Steven Groves

Investment Committee Chair: Vice Chief of the Defence Force Incumbent: Vice Admiral David Johnston

Defence Joint Warfare Committee Chair: Vice Chief of the Defence Force Incumbent: Vice Admiral David Johnston

Defence Communications and Information Systems Committee Chair: Chief Information Officer Incumbent: Mr Stephen Pearson

TIER 1

TIER 2

TIER 3

70 DEFENCE ANNUAL REPORT 2018-19

Performance and accountability The purpose of enterprise performance management is to monitor performance and keep strategy, capability and resources aligned with Government direction. Defence’s Strategy Framework 2017 includes the 2016 Defence White Paper, the Integrated Investment Program, the Defence Industry Policy Statement, the First Principles Review and the Defence budget. This policy direction shapes strategic policy guidance, including the Defence Planning Guidance and Australia’s Military Strategy.

Defence’s enterprise performance is achieved by ensuring that Defence strategy and policy requirements are translated into corporate planning and budget allocation, which is implemented and resourced through Group and Service business plans. Performance and risks to achievement are monitored and reported by responsible and accountable officers to senior committees, including the Defence Committee, and to the Minister for Defence.

In 2018-19, Defence continually improved the quality of planning, monitoring and reporting.

Improvements to performance reporting during 2018-19 have enabled Defence to align the performance information in the Portfolio Budget Statements 2019-20 and the 2019-20 Defence Corporate Plan.

Risk Risk management is an essential element of Defence’s good governance and internal control environment. Defence maintains a system of risk oversight and management to support the achievement of Defence’s outcomes and meet its risk management obligations in accordance with the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

In 2018-19, Defence reviewed and updated its risk management framework to strengthen alignment between enterprise risk management, corporate planning and performance reporting to better support decision-making. This involved:

• reviewing key risks affecting the achievement of Defence’s outcomes

• identifying enterprise-level risks and the enterprise-level controls that mitigate the risks

• developing guidelines for enterprise-level control management

• defining a risk appetite statement.

In 2018-19, Defence delivered two senior leadership risk management program seminars to the Senior Leadership Group. The program aims to foster a positive risk culture and build senior leaders’ ability to recognise key and emerging risk management issues as administrators.

Major Projects Report The Major Projects Report was established to increase departmental transparency and accountability. It includes information about the cost, schedule and progress towards delivery of required capability of a selection of individual projects managed by the Capability Acquisition and Sustainment Group. It was first published in 2008.

The report is a joint publication between Defence and the Australian National Audit Office (ANAO), and it is prepared in accordance with guidelines endorsed by the Joint Committee of Public Accounts and Audit. The latest guidelines were endorsed in September 2018. They provide the process and projects to be reported as at 30 June 2019.

The Major Projects Report is scheduled for publication within five months after the end of the financial year. However, the tabling date depends on the resolution of issues that arise in any given year. The latest report (Auditor-General report No 20 of 2018-19) was published on 18 December 2018. All published reports are available on the ANAO website.

71 CHAPTER 5 | GOVERNANCE AND EXTERNAL SCRUTINY

Capability delivery The First Principles Review Recommendation 2 called for Defence to ‘Establish a single end-to-end capability development function within the Department to maximise the efficient, effective and professional delivery of military capability’. The Capability Life Cycle is Defence’s response to this recommendation.

The Capability Life Cycle delivers the Government’s capability aspirations outlined in the 2016 Defence White Paper and the accompanying Integrated Investment Program. It has been operating since April 2016.

The Capability Life Cycle provides Defence with an end-to-end process for capability development and delivery of capital projects, and associated through-life support, related to major capital equipment, infrastructure, enterprise enablers and information and communications technology.

The Capability Life Cycle has clarified roles, strengthened accountabilities, improved central agencies, engagement and established strong Force Design and Contestability functions that are central to improved decision-making. The Capability Life Cycle introduced tailored investment approval pathways guided by the Smart Buyer decision-making framework, along with an ongoing Force Design process. Together these enable the Integrated Investment Program to be agile and responsive to Defence and Government priorities.

The capability stream and program structure established in the 2016 Defence White Paper and Integrated Investment Program has matured through the Capability Life Cycle and has enabled clearer communication with central agencies and Government regarding how Defence investments combine to deliver a more capable and lethal Australian Defence Force.

In 2018-19 Defence commenced an incremental review of the Capability Life Cycle to update it to reflect lessons learnt and ensure it remains fit for purpose.

Overall, the implementation of the Capability Life Cycle is enabling Defence to deliver on the ambitious $200 billion recapitalisation of Australia’s defence capability originally outlined in the 2016 Defence White Paper and associated Integrated Investment Program. This is evidenced by the significant number of capability investment approvals achieved since its introduction in 2016.

Audit The Defence internal audit program provides independent assurance to senior internal stakeholders on the department’s controls and the effectiveness of those controls in mitigating strategic enterprise risks. The 2018-19 Internal Audit Work Program delivered 26 audit reports. In addition, two management-directed tasks were completed.

Defence also supported audit activities undertaken by the ANAO. In 2018-19, the Auditor-General completed five performance audits on Defence, financial statements audit, and the priority assurance review (Major Projects Report).

Defence also monitors the implementation of recommendations from internal audits and ANAO audits, reporting to the Defence Audit and Risk Committee and the Enterprise Business Committee.

Fraud and integrity In accordance with the Commonwealth Fraud Control Framework 2017, Defence continues to meet its mandatory obligations to prevent, detect and respond to fraud and corruption. Defence has a mature fraud and corruption control program which has a range of strategies to manage, evaluate and report fraud and corruption activities, including:

• the promotion of integrity and development of a strong ethical culture through mandatory and focused training, publications and an Ethics Advisory Service

• a rigorous fraud and corruption risk assessment program focusing on Defence-wide vulnerabilities

72 DEFENCE ANNUAL REPORT 2018-19

• an intelligence-led and targeted fraud and corruption detection program

• investigation of fraud, corruption, misconduct and unethical conduct with the application of appropriate criminal, civil, administrative or disciplinary action

• recovery of proceeds from fraudulent and corrupt conduct

• development and strengthening of partnerships, at the Commonwealth and international levels, to facilitate information-sharing arrangements.

Investigations In 2018-19, there were 202 fraud investigations registered within Defence, with 176 investigations completed during the year (some of those completed were registered in previous years). Approximately 40 per cent of completed investigations resulted in criminal, disciplinary or administrative action. Of these, approximately 35 per cent related to disciplinary action under the Defence Force Discipline Act 1982.

Table 5.1: Determined fraud losses and cash recoveries, 2014-15 to 2018-191

2014-15($) 2015-16($) 2016-17($) 2017-18($) 2018-19($) Total

Loss 480,937 535,766 608,593 605,351 445,422 2,676,069

Cash recovery 415,120 269,728 426,007 817,761 804,165 2,732,781

Note:

1. Fraud losses are recorded against the financial year in which the relevant investigation is closed. Cash recoveries comprise all payments received in the financial year, regardless of the year in which the investigation was closed, and include recoveries relating to matters that are currently the subject of investigation.

Compliance with finance law Section 19 of the PGPA Act requires, among other things, that agencies notify their responsible Minister, as soon as practicable, of any significant issue that has affected the entity. Defence advised the Minister of 53 instances of significant non-compliance with finance law in 2018-19.

Exercise of the Defence Minister’s powers under the Customs Act In accordance with the requirements of section 112BC in Division 1AA of the Customs Act 1901, the Minister for Defence must table a statement on the exercise of the Minister’s powers under Division 1AA of the Act for each preceding year. For the period 1 July 2018 to 30 June 2019, the Minister for Defence exercised the powers pursuant to Division 1AA of the Act on one occasion.

73 CHAPTER 5 | GOVERNANCE AND EXTERNAL SCRUTINY

Report of the Inspector-General of the Australian Defence Force The Inspector-General of the Australian Defence Force (IGADF) is a statutory appointment and operates outside the ordinary chain of command to provide an independent and impartial integrity, inquiry and assurance function. The position of the IGADF is established under section 110B of the Defence Act 1903.

The functions of the IGADF are to:

• provide the Chief of the Defence Force (CDF) with a mechanism for internal audit and review of the military justice system

• provide an avenue by which failures in the military justice system may be examined and remedied

• provide advice on matters concerning the military justice system

• conduct reviews of complaints made under the statutory redress of grievance scheme

• conduct inquiries into deaths of ADF members

• inquire into or investigate matters concerning the ADF as directed by the Minister or CDF.

The operating tempo in the Office of the IGADF remained relatively high in 2018-19. In comparison with 2017-18, the operating tempo was characterised by an increase in the number of military justice performance audits, a comparable submission and investigation case workload, and a consistent number of Redress of Grievance complaints and reviews of deaths of ADF members.

In 2018-19, IGADF received 65 new submissions—a figure that is comparable with previous reporting periods. Approximately 30 per cent of those submissions proceeded to inquiry. As at 30 June 2019, 56 submissions had been finalised based on the results of an IGADF inquiry or assessment.

In addition, IGADF received 24 complaints of possible Military Police professional standards breaches. During the reporting period, 33 such complaints were finalised. Of these, 14 were submitted in 2018-19, while the remaining 19 were submitted in previous reporting periods.

At the request of the Chief of Army, and subsequently under the direction of CDF, in May 2016 IGADF established an inquiry into rumours and allegations of misconduct, including potential breaches of the law of armed conflict, by members of the Special Operations Task Group during deployments in Afghanistan between 2005 and 2016. This inquiry remained ongoing at the end of the reporting period.

In 2018-19, IGADF conducted 62 military justice performance audits—an increase of approximately nine per cent from 2017-18. Of those units audited, two were re-audits that took place after material deficiencies were identified in the previous reporting period.

In 2018-19, material deficiencies were identified in one ADF unit. A re-audit of that unit will occur within 12 months. During the conduct of military justice performance audits in the reporting period, 4,723 ADF personnel participated in focus group discussions.

In 2018-19, IGADF initiated 32 new reviews of deaths in service of ADF members. During the same period IGADF finalised 48 inquiries into deaths in service of ADF members.

IGADF received 360 new applications for redress of grievance in 2018-19—a decrease of approximately nine per cent from the 392 received in 2016-17. As at 30 June 2019, 394 applications had been finalised (some of which were received in previous reporting periods).

Pursuant to section 110R of the Defence Act 1903, IGADF prepares an annual report on the operations of the Office of IGADF for the Minister, for presentation to the Parliament, at the end of each financial year. For more information and to access a copy of the latest IGADF Annual Report, visit www.defence.gov.au/mjs/reports.asp.

74 DEFENCE ANNUAL REPORT 2018-19

Royal Australian Navy submarines lead regional focus

Collins Class submarines HMAS Collins, HMAS Farncomb, HMAS Dechaineux and HMAS Sheean in formation while transiting through Cockburn Sound, Western Australia.

Following successful implementation of the Coles Review over a number of years, and through the exceptional efforts of the Submarine Enterprise (Navy, CASG and Defence Industry), RAN submarines are deploying and operating at unprecedented rates.

The submarines as a force are now achieving over 600 days at sea per year. In 2018-19, submarines deployed across the region and participated in Exercises AUSINDEX, Bersama Shield, Kakadu, La Perouse, Pacific Vanguard and RIMPAC. During these activities they visited a number of regional ports, including but not limited

to Chennai, Noumea, Phuket, Sembawang, Sepanggar, Subic Bay and Visakhapatnam.

With improved submarine availability comes the ability to grow and train an increasingly large workforce. Submarine recruitment and retention has seen the force meet their growth targets to achieve the requirements of a sustainable and successful workforce, and prepare for the transition to a larger force of 12 Attack Class submarines.

The submarine force continues to go from strength to strength, providing the ADF with a potent capability and powerful deterrent.

Defence engagement with parliamentary committees In 2018-19 Defence provided evidence at 16 public hearings, three Senate estimates hearings and 14 private briefings.

Defence provided 24 submissions and seven government responses to parliamentary committee inquiries, including input to six government responses led by other departments.

Defence took 432 questions on notice. Of these, 317 were from estimates hearings; 70 were from parliamentary committee hearings and briefings; and 45 were submitted in writing from senators and members.

Defence’s submissions, responses to questions on notice and transcripts of committee hearings are available on the Parliament of Australia website.

75 CHAPTER 5 | GOVERNANCE AND EXTERNAL SCRUTINY

Parliamentary committees Defence is examined by the Senate Standing Committee on Foreign Affairs, Defence and Trade. The committee comprises senators from the Government, Opposition and other parties and covers the Defence, Veterans’ Affairs, Foreign Affairs and Trade portfolios. Table 5.2 lists Defence’s involvement in inquiries and reviews by parliamentary committees between 1 July 2018 and 30 June 2019.

Table 5.2: Defence’s involvement with parliamentary committees, 2018-19

SENATE STANDING COMMITTEE ON FOREIGN AFFAIRS, DEFENCE AND TRADE

Use of the quinoline anti-malarial drugs mefloquine and tafenoquine in the Australian Defence Force Defence provided one submission and two further supplementary submissions to the inquiry, and participated in one public hearing. Defence provided input to a Department of Veterans Affairs led Government response.

Defence Amendment (Sovereign Naval Shipbuilding) Bill 2018 Defence provided one submission and participated in one public hearing.

Impact of Defence training activities on rural and regional communities Defence provided a Government response to the final report.

Implications of climate change for Australia’s national security Defence provided input to the Department of Home Affairs for inclusion in the Government response.

Projects of Concern Defence provided one submission.

JOINT STANDING COMMITTEE ON FOREIGN AFFAIRS, DEFENCE AND TRADE

Inquiry into the management of per-and polyfluoralkyl substances (PFAS) contamination in and around Defence bases Defence provided input into one submission and Government response and participated in four public hearings.

Inquiry into transition from the ADF Defence provided a joint submission with Department of Veterans’ Affairs and participated in one public hearing. A Government response is currently being developed.

Benefits and risks of a bipartisan Australian defence agreement, as a basis of planning for, and funding of, Australian Defence capability The Defence-led Government response was tabled in February 2019.

Review of the Defence Annual Report 2015-16 Defence tabled the Government response in August 2018.

PARLIAMENTARY JOINT COMMITTEE ON INTELLIGENCE AND SECURITY

Review of Administration and Expenditure No 16 (2016-17) Defence provided one submission and participated in one private briefing.

Review of Administration and Expenditure No 17 (2017-18) Defence provided one submission and one supplementary submission.

JOINT STANDING COMMITTEE ON TREATIES

Inquiry into Defence Support—France Defence participated in one public hearing.

JOINT STANDING COMMITTEE ON HUMAN RIGHTS

Defence Inquiry Regulations 2018 Defence provided one submission.

JOINT STANDING COMMITTEE ON THE NATIONAL CAPITAL AND EXTERNAL TERRITORIES

Inquiry into Australia’s Antarctic Territory Defence provided one submission and input into a Government response.

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JOINT COMMITTEE OF PUBLIC ACCOUNTS AND AUDIT

Auditor-General report No 34 of 2017-18—Defence First Principles Review Auditor-General report No 39 of 2017-18—Naval Construction Programs—Mobilisation These reports are combined. Defence provided one submission to each inquiry and participated in two public hearings. A Government response is currently being developed.

Auditor-General report No 38 of 2017-18—Mitigating insider threats through personnel security Defence provided one submission and participated in two public hearings. The Government response is under development.

Cybersecurity compliance—Inquiry into Auditor-General’s report 42 (2016-17) Defence provided input to Government response.

Report 463: Commonwealth Financial Statements Defence tabled a Government response (Executive Minute) in August 2018.

Defence sustainment expenditure Defence tabled a Government response (Executive Minute) in September 2018.

Defence Major Projects Report 2016-17 Defence tabled a Government response (Executive Minute) in December 2018.

Issuing of a Certificate under section 37 of the Auditor-General’s Act 1997—Inquiry based on Auditor-General’s Report No. 6 (2018-19) Defence provided one submission and a further supplementary submission, and participated in two public hearings.

SENATE STANDING COMMITTEE ON REGULATIONS AND ORDINANCES

Defence Determination, Conditions of Service Amendment (Flexible Service Determination) Determination 2018 Defence provided one submission.

IGADF Amendment Regulations 2018 Defence provided one submission and one further supplementary submission.

Defence Determination, Conditions of Service Amendment (Reserve capability payment and Reserve capability completion bonus) Determination 2019 (No 9) Defence provided one submission.

SENATE STANDING COMMITTEE ON ENVIRONMENT AND COMMUNICATIONS

Australia’s faunal extinction crisis Defence provided one submission.

SENATE STANDING COMMITTEE ON LEGAL AND CONSTITUTIONAL AFFAIRS

Judiciary Amendment (Commonwealth Model Litigant Obligations) Bill 2017 Defence provided one submission.

SENATE RURAL AND REGIONAL AFFAIRS AND TRANSPORT LEGISLATION COMMITTEE

Regulatory requirements that impact the safe use of Remotely Piloted Aircraft Systems, Unmanned Aerial Systems and associated systems Defence provided input to the Government response.

SENATE STANDING COMMITTEE ON ECONOMICS

Future of Australia’s naval shipbuilding industry The Government response is under development.

HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON INDUSTRY, INNOVATION, SCIENCE AND RESOURCES

Space Industry Roundtable Defence participated in one public hearing.

PRODUCTIVITY COMMISSION

Compensation and rehabilitation for veterans—‘A better way to support veterans’ draft report Defence provided one submission and a supplementary joint submission with the Department of Veterans’ Affairs.

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INDEPENDENT REVIEWS

Review of the Defence Trade Controls Act 2012 (Thom Review) The independent review and initial Government response were tabled in February 2019.

Review of the rules, regulations and policies governing political activities by members of the ADF The review is undergoing consideration.

Independent inquiry into the administration of Defence Force Retirement and Death Benefits Scheme commutation arrangements The Commonwealth Ombudsman is to undertake an independent inquiry.

QUEENSLAND GOVERNMENT—STATE DEVELOPMENT, NATURAL RESOURCES AND AGRICULTURAL INDUSTRY DEVELOPMENT COMMITTEE

Inquiry into job creation opportunities in Queensland arising from establishment of an Australian space industry Defence attended one public hearing.

NEW SOUTH WALES GOVERNMENT STANDING COMMITTEE ON STATE DEVELOPMENT

Inquiry into Defence industry in New South Wales Defence provided one submission.

Parliamentary Standing Committee on Public Works In 2018-19, Defence witnesses appeared at seven hearings of the Parliamentary Standing Committee on Public Works. Defence referred four major projects and notified four medium works projects to the committee. In 2018-19, parliamentary approval was achieved for six major projects and four medium works projects.

Table 5.3: Defence major projects that achieved parliamentary approval through the Parliamentary Standing Committee on Public Works, 2018-19

Project Location Value ($m)

LAND 2110 Phase 1B—Chemical, Biological, Radiological and Nuclear Defence (CBRND) Facilities Multiple 16.7

AIR2025 Phase 6 Jindalee Operational Radar Network Facilities Multiple 50.7

LAND 200 Tranche 2—Battlefield Communication System Facilities Multiple 24.3

Naval Guided Weapons Maintenance Facilities Project Defence Establishment Orchard Hills (NSW) 95.5

LAND 4502 Phase 1—Additional CH-47F Chinook Facilities RAAF Base Townsville (QLD) 49.9

Defence High Performance Computing Centre RAAF Base Edinburgh (SA) 68.8

Total 305.9

Table 5.4: Defence medium works notified to the Parliamentary Standing Committee on Public Works, 2018-19

Project Location Value ($m)

Australian Government Security Vetting Agency Fit-out Project Brisbane (QLD) 5.8

Robertson Barracks Close Training Area Post Acquisition Works Project Robertson Barracks (NT) 7.6

Walker House Fit-out, Canberra, Project Brindabella Business Park (ACT) 4.9

United States Force Posture Initiative Marine Rotational Force Darwin Modular Accommodation RAAF Base Darwin Project RAAF Base Darwin (NT) 12.8

Total 31.1

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Judicial and administrative tribunal decisions In Searle v Commonwealth of Australia [2019] NSWCA 127, the New South Wales Court of Appeal overturned the decision of the Supreme Court of New South Wales in Searle v Commonwealth [2018] NSWSC 107 that a training contract between the Commonwealth and a Navy member was void because it fettered the power of naval command given by the Defence Act 1903 and/or the Constitution. The Court of Appeal found that the training contract was not beyond the power of the Commonwealth; was a valid exercise of the Commonwealth’s broad power to contract; and did not fetter the Commonwealth’s power of naval command. The Court noted that there needs to be a balance between the public interest in upholding contracts into which the Commonwealth chooses to enter and the public interest in avoiding fettering of the discretion. The Court of Appeal determined that, where the sole remedy is one of damages (rather than specific performance or injunctive relief) and where such damages are not significant, this will not fetter the Commonwealth’s power of naval command.

Commonwealth Ombudsman and Defence Force Ombudsman reports Defence did not receive any reports issued by the Ombudsman under sections 15, 16, 17 or 19 of the Ombudsman Act 1976 or by the Defence Force Ombudsman under section 19FA of the Ombudsman Act in relation to Defence during the financial year.

Auditor-General’s reports In 2018-19, the Auditor-General published five performance audit reports in relation to Defence and one priority assurance review.

Table 5.5: Auditor-General’s performance audit reports on Defence, 2018-19

Report Date presented to Parliament Audit objective

Army’s Protected Mobility Vehicle—Light 11 September 2018 To assess the effectiveness and value for money of Defence’s acquisition of light protected vehicles under Defence project Land 121 Phase 4.

Joint Strike Fighter—Introduction into Service and Sustainment Planning 5 December 2018 To assess the effectiveness of the Department of Defence’s preparations for the introduction of the

Joint Strike Fighter into Australian service and its subsequent sustainment.

ANZAC-Class Frigates—Sustainment 18 March 2019 To examine whether the Department of Defence has effective and efficient sustainment arrangements for the Royal Australian Navy’s fleet of eight ANZAC-Class Frigates.

Defence’s Management of its Projects of Concern 26 March 2019 To assess whether the Department of Defence’s Projects of Concern regime is effective in managing

the recovery of underperforming projects.

Modernising Army Command and Control—the Land 200 Program 23 May 2019 To assess the effectiveness and value for money

of Defence’s acquisition of a Battle Management System and a Tactical Communications Network through Land 200 Tranche 2 Work Packages B-D.

Table 5.6: Auditor-General’s priority assurance review involving Defence, 2018-19

Report Date presented to Parliament Review objective

2017-18 Major Projects Report 18 December 2018 To provide the Auditor-General’s independent assurance over the status of the selected major projects.

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Organisational capability reviews The Australian Public Service Commission did not conduct a review into Defence’s organisational capability in 2018-19.

Freedom of information During 2018-19, Defence received 1,208 requests for information. These requests were a combination of freedom of information requests, enquiries that were handled administratively by agreement with the applicant, and courtesy consultations from other government agencies. In addition, Defence managed 124 review requests on finalised freedom of information decisions. These reviews were managed internally or by providing detailed submissions to the Office of the Information Commissioner.

In 2018-19, 439 requests were for information under section 15 of the Freedom of Information Act 1982. Defence finalised 468 requests, including requests carried over from 2017-18. An additional 21 requests, for amendment or annotation of records of personal information, were managed under section 48 of the Freedom of Information Act.

Defence also received 60 internal reviews of freedom of information decisions—57 were finalised, including cases carried over from the previous financial year.

Defence managed 684 requests for information which did not proceed to a formal freedom of information decision. Of these, 236 were requests for access to personnel records. These were processed in accordance with section 15A of the Freedom of Information Act, which provides for access to be given in such cases through established administrative channels. Defence received 64 courtesy consultations from other government agencies in 2018-19.

Defence managed 64 external review cases submitted to the Office of the Australian Information Commissioner. The Office of the Australian Information Commissioner completed 14 reviews, and 50 are awaiting a decision from the Information Commissioner. Defence also managed three cases before the Administrative Appeals Tribunal, of which one was completed.

Additionally, four external complaints relating to Defence freedom of information cases were submitted to the Office of the Australian Information Commissioner. These four complaints are awaiting a decision.

Contracts exempt from publication on AusTender In 2018-19, Defence reported a total of 146 contracts, standing offers or variations, with a total value of $337,898,833.97, subject to an exemption under the Freedom of Information Act. These exemptions were generally applied under the national security provisions of the Act.

Information Publication Scheme Entities subject to the Freedom of Information Act are required to publish information as part of the Information Publication Scheme. Each agency must display on its website a plan showing what information it publishes in accordance with the scheme’s requirements.

Further information is available on Defence’s Information Publication Scheme website detailed in Appendix D.

Defence Public Interest Disclosure Scheme The Defence Public Interest Disclosure Scheme continues to facilitate a strong reporting culture in Defence. The scheme facilitates and encourages reports of suspected wrongdoing, provides support and protection to disclosers, and ensures that suspected wrongdoing is investigated, where appropriate, consistent with the requirements of the Public Interest Disclosure Act 2013.

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Operation North Queensland Flood Assist—Defence support to families affected by Townsville floods

During 2018-19, Defence received a total of 255 matters reported under the Defence Public Interest Disclosure Scheme. Of these, Defence accepted 128 matters as public interest disclosures and allocated them for investigation.

Australian Army personnel from the 4th Regiment, Royal Australian Artillery assist Townsville residents in sandbagging their homes in preparation for rising flood waters.

Described as a ‘once in 500 years’ event, the 2019 Townsville floods resulted from unprecedented monsoonal rains that caused Ross River Dam to rise to the highest level ever recorded. Soon after the Queensland Government declared a state of natural disaster on 31 January 2019, Townsville’s ADF presence— including 3rd Brigade, 17th Brigade, 16th Brigade, 1st Division and Air Force elements—joined the local disaster management group, and Operation NORTH QUEENSLAND FLOOD ASSIST swung into action.

The Australian Army began flood preparation support, sandbagging private homes and local businesses in low-lying areas. As floodwaters rose, the ADF helped local authorities evacuate more than 500 residents, flew in an additional 104,000 sandbags and provided aerial reconnaissance of flood-affected areas.

When weather conditions made it impossible to transport essential items by road or rail, C-17A Globemaster III and C-27J Spartan aircraft and Army CH-47 Chinook helicopters delivered critical supplies of aviation fuel, 72 tonnes of food and water, and livestock feed to i solated communities.

Not since Cyclone Tracy in 1974 has a natural disaster affected so many Defence families. Many of the around 2,800 Defence members who supported the response were unable to return home for days, only to find that they too had lost their homes.

As the impact on Defence families became apparent, specialist staff from bases across Australia were mobilised to support them. These staff travelled to Townsville, joining representatives from Defence Housing Australia, Toll Transitions, the Department of Human Services and the Australian Taxation Office to provide emergency accommodation, removals, clean-up services and other assistance to over 230 Defence families.

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STRATEGIC WORKFORCE MANAGEMENT6

Lieutenant Colonel Bronwyn Johnstone (Army), Wing Commander Ian Kirkham (Air Force), Lieutenant Commander Jayne Trustum (Navy) and Basu Banka (APS).

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Workforce summary Defence continues to pursue a capable, agile and resilient workforce that will deliver Defence outcomes in a highly dynamic strategic environment.

Defence is currently in the third year of implementing the actions outlined in the Defence Strategic Workforce Plan 2016-2026. The actions in the plan provide an integrated, enterprise approach to recruitment, career and talent management, workforce mobility, education and training, learning and development, transition and re-engagement, and partnerships with other Government departments, industry and academia. The actions are supported by Defence White Paper People Initiatives valued at $384.3 million over the decade to financial year 2024-25.

Defence is building its skill base through training and education, targeted recruitment and balancing the integrated APS, ADF and contractor workforce to effectively deliver our capability requirements.

Significant effort has been put into recruitment and retention of the shipbuilding; cyber; science, technology, engineering and mathematics (STEM); and information and communications technology workforce.

Retention of our workforce and their skills and experience are critical to the effectiveness of delivering Defence capability. The Pathway to Change strategy, evolving a workforce culture, embedding the One Defence Leadership Behaviours and developing a safety culture are critical to our operational effectiveness and retention of the Defence workforce.

A summary of key initiatives is below.

Recruiting of ADF personnel In 2018-19 Defence recruited over 7,000 personnel to permanent and reserve roles in the ADF, resulting in 93.4 per cent of targets being filled. This outcome represents the highest number of enlistments since 2009-10. There remain some areas that require further improvement, including critical categories and recruitment outcomes for women and Indigenous Australians. During 2018-19 Defence Force Recruiting and the Services implemented targeted recruitment and retention initiatives to address these areas.

Families and transition support In 2018-19, Defence adopted a needs-based model of transition support, which offers transitioning members and their families access to targeted services and support for up to 12 months after transition. Defence has delivered greater support for families, including expanding the Partner Employment Assistance Program and a range of initiatives to improve employment opportunities upon transition.

Work health and safety The Defence Work Health and Safety Strategy 2017-2022 sets out Defence’s work health and safety priorities. The strategy and implementation plan continue to embed work health and safety into the thinking and behaviours of personnel and in all Defence business and management systems.

In 2018-19, Defence and the Department of Veterans’ Affairs jointly funded the Transition and Wellbeing Research Program, which is the most comprehensive study ever undertaken in Australia of the impact of military service on the mental, physical and social health of serving and former ADF members and their families.

First Principles Review reforms During 2018-19, Defence’s APS Performance Management Framework focused on quality conversations and recognising and rewarding high performance. A revision of the policy focused on more positive language to improve performance and support employees and supervisors to work together to achieve the required performance standard. Increased participation in Defence’s leadership programs including the Gateway, Catalyst and Impetus programs and Leading for Reform has enhanced the leadership capability of Defence employees throughout 2018-19.

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Cultural reform In 2018-19 Defence leveraged the implementation of all First Principles Review recommendations and continued progress on its cultural reform priorities under Pathway to Change: Evolving Defence Culture 2017-22. This strategy identifies six priority areas for continued improvement: leadership accountability; capability through inclusion; ethics and workplace behaviours; health, wellness and safety; workplace agility and flexibility; and leading and developing integrated teams. Each Service has reflected these priorities in their individual cultural programs: Next Generation Navy, Good Soldiering and New Horizon. Importantly, as cultural improvement is a long-term process, throughout 2018-19 Defence continued to work with partners such as the Australian Human Rights Commission on reinforcing and embedding progress to date.

Sexual misconduct prevention and response During 2018-19 the Sexual Misconduct Prevention and Response Office provided education sessions to approximately 13,355 Defence personnel. This represents a small increase on the previous year’s total of 12,920. The Sexual Misconduct Prevention and Response Office was focused on maximising access to Defence’s values and expected behaviours messages and has developed e-learning packages to support distributed learning opportunities.

Key workforce initiatives and achievements A range of new initiatives, combined with enhancements to previous programs, have been implemented to attract, recruit and build the required workforce, and support ADF members and their families.

• Further progress was made in implementing the Total Workforce Model, designed to optimise the contribution of the ADF workforce to capability through different patterns of service. Implementation of Service Category 6 was achieved, to allow for all patterns of flexible service, including months per year.

• Strategic Workforce Plans were finalised for the cyber and intelligence workforces. Professional and Workforce Employment frameworks were also developed, to further the professionalisation of the cyber workforce.

• Partnerships with industry, other government agencies and the education sector were strengthened to build skills that will yield better results for Defence capability. Key to this was the launch of the Defence Industry Skilling and Science, Technology, Engineering and Mathematics (STEM) Strategy.

• The Defence STEM Council was introduced to drive a more collective approach across Defence and with other agencies, to develop the talent pipeline for careers in science, technology, engineering and mathematics.

• Targeted ADF recruitment activities in relation to engineering, health, naval, and intelligence related roles have been undertaken. This included, for example, a successful competition to encourage potential candidates to consider a career as a submariner.

• Defence continued to use Specialist Recruiting Teams for Women, comprising current serving Defence women, to assist with the promotion of Defence careers for women and provide mentoring support through the recruiting process.

• Information sessions focused on women, mentoring programs, and experience camps intended to address some of the perceived barriers to entry are ongoing.

• Pathway programs, to support Indigenous Australians progressing to a career in the ADF, have been conducted in Cairns, Darwin, Kapooka, and Wagga Wagga. In addition, the Defence Work Experience Program hosted 338 Indigenous students across Australia.

• In delivering on the Naval Shipbuilding Plan, demand and supply strategies have been developed. This includes a dedicated Naval Construction APS graduate stream, with the first cohorts commencing in 2018-2019, supported by a mentoring program to best develop the technical and professional skills of this foundation workforce.

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• Services to support ADF families have been furthered, including through the Individual Case Management Service, which has assisted 191 families in 2018-19 to source appropriate childcare arrangements.

• To raise awareness of family and domestic violence, a targeted training and education program has been introduced for supervisors and commanders.

• A range of mental health initiatives have been progressed including the Periodic Mental Health Screen in all garrison health centres, to provide early identification and intervention for members with mental health concerns.

First Principles Review workforce initiatives

Developing staff Defence is undergoing one of its largest workforce transformations to meet a rapidly evolving national security challenge. This presents unique challenges in attracting, recruiting, training and re-skilling a workforce for both new and existing capabilities, while remaining within workforce allocations.

The leadership capability of executive-level employees was enhanced in 2018-19 through the Defence Leading for Reform program. The program aims to develop leaders who can effectively implement reform and who act in accordance with the One Defence Leadership Behaviors. In 2018-19, 16 cohorts comprising 361 individuals, completed the program.

An increased number of personnel have participated in a suite of Defence leadership programs including the Gateway, Catalyst and Impetus programs. In 2018-19, 28 cohorts of APS 4 to APS 6 employees completed the Gateway program, with 613 individual completions recorded. For Catalyst, 14 cohorts completed the program, with 246 APS 6 to EL2 employees participating in the course. Fifty-one EL1 and EL2 employees completed Impetus. This program supports graduates of the Catalyst program to reflect on, reassess and re-energise their transformational leadership development journey.

Evaluation of Defence’s leadership development programs consistently indicates a positive impact on the reform efforts of Executive Level staff in Defence, improved leadership capabilities and a cultural shift in behaviours towards the One Defence Leadership Behaviours.

Defence has built a skills framework to enhance the professional development of all employees and to support actions resulting from the Defence Strategic Workforce Plan. The foundation of the framework is the Australian Public Service Commission Core Skills Strategy 2030 and the skills relevant to Defence job families.

In 2018-19 Defence continued a number of other key activities to develop personnel:

• Defence continued to offer tertiary education assistance programs for ADF members and APS employees. Nearly 1,600 ADF members were supported in their studies through the Defence Assisted Study Scheme (DASS). Support is provided through financial assistance and/or work release for study purposes. Over 450 APS and Australian Signals Directorate employees were funded to study through Studybank in 2018-19.

• Fully funded master’s level postgraduate places are available through the University of New South Wales Canberra at the Australian Defence Force Academy. Study can be undertaken through intensive or distance education modes, offering flexibility for our regional learners. 1,300 personnel were supported to gain qualifications under this program in 2018-19—1,095 ADF and 205 APS.

• The Defence and Strategic Studies Course (DSSC) provides advanced policy-related skills, high-level corporate leadership and strategic decision-making skills combined with an in-depth knowledge of national and international Defence issues of strategic importance as well as opportunities to develop strategic relationships overseas. There are 51 military officers and eight APS Executive Level 2 employees participating in this course in 2019.

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• The Australian Command and Staff Course (ACSC) provides education in Command, Leadership and Management, Strategic and Australian Defence Studies, Staff Skills and Joint Operations. There are 181 military personnel and seven APS Executive Level 1 and two APS Level 6 employees completing the program in 2019.

• For APS employees, the Secretary of Defence Fellowship (one Fellow), the Sir Roland Wilson Foundation PhD Scholarship (three Scholars), and the Women, Peace and Security Fellowship (one Fellow) schemes are offered. Partnering with Defence Science and Technology and International Policy Division, a Defence Science Policy Fellowship was established. In 2019 Defence also participated in the Association of Southeast Asian Nations (ASEAN) scholarship. Scholarships are offered annually through the Chief of the Defence Force fellowships (one Fellow) for ADF members.

Cultural reform Defence’s collaboration with the Australian Human Rights Commission to support and improve the implementation of our reform priorities and to embed cultural change across the organisation continued throughout 2018-19. The work of the Defence collaboration team has focused on issues around gender, race, diversity, sexual orientation and the impact of alcohol and social media, among other cultural and workplace issues.

Defence is building on the progress made so far to foster a more inclusive culture and to drive high performance at all levels. Pathway to Change: Evolving Defence Culture 2017-22 underpins Defence’s commitment to driving authentic, sustainable change and creating an environment where the workforce is accountable for a more positive and inclusive culture. In 2018-19 Defence progressed its work on the key cultural reform priorities of leadership accountability; capability through inclusion; ethics and workplace behaviours; health, wellness and safety; workplace agility and flexibility; and leading and developing integrated teams. These cultural priorities have been embodied in the Cultural Plans of Groups and Services.

The launch of Next Generation Navy builds on earlier New Generation Navy initiatives and focuses on five cultural pillars: Value our People; Instil a Sense of Purpose; Drive to Professional Mastery; Develop Leaders who Value their Teams, and Enhance Resilience.

In March 2019, the Chief of Army launched a new organisational culture program, Good Soldiering, based on principles of inclusion, a platform of trust reflected through exemplary character and adherence to the four Army values: Courage, Initiative, Respect and Teamwork.

New Horizon is Air Force’s link to Pathway to Change, with a focus on the Air Force values of Respect, Excellence, Agility, Dedication, Integrity and Teamwork, in order to revitalise Air Force values to ensure a fair, safe and inclusive work environment.

Defence has built a more inclusive workplace by implementing workplace flexibility and mobility initiatives to build the skills of our people and provide greater options for how people work and contribute to the Defence mission. In the ADF, the Total Workforce Model has provided members more flexible career options, including easier transfer between different patterns of service, such as full-time, part-time and permanent part-time. Our Flexible Work Awareness Campaign provided renewed awareness for managers, supervisors and personnel of the types of flexible work arrangements available to suit individual circumstances and enhance work-life balance.

In March 2019, Defence launched the SBS Cultural Competence Program to assist our people to gain knowledge and build practical skills to improve their cultural awareness. The course assists workplaces to be able to understand cultural differences and foster a more inclusive workplace. Additionally, strong attendance on Defence’s leadership programs has enabled Defence to further embed the One Defence Leadership Behaviours and highlight the importance of workplace inclusion.

In 2018-19, Defence improved its performance culture by revising the APS Performance Management Framework, with an emphasis on quality conversations and recognising and rewarding high performance. The revised policy is consistent with the First Principles Review recommendation that Defence introduce consequences for underperformance and failure to deal with it.

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Members of HMAS Canberra’s aeromedical evacuation team conduct training with an MRH-90 maritime support helicopter during Indo-Pacific Endeavour 2019. (L-R) Australian Army officer Lieutenant Colonel Ben

Butson and Royal Australian Navy officers Lieutenant Lisa Bird and Lieutenant Commander Mitchell Parker.

Navy workforce expansion and retention strategies

progressed along the recruitment pipeline for submariner roles.

Following the success of its leadership development programs, Navy launched a series of Emerging Leaders Forums designed to empower frontline leaders to build strong humanistic approaches into their leadership styles. Keynote external speakers have been engaged to participate in open forums alongside Navy leaders, providing an unprecedented platform for peer-focused professional development. Designed to complement Navy’s formal training, the forums also provide an opportunity for contiguous, real-time feedback to Navy senior leadership from its most influential work group.

The Navy Retention Cell and the Retention Working Group were established to pursue Navy’s retention goals. Among the many retention initiatives developed during the year are systems enabling all Navy personnel to check their progress, raise new ideas and provide continuous feedback.

Workforce challenges represent the most significant strategic risk to delivering Navy’s capability in line with the aims of the 2016 Defence White Paper. Development and retention of personnel is the Chief of Navy’s highest workforce priority and risk, as detailed in Plan Pelorus. In 2018-19, Navy developed and implemented ambitious initiatives to recruit, attract, grow and retain its people.

As Navy prepares to double its submarine fleet, the submariner workforce is anticipated to almost triple by 2050. Accordingly, Defence Force Recruiting launched a successful inaugural National Submarine Tour and Competition, offering a three-day VIP experience for eight winners (one from each state and territory) to HMAS Stirling, Western Australia. Numbers of expressions of interest and submariner applications increased throughout the competition. Subsequently 30 of the combined 33 candidates and competition winners

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Workforce planning This section provides information on average workforce strength during 2018-19. Like other Commonwealth agencies, Defence uses average workforce strength figures for planning and budgeting purposes.

Defence continued to implement the Defence Strategic Workforce Plan 2016-2026. In 2018-19 this saw improvements to ADF recruiting, career management and transition support, as well as progress in managing and professionalising the APS workforce through the use of Job Families. ADF recruiting achieved 92 per cent of recruiting targets for enlistments into the permanent ADF (ab initio and prior service). Women represented 24.2 per cent of enlistments and, combined with retention efforts, this has resulted in 406 more women serving in the ADF (Service Categories 7 and 6) than 12 months ago.

Indigenous representation in the ADF also improved, with over 326 Indigenous personnel recruited. Total Indigenous representation is now at 2.9 per cent. In relation to transition services, Defence implemented individualised career coaching and mentoring services to ADF personnel who transition from Defence, with the aim of assisting members to achieve employment or other forms of meaningful engagement. In addition to the tables in this chapter, further workforce reporting tables can be found at Appendix B.

Staffing levels and statistics Defence budgets for its ADF workforce on an average funded strength basis and for the APS workforce on an average staffing level basis. Defence uses actual full-time equivalent (FTE), which is paid strength on a particular date, to provide the most accurate indicator of current staffing levels. Workforce planning is based on average funded strength and average staffing levels respectively for the financial year and these averages are used to plan for an affordable workforce.

Defence also records some statistical data by headcount. All personnel are counted equally regardless of the number of hours worked. The figures include all personnel recorded as on duty or on leave, full-time or part-time, with or without pay. This statistical basis is used for information by gender, employment categories and employment location. Defence does not base its workforce planning on headcount figures.

Total Workforce Model Defence transitioned to the new service continuum under the Total Workforce Model in 2016-17, which utilises new terminology to describe the pattern of service ADF personnel undertake. Throughout 2017-18 and 2018-19 the focus has been on implementing this new model.

The model offers increased service options, providing flexibility for individuals across their careers and organisational agility for Defence. Under the model, Service Categories are used to group the ADF workforce into similar services that share mutual obligations and conditions of service. Members of the permanent ADF now serve in Service Categories 7 and 6. Reservists serve in Service Categories 5, 4 and 3.

Full implementation of Service Category 6 was completed in late 2018. This included changes to military personnel policy and pay and conditions policy to allow for all patterns of flexible service, including months per year.

During 2018-19 a change program was run across Defence to embed flexible service behaviours within the ADF and to further enable the Total Workforce Model to enhance the delivery of directed capabilities.

Each Service has a target of 2 per cent of the trained workforce accessing formalised flexible work arrangements. As at 30 June 2019, Navy has again exceeded this target for the non-seagoing, trained, permanent and continuous full-time service workforce, with 6.1 per cent; Army has 444 personnel (1.7 per cent) on formal flexible work arrangements and 117 personnel (0.45 per cent) in Service Category 6 serving under a pattern of service other than full time; and Air Force has 6.5 per cent of its trained workforce on formal, documented flexible work arrangements.

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Table 6.1: Total Workforce Model continuum

Previous description Total Workforce Model continuum Additional information

Permanent Full-time service (Service Category 7) Reservists on continuous full-time service

(Service Option C) are included in permanent force funded strength numbers but not in headcount figures.

Other than full-time service (Service Category 6) Members of the permanent forces rendering a pattern of service other than full-time, who are subject to the same obligations as Service Category 7.

Reserves Specific pattern of service and number of days

served (Service Category 5)

Members of the Reserves who provide a contribution to capability that extends across financial years and who have security of tenure for the duration of their approved commitment to serve. They are liable for a call-out. They can undertake continuous full-time service (Service Option C).

Providing service, which includes an availability to serve at short notice (Service Category 4) Members of the Reserves who provide a contingent capability at short notice, with their

notice to move defined by their Service. They are liable for call-out and available to be ‘called for’. They can undertake continuous full-time service (Service Option C).

Available for service or is providing service (Service Category 3) Members of the Reserves who provide a contingent contribution to capability by indicating

their availability to serve or who are rendering service to meet a specified task within a financial year. They are liable for call-out. They can undertake continuous full-time service (Service Option C).

Not providing service but can be called out in specific circumstances if required (Service Category 2)

Members of the Reserve forces who do not render service and have no service obligation. They are liable for call-out.

Defence APS employees on deployment Employees of the Defence APS who are force assigned (Service Category 1)

APS employees of Defence who have been seconded or attached to the ADF and are force assigned on operations.

ADF Gap Year Full-time service (Service Option G)

Australian Defence Force staffing ADF staffing figures for 2017-18 and 2018-19 are shown in Table 6.2.

Table 6.2: Australian Defence Force staffing figures, 2017-18 and 2018-19

ADF staffing measure 1,2 2017-18 2018-19 Variation

For workforce planning purposes

Actual funded strength (paid strength as at 30 June) 58,363 58,554 191

Average funded strength (over the financial year) 58,475 58,380 95

For other statistical data

Permanent headcount (on duty/leave and paid/unpaid) 57,958 58,058 100

Notes:

1. Funded strength figures include the ADF Gap Year. For consistency with other tables in this chapter, the headcount figures do not include the ADF Gap Year, which had 523 participants on 30 June 2018, rising to 567 participants on 30 June 2019.

2. Funded strength figures do not include the Reserve workforce other than those on continuous full-time service, who are paid through the same mechanism as permanent force members. For consistency with other tables in this chapter, the headcount figures do not include Reserve members.

89 CHAPTER 6 | STRATEGIC WORKFORCE MANAGEMENT

Table 6.3 details ADF permanent force average funded strength for 2018-19, which includes ADF Reservists on continuous full-time service. ADF strength was 58,380 in 2018-19, a reduction of 95 from 2017-18. Average funded strength for Reservists on continuous full-time service was 778 (comprising Navy 293, Army 427 and Air Force 58)—an increase of 56 from 2017-18.

Table 6.3: Australian Defence Force permanent force (Service Categories 7 and 6) and Reserves undertaking continuous full-time service (Service Option C), average funded strength

2017-18 Actual

2018-19 Budget Estimate3

2018-19 Revised Estimate4

2018-19 Actual Variation %

Navy 13,818 14,689 14,143 14,176 33 0.2

Army 30,410 30,810 30,223 29,982 -241 -0.8

Air Force 14,247 14,295 14,299 14,222 -77 -0.5

Total average funded strength 58,475 59,794 58,665 58,380 -285 -0.5

Notes:

Figures in this table are average strengths; they are not a headcount.

Reservists undertaking full-time service are included in the figures. Employees on forms of leave without pay are not included.

3. As published in the Portfolio Budget Statements 2018-19.

4. As published in the Portfolio Budget Statements 2019-20.

ADF enlistments and separations In 2018-19 Defence recruited over 7,000 personnel to a combination of permanent and Reserve roles, an increase of 1,763 from 2017-18.

While there are specific areas that require further improvement to attain the desired workforce numbers, overall Defence has achieved 92 per cent in the recruitment of full-time ADF members (ab initio and prior service).

The ADF enlisted 5,717 permanent members, made up of 4,331 men and 1,385 women, for the 12 months to 30 June 2019. This was 476 more enlistments than in 2017-18.

ADF enlistments can be categorised as ab initio (those with no prior military service) or prior service enlistments. Of the 5,717 ADF permanent members enlisted, 1,028 entrants had prior military service in the Reserves (Service Categories 5, 4 and 3), the Gap Year program (Service Option G) or another country, or they had previous permanent force service. There were 4,689 ab initio entrants.

The permanent ADF headcount (Service Categories 7 and 6) increased by 100 in 2018-19. This reflects the net difference between enlistments and separations. The Reserve headcount increased by over 2,000, reflecting the implementation of the Total Workforce Model for how Defence generates personnel capability. This is also reflected in the increased number of days that personnel provided to the Reserve Service.

Tables 6.4 and 6.5 provide comparative information about ADF permanent force (Service Categories 7 and 6) separations over the last two years.

Table 6.4: ADF permanent force (Service Categories 7 and 6), 12-month rolling separation rates as at 30 June 2018 and 30 June 2019

12-month rolling separation rate (%)

30 June 2018 30 June 2019

Navy 9.3 8.1

Army 10.8 11.6

Air Force 6.7 7.3

Total ADF permanent force 9.4 9.7

Note: For improved accuracy, separation rates are calculated using monthly average headcounts, not end of financial year headcount figures.

90 DEFENCE ANNUAL REPORT 2018-19

Table 6.5: ADF permanent force (Service Categories 7 and 6) separations, 2017-18 and 2018-19.

Voluntary separations1 Involuntary separations2

Age

retirement

Trainee

separations Total

2017-18

Navy Officers 136 22 16 48 222

Other ranks 649 252 14 132 1,047

Army Officers 254 97 27 114 492

Other ranks 1,391 858 21 496 2,766

Air Force Officers 195 78 17 35 325

Other ranks 421 159 12 48 640

Total ADF permanent force Officers 585 197 60 197 1,039

Other ranks 2,461 1,269 47 676 4,453

Total 3,046 1,466 107 873 5,492

2018-19

Navy Officers 142 33 8 50 233

Other ranks 558 200 8 128 894

Army Officers 236 117 31 147 531

Other ranks 1,613 857 23 424 2,917

Air Force Officers 219 49 18 45 331

Other ranks 420 204 22 65 711

Total ADF permanent force Officers 597 199 57 242 1,095

Other ranks 2,591 1,261 53 617 4,522

Total 3,188 1,460 110 859 5,617

Notes: Figures in this table show permanent force (Service Categories 7 and 6) substantive headcount numbers. Reserves undertaking continuous full-time service (Service Option C) are not included. Separation groupings are mutually exclusive, and an individual is placed in only one group, with age retirement and trainee separations taking precedence over voluntary and involuntary separations. ADF members commencing leave or leave without pay are not included.

Data for 2017-18 does not match the data provided in the Defence Annual Report 2017-18 due to retrospective transactions.

1. ‘Voluntary’ includes voluntary redundancies and resignations.

2. ‘Involuntary’ primarily comprises members who are medically transitioned from Defence, and personnel who are unsuitable for further duty, who died while serving or who were part of ‘Command Initiated Transfer to the Reserve’.

ADF Reserves The number of days each ADF Reserve member (Service Categories 5, 4 and 3) works in a year can vary substantially depending on personal circumstances and organisational need. To reflect this, Table 6.6 shows both the total number of days served by Reserve members in 2018-19, and the number of Reservists who rendered paid service.

2018-19 saw an increase of 46,101 days’ service when compared to 2017-18 to a total of 1,011,519 (102,574 Navy; 691,758 Army; and 217,187 Air Force), while the number of Reservists undertaking service days increased to 20,551 (1,722 Navy; 15,418 Army; and 3,411 Air Force).

As Table 6.6 shows, the number of days served by Navy, Army and Air Force Reserve members were all greater than forecast (by 8 per cent, 2 per cent and 1 per cent respectively).

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Table 6.6: ADF Reserve paid strength (Service Categories 5, 4 and 3), 2017-18 and 2018-191,2

2017-18 Actual:

days served (members paid)

2018-19 Budget Estimate3: days served

(members paid)

2018-19 Revised Estimate4: days served

(members paid)

2018-19 Actual:

days served (members paid)

Variation: days served (members paid)

Percentage variation days served (members

paid)

Navy 96,121 95,000 95,000 102,574 7,574 8%

(1,642) (1,750) (1,700) (1,722) (22) (1%)

Army 665,774 665,000 675,000 691,758 16,758 2%

(15,030) (14,900) (15,250) (15,418) (168) (1%)

Air Force 203,523 211,000 214,320 217,187 2,867 1%

(3,350) (3,200) (3,200) (3,411) (211) (7%)

Total paid Reserves 965,418 971,000 984,320 1,011,519 27,199 3%

(20,022) (19,850) (20,150) (20,551) (401) (2%)

Notes:

1. Because the number of days or hours worked by Reserve members can vary greatly, figures in this table show the total number of days’ service rendered, with a headcount of members rendering paid service in brackets.

2. This table includes Service Categories 5, 4 and 3. Reservists on continuous full-time service (Service Option C) are not included in this table; they are included in Table 6.3.

3. As published in the Portfolio Budget Statements 2018-19.

4. As published in the Portfolio Budget Statements 2019-20.

Australian Public Service workforce APS staffing figures for 2017-18 and 2018-19 are shown in Table 6.7.

Table 6.7: Australian Public Service staffing figures, 2017-18 and 2018-19

APS staffing measure 2017-18 2018-191 Variation

For workforce planning purposes

Actual FTE (paid strength as at 30 June) 17,728 15,996 -1,732

Average FTE (over the financial year) 17,407 15,925 -1,482

For other statistical data

Headcount figure (on duty/leave, full-time or part-time, paid/unpaid) 18,798 16,902 -1,896

Notes: Figures include both ongoing and non-ongoing APS employees.

1. Figures do not include the Australian Signals Directorate, which became a statutory authority from 1 July 2018.

Table 6.8 shows details of the APS average strength, expressed as average FTE, for 2018-19. APS average strength was 15,925 in 2018-19. This was a decrease of 1,482 from the 2017-18 figure of 17,407.

Table 6.9 shows the actual FTE at the last pay in 2018-19, which at 15,996 was 1,732 less than the final pay figure in 2017-18 of 17,728.

The reduction in APS strength in 2018-19 was primarily due to the creation of the Australian Signals Directorate as a statutory agency on 1 July 2018.

92 DEFENCE ANNUAL REPORT 2018-19

Table 6.8: APS workforce, average full-time equivalent, 2017-18 and 2018-19

2017-18 Actual

2018-19 Budget Estimate1

2018-19 Revised Estimate2

2018-19 Actual Variation %

APS 17,407 16,373 16,010 15,925 -85 -0.5

Notes: These figures are average FTE; they are not a headcount.

1. As published in the Portfolio Budget Statements 2018-19.

2. As published in the Portfolio Budget Statements 2019-20.

Table 6.9: APS workforce, end-of-year equivalent, 2017-18 and 2018-19

2017-18 Actual

2018-19 Budget Estimate1

2018-19 Revised Estimate2

2018-19 Actual Variation %

Total APS 17,728 16,373 16,010 15,996 -14 -0.1

Notes: Figures in this table are actual FTE for the last payday of 2018-19. Employees on forms of leave without pay are not included. The figures differ from Table 6.8 as that table shows the average FTE across the full year.

1. As published in the Portfolio Budget Statements 2018-19.

2. As published in the Portfolio Budget Statements 2019-20.

Australian Public Service recruitment and separations Defence recruited 1,715 APS employees during 2018-19, including 164 as part of the graduate program.

The APS headcount decreased by 1,896, which reflects the net difference between recruitment and separations and includes 1,770 transfers to the Australian Signals Directorate, which is now a separate statutory authority in the Defence portfolio. The majority of separations were due to resignation or retirement from Defence (Table 6.10).

Table 6.10: APS separations, 2017-18 and 2018-19

Voluntary redundancy1 Involuntary separations2

Resignation/ retirement3 Transfers4 Total

2017-185

Senior Executive Service - - 14 6 20

Executive Levels 1 and 2 56 15 283 62 416

Other levels 192 59 866 119 1,236

Total APS 248 74 1,163 187 1,672

2018-19

Senior Executive Service 1 - 11 10 22

Executive Levels 1 and 2 103 16 334 83 536

Other levels 192 66 863 162 1,283

Total APS 296 82 1,208 255 1,841

Notes: Figures in this table show ongoing and non-ongoing headcount numbers (substantive headcount).

1. Voluntary redundancies are those that are program initiated.

2. Involuntary figures include breach of conduct, invalidity retirement, involuntary redundancies, lack of qualifications, non-performance, term probation and death.

3. Resignation/retirement figures include resignation, retirement (minimum age and Senior Executive Service) and completion of non-ongoing.

4. Transfers are those who have transferred to other government departments.

5. Some 2017-18 figures have been adjusted from those reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

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Actual workforce This section provides workforce information as at 30 June 2019 and outlines changes in the workforce that occurred during 2018-19. Tables 6.11 to 6.17 include numbers of people, employment categories, locations and gender information. The number of Star-rank and Senior Executive Service officers are also provided at Tables 6.13 and 6.14. The information is based on headcount.

At 30 June 2019, Defence had a permanent workforce of 74,735, comprising 58,058 permanent ADF members (Service Categories 7 and 6) and 16,677 ongoing APS employees. An additional 225 APS employees were employed on a non-ongoing basis (Table 6.16).

The Reserve (Service Categories 5, 4 and 3) headcount increased by 2,157 to 27,483 (including those members on continuous full-time service (Service Option C)). The total ADF workforce was 85,541, and included 17,547 Navy permanent and Reserve members, 48,249 Army permanent and Reserve members, and 19,745 Air Force permanent and Reserve members. At 30 June 2019, 1,138 Reservists were also Defence APS employees.

Table 6.11: Defence workforce headcount as at 30 June 2018 and 30 June 2019

Navy Army Air Force ADF1 APS2

Headcount 30 June 2018 13,650 29,996 14,312 57,958 18,798

Additions 1,683 2,963 1,071 5,717 1,715

Separations 1,127 3,448 1,042 5,617 1,841

Machinery of Government changes3 - - - - 1,770

Headcount 30 June 2019 14,206 29,511 14,341 58,058 16,902

Change 556 -485 29 100 -1,896

Notes: Figures in this table show substantive headcount numbers.

1. ADF figures are for permanent members (Service Categories 7 and 6) and do not include Reserves (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

2. APS figures include paid and unpaid employees, which covers full-time, part-time, suspended, ongoing and non-ongoing employees.

3. Movement of employees due to the Australian Signals Directorate becoming a separate statutory authority within the Defence portfolio on 1 July 2018.

Table 6.12: Defence workforce by employment location as at 30 June 2019

NSW VIC1 QLD SA WA TAS NT ACT2 O/S3 Total

Permanent force4

Navy 6,243 1,876 810 133 2,517 22 577 1,826 202 14,206

Army 5,144 3,072 12,272 1,876 904 56 2,912 2,952 323 29,511

Air Force 4,265 1,082 3,378 1,899 299 11 923 2,160 324 14,341

Subtotal 15,652 6,030 16,460 3,908 3,720 89 4,412 6,938 849 58,058

Reserves5

Navy 1,011 286 479 98 277 82 87 1,013 8 3,341

Army 5,242 3,290 4,805 1,496 1,863 504 567 966 5 18,738

Air Force 1,386 421 1,485 560 238 65 110 1,139 - 5,404

Subtotal 7,639 3,997 6,769 2,154 2,378 651 764 3,118 13 27,483

Total ADF 23,291 10,027 23,229 6,062 6,098 740 5,176 10,056 862 85,541

APS6

Total APS 2,505 3,476 1,236 2,071 460 71 210 6,861 12 16,902

Notes: Figures in this table show substantive headcount numbers.

1. Victorian figures include individuals located in Albury, New South Wales.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (New South Wales) and Bungendore (New South Wales).

94 DEFENCE ANNUAL REPORT 2018-19

3. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

4. Permanent force (Service Categories 7 and 6) does not include ADF Gap Year participants (Service Option G).

5. Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

6. Includes paid and unpaid employees, which covers full-time, part-time, ongoing and non-ongoing employees. Figures for the APS include 1,138 APS employees who are also counted as Reserve members.

Table 6.13: Star-ranked officers as at 30 June 2019

Star-ranked officers 1 2018-19 engagements2 2018-19 separations

Men Women Total Men Women Total Men Women Total

Four-star

Navy - - - - - - - - -

Army 1 - 1 1 - 1 - - -

Air Force - - - - - - 1 - 1

Three-star

Navy 2 - 2 1 - 1 2 - 2

Army 3 - 3 2 - 2 - - -

Air Force 3 - 3 1 - 1 - - -

Two-star

Navy 10 1 11 2 1 3 4 - 4

Army 15 3 18 3 2 5 3 - 3

Air Force 8 2 10 2 - 2 2 - 2

One-star

Navy 33 5 38 6 - 6 5 1 6

Army 51 7 58 8 1 9 6 1 7

Air Force 33 4 37 4 3 7 4 1 5

Total 159 22 181 30 7 37 27 3 30

Notes:

1. Figures in this table show members in Service Categories 7 and 6 (Permanent Service), at their substantive rank.

2. Figures in this table show substantive promotions only.

Australian Army soldiers from 2nd Commando Regiment move out towards an off-shore target during counter-terrorism training in Sydney in May 2019.

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Table 6.14: APS Senior Executive Service employees as at 30 June 2019

Total Senior Executive Service1 2018-19 engagements2,3 2018-19 separations2,4

Men Women Total Men Women Total Men Women Total

Senior Executive

Secretary 1 - 1 - - - - - -

Band 3 5 3 8 2 1 3 3 - 3

Band 25 18 8 26 2 2 4 5 2 7

Band 16 49 40 89 7 9 16 8 3 11

Chief of Division

Grade 2 8 2 10 - - - - 1 1

Grade 1 2 - 2 - - - - - -

Senior Executive

Relief staff7 11 14 25 - - - - - -

Total 94 67 161 11 12 23 16 6 22

Notes:

1. Figures in this table show employee numbers at their substantive level, but not employees on long-term leave (4).

2. Gains and losses do not reflect movement of officers between levels in each of the Senior Executive Service and Chief of Division streams.

3. Engagement figures include new engagements and transfers from other agencies only.

4. Separation figures include resignations, retirements, redundancies, and promotions and transfers to other departments.

5. Senior Executive Service Band 2 includes Medical Officer Grade 6.

6. Senior Executive Service Band 1 includes Medical Officer Grade 5.

7. Relief staff indicates non-Senior Executive Service employees on long-term acting arrangements in Senior Executive Service / Chief of Division positions that are vacant, or where the incumbents are taking leave, acting in higher positions or undertaking other duties.

Table 6.15: APS Executive Level employees and below, by gender and classification, as at 30 June 2019

30 June 2019 headcount 2018-19 engagements 2018-19 separations

Men Women Total Men Women Total Men Women Total

Executive Level

Executive Level 2 1,125 444 1,569 40 39 79 51 147 198

Executive Level 1 2,149 1,227 3,376 102 81 183 126 212 338

Subtotal 3,274 1,671 4,945 142 120 262 177 359 536

Other staff

APS Level 6 2,828 2,027 4,855 254 204 458 177 292 469

APS Level 5 1,530 1,311 2,841 140 148 288 110 183 293

APS Level 4 747 1,018 1,765 73 141 214 91 90 181

APS Level 3 449 886 1,335 55 97 152 108 62 170

APS Level 2 362 418 780 127 100 227 61 56 117

APS Level 1 132 106 238 43 46 89 28 25 53

Subtotal 6,048 5,766 11,814 692 736 1,428 575 708 1,283

Total APS 9,322 7,437 16,759 834 856 1,690 752 1,067 1,819

Note: Figures in this table show ongoing and non-ongoing employee substantive headcount numbers. Figures include paid, unpaid, full-time and part-time employees. Figures exclude SES employees. Figures exclude employees who do not exclusively identify as either male or female.

96 DEFENCE ANNUAL REPORT 2018-19

Table 6.16: APS employees by gender as at 30 June 2018 and 30 June 2019

30 June 20181 30 June 2019

Full-time Part-time2 Total Full-time Part-time2 Total

Ongoing employees

Men 10,461 242 10,703 9,080 206 9,286

Women 6,796 1,080 7,876 6,422 967 7,389

Unspecified 3 - 1 1 1 1 2

Total ongoing 17,257 1,323 18,580 15,503 1,174 16,677

Non-ongoing employees

Men 114 15 129 110 13 123

Women 81 8 89 86 15 101

Unspecified 3 - - - 1 - 1

Total non-ongoing 195 23 218 197 28 225

Total APS employees

Men 10,575 257 10,832 9,190 219 9,409

Women 6,877 1,088 7,965 6,508 982 7,490

Unspecified 3 - 1 1 2 1 3

Total 17,452 1,346 18,798 15,700 1,202 16,902

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees.

1. Some 30 June 2018 figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

2. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions.

3. Figures include employees who have identified as indeterminate, intersex or unspecified.

Table 6.17: ADF permanent (Service Categories 7 and 6), Gap Year (Service Option G) and Reserve forces (Service Categories 5, 4 and 3) and APS by gender as at 30 June 2018 and 30 June 2019

30 June 20181 30 June 2019

Men % Women % Men % Women %

Navy permanent2

Trained force

Officers 2,077 15.2 532 3.9 2,072 14.6 549 3.9

Other ranks 7,359 53.9 1,910 14.0 7,366 51.9 2,023 14.2

Training force

Officers 581 4.3 173 1.3 651 4.6 214 1.5

Other ranks 695 5.1 322 2.4 1,020 7.2 309 2.2

Total Navy 10,712 78.5 2,937 21.5 11,109 78.2 3,095 21.8

Army permanent2

Training force

Officers 4,622 15.4 867 2.9 4,565 15.5 900 3.0

Other ranks 18,466 61.6 2,574 8.6 17,844 60.5 2,725 9.2

Training force

Officers 768 2.6 249 0.8 770 2.6 228 0.8

Other ranks 1,855 6.2 593 2.0 2,011 6.8 466 1.6

Total Army 25,711 85.7 4,283 14.3 25,190 85.4 4,319 14.6

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30 June 20181 30 June 2019

Men % Women % Men % Women %

Air Force permanent2

Training force

Officers 3,367 23.5 986 6.9 3,368 23.5 1,023 7.1

Other ranks 6,918 48.3 1,719 12.0 6,712 46.8 1,865 13.0

Training force

Officers 596 4.2 226 1.6 608 4.2 245 1.7

Other ranks 266 1.9 233 1.6 276 1.9 243 1.7

Total Air Force 11,147 77.9 3,164 22.1 10,964 76.5 3,376 23.5

ADF permanent2

Training force

Officers 10,066 17.4 2,385 4.1 10,005 17.2 2,472 4.3

Other ranks 32,743 56.5 6,203 10.7 31,922 55.0 6,613 11.4

Training force

Officers 1,945 3.4 648 1.1 2,029 3.5 687 1.2

Other ranks 2,816 4.9 1,148 2.0 3,307 5.7 1,018 1.8

Total ADF permanent 47,570 82.1 10,384 17.9 47,263 81.4 10,790 18.6

ADF Gap Year

Navy 43 8.2 55 10.5 53 9.4 74 13.1

Army 192 36.7 105 20.1 199 35.2 82 14.5

Air Force 64 12.2 64 12.2 73 12.9 85 15.0

Total ADF Gap Year 299 57.2 224 42.8 325 57.4 241 42.6

Reserves2,3

Navy 2,258 8.9 668 2.6 2,583 9.4 758 2.8

Army 14,793 58.4 2,548 10.1 15,920 57.9 2,817 10.3

Air Force 4,013 15.8 1,046 4.1 4,285 15.6 1,119 4.1

Total Reserves 21,064 83.2 4,262 16.8 22,788 82.9 4,694 17.1

APS2,4

Total APS 10,832 57.6 7,965 42.4 9,409 55.7 7,490 44.3

Notes: Figures in this table show substantive headcount numbers. Percentage figures are calculated within each section, so that the subtotal for each section adds to 100 per cent. Percentages may not sum due to rounding.

1. Some 30 June 2018 figures have been adjusted from those reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

2. Figures exclude employees who do not exclusively identify as either male or female.

3. Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

4. Figures include paid, unpaid, full-time, part-time, ongoing and non-ongoing employees. The 30 June 2019 figures for the APS include 1,138 APS employees who are also counted as Reserve members.

ADF Gap Year program A total of 570 participants enlisted in the 2018 ADF Gap Year program (Navy, 100; Army, 330; Air Force, 140). A total of 593 participants have enlisted in the 2019 program (Navy, 125; Army, 300; Air Force, 167). As at 30 June 2019, 11 members from the 2018 program and 556 members from the 2019 program (a total of 567) were still participating.

98 DEFENCE ANNUAL REPORT 2018-19

Table 6.18: ADF Gap Year (Service Option G) participants as at 30 June 2019

Navy Army Air Force ADF Total

Men

Women

Indeterminate

Men

Women

Indeterminate

Men

Women

Indeterminate

Men

Women

Indeterminate

2018 program

Participants 45 55 - 216 114 - 71 69 - 332 238 - 570

Separated or inactive Reserves

20 25 - 59 18 - 11 14 - 90 57 - 147

Transferred to permanent ADF 19 29 - 119 58 - 55 51 - 193 138 - 331

Transferred to active Reserves

- - - 37 37 - 4 3 - 41 40 - 11

Still participating in 2018 program

6 1 - 1 1 - 1 1 - 8 3 - 11

2019 program

Participants 50 75 - 212 88 - 78 89 1 340 252 1 593

Separated or inactive Reserves

1 1 - 12 6 - 3 4 - 16 11 - 27

Transferred to permanent ADF 2 1 - 1 - - 3 1 - 6 2 - 8

Transferred to active Reserves

- - - 1 1 - 1 - - 1 1 - 2

Still participating in 2019 program

47 73 - 198 81 - 72 84 1 317 238 1 556

Reserve Service protection The Defence Legislation Amendment Bill 2018 sought to amend the Defence Reserve Service (Protection) Act 2001 (DRSP Act) to move the complaint, investigation and mediation scheme from regulations to the DRSP Act, while simplifying and improving these processes.

The DRSP Act provides for the protection of ADF Reserve members in their civilian employment and education. The Act mitigates some of the employment and financial disadvantages that Reserve members may face when rendering Defence service, making it easier to undertake Defence service, and so enhancing Defence capability. Under the DRSP Act, employers and education providers are prohibited from discriminating against Reserve members or hindering them from rendering Defence service. A Reserve member rendering Defence service is entitled to be absent from their employment during that service, and must be permitted to resume work after their Defence service ends. Education providers are required to make reasonable adjustments to accommodate a Reserve member’s Defence service. Under the DRSP Act, employers, education providers and others may be subject to criminal prosecution or civil penalties. An affected person may bring an action for compensation or an injunction in a court, or Defence may bring such an action on behalf of the affected person.

The amendments establish a requirement for the Chief of the Defence Force to prepare a report in relation to the administration and operation of the DRSP Act, for inclusion in the Defence Annual Report each year.

The Defence Legislation Amendment Bill 2018 came into effect on 29 March 2019. On 15 April 2019, phone calls to the Employer Support and Service Protection section migrated to the 1800-DEFENCE call centre. This migration provides ADF Reservists and employers with extended access to advice (call centre hours are Monday to Friday 0700-2200, Saturday 0900-1700), and Defence, with accurate data collection on phone enquiries regarding issues related to the DRSP Act.

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Between 15 April and 30 June 2019, 62 calls were received regarding enquiries about the DRSP Act. Sixteen calls were resolved at the time of contact through the provision of general information to do with protections and obligations provided by the DRSP Act. Forty-six enquiries were referred to Employer Support and Service Protection staff for specific advice; 10 of these enquiries were resolved within two business days and the remainder within eight business days.

During Financial Year 2018-19 there has been a greater emphasis placed on education and awareness presentations to ADF Reserve members and employers of Reservists. This has significantly reduced the number of enquiries made to Defence. These presentations have targeted recurring issues, in an effort to ensure that ADF Reservists and their employers are able to have more informed discussions about Defence service and the impacts on the business.

ADF Cadets Throughout 2018-19 Defence continued to deliver and administer several youth development and engagement activities. Foremost among these is the Australian Defence Force Cadets (ADF Cadets) program.

ADF Cadets is a personal development program for young people, supported by the ADF in cooperation with the community. The program benefits the nation by developing the capacity of young Australians to contribute to society. It fosters an interest in ADF careers and develops ongoing support for Defence.

ADF Cadets comprises three Cadet organisations aligned to and administered by the respective Services, Navy, Army and Air Force; and ADF Cadets Headquarters, which is tasked with the development and governance of common elements of the three organisations’ programs.

Approximately 25,700 Cadets are currently enrolled in the three Cadet programs; 4,500 officers and instructors of Cadets and ‘approved helpers’ supervise and support the young people in the programs; and there are 564 ADF Cadets units across all states and territories.

2018-19 highlights The One Cadet reform program was initiated in October 2016. The program aims to standardise the governance and administration of common elements of the three ADF Cadets organisations’ programs, with an emphasis on youth safety, training coordination, communications and enterprise support.

Throughout 2018-19, Defence continued to standardise common elements of the three Cadet programs, including the transition of all three ADF Cadets organisations onto the same information technology platform. This work is continuing.

A number of combined ADF Cadets activities took place during 2018-19 One Cadet Reform program. Sixteen cadets from Australian Navy Cadets, Australian Army Cadets and Australian Air Force Cadets represented Australia at the commemorations for the 100th anniversary of the Battle of Amiens and the last 100 days of World War I. They were joined by youths from Canada, France, the United Kingdom and the United States of America during the period 6-9 August 2018.

The Cadets attended a service at Amiens Cathedral on 8 August 2018, and visited the Somme 1916 battlefields. These activities enabled the Cadets to interact with young people from other nations, forming a multinational group for a mix of classroom and ‘hands-on’ learning activities.

On 10 November 2018, the British High Commission in Canberra hosted a commemorative gala dinner to mark the 100 year anniversary of the Armistice that concluded the Great War. Representatives from Australian Army Cadets and Australian Air Force Cadets attended what was a fitting tribute to the fallen.

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Australian Navy Cadets Throughout 2018-19 the Australian Navy Cadets Directorate progressed a range of program-specific initiatives. This included a revision of Australian Navy Cadet Instructor training packages; ongoing replacements for watercraft including new power boats and sail craft; improvements to facilities; and increased participation in major facilities redevelopments.

The Royal Australian Navy continues to provide support for annual and weekend camps, sailing regattas and national shooting competitions. The Navy Cadets Directorate is also working closely with Navy Fleet Support Units to yield mutual benefits in watercraft maintenance and repairs.

Several Australian Navy Cadets maritime training centres are being established across Australia, consistent with the Australian Navy Cadet Strategy to 2021. The maritime training centres will be where Navy assets and qualified Australian Navy Cadets instructors focus their efforts to maximise cadet throughput and maritime training outcomes. There has been an increase in the numbers of cadets who have been given sea-time in MV Sycamore, a vessel contracted for Navy training. By continuing to broaden our maritime outlook, Australian Navy Cadets Directorate has engaged the Australian Maritime College and Navy Shipbuilding College to identify opportunities to increase cadet exposure to the maritime industry and associated vocations. There have been many new opportunities and avenues for cadets to interact with the Navy, which includes overnight sea-rides, ship visits and supporting ceremonial events.

Australian Army Cadets In 2018-19 the Australian Army Cadets continued its transformation program along the themes of ‘grow, professionalise and modernise’. The Australian Army Cadets is a key part of the Army’s community engagement program. Transformation entered its second phase focusing on future development of adult leader courses and longitudinal studies into Cadets joining Defence. This financial year saw minimal growth in adult volunteer numbers (from 1,148 to 1,165) and good growth in cadet numbers (from 16,434 to 17,130). Growth also included an increased percentage of female cadets (from 21 per cent to 22 per cent) and Indigenous cadets (from 2 per cent to 3 per cent).

Australian Air Force Cadets During 2018-19 the Royal Australian Air Force successfully introduced into service two of eight modern training aircraft to replace ageing leased aircraft, thereby significantly enhancing the aviation capability within the Australian Air Force Cadets. This allows cadets increased opportunities to undertake a range of aviation activities and experiences, including the opportunity to obtain civil pilot qualifications. A new strategic plan, 2023 Enterprise Campaign Plan, was introduced, with a key element of the plan being to establish a single National Headquarters. The structure brings together Air Force staff and elements of the Cadet Executive Management Team into one virtual headquarters-level organisation to administer the Australian Air Force Cadets while reducing process duplication, decision time and operating costs.

Recruitment activities As identified in the Defence Strategic Workforce Plan 2016-2026, Defence must grow and reshape the workforce to meet new capability requirements, particularly in areas such as intelligence, cyber, engineering and specialist skills to enable the national shipbuilding enterprise.

Targeted recruitment and retention efforts are ongoing in relation to a number of engineering, science, health, naval (such as submariners) and intelligence related occupations.

The following recruitment-related activities have been progressed in 2018-19:

• Strategies for recruitment of Army women and a plan for recruiting into the science, technology, engineering and mathematics roles have been released and are being implemented.

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• Additional marketing material was launched to market aimed to capitalise on the success of the existing Army brand campaign and overcome some perceived barriers to people, especially women and mothers, when contemplating an Army career.

• A submariner competition was conducted in February 2019 to encourage potential candidates to consider a career as a submariner in the Navy. Winners were invited to HMAS Stirling to board a submarine and experience life as a submariner.

• The Female Initial Training Preparation (FIT Prep) program, previously the Army Preconditioning Program, was refined to better prepare women for commencement and successful completion of initial military training.

• Tours of Navy ships and establishments were conducted, including Navy-oriented information sessions to familiarise potential applicants with Navy opportunities.

• Flexibility in the Navy intake timing process was introduced to adjust for late notice recruiting opportunities (known as recoup opportunities).

• Defence began partnering with the Department of Industry, Innovation and Science, through Questacon, for the delivery of the ‘Engineering is Elementary’ program in 2019-20, which is delivered through teachers and is designed to encourage all children—including those from under-represented groups—to see the values inherent in STEM and to envision themselves as potential engineers.

• Defence has continued to implement the APS Recruiting Strategy with the introduction of an innovative fast-tracking selection approach that includes online selection tools.

• A dedicated Naval Construction APS graduate entry stream has been introduced.

• Customer Recruitment Account Managers have been introduced to support faster APS recruitment for critical positions.

• Online mechanisms, including an APS Candidate Portal, a temporary employment register and a Naval Construction website, have been further developed.

• The science, technology, engineering and mathematics cadetship program has been expanded and now includes 35 APS cadets within the Defence Science and Technology Group.

As a result of these activities, ADF recruitment to the permanent workforce increased to 5717 in 2018-19, compared to 5237 enlistments in 2017-18. This was 91.6 per cent of the 2018-19 target of 6226. Recruitment to the Reserves was 1614 in 2018-19, being 84.8 per cent of the target of 1903. In 2017-18, ADF permanent force enlistments was 93.6 per cent of the target of 5,593, and for the Reserve force was 84.0 per cent of the full-year target of 2,345.

Defence Graduate Program The Defence Graduate Program continues to deliver a vital contribution to addressing Defence workforce challenges, attracting an ever increasing number of applications in 2018-19. Graduates are recruited across 14 career streams, including engineering, science, policy, intelligence and corporate pathways. In 2018-19, 215 graduates entered the program, representing 15 per cent of the total ongoing APS workforce recruited to Defence. Approximately 30 per cent of those graduates were recruited to STEM-specific career pathways within Defence, which remains a key priority for the portfolio.

Defence continues to build the STEM workforce within the Defence Science and Technology Pathway and successfully recruited 25 graduates in 2018-19, with a target of 30 in 2019-20. In addition the Maritime Engineering and Naval Construction Pathway was introduced into the program in 2018-19. The pathway aims to address the demand for a talent pipeline into the Naval Shipbuilding domain within Defence. Beginning to address this challenge was successfully achieved, with 28 engineering graduates participating in the Naval Construction Pathway in 2018-19.

Remuneration and benefits Defence remuneration is a key component of the Defence employment package. It attracts people to join Defence, encourages them to develop personally and professionally and ensures they choose to remain in Defence. The employment offer provides for fair and competitive remuneration, consistent with the parameters laid down by the Government.

The diverse remuneration structures of the ADF and APS are explained further in this section.

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Australian Defence Force members The independent Defence Force Remuneration Tribunal, established under section 58G of the Defence Act 1903, is responsible for setting salary and salary-related allowances for ADF members.

The 2017-2020 Australian Defence Force Workplace Remuneration Arrangement is a key component of the ADF remuneration framework. It is part of the ADF remuneration initiative aimed at attracting and retaining military personnel. The arrangement forms a significant part of ADF members’ total employment package.

The arrangement increases salary and salary-related allowances in return for enhanced Defence capability. Other conditions of service are determined by the Minister for Defence under section 58B of the Defence Act. The current arrangement came into effect on 2 November 2017. Table 6.19 details salary ranges for permanent ADF members as at 30 June 2019.

Table 6.19: Permanent Australian Defence Force salary ranges as at 30 June 2019

Rank Salary range ($)

Minimum Maximum

Officer of the permanent force (equivalent)

Lieutenant General (E)1 $405,780 $480,994

Major General (E)2 $240,307 $293,053

Brigadier (E)2, 3 $197,157 $267,988

Colonel (E)2, 3, 5 $150,728 $255,843

Lieutenant Colonel (E)2, 4 $128,194 $243,452

Major (E)2, 4 $89,800 $219,308

Captain (E)2, 4 $70,334 $208,159

Lieutenant (E)5 $58,467 $122,567

2nd Lieutenant (E)5 $54,626 $114,411

Other rank of the permanent force (equivalent)

Warrant Officer Class 1 (E) $79,645 $122,581

Warrant Officer Class 2 (E) $73,356 $113,583

Staff Sergeant (E) $70,896 $109,575

Sergeant (E) $63,389 $104,792

Corporal (E) $54,776 $95,824

Lance Corporal (E) $50,387 $89,065

Private Proficient (E) $49,346 $88,024

Private (E) $48,325 $87,008

Notes:

1. Some Lieutenant General (E) rates are set by the Remuneration Tribunal.

2. Includes rates for Medical Officers.

3. Includes rates for Chaplains.

4. Excludes Medical Procedural Specialist.

5. Includes transitional rates for other rank appointed as officer.

Australian Public Service employees Non-Senior Executive Service Australian Public Service (APS) employees have their terms and conditions of employment set out in an Enterprise Agreement made under the Fair Work Act 2009. The agreement is developed through consultation with employees and their representatives and is negotiated consistent with legislation and the Government’s bargaining policy.

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Table 6.20 details Defence APS salary rates as at 30 June 2019. The majority of Defence employees receive salaries within the standard ranges. However, the Enterprise Agreement allows for remuneration and other benefits to be varied so that Defence can develop, attract and retain selected employees with the necessary skills and knowledge to deliver capability. Table 6.21 shows the number of Employment Arrangements for SES and non-SES employees.

Table 6.20: Australian Public Service salary ranges as at 30 June 2019

Classification Minimum Maximum Individual arrangements1

Senior Executive Service salary arrangements

SES Band 3 $247,687 $295,107 $540,600

SES Band 22 $199,189 $248,879 $326,400

SES Band 13 $164,152 $210,047 $237,462

Non-Senior Executive Service salary arrangements4

Minimum Maximum Special pay points

Executive Level 2 $118,376 $142,087 $190,2305

Executive Level 1 $101,955 $115,005 $142,0876

APS Level 6 $80,669 $92,150 $94,9307

APS Level 5 $73,636 $78,873 $79,8418

APS Level 4 $67,100 $73,256 -

APS Level 3 $59,237 $65,270 -

APS Level 2 $52,004 $58,463 $59,0659

APS Level 1 $45,952 $51,583 -

Notes:

1. Maximum salary paid under an individual remuneration arrangement shown.

2. Includes rates for Chief of Division Grade 2 and Medical Officer Class 6.

3. Includes rate for Chief of Division Grade 1 and Medical Officer Class 5.

4. Salary ranges provided under the Defence Enterprise Agreement 2017-2020.

5. Maximum rate for Executive Level 2.1, Executive Level 2.2, Legal and Science specialist structures and Medical Officer Class 3 and 4.

6. Maximum rate for Public Affairs and Legal specialist structures and Medical Officer Class 1 and 2.

7. Maximum rate for Public Affairs Grade 2 retained pay point.

8. Maximum rate for Senior Technical Officer Grade 1 retained pay point.

9. Maximum rate for Technical Assistant Grade 2 retained pay point.

Table 6.21: Employment Arrangements of SES and Non-SES employees

Arrangement title SES Non-SES Total

Enterprise Agreement - 16,762 16,762

Section 24(1) Public Service Act Determination 140 - 140

Total 140 16,762 16,902

APS benefits All Defence APS employees enjoy a range of non-salary-related benefits. These include generous leave entitlements and access to flexible working arrangements such as flex time, part-time work and teleworking. Defence invests heavily in training and development of our staff and has a number of formal and informal schemes to recognise exemplary performance and achievements.

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Senior Leadership Group During the reporting period ended 30 June 2019, Defence had 26 executives who meet the definition of key management personnel (KMP). Their names and the length of term as KMP are summarised below:

Table 6.22: Key management personnel, 2018-19

Name Position Term as KMP

Mr Greg Moriarty Secretary of Defence Full-year

ACM Mark Binskin (Ret) Chief of the Defence Force Part-year—Ceased 6/07/2018

GEN Angus Campbell Chief of the Defence Force Part-year—Appointed CDF 7/07/2018

Ceased Chief of Army 2/07/2018

VADM Raymond Griggs, RAN (Ret) Vice Chief of the Defence Force Part-year—Ceased 6/07/2018

VADM David Johnston, RAN Vice Chief of the Defence Force Part-year—Appointed 7/07/2018

Ms Rebecca Skinner Associate Secretary Full-year

VADM Timothy Barrett, RAN (Ret) Chief of Navy Part-year—Ceased 6/07/2018

VADM Michael Noonan, RAN Chief of Navy Part-year—Appointed 7/07/2018

LTGEN Richard Burr Chief of Army Part-year—Appointed 3/07/2018

AIRMSHL Gavin Davies Chief of Air Force Full-year

Mr Steven Groves Chief Finance Officer Full-year

Mr Stephen Pearson Chief Information Officer Full-year

Mr Peter Tesch Deputy Secretary Strategic Policy & Intelligence Part-year—Appointed 18/04/2019

Mr Thomas Hamilton Deputy Secretary Strategic Policy & Intelligence Part-year—13/08/2018 to 31/05/2019

Mr Scott Dewar Deputy Secretary Strategic Policy & Intelligence Part-year—Ceased 10/08/2018

AIRMSHL Melvin Hupfeld Chief Joint Operations Part-year—Ceased 19/06/2019

LTGEN Gregory Bilton Chief Joint Operations Part-year—Appointed 28/06/2019

Ms Justine Greig Deputy Secretary Defence People Full-year

AIRMSHL Warren McDonald Chief of Joint Capabilities Full-year

Mr Steven Grzeskowiak Deputy Secretary Estate & Infrastructure Full-year

Prof Tanya Monro Chief Defence Scientist Part-year—Appointed 12/03/2019

Dr Todd Mansell Chief Defence Scientist Part-year—6/11/2018 to 27/03/2019

Dr Alexander Zelinsky Chief Defence Scientist Part-year—Ceased 16/11/2018

Mr Anthony Fraser Deputy Secretary Capability Acquisition & Sustainment Part-year—Appointed 5/11/2018

Mr Kim Gillis Deputy Secretary Capability Acquisition &

Sustainment

Part-year—Ceased 07/09/2018

Mr Stephen Johnson Deputy Secretary National Naval Shipbuilding Part-year—Ceased 31/05/2019

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Table 6.23: Key management personnel remuneration, 2018-19

$

Short-term benefits:

Base salary1 8,148,228

Bonus 31,274

Other benefits and allowances 133,464

Total short-term benefits 8,312,966

Superannuation 1,639,908

Total post-employment benefits 1,639,908

Other long-term benefits

Long service leave 144,356

Total other long-term benefits 144,356

Termination benefits -

Total key management personnel remuneration 10,097,230

Note:

1. The above key management personnel remuneration excludes the remuneration and other benefits of the Minister for Defence, Minister for Defence Industry, Minister for Veterans and Defence Personnel and Assistant Defence Minister. The remuneration and other benefits for these Ministers are not paid by the Department of Defence.

Australian Defence Force All ADF senior officers (excluding statutory/public office holders) are remunerated under the 2017-2020 Australian Defence Force Workplace Remuneration Arrangement. Other non-pay-related conditions of service are determined by the Minister for Defence under section 58B of the Defence Act 1903.

Statutory officers Statutory office holders, including the Secretary and the Chief of the Defence Force, are remunerated under determinations decided by the independent Remuneration Tribunal under the Remuneration Tribunal Act 1973.

Australian Public Service Senior Executive Service terms and conditions of employment are set by a single determination made under section 24(1) of the Public Service Act 1999. The determination is supplemented on an individual basis by a common law agreement covering remuneration.

Australian Army soldier Lance Corporal Georgia Beard at Victoria Barracks, Sydney,

during the Forces Command Soldier of the Year activity for 2018.

106 DEFENCE ANNUAL REPORT 2018-19

Learning for the future—revolutionising Defence education and training

A future-ready ADF depends on well-educated officers, sailors, soldiers and airmen and airwomen, with well-educated APS colleagues working alongside them. Education and training are critical to the intellectual development of our people. Defence’s approach to this has transformed from our heritage model of residential and episodic education and training to a continuous, accessible and adaptive approach to learning.

Leading this transformation is the Australian Defence College, with its four-pillared strategy of curriculum evolution, organisational reform, infrastructure development, and academic integration and outreach across the national security community. In 2019, as part of this effort, the Australian War College was opened to deliver a unified approach to professional military education, leaving the ADF Training Centre to focus on individual training.

Complementing the organisational reform is the implementation of more flexible online learning. An important part of this has been the expansion of the Australian Defence Electronic Learning Environment to over 60,000 subscribers, providing about two-thirds of Defence people with online learning opportunities. A new curated self-learning platform, Forge, provides a vehicle for self-paced learning, encouraging ADF and Defence APS members to own their journey to professional mastery.

The Australian War College ADF Transition and Civil Recognition Project, which began in 2019, is ensuring that ADF members’ formal training is appropriately recognised with civil qualifications as they move into civilian roles. The project team has helped hundreds of transitioning members to better understand their value to civilian employers.

In a rapidly changing geopolitical and technological environment, this approach to education and training is integral to ensuring that Defence has a well-educated, well-trained workforce that is prepared for what we know and can adapt to the unknown.

Midshipman Matthew Jennings, Officer Cadet Katie Hacker and Officer Cadet Lily Lancaster in the state-of-the-art cyber facility at UNSW

Canberra at the Australian Defence Force Academy.

IMAGE DIGITALLY ALTERED: Screens were blank at time of photograph

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Performance pay Non-Senior Executive Service APS employees move through their salary range subject to fully effective or better performance. Employees at the top of the range receive a 1 per cent lump sum bonus or a minimum payment of $725.00, whichever is the greater. This bonus is considered a form of performance pay.

Senior Executive Service employees may have their salary increased on the outcome of their annual performance appraisal. A Senior Executive Service employee may also be paid a bonus at the discretion of the Secretary as a reward for exceptional performance.

Performance-based pay is not a feature of any existing ADF remuneration framework. Career development opportunities, including promotion, are the key recognitions of performance.

Table 6.24: APS employee performance bonus payments 2018-19

Classification Number of employees Aggregated amount Average amount

Trainee 12 $8,700.00 $725.00

APS Level 1 43 $30,600.00 $712.00

APS Level 2 550 $387,726.00 $705.00

APS Level 3 1,149 $798,766.00 $695.00

APS Level 4 1,174 $812,756.00 $692.00

APS Level 5 2,000 $1,519,586.00 $759.00

APS Level 6 3,429 $3,059,579.00 $889.00

Executive Level 1 2,598 $2,915,074.00 $1,122.00

Executive Level 2 1,135 $1,626,955.00 $1,433.00

TOTAL 12,100 $11,159,738.00 $922.00

Notes:

1. Performance cycle is 1 September - 31 August.

2. There were no performance payments made to Senior Executive Service employees.

3. Averages for the APS1-APS4 classifications reflect amounts below the minimum bonus payment. This occurs for part-time employees and those employees within 1 per cent of the top of the salary range who receive both performance progression and a partial lump sum payment.

Support services Defence provides a range of support for ADF members, their families and Defence APS employees, such as crisis and bereavement support, assistance to families managing the opportunities and challenges associated with military life, supporting members and their families when the member transitions from military to civilian life, and a number of health and wellbeing initiatives. These support services are discussed further in this section.

Defence continues to work closely with the Department of Veterans’ Affairs to deliver the best possible health and wellbeing outcomes for current and former members of the ADF and their families. These outcomes have been delivered through the Transition Transformation Program.

ADF members and their families Defence provides a broad range of programs and services that assist Defence families make the most of the challenges and opportunities provided by the military way of life. This includes information and advice, intervention and counselling, referrals to specialised community services, and assistance and support in crisis situations. Specific support available to families includes:

• Support in adjusting to illness and injury

• Counselling and support for difficult personal or family issues

• Information about and referral to community services, for example parenting support, family counselling services and relationship counselling

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• Information on benefits, entitlements and practice assistance, for example Centrelink payments, disabled parking permits, transport services for disabled individuals and financial counselling services

• Counselling and practical assistance in emergency or crisis situations, for example concerns about an individual’s welfare and family safety

• Coaching, practical guidance and support to assist when planning to leave Defence to move back into civilian life.

In 2018-19 Defence expanded eligibility for the Partner Employment Assistance Program. The Partner Employment Assistance Program provides funding towards employment-related initiatives aimed at contributing to ADF partner employability in their new posting. Employment-related initiatives include professional employment services and mandatory fees for professional re-registration required under legislation. Professional employment services can include résumé development, interview coaching, assistance with identifying transferrable skills, employment options or job placement advice, development of an online employment profile, selection criteria coaching, and interview preparation and presentation.

Defence delivered training and education programs to raise awareness and provide guidance on responding to allegations of family and domestic violence. In 2019, a targeted training program was developed for commanders and managers to respond to allegations of family and domestic violence.

Defence also provides childcare support services through the Defence Childcare Program, comprising 16 long day-care and three out of school hours centres and the Individual Case Management Service. Since its launch, the Individual Case Management Service has assisted over 686 Defence families to review their childcare requirements and source a childcare centre appropriate to their needs.

The Defence School Mentor Program provides funding to minimise the impact of mobility on education and build schools’ capability to support Defence students, particularly during transitions into and out of the school and during parental absences. In 2018-19, a total of 242 schools and approximately 13,400 Defence children were provided with support under the program.

The Family Support Funding Program provides grants to community organisations to assist them to deliver support and services of value to Defence families and the community they live in. In 2018-19, 51 not-for-profit community organisations received grant funds under the program.

The Community Support Coordinator Program funds Defence community groups to employ a community support coordinator to coordinate the delivery of services and support of value to Defence families in their local community. In 2018-19, 27 paid Defence community support coordinators were supported through the program.

Health and wellbeing of ADF personnel and veterans Defence continues to deliver services to support the health and wellbeing of ADF personnel and veterans. The services are planned and delivered as a collaborative effort between Joint Health Command, Defence People Group, Navy, Army, Air Force and the Department of Veterans’ Affairs.

Health services In 2018-19, the Services continued to maintain health capabilities, primarily to support their exercises and operations.

The Services also contributed to the delivery of health services by providing uniformed health staff for:

• Garrison Health, which delivers and manages health care for ADF personnel within Australia and on non-operational postings overseas

• Combat Health Support, which delivers health care for ADF personnel on military operations.

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Mental health Defence has long recognised that the mental health and wellbeing of its workforce is critical to Defence capability. We are committed to providing mental health services and support to all ADF members and APS employees, and are focused on making Defence people ‘Fit to Fight, Fit to Work, Fit for Life’.

Mental health screening As of 1 April 2019, the Periodic Mental Health Screen has been implemented in all garrison health centres. The screen enhances Defence’s ability to maintain a fit and resilient workforce through early identification and intervention for individuals with mental health concerns.

Project RESTORE Project RESTORE is a clinical trial of a treatment for post-traumatic stress disorder known as Prolonged Exposure. The trial is being run to determine whether an intensive delivery of Prolonged Exposure therapy will deliver outcomes comparable to the Prolonged Exposure treatment protocol.

Defence has partnered with the Department of Veterans’ Affairs, Open Arms—Veterans and Families Counselling, and Phoenix Australia to run the clinical trial. The trial will cease accepting participants at the end of 2019 and deliver a final evaluation on outcomes by the end of 2020.

It is hoped that the trial will lead to improved access to, and availability of, effective evidence-based care for post-traumatic stress disorder for both current and former ADF members.

Transition from Australian Defence Force Defence has a comprehensive employment package consisting of housing, medical, remuneration, superannuation and professional development opportunities that support our people to provide military service for Australia. When Defence members transition from undertaking military service to civilian life, this can bring significant change and uncertainty for a person and their family.

The goal of Defence’s transition support is to ensure that the ADF member and their family are well prepared for civilian life, such as adjustment of social customs, community connection, having civilian health care in place, having considered financial implications of transition and, where appropriate, being able to secure and maintain civilian employment or meaningful engagement.

In 2018-19, Defence adopted a needs-based model of transition support, which offers transitioning members and their families access to targeted services and support. This support continues to be provided for 12 months after transition.

In 2018-19 Defence has delivered:

• greater support for families, especially those where the partner transitions medically, through the expansion of the Partner Employment Assistance Program

• launch of the Personalised Career and Employment Program to provide intensive support and employment pathways to early leavers, who are least likely to secure employment without additional support

• access to the two-day Job Search Preparation program to all serving ADF members at any time in their career

• the Transition for Employment program to offer tailored assistance to gain civilian employment to ADF members with complex medical conditions

• a skills recognition program that translates the training and skills that members have obtained to support preparation for seeking employment

• national rollout of 30 one-day ADF Member and Family Transition Seminars, which include a dedicated area to inform members about support for medically transitioning personnel

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• ongoing communication with former ADF members for 24 months after leaving via follow-up phone calls and surveys. Information collected via the surveys is used to assess the effectiveness of transition programs, capture trends and inform future initiatives.

To assist ADF members and their families’ transition to civilian life, Defence is working collaboratively with the Department of Veterans’ Affairs to ensure the case management of those who require additional support.

Work health and safety Defence continued to make the health and safety of its people a key priority in 2018-19.

Defence Work Health and Safety Strategy The Defence Work Health and Safety Strategy 2017-22 sets the direction for Defence to achieve our safety vision. If focuses on embedding an inclusive, proactive and mindful safety culture in support of the health, wellness and safety priority in Pathway to Change: Evolving Defence Culture 2017-22.

The strategy and supporting implementation plan continue to embed work health and safety into our thinking and behaviour as well as in all Defence business and management systems. The initiatives included:

• Senior Officer Safety Responsibilities—Defence implemented the Officer Due Diligence Framework, setting out due diligence obligation for Defence senior leaders and those personnel who are designated as officers. The framework sets out the accountability Defence Senior Leaders have for the safety culture across the breadth of the organisation.

• Work Health and Safety Expected Behaviours—Defence developed its Work Health and Safety Expected Behaviours called ‘Walk, Talk, Act’. Walk, Talk, Act outlines what is required of all Defence workers and provides practical examples of how senior leaders, directors/managers, team leaders and workers can demonstrate positive safety behaviours.

• Defence Work Health and Safety Scorecard—The Defence Work Health and Safety Scorecard has been developed to enable the identification of trends and areas of concern across Defence. This has improved awareness of work health and safety issues at the highest levels and enabled Defence to focus efforts to mitigate identified work health and safety trends. The scorecard is presented monthly to the Secretary, the Chief of the Defence Force, and the broader Senior Leadership Group.

Mental Health and Wellbeing Strategy The mental health and wellbeing of the workforce is critical to overall Defence capability. The Defence Mental Health and Wellbeing Strategy 2018-2023 incorporates the latest mental health research and reflects outcomes from various reviews and inquiries into the mental health of serving and former ADF members, ensuring they are ‘Fit to Fight, Fit to Work, Fit for Life’.

In 2018-19, Defence and the Department of Veterans’ Affairs jointly funded the Transition and Wellbeing Research Program, which is the most comprehensive study ever undertaken in Australia of the impact of military service on the mental, physical and social health of serving and former ADF members and their families.

While Defence has had programs and policies in place previously, this is the first time the mental health and wellbeing actions and priorities have been brought into one coordinated plan. While there are differences in the types of initiatives and programs available to the ADF and APS workforces, there is a common understanding of the need to ensure a mentally healthy and resilient workforce.

The strategy has six key strategic objectives:

• Leadership and shared responsibility

• A thriving culture and healthy workplace

• Responding to the risks of military service

• Person-driven care and recovery

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• Building the evidence

• Continually improving.

The strategic objectives are primarily focused on decreasing stigma, improving the knowledge and skills of all employees and improving the support services available for those who need them. The release of the strategy has seen the availability of a number of new mental health initiatives, such as:

• the Defence NewAccess Program, which provides a stepped care approach for the provision of support for those experiencing a mental health concern. Defence NewAccess is a tailored version of Beyond Blue’s NewAccess Program. Both ADF and APS personnel can access the Defence-only service. NewAccess is provided in addition to the Defence Employee Assistance Program and will enable Defence to give staff access to programs that cater for mental health issues of varying levels of complexity

• the Mental Health Speakers Series, which assists in raising awareness and decreasing the stigma associated with mental health concerns

• mental health training for all levels of the organisation, including all employees, managers and the Senior Leadership Group, which is designed to raise awareness of mental health within the workplace and provide self-care strategies to individuals.

Employee Assistance Program The Employee Assistance Program assists Defence employees who are experiencing difficulties of a personal or work-related nature. It offers a confidential work-based intervention program designed to enhance emotional, mental and general psychological wellbeing. The program provides short-term preventative and proactive interventions for issues that may and do adversely affect performance and wellbeing. The program aims for early detection, identification and resolution of work and personal issues.

The program is available to all APS employees (ongoing and non-ongoing), ADF Reservists, ADF Cadets and officers and instructors of ADF Cadets. These services also extend to managers, supervisors and immediate family of eligible members within Defence.

The services include:

• education and training group awareness sessions that target common health and wellbeing topics that aim to promote enhanced wellbeing in a work and personal environment

• critical incident debriefing and trauma counselling

• pre-deployment and post deployment assessment and support for APS employees.

The 2018-19 annual utilisation for the Employee Assistance Program by eligible Defence members (Australian Public Service, Reservists and Cadets) was 4.4 per cent. This is 2.5 percentage points lower than the public administration / government benchmark of 6.9 per cent.

Emerging hazards Work Health and Safety undertakes biannual environmental scans in order to identify emerging hazards that may have an impact on the health and safety of Defence workers. Through the dedicated identification and evaluation of emerging hazards, Defence can proactively develop strategies to control the hazards, allowing the safe and beneficial use of these new technologies. The Emerging Hazards Capability consists of occupational health subject-matter experts within Work Health and Safety Branch and consultation with Defence Science and Technology Group, academia, areas of government and industry as appropriate. To date the capability has reviewed and published guidance information on 3D printing and nanomaterials. A presentation on emerging hazards was delivered to the Defence occupational health and hygiene conference in April 2019.

112 DEFENCE ANNUAL REPORT 2018-19

Comcare Defence continues to maintain a strong relationship and work collaboratively with Comcare. The biannual Defence- Comcare liaison forum and Comcare representation on the Defence Work Health and Safety Committee ensure sharing of information and a better understanding of the priorities of Comcare as a regulator.

In 2018-19, Comcare undertook 172 investigations across Defence, based on known high-risk areas, and issued nine notices.

Defence actively investigates safety incidents. In 2018-19 investigations focused on contact with a chemical or substance, followed by falls from a height and contact with electricity. Defence used these investigations to develop and refine associated hazard reduction programs and improve work health and safety performance.

In addition to partnering with Comcare on investigations, Defence is currently working closely with Comcare on a number of initiatives. These include:

• the APS Medical Care Pilot, which Defence participated in with Comcare from 6 May to 5 November 2019. The pilot offers early medical services for Defence APS employees within Australia with a new or emerging injury, through Injurynet’s registered nurse triage system

• Beyond Blue’s NewAccess program, which Defence is currently working with Comcare on evaluating. The intent of the evaluation is to measure the effectiveness of the NewAccess Program, with focus given to return to work outcomes and total cost of incapacity payments.

Table 6.25: Number of Comcare work health and safety notices, 2016-17 to 2018-19

Type of notice 2016-17 2017-18 2018-19

Improvement notice1 3 2 6

Prohibition notice2 1 1 3

Non-disturbance notice3 - 2 -

Notes:

1. Improvement notices are based on incidents and occurrences that contravene work health and safety legislation.

2. Prohibition notices are issued to remove an immediate threat to the health and safety of workers.

3. Non-disturbance notices are issued for a specific period of time to remove a threat to the health or safety of personnel.

Work health and safety audits In 2018-19, Work Health and Safety Branch conducted 37 work health and safety audits across Defence. This comprised 20 safety management systems audits, and 17 compliance audits in the risk areas of hazardous chemicals, electrical, and the joint special licence for the operation of high-risk plant.

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Notifiable incidents

The number of notifiable work health and safety incidents declined in 2018-19, as shown in Table 6.26.

Table 6.26: Number of work health and safety incidents and involved persons, 2016-17 to 2018-19

2016-17 2017-18 2018-19

Number of incidents2

Number of people involved in an incident3 Number of

incidents2

Number of people involved in an incident3 Number of

incidents2

Number of people involved in an incident3

Fatality1 8 8 3 3 4 4

Serious injury or illness1

226 234 240 242 201 203

Dangerous incident1

204 364 251 407 210 306

Subtotal 438 606 494 652 415 513

Minor injury 9,743 9,826 9,359 9,472 8,901 9,152

Near miss 873 4,314 908 3,778 866 5,414

Exposure 1,114 1,361 1,256 1,904 1,490 2,304

Subtotal 11,730 15,501 11,523 15,154 11,257 16,870

Total 12,168 16,107 12,017 15,806 11,672 17,383

Notes: Incidents are reported from the date of occurrence. Figures in Table 6.26 can vary from previous Defence annual reports, as reports can be made for incidents that occurred in previous years and severity statuses can be updated. Data is at 4 July 2019. The Australian Signals Directorate became a separate statutory body on 1 July 2018; therefore their data has been included for financial years 2016-17 and 2017-18, and excluded for financial year 2018-19.

1. Fatalities, serious injuries or illnesses, and dangerous incidents are notifiable to Comcare. Incidents of these severities that occur while on a Defence declared operation are not notifiable to Comcare and have not been included.

2. The ‘Number of incidents’ columns show the number of incidents occurring in that financial year. A single incident can include multiple individuals.

3. The ‘Number of people involved in an incident’ columns show the number of people involved in the incident. One incident may result in multiple injuries or none.

Honours and awards Reward and recognition, acknowledging positive behaviour and celebrating achievement, are key components in creating a strong performance culture. Defence formally recognises the service and achievements of ADF members, veterans and Defence APS employees through the timely issue of honours, decorations, service medals and awards.

In 2019, 208 ADF members were awarded honours or decorations in the Australia Day and Queen’s Birthday Honours lists, in recognition of their distinguished service on operations, as well as significant dedication, outstanding application of skill or meritorious service.

In 2018-19 Defence issued 17,438 operational medals and long service awards to current ADF members and 11,621 service medals were issued to veterans and their families in recognition of service in conflicts since World War 1. Defence recognised 567 APS employees for their commitment to service and awarded Secretary’s Awards for Long Service.

Defence has commenced a review to modernise and improve the legal instruments for Defence honours and awards to ensure they are fit for purpose and better suited to Defence needs. In 2018-19, two instrument amendments were approved by the Australian Government, which expand medal eligibility criteria and provide new recognition for military service. The review is investigating a further 117 amendment proposals, including the introduction of two new ribbons to existing medals, and is expected to be completed by June 2020.

114 DEFENCE ANNUAL REPORT 2018-19

Defence diversity

Women Defence efforts across the year focused on evolving workplace practices to ensure greater representation of women in both the APS and the ADF. The key focus for improving our gender balance is to ensure we are building Defence’s capability and our operational effectiveness.

Efforts remained on increasing the representation of women in leadership roles; mentoring, networking and capability development; access to flexible work arrangements; targeted recruitment to increase the number of women applying for positions; and developing the career talent pipeline.

Defence has continued its focus on providing board readiness training, board shadowing, networking events and one-on-one mentoring, which saw an increase in the representation of both APS and ADF women on Defence boards from 47.6 per cent in 2017-18 to a current representation of 48 per cent.

Women in the Australian Defence Force

As at 30 June 2019, the participation rate of women in the permanent ADF reached 18.6 per cent—an increase from 17.9 per cent as at 30 June 2019. In the same period, the number of women serving in the ADF increased by 406, with six more women in senior officer positions.

Service-specific initiatives to provide mentoring, sponsorship and leadership development opportunities for women include:

• the Women’s Integrated Networking Group, which is a facilitated program designed to provide professional development and encourage networking between Air Force women of all rank levels and employment skills

• the Navy Strategic Workforce Plan, which embraces Australia’s diverse, socially progressive and aging population in order to achieve required transformational culture change and meet Navy’s future workforce needs. Actions under the plan included sponsorship of The Future Through Collaboration women in engineering mentor/mentee program and sponsorship of the Australian Institute of Company Directors Board Ready program for senior (O6) Navy women

• the Australian Army initiatives to build a workforce that reflects the diverse society that it serves. In recent years it has focused on building the representation of women and Indigenous Australians.

Women in the Australian Public Service

As at 30 June 2019, the participation rate of women in the Defence APS reached 44.3 per cent—an increase from 42.4 per cent as at 30 June 2018. In this period, the proportion of women in Executive Level positions increased from 9.6 per cent to 9.9 per cent.

Defence has implemented a number of gender equality initiatives, including participating in a cross-agency science, technology, engineering and mathematics working group to create mentoring opportunities for women in science, technology, engineering and mathematics roles and build stronger relationships in their fields of expertise.

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Indigenous participation and engagement Defence has strengthened the capability and diversity of our workforce by increasing Indigenous representation and supporting Indigenous employees’ career development and progression.

Defence Indigenous representation among ongoing APS employees decreased from 418 on 1 July 2018 to 389 on 1 July 2019, which included 14 Indigenous employees who transferred out of Defence with the Australian Signals Directorate. The number of Indigenous permanent ADF members increased from 1,604 on 1 July 2018 to 1,723 on 1 July 2019 (see Table 6.27).

Table 6.27: Indigenous participation

1 July 20181 1 July 2019

Number % of total Number % of total

Navy

Permanent 447 3.3 471 3.3

Reserves1 34 1.2 41 1.2

Army

Permanent 922 3.1 964 3.3

Reserves1 442 2.5 540 2.9

Air Force

Permanent 235 1.6 288 2.0

Reserves1 56 1.1 58 1.1

Total ADF

Permanent 1,604 2.8 1,723 3.0

Reserves1 532 2.1 639 2.3

Total APS2 418 2.2 389 2.3

Notes: Data for this table is reliant on self-identification on the Defence human resources system; therefore, the data is likely to under-report actual participation rates.

1. Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

2. Figures include paid, unpaid, full-time, part-time, ongoing and non-ongoing employees.

Defence has a number of initiatives to attract Indigenous Australians to a career in Defence, including indirect attraction through community engagement activities, work experience opportunities and partnering with Indigenous organisations that focus on improving future outcomes for Indigenous youth. In 2018-19 the Defence Work Experience Program hosted 338 Indigenous students across Australia, including the RAAF Indigenous Youth Program and Army’s flagship Indigenous program, Exercise First Look.

Defence provides a range of pathway programs for Indigenous Australians seeking a career in the ADF including:

• the Navy and Army Indigenous Development Programs, which provide language, literacy, and numeracy training; military skills; physical fitness; vocational education and training, cultural appreciation; leadership and character development. These six-month programs are conducted in Cairns (QLD), Darwin (NT) and Kapooka (NSW). During 2018-19:

- 23 people participated in the Navy Indigenous Development Program

- 73 people participated in the Army Indigenous Development Program

• Air Force Indigenous Recruitment Pathway, which provides a range of flexible recruitment pathways including education and mentoring programs supported by TAFE courses, tertiary bridging initiatives and undergraduate study programs. During 2018-19, 35 people participated in the flexible recruitment pathways and 20 people have since enlisted. These programs have a follow-on recruitment effect as participants return to their communities and promote Defence

• the Indigenous ADF Pre-Recruit Program, which is aimed at Indigenous Australians who meet the general entry recruiting standards for medical, education and aptitude but need to develop their confidence,

116 DEFENCE ANNUAL REPORT 2018-19

resilience and/or physical fitness to enable them to succeed during recruitment and initial training. This six-week program is conducted at Kapooka (NSW), and Wagga Wagga (NSW). Participation in the Pre-Recruit Program for 2018-19 was:

- 11 people for Air Force

- 24 people for Army.

Defence continues to recruit Indigenous APS employees through direct entry and Affirmative Measures—Indigenous programs, including through an Indigenous bulk recruitment round resulting in over 60 employment opportunities identified for Indigenous Australians at the APS 5, APS 6 and Executive Level 1 levels around the country.

Defence continues to engage with Indigenous communities, with Air Force developing a Return to Community initiative to encourage and support Indigenous members to return to their community for a period of time, to use their ADF skills and experience. Army has continued the Army Aboriginal Community Assistance Program, a joint initiative with the Department of the Prime Minister and Cabinet aimed to improve environmental health and living conditions in remote Indigenous communities through the delivery of housing, infrastructure and essential services.

Defence provides opportunities to Indigenous businesses and, as the Commonwealth’s largest procurer, is well positioned to take a leading role in supporting Indigenous enterprise. In May 2019 Defence was announced as Supply Nation’s ‘Government Member of the Year’ in recognition of its significant achievements in supporting Indigenous business.

Defence will launch its fourth Defence Reconciliation Action Plan (D-RAP 2019-22) in August of 2019.

The D-RAP Working Group, consisting of Indigenous and non-Indigenous members, develops the key deliverables within the D-RAP and ensures that Service and Group level strategies, initiatives and programs are aligned to the D-RAP agenda.

Figure 6.1: Indigenous participation

ADF PERMANENT

APS

ADF RESERVE

1,723

389

369

APS

ADF RESERVE

ADF PERMANENT 1,604

532

418 01 JULY 2018

01 JULY 2019

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Closing the Gap and increasing Indigenous representation in Defence

Defence continues to lead the national effort to progress reconciliation and the Australian Government’s Closing the Gap strategy. This is reflected in the new Defence Reconciliation Action Plan 2019-2022, which provides a roadmap for continuing to fulfil our reconciliation objectives. It is the Department’s fourth plan, which places us in the top 10 per cent of Reconciliation Action Plan partners.

Defence’s Indigenous reconciliation, inclusion, employment and procurement strategies increase our capability and have a direct impact on employment and socio-economic outcomes for Aboriginal and Torres Strait Islander peoples.

The new Reconciliation Action Plan focuses on:

• improving Indigenous employment and socio-economic outcomes by enhancing our Indigenous career development, training and employment pathways

• improving Indigenous socio-economic outcomes through deliberate Indigenous procurement strategies

• increasing organisational cultural competence, which improves our engagement with Indigenous communities and promotes Defence as an employer of choice.

Defence is making significant progress in increasing Indigenous representation across the total ADF and APS workforce. We are fostering genuine, meaningful relationships with Aboriginal

and Torres Strait Islander peoples and offering a range of career pathway programs for Indigenous Australians.

Aboriginal and Torres Strait Islander people currently represent 2.3 per cent of the Defence APS workforce and 2.9 per cent of the ADF. To increase Indigenous representation, Defence has set targets of 3 per cent by 2022 for its APS staff and 5 per cent by 2025 for the ADF. Our new Reconciliation Action Plan sets out strategies to meet these targets.

Defence employs specialised Indigenous recruiters to promote the roles, training and career pathways on offer in the ADF and to mentor Indigenous candidates and engage with community leaders. The work of these recruiters was recently recognised by the Australian Human Resources Institute, which awarded an ADF Indigenous specialised recruiter with its 2018 Diversity Champion award.

Defence’s Indigenous Procurement Strategy articulates our commitment and pathway to meeting the outcomes of the Commonwealth Indigenous Procurement Policy. Since the policy’s implementation in July 2015, Defence has awarded over $1 billion in contract value to Indigenous-owned businesses. Supply Nation, the peak industry body for Aboriginal and Torres Strait Islander owned companies, recognised Defence as the Government Member of the Year in 2017 and 2019. This award is for the government agency that has demonstrated the most exceptional commitment, engagement and leadership in supplier diversity and driven growth in the Indigenous business sector.

Royal Australian Navy Able Seaman Boatswains Mate Jorde Lenoy speaks about his experiences within the Navy during a Reconciliation Week event held at HMAS Albatross.

118 DEFENCE ANNUAL REPORT 2018-19

People from culturally and linguistically diverse backgrounds In 2018-19, specific initiatives relating to cultural and linguistic diversity included:

• the introduction of the Special Broadcasting Service (SBS) Cultural Competence Course. The course is a multi-faceted program that includes a range of multimedia online clips and additional resources designed to effectively train a large number of employees around cultural awareness. The course is available to all Defence members on Campus and Campus Anywhere

• Defence’s Cultural and Linguistic Diversity Champions, who continued to raise the profile of this important diversity focus.

In the 2018 Defence Graduate Program, of the 311 candidates recruited, 139 graduates indicated they either spoke or wrote a second language (other than English). Languages included French, Spanish, German, Russian, Chinese, Mandarin and Cantonese. For 2019, of the 240 candidates recruited, 89 graduates indicated they either spoke or wrote a second language (other than English). Languages included Hindi, Filipino, French, Indonesian, Vietnamese, Russian and German.

Lesbian, gay, bisexual, transgender and intersex people Defence capability is reliant on Defence’s capacity to attract and retain the best possible talent regardless of gender, race, religion, disability or sexual orientation. Defence is committed to maintaining a safe and inclusive workforce where lesbian, gay, bisexual, transgender and intersex members can openly contribute across aspects of Defence capability.

In 2018-19 Defence supported an endorsed lesbian, gay, bisexual, transgender and intersex (LGBTI) trainer program and conducted gender diversity awareness sessions in various locations across Australia.

Defence also participated in the annual Australian Workplace Equality Index, which is the national benchmark for LGBTI workplace inclusion in Australia, receiving an overall score of Participation.

People with disability Defence provides a workplace that is accessible, inspires people to succeed and builds meaningful and sustainable employment opportunities for people with disability. Defence actively supports people with disability to maximise their potential and participate as equal employees in the Defence environment. Defence’s client-centric approach to supporting people with disability and their managers includes:

• workplace adjustments and assistive technology to eliminate workplace barriers

• the introduction of the Australian Public Service Commission Disability Awareness training course specifically designed to build confidence in staff who supervise people with disability

• a dedicated Accessibility Hub which provides employees with disability, ill health or injury and their managers with information on creating a flexible and inclusive work environment.

In 2018-19, Defence invested in creating and sustaining valued employment programs and direct employment pathways for people living with disability. This included:

• the Inclusive Employment Program, which provided 20 people with intellectual disability permanent employment at the APS 1 and 2 levels

• the Defence Administrative Assistance Program, which supported employment of approximately 80 people with a disability, in nine Defence locations across Australia, through partnership with Australian Disability Enterprises

• Defence support for the Dandelion Program, run in partnership with DXC Technology Australia, employing people with autism spectrum condition.

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Disability reporting mechanisms Defence’s disability reporting mechanisms remain consistent with 2017-18 and includes both anonymous survey-based data capture and self-identified human resources reporting.

Official data shows the percentage of Defence APS employees who have self-identified as having a disability remains consistent with last year, at 3.5 per cent, with the proportion of the APS with a disability or one chronic illness (reported through the last census) at around 20 per cent.

Defence is committed to building capability through inclusion, as articulated in Pathway to Change 2017-22, and continues its focus on removing barriers for people with disability or chronic illness includes strategies to address stigma in the workplace, which should increase the willingness of individuals to share information regarding their disability.

Additional information is available at www.defence.gov.au/defencecensus.

Complaint handling and resolution Defence personnel have the right to complain if they are aggrieved by matters relating to their employment. ADF members (permanent and Reserve) may apply for redress of grievance under the Defence Regulation 2016. APS employees may seek a review of actions under the Public Service Act 1999.

APS review of actions Section 33 of the Public Service Act 1999 establishes a review of actions scheme and allows non-Senior Executive Service APS employees to seek review where they have a complaint about an action or a decision relating to their employment.

In 2018-19 Defence received 49 applications for review of actions, which is a considerable decrease from the previous year (Figure 6.2). The following subjects continued to feature in the applications for review:

• performance management, assessment and reporting

• management of unacceptable behaviour complaints by line management

• recruitment activities

• access to leave or other employment conditions.

Figure 6.2: APS review of actions applications, 2014-15 to 2018-19

2014-15 2015-16 2016-17 2017-18 2018-19

100

80

60

40

20

0

No. of applications for review

50

71 74 70

76

100

80

60

40

20

0

No. of applications for review

49

72

63

75 77

Received Finalised

120 DEFENCE ANNUAL REPORT 2018-19

Unacceptable behaviour Pathway to Change: Evolving Defence Culture 2017-22 reinforces that all Defence personnel are accountable for creating a more positive and inclusive culture. Defence’s cultural change initiatives are focused on encouraging individuals to report unacceptable behaviour and seek support services, ensuring they feel safe to do so.

Defence personnel are encouraged to report any incident of unacceptable behaviour they experience or witness in the workplace. Guidance and support is available to ensure that complaints are managed and resolved appropriately. Defence encourages the use of alternative dispute resolution, and the majority of complaints continue to be resolved at the lowest appropriate level.

All Defence personnel are required to undertake annual Workplace Behaviour training, which includes information about expected behaviours and guidance on making and managing complaints.

In 2018-2019 Defence:

• issued a revised policy Required Behaviours in Defence to provide greater clarity for all personnel with respect to the behaviours that are expected and those that will not be tolerated

• made the unacceptable behaviour incident reporting tools more accessible on both the intranet and the internet, encouraging personnel to report incidents of unacceptable behaviour

• finalised an internal review of complaint management identifying further improvements to unacceptable behaviour policy, training and governance to be made during financial year 2019-20

• improved the data analytics associated with reports of unacceptable behaviour.

Defence policy requires managers to report complaints of unacceptable behaviour in a central database. Defence’s review of complaint management identified that the majority of complaints of unacceptable behaviour have been recorded in the central database, and initiatives are underway to close the gap. In previous Defence annual reports the data has only been provided from the Complaints Management, Tracking and Reporting System (ComTrack). Defence has now consolidated all reports included in ComTrack, the Army Incident Management System (known as AIMS) and the Defence Policing and Security Management System (known as DPSMS). Duplicate entries have been removed.

Data from the previous five financial years shows that the number of complaints being reported is increasing. The number of incidents actually occurring in the financial year has started to reduce.

Of the total of 1,016 complaints reported during 2018-19, 776 occurred during the financial year, with 240 incidents that were reported occurring in previous financial years. This suggests personnel are more willing to report unacceptable behaviour than in previous years.

Figure 6.3: Unacceptable behaviour complaints reported as received, finalised and having occurred, 2014-15 to 2018-19

1,200

1,000

800

600

400

200

0

14/15 15/16 16/17 17/18 18/19

776

899 895

866

828 838

776

799 782 811

1016

949

900

812

883

Incidents received during FY Incidents finalised during FY Incidents that occured during FY

121 CHAPTER 6 | STRATEGIC WORKFORCE MANAGEMENT

The growing confidence of personnel in calling out and reporting unacceptable behaviour is reflected in the perceptions of the Defence workforce captured through the Defence Enterprise attitudinal surveys.

The YourSay Organisational Climate Survey indicates that the majority of Defence personnel perceive that:

• incidents of unacceptable behaviour are being managed well

• Defence has a culture that supports individuals who report unacceptable behaviour.

Note that data is only available for this measure from 2017 and 2018, as the question was not asked before 2017.

Figure 6.4: Incidents of unacceptable behaviour are managed well in my workplace

0% 10% 20% 30% 40% 50% 60% 70%

Disagree

Neutral

Agree

Disagree

Neutral

Agree

Disagree

Neutral

Agree

Disagree

Neutral

Agree

Disagree

Neutral

Agree

2018 2017 2016 2015 2014

0% 10% 20% 30% 40% 50% 60% 70%

Disagree

Neutral

Agree

Disagree

Neutral

Agree

2018 2017

Figure 6.5: Defence has a culture that supports individuals who report fraud, corruption or unethical behaviour

122 DEFENCE ANNUAL REPORT 2018-19

Sexual misconduct response Defence provides opportunities for reporting and/or disclosing sexual misconduct. Reporting is a description or a formal account that triggers further investigation and inquiry by Joint Military Police Unit (JMPU) or state/territory police. Disclosure is an opportunity for an impacted person to reveal an account for support or advice from the Sexual Misconduct Prevention and Response Office.

Reported sexual assault in the ADF There is a difference between the common understanding of sexual offences in the community, as reflected in the Model Criminal Code, and those used by organisations like the state and territory police. Australian state and territory police use the Australian and New Zealand Offence Classification (ANZSOC) definitions from the Australian Bureau of Statistics. Defence adopted ANZSOC in 2018 for statistical reporting on sexual assaults in Defence to ensure consistency with other Government agencies.

Defence’s reports between 2012-13 and 2016-17 were calculated using the Model Criminal Code. The Model Criminal Code classifies non-penetrative sexual offences as indecent acts. By comparison, the 2017-18 and 2018-19 reports use the broader ANZSOC definition of sexual assault, which includes penetrative and non-penetrative sexual offences.

Table 6.28: Reported Defence sexual assault data per year

Model Criminal Code ANZSOC ANZSOC

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

60 96 98 84 87 170 166

The figure of 166 sexual assaults reported to JMPU for 2018-19 (as at 4 July 2019) comprises:

• 79 aggravated sexual assaults (penetrative acts, or threat of penetrative acts, committed without consent with aggravating circumstances)

• 87 non-aggravated sexual assaults.

Figures using the Model Criminal Code standard and the ANZSOC standard cannot be directly compared, although both include non-consensual penetrative sexual offences. On a broad basis, only 79 aggravated sexual assaults reported to Defence in 2018-19, and 103 reports for 2017-18, can be compared with previous years’ reporting.

The 2018-19 figure of 79 aggravated sexual assaults is within the consistent range of reporting using the Model Criminal Code over the previous five years.

Importantly, the sexual assault figures are drawn from a live policing database and reflect JMPU’s understanding of matters as at 4 July 2019. As initial reports are investigated and/or finalised, this figure may change.

The 166 aggravated and non-aggravated sexual assault complaints made to JMPU comprise the following points (some with multiple entries):

• 75 cases were reported allegations where the member did not wish to make a statement of complaint or did not want the matter investigated by JMPU or state/territory police

• 52 cases were investigated by state/territory police and remain within their jurisdiction

• 36 cases were reported matters of a historical nature (meaning the incident occurred at least one year prior to reporting)

• 16 cases involved an alleged perpetrator who was either unknown to be a Defence member or known not to be a Defence member

• nine cases were reported matters involving Cadets and/or volunteers associated with Cadets, and consequently not Defence members

• 27 cases are closed as unable to be substantiated, where there is insufficient evidence and/or no perpetrator able to be identified.

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Approximately 45 per cent of reported allegations of sexual assault made to JMPU were made by members who did not wish to make a statement of complaint or did not want the matter investigated by JMPU or state/territory police. Respecting the wishes of the victim is consistent with policing principles of maintaining a victim-centric approach but it can inhibit Defence’s ability to substantiate or conclude matters.

Sexual misconduct prevention and response Defence’s Sexual Misconduct Prevention and Response Office provides confidential support and case management services to Defence personnel directly affected by sexual misconduct, debriefing services for personnel exposed to difficult material at work, assistance with incident management to promote personnel wellbeing, and educational programs and resources.

The Sexual Misconduct Prevention and Response Office team developed and delivered primary prevention educational packages and support to create a workplace climate that upholds Defence and Service values. Key deliverables in 2018-19 were:

• Refreshed education material focused on consent including technology use, bystander intervention, ethical decision-making in relationships, options for impacted personnel, and removing barriers to reporting in 2018-19

• Updated policy to reflect the victim-focused approach and how to respond to incidents to ensure the wellbeing of people is supported

• Face-to-face briefings delivered to Reserve units and smaller bases; and the network of Defence members able to provide briefings to their peers in location extended

• Sexual misconduct general awareness course adapted for online delivery to enable training to be undertaken any time

• Increased online access in remote locations, for all personnel unable to attend face-to-face briefings.

Sexual misconduct prevention and response training attendance is monitored with a three-year proficiency. As at 1 July 2019 approximately 41,993 Defence personnel held the Sexual Misconduct Prevention and Response proficiency. In the ADF 55 per cent of the permanent force holds the proficiency.

The Sexual Misconduct Prevention and Response Office provides a 24/7 telephone response service for those seeking aid. The office assisted 400 clients in 2018-19. It provided case management to 108 clients subjected to sexual offences, sexual harassment, sex-based discrimination and other unacceptable behaviours in Defence. Assistance with system navigation and service coordination, resources and referrals, and education for individuals and their families is also provided. These interventions assist wellbeing, build resilience, and facilitate developing self-management strategies and skills. The demand for case management services decreased from 473 in 2017-18 to 400 in 2018-19.

The Sexual Misconduct Prevention and Response Office assists commanders, managers, colleagues, and friends to improve responses to disclosures and reports. Commanders and managers received assistance on applying Defence’s policy requirements in a victim-centric manner. Colleagues and friends received advice on aiding a person who had disclosed being subjected to sexual misconduct. The uptake for one-on-one assistance with sexual misconduct incident management and disclosures rose slightly from 255 in 2017-18 to 265 in 2018-19 (see Table 6.29).

124 DEFENCE ANNUAL REPORT 2018-19

Table 6.29: Sexual Misconduct Prevention and Response Office new incident management advice clients, 2013-14 to 2018-19

Financial year Number of SeMPRO advice clients

2013-14 70

2014-15 147

2015-16 131

2016-17 223

2017-18 253

2018-19 265

TOTAL 1,089

Note: The data in the table is client data collected during service provision and is subject to change as clients reveal additional information. The figure previously printed for the number of advice clients in 2017-18 was 255.

In 2018-19 the Sexual Misconduct Prevention and Response Office provided confidential debriefing to 27 clients. Debriefing services are designed to prevent psychological injuries arising from workplace exposure to trauma.

Defence continues to drive best practice through sexual misconduct prevention, incident management, and response.

125 CHAPTER 7 | ASSET MANAGEMENT

7ASSET MANAGEMENT No. 37 Squadron Aircraft Technician Leading Aircraftman Paul Connolly makes fine adjustments inside a C-130J Hercules in the Middle East Region.

126 DEFENCE ANNUAL REPORT 2018-19

Asset management Defence manages $105.9 billion of total assets. This includes approximately:

• $66.6 billion of specialist military equipment

• $27.2 billion of plant, land, buildings, infrastructure

• $7.2 billion of inventory

• $0.5 billion of heritage and cultural assets

• $4.4 billion of other items, including cash, receivables, prepayments and intangibles.

Defence Groups and Services are accountable for the underlying business transactions and records that substantiate the reported financial balances of assets under their control.

Defence undertakes accounting processes to enable the accurate and timely reporting of asset balances and ensure that they are consistent with the requirements for financial statement reporting defined in the Australian Accounting Standards.

Defence Single Information Environment Defence is supported by one of the largest and most complex information and communications technology (ICT) undertakings in the nation, operated by the Chief Information Officer Group (CIOG). As well as provisioning and supporting over 100,000 Defence employees’ corporate ICT requirements, CIOG delivers mission-critical systems and services to enable the Australian Defence Force’s warfighting capabilities globally.

With an annual spend of $1.7 billion, CIOG leads the integrated design, cost-effective delivery and sustained operation of Defence’s Single Information Environment (SIE). The SIE encompasses Defence’s information, computing and communications infrastructure, along with the management systems and people to deliver that infrastructure. It includes Defence’s information assets, computing networks, business applications and the data that they generate and carry, as well as the communication standards and spectrum required for Battlespace networks. The infrastructure CIOG provides is essential and integral to core Defence functions such as intelligence, surveillance, reconnaissance, communications, information warfare, command and management. This includes the dispersed, fixed, deployable and mobile networks that underpin Australian Defence Force (ADF) operations.

CIOG is dedicated to providing a dependable, secure and integrated ICT environment and is investing in delivering the future of Defence ICT. Investment in new and emerging technology will ensure we maintain our technological edge, with faster and contemporary ICT systems. This will ensure that the right information is available to Defence decision-makers at the right time. Investment in Defence’s ICT will guarantee the ADF is able to respond quickly to emerging threats and enable Defence business processes to become more efficient and effective.

In 2018-19 CIOG undertook a number of successful projects. One of note is Project Jackstay. Project Jackstay, jointly funded with Navy, supported the delivery of modernised information and operating systems across the Navy fleet. Many of the Navy’s older systems were incompatible, so a completely new operating system and local access network was required to ensure that all of the Navy fleet could continue to successfully conduct operations at sea.

Project Jackstay’s aim was to rapidly solve the operating system and equipment issues by designing, building and deploying a modern operating system using Windows 10 on a new and fully supported ICT system. The new system is considered to be the most advanced and secure Windows 10 deployed PROTECTED integrated network in Defence. It provides faster operation, modernised communications and collaboration and an array of new infrastructure software, resulting in modernised and simplified systems.

Project Jackstay was a stand-out success for CIOG this year. It reduced cost of maintenance, improved time to respond for application support, and improved the productivity of ships’ staff. But, most importantly, it demonstrated how different areas of Defence can work together with industry to deliver complex ICT change projects. This project will be a model for future reforms and sets the benchmark for collaboration and agility.

During the last 12 months, Navy and CIOG have achieved outstanding results in delivering contemporary information environments to our warships. The activity undertaken over the last 12 months has demonstrated that positive outcomes can be achieved in accelerated time frames when required through a common vision, a common goal, and common purpose.

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Purchasing Defence undertakes its procurement in accordance with the Commonwealth Procurement Rules and the associated Procurement Connected Policies and Defence-specific procurement policies. These and other mandatory procurement requirements are expanded, explained and operationalised through the Defence Procurement Policy Manual. To assist Defence officials to comply, Defence also provides procurement guidance, fact sheets, tools and templates that guide, inform and ensure proper consideration and good governance of Defence procurements.

In accordance with the Commonwealth Procurement Rules, Defence publishes the Defence Annual Procurement Plan on AusTender (www.tenders.gov.au). The Defence Annual Procurement Plan gives industry notice of proposed Defence procurements and enables industry to prepare for the competitive tendering phase. Defence also publishes all open tenders on AusTender.

Procurement initiatives to support small business Defence supports small business participation in the Commonwealth Government procurement market. Small business participation statistics are available on the Department of Finance’s website.

Non-corporate Commonwealth entities’ payment terms reflect the Resource Management Guide No 417—Supplier On-Time or Pay Interest Policy. To comply with the policy, Defence reduced the default payment terms for contracts valued at $1 million (GST inclusive) or less from 30 days to 20 days to ensure that small businesses are paid and recognise the importance of doing so. The results of the survey of government payments to small business are available on the Treasury’s website.

To ensure supply chain integrity of Commonwealth procurement contracts, the Black Economy Procurement Connected Policy seeks to prevent illegal supplier practices that allow some suppliers to gain an advantage over the majority of suppliers that meet their regulatory tax obligations. To comply with the policy, Defence has implemented a mandatory procurement policy and included provisions in Defence contracting templates that require Defence officials to exclude tenderers that have not submitted a satisfactory and valid Statement of Tax Record for contracts over $4 million (GST inclusive). This policy promotes compliant, ethical and competitive procurement processes and assists small businesses to participate in the full range of Defence procurement activities.

Indigenous procurement policy Defence remains committed to stimulating Indigenous economic development and growing the Indigenous business sector.

Since the introduction of the Commonwealth Indigenous Procurement Policy, Defence has consistently exceeded annual portfolio targets set by the Department of the Prime Minister and Cabinet. In 2018-19 the Defence target remained at 3 per cent of eligible domestic contracts, equalling 618 contracts for the Defence portfolio.

Defence’s performance against the portfolio’s annual targets is published on the Department of the Prime Minister and Cabinet Indigenous Procurement website, listed in Appendix D.

Defence’s commitment and pathway to meeting the outcomes of the Commonwealth Indigenous Procurement Policy is articulated in Defence’s Indigenous Procurement Strategy. Through strong leadership, raised awareness and clear communication, Defence is well positioned to deliver on supplier diversity and Indigenous engagement outcomes across our procurement environment.

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Defence industry engagement supports small business and innovation Defence helps industry and academia develop innovative technologies to respond to new security challenges. We collaborate with small business and with universities and support local industry around Australia.

The groundbreaking technologies of the future will come not only from large multinational corporations and national research organisations, but, increasingly, from Australian small business. Innovative Australian companies are making advances in important fields like space and cyber that will be central to maintaining Australia’s technological edge in defence. However, self-funding the development of game-changing technologies can be challenging for small business—which is where the Defence Innovation Hub comes in.

The Hub is working closely with businesses across the country to help turn their good ideas into advanced capabilities. Defence is seeking to build an investment portfolio of $640 million by 2025-26 and has already invested around $130 million in innovation contracts. Around 85 per cent of these are with small businesses.

In 2018-19 the Hub signed 32 innovation contracts worth more than $70.2 million through its open solicitation process. In September 2018, five contracts with a combined value of $5 million were awarded through targeted solicitation at Army Innovation Day.

With Defence’s assistance, local businesses are developing technologies to counter cyber threats, create unmanned platforms, improve the accuracy and range of military weapons, and build radars that can detect threats more accurately, to name just a few examples. As these Australian innovations mature through the Hub, Defence will seek to build them into Australia’s capability edge.

Across Australia, Defence’s Local Industry Capability Plans aim to maximise opportunities for local businesses to be involved in major Defence infrastructure projects, through early engagement to supply goods and services.

Prime construction contractors assess the capacity and capability of local markets, including how they will engage with local industry in preparing their tender and how they will maximise opportunities for local companies to compete.

Royal Australian Navy sailors from Fleet Support Unit—North work alongside Thales contractors on patrol boat HMAS Maitland at HMAS Coonawarra, Darwin, on 21 January 2018.

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An example is the HMAS Cerberus redevelopment project in Victoria, worth $465.6 million, to remediate and upgrade facilities and engineering infrastructure to improve training facilities and base support services. This project will have strong economic benefits for the region, with opportunities for the construction industry until 2025. So far, local industry has been awarded 47 contracts worth approximately $194 million.

Cooperation with Australia’s allies and regional partners is an important element of building Defence’s scientific and technological capability. Our international engagement is critical for conducting world-class research. In 2018-19 the Next Generation Technologies Fund invested $44 million in new projects, bringing the total commitment to over $150 million. Projects included new research networks in quantum technologies and integrated intelligence, and a state-based university research network in Western Australia. The single largest investment was $12 million for the new Smart Satellite Cooperative Research Centre, a $245 million industry-driven initiative that aims to build world-class space systems in Australia.

Defence Science and Technology partners with universities and industry to co-host the Emerging Disruptive Technology Assessment Symposium series. In 2018-19 these seminars explored the expansive fields of biotechnology and space technology from multiple perspectives to understand better their application to and implications for national security.

The US Department of Defense Multi-University Research Initiative selected three Australian universities to work with seven United States counterparts to develop a quantum computing ‘noise-cancelling’ system. This initiative awards grants to Australian universities to strengthen their research capacity, skills and global networks in research topics of priority to Defence’s future capabilities.

For the first time, the Small Business Innovation Research for Defence program partnered with the UK’s Defence and Security Accelerator to seek research proposals for developing advanced armour protection materials. This will lead to more opportunity for Australia’s small to medium enterprises to undertake research projects that have potential for Defence application.

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Capital investment Defence has continued to deliver the ambitious $200 billion recapitalisation of Australia’s defence capability originally outlined in the 2016 Defence White Paper and associated Integrated Investment Program (IIP). Through 2018-19 the Government approved a total of $12.4 billion of capital and sustainment investment across major equipment, facilities, infrastructure, information and communications technology, and science and technology. Permanent participation in the Investment Committee by the Department of the Prime Minister and Cabinet and the Department of Finance has strengthened Defence’s capability submissions to Government.

Capability investment The 2016 Defence White Paper set out the Government’s vision to enhance Australia’s defence capability, deepen our international security partnerships and collaborate with defence industry and science and technology research partners in support of our nation’s security. The IIP is dynamic: since the 2016 Defence White Paper it has continued to respond to changing priorities and threats, while balancing capability, strategy and resources. The IIP contains all elements of the Government’s defence investment, including new weapons, platforms, systems and enabling equipment; facilities and infrastructure; workforce; information and communications technology; and science and technology.

Since the launch of the 2016 Defence White Paper, the Government has approved a number of capability investments across the major equipment, facilities and infrastructure, information and communications technology and science and technology elements to deliver the Government’s capability requirements.

During 2018-19, the Government approved 115 capability-related submissions. It gave 14 ‘First Pass’ approvals, 20 ‘Second Pass’ approvals and 81 ‘Other Pass’ approvals. Of the 81 ‘Other Pass’ approvals, 23 were granted for submissions that provided advice to Government on current and future capability; and 58 projects were approved for early access to IIP funding. This early funding is used to complete critical capability development work and risk reduction activities ahead of seeking First and/or Second Pass approval from Government.

Significant government announcements in 2018-19 include the following:

• Maritime and anti-submarine warfare stream:

- Approval of the Attack Class Submarine Program’s Strategic Partnering Agreement and the signing of the Design Contract, worth $605 million, with Naval Group. The formalisation of the Strategic Partnering Agreement represents the contractual basis for the Attack Class Submarine Program, and the Design Contract with Naval Group enables design work to progress through to 2021. The Strategic Partnering Agreement and Design Contract with Naval Group are part of a $50 billion investment which will see 12 regionally superior submarines designed and built in Australia for the Navy.

- Second Pass approval for the acquisition of the second MQ-4 Triton, valued at approximately $350 million. This approval is for the second aircraft of a planned fleet of six aircraft that Australia is acquiring through a cooperative program with the United States Navy. The aircraft will be based at RAAF Base Edinburgh in South Australia.

• Intelligence, surveillance, reconnaissance and electronic warfare, and space and cyber stream:

- First Pass approval for Fleet Information Modernisation (FIE). This project, valued at approximately $600 million, supports the rollout of contemporary computer systems to the fleet over the next decade. FIE will strengthen the Navy’s computer networks, ensuring the Navy continues to meet the challenges of modern warfare.

- Second Pass approval for selected Intelligence, Surveillance and Reconnaissance (ISR) data and applications integration activities, valued at approximately $500 million in acquisition and sustainment. The first tranche will acquire an ISR search and discovery capability, deliver an ISR development and support centre, and sustain the ISR integration capability.

• Land combat and amphibious warfare stream:

- The Government has not made any public announcements on approvals for this stream in 2018-19. However, the Government is continuing to deliver the capability Defence needs to meet its strategic objectives.

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• Air and sea lift stream:

- Second Pass approval for Additional Chinook Facilities. The new facilities, valued at approximately $33 million, will be built at RAAF Base Townsville to accommodate the additional Chinooks being purchased under a separate project. The project includes helicopter shelters, logistics support infrastructure, working accommodation and helicopter tarmac spaces.

• Strike and air combat stream:

- Second Pass approval for the Short Range Ground Based Air Defence Capability. The project, valued at approximately $2.5 billion, will acquire and sustain a new short-range ground-based air defence capability and will contribute to the protection of our service men and women from modern airborne threats.

• Key enablers stream:

- Second Pass approval for Navy Training Pipeline Simulation Requirements. The project, valued at approximately $80 million, will acquire and sustain a new bridge simulation trainer at HMAS Stirling in Western Australia; and a new command team trainer and upgrades to other simulators at HMAS Watson in Sydney.

- Second Pass approval for Defence Science and Technology Group High Performance Computing Centre. The project, valued at approximately $68 million, will construct and sustain a High Performance Computing Centre at the Defence Science and Technology site in Edinburgh, South Australia.

- Approval for the third tranche of the Defence Innovation Hub. As part of Tranche 3, the Australian Army has partnered with the Defence Innovation Hub in awarding an Army Innovation Day contract, valued at more than $1.0 million, to SYPAQ Systems Pty Ltd to develop and demonstrate a next-generation battlefield logistics small unmanned aerial system, called the Precision Payload Delivery System, for use by Australian soldiers.

In 2018-19, four major capital facilities and infrastructure projects, valued at a total of $239 million, were referred to the Parliamentary Standing Committee on Public Works. The committee conducted public hearings on seven major capital facilities and infrastructure projects, valued at $525 million (three of the seven projects, valued at $286 million, were referred in late 2017-18). Six of the seven projects achieved parliamentary approval in 2018-19, at a total value of $306 million. The committee’s recommendation for the seventh project—the Point Wilson Waterside Infrastructure Remediation facilities project, valued at $219 million—is pending.

Also in 2018-19, four medium works capital facilities and infrastructure projects, valued at a total of $31 million, were notified to the committee and subsequently approved. Further information on the Parliamentary Standing Committee on Public Works can be found at Chapter 5—‘Governance and external scrutiny’.

Projects of Concern The Projects of Concern regime is a proven process for managing the remediation of underperforming projects. This is done by implementing an agreed plan to resolve significant commercial, technical, cost and/or schedule difficulties and increasing senior management and ministerial oversight.

Table 7.1 provides a list of Projects of Concern as at 30 June 2019. One change was made since the 2018- 19 reporting period—the removal of the Australian Defence Satellite Communications Capability Terrestrial Enhancement (JNT02008H3F), which was remediated in August 2018.

Table 7.1: Projects of Concern as at 30 June 2019

Project Project number and phase Date added

Multi-Role Helicopter (MRH-90) AIR 9000 Phases 2, 4 and 6 November 2011

Deployable Defence Air Traffic Management and Control System AIR 5431 Phase 1 August 2017

Defence will continue to actively manage the remaining Projects of Concern in 2019-20 as agreed with Government.

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National Naval Shipbuilding Plan 2018-19

The National Naval Shipbuilding Plan, which at $90 billion represents the largest single capital investment in Australia’s history, not only ensures that the ADF has the capability it needs but also ensures that we secure jobs in shipbuilding and advanced manufacturing. It has created innovative state-of-the art shipyards geared towards developing sovereign capability.

The shipbuilding plan is well underway. The first two Arafura-Class Offshore Patrol Vessels are under construction at Osborne, with the keel of the first laid in May 2019. The Osborne yard will also be ready to start building the new Attack-Class submarines in 2023. The new Civmec construction facility at Henderson will be completed in early 2020, ready to start building the third and subsequent Arafura-Class Offshore Patrol Vessels in Western Australia

from 2020. The new frigate construction yard, also being built in Osborne, will be ready to commence Hunter-Class prototyping in 2020 and construction of the first vessel in 2022.

These new naval shipbuilding facilities at Osborne and Henderson will be the most modern and advanced ship and submarine construction facilities in the world. Designs for the Hunter-Class and Attack-Class are progressing very well, and will deliver the world’s most advanced frigates and submarines to the Royal Australian Navy.

The shipbuilding plan is not limited to vessels for Australia’s needs. Three Guardian-Class Patrol Boats were gifted to Tonga, Tuvalu and Papua New Guinea in 2018 and 2019, helping our Pacific neighbours build their resilience and enforce their sovereignty. In total, 21 Guardian-Class Patrol Boats will be gifted to Timor-Leste, Papua New Guinea and other Pacific nations.

Members of the Tuvalu Police Force stand to at the rising of their national flag for the first time on their newly acquired Guardian-class Patrol Boat.

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ENVIRONMENTAL PERFORMANCE8

The Royal Australian Air Force Balloon conducting an early morning flight over Lake Burley Griffin, ACT.

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Defence Environmental Policy and Strategy 2016-2036 The Defence Environmental Policy outlines five strategic aims:

• Defence will deliver a sustainable estate across Defence maritime, land and aerospace areas, activities and operations.

• Defence will understand and manage its environmental impacts.

• Defence will minimise future pollution risks and manage existing contamination risks.

• Defence will improve the efficiency of its resource consumption and strengthen resource security.

• Defence will recognise and manage the Defence estate heritage values.

Land and water management Throughout 2018-19, Defence implemented a number of improvement initiatives in the areas of water quality monitoring, bushfire mitigation and enhancing sustainability performance. Independent reviews were conducted on approaches to water quality monitoring and bushfire mitigation activities. Implementation of the recommendations of these reviews will result in greater consistency in application of policy and improved management of water and land.

Defence has developed memoranda of understanding with most state and territory bushfire management authorities to strengthen cooperative arrangements between the agencies and ensure better preparedness for bushfire events affecting Defence properties. Defence continues to update and develop bushfire management plans in accordance with policy requirements.

Defence continues to engage Australian Wildlife Conservancy to undertake land management at Yampi Sound Training Area in the West Kimberley region of WA. Australian Wildlife Conservancy’s management activities include monitoring for threatened species, mosaic burning to promote biodiversity, and engaging Traditional Owners in land management activities.

Waste management As the largest generator of waste in the Australian Government, Defence was a key stakeholder in the development of the Australian Government’s National Waste Policy 2018. Defence has developed a waste minimisation and management policy that reflects the principles of the National Waste Policy, with a focus on a circular economy. Defence also participates in relevant product stewardship schemes.

The optimisation of Defence’s waste management practices is an activity designed to increase resource recovery and reduce the amount of waste being sent to landfill. In 2018-19, Defence successfully completed its Waste Optimisation Program pilot, which resulted in an increase of 25 per cent of landfill diversion in the Shoalhaven region. Given this success, Defence is rolling out the Waste Optimisation Program at all its medium and large establishments over the next three years.

In 2018-19 Defence removed over 40,000 tonnes of waste from the Defence estate. By diverting 32 per cent of its waste away from Australian landfills, Defence avoided the release of 11,548 tonnes of carbon emissions into the atmosphere.

With Australia’s recycling industry under pressure to broaden the domestic recycling market, Defence continues to work with industry to identify new opportunities to increase the use of recycled materials.

In addition to supporting the circular economy principles of the National Waste Policy 2018, Defence has adopted a number of specific waste management and policy objectives, including:

• minimising the amount of material being diverted to landfill

• reducing consumption of natural resources

• reducing waste management and disposal costs through waste streaming.

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Referrals under the Environment Protection and Biodiversity Conservation Act Defence maintains an environmental assessment and approval program to meet the requirements of Commonwealth environmental legislation, including identifying and understanding potential adverse impacts of its activities.

Defence continues to conduct assessments under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) in order to determine whether a referral to the Minister for the Environment and Energy is required under the EPBC Act. In 2018-19 Defence did not refer any projects to the Minister for the Environment and Energy for assessment or approval.

Supporting ADF families and their communities

The military lifestyle can present challenges for ADF families. While relocation due to posting is an integral feature of Defence life, members and their families regularly have to move away from established support networks and familiar resources. ADF members’ partners can also face difficulties finding employment.

To support ADF families, Defence provides a range of services including employment assistance funding, connection with community support and resources, and resilience-building programs. Defence community centres and the community groups that operate out of them play a vital role in this support by providing a strong sense of belonging and a support network for families.

Defence maintains 25 community centres on or near military bases around the country to provide space for ADF families to meet, attend information sessions and participate in family activities. Defence also provides funding and governance support to a wide range of community groups that help ADF families, including the Defence Special Needs Support Group.

In February 2019 the local Defence community group supporting the families of RAAF Base Amberley moved into Minka Place, a new multipurpose community facility in the Ripley town centre. Along with regular gatherings of the Amberley community group, the community centre recently hosted KidSMART, a Defence Community Organisation resilience program for school-aged children of ADF families.

The Defence Community Organisation also supports ADF families posting into new locations through the Partner Employment Assistance Program. The program provides funding for initiatives aimed at contributing to the immediate employability of partners of ADF members who are relocated on ADF service or transitioning for medical reasons. Eligible partners can apply for funding to access employment-related initiatives such as interview coaching and personalised résumé development.

Defence will continue to prioritise initiatives that support ADF families and the communities they live in. Supporting Defence community centres and groups and helping partners find employment enables ADF families to form social networks and contributes to their resilience and wellbeing. Thriving families and strong support in the community contribute to ADF retention and, in turn, Defence capability.

The Easter Family Fun Day in the gardens of the Commanding Officer’s House of HMAS Cerberus, Victoria.

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Environmental improvement initiatives and review

Exercise TALISMAN SABRE 2019 Exercise TALISMAN SABRE is the largest combined military exercise undertaken by Australian and international armed forces. It is a biennial exercise and was conducted in July 2019.

In 2018-19 Defence undertook environmental planning in preparation for Exercise TALISMAN SABRE 2019. This included a comprehensive program of community consultation which formed part of a set of management activities to avoid or mitigate environmental impacts and respond to any concerns during conduct of the exercise.

Remediation programs Defence is undertaking ongoing contamination and explosive ordnance waste assessments and remediation across priority areas on the Defence estate, including the continuation of environmental remediation works at Maribyrnong in Victoria and remediation of explosive ordnance waste at multiple locations, including Evans Head Air Weapons Ranges in New South Wales.

Heritage management on the Defence estate Defence manages heritage values on the Defence estate consistent with the principles and requirements of Commonwealth heritage legislation, including identification and management of risks to heritage assets during planning, development and operation of Defence facilities. Defence continues to progress heritage assessments and development of heritage management plans in accordance with the Defence Estate Heritage Strategy and legislative requirements. This has included a refreshed approach aimed at consistency and heritage compliance across the Defence estate and engagement with Traditional Owners for the assessment and protection of Indigenous heritage values.

During 2018-19, Defence worked with Government agencies and community groups regarding the provision of statutory heritage protection post disposal by the Commonwealth, for a range of sites currently in the property disposal planning process, including Defence Site Maribyrnong and Bulimba Barracks in Brisbane.

Pollution prevention program Defence is progressing activities to address high-priority pollutants and polluting activities, including the ongoing use of firefighting foams. Defence is investigating possible fluorine-free replacement foams for use in firefighting vehicles and has developed a program of works to mitigate pollution issues associated with existing infrastructure.

Biodiversity In September 2018, Defence signed a memorandum of understanding with the Department of Infrastructure, Regional Development and Cities to contribute to the biodiversity offset requirements for the Western Sydney Airport project. The memorandum commits Defence to improving the condition of 900 hectares of Cumberland Plain Woodland at Defence Establishment Orchard Hills (located in Western Sydney) for a period of 20 years. Defence can continue to undertake activities within the offset area that do not impact on the achievement of conservation outcomes. At the end of the 20-year term Defence is required to maintain the improved environmental conditions.

Ecologically sustainable development In 2018-19, the ecologically sustainable development program delivered energy and water efficiency projects to improve the sustainability of the Defence estate and reduce whole-of-life costs. Projects included installation of rooftop solar photovoltaic, lighting upgrades and water-efficient fittings. The total net whole-of-life savings over the past five years of the program is estimated to be $15 million.

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Defence is improving its ability to monitor and report on energy and water consumption and waste disposal. The Resource Data Management System (RDMS) currently collates electricity, water and gas meter data as well as waste volumetric data. The RDMS assists in the identification of cost-saving opportunities through increased efficiency in electricity, gas and water use. In 2018-19 the RDMS identified over $600,000 in potential energy and water savings.

The Smart Infrastructure Manual, originally released in 2015, has been revised and is now called the Smart Infrastructure Handbook. The new handbook defines ecologically sustainable development requirements and obligations for the planning, design and construction phases of infrastructure projects, including energy, water, waste, pollution prevention and smart procurement.

Energy In 2017-181 total energy consumption increased by 2.9 per cent compared with 2016-17. This increase can be largely attributed to an 11.7 per cent increase in stationary energy usage (electricity and gas), primarily due to the inclusion of Defence sites at Mulwala and Benalla in the calculation for the first time. Total transport energy usage remained consistent with the previous year, seeing a 0.3 per cent increase.

Defence has committed to a 10-year Defence renewable energy and energy security program to install large-scale renewable energy and energy storage systems across the Defence estate. The renewable energy and energy security program will provide an energy security alternative in conjunction with other measures, such as central emergency power stations and local generators.

Water Defence spent $26 million (including GST) on water and $13.7 million on sewage at Defence-owned facilities in 2017-182. Defence has installed hundreds of water meters to monitor water use at major Defence facilities.

Climate adaptation Defence continues to assess climate risks to the Defence estate and plan appropriate adaptation responses.

Defence fuel supply chain reform and initiatives During 2018-19, the process of mitigating work health and safety and environmental risks within the Defence Fuel Network has continued. Defence has stabilised the Fuel Network and closed all of the 140 highest risks known to exist. A further 729 of the remaining risk actions have been reduced so far as is reasonably practicable, and any priority risks identified through normal business will be targeted as part of the Defence Fuel Transformation Program Tranche 1, which received Government approval in June 2018.

The Defence Fuel Transformation Program focuses on the continued reduction of network risk, improvements in supply chain performance and the reduction of the total cost of ownership. This is achieved through a combination of risk reduction activities, increased industry collaboration and the optimisation of the Fuel Network. The program will be delivered in a series of tranches, Tranche 1 having commenced in July 2018. The value of the program is $1.16 billion, and it is due to be completed by 2045-46.

To reduce accidents and incidents, several sites now have outsourced Operating Agent functions (the Operating Agent is the senior person who knows, understands and operates a Defence Fuel Installation on a day-to-day basis and has direct-line supervision of staff in the Defence Fuel Installation). Eight fuel installations in poor material condition and/or no longer required were decommissioned. To underpin the transformation of the network, the

Notes:

1. Figures for energy consumption are calculated and cross-checked using billing data. This data is unavailable for 2018-19 at the time of print. In line with previous years, updated figures will be provided to Government through Senate estimates in October 2019.

2. Figures for water consumption are calculated and cross-checked using billing data. This data is unavailable for 2018-19 at the time of print. In line with previous years, updated figures will be provided to Government through Senate estimates in October 2019.

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rollout of the Defence Fuel Management System continues. Defence has developed a new fuel network training regime and has rolled out a number of associated courses. Improvements to fuel assets, equipment and control systems have commenced at 21 key sites to address non-compliance and to align with industry best practice. Construction is planned to start at the first site in September 2019.

National PFAS Investigation and Management Program In 2018-19, Defence continued to conduct the National Per- and Poly-fluoroalkyl Substances (PFAS) Investigation and Management Program. The program is investigating the nature and extent of contamination from the historical use of legacy firefighting foams containing PFAS; and implementing evidence-based remediation and ongoing management initiatives.

The program of detailed environmental investigations—conducted in and around 28 Defence properties—is undertaken by experienced environmental services providers in accordance with the National Environment Protection (Assessment of Site Contamination) Measure 1999 (NEPM).

The investigation process includes a Preliminary Site Investigation, a Detailed Site Investigation and, if required, a Human Health and/or Ecological Risk Assessment. This information forms the basis for a site-specific PFAS Management Area Plan (PMAP). The PMAP supports a targeted, efficient, effective and proportionate response, underpinned by accepted available science, to avoid or mitigate the relevant risk/s at each site. Defence has also formalised an Ongoing Monitoring Program (OMP) to continue the routine monitoring of surface water, groundwater and sediment to identify any variations in contamination levels and support future remediation actions should they be required.

Defence provides up-to-date and detailed information to affected local communities and businesses, state and territory governments, local councils and other interested stakeholders. In 2018-19 Defence conducted 33 community engagements.

Defence also continues to provide alternative water to eligible residents neighbouring investigation sites, and implement interim measures for the management and remediation of contaminated water and soil. Interim measures include actions such as the installation of water treatment plants, excavation of soil source areas and the clearance of sediment in drains. Defence also continues to explore emerging PFAS research and technology development and validation opportunities, engaging with national and international industry and research organisations.

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Silvershield

Defence and industry have successfully collaborated to deliver life-saving capability to Afghani defence personnel. In 2018 the Afghanistan National Defense and Security Forces received the first consignment of Silvershield units designed to protect personnel from improvised explosive devices (IEDs). Over 16,000 Silvershield systems have now been delivered to Afghanistan for training and initial rollout.

The Australian-made Silvershield can protect vehicles from radio and mobile phone-triggered IEDs. It is the latest force protection system developed under the award-winning Redwing Program, and is an example of continuous innovation.

Like the Redwing Greygum and Greengum devices, Silvershield was designed by Defence Science and Technology (DST), sponsored by the Joint Counter Improvised Threat Task Force and manufactured by Queensland-based company L3Harris Micreo.

Since 2015 Australian industry and DST have produced and exported over 200,000 individual and vehicle mounted Redwing systems to Afghanistan.

The Redwing program has been recognised as a leading example of innovation and industry collaboration, generating Australian exports worth more than $102 million.

In 2016 it won the inaugural Public Sector Innovation Award from the Institute of Public Sector Administration Australia, and in 2017 it was awarded the Clunies Ross Knowledge Commercialisation Award, which is presented annually by the Australian Academy of Technological Sciences and Engineering.

The Redwing program demonstrates successful collaboration between Defence, industry and academia, and Silvershield is proof of Australian industry’s ability to meet the challenge of high-volume and time-critical manufacturing.

Silvershield is the latest variant of vehicle mounted force protection systems provided to the Afghan National Defence and Security Force under the Australian Defence sponsored Redwing Program.

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Royal Australian Navy guided-missile frigate HMAS Melbourne launches an SM2 missile while holding formation with Republic of Korea Navy guided-missile destroyer ROKS Wang Geon and Japanese Maritime Self Defense Force destroyer JS Ariake during a live-fire demonstration as part of Pacific Vanguard.

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Leading Seaman Marine Technician Maxwell Anthony relays damage control reports during a training exercise aboard HMAS Leeuwin in the Bay of Bengal.

APPENDICES

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187 APPENDIX A: FINANCIAL STATEMENTS

188 DEFENCE ANNUAL REPORT 2018-19

189 APPENDIX A: FINANCIAL STATEMENTS

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191 APPENDIX A: FINANCIAL STATEMENTS

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193 APPENDIX A: FINANCIAL STATEMENTS

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195 APPENDIX A: FINANCIAL STATEMENTS

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201 APPENDIX A: FINANCIAL STATEMENTS

202 DEFENCE ANNUAL REPORT 2018-19

203 APPENDIX A: FINANCIAL STATEMENTS

204 DEFENCE ANNUAL REPORT 2018-19

205 APPENDIX A: FINANCIAL STATEMENTS

206 DEFENCE ANNUAL REPORT 2018-19

207 APPENDIX A: FINANCIAL STATEMENTS

208 DEFENCE ANNUAL REPORT 2018-19

209 APPENDIX A: FINANCIAL STATEMENTS

210 DEFENCE ANNUAL REPORT 2018-19

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213 APPENDIX A: FINANCIAL STATEMENTS

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215 APPENDIX A: FINANCIAL STATEMENTS

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217 APPENDIX A: FINANCIAL STATEMENTS

218 DEFENCE ANNUAL REPORT 2018-19

219 APPENDIX A: FINANCIAL STATEMENTS

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221 APPENDIX A: FINANCIAL STATEMENTS

222 DEFENCE ANNUAL REPORT 2018-19

223 APPENDIX A: FINANCIAL STATEMENTS

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225 APPENDIX A: FINANCIAL STATEMENTS

226 DEFENCE ANNUAL REPORT 2018-19

227 APPENDIX A: FINANCIAL STATEMENTS

228 DEFENCE ANNUAL REPORT 2018-19

229 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Appendix B: Additional workforce tables Table B.1: All ongoing employees, 2018-19

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

NSW 1,354 26 1,380 940 175 1,115 - - - 2,495

Qld 617 14 631 531 65 596 - - - 1,227

SA 1,453 37 1,490 461 79 540 - 1 1 2,031

Tas 28 2 30 34 7 41 - - - 71

Vic1 2,089 49 2,138 1,080 175 1,255 1 - 1 3,394

WA 274 1 275 158 25 183 - - - 458

ACT2 3,163 75 3,238 3,106 437 3,543 - - - 6,781

NT 96 2 98 107 4 111 - - - 209

Overseas 6 - 6 5 - 5 - - - 11

Total 9,080 206 9,286 6,422 967 7,389 1 1 2 16,677

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

Table B.2: All ongoing employees, 2017-18

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

NSW 1,444 28 1,472 939 175 1,114 - - - 2,586

Qld 662 14 676 526 57 583 - - - 1,259

SA 1,452 30 1,482 457 76 533 - 1 1 2,016

Tas 29 2 31 34 7 41 - - - 72

Vic1 2,165 50 2,215 1,085 181 1,266 - - - 3,481

WA 271 3 274 160 24 184 - - - 458

ACT2 4,297 115 4,412 3,463 557 4,020 - - - 8,432

NT 117 - 117 128 3 131 - - -- 248

Overseas 24 - 24 4 - 4 - - - 28

Total 10,461 242 10,703 6,796 1,080 7,876 - 1 1 18,580

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

230 DEFENCE ANNUAL REPORT 2018-19

Table B.3: All non-ongoing employees, 2018-19

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

NSW 5 1 6 4 - 4 - - - 10

Qld 5 - 5 3 1 4 - - - 9

SA 21 10 31 6 3 9 - - - 40

Tas - - - - - - - - - 0

Vic1 42 1 43 39 - 39 - - - 82

WA 1 - 1 1 - 1 - - - 2

ACT2 35 1 36 32 11 43 1 - 1 80

NT - - - 1 - 1 - - - 1

Overseas 1 - 1 - - 0 - - 0 1

Total 110 13 123 86 15 101 1 0 1 225

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

Table B.4: All non-ongoing employees, 2017-18

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

NSW 11 1 12 19 2 21 - - - 33

Qld 3 1 4 1 - 1 - - - 5

SA 8 7 15 1 1 2 - - - 17

Tas - - - - - - - - - -

Vic1 41 2 43 30 - 30 - - - 73

WA 11 1 12 3 - 3 - - - 15

ACT2 39 2 41 27 5 32 - - - 73

NT - 1 1 - - - - -- - 1

Overseas 1 - 1 - - - - - - 1

Total 114 15 129 81 8 89 - - - 218

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

231 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.5: Australian Public Service Act ongoing employees, 2018-19

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

SES 4 1 - 1 - - - - - - 1

SES 3 5 - 5 3 - 3 - - - 8

SES 2 25 - 25 10 - 10 - - - 35

SES 1 51 1 52 40 - 40 - - - 92

EL 2 1,098 14 1,112 417 25 442 - - - 1,554

EL 1 2,104 33 2,137 1,064 156 1,220 - 1 1 3,358

APS 6 2,726 77 2,803 1,698 313 2,011 - - v 4,814

APS 5 1,488 30 1,518 1,153 140 1,293 - - - 2,811

APS 4 720 16 736 863 132 995 - - - 1,731

APS 3 422 16 438 722 149 871 - - - 1,309

APS 2 335 11 346 366 41 407 1 - 1 754

APS 1 105 8 113 86 11 97 - - - 210

Total 9,080 206 9,286 6,422 967 7,389 1 1 2 16,677

Note: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions.

Table B.6: Australian Public Service Act ongoing employees, 2017-18

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

SES 4 1 - 1 - - - - - - 1

SES 3 6 - 6 2 - 2 - - - 8

SES 2 25 - 25 10 - 10 - - - 35

SES 1 60 1 61 38 - 38 - - - 99

EL 2 1,246 19 1,265 406 37 443 - - - 1,708

EL 1 2,419 53 2,472 1,149 208 1,357 - 1 1 3,830

APS 6 3,106 69 3,175 1,738 328 2,066 - - - 5,241

APS 5 1,692 41 1,733 1,164 155 1,319 - - - 3,052

APS 4 855 19 874 923 135 1,058 - - - 1,932

APS 3 461 14 475 799 156 955 - - - 1,430

APS 2 453 18 471 468 51 519 - - - 990

APS 1 137 8 145 99 10 109 - - - 254

Total 10,461 242 10,703 6,796 1,080 7,876 - 1 1 18,580

Note: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

232 DEFENCE ANNUAL REPORT 2018-19

Table B.7: Australian Public Service Act non-ongoing employees, 2018-19

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

SES 4 - - - - - - - - - -

SES 3 1 - 1 - - - - - - 1

SES 2 2 - 2 - - - - - - 2

SES 1 1 - 1 - - - - - - 1

EL 2 6 7 13 2 - 2 - - - 15

EL 1 9 3 12 5 2 7 - - - 19

APS 6 24 1 25 14 2 16 1 - 1 42

APS 5 12 - 12 12 6 18 - - - 30

APS 4 10 1 11 19 4 23 - - - 34

APS 3 10 1 11 14 1 15 - - - 26

APS 2 16 - 16 11 - 11 - - - 27

APS 1 19 - 19 9 - 9 - - - 28

Total 110 13 123 86 15 101 1 - 1 225

Note: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions.

Table B.8: Australian Public Service Act non-ongoing employees, 2017-18

Male Female Indeterminate Total

Full-time

Part-time

Total Male

Full-time

Part-time

Total Female

Full-time

Part-time

Total

Indeterminate

SES 4 - - - - - - - - - -

SES 3 3 - 3 - - - - - - 3

SES 2 2 - 2 - - - - - - 2

SES 1 - - - - - - - - - -

EL 2 8 8 16 1 - 1 - - - 17

EL 1 5 2 7 3 1 4 - - - 11

APS 6 5 1 6 8 2 10 - - - 16

APS 5 7 1 8 9 2 11 - - - 19

APS 4 13 1 14 9 1 10 - - - 24

APS 3 16 1 17 22 2 24 - - - 41

APS 2 23 1 24 12 - 12 - - - 36

APS 1 32 - 32 17 - 17 - - - 49

Total 114 15 129 81 8 89 - - - 218

Note: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

233 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.9: Australian Public Service Act employees by full-time and part-time status, 2018-19

Ongoing Non-Ongoing Total

Full-time Part-time

Total

Ongoing Full-time Part-time

Total

Non-ongoing

SES 4 1 - 1 - - - 1

SES 3 8 - 8 1 - 1 9

SES 2 35 - 35 2 - 2 37

SES 1 91 1 92 1 - 1 93

EL 2 1,515 39 1,554 8 7 15 1,569

EL 1 3,168 190 3,358 14 5 19 3,377

APS 6 4,424 390 4,814 39 3 42 4,856

APS 5 2,641 170 2,811 24 6 30 2,841

APS 4 1,583 148 1,731 29 5 34 1,765

APS 3 1,144 165 1,309 24 2 26 1,335

APS 2 702 52 754 27 - 27 781

APS 1 191 19 210 28 - 28 238

Total 15,503 1,174 16,677 197 28 225 16,902

Note: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions.

Table B.10: Australian Public Service Act employees by full-time and part-time status, 2017-18

Ongoing Non-Ongoing Total

Full-time Part-time

Total

Ongoing Full-time Part-time

Total

Non-ongoing

SES 4 1 - 1 - - - 1

SES 3 8 - 8 3 - 3 11

SES 2 35 - 35 2 - 2 37

SES 1 98 1 99 - - - 99

EL 2 1,652 56 1,708 9 8 17 1,725

EL 1 3,568 262 3,830 8 3 11 3,841

APS 6 4,844 397 5,241 13 3 16 5,257

APS 5 2,856 196 3,052 16 3 19 3,071

APS 4 1,778 154 1,932 22 2 24 1,956

APS 3 1,260 170 1,430 38 3 41 1,471

APS 2 921 69 990 35 1 36 1,026

APS 1 236 18 254 49 - 49 303

Total 17,257 1,323 18,580 195 23 218 18,798

Note: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Part-time employees are those with weekly hours less than the standard hours. It does not relate to employees in part-time positions. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

234 DEFENCE ANNUAL REPORT 2018-19

Table B.11: Permanent ADF members, 2018-19 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

NSW 4,966 4,436 3,308 12,710 1,277 708 957 2,942 - - - - 6,243 5,144 4,265 15,652

Qld 605 10,425 2,556 13,586 205 1,847 822 2,874 - - - - 810 12,272 3,378 16,460

SA 117 1,699 1,538 3,354 16 177 361 554 - - - - 133 1,876 1,899 3,908

Tas 19 48 8 75 3 8 3 14 - - - - 22 56 11 89

Vic

1

1,437 2,600 805 4,842 438 471 277 1,186 1 1 - 2 1,876 3,072 1,082 6,030

WA 2,029 811 238 3,078 487 93 61 641 1 - - 1 2,517 904 299 3,720

ACT

2

1,309 2,381 1,510 5,200 517 570 649 1,736 - 1 1 2 1,826 2,952 2,160 6,938

NT 451 2,492 718 3,661 126 420 205 751 - - - - 577 2,912 923 4,412

Overseas

3

176 298 283 757 26 25 41 92 - - - - 202 323 324 849

Total 11,109 25,190 10,964 47,263 3,095 4,319 3,376 10,790 2 2 1 5 14,206 29,511 14,341 58,058

Notes: Figures in this table show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

3. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

235 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.12: Permanent ADF members, 2017-18 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

NSW 5,160 4,318 3,585 13,063 1288, 799 955 3,042 - - - - 6,448 5,117 4,540 16,105

Qld 604 11,073 2,349 14,026 184 1,761 719 2,664 - 1 - 1 788 12,835 3,068 16,691

SA 183 1,779 1,667 3,629 24 155 337 516 - - - - 207 1,934 2,004 4,145

Tas 9 47 6 62 3 9 2 14 - - - - 12 56 8 76

Vic

1

1,014 2570, 744 4,328 420 535 215 1,170 - - - - 1,434 3,105 959 5,498

WA 1,836 808 260 2,904 435 97 59 591 1 - - 1 2,272 905 319 3,496

ACT

2

1,224 2,374 1,483 5,081 450 543 638 1,631 - 1 1 2 1,674 2,918 2,122 6,714

NT 492 2,459 754 3,705 114 365 206 685 - - - - 606 2,824 960 4,390

Overseas

3

190 283 299 772 19 19 33 71 - - - - 209 302 332 843

Total 10,712 25,711 11,147 47,570 2,937 4,283 3,164 10,384 1 2 1 4 13,650 29,996 14,312 57,958

Notes: Figures in this table show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G). Some 30 June 2018 figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

3. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

236 DEFENCE ANNUAL REPORT 2018-19

Table B.13: Active Reserve members current report period (2018-19) Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

NSW 792 4,528 1,123 6,443 219 714 263 1,196 - - - - 1,011 5,242 1,386 7,639

Qld 376 4,006 1,177 5,559 103 798 308 1,209 - 1 - 1 479 4,805 1,485 6,769

SA 77 1,236 447 1,760 21 260 113 394 - - - - 98 1,496 560 2,154

Tas 67 419 47 533 15 85 18 118 - - - - 82 504 65 651

Vic

1

218 2,844 357 3,419 68 446 64 578 - - - - 286 3,290 421 3,997

WA 217 1,602 189 2,008 60 261 49 370 - - - - 277 1,863 238 2,378

ACT

2

759 813 861 2,433 254 153 278 685 - - - - 1,013 966 1,139 3,118

NT 69 467 84 620 18 100 26 144 - - - - 87 567 110 764

Overseas 3

8 5 - 13 - - - - - - - - 8 5 - 13

Total 2,583 15,920 4,285 22,788 758 2,817 1,119 4,694 - 1 - 1 3,341 18,738 5,404 27,483

Notes: Figures in this table show Reserve force headcount numbers. Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

3. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

237 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.14: Active Reserve members, 2017-18 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

NSW 741 4,133 1,021 5,895 187 634 264 1,085 - - - - 928 4,767 1,285 6,980

Qld 280 3,688 1,117 5,085 81 704 271 1,056 - - - - 361 4,392 1,388 6,141

SA 63 1190 411 1,664 18 249 98 365 - - - - 81 1,439 509 2,029

Tas 56 400 44 500 20 86 16 122 - - - - 76 486 60 622

Vic

1

199 2,703 333 3,235 54 404 69 527 - - - - 253 3,107 402 3,762

WA 193 1,490 181 1,864 51 230 44 325 - - - - 244 1,720 225 2,189

ACT

2

667 784 822 2,273 235 145 255 635 - - - - 902 929 1,077 2,908

NT 52 398 84 534 22 95 29 146 - - - - 74 493 113 680

Overseas 3

7 7 - 14 - 1 - 1 - - - - 7 8 - 15

Total 2,258 14,793 4,013 21,064 668 2,548 1,046 4,262 - - - - 2,926 17,341 5,059 25,326

Notes: Figures in this table show Reserve force headcount numbers. Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C). Some 30 June 2018 figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

3. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

238 DEFENCE ANNUAL REPORT 2018-19

Table B.15: ADF permanent members, 2018-19 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

Officer

General (E) - 1 - 1 - - - - - - - - - 1 - 1

Lieutenant General (E) 2 3 3 8 - - - - - - - - 2 3 3 8

Major General (E) 10 15 8 33 1 3 2 6 - - - - 11 18 10 39

Brigadier (E) 33 51 33 117 5 7 4 16 - - - - 38 58 37 133

Colonel (E) 126 169 126 421 22 29 22 73 - - - - 148 198 148 494

Lieutenant Colonel (E) 370 594 431 1,395 77 100 103 280 - - - - 447 694 534 1,675

Major (E) 648 1,583 890 3,121 172 281 248 701 - - - - 820 1,864 1,138 3,822

Captain (E) 919 1,523 1,412 3,854 279 277 460 1,016 - 1 - 1 1,198 1,801 1,872 4,871

Lieutenant (E) 263 829 519 1,611 71 290 197 558 - - - - 334 1,119 716 2,169

2nd Lieutenant (E) 45 7 309 361 8 1 105 114 - - - - 53 8 414 475

Officer Cadet (E) 307 560 245 1,112 128 140 127 395 - 1 1 2 435 701 373 1,509

Officer Total 2,723 5,335 3,976 12,034 763 1,128 1,268 3,159 - 2 1 3 3,486 6,465 5,245 15,196

Other Ranks

Regimental Sergeant Major (E) 1 1 1 3 - - - - - - - - 1 1 1 3

Warrant Officer Class 1 (E) 214 593 494 1,301 20 71 77 168 - - - - 234 664 571 1,469

Warrant Officer Class 2 (E) 869 1,747 644 3,260 113 173 111 397 - - - - 982 1,920 755 3,657

Staff Sergeant (E) - 2 - 2 - - - - - - - - - 2 - 2

Sergeant (E) 1,204 2,127 1,320 4,651 241 267 268 776 - - - - 1,445 2,394 1,588 5,427

Corporal (E) 1,890 3,687 1,798 7,375 516 598 459 1,573 1 - - 1 2,407 4,285 2,257 8,949

Lance Corporal (E) - 1,336 - 1,336 - 147 - 147 - - - - - 1,483 - 1,483

Private Proficient (E) 2,701 7,135 2,128 11,964 886 1,033 668 2,587 - - - - 3,587 8,168 2,796 14,551

Private (E) 616 1,487 327 2,430 273 445 282 1,000 - - - - 889 1,932 609 3,430

Private Trainee (E) 676 1,291 186 2,153 220 309 185 714 1 - - 1 897 1,600 371 2,868

Recruit (E) 215 449 90 754 63 148 58 269 278 597 148 1023

Other Ranks Total 8,386 19,855 6,988 35,229 2,332 3191 2,108 7,631 2 - - 2 10,720 23,046 9,096 42,862

Total ADF 11,109 25,190 10,964 4,7263 3,095 4,319 3,376 10,790 2 2 1 5 14,206 29,511 14,341 58,058

Note: Figures in this table show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

239 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.16 ADF permanent members, 2017-18 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

Officer

General (E) - - 1 1 - - - - - - - - - - 1 1

Lieutenant General (E) 3 2 2 7 - - - - - - - - 3 2 2 7

Major General (E) 13 17 9 39 - 1 2 3 - - - - 13 18 11 42

Brigadier (E) 34 52 35 121 7 9 2 18 - - - - 41 61 37 139

Colonel (E) 112 173 129 414 18 27 21 66 - - - 130 200 150 480

Lieutenant Colonel (E) 349 574 428 1,351 64 87 101 252 - - - - 413 661 529 1,603

Major (E) 633 1,570 935 3,138 155 289 235 679 - - - - 788 1,859 1,170 3,817

Captain (E) 946 1,537 1,398 3,881 282 270 449 1,001 - - - - 1,228 1,807 1,847 4,882

Lieutenant (E) 242 870 478 1,590 77 286 194 557 - 1 - 1 319 1,157 672 2,148

2nd Lieutenant (E) 30 4 324 358 7 1 86 94 - - - - 37 5 410 452

Officer Cadet (E) 296 591 224 1,111 95 146 122 363 - 1 1 2 391 738 347 1,476

Officer Total 2,658 5,390 3,963 12,011 705 1,116 1,212 3,033 - 2 1 3 3,363 6,508 5,176 15,047

Other Ranks

Regimental Sergeant Major (E) 1 1 1 3 - - - - - - - - 1 1 1 3

Warrant Officer Class 1 (E) 211 585 505 1,301 18 75 67 160 - - - - 229 660 572 1,461

Warrant Officer Class 2 (E) 872 1,727 652 3,251 110 184 108 402 - - - - 982 1,911 760 3,653

Staff Sergeant (E) - 2 - 2 - - - - - - - - - 2 - 2

Sergeant (E) 1,166 2,107 1,373 4,646 206 277 283 766 - - - - 1,372 2,384 1,656 5,412

Corporal (E) 1,841 3,725 1,831 7,397 495 578 441 1,514 1 - - 1 2,337 4,303 2,272 8,912

Lance Corporal (E) - 1,353 - 1,353 - 162 - 162 - - - - - 1,515 - 1,515

Private Proficient (E) 3,050 7,600 2,304 12,954 836 902 623 2,361 - - - 3,886 8,502 2,927 15,315

Private (E) 380 1,665 252 2,297 277 415 197 889 - - - - 657 2,080 449 3,186

Private Trainee (E) 424 1,208 214 1,846 246 358 164 768 - - - - 670 1,566 378 2,614

Recruit (E) 109 348 52 509 44 216 69 329 - - - - 153 564 121 838

Other Ranks Total 8,054 20,321 7,184 35,559 2,232 3,167 1,952 7,351 1 - - 1 10,287 23,488 9,136 42,911

Total ADF 10,712 25,711 11,147 47,570 2,937 4,283 3,164 10,384 1 2 1 4 13,650 29,996 14,312 57,958

Note: Figures in this table show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G). Some 30 June 2018 figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

240 DEFENCE ANNUAL REPORT 2018-19

Table B.17: ADF active Reserve members, 2018-19 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

Officer

General (E) - - 1 1 - - - - - - - - - - 1 1

Lieutenant General (E) 4 2 2 8 - - - - - - - - 4 2 2 8

Major General (E) 18 20 21 59 2 2 1 5 - - - - 20 22 22 64

Brigadier (E) 52 72 64 188 3 7 4 14 - - - - 55 79 68 202

Colonel (E) 106 227 167 500 7 22 24 53 - - - - 113 249 191 553

Lieutenant Colonel (E) 254 496 325 1,075 40 70 55 165 - - - - 294 566 380 1,240

Major (E) 363 1,100 623 2,086 91 186 144 421 - - - - 454 1,286 767 2,507

Captain (E) 375 992 596 1,963 123 233 212 568 - - - - 498 1,225 808 2,531

Lieutenant (E) 5 408 35 448 5 161 24 190 - - - - 10 569 59 638

2nd Lieutenant (E) - 2 1 3 - 1 1 2 - - - - - 3 2 5

Officer Cadet (E) - 454 - 454 - 101 - 101 - - - - 555 - 555

Officer Total 1,177 3,773 1,835 6,785 271 783 465 1,519 - - - - 1,448 4,556 2,300 8,304

Other Ranks

Regimental Sergeant Major (E) - - - - - - - - - - - - - - - -

Warrant Officer Class 1 (E) 114 469 341 924 5 61 31 97 - - - - 119 530 372 1,021

Warrant Officer Class 2 (E) 314 650 261 1,225 45 73 44 162 - - - - 359 723 305 1,387

Staff Sergeant (E) - 18 - 18 - 1 - 1 - - - - - 19 - 19

Sergeant (E) 245 996 397 1,638 109 187 137 433 - - - - 354 1,183 534 2,071

Corporal (E) 383 1,756 658 2,797 172 350 204 726 - - - - 555 2,106 862 3,523

Lance Corporal (E) - 961 - 961 - 95 - 95 - - - - - 1,056 - 1,056

Private Proficient (E) 342 3,303 635 4,280 149 544 196 889 - - - - 491 3,847 831 5,169

Private (E) 6 2,136 121 2,263 6 346 30 382 - - - - 12 2,482 151 2,645

Private Trainee (E) - 893 24 917 - 173 9 182 - - - - - 1,066 33 1,099

Recruit (E) 2 965 13 980 1 204 3 208 - 1 - 1 3 1,170 16 1,189

Other Ranks Total 1,406 12,147 2,450 16,003 487 2,034 654 3,175 - 1 - 1 1,893 14,182 3,104 19,179

Total ADF 2,583 15,920 4,285 22,788 758 2,817 1,119 4,694 - 1 - 1 3,341 18,738 5,404 27,483

Note: Figures in this table show Reserve force headcount numbers, Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

241 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.18: ADF active Reserve members, 2017-18 Male Female Indeterminate Total

Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF Navy Army

Air

Force ADF

Officer

General (E) - - - - - - - - - - - - - - - -

Lieutenant General (E) 3 2 2 7 - - - - - - - - 3 2 2 7

Major General (E) 14 21 22 57 2 1 1 4 - - - - 16 22 23 61

Brigadier (E) 48 66 66 180 2 7 4 13 - - - - 50 73 70 193

Colonel (E) 99 205 157 461 6 17 23 46 - - - - 105 222 180 507

Lieutenant Colonel (E) 227 476 307 1,010 33 65 52 150 - - - - 260 541 359 1,160

Major (E) 342 1,052 576 1,970 78 179 137 394 - - - - 420 1,231 713 2,364

Captain (E) 339 919 550 1,808 121 207 189 517 - - - - 460 1,126 739 2,325

Lieutenant (E) 5 357 37 399 4 124 21 149 - - - - 9 481 58 548

2nd Lieutenant (E) - 1 1 2 - 1 1 2 - - - - - 2 2 4

Officer Cadet (E) - 429 - 429 - 101 - 101 - - - - - 530 - 530

Officer Total 1,077 3,528 1,718 6,323 246 702 428 1,376 - - - - 1,323 4,230 2,146 7,699

Other Ranks

Regimental Sergeant Major (E) - - - - - - - - - - - - - - - -

Warrant Officer Class 1 (E) 99 443 327 869 4 60 25 89 - - - - 103 503 352 958

Warrant Officer Class 2 (E) 304 629 245 1,178 41 62 45 148 - - - - 345 691 290 1,326

Staff Sergeant (E) - 21 - 21 - 1 - 1 - - - - - 22 - 22

Sergeant (E) 213 959 389 1,561 95 184 127 406 - - - - 308 1,143 516 1,967

Corporal (E) 301 1,577 617 2,495 156 305 193 654 - - - - 457 1,882 810 3,149

Lance Corporal (E) - 876 - 876 - 91 - 91 - - - - - 967 - 967

Private Proficient (E) 258 3,213 582 4,053 121 524 193 838 - - - - 379 3,737 775 4,891

Private (E) 5 1,671 100 1,776 5 306 23 334 - - - - 10 1,977 123 2,110

Private Trainee (E) - 734 12 746 - 132 3 135 - - - - - 866 15 881

Recruit (E) 1 1,142 23 1,166 - 181 9 190 - - - - 1 1,323 32 1,356

Other Ranks Total 1,181 11,265 2,295 14,741 422 1,846 618 2,886 - - - - 1,603 13,111 2,913 17,627

Total ADF 2,258 14,793 4,013 21,064 668 2,548 1,046 4,262 - - - - 2,926 17,341 5,059 25,326

Note: Figures in this table show Reserve force headcount numbers, Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C). Some 30 June 2018 figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

242 DEFENCE ANNUAL REPORT 2018-19

Table B.19: ADF permanent and Reserve members, 2018-19

Permanent1 Active Reserve2

Navy Army

Air

Force ADF Navy Army

Air

Force ADF

Officer

General (E) - 1 - 1 - - 1 1

Lieutenant General (E) 2 3 3 8 4 2 2 8

Major General (E) 11 18 10 39 20 22 22 64

Brigadier (E) 38 58 37 133 55 79 68 202

Colonel (E) 148 198 148 494 113 249 191 553

Lieutenant Colonel (E) 447 694 534 1,675 294 566 380 1,240

Major (E) 820 1,864 1,138 3,822 454 1,286 767 2,507

Captain (E) 1,198 1,801 1,872 4,871 498 1,225 808 2,531

Lieutenant (E) 334 1,119 716 2,169 10 569 59 638

2nd Lieutenant (E) 53 8 414 475 - 3 2 5

Officer Cadet (E) 435 701 373 1,509 - 555 - 555

Officer Total 3,486 6,465 5,245 15,196 1,448 45,56 2,300 8,304

Other Ranks

Regimental Sergeant Major (E) 1 1 1 3 - - - -

Warrant Officer Class 1 (E) 234 664 571 1,469 119 530 372 1,021

Warrant Officer Class 2 (E) 982 1,920 755 3,657 359 723 305 1,387

Staff Sergeant (E) - 2 - 2 - 19 - 19

Sergeant (E) 1,445 2,394 1,588 5,427 354 1,183 534 2,071

Corporal (E) 2,407 4,285 2,257 8,949 555 2,106 862 3,523

Lance Corporal (E) - 1483 - 1483 - 1,056 - 1,056

Private Proficient (E) 3,587 8,168 2,796 14,551 491 3,847 831 5,169

Private (E) 889 1,932 609 3,430 12 2,482 151 2,645

Private Trainee (E) 897 1,600 371 2,868 - 1,066 33 1,099

Recruit (E) 278 597 148 1,023 3 1,170 16 1,189

Other Ranks Total 10,720 23,046 9,096 42,862 1,893 14,182 3,104 19,179

Total ADF 14,206 29,511 14,341 58,058 3,341 18,738 5,404 27,483

Notes:

1. Figures show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

2. Figures show Reserve force headcount numbers, Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

243 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.20: ADF permanent and Reserve members, 2017-18

Permanent1 Active Reserve2

Navy Army

Air

Force ADF Navy Army

Air

Force ADF

Officer

General (E) - - 1 1 - - - -

Lieutenant General (E) 3 2 2 7 3 2 2 7

Major General (E) 13 18 11 42 16 22 23 61

Brigadier (E) 41 61 37 139 50 73 70 193

Colonel (E) 130 200 150 480 105 222 180 507

Lieutenant Colonel (E) 413 661 529 1,603 260 541 359 1,160

Major (E) 788 1,859 1,170 3,817 420 1,231 713 2,364

Captain (E) 1,228 1,807 1,847 4,882 460 1,126 739 2,325

Lieutenant (E) 319 1,157 672 2,148 9 481 58 548

2nd Lieutenant (E) 37 5 410 452 - 2 2 4

Officer Cadet (E) 391 738 347 1476 - 530 - 530

Officer Total 3,363 6,508 5,176 15,047 1,323 42,30 2,146 7,699

Other Ranks

Regimental Sergeant Major (E) 1 1 1 3 - - - -

Warrant Officer Class 1 (E) 229 660 572 1,461 103 503 352 958

Warrant Officer Class 2 (E) 982 1,911 760 3,653 345 691 290 1,326

Staff Sergeant (E) - 2 - 2 - 22 - 22

Sergeant (E) 1,372 2,384 1,656 5,412 308 1,143 516 1,967

Corporal (E) 2,337 4,303 2,272 8,912 457 1,882 810 3,149

Lance Corporal (E) - 1515 - 1,515 - 967 - 967

Private Proficient (E) 3,886 8,502 2,927 15,315 379 3,737 775 4,891

Private (E) 657 2,080 449 3,186 10 1,977 123 2,110

Private Trainee (E) 670 1,566 378 2,614 - 866 15 881

Recruit (E) 153 564 121 838 1 1,323 32 1,356

Other Ranks Total 10,287 23,488 9,136 42,911 1,603 13,111 2,913 17,627

Total ADF 13,650 29,996 14,312 57,958 2,926 17,341 5,059 25,326

Notes: Some 30 June 2018 figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Figures show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

2. Figures show Reserve force headcount numbers, Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

244 DEFENCE ANNUAL REPORT 2018-19

Table B.21: Australian Public Service Act employment type by location, 2018-19

Ongoing Non-Ongoing Total

NSW 2,495 10 2,505

Qld 1,227 9 1,236

SA 2,031 40 2,071

Tas 71 - 71

Vic1 3,394 82 3,476

WA 458 2 460

ACT2 6,781 80 6,861

NT 209 1 210

Overseas 11 1 12

Total 16,677 225 16,902

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

Table B.22: Australian Public Service Act employment type by location, 2017-18

Ongoing Non-Ongoing Total

NSW 2,586 33 2,619

Qld 1,259 5 1,264

SA 2,016 17 2,033

Tas 72 - 72

Vic1 3,481 73 3,554

WA 458 15 473

ACT2 8,432 73 8,505

NT 248 1 249

Overseas 28 1 29

Total 18,580 218 18,798

Notes: Figures in this table show substantive headcount numbers. Figures include paid and unpaid employees. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Victorian figures include individuals located in Albury NSW.

2. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

245 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.23: ADF Permanent and active Reserve members by location, 2018-19

Permanent1 Active Reserve2 Total

NSW 15,652 7,639 23,291

Qld 16,460 6,769 23,229

SA 3,908 2,154 6,062

Tas 89 651 740

Vic3 6,030 3,997 10,027

WA 3,720 2,378 6,098

ACT4 6,938 3,118 10,056

NT 4,412 764 5,176

Overseas5 849 13 862

Total 58,058 27,483 85,541

Notes:

1. Figures show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

2. Figures show Reserve force headcount, Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

3. Victorian figures include individuals located in Albury NSW.

4. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

5. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

Table B.24: ADF permanent and active Reserve members by location, 2017-18

Permanent1 Active Reserve2 Total

NSW 16,105 6,980 23,085

Qld 16,691 6,141 22,832

SA 4,145 2,029 6,174

Tas 76 622 698

Vic3 5,498 3,762 9,260

WA 3,496 2,189 5,685

ACT4 6,714 2,908 9,622

NT 4,390 680 5,070

Overseas5 843 15 858

Total 57,958 25,326 83,284

Notes: Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

1. Figures show permanent force headcount numbers (Service Categories 7 and 6) and do not include Reserves, (Service Categories 5, 4 and 3), Reservists undertaking continuous full-time service (Service Option C) or ADF Gap Year participants (Service Option G).

2. Figures show Reserve force headcount, Reserves include all active members (Service Categories 5, 4 and 3) and Reservists undertaking continuous full-time service (Service Option C).

3. Victorian figures include individuals located in Albury NSW.

4. Australian Capital Territory figures include individuals located in Jervis Bay (Commonwealth), Queanbeyan (NSW) and Bungendore (NSW).

5. Individuals posted overseas for reasons including long-term duty, training, exchange and liaison.

246 DEFENCE ANNUAL REPORT 2018-19

Table B.25: Australian Public Service Act Indigenous employment, 2018-19

Total

Ongoing 386

Non-Ongoing 3

Total 389

Note: Figures in this table show substantive headcount numbers. Data for this table is reliant on self-identification on the Defence human resources system; therefore, the data is likely to under-report actual participation rates.

Table B.26: Australian Public Service Act Indigenous employment, 2017-18

Total

Ongoing 413

Non-Ongoing 5

Total 418

Note: Figures in this table show substantive headcount numbers. Data for this table is reliant on self-identification on the Defence human resources system; therefore, the data is likely to under-report actual participation rates. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

Table B.27: ADF Indigenous members, 2018-19

Navy Army Air Force ADF

Permanent 471 964 288 1,723

Active Reserves 41 540 58 639

Total 512 1,504 346 2,362

Note: Figures in this table show Indigenous headcount numbers. Data for this table is reliant on self-identification on the Defence human resources system; therefore, the data is likely to under-report actual participation rates.

Table B.28: ADF Indigenous members, 2017-18

Navy Army Air Force ADF

Permanent 447 922 235 1,604

Active Reserves 34 442 56 532

Total 481 1,364 291 2,136

Note: Figures in this table show Indigenous headcount numbers. Data for this table is reliant on self-identification on the Defence human resources system; therefore, the data is likely to under-report actual participation rates. Some figures have been adjusted from what was reported in the Defence Annual Report 2017-18 to account for retrospective transactions.

247 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.29: Australian Public Service Act employment salary ranges by classification level, 2018-19

Minimum Salary Maximum Salary

SES 3 $247,687 $540,6001

SES 2 $199,189 $326,4001

SES 1 $164,152 $237,4621

EL 2 $118,376 $190,2304

EL 1 $101,955 $142,0875

APS 6 $80,669 $94,9306

APS 5 $73,636 $79,8417

APS 4 $67,100 $73,256

APS 3 $59,237 $65,270

APS 2 $52,004 $59,0658

APS 1 $45,952 $51,583

Other $247,687 $540,6001

Total $199,189 $326,4001

Notes:

1. Maximum salary paid under an individual remuneration arrangement shown.

2. Includes rates for Chief of Division Grade 2 and Medical Officer Class 6.

3. Includes rate for Chief of Division Grade 1 and Medical Officer Class 5.

4. Maximum rate includes Executive Level 2.1, Executive Level 2.2, Legal and Science specialist structures and Medical Officer Class 3 and 4.

5. Maximum rate includes Public Affairs and Legal specialist structures and Medical Officer Class 1-2.

6. Maximum rate includes Public Affairs Grade 2 retained pay point.

7. Maximum rate includes Senior Technical Officer Grade 1 retained pay point.

8. Maximum rate includes Technical Assistant Grade 2 retained pay point.

248 DEFENCE ANNUAL REPORT 2018-19

Table B.30: Permanent Australian Defence Force salary ranges by rank, 2018-19

Rank Minimum Salary Maximum Salary

Officer of the permanent force (equivalent)

Lieutenant General (E)1 $405,780 $480,994

Major General (E)2 $240,307 $293,053

Brigadier (E)2,3 $197,157 $267,988

Colonel (E)2,3,5 $150,728 $255,843

Lieutenant Colonel (E)2,5 $128,194 $243,452

Major (E)2,5 $89,800 $219,308

Captain (E)2,5 $70,334 $208,159

Lieutenant (E)4 $58,467 $122,567

2nd Lieutenant (E)4 $54,626 $114,411

Other rank of the permanent force (equivalent)

Warrant Officer Class 1 (E) $79,645 $122,581

Warrant Officer Class 2 (E) $73,356 $113,583

Staff Sergeant (E) $70,896 $109,575

Sergeant (E) $63,389 $104,792

Corporal (E) $54,776 $95,824

Lance Corporal (E) $50,387 $89,065

Private Proficient (E) $49,346 $88,024

Private (E) $48,325 $87,008

Officer of the permanent force (equivalent)

Lieutenant General (E)1 $405,780 $480,994

Major General (E)2 $240,307 $293,053

Brigadier (E)2,3 $197,157 $267,988

Colonel (E)2,3,5 $150,728 $255,843

Notes:

1. Some Lieutenant General (E) rates are set by the Remuneration Tribunal.

2. Includes rates for Medical Officers.

3. Includes rates for Chaplains.

4. Includes transitional rates for other rank appointed as officer.

5. Excludes Medical Procedural Specialist

249 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.31: Australian Public Service Act employment performance pay by classification level, 2018-19

Number of employees receiving

performance pay

Aggregated (sum total) of all payments made Average of all

payments made

Minimum

payment made

Maximum payment made

SES 3 - - - - -

SES 2 - - - - -

SES 1 - - - - -

EL 2 1,135 $1,626,955.00 $1,433.00 $124.80 $2,766.70

EL 1 2,598 $2,915,074.00 $1,122.00 $94.66 $1,582.73

APS 6 3,429 $3,059,579.00 $889.00 $15.38 $1,023. 92

APS 5 2,000 $1,519,586.00 $759.00 $95.35 $859.01

APS 4 1,174 $812,756.00 $692.00 $37.40 $797.84

APS 3 1,149 $798,766.00 $695.00 $79.00 $780.92

APS 2 550 $387,726.00 $705.00 $348.00 $738.84

APS 1 43 $30,600.00 $712.00 $478.50 $725.00

Other 12 $8,700.00 $725.00 $725.00 $725.00

Total 12,100 $11,159,738.00 $922.00 - -

Notes:

1. The Enterprise Agreement provides for an annual performance bonus of 1% at the top of the employee’s salary range, inclusive of any additional salary paid by way of an Individual Flexibility Arrangement, or a minimum payment of $725 whichever is the greater. Minimum payments may reflect amounts less than this where the employee is part-time or receives a partial lump-sum payment due to reaching the top of their salary range in the performance year.

2. The performance year is from 1 September to 31 August.

There were no performance bonus payments made to Senior Executive Service employees.

Table B.32: Details of accountable authority during the reporting period, 2018-19

Period as the Accountable Authority

Name Position Date of commencement Date of cessation

Greg Moriarty Secretary 4 September 2017 -

250 DEFENCE ANNUAL REPORT 2018-19

Table B.33: Key management personnel remuneration, 2018-19 Name Position

1

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits ($)

Total

remuneration ($) Base salary ($) Bonuses ($)

Other

benefits and allowances

2

($)

Superannuation contributions ($) Long service

leave ($)

Other long-term benefits ($)

Mr Greg Moriarty Secretary of Defence 759,452 - 2,627 106,672 17,394 - - 886,145

ACM Mark Binskin (Ret) Chief of the Defence Force 12,966 - 12,324 683 0 - - 25,973

GEN Angus Campbell Chief of the Defence Force 764,136 - 32,376 214,805 13,034 - - 1,024,351

VADM Raymond Griggs, RAN (Ret) Vice Chief of the Defence Force

9,143 - 1,058 481 - - - 10,682

VADM David Johnston, RAN Vice Chief of the Defence Force 540,159 - 7,132 150,984 9,937 - - 708,212

Ms Rebecca Skinner Associate Secretary 535,077 - 1,851 65,076 11,494 - - 613,498

VADM Timothy Barrett, RAN (Ret) Chief of Navy 8,727 - 5,107 460 0 - - 14,293

VADM Michael Noonan, RAN Chief of Navy 513,425 - 7,271 144,288 9,485 - - 674,469

LTGEN Richard Burr Chief of Army 517,054 - 2,217 144,419 9,485 - - 673,175

AIRMSHL Gavin Davies Chief of Air Force 513,443 - 10,228 141,936 9,485 - - 675,092

Mr Steven Groves Chief Finance Officer 391,696 - 84 65,995 8,077 - - 465,852

Mr Stephen Pearson Chief Information Officer 533,294 - 4,490 20,098 3,830 - - 561,712

Mr Peter Tesch Deputy Secretary

Strategic Policy & Intelligence

79,032 - - 9,363 1,291 - - 89,686

Mr Thomas Hamilton Deputy Secretary Strategic Policy & Intelligence

230,886 - 71 36,773 4,355 - - 272,085

Mr Scott Dewar Deputy Secretary

Strategic Policy & Intelligence

28,056 - 644 4,775 497 - - 33,972

AIRMSHL Melvin Hupfeld Chief Joint Operations 481,742 - 555 118,043 9,574 - - 609,914

LTGEN Gregory Bilton Chief Joint Operations 4,136 - 2,333 1,564 0 - - 8,033

251 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Name Position

1

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits ($)

Total

remuneration ($) Base salary ($) Bonuses ($)

Other

benefits and allowances

2

($)

Superannuation contributions ($) Long service

leave ($)

Other long-term benefits ($)

Ms Justine Greig Deputy Secretary

Defence People

357,648 - 1,064 60,895 6,989 - - 426,595

AIRMSHL Warren McDonald Chief of Joint Capabilities 315,926 31,274 21,453 114,085 7,499 - - 490,237

Mr Steven Grzeskowiak Deputy Secretary Estate and Infrastructure

368,682 - 71 62,418 7,660 - - 438,831

Prof Tanya Monro Chief Defence

Scientist

136,613 - 10,356 14,942 884 - - 162,795

Dr Todd Mansell Chief Defence

Scientist

119,299 - - 18,525 2,484 - - 140,308

Dr Alexander Zelinsky Chief Defence Scientist 166,540 - - 27,548 3,768 - - 197,856

Mr Tony Fraser Deputy Secretary

Capability Acquisition & Sustainment

373,637 - 6,800 54,264 2,646 - - 437,347

Mr Kim Gillis Deputy Secretary

Capability Acquisition & Sustainment

100,326 - 378 17,634 946 - - 119,284

Mr Stephen Johnson Deputy Secretary National Naval Shipbuilding

287,133 - 2,974 43,182 3,542 - - 336,831

Total 8,148,228 31,274 133,464 1,639,908 144,356 - - 10,097,230

Notes:

1. Those staff who were permanently appointed to or acted in a KMP position for a period of 12 or more continuous weeks were included in the KMP disclosures. Those staff who acted in a KMP role for a shorter period were not included as its unlikely they would have made significant strategic decisions affecting Defence’s long term capability.

2. Other Benefits and Allowances includes the value of items such as housing (including overseas), motor vehicle allowances, retention bonuses, cost of living allowances (to support members and their families in remote or overseas locations), and any associated Fringe Benefits Tax payable by Defence. This column includes non-cash benefits.

252 DEFENCE ANNUAL REPORT 2018-19

Table B.34: Senior executives Australian Public Service (APS) remuneration, 2018-19 Remuneration band

Number of senior executives

1

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits

Total

remuneration

Average base salar y ($) Average bonuses ($)

Average other benefits and allowances

2 ($)

Average superannuation contributions ($)

Average long service leave ($)

Average other long-term benefits ($)

Average termination benefits

3 ($)

Average total remuneration ($)

$0 - $220,000 69 84,369 147 585 13,749 1,744 - 1,653 102,246

$220,001 - $245,000 37 199,332 80 923 31,157 3,870 - - 235,362

$245,001 - $270,000 26 218,536 - 1,927 33,576 4,137 - - 258,176

$270,001 - $295,000 10 215,822 4,274 6,108 33,660 3,820 - 20,634 284,318

$295,001 - $320,000 5 210,477 - 1,265 35,061 4,472 - 56,022 307,297

$320,001 - $345,000 4 277,096 - 702 47,055 5,689 - - 330,542

$345,001 - $370,000 3 292,476 - 18,281 44,189 3,715 - - 358,660

$370,001 - $395,000 - - - - - - - - -

$395,001 - $420,000 1 270,436 - 4,319 38,462 3,344 - 82,650 399,212

$420,001 - $445,000 - - - - - - - - -

$445,001 - $470,000 1 213,163 - 216,418 35,895 4,358 - - 469,833

$470,001 - $495,000 1 175,246 - 256,824 39,158 4,395 - - 475,623

Notes:

1. The number of senior executives listed above is the number of individual SES not the number of SES positions. Staff who were permanently appointed to or acted in an SES level position for a period longer than 6 months are included.

2. Other Benefits and Allowances includes the value of items such as housing (including overseas), motor vehicle allowances, retention bonuses, cost of living allowances (to support members and their families in remote or overseas locations), and any associated Fringe Benefits Tax payable by Defence. This column includes non-cash benefits.

3. In accordance with APSC Guidelines, as a general rule, the standard formula of two weeks’ pay per year of service, to a maximum of 48 weeks, is an appropriate reference point for calculating termination payments under an incentive to retire package.

253 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.35: Star rank Australian Defence Force (ADF) personnel remuneration, 2018-19 Remuneration band

Number of Star ranks

1

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits

Total

remuneration

Average base salary ($) Average bonuses ($)

Average other benefits and allowances ($)

2

Average superannuation contributions ($)

Average long service leave ($)

Average other long-term benefits ($)

Average termination benefits ($)

3

Average total remuneration ($)

$0-$220,000 30 89,447 - 21,111 30,132 2,057 - - 142,747

$220,001-$245,000 3 131,397 - 54,370 43,300 2,185 - - 231,251

$245,001-$270,000 5 160,680 - 34,539 58,277 4,166 - - 257,663

$270,001-$295,000 5 174,671 - 46,601 60,683 4,741 - - 286,696

$295,001-$320,000 26 205,112 288 33,034 67,035 5,103 - - 310,572

$320,001-$345,000 33 216,154 - 39,045 69,129 5,238 - - 329,566

$345,001-$370,000 26 213,719 - 57,229 67,339 5,320 - 15,255 358,861

$370,001-$395,000 11 228,812 - 72,658 73,236 5,991 - - 380,697

$395,001-$420,000 20 215,413 - 86,934 69,781 5,658 - 29,746 407,532

$420,001-$445,000 12 210,570 - 74,584 63,908 5,041 - 82,629 436,731

$445,001-$470,000 7 208,798 - 83,192 64,637 5,431 - 95,024 457,082

$470,001-$495,000 13 207,110 - 102,056 65,840 5,515 - 100,218 480,740

$495,001-$520,000 6 199,402 - 129,046 62,885 5,561 - 110,862 507,755

$520,001-$545,000 5 258,440 43,051 159,241 66,682 5,763 - - 533,175

$545,001-$570,000 1 272,835 - 189,083 78,173 5,496 - - 545,587

$570,001-$595,000 2 203,820 - 192,213 63,733 5,740 - 116,715 582,221

$595,001-$620,000 2 236,086 - 280,691 76,874 5,485 - - 599,136

$620,001-$645,000 - - - - - - - - -

$645,001-$670,000 1 215,595 - 406,963 39,904 5,197 - - 667,659

$670,001-$695,000 - - - - - - - - -

$695,001-$720,000 - - - - - - - - -

$795,001-$820,000 1 213,626 - 520,263 69,694 5,013 - - 808,597

254 DEFENCE ANNUAL REPORT 2018-19

Remuneration band Number of Star ranks

1

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits

Total

remuneration

Average base salary ($) Average bonuses ($)

Average other benefits and allowances ($)

2

Average superannuation contributions ($)

Average long service leave ($)

Average other long-term benefits ($)

Average termination benefits ($)

3

Average total remuneration ($)

$845,001 - $870,000 2 214,717 - 570,325 66,501 5,105 - - 856,648

Notes:

1. The number of ADF Star ranks listed above is the number of individuals not the number of positions. Staff who were permanently appointed to or acted in a Star rank ADF position for a period longer than 6 months are included in the table.

2. Other Benefits and Allowances includes the value of items such as housing (including overseas), motor vehicle allowances, retention bonuses, cost of living allowances (to support members and their families in remote or overseas locations), and any associated Fringe Benefits Tax payable by Defence. This column includes non-cash benefits.

3. Defence members compulsorily transferred to the Reserves may be eligible for a special benefit payment. The amount of a special benefit payment is based on the member’s period of service and is an amount equal to two

weeks’ pay for every year of service, to a maximum of 48 weeks.

255 APPENDIX B: ADDITIONAL WORKFORCE TABLES

Table B.36: Other highly paid staff—Australian Defence Force remuneration, 2018-19 Remuneration band

Number of highly paid ADF personnel

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits

Total

remuneration

Average base salary ($) Average bonuses ($)

Average other benefits and allowances ($)

1

Average superannuation contributions ($)

Average long service leave ($)

Average other long-term benefits ($)

Average termination benefits ($) Average total

remuneration ($)

$220,001 - $245,000 2,029 126,539 9,562 44,641 46,448 4,071 - 151 231,411

$245,001 - $270,000 1,199 137,389 14,596 49,674 49,442 4,390 - 916 256,406

$270,001 - $295,000 583 143,742 20,602 59,821 51,179 4,726 - 861 280,931

$295,001 - $320,000 329 142,125 34,669 73,002 50,681 5,018 - 1,214 306,709

$320,001 - $345,000 196 135,406 57,945 81,642 49,552 5,324 - 1,687 331,557

$345,001 - $370,000 175 139,451 60,858 93,088 50,151 5,412 - 7,908 356,868

$370,001 - $395,000 107 144,683 60,314 107,381 50,866 5,297 - 13,315 381,855

$395,001 - $420,000 69 152,341 65,599 121,108 51,991 5,497 - 10,250 406,786

$420,001 - $445,000 52 162,802 58,977 136,654 56,585 5,831 - 10,502 431,352

$445,001 - $470,000 36 158,262 35,521 193,858 53,947 5,034 - 9,772 456,393

$470,001 - $495,000 25 166,346 17,405 223,955 56,195 4,805 - 14,440 483,146

$495,001 - $520,000 23 152,227 52,459 237,295 52,623 5,171 - 7,648 507,422

$520,001 - $545,000 9 155,680 35,118 249,653 50,974 5,056 - 38,366 534,846

$545,001 - $570,000 8 176,141 - 317,066 61,186 4,737 - - 559,129

$570,001 - $595,000 4 149,959 33,635 341,911 51,120 4,246 - - 580,870

$595,001 - $620,000 4 176,690 - 365,906 57,527 4,078 - - 604,201

$620,001 - $645,000 2 125,227 - 459,698 44,884 5,165 - - 634,975

$645,001 - $670,000 3 183,996 - 412,041 59,112 4,258 - - 659,407

$670,001 - $695,000 5 165,329 87,338 369,322 54,673 4,532 - - 681,194

$1,095,000 - $1,120,000

1 201,395 - 830,618 62,833 4,525 - - 1,099,372

Note:

1. Other Benefits and Allowances includes the value of items such as housing (including overseas), motor vehicle allowances, retention bonuses, cost of living allowances (to support members and their families in remote or overseas locations), and any associated Fringe Benefits Tax payable by Defence. This column includes non-cash benefits. Housing costs include Service residences, rent allowance and housing provided at overseas posts. For example, Defence provides accommodation for personnel and their families for the duration of their non-operational overseas posting. While personnel and their families benefit from this provision, they do not receive direct remuneration for these overseas housing costs. The value of the overseas housing is determined by the location of posting. The reported value of total remuneration is impacted by the high property costs and consequent costs in many of the overseas posting locations.

256 DEFENCE ANNUAL REPORT 2018-19

Table B.37: Other highly paid staff—Australian Public Service remuneration, 2018-19 Remuneration band

Number of highly paid APS staff

Short-term benefits

Post-employment benefits Other long-term benefits

Termination benefits

Total

remuneration

Average base salary ($) Average bonuses ($)

Average other benefits and allowances ($)

1

Average superannuation contributions ($)

Average long service leave ($)

Average other long-term benefits ($)

Average termination benefits ($) Average total

remuneration ($)

$220,001 - $245,000 58 141,529 1,422 33,477 25,084 3,074 - 25,090 229,678

$245,001 - $270,000 25 158,664 2,531 45,078 29,146 3,360 - 17,279 256,058

$270,001 - $295,000 27 144,116 1,155 80,693 30,051 3,039 - 25,676 284,729

$295,001 - $320,000 22 214,117 1,077 54,793 34,758 4,085 - - 308,831

$320,001 - $345,000 14 196,311 1,587 97,006 31,522 3,647 - - 330,072

$345,001 - $370,000 6 176,607 569 144,212 29,251 3,127 - - 353,766

$370,001 - $395,000 6 107,920 1,045 224,879 19,079 2,457 - 25,619 380,999

$395,001 - $420,000 6 303,724 4,599 56,825 39,015 5,262 - - 409,425

$420,001 - $445,000 2 125,176 1,273 281,011 21,927 2,929 - - 432,315

$445,001 - $470,000 2 122,863 85 299,434 20,853 2,850 - - 446,084

$520,001 - $545,000 2 145,766 774 356,021 26,694 3,227 - - 532,482

$545,001 - $570,000 1 141,283 1,407 397,823 21,822 3,237 - - 565,571

$570,001 - $595,000 1 147,296 1,407 392,386 29,282 3,237 - - 573,608

$595,001 - $620,000 2 151,498 794 427,207 28,104 3,409 - - 611,012

$670,001 - $695,000 1 192,549 1,846 444,587 33,950 4,248 - - 677,180

$795,001 - $820,000 1 148,114 1,407 621,129 22,397 3,235 - - 796,282

Note:

1. Other Benefits and Allowances includes the value of items such as housing (including overseas), motor vehicle allowances, retention bonuses, cost of living allowances (to support members and their families in remote or overseas locations), and any associated Fringe Benefits Tax payable by Defence. This column includes non-cash benefits. Housing costs include Service residences, rent allowance and housing provided at overseas posts. For example, Defence provides accommodation for personnel and their families for the duration of their non-operational overseas posting. While personnel and their families benefit from this provision, they do not receive direct remuneration for these overseas housing costs. The value of the overseas housing is determined by the location of posting. The reported value of total remuneration is impacted by the high property costs and consequent costs in many of the overseas posting locations.

257 APPENDIX C: OTHER MANDATORY INFORMATION

Appendix C: Other mandatory information

Consulting contracts Defence engages consultants where it lacks specialist expertise or when independent research and assessment is required. The process for selecting consultants is consistent with Defence procurement policies and the Commonwealth Procurement Rules.

This annual report contains information about the number of contracts and total contract value of new consultancy contracts let in 2018-19 based on AusTender (Table C.1) and the actual expenditure on contracts for consultancies (Table C.2). Further information on the value of individual contracts and consultancies is available on the AusTender website, www.tenders.gov.au.

In 2018-19, Defence entered into 331 new consultancy contracts, based on information presented on AusTender, involving total contract value of $141.7m and actual expenditure of $51.5 million (including GST) for 2018-19. In addition, 297 existing consultancy contracts were active during the 2018-19 reporting year, with total actual expenditure of $58.1 million (including GST).

Table C.1 shows a summary, sorted by Defence program, of new consultancy contracts entered into during 2018-19 (including GST), based on information presented on AusTender.

Table C.1: New consultancy contracts entered into during 2018-19 (based on AusTender), by program (including GST)

Program Number of new contracts Total contract value ($)

Program 2.1 Strategic Policy and Intelligence 19 20,900,402

Program 2.2 Defence Executive Support 35 9,036,506

Program 2.3 Chief Finance Officer 4 624,289

Program 2.4 Joint Capabilities 24 13,864,403

Program 2.5 Navy Capabilities 30 13,029,577

Program 2.6 Army Capabilities 29 9,923,409

Program 2.7 Air Force Capabilities 24 5,850,813

Program 2.8 Australian Defence Force Headquarters 6 775,670

Program 2.9 Capability Acquisition and Sustainment 61 17,764,225

Program 2.10 Estate and Infrastructure 42 26,393,007

Program 2.11 Chief Information Officer 15 14,457,402

Program 2.12 Defence People 28 8,484,971

Program 2.13 Defence Science and Technology 14 580,033

Total 331 141,684,705

Note: Program 2.3 name changed in the Portfolio Budget Statements 2019-20 from Chief Finance Officer to Defence Finance.

Table C.2 records total expenditure in-year for consulting contracts rather than the full value of the contract.

Table C.2: Total expenditure on consulting contracts, 2016-17 to 2018-19

2016-17 ($m) 2017-18 ($m) 2018-19 ($m)

Defence 244.7 108.0 109.6

Note: Figures are GST inclusive.

258 DEFENCE ANNUAL REPORT 2018-19

Australian National Audit Office access clause The Defence contracting templates include standard clauses providing the Auditor-General access to contractors’ and major subcontractors’ premises, records and accounts. During 2018-19, Defence had 37 contracts that did not include the clause providing access to the Auditor-General (Table C.3).

Table C.3: Contracts that do not include the ANAO access clause, 2018-19

Group and company 2018-19

($)

Purpose Reason for non-

inclusion of ANAO access clause

Army

United States Government 422,308.00 Software support Foreign Military Sale

United States Government 196,485.40 Military training Foreign Military Sale

Total for the Army 618,793

Air Force

United States Government 109,598.89 Software support Foreign Military Sale

United States Government 2,059,875.00 Technical data and support Foreign Military Sale

Total for the Air Force 2,169,474

Strategic Policy and Intelligence Group (SP&IG)

United States Government 316,510.56 Special military equipment Foreign Military Sale

Total for SP&IG 316,511

Navy

United States Government 14,094,400.00 Military training Foreign Military Sale

Total for Navy 14,094,400

Capability Acquisition and Sustainment Group (CASG)

United States Government 2,561,460.00 Aircraft spare and repair parts Foreign Military Sale

United States Government 36,332,000.00 Aircraft spare and repair parts Foreign Military Sale

United States Government 1,493,887.85 Aircraft spare and repair parts Foreign Military Sale

United States Government 3,997,592.97 Communication equipment Foreign Military Sale

United States Government 224,197.29 Communication equipment Foreign Military Sale

United States Government 324,624.14 Communication equipment Foreign Military Sale

United States Government 249,485.18 Communication equipment Foreign Military Sale

United States Government 1,403,453.30 Communication equipment Foreign Military Sale

United States Government 835,043.83 Explosive ordnance Foreign Military Sale

United States Government 1,139,816.74 Explosive ordnance Foreign Military Sale

United States Government 142,415,404.12 Light weapons and ammunition Foreign Military Sale

United States Government 1,807,697.95 Light weapons and ammunition Foreign Military Sale

United States Government 69,153,374.09 Light weapons and ammunition Foreign Military Sale

United States Government 4,049,220.82 Light weapons and ammunition Foreign Military Sale

United States Government 6,554,079.67 Light weapons and ammunition Foreign Military Sale

United States Government 20,296,921.80 Light weapons and ammunition Foreign Military Sale

United States Government 104,455.89 Light weapons and ammunition Foreign Military Sale

United States Government 2,150,470.68 Software support Foreign Military Sale

United States Government 5,419,966.55 Special military equipment Foreign Military Sale

United States Government 14,124,328.72 Special military equipment Foreign Military Sale

United States Government 15,265,358.10 Special military equipment Foreign Military Sale

259 APPENDIX C: OTHER MANDATORY INFORMATION

Group and company 2018-19

($)

Purpose Reason for non-

inclusion of ANAO access clause

United States Government 10,444,539.82 Special military equipment Foreign Military Sale

United States Government 6,359,570.37 Special military equipment Foreign Military Sale

United States Government 5,238,571.00 Special military equipment Foreign Military Sale

United States Government 17,556,301.07 Special military equipment Foreign Military Sale

United States Government 5,488,994.83 Special military equipment Foreign Military Sale

United States Government 879,910.82 Special military equipment Foreign Military Sale

United States Government 6,156,333.54 Technical data and support Foreign Military Sale

United States Government 216,951.00 Technical data and support Foreign Military Sale

United States Government 586,004.88 Technical data and support Foreign Military Sale

United States Government 683,446.80 Technical data and support Foreign Military Sale

Total for CASG 383,513,464

Total Groups and Services 400,712,642

Notes:

All figures are GST inclusive.

Defence uses the United States Department of Defense’s Foreign Military Sales program, which facilitates sales of US arms, defence equipment, defence services and military training to foreign governments. The standard terms and conditions of Foreign Military Sales contracts do not contain ANAO access provisions.

Omissions and errors The Defence Annual Report 2017-18 contained the following errors:

Table 3.1: Unit availability days, HydroScheme products and flying hours (page 41)

The 2017-18 revised estimate of F/A-18F Super Hornet flying hours was incorrectly reported as 8,094 hours; this should read 4,000 hours. This error was the result of incorrect information being used in the preparation of the 2017-18 PAES. The variation between the estimate and actual hours flown was due to changes in demand to support operations.

Figure 7.4: Unacceptable behaviour complaints reported as received and finalised, 2013-14 to 2017-18 (page 114)

The Unacceptable Behaviour data for 2014-15 to 2017-18 in previous Defence Annual Reports does not match the data provided in 2018-19. In previous years the data was sourced from the central Complaints Management, Tracking and Reporting System (ComTrack). Defence has now consolidated all reports included in ComTrack, and other systems comprising the Army Incident Management System (AIMS) and the Defence Policing and Security Management System (DPSMS). Duplicate entries have been removed.

260 DEFENCE ANNUAL REPORT 2018-19

Appendix D: Supplementary online material The follow supplementary performance information is available on the Defence website.

Table D.1: Additional online information

Report Website

Report of the Inspector-General ADF www.defence.gov.au/reports.asp

Women in ADF Report www.defence.gov.au/annualreports/18-19/downloads/

womenintheadfreport2018-19.pdf

SeMPRO Report www.defence.gov.au/annualreports/18-19/downloads/sempro-

report-1819.pdf

Acquisition, sustainment, facilities and infrastructure information

Top 30 sustainment products by expenditure 2018-19 Web table D.1

Top 30 acquisition projects by expenditure 2018-19 Web table D.2

Top 30 acquisition projects by expenditure (variations), 2018-19 Web table D.3

Major acquisition projects closed in 2018-19 Web table D.4

New major acquisition projects approved by Government 2018-19 Web table D.5

Performance of major capital facilities projects 2018-19 Web table D.6

Major Defence establishments and bases Web table D.7

Status of major capital facilities projects considered by the Parliamentary Standing Committee on Public Works Web table D.8

Approved facilities and infrastructure projects by state and federal electorate (financial and non-financial input) Web table D.9

Table D.2: Reference websites and supporting documentation

Reference Website

2018-19 Defence Corporate Plan www.defence.gov.au/publications/corporateplan/

Transparency portal www.transparency.gov.au

Defence Annual Reports www.defence.gov.au/annualreports

GrantConnect www.grants.gov.au

AusTender www.tenders.gov.au

Australian Hydrographic Office www.hydro.gov.au

Australian National Audit Office www.anao.gov.au

Defence’s Information Publication Scheme www.defence.gov.au/ips

Indigenous procurement https://www.niaa.gov.au/indigenous-affairs/economic-

development/indigenous-procurement-policy-ipp

261 APPENDIX E: LIST OF REQUIREMENTS

Appendix E: List of requirements PGPA Rule reference Part of report Description Requirement

17AD(g) Letter of transmittal

17AI Page iv A copy of the letter of transmittal signed and dated by accountable

authority on date final text approved, with statement that the report has been prepared in accordance with section 46 of the Act and any enabling legislation that specifies additional requirements in relation to the annual report.

Mandatory

17AD(h) Aids to access

17AJ(a) Page v Table of contents. Mandatory

17AJ(b) Pages 269-274 Alphabetical index. Mandatory

17AJ(c) Page 265 Glossary of abbreviations and acronyms. Mandatory

17AJ(d) Page 261 List of requirements. Mandatory

17AJ(e) Page 272 Details of contact officer. Mandatory

17AJ(f) Page 272 Entity’s website address. Mandatory

17AJ(g) Page 272 Electronic address of report. Mandatory

17AD(a) Review by accountable authority

17AD(a) Page 2 A review by the accountable authority of the entity. Mandatory

17AD(b) Overview of the entity

17AE(1)(a)(i) Page 10 A description of the role and functions of the entity. Mandatory

17AE(1)(a)(ii) Page 14 A description of the organisational structure of the entity. Mandatory

17AE(1)(a)(iii) Page 13 A description of the outcomes and programmes administered by the entity. Mandatory

17AE(1)(a)(iv) Page 10 A description of the purposes of the entity as included in corporate plan. Mandatory

17AE(1)(aa)(i) Page 249 Name of the accountable authority or each member of the accountable authority. Mandatory

17AE(1)(aa)(ii) Page 249 Position title of the accountable authority or each member of the accountable authority. Mandatory

17AE(1)(aa)(iii) Page 249 Period as the accountable authority or member of the accountable authority within the reporting period. Mandatory

17AE(1)(b) Page 11 An outline of the structure of the portfolio of the entity. Portfolio

departments mandatory

17AE(2) N/A Where the outcomes and programs administered by the entity differ

from any Portfolio Budget Statement, Portfolio Additional Estimates Statement or other portfolio estimates statement that was prepared for the entity for the period, include details of variation and reasons for change.

If applicable, mandatory

17AD(c) Report on the performance of the entity

Annual performance statements

17AD(c)(i); 16F Pages 18-52 Annual performance statement in accordance with paragraph 39(1)(b) of the Act and section 16F of the Rule. Mandatory

17AD(c)(ii) Report on financial performance

17AF(1)(a) Pages 54-65 A discussion and analysis of the entity’s financial performance. Mandatory

17AF(1)(b) Page 54 A table summarising the total resources and total payments of the entity. Mandatory

262 DEFENCE ANNUAL REPORT 2018-19

PGPA Rule reference Part of report Description Requirement

17AF(2) N/A If there may be significant changes in the financial results during or

after the previous or current reporting period, information on those changes, including: the cause of any operating loss of the entity; how the entity has responded to the loss and the actions that have been taken in relation to the loss; and any matter or circumstances that it can reasonably be anticipated will have a significant impact on the entity’s future operation or financial results.

If applicable, mandatory

17AD(d) Management and accountability

Corporate governance

17AG(2)(a) Page iv Information on compliance with section 10 (fraud systems). Mandatory

17AG(2)(b)(i) Page iv A certification by accountable authority that fraud risk assessments and fraud control plans have been prepared. Mandatory

17AG(2)(b)(ii) Page iv A certification by accountable authority that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place.

Mandatory

17AG(2)(b)(iii) Page iv A certification by accountable authority that all reasonable measures have been taken to deal appropriately with fraud relating to the entity. Mandatory

17AG(2)(c) Pages 69-72 An outline of structures and processes in place for the entity to implement principles and objectives of corporate governance. Mandatory

17AG(2)(d) - (e) Page 72 A statement of significant issues reported to Minister under paragraph 19(1)(e) of the Act that relates to non-compliance with Finance law and action taken to remedy non-compliance.

If applicable, mandatory

External scrutiny

17AG(3) Pages 74-79 Information on the most significant developments in external scrutiny and the entity’s response to the scrutiny. Mandatory

17AG(3)(a) Page 78 Information on judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner that may have a significant effect on the operations of the entity.

If applicable, mandatory

17AG(3)(b) Page 78 Information on any reports on operations of the entity by the Auditor-General (other than report under section 43 of the Act), a Parliamentary Committee, or the Commonwealth Ombudsman.

If applicable, mandatory

17AG(3)(c) Page 79 Information on any capability reviews on the entity that were released during the period. If applicable, mandatory

Management of human resources

17AG(4)(a) Pages 84-85 An assessment of the entity’s effectiveness in managing and developing employees to achieve entity objectives. Mandatory

17AG(4)(aa) Pages 88-98, 229-245 Statistics on the entity’s employees on an ongoing and non ongoing basis, including the following:

(a) statistics on full time employees;

(b) statistics on part time employees;

(c) statistics on gender

(d) statistics on staff location.

Mandatory

17AG(4)(b) Pages 88-98, 115-116, 229-246

Statistics on the entity’s APS employees on an ongoing and non-ongoing basis; including the following:

• Statistics on staffing classification level;

• Statistics on full-time employees;

• Statistics on part-time employees;

• Statistics on gender;

• Statistics on staff location;

• Statistics on employees who identify as Indigenous.

Mandatory

263 APPENDIX E: LIST OF REQUIREMENTS

PGPA Rule reference Part of report Description Requirement

17AG(4)(c) Pages 102-103, 249-256 Information on any enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law

contracts and determinations under subsection 24(1) of the Public Service Act 1999.

Mandatory

17AG(4)(c)(i) Page 103 Information on the number of SES and non SES employees covered by agreements etc identified in paragraph 17AG(4)(c). Mandatory

17AG(4)(c)(ii) Page 103 The salary ranges available for APS employees by classification level. Mandatory

17AG(4)(c)(iii) Page 103 A description of non-salary benefits provided to employees. Mandatory

17AG(4)(d)(i) Page 107 Information on the number of employees at each classification level who received performance pay. If applicable, mandatory

17AG(4)(d)(ii) Page 107 Information on aggregate amounts of performance pay at each classification level. If applicable, mandatory

17AG(4)(d)(iii) Page 107 Information on the average amount of performance payment, and range of such payments, at each classification level. If applicable, mandatory

17AG(4)(d)(iv) Page 107 Information on aggregate amount of performance payments. If applicable, mandatory

Assets management

17AG(5) Pages 126-131 An assessment of effectiveness of assets management where asset management is a significant part of the entity’s activities. If applicable, mandatory

Purchasing

17AG(6) Page 127 An assessment of entity performance against the Commonwealth Procurement Rules. Mandatory

Consultants

17AG(7)(a) Page 257 A summary statement detailing the number of new contracts engaging consultants entered into during the period; the total actual expenditure on all new consultancy contracts entered into during the period (inclusive of GST); the number of ongoing consultancy contracts that were entered into during a previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST).

Mandatory

17AG(7)(b) Page 257 A statement that “During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period, involving total actual expenditure of $[specified million]”.

Mandatory

17AG(7)(c) Page 257 A summary of the policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged.

Mandatory

17AG(7)(d) Page 257 A statement that “Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.”

Mandatory

Australian National Audit Office access clauses

17AG(8) Pages 258-259 If an entity entered into a contract with a value of more than $100 000 (inclusive of GST) and the contract did not provide the Auditor-General with access to the contractor’s premises, the report must include the name of the contractor, purpose and value of the contract, and the reason why a clause allowing access was not included in the contract.

If applicable, mandatory

Exempt contracts

17AG(9) Page 79 If an entity entered into a contract or there is a standing offer with a value greater than $10 000 (inclusive of GST) which has been exempted from being published in AusTender because it would disclose exempt matters under the FOI Act, the annual report must include a statement that the contract or standing offer has been exempted, and the value of the contract or standing offer, to the extent that doing so does not disclose the exempt matters.

If applicable, mandatory

264 DEFENCE ANNUAL REPORT 2018-19

PGPA Rule reference Part of report Description Requirement

Small business

17AG(10)(a) Page 127 A statement that “[Name of entity] supports small business participation in the Commonwealth Government procurement market. Small and Medium Enterprises (SME) and Small Enterprise participation statistics are available on the Department of Finance’s website.”

Mandatory

17AG(10)(b) Page 127 An outline of the ways in which the procurement practices of the entity support small and medium enterprises. Mandatory

17AG(10)(c) Page 127 If the entity is considered by the Department administered by the Finance Minister as material in nature—a statement that “[Name of entity] recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.”

If applicable, mandatory

Financial statements

17AD(e) Pages 147-228 Inclusion of the annual financial statements in accordance with subsection 43(4) of the Act. Mandatory

Executive remuneration

17AD(da) Pages 103-105, 250-255 Information about executive remuneration in accordance with Subdivision C of Division 3A of Part 2-3 of the Rule.

Mandatory

17AD(f) Other mandatory information

17AH(1)(a)(i) Pages 62-64 If the entity conducted advertising campaigns, a statement that “During [reporting period], the [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.”

If applicable, mandatory

17AH(1)(a)(ii) N/A If the entity did not conduct advertising campaigns, a statement to that effect. If applicable, mandatory

17AH(1)(b) Page 62 A statement that “Information on grants awarded by [name of entity] during [reporting period] is available at [address of entity’s website].” If applicable, mandatory

17AH(1)(c) Page 118 Outline of mechanisms of disability reporting, including reference to website for further information. Mandatory

17AH(1)(d) Page 79 Website reference to where the entity’s Information Publication Scheme statement pursuant to Part II of FOI Act can be found. Mandatory

17AH(1)(e) Page 259 Correction of material errors in previous annual report. If applicable,

mandatory

17AH(2) Pages 63-65,

72-73, 98-100, 110-113, 134-138

Information required by other legislation. Mandatory

265 APPENDIX E: LIST OF REQUIREMENTS

Abbreviations and acronyms

ADF Australian Defence Force

ANAO Australian National Audit Office

APS Australian Public Service

ASEAN Association of Southeast Asian Nations

CASG Capability, Acquisition and Sustainment Group

CDF Chief of the Defence Force

DST Defence Science and Technology

EL Executive Level

GST goods and services tax

ICT information and communications technology

IGADF Inspector-General of the Australian Defence Force

HMAS Her Majesty’s Australian Ship

MP Member of Parliament

PAES Portfolio Additional Estimates Statements

PBS Portfolio Budget Statements

PFAS per- and poly-fluoroalkyl substances

PGPA Act Public Governance, Performance and Accountability Act 2013

PGPA Rule Public Governance, Performance and Accountability Rule 2014

RAN Royal Australian Navy

SES Senior Executive Service

266 DEFENCE ANNUAL REPORT 2018-19

List of figures and tables

Figures Figure 1.1: ADF operations during 2018-19 7

Figure 2.1: Defence portfolio structure as at 30 June 2019 11

Figure 2.2: Defence’s outcomes and programs, 2018-19 13

Figure 2.3: Defence organisational structure as at 30 June 2019 14

Figure 2.4: ADF and APS comparative funded strength for 2017-18 and 2018-19 16

Figure 3.1: Defence enterprise performance management 19

Figure 3.2: Defence enterprise planning view 19

Figure 5.1: Defence enterprise committee structure and roles, indicating incumbent Chairs as at 30 June 2019 69

Figure 6.1: Indigenous participation 116

Figure 6.2: APS review of actions applications, 2013-14 to 2018-19 119

Figure 6.3: Unacceptable behaviour complaints reported as received, finalised and having occurred, 2014-15 to 2018-19 120

Figure 6.4: Incidents of unacceptable behaviour are managed well in my workplace 121

Figure 6.5: Defence has a culture that supports individuals who report fraud, corruption or unethical behaviour 121

Tables Table 3.1: Unit availability days, flying hours and HydroScheme products 36

Table 4.1: Defence resource statement, 2018-19 54

Table 4.2: Total cost of Defence outcomes and programs on an accrual basis, 2018-19 55

Table 4.3: Overall cost to Government of Defence outcomes (departmental and administered), 2018-19 56

Table 4.4: Total cost of Defence Outcome 1 57

Table 4.5: Total budgeted resources available for Outcome 2 57

Table 4.6: Net additional cost of operations from 1999-2000 to 2022-23 61

Table 4.7: Net additional cost of operations, 2018-19 61

Table 4.8: Total advertising and market research, by type, 2018-19 62

Table 4.9: Total advertising and market research expenditure, by Service and Group, 2017-18 and 2018-19 62

Table 4.10: Individual payments of more than $13,800 to advertising and market research agencies, by Service and Group, 2018-19 63

Table 4.11: Estimated expenditure on internal and external legal services, 2017-18 and 2018-19 64

Table 4.12: Estimated cost breakdown of internal legal expenses, 2017-18 and 2018-19 64

Table 4.13: Estimated cost breakdown of external legal expenses, 2017-18 and 2018-19 65

Table 4.14: Accounts paid by due date, 2017-18 to 2018-19 65

Table 5.1: Determined fraud losses and cash recoveries, 2014-15 to 2018-19 72

Table 5.2: Defence’s involvement with parliamentary committees, 2018-19 75

Table 5.3: Defence major projects that achieved parliamentary approval through the Parliamentary Standing Committee on Public Works, 2018-19 77

Table 5.4: Defence medium works notified to the Parliamentary Standing Committee on Public Works, 2018-19 77

Table 5.5: Auditor-General’s performance audit reports on Defence, 2018-19 78

267 LIST OF FIGURES AND TABLES

Table 5.6: Auditor-General’s priority assurance review involving Defence, 2018-19 78

Table 6.1: Total Workforce Model continuum 88

Table 6.2: Australian Defence Force staffing figures, 2017-18 and 2018-19 88

Table 6.3: Australian Defence Force permanent force (Service Categories 7 and 6) and Reserves undertaking continuous full-time service (Service Option C), average funded strength 89

Table 6.4: ADF permanent force (Service Categories 7 and 6), 12-month rolling separation rates as at 30 June 2018 and 30 June 2019 89

Table 6.5: ADF permanent force (Service Categories 7 and 6) separations, 2017-18 and 2018-19. 90

Table 6.6: ADF Reserve paid strength (Service Categories 5, 4 and 3), 2017-18 and 2018-19 91

Table 6.7: Australian Public Service staffing figures, 2017-18 and 2018-19 91

Table 6.8: APS workforce, average full-time equivalent, 2017-18 and 2018-19 92

Table 6.9: APS workforce, end-of-year equivalent, 2017-18 and 2018-19 92

Table 6.10: APS separations, 2017-18 and 2018-19 92

Table 6.11: Defence workforce headcount as at 30 June 2018 and 30 June 2019 93

Table 6.12: Defence workforce by employment location as at 30 June 2019 93

Table 6.13: Star-ranked officers as at 30 June 2019 94

Table 6.14: APS Senior Executive Service employees as at 30 June 2019 95

Table 6.15: APS Executive Level employees and below, by gender and classification, as at 30 June 2019 95

Table 6.16: APS employees by gender as at 30 June 2018 and 30 June 2019 96

Table 6.17: ADF permanent (Service Categories 7 and 6), Gap Year (Service Option G) and Reserve forces (Service Categories 5, 4 and 3) and APS by gender as at 30 June 2018 and 30 June 2019 96

Table 6.18: ADF Gap Year (Service Option G) participants as at 30 June 2019 98

Table 6.19: Permanent Australian Defence Force salary ranges as at 30 June 2019 102

Table 6.20: Australian Public Service salary ranges as at 30 June 2019 103

Table 6.21: Employment Arrangements of SES and Non-SES employees 103

Table 6.22: Key management personnel, 2018-19 104

Table 6.23: Key management personnel remuneration, 2018-19 105

Table 6.24: APS employee performance bonus payments 2018-19 107

Table 6.25: Number of Comcare work health and safety notices, 2016-17 to 2018-19 112

Table 6.26: Number of work health and safety incidents and involved persons, 2016-17 to 2018-19 113

Table 6.27: Indigenous participation 115

Table 6.28: Reported Defence sexual assault data per year 122

Table 6.29: Sexual Misconduct Prevention and Response Office new incident management advice clients, 2013-14 to 2018-19 124

Table 7.1: Projects of Concern as at 30 June 2019 131

Table B.1: All ongoing employees, 2018-19 229

Table B.2: All ongoing employees, 2017-18 229

Table B.3: All non-ongoing employees, 2018-19 230

Table B.4: All non-ongoing employees, 2017-18 230

Table B.5: Australian Public Service Act ongoing employees, 2018-19 231

Table B.6: Australian Public Service Act ongoing employees, 2017-18 231

Table B.7: Australian Public Service Act non-ongoing employees, 2018-19 232

Table B.8: Australian Public Service Act non-ongoing employees, 2017-18 232

Table B.9: Australian Public Service Act employees by full-time and part-time status, 2018-19 233

268 DEFENCE ANNUAL REPORT 2018-19

Table B.10: Australian Public Service Act employees by full-time and part-time status, 2017-18 233

Table B.11: Permanent ADF members, 2018-19 234

Table B.12: Permanent ADF members, 2017-18 235

Table B.13: Active Reserve members current report period (2018-19) 236

Table B.14: Active Reserve members, 2017-18 237

Table B.15: ADF permanent members, 2018-19 238

Table B.16 ADF permanent members, 2017-18 239

Table B.17: ADF active Reserve members, 2018-19 240

Table B.18: ADF active Reserve members, 2017-18 241

Table B.19: ADF permanent and Reserve members, 2018-19 242

Table B.20: ADF permanent and Reserve members, 2017-18 243

Table B.21: Australian Public Service Act employment type by location, 2018-19 244

Table B.22: Australian Public Service Act employment type by location, 2017-18 244

Table B.23: ADF Permanent and active Reserve members by Location, 2018-19 245

Table B.24: ADF permanent and active Reserve members by Location, 2017-18 245

Table B.25: Australian Public Service Act indigenous employment, 2018-19 246

Table B.26: Australian Public Service Act indigenous employment, 2017-18 246

Table B.27: ADF indigenous members, 2018-19 246

Table B.28: ADF indigenous members, 2017-18 246

Table B.29: Australian Public Service Act employment salary ranges by classification level, 2018-19 247

Table B.30: Permanent Australian Defence Force salary ranges by rank, 2018-19 248

Table B.31: Australian Public Service Act employment performance pay by classification level, 2018-19 249

Table B.32: Details of accountable authority during the reporting period, 2018-19 249

Table B.34: Senior executives Australian Public Service (APS) remuneration 2018-19 252

Table B.35: Star rank Australian Defence Force (ADF) personnel remuneration 2018-19 253

Table B.37: Other highly paid staff—Australian Public Service remuneration 2018-19 256

Table C.1: New consultancy contracts entered into during 2018-19 (based on AusTender), by program (including GST) 257

Table C.2: Total expenditure on consulting contracts, 2016-17 to 2018-19 257

Table C.3: Contracts that do not include the ANAO access clause, 2018-19 258

Table D.1: Additional online information 260

Table D.2: Reference websites and supporting documentation 260

269 INDEX

Index A abbreviations and acronyms, 265 access clauses, ANAO, 258-259 Accessibility Hub, 117 Accountable Authority, 249 acquisition projects, 34 adaptive sports, 7, 60 advertising and market research, 62 advice to Government, 28, 29, 44 advisory committees, 69 aerial surveillance, 3, 12 Afghanistan National Defense and Security Forces, 6,

21, 139

air and sea lift, 131 Air Force, 89-90 Cadets, 100 cultural change program, 85 disaster relief assistance, 80 Indigenous recruitment, 115 preparedness, 32 Return to Community initiative, 116 annual performance statements, 18-52 annual report contact officer, 272 Annual Strategic Review, 28 APS Candidate Portal, 101 APS employee census, 2 APS Medical Care Pilot, 112 APS Performance Management Framework, 43, 85 APS Recruiting Strategy, 101 APS Values and Code of Conduct, ii armoured fighting vehicles acquisition project, 3 Army Aboriginal Community Assistance Program, 116 Cadets, 100 cultural change program, 43, 85 disaster relief assistance, 80 Indigenous skills development, 115 preparedness, 32 separations, 89-90 Army Aboriginal Community Assistance Program, 6 Asia-Pacific Economic Cooperation forum, Papua New

Guinea, 5 asset management, 33-34, 126-132 Association of Southeast Asian Nations scholarship,

85

audit external, 71, 78 internal, 71

work health and safety, 112-113 Auditor-General reports, 78 AusTender, 79 Australia-Singapore Military Training Initiative, 33

Australian Command and Staff Course, 85 Australian Defence College, 32, 106 Australian Defence Electronic Learning Environment, 106

Australian Defence Force (ADF) ADF Gap Year program, 97-98 Cadets, 99-100 education and training, 106 employment locations, 93 enlistments and separations, 89-90 gender, 96-97 gender of members, 96-97 health and wellbeing services, 108-110 Indigenous members, 3, 115-117, 246 operations 2018-19, 7 recruitment, 82, 86-87, 100-101 remuneration and benefits, 101-102, 105, 248 Reserves, 90-91, 98-99, 236-237, 240-243 staffing, 88-89 support services, 107-108 women in, 114 workforce locations, 245 workforce statistics, 234-243 Australian Defence Force Academy, 84 Australian Defence Force Member and Family

Transition Seminars, 50 Australian Federal Police, 21 Australian Geospatial-Intelligence Organisation, 33 Australian Human Rights Commission, 85 Australian Hydrographic Office, 66 Australian Maritime Safety Authority, 66 Australian National Audit Office (ANAO), 70, 258-259 Australian Public Service Commission, 79 Australian Public Service workforce gender of employees, 96 health and wellbeing services, 108-110 Indigenous members, 3, 115-117, 246 locations, 244 remuneration and benefits, 102-103, 105, 247 Senior Executive Service and Executive

employees, 95 statistics, 91-92, 231-233 support services, 107-108 women in, 114 Australian Signals Directorate, 11 Australian War College, 106 awards see honours and awards

B base locations, iii behavioural standards, 2, 120-124 beyondblue, 49, 111

270 DEFENCE ANNUAL REPORT 2018-19

Bi-annual Integrated Investment Program Update, 30 biodiversity offset, Western Sydney Airport project, 136 Black Hornets, 6 Blackrock Peacekeeping and Humanitarian Assistance

and Disaster Relief Camp, Fiji, 20, 24 Bold Quest, 31

C Cadets, ADF, 99-100 Campbell, Angus J (Chief of the Defence Force) overview 2018-19, 5-7 capability investment and planning, 2-4, 6, 12, 26,

29-31, 130-131 Capability Life Cycle, 71 capital investment see capability investment and

planning Career Transition Assistance Scheme, 50 Chief of the Defence Force see Campbell, Angus J

(Chief of the Defence Force) Chief of the Defence Force fellowships, 85 Chief of the Defence Force Preparedness Directive, 32 childcare, 84, 108 climate risk assessment, 137 Closing the Gap strategy, 117 Coexistence in the Woomera Prohibited Area Review,

28, 29

Comcare, 112 committees, senior management, 69 Commonwealth Ombudsman, 78 Community Support Coordinator Program, 108 complaint handling and resolution, 119 consultancies, 257 contestability function, 28-29, 30, 40, 71 corporate governance, 68-72 Corporate Plan 2018-19, ii, 10, 18, 19, 42 corrections to previous annual reports, 259 cost of operations, 61 counter-terrorism, 20-21, 23 cultural reform, 2-3, 43, 83, 85 see also First

Principles Review; Pathway to Change: Evolving Defence Culture 2017-22 culturally and linguistically diverse backgrounds, people with, 118 Customer Satisfaction Survey, 42 Customs Act 1901 statement, 72

D Da’esh, 5, 21 Dandelion Program, 117 deaths of ADF members, 73 Defence Act 1903, 10 Defence Administrative Assistance Program, 117 Defence and Strategic Studies Course, 84

Defence Assistance to the Civil Community program, 23 Defence Assisted Study Scheme, 84 Defence Childcare Program, 108 Defence Community Organisation, 26 Defence Cooperation Program, 20, 24, 26, 47 Defence Engineering Governance and Integrity

System, 33 Defence Environmental Policy and Strategy 2016- 2036, 134 Defence Estate Asset Management Framework, 33 Defence Estate Strategy 2016-36, 33 defence estate, management of, 33-34 Defence Force Discipline Act 1982, ii, 72 Defence Force Ombudsman, 78 Defence Force Retirement Benefits, 51 Defence Force Retirement Death Benefit, 51 Defence Force Workplace Remuneration Arrangement,

105

Defence Global Competiveness Grants program, 26, 45 Defence Graduate Program, 101 Defence Home Ownership Assistance Scheme, 51-52 Defence Housing Australia, 11, 52 Defence Industry Skilling and Science, Technology,

Engineering and Mathematics Strategy, 2, 45, 83 Defence Innovation Hub, 3, 26, 45, 128-129, 131 Defence Intelligence Organisation, 33 Defence Leading for Reform, 84 Defence Planning Guidance review, 26, 28, 29 Defence Policy for Industry Participation, 45 Defence Preparedness Assessment Summary, 26,

31-32

Defence School Mentor Program, 108 Defence Science Policy Fellowship, 85 Defence Single Information Environment, 126 Defence Strategic Workforce Plan 2016-2026, 39,

82, 87

Defence White Paper 2016, ii, 2, 5, 6, 10, 29 Defence Work Health and Safety Strategy, 110 Department of Foreign Affairs and Trade, 21 Department of Home Affairs, 21, 23 Department of the Prime Minister and Cabinet, 21 Department of Veterans’ Affairs, 11, 82 diarchy, management of Defence as, 14 disability reporting, 119 disability, personnel with, 118-119 disaster relief assistance, 80 diversity, workplace, 85, 114 drug precursors see Operation MANITOU

E ecologically sustainable development, 136-137 Emergency Management Australia, 21

271 INDEX

emergency support see humanitarian and disaster relief Emerging Disruptive Technology Assessment Symposium, 129 emerging hazards scans, 111 Emerging Leaders Forums, Navy, 86 Employee Assistance Program, 111 employees see workforce employment assistance programs, 50 energy consumption, 137 Engineering is Elementary program, 101 enlistments and separations, 89-90 Enterprise Committee Governance Framework, 42 enterprise management committees, 69 enterprise performance management, 18-19, 44, 70 Enterprise Resource Planning program, 41 Environment Protection and Biodiversity Conservation

Act 1999 referrals, 135 environmental performance, 134-138 environmental remediation programs, 136 Executive Level employees, 95 exempt contracts, 79 Exercises AUSINDEX, 74 Autonomous Warrior, 6 Balikatan, Philippines, 5 Bersama Shield, 74 Kakadu, 5, 74 Kummundo, 6 La Perouse, 25, 74 Pacific Vanguard, 25, 74 Rajawali Ausindo, Indonesia, 5 RIMPAC, 74 TALISMAN SABRE 2019, 31, 136 expenses for outcomes, 59

F families, ADF, 7, 50, 82 childcare, 84, 108 counselling, 107-108 family and domestic violence, 84, 108 helpline, 26

partner employment assistance, 108 support services for, 26, 107-108, 135 family and domestic violence training program, 84, 108 Family Support Funding Program, 26, 108 fellowships, 85 Fiji, 20, 24 financial law, compliance with, 72 financial statements, 44, 142-228 financial summary, 16, 54 firefighting, 23 First Principles Review, 2, 10, 26, 40, 41, 82, 84-85 First Principles Review Oversight Board, 67

Five Eyes partners, information sharing with, 6 flexible work arrangements, 87 Flexible Work Awareness Campaign, 85 floods, North Queensland, 20, 23, 80 flying hours targets, 36-38 Force Generation System, Army, 32 Force Integration Management System, 30 Force Structure Plan 2019, 30 foreign investment review, 28, 29 Forge platform, 106 fraud and integrity, 71-72 freedom of information, 79 fuel supply chain reform, 6, 137-138 funding, ii Future Submarine Program Strategic Partnering

Agreement, 3

G Gap Year program, ADF, 97-98 Good Soldiering program, Army, 43, 85 Graduate Program, 101 grants, 26, 45, 62 Growlers, EA-18G, 3 Guardian Class Patrol Boats, 3, 20, 25

H health and wellbeing services, 7, 26, 49-50, 108-110 helicopter structural fatigue testing, 48 heritage values management, 136 Highly Paid Staff, 255-256 HMAS Cerberus redevelopment project, 129 home loans, 52 home ownership scheme, 51 honours and awards, 3, 113 Human Biotechnologies Military Implications

Symposium, 30 humanitarian and disaster relief, 5, 20, 23 hydrographic capacity building, 66 HydroScheme targets, 36-38

I improvised explosive devices, 139 Inclusive Employment Program, 117 Indigenous ADF Pre-Recruit Program, 115-116 Indigenous Development Programs, 115 Indigenous personnel, 3, 86, 87, 115-117, 246 Indigenous procurement, 127 Indigenous Recruitment Pathway, Air Force, 115 Indo-Pacific Endeavour, 5, 20, 21, 22, 25, 29 Indo-Pacific regional engagement, 3, 5, 20-22, 24-25 Indonesia, 5, 21 Industry Capability Plans, 33 industry engagement, 26, 45, 83, 128-129 information and communications technology, 29, 39,

42, 126

272 DEFENCE ANNUAL REPORT 2018-19

Information Publication Scheme, 79 information sessions, 83 Inspector-General of the Australian Defence Force, 73 Institute for Strategic Studies Asia Security Summit,

3, 5

Integrated Investment Program, 26, 30, 33 Integrated Soldier System, 6 intelligence capability, 3, 33, 130 Internal Audit Work Program, 71 international engagement, 47 investigations, fraud, 72 Invictus Games 2018, 7, 60 Iraqi Army, assistance to, 5, 21

J Job Families, 87 Job Search Preparation program, 50 Joint Committee of Public Accounts and Audit, 34, 70 Joint Heads of Pacific Security Forces, 24 joint operations, 31 Joint Strike Fighters, F-35, 3 Joint Task Force 637, 5, 24 judicial and administrative tribunal decisions, 78

K key management personnel, 105, 250-251 Korean Comprehensive Military Agreement, 6

L land and water management, 134 land combat and amphibious warfare, 130 law of armed conflict breaches, 73 leadership behaviours, 2, 43, 84 leadership development, 43, 84, 106 legal expenses, 64-65 legislative framework, 10 LGBTI personnel, 118 Local Industry Capability Plans, 128

M Major Projects Report, 34, 70 Maritime Border Command, 23 maritime boundary, Australian, 20, 23 maritime patrol and surveillance, 12, 20-21, 23 Member and Family Transition Seminars, 109 Mental Health and Wellbeing Strategy, 110-111 mental health services and initiatives, 7, 49, 84, 109 Mental Health Speakers Series, 111 Middle East Region Communications and Information

Systems, 39 military equipment, sustainment of, 35 military justice system audits, 73 Military Police professional standards breaches, 73 Military Superannuation Benefits Scheme, 51

Minister for Defence, ii, 10 mission, ii Moriarty, Greg (Secretary) overview 2018-19, 2-4

N national interests, defence of (Purpose 1) analysis, 20-21 results 2018-19, 21-25 National PFAS Investigation and Management

Program, 138 National Submarine Tour and Competition, 86 Naval Shipbuilding Plan, 3, 83, 132 Navy Cadets, 100 cultural reform program, 43, 85 Indigenous skills development, 115 leadership development, 86 maritime patrol and surveillance, 12, 20-21, 23 preparedness, 32 recruitment activities, 101 regional activities, 25 separations, 89-90 submarines, 74 workforce expansion and retention strategies, 86 Navy Sea Training Group, 25 New Horizon program, Air Force, 43, 85 NewAccess Defence, 49, 111, 112 Next Generation Navy, 43, 85 Next Generation Technologies Fund, 3, 26, 45, 46,

129

North Atlantic Treaty Organization (NATO), 21 North Korea, 6, 12, 20-21, 22 notifiable incidents, 113

O Ombudsman reports, 78 omissions and errors, annual reporting, 259 One Defence approach, 2, 10, 12, 26 One Defence Leadership Behaviours, 43, 82, 84 online information, iii, 10, 260 Open Arms—Veterans and Families Counselling, 49 Operational Generation System, Army, 32 Operations APEC ASSIST, 12, 21, 22 ARGOS, 12, 20-21, 22 AUGURY—PHILIPPINES, 21, 22 GATEWAY, 12, 21 HIGHROAD, 21, 22 LINESMAN, 22 MANITOU, 6, 21, 22 OKRA, 21, 22 RENDER SAFE 2019, 24 RESOLUTE, 12

273 INDEX

SOLANIA, 24 SOVEREIGN BORDERS, 22 STEADFAST, 21, 22 operations 2018-19, 7 organisational capability reviews, 79 organisational reform, 2-3, 41-42 see also First

Principles Review organisational structure, 14 Other Administered transactions, 52 outcomes, 13 overview, ii-iii, 10-16

P Pacific Maritime Security Program, 3, 24, 25 Pacific Step-Up initiative, 3, 5, 20-22, 28-29, 47 Papua New Guinea, 5, 20, 21-22, 24 parliamentary committees, 74-77 Parliamentary Standing Committee on Public Works,

77

Partner Employment Assistance Program, 108 partnerships and collaboration, 21, 22, 25, 48, 83 Pat Turner Scholarship, 85 Pathway to Change: Evolving Defence Culture

2017-22, 43, 83, 85, 120-121 payment of accounts, 65 performance management, 19, 43, 70 performance pay, 107, 249 Periodic Mental Health Screen, 49, 84, 109 Personalised Career and Employment Program, 50,

109

PFAS management, 138 Phantom 4, 6 Philippines, 5 pollution prevention program, 136 portfolio, ii, 10-11 Portfolio Budget Statements, 13, 18, 19, 44 portfolio ministers, ii Poseidon, P-8A, 3, 12 post-traumatic stress disorder trials, 49, 109 preparedness, 26, 31-32, 36-38 Preparedness and Concurrency ministerial advice,

31-32

programs, 13 projects AIR3029, 8 Jackstay, 126 RESTORE, 49, 109 Projects of Concern, 34, 131 Prolonged Exposure trials, 49 property holdings, iii Public Governance, Performance and Accountability

Act 2013, 18 public interest disclosure, 79-80 purchasing, 127

purposes, ii, 10

Q quarantine evasion, 23 Quarterly Strategic Review, 28

R Reconciliation Action Plan, 6, 116 recruitment, 39, 82, 83, 86-87, 100-101 Redress of Grievance complaints, 73 regional engagement, 2, 3, 20-24 remediation programs, 136 remotely piloted aircraft, 6 remuneration and benefits, 101-103, 105, 247-249 research programs, 3, 46, 48 Reserves, ADF, 90-91, 98-99 Resolute Support Mission, 21 responsible ministers, ii, 10, 11 review of actions, 119 Reynolds, Senator the Hon Linda (Minister for

Defence), ii, 3, 10 risk management, 70 role, ii

S SBS Cultural Competence Program, 85 science and technology investment, 46 Science and Technology Outlook, 30 Seafarers Handbook for Australian Waters, 66 search and rescue, 20, 23 Secretary see Moriarty, Greg (Secretary) Secretary of Defence Fellowship, 85 seminars and symposia, 30, 50, 109, 129 senior executive service remuneration, 252 statistics, 95 Senior Leadership Group, 104-105 changes in, 15 Service Categories, 87 Service Delivery Framework, 42 sexual misconduct, 83, 122-124 Shangri-La Dialogue, 3 shipbuilding plan see Naval Shipbuilding Plan Silvershield, 139 Sir Roland Wilson Foundation PhD Scholarship, 85 skills framework, workforce, 84 skills recognition framework, 109 Small Business Innovation Research for Defence

program, 129 small business procurement, 6, 127 Smart Buyer Framework, 40, 71 Smart Satellite Cooperative Research Centre, 129 smuggling, 23 Solomon Islands election, 5, 21, 22

274 DEFENCE ANNUAL REPORT 2018-19

Solomon Islands National Tide Tables, 66 South-East Asia, 21-22 South-West Pacific, 21-22, 66 Sovereign Investment Capability Priority Grants

program, 26, 45 Space Surveillance Telescope Facilities, 8 Space Technologies Symposium, 30 space-based objects, tracking and identification of, 8 Special Operations Task Group inquiry, 73 Specialist Recruiting Teams for Women, 83 Squadron 822X, 6 star-ranked officers remuneration, 253-254 statistics, 94 statutory officers, 105 strategic direction, 10 strategic interests, defence of (Purpose 2) analysis, 26-27 results 2018-19, 28-52 strategic risk management, 28 Strategic Workforce Plans, 83 strategy, ii strike and air combat, 131 Studybank, 84 Submarine Enterprise, 74 submariner competition, 86, 101 submarines, 3, 74, 86, 130 superannuation schemes and benefits, 51 Supply Nation, 3, 116

T tactical payment scheme, 65 tertiary education assistance programs, 84 Total Workforce Model, 42, 83, 87-88 training environment simulation technologies, 6 training exercises see exercises training missions, ADF assistance in, 20, 21, 24 Transition and Wellbeing Research Program, 82 Transition for Employment Program, 50, 109 transition from the ADF, support during, 26, 50, 82,

106, 109-110 Triton, MQ-4C, 6 Tropical Cyclone Trevor, 20, 23

U unacceptable behaviour, 120-121 unit availability days targets, 36-38 United Nations Security Council, 6, 12, 20-21, 22 United States Force Posture Initiative, 33 unmanned and autonomous systems, 6

V values, ii Vanuatu, 24 veterans, 108-110

W waste management, 134 Watch Keeping Support Program, 25 water consumption, 137 website, 272 Western Sydney Airport project, 136 women, 96-97, 114 enlistments, 87 in leadership roles, 114 number of, 96 recruiting, 83, 100-101 training, 101 Women, Peace and Security agenda, 20, 47 Women, Peace and Security Fellowship, 85 work health and safety, 82, 110-113 Work Health and Safety Strategy 2017-22, 49, 82,

110

workforce, iii, 2 Australian Public Service staffing, 91-92 disability, personnel with, 118-119 diversity, 85, 114-119 education and training, 84-85, 106, 117 gender, 96-97 health and wellbeing services, 108-110 Indigenous, 115-117, 246 key initiatives and achievements 2018-19, 83-84 professional development, 84 recruitment, 100-101 recruitment, 39, 82, 83, 86-87, 100 remuneration and benefits, 101-103, 105,

247-249 statistics, 87-98, 229-256 summary, 16, 82-84 support services, 107-108 see also Australian Defence Force; Australian

Public Service workforce; women workplace flexibility and mobility, 85 wounded, injured and ill Defence personnel, 7, 60

Y YourSay Survey, 43

275 CONTACTS AND ACKNOWLEDGEMENTS

Contacts and acknowledgments © Commonwealth of Australia 2019

ISSN 1323-5036 (print) ISSN 2203-0050 (online)

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Acknowledgements

This report was developed by the Governance and Reform Division, with input and assistance from staff throughout Defence.

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DPS: JUL051-19