2016 DEFENCE WHITE PAPER

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CHAPTER EIGHT: FUNDING DEFENCE
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Defence’s operating costs, such as freight, travel and contractors
will remain at around seven to nine per cent of the budget, and will
grow from $2.8 billion in 2016–17 to $4.0 billion in 2025–26.
8.15 The breakdown of the new funding model by these major categories is
illustrated in the chart below.
70 000
60 000
50 000
2025–26: 7%
$ million
40 000
30 000
2016–17: 9%
2025–26: 26%
20 000
2016–17: 37%
2025–26: 28%
10 000
2016–17: 25%
0
2016–17: 29%
2025–26: 39%
2016–17
2017–18
2018–19
2019–20
2020–21
2021–22
2022–23
2023–24
2024–25
2025–26
Total Capital Investment Guidance
Total Operating Expenditure Guidance
Total Sustainment Guidance
Total Appropriation
Total Employees Guidance
SECTION THREE REFORM, RESOURCING & IMPLEMENTATION
Figure 5:
Budgeting in Defence
Guidance Expenditure by Category
8.16 The Government is determined that this Defence White Paper
re-establish an affordable, achievable, and sustainable basis for our
nation’s defence and to rebuild our capabilities.
8.17 The commitments in this White Paper, and its supporting Integrated
Investment Program, provide consistency and predictability in the
design of the future ADF and the Defence budget. Defence must
implement these plans effectively and efficiently.