2016 DEFENCE WHITE PAPER

178
CHAPTER EIGHT: FUNDING DEFENCE
8.5 The Government has introduced a new 10-year funding model for
Defence which gives Defence the long-term funding certainty it needs.
The Government’s long-term funding commitment to Defence will see
the Defence budget grow to $42.4 billion in 2020–21, reaching two per
cent of Australia’s GDP based on current projections.
8.6 Substantial progress has already been made towards meeting this
long-term commitment to grow the Defence budget. In the 2014–15
Commonwealth Budget, the Government delivered on its promise to not
cut the Defence budget. In 2015–16, the Defence budget grew with an
increase of $9.9 billion over the forward estimates. The Defence budget
in 2015–16 is $32.3 billion.
8.7 The Government will continue to increase the Defence budget to reach
$42.4 billion, which is two per cent of GDP, in 2020–21. Across the
10-year Defence budget model Defence will be provided with
$29.9 billion more than was previously planned in the period to
2025–26. This provides Defence with long-term planning certainty it
has not had since the Defence White Paper in 2000.
SECTION THREE REFORM, RESOURCING & IMPLEMENTATION
8.8 This 10-year funding model is based on a fully costed future force
structure, with external validation of these costs by experts in cost
assurance from private sector companies which are globally recognised
for their cost analysis and assessment services. This is the most
comprehensive cost assurance that has been undertaken for a Defence
White Paper. The external cost assurance process included investigating
the acquisition and sustainment costs for potential new capabilities,
as well as significant existing equipment, facilities and information
technology projects, the Defence workforce and the cost of our
enhanced program of international defence engagement.
8.9 Collectively, around 80 per cent of the Defence budget has been
externally cost assured by private sector experts, with the remaining
budget subject to internal cost analysis and assurance. This has