Table of Contents

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019_1617_Documents

S E C R E T A U S T EO

Table of Contents

CHAPTER 1 ........................................................................................................................................................... 7

MATTERS YOU MAY WISH TO CONSIDER IN THE FIRST SIX WEEKS ........................................................................ 7

CHAPTER 2 ......................................................................................................................................................... 13

MATTERS YOU MAY WISH TO CONSIDER IN THE FIRST THREE MONTHS .............................................................. 13

CHAPTER 3 ......................................................................................................................................................... 21

MATTERS YOU MAY WISH TO CONSIDER IN THE FIRST SIX MONTHS .................................................................... 21

CHAPTER 4 ......................................................................................................................................................... 31

RESOURCING ..................................................................................................................................................... 31

CHAPTER 5 ......................................................................................................................................................... 35

OPERATIONAL CHALLENGES ............................................................................................................................. 35

CHAPTER 6 ......................................................................................................................................................... 45

2016 DEFENCE WHITE PAPER ............................................................................................................................ 45

CHAPTER 7 ......................................................................................................................................................... 51

SHIPBUILDING .................................................................................................................................................... 51

CHAPTER 8 ......................................................................................................................................................... 55

DEFENCE CAPABILITIES ..................................................................................................................................... 55

CHAPTER 9 ......................................................................................................................................................... 71

FIRST PRINCIPLES REVIEW ................................................................................................................................ 71

CHAPTER 10 ....................................................................................................................................................... 73

ACCOUNTABILITY AND GOVERNANCE IN DEFENCE............................................................................................ 73

CHAPTER 11 ....................................................................................................................................................... 79

DEFENCE FACTS ................................................................................................................................................ 79

ANNEX A – POWERS AND PORTFOLIO RESPONSIBILITIES OF THE MINISTER .................................................... 117

ANNEX B – 2016 DEFENCE WHITE PAPER ....................................................................................................... 119

ANNEX C – FIRST PRINCIPLES REVIEW ............................................................................................................ 125

ANNEX D – BODIES WITHIN THE DEFENCE MINISTER’S PORTFOLIO ................................................................ 127

ANNEX E – TALKING POINTS FOR COUNTERPART CALLS: ............................................................................... 129

ANNEX F – DEFENCE SCIENCE AND TECHNOLOGY .......................................................................................... 147

ANNEX G – PROJECTS OF CONCERN ................................................................................................................ 151

ANNEX H – PEOPLE ......................................................................................................................................... 153

ANNEX I – CURRENT CULTURAL REFORM ....................................................................................................... 161

ANNEX J – ESTATE .......................................................................................................................................... 165

ANNEX K –INFORMATION AND COMMUNICATION TECHNOLOGY .................................................................... 171

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Overview

Overview

(U) The previous government released the 2016 Defence White Paper and an Integrated

Investment Program for future investment in capability, estate and information and

communications technology (ICT). This was preceded by the First Principles Review, which

was a comprehensive examination of the way Defence is governed, organised and

administered.

(FOUO) Prior to the election, the previous government made decisions related to the Future

Submarine Program and shipbuilding more generally. Implementing the 2016 Defence White

Paper, the First Principles Review and developing and implementing a viable shipbuilding

strategy represent a major challenge in an environment of continuing budget pressure.

Specific Challenges:

(U) First Principles Review: We are well into the implementation of the First Principles

Review. We have moved from planning to execution. For implementation to succeed,

Defence will need to achieve major change to business processes and practice in every area

of activity by the end of 2017. (Chapter 9 and Annex C refer)

(FOUO) White Paper Implementation: The 2016 Defence White Paper aligns strategy,

capability and resources. The challenge of implementation will be maintaining this alignment

in an environment of downward budget pressure. (Chapter 6 and Annex B refer)

(U) The Integrated Investment Program: This was agreed by the previous government as

part of the 2016 Defence White Paper decision. This program includes capability, estate and

ICT projects as an integrated portfolio of work linked by a tight and ambitious schedule. S47C

S47C

S47C

(Chapters 4, 6 and 8 refer)

(FOUO) Shipbuilding: The previous government has committed to a very ambitious and

aggressive schedule in relation to the build of 12 offshore patrol vessels and 9 future frigates.

Current infrastructure is not sufficient to meet these tasks, which also include the construction

of Future Submarines in Australia. Establishing appropriate governance arrangements over

shipbuilding to ensure an adequate infrastructure and project and budget control will be a

major challenge. (Chapter 7 refers)

(U) Future Frigate: The Government will be making a decision on the selection of the future

frigate S47C , with construction to commence in 2020. (Chapter 7 refers)

(FUOU) Future Submarines: Work is well underway to establish this project. S47C

S47C

S47C

(Chapter 7 refers)

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Overview

S47C

S33(a)(iii)

(U) Workforce: The workforce is a major challenge. Since 30 June 2012, the Defence fulltime

employment APS workforce has reduced by 4,716, from 22,284 on 20 June 2012 to

17,568 on 19 May 2016. This is a 21% reduction returning approximately $891 million to the

budget. The ADF continues to fall short of its workforce targets. In order to meet the

requirements of the 2016 Defence White Paper, the workforce will need to undergo

significant restructuring and skills acquisition in coming years, with increases particularly in

intelligence, project management and engineering. This will occur in an increasingly

competitive marketplace for sophisticated technological and management skills. (Chapter 6

and Annex H refers)

(U) Cultural Reform: The Pathway to Change Program will conclude as a program in 2017.

Pathway to Change in some form will continue and incorporate the behavioural reform

elements of the First Principles Review. Your early support for the importance of continuing

cultural reform will be important for continuity and for the change that has been driven by the

Chief of the Defence Force, the Secretary, Vice Chief of the Defence Force, the Service

Chiefs and other senior executives. (Annex I refers)

(U) Industry Policy: The previous government released a Defence industry policy which

seeks to more closely integrate industry into capability development, acquisition and

sustainment. S47C

S47C

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Overview

(P) ICT: Defence is undergoing the largest ICT transformation in government, with the

modernisation of its infrastructure, the establishment of a single Defence information

environment under a Chief Information Officer with real authority, and a proposed Enterprise

Resource Planning system currently planned for first pass consideration this year. ICT is an

area of high risk because of the complexity of Defence systems, the decay of legacy systems

and the challenges of sustaining a workforce both within Defence and in industry in a very

competitive labour market. (Annex K refers)

(U) Defence Estate: There is a need to consolidate and rationalise the Defence estate in some

areas, and make investment in other areas, especially to address the ageing of the estate. This

work has been proceeding steadily and carefully because of the community implications of

decisions. The disposition of the estate is a major cost driver for Defence because of the flow

on into personnel and logistics systems. Project approval schedules and workforce skills will

be key risks. Defence is continuing the investigation and management associated with

PFOS/PFOA presences across Defence bases. (Annex J refers)

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S47C

Overview

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S47C

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Chapter 1 – The first six weeks

Chapter 1

Matters you may wish to consider in the first six weeks

Key Issues








(U) Briefings

(U) Operationally significant issues

(U) Potential Visits and Activities

(U) Alliance/International issues

(U) Matters for Early Consideration

(U) Counterpart Calls

(U) Parliamentary Matters

Briefings

1.1 (C) We recommend a program of special briefings for you and your chief of staff as

soon as convenient. Many of these briefings will be highly classified and as such, we also

recommend that your relevant staff commence the security clearance process as a matter of

urgency, if they do not already have appropriate security clearances.

Operationally significant issues

Decision on continuing support to Operation SOUTHERN INDIAN OCEAN

1.2 (U) Operation SOUTHERN INDIAN OCEAN is the ADF contribution to the

Australian Government search operation for Flight MH370.

1.3

s47C

s47C

Approval of Public Events of Significant and Support to the Spirit of ANZAC

Centenary Experience.

1.4 (FOUO) Defence will seek ministerial approval of the 2016-17 Public Events of

Significance Program. The Program comprises nominated public events – usually attracting

substantial attendance from the general public and media interest – that Defence has been

asked to support through the Defence Assistance to the Civil Community. The cost of the

2016-17 Program is estimated tos47C

1.5 (FOUO) Defence is required to seek ministerial approval for costs associated with the

2016-17 Support to the Spirit of ANZAC Centenary Experience Program. The cost is

estimated

s47C

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s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

1.6

s33(a)(ii), s33(a)(iii)

S E C R E T A U S T EO

Chapter 1 – The first six weeks

1.7 s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

1.8 s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

Review of Australia’s Contribution to the Counter-Daesh Coalition in Iraq

Operation OKRA

1.9 (S) The Counter-Daesh Defence Ministers’ meeting is proposed for 21-22 July 2016 in

Washington DC. s33(a)(iii)

s33(a)(iii)

1.10 s33(a)(ii)

s33(a)(ii)

1.11

s34

s34

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1.12 s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

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Chapter 1 – The first six weeks

Potential Visits and Activities

1.13 s33(a)(iii)

s33(a)(iii)

1.14 s47C

s47C

1.15 s7(2A)

s7(2A)

1.16 (U) Welcome Home ceremony for HMAS Darwin, 17 July 2016 at Fleet Base East,

Woolloomooloo, NSW. HMAS Darwin will return home from the Middle East Region

following a six month deployment, as part of the ADF contribution to the International

Coalition Against Terrorism.

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Visit to Washington

S E C R E T A U S T EO

Chapter 1 – The first six weeks

1.17 The Counter-Daesh Defence Ministers’ meeting is proposed for 20-21 July 2016 in

Washington DC. s33(a)(iii)

s33(a)(iii)

(Paragraphs 1.9 to 1.12 above refer)

Visit to the Middle East

1.18 (FOUO) A visit to deployed personnel in the Middle East Region, including the

United Arab Emirates, Iraq and Afghanistan, would enable you to meet with operational

personnel and visit counterparts for strategic discussions.

Alliance/International issues

s33(a)(ii), s33(a)(iii)

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Chapter 1 – The first six weeks

Australia-United States Force Posture Initiatives

1.26 s33(a)(iii)

s33(a)(iii)

s33(a)(iii)

1.27

s33(a)(iii)

1.28 s33(a)(iii), s34

s33(a)(iii), s34

Japan Strategic Partnership

s33(a)

1.29 (U) The 2016 Defence White Paper confirmed Japan is a close strategic partner.

s33(a)(iii)

(iii)

1.30 (U) s33(a)(iii)

s33(a)(iii)

1.31 s33(a)(iii)

s33(a)(iii)

Matters for Early Consideration

Signing of Memorandum of Understanding on Military Training and Training Area

Development (Singapore)

1.32 (U) On 6 May 2016, Australia and Singapore agreed a substantial new package of

bilateral defence engagement, as part of a whole-of-government initiative. The major Defence

initiative is for a substantial increase in unilateral Singapore land training in Australia. It

represents an increase from 6,000 to 14,000 Singaporean troops and an increase from the

current program of six weeks to 18 weeks.

S47C

1.33

S47C

Defence Housing Australia

S47C

1.34

S47C

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1.35

s47C

s47C

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Chapter 1 – The first six weeks

1.36

s47C

s47C

First Principles Review – Progress reports to Government

1.37 (U) The First Principles Review recommended that the Minister, with input from the

Department and the implementation Oversight Board, report progress to the Government.

1.38

S47C

Counterpart Calls

1.39 (U) Within the first few days, you are likely to receive calls from, or wish to initiate

calls with, your principal counterparts. These would include:

s33(a)(iii)

1.40 (U) Talking Points for these calls are at Annex E.

Parliamentary Matters

1.41 (U) There are a number of Parliamentary committee reports to which responses are

due within the first six weeks and the first three months of the Government. We will engage

with you early to determine your guidance on the Government’s response to these reports.

s47C

1.42 (U)

s47C

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Chapter 2 – Matters you may wish to consider in the first three months

Chapter 2

Matters you may wish to consider in the first three months

Key Issues

(U) Operationally Significant Issues

(U) Potential and Scheduled International Visits and Activities

(U) Policy Matters for Consideration

(U) Major projects requiring Government consideration

Operationally significant issues

S33(a)(iii)

Operation MANITOU

2.3 (U) Operation MANITOU is the ADF commitment to the Combined Maritime Forces

in the Middle East Region.

2.4 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

2.5 (S) HMAS Perth replaced HMAS Darwin as the 63 rd rotation from 24 June 2016.

S47C

S33(a)(ii)

S33(a)(ii)

2.6 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

Operation OKRA

2.7 (U) Operation OKRA is the ADF contribution to the US-led multinational Operation

Inherent Resolve which disrupts and degrades Daesh (also known as ISIL) and assists the

Iraqi Security Forces regain control of its territory.

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Chapter 2 – Matters you may wish to consider in the first three months

Potential and Scheduled International Visits and Activities

2.8 S34

S34

2.9

S47C

S47C

Policy Matters for Consideration

S33(a)(ii), S33(a)(iii)

2.10 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

2.11 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

Shipbuilding Governance

2.12 (FOUO) S47C

S47C

The Secretary and CDF

have already established internal governance arrangements for all ship and submarine

decisions. Additional, strong governance mechanisms will be required to support the Plan

(Chapter 7 refers).

2016 Defence White Paper

2.13 (U) Defence has put in place a two-year White Paper Implementation Strategy to

monitor progress against key 2016 Defence White Paper initiatives and will report to

government on the progress.

2.14 (U) The first report to government is due S47C

(Chapter 6 and

Annex B refer).

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Chapter 2 – Matters you may wish to consider in the first three months

S33

S33(a)(ii), S34

2.15

S33(a)(ii), S34

2.16 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

2.17 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

S33

S33(a)(ii), S33(a)(iii)

2.18

S33(a)(ii), S33(a)(iii)

2.19

S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

2.20 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

Pacific Maritime Security Program

2.21 (S AUSTEO) The Pacific Maritime Security Program is the centrepiece of Defence

engagement in the South Pacific and has three components: replacement of the current fleet of

Pacific Patrol Boats; contracted aerial surveillance; and enhancements to regional

S34

coordination.

S34

2.22

S34

S33(a)(ii), S33(a)(iii)

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Chapter 2 – Matters you may wish to consider in the first three months

Major projects in the Integrated Investment Program likely to require

consideration in the first three months

2.23 (U) The Integrated Investment Program agreed in the 2016 Defence White Paper listed

approximately S47C

S47C

Project Approval

S33(a)(ii), S34, S47C

July 2016

S33(a)(ii), S34, S47C

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Chapter 2 – Matters you may wish to consider in the first three months

S33(a)(ii), S47C

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Chapter 2 – Matters you may wish to consider in the first three months

S34, S47C

S34, S47C

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Chapter 2 – Matters you may wish to consider in the first three months

S34, S47C

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Chapter 2 – Matters you may wish to consider in the first three months

S34, S47C

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Chapter 3 – Matters you may wish to consider in the first six months

Chapter 3

Matters you may wish to consider in the first six months

Key Issues:

(U) Operationally Significant Issues

(U) Scheduled International Visits or Activities

(U) Major Policy Decisions

(U) Major Projects Requiring Consideration through the Cabinet process

Operationally Significant Issues

Operation MAZURKA

3.1 (U) Operation MAZURKA is the ADF contribution to the Multinational Force and

Observers in the Sinai, Egypt

s33(a)(ii)

3.2

s33(a)(ii)

3.3 s33(a)(ii)

s33(a)(ii)

3.4 s33(a)(ii)

s33(a)(ii)

Operation ACCORDIAN

3.5 (U) Operation ACCORDION is the ADF Middle East Region Command and Support

node for current ADF Middle East Region operations and contingencies.

s33(a)(ii), s33(a)(iii)

3.6

s33(a)(ii), s33(a)(iii)

Defence Preparation for potential Disaster Relief Operations for the 2016-17 Summer

Season

3.7 (FOUO) Defence supports communities both domestically and internationally in

response to disasters throughout the year, with peak support traditionally occurring during the

Summer Season (October-May).

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Chapter 3 – Matters you may wish to consider in the first six months

3.8 (FOUO) Support is provided when State and Territory authorities or Emergency

Management Australia request support as outlined in the Australian Government Crisis

Management Framework. Defence Assistance to the Civil Community (DACC) is the

mechanism through which Defence assists organisations and agencies to deliver an outcome

when their resources are not sufficient or have been overwhelmed. Defence also provides

support in response to international humanitarian crisis caused by man-made and natural

disasters, with our near neighbours in the South Pacific and South East Asia as outlined in the

2016 Defence White Paper.

Potential and Scheduled International Visits or Activities

s47C

3.9

s47C

s47C

s47C

3.10

s47C

s47C

3.11

s47C

s47C

s47C

3.12

s47C

s47C

3.13

s47C

s47C

Visit to the Middle East

3.14 (FOUO) A visit to deployed personnel in the Middle East Region, including the

United Arab Emirates, Iraq and Afghanistan, would enable you to meet with operational

personnel and visit counterparts for strategic discussions.

s47C

3.15

s47C

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Chapter 3 – Matters you may wish to consider in the first six months

Visit to UK for AUKMIN

3.16 (FOUO) AUKMIN (Australia and United Kingdom Ministerial dialogue) is the annual

ministerial-level dialogue between the Australian and UK Foreign and Defence Ministers and

is the premier forum for strengthening bilateral cooperation on foreign policy, defence and

strategic matters. s47C

s47C

3.17 (FOUO) Dates for AUKMIN 2016 have not been finalised. The UK has proposed

rescheduling AUKMIN on either of the following dates: 21-22 September or 19-20 October

2016. The Department of Foreign Affairs and Trade has also proposed 5, 6, 9, or 12

September 2016.

Visit to Germany for 2+2 Ministerial Consultations

3.18 The inaugural Australia-Germany 2+2 is a ministerial-level dialogue, involving the

Ministers for Foreign Affairs and Defence, designed to strengthen bilateral cooperation on

foreign policy, defence and strategic matters. s47C

s47C

3.19 (FOUO) The inaugural 2+2 Ministerial Consultations have yet to be scheduled but

Germany has proposed the last quarter of 2016. To maximise travel efficiencies Defence

proposes that the inaugural Australia-Germany 2+2 occur either side of AUKMIN 2016 (also

yet to be scheduled) or in the sidelines of another ministerial visit to Europe. (See paragraph

3.17)

Major Policy Decisions

s33(a)(ii), s33(a)(iii)

3.20 (S) s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

3.21

s33(a)(ii), s33(a)(iii)

s33(a)(ii), s33(a)(iii)

3.22

s33(a)(ii), s33(a)(iii)

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Chapter 3 – Matters you may wish to consider in the first six months

United Nations Non-Regional Peace Operations Review

3.23

s47C

s47C

3.24 (U) Currently, ADF personnel are deployed to three peacekeeping operations: the

Multinational Force and Observers Mission in the Sinai, Egypt (Operation MAZURKA); the

United Nations Mission in South Sudan (Operation ASLAN); and the United Nations Truce

Supervision Organisation in the Middle East (Operation PALADIN). The net additional costs

for these operations (approximately $6.5 million per annum) are borne by Defence.

3.25 (U) Defence will provide a draft brief on this issue to you s47C

s33(a)(iii)

s33(a)(iii)

3.26

s33(a)(iii)

3.27 s33(a)(iii)

s33(a)(iii)

3.28 s33(a)(iii)

s33(a)(iii)

Estate Rationalisation

3.29 s47C

s47C

3.30

s47C

s47C

3.31

s47C

s47C

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Chapter 3 – Matters you may wish to consider in the first six months

Review of Defence Support to National Counter-Terrorism Arrangements

3.32 (S AGAO) Defence is conducting a Review of Defence Support to National Counter-

Terrorism Arrangements (the Review) s33(a)(i)

s33(a)(i)

3.33 s33(a)(i)

s33(a)(i)

3.34 s33(a)(i)

s33(a)(i)

Capability Projects in the Integrated Investment Program likely to require

consideration in the first six months

3.35 (U) The Integrated Investment Program agreed in the 2016 Defence White Paper listed

s47C

s34, s47C

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Chapter 3 – Matters you may wish to consider in the first six months

s34, s47C

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Chapter 3 – Matters you may wish to consider in the first six months

s34, s47C

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Chapter 3 – Matters you may wish to consider in the first six months

s34, s47C

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Chapter 3 – Matters you may wish to consider in the first six months

s34, s47C

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S47C

Chapter 3 – Matters you may wish to consider in the first six months

Intentionally blank

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S47C

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Chapter 4 – Resourcing

Chapter 4

Resourcing

Key Issues




(U) Defence’s budget is complex and requires key budget management techniques.

(U) Current resourcing snapshot.

(FOUO) Significant resourcing pressures arise from recent initiatives absorbed by

Defence.

The Complexity of the Defence budget requires key budget techniques

4.1 (FOUO) The Defence budget is inherently complex. It requires the flexibility to adapt

to changing circumstances, the certainty of aggregate funding for long term planning and the

capacity to reprioritise based on changing government and capability requirements.

4.2 (FOUO) The Defence budget is a large, broad and complicated set of activities. It is

allocated to 13 Groups and Services within Defence, incorporates over 900 capital projects,

approximately 200 sustainment products, over 120,000 civilian and military employees,

contractors and service providers, and over 20 other major contracts each worth over $100m.

4.3 (FOUO) The Defence budget is sensitive to inherent volatility in the economic

parameters. Changes in the economic assumptions underlying the estimates will impact on

Defence’s budget. Even small movements in economic parameters can result in large

changes to the budget estimates.

4.4 (FOUO) Budget estimates for over 900 major projects have an inherent degree of

uncertainty. The Defence budget is sensitive to minor project schedule changes and can

cause spending patterns to move across years. With over $15bn of the Defence budget

allocated to major capital and sustainment products even small delivery adjustments can

result in hundreds of millions of dollars moving from one year to the next. Additionally,

some budget line items are inherently volatile and very unpredictable. S47D, S47E(d)

S47D, S47E(d)

4.5 (FOUO) To manage the complexities of the Defence budget, a number of budget

techniques are utilised to ensure that competing priorities are matched against available

resources. S47C, S47E(d)

S47C, S47E(d)

Funding for Operations

4.6 (FOUO) Defence is funded for the Net Additional Cost (NAC) in excess of $10m of

major Operations on a “no-win no-loss” basis. The NAC covers the costs unique to the

Operation that are above the baseline Defence funding to raise, train and sustain forces. For

example, the additional allowances paid to ADF members while on deployment contribute to

the NAC, while ADF member base salaries do not contribute to the NAC. For operations

costing less than $10m Defence absorbs the cost from within its baseline funding.

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Chapter 4 – Resourcing

Current Resourcing Snapshot

4.7 (FOUO) The 2016 Defence White Paper 10-year funding model will see Defence

funding increasing to two per cent of Australia’s Gross Domestic Product (GDP) by 2020-21.

4.8 (FOUO) Defence’s departmental funding from government grows from 2015-16 by

3.0% in real terms across the Forward Estimates andS47C

4.9 (FOUO) The Defence Departmental and Administered budgets across the Forward

Estimates and decade are outlined in Table 1 below.

Table 1: Defence Funding

DEFENCE BUDGET

2016-17 2017-18 2018-19 2019-20 Total FE's

S47C

$m $m $m $m $m

Defence Departmental

funding from Government

(excluding Operations)

31,580 34,502 36,736 39,226 142,043

Defence Departmental

funding from Government

for Operations

758 49 40 0 847

Defence Departmental

funding from Government

32,338 34,551 36,776 39,226 142,890

Administered funding from

Government

3,853 4,129 4,397 4,651 17,030

Total Budget 36,191 38,680 41,173 43,877 159,920

4.10 (FOUO) The broad structure of the Defence departmental budget is shown in Table 2

below.

Table 2: Planned Defence Expenditure by Major Category

DEFENCE BUDGET

2016-17 2017-18 2018-19 2019-20 Total FE S47C

$m $m $m $m $m

Capital Investment 9,446 (29%) 11,082 (32%) 12,550 (33%) 13,603 (34%) 46,681 (32% )

- Capital Equipment 7,162 (22%) 8,212 (23%) 9,623 (26%) 10,578 (27%) 35,576 (24%)

- Capital Facilities 1,390 (4%) 1,978 (6%) 1,852 (5%) 2,010 (5%) 7,200 (5%)

- ICT 894 (3%) 892 (3%) 1075 (3%) 1,015 (3%) 3,597 (2%)

Sustainment 8,283 (25%) 9,018 (26%) 9,786 (26%) 10,576 (27%) 37,664 (26% )

Employees 12,014 (36%) 12,241 (35%) 12,410 (33%) 12,800 (32%) 49,465 (34% )

Operating Expenditure 2,536 (8%) 2,633 (8%) 2,695 (7%) 2,778 (7%) 10,642 (7% )

Operations 760 (2%) 49 (0%) 40 (0%) 0 (0%) 850 (1% )

Total 33,039 35,023 37,481 39,758 145,301

S47C, S47E(d)

S E C R E T A U S T EO

32


S E C R E T A U S T EO

Chapter 4 – Resourcing

4.11 (U) Within the Defence portfolio, S47C

S47C

with 32% over the Forward Estimates.

Delivering the Integrated Investment Program entails significant work and requires changes

to the way Defence manages both project approvals through the Government and the

capability life cycle. There is an enduring risk that the Defence budget will be underspent.

Table 3: Planned Expenditure as a Percentage of the Total Budget

DEFENCE BUDGET

2016-17 2017-18 2018-19 2019-20 Total FE

% % % % %

S47C

Capital Investment 28% 32% 33% 34% 32%

- Capital Equipment 21% 23% 26% 27% 24%

- Capital Facilities 4% 6% 5% 5% 5%

- ICT 3% 3% 3% 3% 2%

Sustainment 25% 26% 26% 27% 26%

Employees 37% 35% 33% 32% 34%

Operating Expenditure 8% 8% 7% 7% 7%

Operations 2% 0% 0% 0% 1%

S47C, S47D, S47E(d)

S E C R E T A U S T EO

33


S E C R E T A U S T EO

Chapter 4 – Resourcing

4.15 Table 4 below shows the level of S47C, S47E(d) absorbed Measures.

Table 4: S47C, S47E(d) and Absorbed Measures

DEFENCE BUDGET

2016-17 2017-18 2018-19 2019-20 Total FE's

S47C

$m $m $m $m $m

Antarctica - Maintaining

Australia's Presence

Spirit of ANZAC Centenary

Experience

Australia's Cyber Security

Strategy

Closure of Hunter River

and Pt Stephens Fisheries

S47C, S47E(d)

Absorbed Measures

4.16 Table 5 below shows S47C, S47E(d)

S47C, S47E(d)

11 11 11 11 45

10 10

64 37 37 36 173

2 2

87 48 48 47 230

Defence Spend by Category (%) - from 1960-61 to 2026-27 (Nominal Terms)

70%

65%

PBS 2016-17

S47C, 47E(d)

60%

55%

Percentage of Total Budget

50%

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

Notes:

1. 1999-00 to 2014-15 figures obtained from Audited Financial Statements, Statement of Cash Flows.

2. 2015-16 to 2026-27 figures obtained from PBS 2016-17.

Year

Capital Operating Employee

S E C R E T A U S T EO

34


S E C R E T A U S T E O

Chapter 5 – Operational Challenges

Chapter 5

Operational Challenges

Key Issues

Domestic

S33(a)(i), S33(a)(ii)

(U) Operation RESOLUTE is the ADF contribution to Maritime Border Command’s

(MBC) Operation MARITIME PROTECTOR and the MBC-led, multi-agency Operation

SOVEREIGN BORDERS.

Regional

(U) Operation SOUTHERN INDIAN OCEAN is the ADF contribution to the Australian

Government search operation for Flight MH370.

(U) Operation GATEWAY is Australia's enduring contribution to the preservation of

regional security and stability in South East Asia.

S33(a)(i), S33(a)(ii)

(U) Operation SOLANIA is Australia's ongoing maritime surveillance operation to

support the Pacific Island Countries in fisheries law enforcement within the South West

Pacific.

(U) Operation RENDER SAFE is a biennial, multinational, Explosive Ordnance Disposal

support to the nations of the South West Pacific to reduce the effects of Explosive

Remnants of War (ERW) and assists in building an indigenous awareness and capability

for the safe disposal of ERW.

Middle East Region: Major Ops

(U) Operation ACCORDION is the overarching ADF Middle East Region Command and

Support operation for other current ADF Middle East Region operations and

contingencies.

(U) Operation HIGHROAD is the ADF commitment to the NATO-led Resolute Support

Mission in Afghanistan.

(U) Operation MANITOU is the ADF commitment to the Combined Maritime Forces in

the Middle East Region.

(U) Operation OKRA is the ADF contribution to the US-led multinational Operation

Inherent Resolve which disrupts and degrades Daesh (also known as ISIL) and assists the

Iraqi Security Forces regain control of its territory.

Global: Minor Ops

(U) Operation MAZURKA is the ADF contribution to the Multinational Force and

Observers in the Sinai, Egypt.

(U) Operation ASLAN is the ADF contribution to the United Nations Mission in South

Sudan.

(U) Operation PALADIN is the ADF contribution to the United Nations Truce

Supervision Organisation in Lebanon, Israel, Syria, Egypt and Jordan.

S E C R E T A U S T E O

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S E C R E T A U S T E O

Chapter 5 – Operational Challenges

S33(a)(ii), S33(a)(iii)

S E C R E T A U S T E O

36


S E C R E T A U S T E O

Chapter 5 – Operational Challenges

DOMESTIC

S33(a)(ii), S33(a)(iii)

S E C R E T A U S T E O

37


S E C R E T A U S T E O

Chapter 5 – Operational Challenges

Operation RESOLUTE

5.3 (U) Maritime Border Command, within the Australian Border Force, maintains a

multi-layered approach incorporating intelligence systems, aerial surveillance and on-water

patrol and response assets to coordinate and control maritime security operations. Maritime

Border Command has the mandate to protect Australia’s national interests against the

following eight non-military maritime security threats:









illegal exploitation of natural resources;

illegal maritime arrivals;

illegal activity in protected areas;

prohibited imports and exports;

maritime terrorism;

piracy, robbery, violence at sea;

compromise of biosecurity; and

maritime pollution.

5.4 (U) Led by Maritime Border Command, the Detection, Interception and Transfer Task

Group is responsible for the detection, interception and on-water transfer of Suspected Illegal

Entry Vessels and Illegal Maritime Arrivals under Operation SOVEREIGN BORDERS.

5.5 (U) ADF aerial surveillance, maritime response and land surveillance assets and units

are provided to Maritime Border Command as ADF Joint Task Force 639 under

OPERATION RESOLUTE. Maritime Border Command is commanded by a Royal

Australian Navy Rear Admiral who holds the dual appointment of Commander Maritime

Border Command and the ADF Commander of Joint Task Force 639 for Operation

RESOLUTE. Defence also provides a Two Star officer as the Commander Joint Agency Task

Force, Operation SOVEREIGN BORDERS.

REGIONAL

Operation SOUTHERN INDIAN OCEAN

5.6 (U) The Australian Government accepted responsibility for search operations in the

Southern Indian Ocean on 17 March 2014. The Australian Transport Safety Bureau assumed

responsibility as the lead agency on 28 April 2014. No wreckage from MH370 has been

detected in the designated search area.

5.7 (U) The previous Government provided Defence with funding of $10.8 million in FY

2013-14. Costs in FY 2014-15 and 2015-16 were absorbed by Defence. Defence and

Australian Transport Safety Bureau have a Memorandum of Understanding for the provision

of Defence support during the recovery phase (to be activated in the event of the location of

MH370 wreckage).

5.8 (U) The initial search involved geospatial capabilities, 21 military aircraft and 19

ships, covering search areas of more than 4.5 million square kilometres. Civilian aircraft on

contract to the Australian Maritime Safety Authority also participated in the search.

S E C R E T A U S T E O

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S E C R E T A U S T E O

Chapter 5 – Operational Challenges

5.9 (U) The two contract vessels currently conducting the underwater search, Fugro

Equator and Fugro Discovery, are operating out of the Port of Fremantle and Henderson

where port costs have been waived by the Western Australian Government. China is

contributing an additional search vessel, Donghai Jiu 101, which commenced operations

early in 2016. Malaysia has contributed AUD $100m to the search operation as well as the

search vessel GO Phoenix from September 2014 to June 2015. Malaysia does not currently

provide any search assets however does contribute to the ongoing funding of the search.

5.10 (U) Currently, under Operation SOUTHERN INDIAN OCEAN, the ADF contributes

a Navy hydrographer to the Australian Transport and Safety Bureau and a linguist embarked

in the Chinese Donghai Jiu 101.

Operation GATEWAY

5.11 (U) Operation GATEWAY maritime surveillance patrols operate from Royal

Malaysian Air Force Base Butterworth. These patrols occur in the North East Indian Ocean,

Malacca Strait, Andaman Sea, Gulf of Thailand and cover the South China Sea.

5.12 (U) Operation GATEWAY contributes to the bilateral Defence relationship between

Australia and Malaysia. Australia seeks to enhance our cooperation with Malaysia through

maintaining the level of access to RMAF Butterworth to support efforts to maintain security

and stability in maritime South East Asia.

5.13 (U) In the five years between 2011 and 2015, a total of 30 Operation GATEWAY

deployments have been conducted. The number of Operation GATEWAY deployments

annually has increased from up to six in 2011 to up to eight in 2015.

5.14 (U) The reason for this increase is that operational demands for maritime surveillance

aircraft assigned to operations in the Middle East and to Operation RESOLUTE have

decreased, enabling the Royal Australian Air Force to slightly increase the number of

Operation GATEWAY deployments conducted back to more historic levels.

S33(a)(i), S33(a)(ii)

5.15 S33(a)(i), S33(a)(ii)

S33(a)(i), S33(a)(iii)

5.16 S33(a)(i), S33(a)(iii)

S33(a)(i), S33(a)(ii)

5.17 S33(a)(i), S33(a)(iii)

S33(a)(i), S33(a)(ii)

S E C R E T A U S T E O

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S E C R E T A U S T E O

Chapter 5 – Operational Challenges

5.18 S33(a)(i), S33(a)(ii)

S33(a)(i), S33(a)(iii)

5.19 S33(a)(i), S33(a)(ii)

S33(a)(i), S33(a)(ii)

Operation SOLANIA

5.20 (P) Operation SOLANIA was endorsed by the Australian Government of Australia in

February 1987 and was initially conducted as an RAAF only activity. Since early 2009, RAN

vessels operating in the SOLANIA Area of Operations also participate.

5.21 (U) The ADF currently conducts up to four two-week aircraft surveillance patrols in

support of Forum Fisheries Agency operations and Western and Central Pacific Fisheries

Commission conservation and management measures. ADF activities usually occur as part of

the Quadrilateral Defence Working Group quarterly operations with France, New Zealand

and the US and in cooperation with Pacific Patrol Boats operations which are all coordinated

by the Forum Fisheries Agency.

Operation RENDER SAFE

5.22 (U) Operation RENDER SAFE is the deployment of ADF Explosive Ordnance

Disposal capability to reduce the Explosive Remnants of War threat within the South West

Pacific, to foster goodwill, support bilateral relations and enhance Australia’s reputation with

the nations of the South West Pacific.

5.23 (U) Operation RENDER SAFE comprises both deliberately planned large scale

activity and short notice ad hoc requests for assistance generally in areas of the South-West

Pacific subject to heavy exposure to World War II ordnance. The large scale activity is held

biennially with regular participation by New Zealand, Canada, United Kingdom, USA,

France and the Solomon Islands Explosive Ordnance Disposal specialists. The ad hoc

assistance has historically been provided between one and three times per year.

MIDDLE EAST REGION: MAJOR OPERATIONS

Operation ACCORDION

S33(a)(ii)

5.24

S33(a)(ii)

S33(a)(ii)

5.25

S33(a)(ii)

S E C R E T A U S T E O

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S E C R E T A U S T E O

Chapter 5 – Operational Challenges

5.26

S33(a)(ii)

S33(a)(ii)

5.27 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

Operation HIGHROAD

5.28 (U) RESOLUTE Support Mission is a non-combat mission to Train, Advise and

Assist Afghan partners at the ministerial, institutional and operational levels across

Afghanistan.

5.29 (U) On 01 January 2015 the Afghan National Defense and Security Forces assumed

full responsibility for Afghanistan’s security with the support of the new NATO-led

RESOLUTE Support Mission, which involves 28 NATO countries and 14 operational

partners, including Australia.

5.30 (U) The Australian commitment to Operation HIGHROAD includes about 270

personnel predominantly based in Kabul and an annual contribution of US$100 million to the

sustainment of the Afghan National Defense and Security Forces.

5.31 (U) The US-Afghan Bilateral Security Arrangement provides the legal framework for

US troops remaining in Afghanistan post-2014. The NATO Status of Forces Agreement

provides the legal framework for NATO and its operational partners (including Australia) for

RESOLUTE Support Mission.

Operation MANITOU

5.32 (U) The Combined Maritime Forces is a 31 nation naval partnership that promotes

security, stability and prosperity across more than 3.2 million square miles of international

waters.

5.33 (U) The Australian contribution of up to 300 personnel is through a Major Fleet Unit

and a flexible contribution to the Combined Maritime Forces Headquarters staff in Bahrain.

HMAS Perth will deploy in June 2016 as the 63rd rotation of a RAN vessel to the Middle

East Region since the first Gulf War in 1990.

5.34 (U) Operation MANITOU contributes to Australia’s safe and open maritime access to

the region while fostering trade and commerce.

5.35 (U) Command of each Combined Task Force is rotated between Combined Maritime

Forces partner nations every four months. The sequencing of this rotation allows for

Australia to command Coalition Task Force 150 for a four month period, every two years.

Australia last commanded Coalition Task Force 150 in December 2015 and handed-over

command to the UK on 10 April 2016.

S E C R E T A U S T E O

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S E C R E T A U S T E O

Chapter 5 – Operational Challenges

Operation OKRA

5.36 (U) Australia’s contributions to Operation INHERENT RESOLVE follow formal

requests for assistance from the US and Iraqi Governments.

5.37 (U) The Australian contributions include an Air Task Group that conducts air

operations, including air-strikes, over Iraq and Syria, Advise and Assist and Building Partner

Capacity missions that provide support and training for the Iraqi Security Forces and

personnel embedded in Coalition Headquarters in Iraq and Kuwait.

5.38 (S) Approximately 710 personnel are deployed on Operation OKRA, comprising:


Air Task Group. About 240 personnel and up to eight (currently six) F/A-18

Hornets, one E-7A Wedgetail Airborne Early Warning and Control aircraft and

one KC-30A Tanker aircraft form the Air Task Group. S33(a)(ii)

S33(a)(ii)




Task Group Taji. About 300 ADF personnel and 106 New Zealand Defence

Force personnel form Task Group Taji which supports the Build Partner Capacity

mission at the Taji Military Complex about 25 km northwest of Baghdad.

Special Operations Task Group. About 80 Special Operations Task Group

personnel support the Advise and Assist mission at the Baghdad Diplomatic

Support Centre near the Baghdad International Airport as well as Al Taqqadum

and Al Alasad Air Base.

Embeds. About 30 ADF personnel are embedded in Coalition Headquarters in

Iraq.

GLOBAL: MINOR OPERATIONS

Operation MAZURKA

5.39 (S) Australia first contributed troops to the Multinational Force and Observers in 1982

and has maintained a continuous presence since 1992. The Australian contingent comprises

25 ADF members.

5.40 (U) The Multinational Force and Observers security situation has deteriorated due to

the ongoing conflict between Egyptian Security Forces and militant groups, particularly

Islamic State – Sinai. S33(a)(ii)

S33(a)(ii)

5.41 (U) Defence continues to monitor the security environment and threat situation in the

Sinai. There are ongoing improvements to force protection measures at Multinational Force

and Observers North Camp in northern Sinai. These improvements have been predominantly

provided by the United States. Australia is providing US$2 million to the Multinational Force

and Observers over three years from 2016-2018 to support the Mission’s force protection

improvements.

S E C R E T A U S T E O

42


S E C R E T A U S T E O

Chapter 5 – Operational Challenges

5.42

S47C

S47C

Operation ASLAN

5.43 (U) Australia has provided personnel to UN Mission since September 2011. There are

26 ADF personnel deployed to assist UN Mission.

5.44 (U) The ADF contingent is a mix of military liaison officers, those in national support

element roles, and two liaison officers working with a contingent of Japanese military

engineers.

5.45 S33(a)(iii)

S33(a)(iii)

5.46 Defence continues to monitor the situation closely to ensure that appropriate force

protection measures are employed for the security of ADF personnel.

Operation PALADIN

5.47 (U) UN Truce Supervision Organisation was established in 1948 to supervise the

truce agreed at the conclusion of the first Arab / Israeli War. Australia first contributed troops

to UNTSO in 1956. The Australian contingent comprises 12 ADF members.

5.48 (U) Of the 12 ADF members deployed with UN Truce Supervision Organisation,

three are based in Lebanon and nine in Israel. Previously five Australian observers were

employed on the Syrian-administered area of the Golan amongst other troop contributing

nations. However, as a result of the deteriorating security situation in Syria in 2014, all UN

Truce Supervision Organisation military observers relocated to the Israeli-administered side

of the Golan as a force protection measure.

5.49 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

Operation PALATE II (Advisors withdrawn June 2016)

5.50 (U) The ADF contributed two Lieutenant Colonel Military Advisors who provided

liaison between UN Assistance Mission in Afghanistan, the Resolute Support mission, and

Afghan authorities. They were located in the UN Regional Office in Kabul.

5.51

S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

5.52 S33(a)(ii), S33(a)(iii)

S33(a)(ii), S33(a)(iii)

S E C R E T A U S T E O

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S E C R E T A U S T E O

S47C

Chapter 5 – Operational Challenges

Intentionally blank

S E C R E T A U S T E O

S47C

44


S E C R E T A U S T EO

Chapter 6 – 2016 Defence White Paper

Chapter 6

2016 Defence White Paper

Key Issues



(U) Defence has promulgated subordinate guidance throughout the Department and

implementing in line with the two year implementation strategy.

(U) Defence has put in place a two-year White Paper Implementation Strategy to monitor

progress against key 2016 Defence White Paper initiatives.

Overview

6.1 (U) The previous Government supported the plans in the 2016 Defence White Paper

with significant investment in Defence including:



growth in Defence spending to two per cent of Australia’s Gross Domestic

Product by 2020-21; and

over the decade to 2025-26, an increase of $29.9 billion to Defence and

approximately $195 billion of new investment in Defence capabilities.

6.2 (U) Defence is now focused on implementing the plans set out in the 2016 Defence

White Paper. The two year Implementation Strategy is aligned with the First Principles

Review reforms (refer to Chapter 9).

6.3 (U) The previous Minister for Defence agreed to meet with the Defence Committee

every six months to consider the implementation of the 2016 Defence White Paper within

Defence.

6.4 (U) Defence has put in place a two-year White Paper Implementation Strategy to

monitor progress against key 2016 Defence White Paper initiatives and report to government

on the findings. The first report is due to the Government S47C

Defence Policy Settings

6.5 (U) In the 2016 Defence White Paper, the previous Government directed Defence to

play a more active role in supporting Indo-Pacific security and our interest in a stable, rulesbased

global order. Defence would therefore need to be able to:




deter and defeat threats to Australia and its national interests;

make effective military contributions to the security and stability of maritime

South East Asia and the South Pacific; and

contribute military capabilities to coalition operations that support Australia’s

interest in a stable and rules-based global order.

The Defence Workforce

6.6 (U) The 2016 Defence White Paper outlines a plan to increase the ADF permanent

workforce to around 62,400 by 2025-26 with more personnel placed in air, land and sea

combat roles, as well as intelligence, cyber operations and enabling capabilities.

S E C R E T A U S T EO

45


S E C R E T A U S T EO

Chapter 6 – 2016 Defence White Paper

6.7 (U) The Defence Australian Public Service (APS) workforce will be rebalanced to

accommodate around 1,200 new positions in critical intelligence, force structure, capability,

policy and operations areas. These positions will be included in a future APS workforce of

around 18,200 down from around 22,300 in June 2012 (see Annex H).

6.8 (U) Defence will release a 10-year Strategic Workforce Plan S47C that will set

out how Defence will attract, retain and develop its people.

Industry and Innovation

6.9 (U) The 2016 Defence White Paper, the Defence Industry Policy Statement, and the

Integrated Investment Program together provide a policy framework for Australian industry

that:



recognises the key role of Australian industry in research, innovation and

development; and

focuses on maximising the defence capability necessary to achieve the previous

government’s defence strategy as set out in the 2016 Defence White Paper.

6.10 (U) The previous government committed to investing around $1.6 billion over the

decade to 2025-26 in the following Defence industry initiatives:




A Centre for Defence Industry Capability – the Centre’s purpose is to promote

defence industry competitiveness, guide industry priorities and connect Defence

capability with innovation. The Centre will be a collaboration between the private

sector, Defence and AusIndustry (within the Department of Industry, Innovation

and Science) and funded at around $230 million dollars over the decade to 2025-

26.

o The Centre will be headquartered in Adelaide.

o A number of existing industry programs will be aligned, allocated and/or

subsumed into the Centre. The timing for this to occur is subject to the

detailed design of the Centre currently underway.

o The Centre will be led by an advisory board, co-chaired by a representative

from the private sector and from Defence.

The Next Generation Technologies Fund will receive $730 million dollars of new

funding for research into emerging technologies critical to defence and national

security.

A ‘virtual’ Defence Innovation Hub, funded at $640 million dollars over the

decade to 2025-26, brings together Defence’s innovation programs and enable

collaboration throughout the Defence capability life cycle.

6.11 (U) Defence is also integrating industry as a fundamental input to capability through

the new Capability Life Cycle.

S E C R E T A U S T EO

46


International Engagement

S E C R E T A U S T EO

Chapter 6 – 2016 Defence White Paper

6.12 (U) International defence engagement has been expanded and has been prioritised and

funded as a core Defence function. The alliance with the US remains fundamental to security

and is a central feature of Australia’s defence strategy.

6.13 (U) The 2016 Defence White Paper details the expanded scope of international

engagement which includes:




hosting rotations of US forces under the US Force Posture Initiatives which will

enhance our ability to jointly train and exercise, including with regional partners;

an increase in bilateral and multilateral training and exercises in South East Asia,

North East Asia and the South Pacific;

an increase in investment in Defence Cooperation Programs in the South Pacific

to build the capacity of Pacific island countries to provide for their own security

and improve the professionalisation of security forces; and

doubling the training of regional military forces in Australia over the next 15

years.

Future Force Structure Investment

6.14 (U) The previous government committed to Defence capability expenditure to 2025-

26 of (Annex B provides more detail):






a significant naval modernisation and regeneration program, with around 25 per

cent allocated to maritime and anti-submarine warfare capabilities;

remediation of previous underinvestment and recognition of the importance of

enabling capabilities, with around 25 per cent allocated to enabling capabilities;

around 9 per cent to enhanced intelligence, surveillance and reconnaissance,

space, electronic warfare, and in cyber capabilities;

around 6 per cent to air and sea lift capabilities to help overcome the substantial

distances over which the ADF must operate; and

around 17 per cent to strike and air combat capabilities; and around 18 per cent to

enhancements to land combat and amphibious warfare capabilities.

Integrated Investment Program

6.15 (U) From financial year 2016-17 to 2025-26 (the decade), the Defence portfolio has

allocated approximately S47C to fund investment initiatives in the Integrated

Investment Program in support of the future force. The delivery of many investments made in

the decade will extend well beyond this decade; for instance future submarines and frigates.

6.16 (U) Within the Defence portfolio, S47C

S47C

6.17 (U) The Integrated Investment Program includes all major capital investments and

will allow a portfolio management approach to Defence investment.

S E C R E T A U S T EO

47


S E C R E T A U S T EO

Chapter 6 – 2016 Defence White Paper

35,000

Integrated Investment Program Decade Funding Profiles

S47C

30,000

25,000

Millions ($)

20,000

15,000

10,000

5,000

Approved Capital Program

0

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

Approved Capital Program Estate Program ICT Program Unapproved Capital Program

IIP Investment Over the Foward Estimates as a percentage of Defence Budget

S47C

Unapproved Capital Program Estate Program ICT Program Approved Capital Program Remaining Defence budget

S E C R E T A U S T EO

48


S E C R E T A U S T EO

Chapter 6 – 2016 Defence White Paper

IIP Investment Over the Decade as a percentage of Defence Budget

S47C

Unapproved Capital Program Estate Program ICT Program Approved Capital Program Remaining Defence budget

S E C R E T A U S T EO

49


S E C R E T A U S T EO

S47C

Chapter 6 – 2016 Defence White Paper

Intentionally blank

S E C R E T A U S T EO

S47C

50


SECRET AUSTEO

Chapter 7 – Shipbuilding

Chapter 7

Shipbuilding

Key Facts

(U) The Government has committed to the continuous build of naval vessels in Australia.

(FOUO) s47C

s47C




(FOUO) Defence is preparing a Naval Shipbuilding Plan for government consideration s47

s47C

C

(U) Defence will take a programmatic approach to naval vessel construction through a

managed production drumbeat.

(FOUO) s47C

s47C

7.1 (FOUO) The Government committed to a continuous naval vessel construction

program in Australia based on construction of major surface warships and submarines in

Adelaide (Osborne) and minor war vessels in Perth (Henderson). The continuous

shipbuilding program will be based on the principles outlined by the RAND Corporation 2015

report – Australia’s Naval Shipbuilding Enterprise, preparing for the 21st Century. RAND’s

analysis showed that the build premium for Australian naval combatant ships was 30-40%

over US shipbuilding. The key challenge for the success of the three domestic naval

construction projects will be to reduce this build premium.

7.2 (FOUO) s47C

s47C

s47C

7.3 (FOUO) We will present a draft of the Shipbuilding Plan

7.4 (FOUO) s47C

s47C

S E C R E T A U S T E O

51


SECRET AUSTEO

Chapter 7 – Shipbuilding

7.5 (FOUO) In April 2016, the Government announced that a strategic review of the

workforce, skills and infrastructure needed to deliver continuous shipbuilding would be

undertaken as part of the Naval Shipbuilding Plan.

s47C

s47C

7.6 s47C, s34

s47C, s34

Shipbuilding Projects

7.7 (U) Future Submarines – SEA 1000 on 26 April 2016, the Government announced

the selection of DCNS as the preferred international partner for the Future Submarine

Program, subject to further discussions on key commercial issues.

s47C

s47C

7.8

s47C

s47C

7.9

s47C

s47C

7.10 s47C, s34

s47C, s34

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SECRET AUSTEO

Chapter 7 – Shipbuilding

7.11 (FOUO) Future Frigates – SEA 5000 Phase 1 is currently in a competitive

evaluation process with three ship designers following Government Gate 1 Approval. Nine

Future Frigates are to be built in Adelaide, commencing in 2020. The designers being

progressed are Fincantieri with the Italian configuration of the FREMM, Navantia with a

redesigned F-100, and BAE Systems with the Type 26. s47C, s47E(d)

s47C, s47E(d)

7.12 (FOUO) Offshore Patrol Vessels – SEA 1180 Phase 1 is currently in a risk reduction

design study phase of a competitive evaluation process with three ship designers following

Government Gate 1 Approval on 17 April 2016. The project will build 12 Offshore Patrol

Vessels with construction commencing in 2018, initially in Adelaide, and then transferred to

Western Australia in 2020. Risk reduction design study contracts with Damen of the

Netherlands, Lurssen and Fassmer of Germany were signed on 6 May 2016. s47C, s47E(d)

s47C, s47E(d)

7.13 (FOUO) Pacific Patrol Boat – SEA 3036 Phase 1 will procure 19 Patrol Boats to

replace the Pacific Patrol Boats currently operated by Australia’s neighbouring Pacific Island

countries. s47C, s47E(d)

s47C, s47E(d)

s47C, s47E(d)

Vessels will be built at Henderson,

Western Australia, s47C, s47E(d)

s47C, s47E(d)

7.14 (FOUO) Air Warfare Destroyer (AWD) – SEA 4000 will deliver three Hobart Class

destroyers and their support systems under an alliance-based contracting arrangement

between ASC as the shipbuilder, Raytheon Australia as the combat system systems engineer,

s47C, s47E(d)

and the Government.

s47C, s47E(d)

7.15 (FOUO) Navy Support Ships – SEA 1654 Phase 3 Acquisition and support contracts

were signed with Navantia on 5 May 2016 s47C, s47E(d)

s47C, s47E(d)

Sustainment will be done in Australia. Initial Operating Capability for these vessels is

forecast to be achieved in 2020.

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7.16 (P) Collins Sustainment/Refit In May 2016, HMAS Farncomb completed the first

s47C,

two-year full cycle docking implemented under the Collins Transformation Program. s47E(d)

s47C, s47E(d)

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Chapter 8

Defence Capabilities

Key Issues





(U) Defence capabilities comprise 40 capability programs which are managed across six

Capability Streams. Each program delivers multiple projects, resulting in Defence

capability.

(U) In light of the First Principles Review and the 2016 Defence White Paper, Defence

has developed a more comprehensive process to design the future ADF. This involves

developing and testing operating concepts, force structures, and capability options, for

responding to emerging threats and opportunities.

(U) Defence has a well-practised mechanism to manage the ADF’s capability

preparedness and this is regularly reviewed and reported to government. Based on current

assessments, Defence is able to meet its current operational commitments and has residual

capacity, albeit limited in some areas, to conduct additional tasking.

(U) A Fuel Network Review will assess the operational resilience of the Defence fuel

supply chain and further minimise the impact of any potential national interruptions.

Overview of Defence Capability Management

8.1 (U) The Department of Defence consists of the three Services and 8 Groups, who

operate within the One Defence business model. At its centre sits Defence capability which

seeks to develop a force structure appropriately prepared for a range of military and support

operations in accordance with government direction. The One Defence business model has

three key features: A strong strategic centre; an end-to-end approach for capability

development with Capability Managers assigned clear accountabilities; and Enablers that are

integrated and customer-centric.

Overview Defence Force Structure

8.2 (P) Joint Commands under Vice Chief of the Defence Force (VCDF) include:




Joint Logistics Command;

Joint Health Command; and

The Australian Defence College.

8.3 (P) Joint capabilities include:



Joint Electronic Warfare, Information Activities, Operational-level Cyber, Joint

Fires, Joint Command and Control and Special Programs (VCDF Group); and

the Joint Counter Improvised Threats Task Force (VCDF Group).

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8.4 (P) Several joint capabilities that cross Group or Service boundaries are managed

across Defence by several offices and agencies including:







the Joint Counter Improvised Threats Task Force (VCDF Group);

the Joint Information Environment Warfare Branch (VCDF Group);

the Capability Integration Test and Evaluation Branch (VCDF Group);

the C4, Information and Training Support Branch (VCDF Group);

the Defence Space Coordinating Office (Air Force); and

the Australian Defence Simulation and Training Centre Headquarters Joint

Operations Command.

8.5 (P) Joint exercise support is provided by the Joint Collective Training Capability,

which provides distributed simulation services in preparation for operations as well as high

end war-fighting exercises such as TALISMAN SABRE.

8.6 (P) Joint capabilities are coordinated for the VCDF as the Joint Capability Authority

and Capability Manager by the Force Design and Joint Capability Management and

Integration Divisions as part of the end-to-end Capability Life Cycle. This includes:




Force Design: Joint Concepts, Lessons and Doctrine development; Joint

Experimentation; Defence Preparedness; Force Options Testing, Force Structure

Planning and Prioritisation.

Joint Capability Management: Joint Operational-level Cyber; Joint Information

Activities; Joint Electronic Warfare; Special Programs; Joint Command,

Communications and Information Systems, Joint Fires and Battle Management;

and, Joint Training Support and Simulation.

Joint Integration: Capability Integration, Concepts and Assurance; Joint Test and

Evaluation; Defence Test and Evaluation Plans, Policy and Governance; and,

Command, Control, Communications, Computers, Intelligence, Surveillance and

Reconnaissance Design.

8.7 (P) VCDF also manages joint aspects of cadets and reserves, as well as the Australian

Civil-Military Centre.

8.8 (P) Operational command and control of the Defence Force is exercised through Head

Quarters Joint Operations Command, supported by Headquarters Northern Command, 1st

Joint Movements Group, and joint task forces when raised.

Naval Forces

8.9 (U) The naval force consists of:


Surface Combatant Group consisting of three Air Defence Frigates and eight

General Purpose Frigates. The first of three Air Warfare Destroyers are due for

delivery in Q4 2017. Surface combatants provide capabilities that contribute to Air

Defence, Anti-Submarine Warfare and Anti Surface Warfare;

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Minor Combatant Group consisting of 13 Armidale Class Patrol Boats, two Cape

Class Patrol Boats (on loan from Australian Border Force) and six coastal mine

hunters (two at extended readiness). Minor combatants provide capabilities that

contribute to Sea Control, Border Protection and Mine Warfare;

Submarine Group consisting of six Collins class submarines. Submarines provide

capabilities that contribute to Anti-Submarine Warfare, Intelligence, Surveillance

and Reconnaissance and Anti-Surface Warfare;

Aviation Group consisting of 30 operational aircraft and 24 aircraft in preservation

or acceptance process;

seven operational S-70B-2 Seahawk helicopters. An additional nine aircraft are

currently in preservation awaiting disposal. S-70B-2 helicopters provide

capabilities for anti-submarine warfare;

11 MH-60R Seahawk helicopters. An additional 10 are in preservation or

undergoing acceptance checks. Three further aircraft are awaiting delivery to make

a total of 24 Maritime Combat Helicopters. MH-60R helicopters provide

capabilities for Anti-Submarine and Anti-Surface Warfare;

six MRH-90 helicopters. MRH-90 provide capabilities for utility, medical

evacuation and fleet logistics support;

seven AS350BA Squirrel helicopters. An additional 6 are in preservation.

AS350BA provide aircrew training;

three leased Bell 429 helicopters for the retention and motivation of aviators

awaiting operational aircraft conversions; and

one laser airborne depth sounder aircraft for hydrographic support.

Amphibious and Afloat Support Group consisting of two Canberra Class

Amphibious Ships, one Heavy Landing Ship, two replenishment oilers, and ADV

Ocean Protector. In addition, there are 12 Landing Craft. Amphibious and Afloat

platforms provide capabilities that contribute to amphibious warfare and

operational support;

nine maritime teams (two Clearance Diving Teams, one Mine Warfare Team, two

deployable geospatial support teams, and four mobile meteorological and

oceanographic teams); and

nine elements in the Hydrographic Force (two Leeuwin Class survey ships, four

survey motor launches, chart production office, and meteorological and

oceanographic centres). Hydrographic platforms provide capabilities to support an

understanding of the maritime operating environment and the data requirements of

the Navigation Act.

8.10 Management of the Navy is coordinated between Strategic Command (Canberra) and

Fleet Command (Sydney). Strategic Command supports Chief of Navy in the leadership and

management of Navy at the strategic level and Fleet Command is responsible for management

of the operational naval force.

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Land Forces

8.11 (U) Land forces comprise:


















Headquarters 1st Division/Deployable Joint Force Headquarters is a scalable two

star Deployable Joint Force Headquarters able to command major Joint Task

Forces with some supplementation of key staff from other services. It includes:

dedicated signals unit that supports deployed command and control of the

headquarters;

unit based at Butterworth, Malaysia that hosts company sized rotations for training

activities within the Malaysian region;

Combat Training Centre responsible for assessing the training standard of forces

including those preparing for operational deployment; and

unit that supports the preparation of individuals and groups for operational

deployment.

Forces Command consists of two divisions (one full time, with three multi-role

combat brigades and three enabling brigades; one part time, with six combat

brigades);

Within the three fulltime multi-role combat brigades the following capabilities

exist:

three deployable Brigade Headquarters;

three Armoured Cavalry Regiments each comprising a Tank, Cavalry and

Armoured Personnel Carrier Squadron. These units continue to transition to their

new structures. There are currently only a total of two Tank Squadrons available;

three Field Artillery Regiments consisting of medium towed artillery. Each

Regiment has two identical Battery’s and have commenced developing the third;

six Standard Infantry Battalions. A seventh battalion is currently trialling force

structures for amphibious operations;

three combat engineer regiments; and

three combat service support battalions and three combat signals regiments.

Within the three enabling brigades the following capabilities exist:

6 Brigade consists of an Intelligence Battalion, an Unmanned Aerial System

Regiment, an Air Land Integration Regiment, an Engineer Support Regiment and

an Electronic Warfare Regiment.

16 Brigade consists of three Aviation Regiments of 55 aircraft (seven Chinook

CH47F helicopters, 14 Multi Role Helicopter MRH-90 Taipan helicopters; note

the CH47 fleet will expand to 10 by mid-June 2016 and the MRH fleet will grow

to 18 by the end of 2016. There are 17 Tiger Armed Reconnaissance Helicopters

and 17 S70 Black Hawk helicopters).

17 Brigade consists of three Force Support Battalions (one Reserve), a Military

Police Battalion, and three medical battalions (including one Reserve unit for

specialist medical support).

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Air Forces

Second Division is a part-time (Reserve) division comprising six combat Brigades

and three Regional Force Surveillance units.

Special Forces (a headquarters, Special Air Service Regiment, two commando

regiments, a special operations engineer regiment and a Special Operations

Logistics Element).

8.12 (U) Air Forces comprise:







Air Combat Group comprising 71 F/A-18A/B Hornet aircraft, 24 F/A-18F Super

Hornet aircraft and 33 Hawk 127 training aircraft;

Surveillance Reconnaissance Group comprising 15 AP-3C Orion aircraft, six E-7A

Wedgetail aircraft and various land-based surveillance and reconnaissance assets;

Air Mobility Group comprising eight C-17A Globemaster III aircraft, 12 C-130J

Hercules aircraft, five KC-30A Multi-Role Tanker Transport aircraft, two B737

Boeing Business Jet aircraft, three CL-604 Challenger aircraft and eight B300

King Air aircraft;

Air Force Training Group comprising 59 PC-9/A aircraft, eight B300 King Air

aircraft and provision of the majority of Air Force training and education

functions;

Air Warfare Centre which provides discrete capabilities for operations and

exercises to deliver integrated air war fighting solutions; and

Combat Support Group comprising two expeditionary combat support wings and a

health services wing.

International Engagement Capabilities

8.13 (FOUO) Defence maintains an international engagement network of Defence Attachés

and Advisers resident in 35 countries (this includes representatives at UN New York, NATO

and the African Union). In addition, we have Defence Cooperation Program staff in a further

eight countries as Maritime Surveillance Advisers in support of the Pacific Patrol Boat

Program. All of these positions engage with host governments to increase our access,

influence, presence and awareness. They also help facilitate the development of counterpart

relationships between senior leaders as well as develop joint training and development

opportunities.

8.14 (FOUO) In South East Asia, the Pacific and in part of the Middle East and South Asia

Defence Attachés also administer the Defence Cooperation Program. This program assists in

developing the professionalism and capability of regional defence forces and assists Australia

to be the preferred Defence and security partner. This is done through joint exercises, training

opportunities for foreign students at Australian training institutions and modest capability

development.

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Chapter 8 – Defence Capabilities

8.15 (FOUO) In addition to the overseas network and training program, a significant

international engagement capability is generated through the overseas operational and

exercise footprint and presence. Exercises and operations provide an extensive range of

opportunities to develop counterpart relationships, influence the professionalism of partners,

and contribute to the development of partners’ capabilities in parallel with the development of

Defence’s capabilities and preparedness.

s7

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s7

Defence Force Design

8.30 (U) The Force Structure Review was conducted during 2014-15 to support the

development of the 2016 Defence White Paper and its associated 2016 Integrated Investment

Program and 2016 Defence Industry Policy Statement.

8.31 (FOUO) To manage ongoing development of Defence’s force structure in line with

the First Principles Review and the 2016 Defence White Paper, Defence has established a

Force Design Division within the Vice Chief of the Defence Force Group that is charged with

translating strategic policy into defensible future force structures.

8.32 (FOUO) The Force Design Division will ensure that proposals submitted to the

Government for consideration are consistent with the Government’s requirements for the

future ADF. It will do this by developing and testing operating concepts and capability

options for responding to emerging threats, gaps risks, issues and opportunities, and, as a

result, design broad, long-term options for the appropriate force structure.

8.33 (U) TheVice Chief of the Defence Force Group will develop the bi-annual report on

the Integrated Investment Program for the Minister for Defence, and the annual report for the

Government.

ADF Preparedness

8.34 (U) The Australian Government expects that Defence will be able to defend Australia

and protect its security and prosperity. As a result, Defence must prepare its forces to meet

this expectation. Preparedness is the “sustainable capacity of Defence to conduct operations

and respond to forecast events”.

8.35 (U) In preparing its forces, Defence seeks to balance the availability of appropriate

Defence capabilities against the range of potential contingencies extending from the more

likely, shorter term tasks to the less likely but more demanding high-end warfighting tasks in

defence of Australia. Maintaining preparedness levels accounts for the personnel and

operating costs associated with keeping those capabilities at defined readiness levels and

provisioned to sustain operations for a prescribed period of time.

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8.36 (U) Maintaining a large proportion of the ADF at high readiness levels would reduce

Australia’s strategic risk, but is not desirable or affordable in terms of the foreseeable

strategic environment, current fiscal circumstances and the stress placed on people,

equipment, supplies and facilities. Conversely, setting preparedness levels too low would

result in increased strategic risk and difficulty in providing a timely response to government

tasking.

8.37 (U) Defence uses a risk based approach to preparedness to ensure that Defence’s

capabilities, capacity and finite resources are able to meet current and short-term

requirements, while maintaining essential skills, knowledge and capability as a foundation for

mobilisation should strategic circumstances deteriorate.

8.38 (U) Preparedness planning therefore focuses on ensuring Defence is appropriately

postured to meet the following defence preparedness requirements:









understanding and shaping Australia’s strategic environment;

conducting combined joint combat operations;

conducting peace and stability operations;

providing defence support to whole-of-government domestic security;

providing humanitarian assistance and disaster relief at home and overseas;

providing specialist support at home and overseas;

evacuating non-combatants; and

undertaking recovery operations.

8.39 (FOUO) Defence preparedness is assessed against these requirements and

preparedness guidance is reviewed and amended quarterly.

Updates and Challenges

8.40 (FOUO) Defence reports quarterly to government, through the Preparedness and

Concurrency Ministerial Advice, on issues relating to Defence’s ability to prosecute planned

operations, and its preparedness to meet future contingencies. The ministerial advice

identifies any concurrency pressures and specific joint force capabilities which are under

stress. In addition, if a significant preparedness issue arises which will have an impact on

government decision making, the Government will be informed by a single issue ministerial

advice.

8.41 s33(a)(ii), s47C, s47E(d)

s33(a)(ii), s47C, s47E(d)

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8.42 In the near term, the main factors affecting demand for Defence operations are:

s33(a)(ii), s47C



the continued high operational tempo associated with border surveillance and

protection activities.

s33(a)(ii), s47C

8.43

s33(a)(ii), s47C

8.44 (FOUO) Table 1 overleaf provides a representation of the planned preparedness

posture from the CDF’s preparedness directive against the strategic priorities identified in the

most recent quarterly strategic review. It provides guidance on the nature of responses that

can be made against identified strategic priorities, and the timeframes in which such response

can be expected (based on the readiness notice of capabilities)

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Table 1 – Preparedness Posture by Priority (DPR – Defence Preparedness

Requirement) covering the period June 2016 to June 2018.

s33(a)(ii), s47C

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s33(a)(ii), s47C

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Capability Streams

8.45 (U) Figure 1 (below) demonstrates the inter-relationship between capability streams,

the stream lead for each stream and the associated Capability Manager. The Capability

Manager is shown on the left and the capability stream, and senior stakeholder is shown

across the top.

Figure 1 Capability Streams and Capability Managers

Intelligence, Surveillance and Reconnaissance, Space, Electronic Warfare and Cyber

Security

8.46 (U) Joint Intelligence, Surveillance and Reconnaissance and Electronic Warfare.

This includes $1-$2 billion in upgrades to the Vigilaire air surveillance system, and Jindalee

Operational Radar Network plus s47C, s47E(d)

s47C, s47E(d)

8.47 (U) Air and Space Awareness.

s47C, s47E(d)

s47C, s47E(d)

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Air and Sea Lift

8.48 (U) Battlefield Aviation. This includes $830 million already approved for the

Battlefield Air Lift Replacement, s47C, s47E(d)

s47C, s47E(d)

and $380 million approved for the C-27J battlefield

air lift facilities.

8.49 (U) Air Mobility. This includes $700 million already approved for two additional KC-

30A Air to Air Refuelling aircraft and $500 million already approved for two additional C-

17A aircraft.

Land Combat and Amphibious Warfare

8.50 (U) Combat Vehicles. s47C, s47E(d)

s47C, s47E(d)

s47C, s47E(d)

approved for Medium & Heavy Vehicles and trailers.

8.51 (U) Soldier Systems.

s47C, s47E(d)

s47C, s47E(d)

for Tranche 1 of the Battlefield Communication System.

Strike and Air Combat

8.52 (U) Integrated Air and Missile Defence. s47C, s47E(d)

s47C, s47E(d)

and $3.3 billion that has already been

and $1.2 billion already approved

8.53 (U) Air Combat. This includes $15.3 billion already approved for the F-35A Joint

Strike Fighter, $1.4 billion already approved for F-35A Joint Strike Fighter Facilities in

Townsville, Queensland and Tindal, Northern Territory s47C, s47E(d)

s47C, s47E(d)

Maritime Operations and Anti-Submarine Warfare Forces

8.54 (U) Major Surface Combatants. This includes $9.1 billion already approved for

s47C, s47E(d)

Hobart Class Air Warfare Destroyers and

8.55 (U) Submarines. This includes $50 billion already approved for the Future Submarine

Program.

8.56 (U) Maritime Patrol and Response. This includes $4.8 billion already approved for the

P-8A Maritime Surveillance and Response aircraft.

Key Enablers

8.57 (U) Enterprise ICT. s47C, s47E(d)

s47C, s47E(d)

8.58 (U) Training Support and Simulation. This includes $1.2 billion for Pilot Training

Systems already approved, s47C, s47E(d)

s47C, s47E(d)

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Fuel Security

8.59 (U) The 2016 Defence White Paper identified increased investment in vital supporting

and enabling elements that enable effective operations over a sustained period. This includes

fuel.

8.60 s47C, s47E(d)

s47C, s47E(d)

8.61 (FOUO) Defence’s Commander Joint Logistics has initiated a Fuel Network Review

to assess the resilience of each key Defence fuel installation and provide detailed options to

enhance resilience, utilising industry and other initiatives, building on the preliminary fuel

cost assurance work undertaken in the Force Structure Review. The Fuel Network Review

will be concluded by s47C

s47C

8.62 s33(a)(ii)

s33(a)(ii)

8.63

s33(a)(ii)

s33(a)(ii)

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Chapter 9 – First Principles Review

Chapter 9

First Principles Review

Key Issues



(U) The First Principles Review focuses on ensuring Defence is fit for purpose and can

deliver on the plans of the 2016 Defence White Paper.

(U) Defence is one year into implementing the First Principles Review and has

implemented 36 of the 75 recommendations.

Overview

9.1 (U) The First Principles Review of Defence was commissioned by the then Minister

for Defence, Senator the Hon David Johnston, in August 2014 following a 2013 election

commitment.

9.2 (U) The Review found a proliferation of structures, processes and systems with

unclear accountabilities, which in turn cause institutionalised waste, delayed decisions,

flawed execution, duplication, over-escalation of issues for discussion and low engagement

levels amongst employees in parts of the organisation.

9.3 (U) The focus of the Review was on ensuring that Defence is fit for purpose, is able to

respond to future challenges, and deliver against its outputs with the minimum resources

necessary.

9.4 (U) The Review recommended substantial change across Defence to ensure it can

deliver on the plans in the 2016 Defence White Paper. The previous government agreed, or

agreed in principle, to 75 of the 76 recommendations.

9.5 (U) Further information can be found on the First Principles Review in Annex C.

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Chapter 10 – Accountability and governance

Chapter 10

Accountability and governance in Defence

Key Issues



(U) Defence is led by a diarchy, the term used for the joint leadership of Defence by the

Secretary of Defence and the Chief of the Defence Force (CDF), under the general

control of the Minister for Defence.

(U) Defence accountability and governance processes are undergoing significant reform

as part of the First Principles Review.

Portfolio Responsibilities of the Minister

10.1 (U) As Minister for Defence you are responsible to Parliament for all the agencies and

bodies within the Defence portfolio. A full list of these agencies and bodies is at Annex D.

Authority of the Minister for Defence

10.2 (U) You exercise authority over the Department of Defence and the ADF through a

combination of legislative and administrative arrangements. Section 57 of the Public Service

Act 1999 addresses the relationship between the Secretary and the Minister and provides that

the Secretary of a Department is responsible, under his or her Minister, for managing the

Department and for advice to the Minister in respect of matters relating to the Department.

The Secretary is the principal official policy adviser to the Minister and is also the top level

manager for delivering government programs and outcomes in your portfolio.

Ministerial Authorisations

10.3

s7

s7

10.4

s7

s7

10.5

s7

s7

The Diarchy

10.6 (U) The diarchy, which is supported by legislative and administrative arrangements,

encompasses the individual and shared accountabilities of the Secretary and the CDF.

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10.7 U) The respective roles, responsibilities and accountabilities of the Secretary and CDF

are set out in a directive issued by the Minister under section 8 of the Defence Act 1903. The

most recent directive was made on 30 June 2015 and aligns with the recommendations from

the First Principles Review and is at Annex E

10.8 (U) Within the diarchy:



The role of the CDF is to command the Australian Defence Force (ADF) and be

the principal adviser to the Minister on military matters, including operations.

The role of the Secretary is that of the principal civilian adviser to the Minister.

The Secretary has all the rights, duties and powers of a Secretary under the Public

Service Act 1999 and is responsible for the Department and ADF under the Public

Governance, Performance and Accountability Act 2013. The Secretary is

responsible for advising you on policy and departmental issues, and matters

relating to the stewardship of Defence resources.

10.9 (U) It should be noted that while section 68 of the Constitution provides that the

Governor-General has “Command-In-Chief” of the ADF, this function of the Governor-

General has always been recognised as primarily titular in nature and lacking any substantive

powers of command or direction. In addition, any powers in Defence legislation that vest

specific powers with the Governor-General must be exercised under ministerial advice.

Legislative Arrangements and First Principles

10.10 (U) As a result of the First Principles Review, the Defence Legislation Amendment

(First Principles) Act 2015, which came into effect on 1 July 2016, amends the Defence Act

1903 to reflect the recommendations of the First Principles Review to create a stronger

strategic centre. The changes have little effect on the diarchy, but have altered the command

arrangements of the CDF, Vice Chief of the Defence Force and Service Chiefs in order to

create ‘One Defence’ and emphasise the importance of the joint force.

10.11 (U) In broad terms, the new Defence Act:







continues to provide that the Minister has the “general control and administration

of the ADF’ (section 8);

clarifies that the CDF has full command of the ADF and is to advise the Minister

on matters relating to the command of the ADF (section 9);

confirms that the Secretary and the CDF have joint administration of the Defence

Force;

continues to vest the administration of the ADF jointly with the Secretary and the

CDF except with respect to matters falling within the command of the ADF or any

other matter specified by the Minister (section 10);

continues to provide for the Secretary and CDF to issue Defence Instructions in

relation to the administration of the ADF (section 11); and

explicitly recognises the Vice Chief of the Defence Force as a true deputy of the

CDF and ensures that Vice Chief of the Defence Force has command and

administrative responsibilities subject to the direction of CDF.

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Defence Structure

10.12 (U) The Associate Secretary is responsible for integrating the corporate enabling

functions of Defence to deliver more effective and efficient outcomes, with a focus on

integrated service delivery. The Associate Secretary manages the corporate planning and

enterprise performance monitoring system on behalf of the Secretary and the CDF.

10.13 (U) The Vice Chief is responsible for the implementation of the streamlined capability

development and delivery process, designing and developing Defence Joint Capability,

delivering military enablers and managing the Defence Preparedness Management system.

10.14 (U) Navy, Army and Air Force, led by their respective Chiefs of Service, are

responsible for raising, training and sustaining forces.

10.15 The three Defence intelligence agencies – the Australian Signals Directorate, the

Defence Intelligence Organisation and the Australian Geospatial–Intelligence Organisation

report to the Deputy Secretary, Strategic Policy and Intelligence Group.

10.16 (U) In addition, Defence comprises eight Groups:









(U) Joint Operations Command, which plans, controls and conducts military

campaigns, operations, joint exercises and other activities in order to meet

Government direction.

(U) Strategic Policy and Intelligence Group, which delivers high quality advice to

Government, the Secretary and Chief of the Defence Force, and provides

Defence’s intelligence capability for the ADF and national agencies.

(U) Chief Finance Officer Group, which is responsible for enterprise resource

planning and budget management.

(U) Chief Information Officer Group, which delivers a secure and integrated

information environment to support Defence business and military operations.

(U) Capability Acquisition and Sustainment Group, which purchases and

maintains military equipment and supplies in the quantities and to the service

levels that are required by Defence and approved by Government.

(U) Defence Science and Technology Group, which delivers science and

technology support for Defence capability and national security.

(U) Estate and Infrastructure Group, which delivers integrated services to support

Defence people, equipment and systems, including base support for the Australian

Defence Force.

(U) Defence People Group, which delivers the people capability required to

operate and support Defence equipment and systems, and to manage the business

of Defence.

10.17 (U) Each Group and Service has a role in developing and enabling the capability

required by Defence to achieve government-directed outcomes.

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S E C R E T A U S T EO

Chapter 10 – Accountability and governance

Governance

10.18 (U) In line with the First Principles Review, the establishment of a ‘strategic centre’

in Defence to strengthen accountability and top-level decision-making is now underway with

a new set of governance and performance structures. These new governance arrangements are

about providing clear direction, monitoring performance in delivering on government

requirements and increasing the transparency of decision-making and reporting.

10.19 (U) The Defence Committee, chaired by the Secretary, is the primary decision-making

committee in Defence. It has two subsidiary committees. The Enterprise Business Committee

(chaired by the Associate Secretary) is responsible for monitoring the in-year performance of

Defence, and the Investment Committee (chaired by Vice Chief of the Defence Force) is

responsible for future investments and maintaining the integrity of the Integrated Investment

Program.

10.20 (U) The Defence Audit and Risk Committee provides robust independent advice to

the Secretary and CDF on all aspects of governance and risk management within Defence.

10.21 (U) A range of other senior committees focus on specific functions or issues. In

accordance with the First Principles Review, the number of senior committees (see diagram

1) has been reviewed and reduced in numbers.

10.22 (U) The First Principles Review recommended that “the Minister for Defence meet

with the Defence Committee twice yearly to consider a formal strategic assessment of the

alignment between Defence’s strategy, funding and capability” (recommendation 1.18) and

that “Defence conduct regular reviews of the capital program in consultation with the

Minister and central agencies” (recommendation 1.19). It is recommended that the timings of

the biannual meetings are aligned with the budget cycle so they occur in May/June and

October/November each year.

10.23 (U) The release of the 2016 Defence White Paper, Integrated Investment Program and

2016-17 budget means that strategy, funding and capability are aligned with government

policy imperatives. Keeping strategy, resources and capability aligned will be a core

management challenge. This has two elements:

i. exercising control through the enterprise performance management system; and

ii.

careful management of the budget pressures particularly towards the end of forward

estimates.

10.24 (U) An enterprise performance management system is being implemented, as

recommended by the First Principles Review (recommendation 1.16). The system will ensure

government policy imperatives are cascaded clearly into Defence’s planning and budget

allocation framework through business plans and monitored through tri-annual performance

reporting. This focus on in-year planning and performance monitoring will provide the

Government with assurance that Defence is delivering what is required.

10.25 (U) Key public outputs of the enterprise performance management system include the

Defence Corporate Plan, the Portfolio Budget Statements and the Defence Annual Report,

which incorporates annual performance statements and financial statements as required by

the Public Governance, Performance and Accountability Act 2013.

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Chapter 10 – Accountability and governance

10.26 (U) Defence has an enterprise risk policy which sets the framework for risk

management in the organisation. Defence is currently updating its enterprise risks post the

release of the 2016 Defence White Paper and the First Principles Review. This will include

an analysis of vulnerabilities with management action being articulated in the business plans

and monitored by the Enterprise Business Committee

10.27 (U) The Investment Committee is developing an annual plan outlining the Integrated

Investment Program for 2016-17. This will provide visibility for the Minister and central

agencies about what capability programs or projects will require approval during the year.

10.28 (U) The enterprise performance framework and Investment Committee annual plan,

along with implementation reporting on implementation of the First Principles Review and

2016 Defence White Paper will enable Defence to provide regular formal progress reports on

the alignment of strategy, funding and capability.

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Chapter 10 – Defence Governance and Process

Defence Senior Committees

Secretary CDF

As at April 2016

Defence Committee

First Principles Review Implementation Committee*

Defence Strategic Policy Committee

Defence Civilian Committee

Gender Equality and Advisory Board

Chiefs of Service Committee

Star Planning Committee

Strategic Command Group

Associate Secretary VCDF

Enterprise Business Committee Investment Committee

United States Force Posture Initiative Steering Group* VCDF Group Safety Board

Strategic Effects Targeting Board

Joint Warfare Council

Australian Civil Military Centre Advisory Panel

Joint Reserve and Cadet Policy Committee

ADF Investigative Service Governance Board

Defence WH&S Committee (co-chair DEPSEC Defence People)

External Chairs

Deputy Secretary Strategic

Policy & Intelligence

Advisory Committee on

Defence Intelligence

Geospatial Information and

Services Executive Council

Intelligence Sub-Portfolio

Committee

Pine Gap Steering Group

Intelligence Liaison Office

Defence Seniors Meeting

Defence Audit and Risk Committee

Chief of Navy Chief of Army Chief of Air Force Chief Joint

Operations

CN Senior Advisory

Committee

Navy Resource

Management Working

Group

Navy Safety Board

New Generation Navy

Steering Group*

Navy Honours and

Awards Committee

Defence Housing Authority Steering Committee

Army Gender

Equality and

Diversity Council

CA Senior

Advisory

Committee

Star Personnel

Advisory

Committee

CAF Advisory

Committee

Air Force Board

Air Force Safety

Board

Joint Commanders

Meeting

Operational Risk

Assessment Board

Operational Risk

Management Board

CJOPS Advisory

Committee

Deputy Secretary

Capability,

Acquisition &

Sustainment

CAS Group

WH&S Council

Chief

Information

Officer

Infrastructure

Transformation

Program

Steering

Committee*

Deputy Secretary

Defence People

Human Resources

Development

Board*

Defence WH&S

Committee (cochair

VCDF)

Figure 2: Defence's Band 3/4 and Star Ranked Equivalent Chaired and External Senior Committees

Deputy Secretary

Estate &

Infrastructure

GEMS Project

Governance Board*

Estate &

Infrastructure

Group WH&S

Committee

Legend

Chief

Defence

Scientist

Nil

Orange: Strategic Committee

Chief Finance

Officer

Nil

* Committee with a finite life (are project/issue

related and will cease in the future).

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S E C R E T A U S T E O

Chapter 11 – Defence Facts

Chapter 11

Defence Facts

Key Issues

(U) Defence’s structure.

(U) Your Defence senior leadership team.

(U) Major Defence Bases and Establishments.

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Chapter 11 – Defence Facts

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Defence Senior Leaders – Biographies

BIOGRAPHIES

SECRETARY

MR DENNIS RICHARDSON, AO

Appointment expiry date: 18 October 2017

Phone number: (02) 6265 2851

Office Location: R1-5-SEC Suite

PERSONAL BIOGRAPHY

Dennis Richardson commenced as Secretary of the Department of Defence on 18 October 2012.

Dennis has had wide experience in the public service. Prior to moving to Defence, Dennis was the

Secretary of the Department of Foreign Affairs and Trade from January 2010 to October 2012 and

the Ambassador of Australia to the United States, June 2005-December 2009.

He held the role of Director-General of the Australian Security Intelligence Organisation from 1996

to 2005. From 1993 to 1996 Dennis was the Deputy Secretary of the Department of Immigration

and Multicultural Affairs, following on from being Head of the Review of the Intelligence

Community post Cold War in 1992.

Dennis was the Principal Adviser to the Prime Minister from 1990 to 1991. This position was

preceded by various senior public service roles in the Departments of the Prime Minister and

Cabinet and Immigration from 1986 to 1990, and a range of positions in the then Department of

Foreign Affairs, with postings to Nairobi, Port Moresby and Jakarta from 1969 to 1986.

Dennis graduated from Sydney University with a Bachelor of Arts (Honours) in 1968 and he was

awarded an AO in 2003.

Dennis was born in Kempsey, NSW in 1947 and is married to Betty and has one son and one

daughter.

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CHIEF OF THE DEFENCE FORCE

ACM MARK BINSKIN, AC

Appointment expiry date: 3 July 2018

Phone number: (02) 6265 2858

Office Location: R1-5-CDF Suite

PERSONAL BIOGRAPHY

Air Chief Marshal Mark Binskin was born in Sydney in 1960. He joined the Royal Australian Air

Force (RAAF) in 1984 after an initial period of service with the Royal Australian Navy (RAN).

Air Chief Marshal Binskin's service commenced in May 1978 and on completion of flying training,

was posted to fly A-4G Skyhawk aircraft. He served in VC724 and VF805 Squadrons and in

January 1982 was selected as the first RAN pilot to undergo an exchange with the RAAF flying

Mirage III aircraft. On completion of this exchange and with the disbanding of the Navy's fixed

wing capability, he joined the RAAF.

Air Chief Marshal Binskin's other flying tours include No 2 Operational Conversion Unit and

No 77 Squadron at Williamtown, NSW flying Mirage and F/A-18 Hornet aircraft; training on

F/A-18 aircraft with the United States Navy at VFA-125 at Lemoore, California; instructing on

F-16C aircraft with the United States Air Force at 314 Tactical Fighter Training Squadron, United

States Air Force at Luke AFB, Arizona; and No 75 Squadron at Tindal, Northern Territory flying

F/A-18 aircraft.

His command appointments include Commanding Officer of No 77 Squadron at Williamtown,

Commander of Air Combat Group (F/A-18, F-111, Hawk and PC9-A(F)) and later as Air

Commander Australia. Air Chief Marshal Binskin's flying qualifications include Fighter Combat

Instructor and Tactical Reconnaissance Pilot. Additionally, he has served as the RAAF F/A-18

Hornet Demonstration Pilot. He has over 3,500 hours in single-seat fighter aircraft.

Air Chief Marshal Binskin has served in various joint staff positions including Staff Officer to the

Chief of the Defence Force and in the Defence Materiel Organisation as Officer Commanding the

Airborne Early Warning and Control System Program Office. During Australia's 2003 contribution

to the war in Iraq, Air Chief Marshal Binskin served as Chief of Staff at Headquarters Australian

Theatre.

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Following this, he served as the Director of the US Central Air Force Combined Air and Space

Operations Centre where he was responsible for the conduct of Coalition air operations in support

of Operation Iraqi Freedom and Operation Enduring Freedom (ADF Operations Catalyst and

Slipper). For this service he was awarded a Commendation for Distinguished Service.

Air Chief Marshal Binskin is a Companion of the Order of Australia (AC). He has also been

recognised by the Republic of Korea with the Order of National Security Merit, Gukseon Medal;

and the Republic of Singapore with the Meritorious Service Medal (Military).

Air Chief Marshal Binskin is a graduate of the Harvard Business School Advanced Management

Program, Australian Institute of Company Directors and RAAF Command and Staff Course where

he was awarded the Chief of Staff's Prize for Professional Excellence.

Air Chief Marshal Binskin was Chief of the Air Force from 2008-2011, Vice Chief of the Defence

Force from 2011-2014 and was appointed as Chief of the Defence Force on 30 June 2014.

Air Chief Marshal Binskin is married to Gitte and they have two sons. Air Chief Marshal Binskin's

interests include flying, most motor sports and motorcycle riding with his family.

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Defence Senior Leaders – Biographies

ASSOCIATE SECRETARY

MR BRENDAN SARGEANT

Phone number: (02) 6265 7911

Office Location: R1-5-B160

PERSONAL BIOGRAPHY

Brendan Sargeant is the Associate Secretary of the Department of Defence.

Brendan has had wide experience in Defence and has held senior appointments including Deputy

Head of the Defence Personnel Executive, Minister/Counsellor Defence Policy at Australian

Embassy Washington DC, Deputy Director Intelligence at Defence Signals Directorate, Head of

Strategic Policy Division and Deputy Secretary Strategy.

In 2006, Brendan transferred to Centrelink and held a number of senior appointments, including

General Manager, Information Technology, Planning and Project Coordination, and General

Manager, Strategy and Capability. In January 2009, Brendan transferred to the position of First

Assistant Secretary, Government and Defence Division, Budget Group, Department of Finance and

Deregulation.

Brendan was promoted to Deputy Secretary Strategy (Operations), Department of Defence in

February 2010, and subsequently transferred to Deputy Secretary Strategic Reform and Governance

two years prior to taking up the Deputy Secretary Strategy role.

He was promoted to his current appointment of Associate Secretary in September 2013.

In October 2015, Brendan completed the Advanced Management Program at Wharton’s Business

School.

Brendan has degrees in Political Science and English Literature.

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VICE CHIEF OF DEFENCE FORCE

VADM RAY GRIGGS, AO, CSC, RAN

Appointment expiry date: 3 July 2018

Phone number: (02) 6265 2856

Office Location: R1-5-B025

PERSONAL BIOGRAPHY

Vice Admiral Ray Griggs was born in Homebush, NSW in 1961. He joined the Adelaide Port

Division of the Royal Australian Navy (RAN) Reserve in 1978 as a radio operator and entered the

Royal Australian Naval College at HMAS Creswell on a short service commission in 1979. He was

appointed Vice Chief of the Defence Force on 30 June 2014.

During his seaman officer training Vice Admiral Griggs served in the aircraft carrier HMAS

Melbourne and HMA Ships Yarra and Advance before spending 12 months loaned to the Royal

Navy in HMS Jersey to gain his Bridge Watchkeeping Certificate. In late 1981, he was posted to

HMAS Perth as a Bridge Watchkeeper and deployed to the North West Indian Ocean in support of

Australia's independent presence in that region following the Soviet invasion of Afghanistan.

From 1983 to 1994, the then Lieutenant Griggs completed a series of postings as Navigating Officer

of HMA Ships Cessnock, Torrens, Tobruk, Jervis Bay and Perth. Ashore he has served in variety of

roles including as the Aide-de-Camp to His Excellency the Governor of Tasmania, Sir James

Plimsoll, AC, CBE, two postings in the Navy's officer career management directorate, Staff Officer

(Navigation) to the Commander Australian Patrol Boat Forces and as Deputy Director Military

Strategy and Director Future Warfare in the Australian Defence Headquarters. He completed

specialist navigation training and graduated as a Principal Warfare Officer.

Between 1995 and 1997, Vice Admiral Griggs served as commissioning Executive Officer of

HMAS Anzac helping to bring the Anzac Class into service. In October 2001, he assumed

command of the Anzac Class frigate HMAS Arunta and was immediately involved in border

protection duties as part of Operation RELEX. Arunta then deployed to the Persian Gulf to enforce

United Nations sanctions against Iraq and in support of the War on Terror. The ship was recognised

for her efforts by being awarded the Duke of Gloucester's Cup for being the most operationally

efficient ship in the RAN fleet for 2002.

In 2003, he was posted as the Anzac Class Capability Element Manager in Rockingham, Western

Australia. In 2004, he studied at the National War College in Washington DC prior to assuming

command of the Australian Amphibious Task Group in mid 2005.

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He was promoted to Commodore in February 2006 and appointed as the Deputy Maritime (Fleet)

Commander until assuming the position of Director General Navy Strategic Policy and Futures in

Navy Headquarters in September 2007. In February 2008, he was seconded to the Defence White

Paper team where he led the development of the Force Structure Review that provided the force

structure underpinning the 2009 White Paper. In early 2009, he attended the UK Higher Command

and Staff Course and was subsequently promoted to Rear Admiral and appointed as Deputy Head

Strategic Reform and Governance. In May 2010, he was posted as Deputy Chief of Joint Operations

during a high tempo period of operations abroad and at home. He then went on to command of the

Royal Australian Navy from June 2011 until June 2014.

Vice Admiral Griggs was awarded the Conspicuous Service Cross in 1997, a Commendation for

Distinguished Service in 2003 for his work in the Persian Gulf and appointed as a Member of the

Order of Australia in 2009. He was made an Officer of the Order of Australia in 2012.

He holds a Bachelor of Arts degree from the University of Queensland, a Master of Business

Administration from the National Graduate School of Management at the Australian National

University and a Master of Science (National Security Strategy) from the National Defense

University in Washington DC. He has a daughter and a son.

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Defence Senior Leaders – Biographies

CHIEF OF NAVY

VADM TIM BARRETT, AO, CSC, RAN

Appointment expiry date: 3 July 2018

Phone number: (02) 6265 1020

Office Location: R1-4-C001

PERSONAL BIOGRAPHY

Vice Admiral Tim Barrett joined the Royal Australian Navy in 1976 as a Seaman Officer and later

specialised in aviation. He assumed command of the Royal Australian Navy on 1 July 2014.

A dual-qualified officer, Vice Admiral Barrett served in Her Majesty's Australian (HMA) Ships

Melbourne, Perth and Brisbane and HMS Orkney as a Seaman Officer and then as Flight

Commander in HMA Ships Stalwart, Adelaide and Canberra. His staff appointments include

Deputy Director Air Warfare Development, Director Naval Officer's Postings and Director General

of Defence Force Recruiting.

He has served as Commanding Officer 817 Squadron, Commanding Officer HMAS Albatross,

Commander Australian Navy Aviation Group, Commander Border Protection Command and most

recently as Commander Australian Fleet.

Receiving a Conspicuous Service Cross in 2006 for his achievements in naval aviation, Vice

Admiral Barrett became a Member of the Order of Australia in 2009 for his service as Director

Naval Officers' Postings and Commander Navy Aviation Group. He was made an Officer of the

Order of Australia in 2014 for his leadership of Border Protection Command and the Australian

Fleet.

Vice Admiral Barrett holds a Bachelor of Arts in Politics and History and a Masters of Defence

Studies, both from the University of New South Wales. He completed the Advanced Management

Program at Harvard Business School in May 2014.

Vice Admiral Barrett and his wife Jenny have two daughters.

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CHIEF OF ARMY

LTGEN ANGUS CAMPBELL, DSC, AM

Appointment expiry date: 3 July 2019

Phone number: (02) 6265 4311

Office Location: R1-4-B003

PERSONAL BIOGRAPHY

Lieutenant General Angus Campbell joined the Australian Army in 1981, graduating from the

Royal Military College – Duntroon in 1984. He was assigned to the Royal Australian Infantry

Corps and initially served as a platoon commander in the 3rd Battalion (Parachute), The Royal

Australian Regiment (3RAR).

He then served in troop and squadron command appointments within the Special Air Service

Regiment. In 2001, he was appointed the Commanding Officer of the 2nd Battalion, The Royal

Australian Regiment (2RAR). While in command, the battalion group deployed to East Timor, as a

component of the United Nations Transitional Administration East Timor.

Lieutenant General Campbell has also served in a range of staff appointments including as Aide-de-

Camp to the Chief of Army, as a strategic policy officer in Army Headquarters, an instructor at the

Australian Command and Staff College and as Chief of Staff to the Chief of the Defence Force.

In late 2005, he joined the Department of the Prime Minister and Cabinet as a First Assistant

Secretary to head the Office of National Security and was subsequently promoted to Deputy

Secretary and appointed to the position of Deputy National Security Adviser. In these roles he was

responsible for the preparation of advice to the Prime Minister on national security matters and

coordinating the development of whole-of-government national security policy.

Upon his return to the Australian Defence Force in early 2010, he was appointed to the rank of

Major General and led the Military Strategic Commitments staff in Defence headquarters until

January 2011, when he assumed command of Australian forces deployed in the Middle East Area of

Operations. He subsequently served as Deputy Chief of Army from February 2012 to September

2013, when he was promoted to his current rank to command the Joint Agency Task Force

responsible for the implementation of Operation Sovereign Borders.

Lieutenant General Campbell was appointed Chief of the Australian Army on 16 May 2015.

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Lieutenant General Campbell holds a Bachelor of Science (Honours) from the University of New

South Wales, a Master of Philosophy in International Relations from Cambridge University and he

is a graduate of the Australian Army Command and Staff College.

Lieutenant General Campbell's hobbies include hiking, distance running, military history and

gardening. He is married to Stephanie and they have two adult children.

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CHIEF OF AIR FORCE

AIRMSHL LEO DAVIES, AO, CSC

Appointment expiry date: 3 July 2019

Phone number: (02) 6265 5474

Office Location: R1-6-C001

PERSONAL BIOGRAPHY

Air Marshal Leo Davies joined the Royal Australian Air Force as a cadet Navigator in 1979 and

graduated to fly P-3B and P-3C Orion aircraft with Number 11 Squadron at Edinburgh in South

Australia. In 1987, Air Marshal Davies completed pilot training and after completing F-111

conversion course was posted in 1988 to Number 1 Squadron at RAAF Base Amberley.

In 1990, Air Marshal Davies was posted to Cannon Air Force Base, New Mexico, to fly F-111D

aircraft on exchange with the United States Air Force. On return to Australia in 1993, Air Marshal

Davies was posted to Number 1 Squadron as the Operations Flight Commander followed by one

year as Operations Officer at Headquarters Number 82 Wing during 1996. After a posting in 1997

and 1998 as the Executive Officer at Number 1 Squadron, Air Marshal Davies completed RAAF

Command and Staff Course. In 2000, he commenced two years in Capability Systems within

Defence Headquarters.

In 2002 and 2003, Air Marshal Davies' long association with Number 1 Squadron was again

rekindled when he returned as Commanding Officer and achieved 2,000 hours flying the F-111. He

was the Staff Officer to the Chief of Air Force during 2004, before taking up the post of Officer

Commanding Number 82 Wing at RAAF Base Amberley, where he was awarded a Conspicuous

Service Cross (CSC) for outstanding achievement.

Air Marshal Davies worked as Director Combat Capability within Air Force Headquarters in 2006

and 2007, during which time he was deployed to the Middle East to work in the Combined Air

Operations Centre. Between 2008 and 2010, Air Marshal Davies was the Director General

Capability Planning within Air Force Headquarters. He was then posted to Washington DC as the

Air Attaché, where he was awarded the United States Legion of Merit – Officer. Air Marshal

Davies returned from Washington DC in January 2012 to take up his appointment as Deputy Chief

of Air Force.

Air Marshal Davies was appointed an Officer of the Order of Australia (AO) in 2014 for

distinguished service to the Australian Defence Force in senior command and staff appointments.

He was promoted to Air Marshal and appointed to Chief of Air Force on 4 July 2015.

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CHIEF JOINT OPERATIONS

VADM DAVID JOHNSTON, AM, RAN

Appointment expiry date: 30 June 2018

Phone number: (02) 6128 4000

Office Location: B1-J001, Bungendore

PERSONAL BIOGRAPHY

Vice Admiral David Johnston graduated from the Royal Australian Naval College in 1982 as a

seaman officer, later specialising as a Principal Warfare Officer. His operational tours include

serving as Commanding Officer of HMAS Adelaide (FFG 01) and HMAS Newcastle (FFG 06). In

these commands he conducted border security patrols and deployed on Operation QUICKSTEP to

Fiji in 2006.

His staff appointments include Command and Control specialist staff positions in Australian

Defence Headquarters, Operations Manager at Sailors' Career Management and later as Director

Joint Plans in Strategic Operations Division, where he developed strategic military response options

for consideration by Government.

In July 2007 on promotion to Commodore, he joined Fleet Headquarters as Commodore Flotillas

where he was responsible for planning maritime operations and the operational training of Navy's

ships, submarines and diving teams.

In 2008, he performed the Deputy Coalition Force Maritime Component Commander role and

Australian National Commander for Exercise RIMPAC 08. In November 2008, he assumed the role

of J3 (Director General Operations) at Headquarters Joint Operations Command. This role

encompassed the operational level execution of all Australian Defence Force operations both

overseas and within Australia.

In October 2010, he deployed to Operation SLIPPER in the Middle East Area of Operations as the

Deputy Commander Joint Task Force 633. He supported the Commander Joint Task Force in

providing national command oversight of all Australian Defence Force elements conducting

maritime, land and air operations in Iraq, Afghanistan and adjacent maritime areas. He was awarded

a Commendation for Distinguished Service for this role.

Promoted to Rear Admiral in March 2011 to perform the role of Deputy Commander of the

Combined AS/US Task Force for Exercise TALISMAN SABRE, he subsequently assumed the role

of Deputy Chief Joint Operations Command in June 2011.

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While performing this role he commanded the Defence Joint Task Force that supported the

Commonwealth Heads of Government Meeting in 2011 and the visit by the President of the United

States of America later in that year.

Vice Admiral Johnston was appointed Commander Border Protection Command in December 2011

and held this responsibility until December 2013. As commander of this multi-agency organisation

he was responsible for the civil maritime security of Australia's maritime domain using resources

from both the Australian Defence Force and the Australian Customs and Border Protection Service.

Promoted to Vice Admiral in April 2014, he assumed the appointment of Chief of Joint Operations

in May 2014. His current role is to plan, control and conduct military campaigns, operations, joint

exercises and other activities in order to meet Australia's national objectives. He is married and has

two children.

Vice Admiral Johnston holds a Master of Science in Operations Research from the United States

Navy Postgraduate School in Monterey, California and a Master of Arts in Strategic Studies from

Deakin University. He participated in the inaugural Australian Security Executive Development

Program in 2009. In 2012, he was appointed a Member of the Order of Australia (Military

Division).

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CHIEF FINANCE OFFICER

MR PHILLIP PRIOR

Phone number: (02) 6265 5328

Office Location: R1-2-C001

PERSONAL BIOGRAPHY

Phillip graduated from the University of New England with a Bachelor of Applied Economics.

After spending a short time in Sydney working with an international accounting firm, Phillip

decided that he wanted to do something different and took an opportunity to work with Indigenous

Australians in remote regions of the Northern Territory. He worked with two Indigenous

communities in a financial and managerial support capacity as those communities transitioned from

religious missions to self-management townships.

After five years of working with Indigenous people which Phillip describes as “exhilarating,

challenging but extremely rewarding”, he returned to the profession and rejoined an international

accounting firm. He remained in the profession up until 1998 having worked for three of the big

four accounting firms during that time. He regards the highlights of that time to include working

with the South Australian Police Commissioner on reform of the SA Police Department, working

on major Australian energy transactions, reviewing rail infrastructure and serving on the Adelaide

Arts Festival Board.

In 1998, Phillip joined the Commonwealth Department of Finance where he worked on a range of

policy and procedural matters. He considers the highlights of that time to include implementing the

first accrual budget across the Commonwealth, being responsible for preparing the

Commonwealth’s consolidated financial statements and budgets, managing the Commonwealth's

domestic estate, leading the reform of the Commonwealth’s budget and estimates practices and

processes and leading the design and implementation of the Commonwealth's budget and reporting

software systems. He also served on Commonwealth Government Boards.

Phillip joined the Department of Defence in 2006 as the Chief Finance Officer and has been busy

ever since. He sits on the senior Committees of Defence and has technical responsibility for the

finance domain within the Defence organisation.

Phillip holds a Master of Business Administration and is a fellow of the Institute of Chartered

Accountants.

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ACTING DEPUTY SECRETARY STRATEGIC POLICY AND INTELLIGENCE

MR NEIL ORME

Phone number: (02) 6265 4590

Office Location: R1-5-B001

PERSONAL BIOGRAPHY

Neil Orme was born in the United Kingdom and migrated with his family to Australia in 1971.

He completed an Arts degree at the University of Sydney (majoring in Indonesian Studies) and a

Graduate Diploma in Applied Economics at Canberra College of Advanced Education.

Neil joined Defence in 1985 as a purchasing officer at the Navy Supply Centre in Sydney. He

transferred to Canberra in 1986 and held a variety of positions before becoming Assistant Secretary

Investment Analysis in December 2000. Neil then served as Assistant Secretary Coordination,

Governance and Renewal from January-September 2005.

From September 2005 to April 2007 Neil was Assistant Secretary Defence and Intelligence Branch

in the Department of the Prime Minister and Cabinet. He returned to Defence in April 2007 to take

up the new position of First Assistant Secretary Policy Development. In July 2008, Neil transferred

to the position of First Assistant Secretary Ministerial Support and Public Affairs (FAS MSPA) in

Defence. From June-September 2009 Neil was seconded to the position of Chief of Staff to the

Hon Greg Combet AM MP, Minister for Defence Personnel, Materiel and Science, and Minister

Assisting the Minister for Climate Change.

On completion of his attachment to the minister’s office, Neil returned to his position as FAS

MSPA, which evolved into the position of First Assistant Secretary Ministerial and Executive

Coordination and Communication. In May 2011, Neil transferred to the position of Principal

Advisor Afghanistan-Pakistan, which was subsumed by his new role of First Assistant Secretary

International Policy in October 2011.

From January 2014 to March 2016 Neil was Co-lead of the Forces Structure Review as part of the

2016 Defence White Paper team. Neil took up the appointment as Director Australian Geospatial-

Intelligence Organisation in March 2016 and commenced as the acting Deputy Secretary Strategic

Policy and Intelligence on 4 July 2016.

Neil is a graduate of the Royal College of Defence Studies in the United Kingdom (2004) and a

former member of the Army Reserve. He was awarded the Public Service Medal in 2011.

Neil is married with three adult children and is partial to sports, music and languages.

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CHIEF DEFENCE SCIENTIST

DR ALEX ZELINSKY

Phone number: (02) 6128 6301

Office Location: F2-2-008

PERSONAL BIOGRAPHY

Dr Alex Zelinsky was appointed Chief Defence Scientist and head of the Defence Science and

Technology Organisation (now Defence Science and Technology Group) in March 2012.

Before joining Defence he was Group Executive for Information Sciences at the Commonwealth

Scientific and Industrial Research Organisation (CSIRO) and Director of CSIRO’s Information and

Communication Technologies (ICT) Centre.

Dr Zelinsky was Chief Executive Officer and co-founder of Seeing Machines, a high-technology

company developing computer vision systems. The company is listed on the London Stock

Exchange and was a start-up from the Australian National University in Canberra, Australia, where

Dr Zelinsky was Professor of Systems Engineering.

Dr Zelinsky researched robotics and computer vision at the AIST Electrotechnical Laboratory in

Japan and has taught and conducted research in computer science at the University of Wollongong,

New South Wales. He started his career as a Systems Engineer with BHP Steel International.

Dr Zelinsky has extensively advised Federal and State governments in Australia, including as a

member of the Australian Government's Defence Industry Innovation Board. He has served on the

advisory panels to the Australian Research Centre (ARC) Centre for Vision Science and the ARC

Centre of Excellence for Autonomous Systems.

Dr Zelinsky completed his Bachelor of Mathematical Sciences (Honours) and Doctor of Philosophy

at the University of Wollongong.

In 2009, Engineers Australia named Dr Zelinsky Professional Engineer of the Year (Sydney

Division) and he has been included in Engineers Australia’s list of the 100 most influential

engineers since that year. He subsequently received the Engineers Australia M A Sargent Medal

2015 – the most prestigious award made by the College of Electrical Engineers. In 2013, he was

awarded the prestigious Pearcey Medal, the ICT industry’s premier prize for lifetime achievement.

S E C R E T A U S T E O

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Dr Zelinsky has been awarded the following academic qualifications:

Bachelor of Mathematical Sciences (Honours), University of Wollongong

Doctor of Philosophy, University of Wollongong

Graduate Diploma, Australian Institute of Company Directors

Completed Advanced Management Program, Harvard University

Honorary Doctor of Science, University of Wollongong

Dr Zelinsky's contributions to science have been recognised by numerous science and industry

awards including:

Australian Engineering Excellence Awards, 1999 and 2001

Business-Higher Education Round Table Award, 2001

Australian Information Industries Award (iAward), 2002 and 2006

Australian Eureka Science Prize, 2002

US R&D magazine Top 100 Award, 2002

ATSE Clunies-Ross National Science & Technology Award, 2005

Professional Engineer of the Year (Sydney Division), 2009

IEEE Inaba Technical Award for Innovation Leading to Production, 2010

Warren Centre, Innovation Hero Award, 2012

Pearcey Foundation, Pearcey Medal for lifetime achievement in ICT sector, 2013

Engineers Australia M A Sargent Medal, 2015

Dr Zelinsky has been elected as a:

Fellow of the Australian Academy of Technological Sciences and Engineering (FTSE)

Fellow of the Institute of Electrical and Electronic Engineers (FIEEE)

Fellow of the Institution of Engineers Australia (FIEAust)

Fellow of Australian Institute of Company Directors (FAICD)

The World Economic Forum named Dr Zelinsky a Technology Pioneer in 2003, 2004 and 2005.

S E C R E T A U S T E O

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S E C R E T A U S T E O

Defence Senior Leaders – Biographies

DEPUTY SECRETARY CAPABILITY ACQUISITION AND SUSTAINMENT

MR KIM GILLIS

Phone number: (02) 6265 7357

Office Location: R2-5-C074

PERSONAL BIOGRAPHY

On 31 August 2015, Kim Gillis was appointed Deputy Secretary Capability Acquisition and

Sustainment Group (CASG). Kim is responsible for CASG’s portfolio of acquisition projects and

sustainment products that procure and sustain materiel capability for the Australian Defence Force.

Prior to joining the Department of Defence, Kim was Vice President and Managing Director of

Boeing Defence Australia. Kim managed all of Boeing Defence Australia businesses and functions

at the organisation’s 15 sites across the country and four international locations. Before this, Kim

was Boeing Defence Australia’s Chief Operating Officer, overseeing the organisation’s day-to-day

operations, alignment and integration with Boeing Defense, Space & Security and compliance and

governance.

Prior to his work at Boeing, Kim was General Manager Systems for the then Defence Materiel

Organisation. In this role, he led the reform agenda for Defence Material Organisation acquisition

and sustainment in an environment of significant change as a result of major Defence-wide reforms.

As a senior program manager, he successfully managed and executed multi-billion dollar projects

involving integrated teams of professionals in Australia and overseas. Mr Gillis was the program

manager for the Australian Landing Helicopter Dock program.

Kim has also worked for the Austal Group, where he was the capture team lead and project manager

for the US Navy Littoral Combat Ship, the Joint High Speed Vessel program and the Royal

Australian Navy Armidale Class patrol boat fleet.

Kim holds a Bachelor of Arts degree in business administration with a major in legal studies from

University of Canberra. He is a qualified Master Project Director (AIPM). Kim is the founder and

sponsor of Queensland University of Technology Executive Masters in Complex Project

Management Program and International Centre for Complex Project Management.

S E C R E T A U S T E O

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Defence Senior Leaders – Biographies

CHIEF INFORMATION OFFICER

DR PETER LAWRENCE

Appointment expiry date: 25 November 2017

Phone number: (02) 6266 7302

Office Location: APW-5-030

PERSONAL BIOGRAPHY

Dr Peter Lawrence was appointed to the role of Chief Information Officer in November 2012. Prior

to joining the Australian Public Service he had a long career in the private sector working for Royal

Dutch Shell, ANZ and Origin Energy.

Dr Lawrence graduated from the University of Bath with a Doctor of Philosophy (PhD) in

Chemistry in 1989, prior to that he completed a Bachelor of Science in Chemistry at the University

of Nottingham from 1982-1985. Upon graduating with his PhD he joined Royal Dutch Shell in

London and embarked on a career of 18 years with them. During this time he held a wide variety of

roles of increasing seniority and global reach based in the UK, Australia and Japan. These included:

Managing Director, Shell Services International Japan; Operations Manager IT Professional

Services Asia Pacific Middle East, Shell IT International; and Country Manager IT, Shell Australia.

In 2007, he joined the ANZ Bank based in Melbourne as the Head of IT Infrastructure. After less

than a year role in the role he moved to be the Chief Information Officer for ANZ New Zealand

based in Wellington covering all of the business activities in New Zealand across the Retail,

Agricultural, Commercial and Institutional banking business.

Upon returning from New Zealand in 2011 Dr Lawrence joined Origin Energy, based in Melbourne,

as the Group Manager IT, supporting the Energy Markets business covering the Generation,

Wholesale, Trading, LPG and Retail parts of the business.

He is married with two children, a son and a daughter. When time permits he enjoys watching most

sport, keeping fit and travelling.

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S E C R E T A U S T E O

Defence Senior Leaders – Biographies

DEPUTY SECRETARY DEFENCE PEOPLE

MS REBECCA SKINNER

Phone Number: (02) 6265 7339

Office Location: R1-1-C001

PERSONAL BIOGRAPHY

Rebecca was promoted to Deputy Secretary Defence People in May 2014.

Prior to that she has held the positions of:

First Assistant Secretary Capability Investment and Resources (June 2012 – May 2014);


First Assistant Secretary Ministerial and Executive Coordination and Communication

(May 2011 – June 2012); and

First Assistant Secretary Strategic Policy (March 2008 -May 2011).

During 2010, Rebecca was the head of the secretariat for the Government's review of the Woomera

Prohibited Area. She led a cross-government team tasked to examine the national security and

economic interests of the region and recommend arrangements for its future.

Prior to returning to Defence, Rebecca had been Assistant Secretary Defence and Intelligence at the

Department of the Prime Minister and Cabinet responsible for policy coordination across all

Defence and Australian Intelligence Community issues. Her appointment followed a year as a

senior executive in the Attorney-General's Portfolio.

Rebecca originally joined the Department of Defence in 1993 after four years as a secondary

teacher. Rebecca worked at the Australian Signals Directorate holding a range of positions in

information security and signals intelligence, including a three year posting as an Aerospace

Systems Division Liaison officer to the National Security Agency in Washington DC.

Moving to the Defence Intelligence Organisation in 2002 to head intelligence production and

coordination she took up a Senior Executive Service position as Assistant Secretary Analytical

Services in 2003 and was promoted to the Senior Executive Service in 2004. In this role, Rebecca

was responsible for all corporate intelligence support functions and the management of the allied

information systems and policy.

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Rebecca has a Bachelor of Science degree and a Graduate Diploma in Education from the

University of Melbourne, and a Graduate Diploma in Applied Science (Computer Science) from

Swinburne University.

In 2003, she completed the Senior Management Development Program at the Australian Graduate

School of Management and is a Graduate member of the Australian Institute of Company Directors.

Rebecca is married to Michel and they have two sons.

S E C R E T A U S T E O

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Defence Senior Leaders – Biographies

DEPUTY SECRETARY ESTATE AND INFRASTRUCTURE

MR STEVE GRZESKOWIAK

Phone number: (02) 6265 6060

Office Location: R1-6-A001

PERSONAL BIOGRAPHY

Steve Grzeskowiak joined the United Kingdom Ministry of Defence (MoD) as a technician

apprentice in 1978. Steve served at sea in HMS Ark Royal and HM Submarine Waspite then

spent four years as an engineer in the Sea Systems arm of the Materiel Support Organisation.

He later moved into human resources as a Career Manager in 1991.

Steve returned to engineering management with a three-year secondment to the North

Atlantic Treaty Organisation in Munich as Avionics Manager for the four Nation Eurofighter

2000 acquisition program. On return to the UK he was appointed Project Manager Hull

Mounted Sonars, leading the acquisition of the Royal Navy's surface ship sonar program.

With the creation of the Defence Procurement Agency and the Smart Procurement Initiative,

he was invited to join a mixed MoD/KPMG team of Change Management and Supply Chain

Consultants to deliver the consultancy support to enable Smart Procurement.

Following this, he was selected for the UK/Australia Personnel exchange program and from

2001-2003 worked within the Personnel Systems area of the Defence Personnel Executive in

Canberra. He subsequently secured a position as an Australian Public Servant in October

2003.

He was promoted into the Senior Executive Service in July 2004 as the Director General

Occupational Health and Safety for Defence and was responsible for overseeing the corporate

occupational health and safety programs. He moved into personnel policy in July 2006 as the

Director General Personnel Policy and Employment Conditions. In 2008, Steve became Head

People Policy in the People Strategies and Policy Group, with responsibility for policy issues

across the Human Resources spectrum for Defence APS and ADF.

In 2011, Steve transferred into the Defence Support Chief Operating Officer position and in

January 2013 he was promoted to Deputy Secretary Defence Support and Reform.

This title was changed to Deputy Secretary Estate and Infrastructure when the Group was

renamed in July 2015.

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As a consolidated service delivery organisation for Defence, Steve is responsible for a range

of support services where Defence works, trains and lives across Australia, and the

development and management of the Defence estate.

Steve is married with two children and lives in Canberra, Australia.

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Chapter 11 – Defence Facts

MAJOR DEFENCE BASES AND ESTABLISHMENTS

Australian Capital Territory

Establishment Electorate Suburb Description

S47C

Anzac Park West Canberra Parkes Office accommodation

Australian Defence

S47C

College

S47C

Australian Defence

S47C

Force Academy

S47C

Canberra Weston Creek The college provides military and

civilian officers with specialist

training and education to prepare

them for future command and

management positions

Canberra Campbell The centre for undergraduate

tertiary education for the ADF and

accommodates other Defence units

and activities, including the

Federation Guard

Brindabella Park S47C Fenner Pialligo Office accommodation

Campbell

Offices

S47C

Fairbairn

Park S47C

S47C

Park

Business

Fenner Campbell Office accommodation

Fenner Fairbairn Office accommodation and 34SQN

VIP aircraft operations, which is

collocated with Canberra Airport

HMAS Creswell Fenner Jervis Bay Navy’s initial entry officer training

S47C

and leadership training; supports

fleet units operating in the East

Australian Exercise Area

HMAS Harman

S47C

Canberra Canberra Primarily a communications centre;

provides administrative support to

Navy personnel; accommodates

Army and Air Force Reserve units

and ADF cadets

Royal

College

S47C

Military

S47C

Canberra Duntroon Provides Army Regular and Reserve

officer training and accommodates

the Army’s Land Warfare Studies

Centre and the Canberra area

medical centre/hospital

Russell Offices S47C Canberra Russell Head office and specialist work

S47C

accommodation

*Subject of current disposal action – partial site

**Subject of current disposal action – partial site

S E C R E T A U S T E O

S47C

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Chapter 11 – Defence Facts

New South Wales

Establishment Electorate Suburb Description

Blamey Barracks Riverina Kapooka Army recruit training

Defence S47C Lindsay Orchard Hills In-Service sustainment of non-

Establishment S47C

Guided Explosive Ordnance and Air

Orchard Hills

and Surface launched guided

S47C

missiles for the ADF, as well as

explosive ordnance storage

Defence Plaza Sydney Sydney Office accommodation

S47C

Sydney

Garden Island

Defence Precinct

S47C

Sydney Potts Point Navy’s main home port for east

coast based major fleet units

providing berthing, operational,

administrative, logistics and

maintenance support; includes

HMAS Kuttabul, Fleet

Headquarters (Fleet Base East) and

the Captain Cook Dockyard; major

operating base for Navy’s major

Surface Group (Guided Missile

Frigates and future Guided Missile

Destroyers) Amphibious and

Support Group (Landing Helicopter

Dock and Support Ship)

Eden- Bungendore Headquarters Joint Operations

Monaro

Command

General John Baker

Complex S47C

HMAS Albatross Gilmore Nowra Home to naval aviation and

S47C

provides operational, administrative,

logistics, maintenance and training

support to Naval Air Squadrons and

lodger units and Army Parachute

School

HMAS Penguin Warringah Mosman Accommodates the Navy’s Diving

S47C

School, Hydrographic School and

the Submarine and Underwater

Medicine Unit

HMAS Waterhen North Waverton Navy’s lead establishment for mine

S47C

Sydney

warfare and home to six Minefield

Hunter Coastal vessels, support to

Mine Warfare and Clearance Diving

Group elements

HMAS Watson Wentworth Watsons Bay Navy’s principal warfare and

S47C

navigation training establishment

and is home to the Training

Authority – Maritime Warfare

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S47C

Chapter 11 – Defence Facts

Liverpool Military Hughes Liverpool A multi-function Army base

Area S47C

accommodating, Special Forces,

S47C

Army engineering units, 6 Aviation

Regiment with Blackhawk and

Kiowa helicopters; various Army

training units and Defence’s

logistics functions (incl. Holsworthy

Barracks)

RAAF Glenbrook

S47C

Macquarie Glenbrook Home to Headquarters Air

Command. No airfield.

RAAF Richmond

S47C

Macquarie Richmond Accommodates the command,

S47C

development, training, support and

some operational units (C-130 and

C27J aircraft) of Air Mobility

Group, Army air dispatch

Tamworth S47C

S47C

New

England

Tamworth Current location of ADF Basic

Flying Training School; shared

airfield with Tamworth Regional

Airport

S47C

RAAF Wagga Riverina Forest Hill Air Force technical training base

S47C

and initial entry (recruit) training;

no airfield, although collocated with

Wagga Airport.

RAAF Williamtown Paterson Williamtown Command, operational and support

S47C

Randwick Barracks

S47C

Singleton

Area S47C

S47C

Military

Victoria Barracks

S47C

Sydney

S47C

Kingsford-

Smith

S E C R E T A U S T E O

elements of Air Combat Group and

Surveillance and Response Group;

accommodates air surveillance and

battlefield management command

and support elements, and the ADF

Warfare Centre.

Randwick Accommodates Army Special

Forces, Army Reserve, logistic and

specialist units, Navy Training

Systems Centre and a Defence

medical and dental logistic facility

Hunter Singleton Includes Lone Pine Barracks;

accommodates Army’s Special

Forces and infantry training units

(Special Force Training Centre and

School of Infantry Centre)

*Subject of current disposal action – partial site

Wentworth Paddington Working accommodation for

Army’s Headquarters Forces

Command and a number of direct

command and other supporting units

**Subject of current disposal action – partial site

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Chapter 11 – Defence Facts

Northern Territory

Establishment Electorate Suburb Description

Bradshaw Training Lingiari Timber Creek Military training area

S47C

Area

Defence S47C Solomon Berrimah Primarily houses Estate and

Establishment S47C

Infrastructure Group functions

Berrimah S47C

HMAS Coonawarra Solomon Larrakeyah Home for the Armidale Class patrol

S47C

boats which are used to conduct

border integrity operations;

maritime maintenance facility also

situated on site suitable for patrol

boat sized vessels

Joint Defence Lingiari Pine Gap Responsible for the collection of

Establishment Pine

intelligence and the provision of

Gap S47C

ballistic missile early warning

S47C

information

Larrakeyah Defence Solomon Larrakeyah Includes Northern Command

Precinct S47C

S47C

Headquarters, NORFORCE (Army

Indigenous patrol soldiers), HMAS

Coonawarra and Cadet units

RAAF Darwin Solomon Winnellie Permanent forward operating base

S47C

for contingencies and major

exercises to enable concentration

and mounting of ADF operations

from Australia’s north

RAAF Tindal S47C

S47C

Lingiari Katherine Permanent forward operating base.

Home of an F/A-18 squadron, No 3

Control and Reporting Unit

Detachment, the Delamere Range

Facility and allows for the

concentration and mounting of ADF

operations in the north

Robertson Barracks Solomon Palmerston Army’s 1 Brigade and elements of

S47C

the 1 st Aviation Regiment

*Subject of current disposal action – partial site

**Subject of current disposal action – partial site

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Chapter 11 – Defence Facts

Queensland

Establishment Electorate Suburb Description

HMAS

S47C

Moreton Griffith Bulimba Administrative support to Navy

personnel and Navy activity in

Queensland south of the Tropic of

Capricorn

S47C

Borneo Barracks Groom Cabarlah Accommodates Army’s deployable

S47C

electronic warfare unit, Defence

Force School of Signals and

Capability Acquisition and

Sustainment Group’s Tactical

Warfare Systems Program

Damascus Barracks Lilley Meeandah Mainly used by Joint Logistics

S47C

South Queensland as storage; also

accommodates Capability

Acquisition and Sustainment Group

elements

Gallipoli Barracks Ryan Enoggera Accommodates Army’s 7 Combat

S47C

Brigade, Headquarters 16 Aviation

Brigade and Headquarters 11

Brigade, as well as a number of

logistic, support, health and training

units; and the Army Malaria

Institute

HMAS Cairns Leichardt Cairns Homeport for one Armidale Class

S47C

Patrol boat, two Cape Class vessels

and two Leeuwin Class

Hydrographic Survey Ships and

four Paluma Class Survey Motor

Launches; provides operational,

administrative health and logistical

support for Cairns-based fleet units,

visiting ships and resident units

Kokoda Barracks Wright Canungra Major Defence and Army training

S47C

base; accommodates the Defence

Force School of Intelligence and

Army’s Land Warfare Centre

Lavarack Barracks Herbert Townsville Accommodates the Army’s 3

S47C

Brigade (combined arms, – infantry,

artillery and cavalry), and associated

combat support units

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S47C

Chapter 11 – Defence Facts

RAAF Amberley Blair Amberley Home to Combat Support Group

S47C

Headquarters; elements of Air

Combat Group (home base of Super

Hornet squadrons); elements of Air

Mobility Group (home of C-17

Globemaster); associated Capability

Acquisition and Sustainment Group

support elements

RAAF Scherger Leichardt Weipa Bare base. Capable of activation to

S47C

support maritime, air and land

operations

RAAF Townsville Herbert Townsville Home to 27 Squadron, 38 Squadron,

S47C

Army’s 5 Aviation Regiment (Black

Hawk, MHR90 and Chinook),

Combat Survival Training School,

and has an explosive ordnance

disposal capability; site is a joint

user airfield shared with the

Townsville International Airport

Ross Island Barracks Herbert Townsville Multipurpose barracks

S47C

accommodating three major Army

units

Shoalwater

Training Area

S47C

Bay

Capricornia Shoalwater Bay

Training area with capacity to

conduct tri-service military

activities and combined activities

with military forces of other nations

Swartz Barracks Groom Oakey Home of Army Aviation Centre

S47C

which primarily accommodates

Army pilot and aircrew training

activities; also the base for Army

Aviation Command and Capability

Acquisition and Sustainment Group

logistic support functions for Army

aviation

Townsville

Training Area

S47C

Field

Victoria Barracks

Brisbane S47C

Kennedy Townsville Main training area for Army’s 3

Brigade; also plays a role with

international Defence training

Brisbane Brisbane Office accommodation

*Subject of current disposal action – entire site

**Subject of current disposal action – partial site

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Chapter 11 – Defence Facts

South Australia

Establishment Electorate Suburb Description

RAAF Woomera Grey Woomera Woomera Test Range includes and

S47C

airfield and supports the conduct of

air, land and space research and

experimentation, operational test

and evaluation of military weapons

and electronic systems, testing

ground for unmanned and specialist

space vehicles on the western

world’s largest military systems test

and evaluation range. Air Force

provides health services to local

community in partnership with SA

Health

Cultana Training Grey Eyre Peninsula Military training area

Area S47C

Edinburgh Defence Wakefield Edinburgh Multi-site base incorporating RAAF

Precinct S47C

Base Edinburgh, Defence Science

S47C

and Technology Group Edinburgh

and Edinburgh Parks. RAAF Base

Edinburgh is the operational home

and training base for Surveillance

and Response Group’s AP3C Orion

aircraft and 1 Remote Sensor Unit

(Jindalee Operational Radar

Network). Airspace Operations

Support Group including Aircraft

Test and Development Unit. 7 th

Battalion Royal Australian

Regiment is located on RAAF

Edinburgh. Defence Science and

Technology Group Edinburgh has

Defence Science and Technology

Group’s largest laboratory complex.

Edinburgh Parks is office

accommodation

S E C R E T A U S T E O

S47C

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Chapter 11 – Defence Facts

Keswick Barracks Adelaide Keswick Accommodates Army Reserve units

S47C

and Defence functions and activities

including the Army Museum of

South Australia, Capability

Acquisition and Sustainment Group

regional office and Estate and

Infrastructure Group personnel.

Navy Headquarters South Australia

provides administrative support to

Navy personnel working in South

Australia

Woodside Barracks Mayo Woodside Provides home base and non-live

S47C

firing training accommodation for

16 Air Land Regiment

*Subject of current disposal action – partial site

**Subject of current disposal action – partial site

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S47C

Chapter 11 – Defence Facts

Tasmania

Establishment Electorate Suburb Description

Anglesea Barracks Denison Hobart Navy, Army and Air Force

S47C

command elements for Tasmania.

Accommodates a variety of

administrative functions and

training activities and the Military

Museum of Tasmania. Australia

wide corporate services such as

Defence Corporate Card Support

Centre

Derwent Barracks Denison Glenorchy Accommodates Army Reserve Units

S47C

and Defence logistics functions for

Tasmania and Navy Headquarters

Tasmania

Defence Science and Bass Scottsdale Defence Nutrition Research Centre

Technology

S47C

Scottsdale

*Subject of current disposal action – partial site

**Subject of current disposal action – partial site

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Victoria

Establishment Electorate Suburb Description

Albury Wodonga Indi Albury Major training base for Army,

Military Area S47C

Wodonga includes Bandiana and Bonegilla

Bendigo Multi User Bendigo Bendigo Includes Transport Squadron, 8 th /7 th

Depot

S47C

Royal Victoria Regiment,

S47C

Geospatial Analysis Centre and

Thales Bendigo (Project

Bushranger)

Defence Plaza Melbourne Melbourne Office accommodation

Melbourne S47C

Defence Science and Melbourne Fishermans Science and technology facilities

Technology Group Ports Bend

S47C

Fishermans Bend

S47C

Fort Queenscliff Corangamite Queenscliff Defence Archives and an Army

S47C

History Unit and Museum

HMAS Cerberus S47C Flinders Crib Point Navy’s primary initial entry

S47C

(recruit) and initial sailor category

training establishment. Some

advanced and tri-service training is

conducted. Includes West Head

Gunnery Range and Williams Rifle

Range providing large calibre, livefiring

gunnery training

LEA Accredited Test McEwen Monegeetta Conducts testing and evaluation of

Services Monegeetta

Land Material for Capability

S47C

Acquisition and Sustainment Group

and other areas within Defence

Puckapunyal Military McEwen Puckapunyal Army’s centre for combat training

S47C

Area

and doctrinal development;

S47C

accommodates the School of

Armour and School of Artillery

RAAF East Sale

S47C

Gippsland East Sale Airfield and base for air and ground

S47C

training. Includes pilot instructors,

air combat officers, aviation warfare

officers and air traffic controllers of

Air Training Wing and RAAF

Officer Training School (initial

entry). Base for PC9 aircraft

RAAF Williams

S47C

Lalor Laverton and Two sites: Point Cook has an

S47C

Point Cook airfield and Laverton does not.

RAAF Museum historical aircr4aft

fly from Point Cook.

Accommodates a variety of units

including Headquarters Air Force

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Chapter 11 – Defence Facts

S47C

Training Group, Defence Force

School of Languages and Defence

International Training Centre

Simpson Barracks Jagajaga Watsonia A major Army training and Army

S47C

Reserve base also accommodating

two ADF schools (the Defence

Force School of Signals and the

Defence Force School of Music)

Victoria Barracks Melbourne Southbank Office accommodation

S47C

Melbourn

Ports

*Subject of current disposal action – partial site

**Subject of current disposal action – partial site

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Chapter 11 – Defence Facts

Western Australia

Establishment Electorate Suburb Description

Campbell Barracks Curtin Swanbourne Accommodates Army’s Special Air

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Service Regiment

S47C

HMAS Stirling Brand Rockingham Navy’s main west coast operational

S47C

and support base providing

maintenance, training, logistics and

operational support to six Collins

Class submarines, five Anzac Class

frigates, one replenishment ship,

Clearance Diving Team Four and

associated support craft

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Irwin Barracks Curtin Karrakatta Major Army Reserve training,

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logistics support and accommodation

facility in the Perth area

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Leeuwin Barracks Fremantle East Fremantle Accommodates a variety of ADF and

S47C

APS based administrative functions

and training activities

RAAF Curtin Durack Derby Bare base. Capable of activation to

S47C

support maritime, air and land

operations

RAAF Learmonth

S47C

Durack Exmouth Gulf Bare base. Capable of activation to

S47C

support maritime, air and land

operations (co-located with civilian

aviation)

RAAF Pearce

S47C

Pearce Bullsbrook Airfield and base supporting

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advanced flying using PC9 aircraft;

the Republic of Singapore Air Force’s

Flying Training School

*Subject of current disposal action – entire site

**Subject of current disposal action – partial site

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Chapter 11 – Defence Facts

Overseas

Establishment Electorate Suburb Description

RMAF Butterworth

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N/A N/A Leased part of Royal Malaysian Air

Force base – Airfield Combat Support,

permanent detachment of AP3C Orion

aircraft and rotating Army Rifle

Company

*Subject of current disposal action – entire site

**Subject of current disposal action – partial site

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Chapter 11 – Defence Facts

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Summary

S E C R E T A U S T EO

Annex A – Powers and Portfolio Responsibilities of the Minister

Annex A – Powers and Portfolio Responsibilities of the Minister

The Minister for Defence is responsible to Parliament not just for the Department of Defence,

but for all agencies or bodies within the Defence portfolio. Apart from Defence, the Defence

portfolio includes the Department of Veterans’ Affairs.

Within Defence, there are also a wide range of agencies, trusts, companies and other bodies

that are either legislative or administrative creations which are the portfolio responsibility of

the Minister. A number of these bodies are Commonwealth entities for the purposes of the

Public Governance, Performance and Accountability Act 2013, which ensures that the

Minister is kept informed about the operation of these bodies, including through annual report

requirements.

In addition, all ministers are responsible for all legislation and functions allocated by the

Executive to that minister or his or her department. The list of Defence primary legislation

(i.e. Acts) that are at present the responsibility of the Minister under the latest Administrative

Arrangements Order, which formally allocates the legislation to be administered by each

minister (and therefore their agencies), once updated, may be accessed at:

https://www.legislation.gov.au/Browse/ByTitle/AdministrativeArrangementsOrders/InForce

The Administrative Arrangements Order also specifies the general functions of the

Department of Defence.

Defence can only initiate the amendment of legislation it is responsible for under the

Administrative Arrangements Order. Where legislation is the responsibility of another

agency, Defence would have to approach that agency if Defence saw a need for the

legislation to be amended.

Exercise of specific legislative powers and functions of the Minister

In addition, the Minister has specific legislative powers and functions (including decisionmaking

powers and reporting functions) under particular legislation. In broad terms, there are

three categories of specific legislative powers that the Minister may exercise. These are:




Internal administrative powers – These are primarily powers to make statutory

appointments and provide benefits to the ADF. The most significant of these are

the conditions of service benefits under section 58B of the Defence Act 1903.

Powers affecting the public – These include relatively minor powers dealing with

the approval of the use of logos and words associated with Defence, and with

building height notification and application requirements under the area control

regime around Defence airfields. The Minister also approves practice areas and

makes submissions to the Governor-General for the declaration of naval waters.

Matters of national sensitivity – These include essentially administrative roles

under sensitive regimes such as declaring special undertakings, issuing notices and

permits under the Weapons of Mass Destruction and the Defence Trade Controls

regimes and publishing the Defence Strategic Goods List. The most significant

legislation within this category is Part IIIAAA of the Defence Act 1903, which

deals with the use of the ADF in relation to domestic violence such as terrorist

incidents.

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S E C R E T A U S T EO

Annex A – Powers and Portfolio Responsibilities of the Minister

Decisions taken under specific legislative powers are subject to review in the courts and

under the administrative law regime, including by:



the Ombudsman, whose office has a general jurisdiction to consider complaints

relating to Commonwealth bodies, and the Defence Force Ombudsman with

particular responsibilities with respect to ADF members;

the Administrative Appeals Tribunal, which can review the merits of a decision if

some legislative provision has given it jurisdiction to consider under the exercise

of the particular power;

the Federal Court, under the Administrative Decisions (Judicial Review) Act 1977,

unless jurisdiction to consider the exercise of the particular power has been

explicitly excluded by a legislative provision (which is rare); and


the High Court, through its original jurisdiction under the Constitution including

the prerogative writs.

Decisions may also be challenged under human rights legislation.

More broadly, the Freedom of Information Act 1982 enables members of the public to obtain

access to Commonwealth documents, which can lead to decisions being challenged or

publicly scrutinised. In addition, the Privacy Act 1988 sets out privacy principles, which set

out standards for the collection, use, quality and security of personal information. The

principles also create requirements governing access to, and correction of, such information

by the individuals concerned.

The Prime Minister, in consultation with the Minister, can allocate various responsibilities to

the junior minister(s). Where a matter is allocated to the junior minister(s), they will

ordinarily be able to exercise any powers or functions on behalf of the Minister unless the

legislative provision specifies a particular minister, such as the Minister for Defence. In

practice, the latter situation usually occurs where the Minister has a specific power in

legislation administered by another department.

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Strategic Defence Interests

S E C R E T A U S T EO

Annex B – 2016 Defence White Paper

Annex B – 2016 Defence White Paper

(U) The 2016 Defence White Paper policy settings reflect Defence’s response to the strategic

challenges. The six drivers of the security environment in the 2016 Defence White Paper are:

1. The roles of US and China.

2. The stability of the rules-based global order.

3. The enduring threat of terrorism.

4. State fragility in our region.

5. Military modernisation in our region.

6. Emergence of complex non-geographic threats such as cyber.

(U) Three Strategic Defence Interests were developed as a sub-set of national interests for

which the government may want to apply military power.

(U) The three Strategic Defence Interests are:




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.

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

Strategic Defence Objectives

(U) Subordinate to the Strategic Defence Interests are the Strategic Defence Objectives.

These guide the development of a credible and capable ADF and describe what is expected of

Defence to achieve the Strategic Defence Interests.

(U) The three Strategic Defence Objectives are:




Deter, deny and defeat attacks on or threats to Australia, its national interests, and

northern approaches.

Make military contributions to support the security of maritime South East Asia

and support the Governments of the South Pacific states to build and strengthen

their security.

Contribute military capabilities to coalition operations that support Australia’s

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

(U) Defence is preparing further classified planning guidance (the Defence Planning

Guidance) to guide internal planning and implementation of the 2016 Defence White Paper.

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Capability Enhancements

S E C R E T A U S T EO

Annex B – 2016 Defence White Paper

(U) While the future force will have a greater capacity to do more, on a global scale the ADF

will remain a relatively small force with limits to the number and types of missions that could

be conducted concurrently. Key force capability enhancements were outlined as:








Intelligence, Surveillance, Reconnaissance, Electronic Warfare, Space and Cyber.

To ensure our forces can operate effectively and safely in our region and globally,

they need a comprehensive picture of what is happening around them.

Strike and Air Combat. A potent air combat and strike capability is needed to

ensure our forces can defend and control the air, and attack targets at distance

from deployed bases and Australian territory. This will be enhanced through a

better integration of systems and platforms for air defence, which will also provide

the foundation for Integrated Air and Missile Defence.

Maritime Warfare. A maritime force that can conduct more challenging maritime

warfare operations and sustain concurrent operations for longer periods is required

to meet the challenges of the future environment.

Land Combat and Amphibious Warfare. While relatively small on a global scale,

our land force is world class and has performed exceptionally well with a high

operational tempo for more than a decade. The introduction of the Canberra Class

amphibious ships (Landing Helicopter Docks) provides new options for

deployment and support of land forces across the region and will require us to

reshape some elements of our land capabilities to capitalise on this capability.

Air and Sea Lift. Given the huge distances over which the ADF must operate – in

our own region let alone globally – capable, flexible and high endurance air and

sea lift capabilities are essential.

Key Enablers. The future force structure includes appropriate investment in the

enablers needed to support and maximise our Defence capability. This includes

investment in maintaining critical infrastructure; training and weapons ranges; and

essential corporate enterprise enablers such as ICT.

Workforce. The future workforce (both ADF and APS) will need to be re-shaped

to meet the demands of a higher-technology future force, including increased

intelligence collection and analysis, cyber operations, space and electronic

warfare, critical engineering and technical trades, policy and capability

development.

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S E C R E T A U S T EO

Annex B – 2016 Defence White Paper

Key investments

(U)

The previous government committed to Defence capability investment to 2025-26 of:





Comprehensive regeneration of maritime and anti-submarine warfare

capabilities. Acquisitions (~25%). Acquisitions include:

o Three Air Warfare Destroyers, nine anti-submarine warfare future frigates, 12

offshore patrol vessels, and 12 submarines that are highly interoperable with

US forces.

o New manned and unmanned maritime surveillance and response aircraft

including an initial tranche of eight P-8A Poseidon maritime response aircraft

in the early 2020’s, followed by seven additional aircraft by the late 2020’s

(for a total of 15), as well as seven MQ-4C Triton unmanned surveillance

aircraft.

Enhanced intelligence, surveillance and reconnaissance, space, electronic

warfare, and in cyber capabilities (~9%), including:

o Enhanced imagery capability through greater access to space-based

capabilities and stronger analytical capacity and support.

o Enhancements to our broad area surveillance through MQ-4C Triton and

enhancements to the Jindalee Operational Radar Network.

o Strengthening Defence’s cyber workforce and systems over the next decade.

o 12 E/A-18G Growler aircraft and a new long-range capability based on the

Gulfstream G550 airframe which will provide enhanced electronic warfare

support.

o Upgrading existing air defence surveillance systems and self-protection for

our forces to better guard against ballistic missile threats.

Enabling capabilities (~25%), including:

o Critical infrastructure such as bases, training ranges, wharves, airfields, health

service and logistics systems – including fuel and explosive ordnance

facilities.

o Information and communication technology architecture – the modernisation

of which will be supported by $5 billion in additional funding over the

decade.

o The force design and policy capabilities that support a more active and

internationally engaged defence posture.

Air and sea lift capabilities to help overcome the substantial distances over

which the ADF must operate (~6%):

o Airlift capability will be increased to include eight C-17A Globemaster

transport aircraft, 12 upgraded C-130J Hercules, 10 C-27J Spartans, three

more CH-47F Chinook helicopters (for a total of 10), and another two KC-

30A air-to-air refuellers (a total of nine).

o Sealift capability will be boosted with an extension and upgrade for the

logistics ship HMAS Choules and the acquisition of two replenishment ships.

o A large-hulled, multi-purpose patrol vessel has been acquired to support

whole-of-Government border protection and maritime security efforts.

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S E C R E T A U S T EO

Strike and air combat capabilities (~17%):


Concurrency

Annex B – 2016 Defence White Paper

o The fleet of 24 F/A-18F Super Hornets and 72 F-35A Lighting II Joint Strike

Fighters (from 2020) will be supported by E-7A Wedgetail airborne early

warning and control aircraft and new long-range strike and anti-ship weapons.

Land combat and amphibious warfare capabilities (~18%), including:

o continuous upgrades to soldiers’ personal equipment and force protection;

o new armoured combat reconnaissance and infantry fighting vehicles and

protected mobility vehicles, as well as upgraded tanks;

o a new long-range rocket system that complements existing artillery;

o new armed intelligence, surveillance and reconnaissance unmanned aircraft;

o upgrades to Canberra class amphibious ships; and

o a fleet of light helicopters and a range of special equipment and weapons to

support Special Forces operations.

(S AUSTEO) The future force will be more capable and will be able to undertake a larger

number of tasks concurrently. For example:

s33(a)(ii)

International Engagement

(U) The future force will conduct a broader and deeper program of engagement with

international partners to shape, over time, a positive strategic environment in support of our

policy interests, and to enhance and maintain the ability of the ADF and Defence to operate

internationally. This includes increased deployments across all domains, more training and

exercise programs, exchanges of embedded personnel, and a greater presence of ADF and

Defence APS personnel overseas as outlined in the Defence International Engagement

Strategy.

(U) This enhancement to our international defence engagement is based upon four objectives:





enhance Defence capability;

generate and sustain Australia’s strategic weight;

generate active and effective security partnerships; and

enhance international security resilience.

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S E C R E T A U S T EO

Annex B – 2016 Defence White Paper

(U) A strong and deep alliance with the US is at the core of Australia’ security and defence

planning:







The US will continue to be Australia’s most important strategic partner and the

active presence of the US will continue to underpin the stability of our region.

The US strategic rebalance to the Indo-Pacific region is strongly supported by

Australia including through the US Force Posture Initiatives.

Access to advanced technology and equipment from the US and maintaining

interoperability is central to maintaining the ADF’s potency.

The nuclear and conventional military capabilities of the US also offer effective

deterrence against nuclear threats against Australia.

The ANZUS alliance, and Australia’s membership of the Five-Eyes intelligence

community (comprising Australia, the US, NZ, the UK and Canada) provides

Australia with information superiority and intelligence cooperation that is a vital

input to our defence planning.

The US will continue to look to other partners, including Australia, to share the

burden of international security and make meaningful contributions to

international coalitions.

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Annex B – 2016 Defence White Paper

Intentionally blank

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Annex C – First Principles Review

Annex C – First Principles Review

(U) Delivering on the objectives of the 2016 Defence White Paper requires Defence to

successfully implement the First Principles Review, ensuring that Defence is appropriately

structured and organised and has the right business practices in place.

(U) Defence is one year into the two year implementation of the First Principles Review,

which commenced on 1 July 2015. A strong governance regime has been implemented with

weekly reports to the Implementation Committee which is the decision-making body chaired

by the Secretary. The five work streams (behaviours, strategic centre, capability life cycle,

enablers and workforce) are all led by members of the Defence Committee. The Oversight

Board (Mr David Peever (Chair), Professor Peter Leahy, Mr Robert Hill, Mr Lindsay Tanner,

Mr Jim McDowell and Ms Erica Smyth) reports directly to the Minister for Defence and is

meeting regularly and monitoring progress.

(U) Implementation is progressing to plan and as at 23 May 2016, 36 recommendations have

been completed with 39 remaining.

(U) Behaviours and accountability have been strengthened through the following activities:








The Ministerial Directive for Defence was updated and clearly describes the

individual and shared accountabilities of the Secretary and CDF.

The Defence Legislation Amendment (First Principles) Act 2015 will come into

effect on 1 July 2016 and formally recognises the authority of the Chief of the

Defence Force and the Vice Chief of the Defence Force.

The role of Service Chiefs as Capability Managers has been strengthened,

clarifying that they are responsible for identifying, developing and delivering

Defence’s capability needs.

Flowing from these changes, role charters for all members of the Senior

Leadership Group have been established, setting out individual and shared

accountabilities, decision rights and the agreed leadership behaviours.

In an effort to reinforce personal accountability, a 360° feedback process has been

introduced for Senior Executive Service officers. This has been mapped to

leadership behaviours and individual feedback is being provided to each

participant.

A new approach to Senior Executive Service performance agreements has been

implemented to reinforce the agreed leadership behaviours. While results are

important, the performance assessment of the Senior Executive Service officers

over the next two years will be weighted towards behaviours.

Accountabilities relating to information management have been clarified,

signalling Defence’s transition towards a more enterprise-focused approach to

information management.

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S E C R E T A U S T E O

Annex C – First Principles Review

(U) Strengthening decision-making has also involved a reduction in the number of senior

committees and clarity about the role and function of the three senior committees. The

Defence Committee has a smaller membership and continues to be the primary decisionmaking

body in Defence. It is now supported by the Enterprise Business Committee which

monitors in-year performance of the organisation and the Investment Committee which

manages future investments and is responsible for maintaining the integrity of the Integrated

Investment Program released with the 2016 Defence White Paper.

(U) The Strategic Policy and Intelligence Group was established on 8 February 2016. This

Group consolidates the policy and intelligence functions across Defence. This will improve

the quality of our advice and ensure it is aligned with strategy, plans and resource allocations.

(U) Structural changes have been made to address the Review’s recommendations:




The reduction of seven Band 3 positions and one 3-star position.

A voluntary redundancy program for public service staff.

A review of ADF headquarters, with recommendations currently being finalised

for implementation.

Redesigning the Capability Life Cycle – Delivering on Government Decisions

(U) The new Capability Life Cycle brings force design, contestability and smart buyer

components together with an investment approval process that is simpler and tailored to the

risk and complexity of projects.

(U) Transitioned to the new Capability Life Cycle commenced on 1 April 2016.

(U) Defence has agreed a detailed design, which has five key changes to give effect to the

intent of the First Principles Review:






(U) Strategy-led decision making with stronger governance mechanisms.

(U) Arms-length contestability to improve the quality of decision making.

(U) An enduring strategic centre-led, systematic force design process to design the

future force in accordance with Government direction.

(U) Comprehensive management of the Integrated Investment Program to

reinforce focus on joint, whole-of-Defence planning and to optimise use of

resources.

(U) Becoming a smart buyer across the Capability Life Cycle in developing

tailored approval processes and project management, acquisition and sustainment

strategies based on a thorough analysis of project risks.

Progress Reports to Government

The First Principles Review recommended that the Minister, with input from the Department

and implementation Oversight Board, report progress to Government S47C

S47C

S47C

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S E C R E T A U S T EO

Annex D – Bodies within the Defence Minister’s Portfolio

Annex D – Bodies within the Defence Minister’s Portfolio

(U) Below are the bodies reported by Defence on the Australian Government Organisations

Register (AGOR) as maintained by the Department of Finance.

Non-Corporate Commonwealth Entities

Department of Defence

Department of Veterans’ Affairs

Corporate Commonwealth Entities

Army and Air Force Canteen Services

Australian Military Forces Relief Trust Fund (Army Relief Trust Fund)

Defence Housing Australia

Royal Australian Air Force Veterans’ Residences Trust Fund

Royal Australian Air Force Welfare Trust Fund

Royal Australian Navy Central Canteens Fund

Royal Australian Navy Relief Trust Fund

Commonwealth Companies

AAF Company (Army Amenities Fund Company)

Australian Strategic Policy Institute Limited (ASPI)

Royal Australian Air Force Welfare Recreational Company

Advisory Bodies – Policy and Stakeholder Consultation

Air Force Board

Australian Defence Force Financial Services Consumer Council

Australian Defence Human Research Ethics Committee

Capability Development Advisory Forum

Defence Families Australia

Defence Industry Innovations Board

Defence Reserve Support Council

Forces Entertainment Board

Rapid, Prototyping, Development and Evaluation Board

Religious Advisory Committee to the Services

Strengthened Export Controls Steering Group

Woomera Prohibited Area Advisory Board

Asia Pacific Centre for Military Law

Australian Maritime Defence Council

First Principles Review Oversight Board

Future Submarine Competitive Evaluation – Expert Advisory Panel.

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S E C R E T A U S T EO

Annex D – Bodies within the Defence Minister’s Portfolio

Statutory Office Holders, Offices and Committees

Australian Army

Chief Judge Advocate

Defence Force Advocate

Director of Military Prosecutions

Inspector-General of the Australian Defence Force

Judge Advocate General and Deputy Judge Advocate Generals

Royal Australian Air Force

Defence Housing Australia Advisory Committee

Director of Defence Counsel Services

Office of Reserve Service Protection

Register of Military Justice

Royal Australian Navy

Non-Statutory – Function with Separate Branding within a Non-Corporate

Commonwealth Entities

Australian Cyber Security Centre

Australian Defence College

Australian Government Security Vetting Agency

Australian Imagery and Geospatial Organisation (Name on AGOR is listed as

Australian Geo-Spatial Intelligence Organisation)

Australian Signals Directorate

Defence Intelligence Organisation

Defence Science and Technology Organisation (renamed post First Principles Review

as Defence Science and Technology Group)

Australian Hydrographic Service

Young Endeavour Youth Scheme

Inter-Jurisdictional and international Bodies

Australian Government Defence Export Support Forum

Subsidiaries of Corporate Commonwealth Bodies and Commonwealth Companies

DHA Investment Management LTD

Joint Ventures, Partnerships and Interests in Other Companies.

Defence Health Ltd

Crace Developments – Investments in Associates

Lyons Joint Venture

Navy Health Ltd

The Sanctuary – Wattle Grove – Interest in Joint Venture Development

(U) Additional bodies that are not reported on the AGOR, but relate to Defence are:

Defence Force Remuneration Tribunal

The Australian Navy Cadets

The Australian Army Cadets

The Australian Air Force Cadets

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

Annex E – Talking Points for Counterpart Calls:

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Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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133


S E C R E T A U S T EO

S47C

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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Annex E – Talking Points for Counterpart Calls

s33(a(iii)

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135


S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S E C R E T A U S T EO

Annex E – Talking Points for Counterpart Calls

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Annex E – Talking Points for Counterpart Calls

s33(a)(iii)

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S47C

Annex E – Talking Points for Counterpart Calls

Intentionally blank

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Annex F – Defence Science and Technology

Annex F – Defence Science and Technology

(U) Defence Science and Technology Group (DST Group) provides value to Australia’s

defence and national security through its capacity to reduce and mitigate strategic and

operational risks and to create and maintain a capability edge.

Strategic

(U) DST Group reduces risk in Defence’s core business – defence operations,

intelligence, capability development and integration. It does this by providing specialist

advice and innovative technology solutions that are grounded in research and are independent

of commercial or non-Government research interests.

(U) DST Group strengthens strategic capability by building unique, collaborative

international partnerships that enable access to classified government and compartmented

technologies not otherwise available.

(U) By building partnerships with academia, industry and other government departments,

DST Group explores the impact of emerging technologies that can potentially create and

prevent strategic surprise. DST Group is uniquely placed to take a longer term perspective to

mature and de-risk ground-breaking technologies prior to industry transition.

Operational

(U) DST Group strengthens operational capability through the provision of scientific

advice and technology solutions that enhance and adapt defence capability to our unique

circumstances. This includes providing benefits in terms of military efficiency, effectiveness,

readiness, sustainability and reducing losses.

(U) DST Group enhances operational capability through the research, development,

testing, evaluation, and modification of new and existing warfighting systems for the ADF.

(U) DST Group reduces the cost of ownership and increases the availability of Defence

capability through technical advice based on modelling, risk analysis, experimental testing

and life extension work.

Key facts:




(U) Budget for 2016-17: $438 million

(U) Staff: approx. 2,128 Full Time Equivalents (predominantly scientists)

(U) Seven Research Divisions

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Annex F – Defence Science and Technology

Location

(U)

DST Group is located at the following core sites:








Fairbairn – within the Canberra International Airport precinct

Edinburgh – adjacent to RAAF Base Edinburgh in Adelaide

Fishermans Bend – Port Melbourne

Scottsdale – east of Launceston in Tasmania

Garden Island – HMAS Stirling

Eveleigh – within the New South Wales Government’s technology park, Sydney

Pullenvale – CSIRO’s Queensland Centre for Advanced Technologies near

Brisbane

DST Group Structure

(U) The Chief Defence Scientist leads the Group through the DST Group Leadership

Team. The team comprises the Chiefs of the following Divisions (and the DST Group Chief

Finance Officer):











Land Division

Maritime Division

Aerospace Division

Joint and Operations Analysis Division

National Security and Intelligence, Surveillance and Reconnaissance Division

Cyber and Electronic Warfare Division

Weapons and Combat Systems Division

Science Strategy and Programs

Science Partnerships and Engagement

Research Services

DST Strategic Plan 2013-2018

(U) The DST Strategic Plan sets the high-level direction for DST Group. The Strategic

Plan is a living document which is updated annually to measure progress and align with

Defence priorities including the First Principles Review and the 2016 Defence White Paper.

(U) The core of the Plan is to build on DST Group’s strength of being a valued adviser to

government and to focus its efforts towards future Defence and national security capability

by being a collaborative partner and an innovation integrator.

(U)

The Plan is being implemented through the following 10 strategic initiatives:

1 Science and technology excellence.

2 Strategic engagement with client focus.

3 Big-picture analysis on the shape of Defence.

4 Grand Challenges for Safeguarding Australia.

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Annex F – Defence Science and Technology

5 Fostering innovation.

6 Invigorating Australia’s research efforts in national security.

7 Leadership, accountability and performance management.

8 Talent, diversity and career development pipeline.

9 Transformation of ICT to drive innovation and collaboration.

10 Best practices for business processes and administration.

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Annex F – Defence Science and Technology

Intentionally blank

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Annex G – Projects of Concern

Annex G – Projects of Concern

Key Issues





(U) Projects of concern are the most challenging projects in the Defence portfolio that are

underperforming and have significant risks or issues relating to schedule, cost or

capability.

(U) The reporting regime provides additional support to remediate the project and deliver

sound capability and value-for-money outcomes to Defence. If these outcomes cannot be

achieved, project or contract cancellation may be considered.

(U) The management overhead of projects of concern is only considered worthwhile for

projects with high degrees of uncertainty and complexity.

(U) Defence maintains the ability to consider a tenderer’s projects of concern status in its

procurement decisions.

Summary

(U) The projects of concern list was established in 2008 as a remediation regime to identify

acquisition projects or sustainment activities experiencing significant risks or issues relating

to schedule, cost or capability.

(U) Entry to and exit from the projects of concern list are agreed by the Minister for Defence,

on advice from Deputy Secretary, Capability Acquisition and Sustainment Group.

(U) The aim of the projects of concern process is to understand the underlying causes and

issues for troubled projects, to support early intervention, and to establish remediation

objectives which align all parties to a common plan of action.

(U) Individual projects on the projects of concern list participate through:

a. Monthly progress reports to departmental senior executives, which are also

verbally briefed to the Minister’s office.

b. Bi-annual summits between Government, Defence and Industry stakeholders.

(FOUO) Since 2008, 23 projects have been listed as a project of concern, with a total value

over $31.7 billion. Of these 23 projects:

Reporting

a. 16 projects have been remediated and removed from the list;

b. five projects remain on the list, with a total value of $13.9 billion; and

c. two projects were cancelled; Seasprite helicopters in March 2008 ($990 million)

and the amphibious watercraft for HMAS Kanimbla and Manoora in February

2011 ($57 million).

(U) The department provides an unclassified statement on each project of concern to the Joint

Standing Committee on Foreign Affairs, Defence and Trade prior to each estimates hearing.

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Annex G – Projects of Concern

Summit

(U) The Projects of Concern Summit is the key forum where senior stakeholders from

Government, the Department of Defence and defence industry (including overseas companies

where applicable) meet to discuss and agree the way forward for the projects.

(U) Planning for the next Summit will commence shortly, noting the requirement for a two

month planning window.

(FOUO) The frequency of the Projects of Concern Summit is a key contributor to achieving a

successful outcome for each project. Defence considers that scheduling a six-month interval

between meetings provides an appropriate timeframe for treating the complex risks

associated with projects of concern.

Current Projects of Concern (FOUO)

Project Date Listed / Reason Planned Removal Point

Collins Submarine

Sustainment – CN 10

Nov 2008 – Poor

Submarine

availability.

S47C

MRH-90 Helicopters –

AIR 9000 Phases 2, 4 &

6

Nov 2011 – Technical

and contractor

performance issues.

Mulwala Redevelopment

Project – JP 2086 Phase

1

Air Warfare Destroyers –

SEA 4000 Phase 3

ADF SATCOM

Terrestrial Enhancement

– JP 2008 Phase 3F

Dec 2012 –

Technical, schedule

and cost risks.

Jun 2014 – Cost

overruns and schedule

delays.

Sep 2014 – Schedule

and contractor

performance issues.

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Annex H – People

Key Issues





Annex H – People

(U) APS numbers are trending downwards, while ADF numbers are trending upwards in

accordance with approved allocations.

(U) The APS Enterprise Agreement expired June 2014, and two pay offers have been

voted down.

(U) Defence has implemented educational and mental health promotion initiatives to

reduce stigma and encourage ADF members to seek help early for mental health concerns.

(U) Defence has undertaken a number of activities to respond to the concerns raised about

the use of antimalarial medications mefloquine and tafenoquine.

Workforce (data as at 1 May 2016)

Australian Public Service (APS)

(U) This financial year the Defence Australian Public Service workforce reduced by 1,089

(-5.8%) Full Time Equivalent (FTE) from 18,722 at Pay 1 (2 July 2015) to 17,633 at Pay 22

(21 April 2016).

(U) The Australian Public Service headcount was 18,706 (ongoing 18,594 and non-ongoing

112), which is 1,451 less than the same time last year.

(U) The Australian Public Service separation rate (ongoing employees only) is 10.8%, which

is higher than 12 months ago (7.4%).

(U) 41.1% of Defence Australian Public Service (ongoing) employees are female.

(U) 27.7% of the Senior Executive Service are female.

(U) Over the last 12 months there has been an improvement in the representation of ongoing

Australian Public Service employees who identify as Aboriginal and/or Torres Strait Islander

origin (from 1.2% to 1.8%), who identify as a person with a disability (from 3.3% to 3.4%)

and who are from non-English speaking background (from 14.5% to 14.7%).

Australian Defence Force (ADF)

(U) This financial year the ADF workforce increased by 546, from a funded strength of

57,715 at Pay 1 (2 July 2015) to 58,261 at Pay 22 (21 April 2016). These figures include

permanent, Reserve members on Continuous Full Time Service and Gap Year members.

(U) The Average Funded Strength achievement of 57,959 against guidance of 59,126,

represents an underachievement of 1,167 (-2.0%).

(U) The ADF 12 month rolling separation rate is 8.5%, which has decreased from the same

time last year (9.3%)

(U) 15.5% of the ADF permanent workforce (excluding Continuous Full Time Service) is

female (Navy 19.1%; Army 12.2%; and Air Force 19.1%). The number of females serving in

the ADF is 231 more than the same time last year (Navy +62; Army +97; and Air Force +72).

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Annex H – People

(U) Over the last 12 months there has been an improvement in the representation of

permanent Australian Defence Force members who identify as Aboriginal and/or Torres Strait

Islander origin (from 1.5% to 1.7%) and who are from non-English speaking background

(from 5.8% to 6.0%).

New Defence Enterprise Agreement

(U) The Defence Enterprise Collective Agreement (DECA) 2012-2014 nominally expired on

30 June 2014, but continues to operate until replaced. Defence commenced formal bargaining

with unions and bargaining representatives on a replacement agreement in September 2014.

(U) Defence’s current offer to staff under the proposed new Enterprise Agreement is a 6 per

cent pay rise over three years. This is affordable and is the maximum pay increase Defence

can provide under the current Bargaining Policy.

(U) The proposed new Enterprise Agreement retains core employment conditions.

Productivity for the pay rise will be achieved by having a simple, clear and easy to read

Enterprise Agreement.

(U) Two votes on the proposed new Enterprise Agreement have been held between

25 February and 1 March 2016, and 28 April and 3 May 2016. Both were not supported by

staff. Voting statistics for these votes were:

28 April – 3 May: 84.04% of staff voted, of which 54.86% voted ‘no’ and 45.14%

voted ‘yes’.


25 February – 1 March: 80.96% of staff voted, of which 50.91% voted ‘no’ and

49.09% voted ‘yes’.

(U) Information sessions with staff were held at over 60 sites nation-wide prior to each voting

period. Information sessions were led by the Defence Senior Leadership.

ADF Workplace Remuneration Arrangement

(U) ADF members (other than Statutory Office Holders) are paid under the ADF Workplace

Remuneration Arrangement, and receive remuneration in the form of separate payments for:






a base salary;

Service Allowance (all ranks up to the rank of Major or equivalent);

an employer superannuation component;

other ‘environmental allowances’ for which they may be eligible, such as Maritime

Disability Allowance, Field Allowance or Flying Disability Allowance (which are

allowances compensating individuals for the environment they operate in and

arduous nature of work); and

other benefits including leave and reimbursements.

(U) On 3 November 2014, the independent Defence Force Remuneration Tribunal approved

the 2014-2017 ADF Workplace Remuneration Arrangement.

(U) The Defence Force Remuneration Tribunal approved a pay increase of 4.5 per cent over

the three year life of the Arrangement, via three identical instalments of 1.5 per cent.

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Annex H – People

(U) On 4 March 2015, the previous government announced an adjustment to the ADF

Workplace Remuneration Arrangement framework, which comprises a pay increase of 2 per

cent per annum for the remaining life of the 2014 Arrangement.

(U) On 1 December 2014, the previous government removed the requirement for the

Arrangement productivity gains, reinstating ADF members leave provisions, food and

travelling allowances.

(U) The current Arrangement lapses 1 November 2017.

(U) To date, ADF members have been paid the 1.5 per cent pay increase from November

2014; the additional 0.5 per cent from 30 July 2015 (back dated to 12 March 2015); and 2 per

cent from 5 November 2015.

(U) The final annual increase of 2 per cent will be paid from 3 November 2016.

(U) The total cost of the Workplace Remuneration Arrangement over the three years (to

November 2017) is $838 million.

(U) Consultation and engagement with key stakeholders regarding the 2017-2020 Workplace

Remuneration Arrangement will commence in the coming months.

ADF Superannuation

(U) The concept of a new military superannuation scheme (ADF Super) was introduced in

2014-15, for people joining the ADF from 1 July 2016. ADF Super includes a statutory death

and invalidity scheme, called ADF Cover.

(U) The Bills to establish ADF Super (including ADF Cover) were given Royal Assent on

10 September 2015.

(U) ADF Super is a fully funded accumulation scheme, with an employer contribution rate of

16.4 per cent.

(U) ADF Super recognises the need for superannuation flexibility to accommodate modern

working/lifestyle arrangements of ADF members. For new permanent ADF members, and

serving or returning Military Superannuation and Benefits Scheme (MSBS) members,

ADF Super means:




choice for individuals over which superannuation fund they belong to;

portability of their superannuation benefit; and

workforce flexibility will be supported, which is an important reform being

introduced under the future ADF Total Workforce Model.

(U) The ADF Super and ADF Cover schemes came into effect on 1 July 2016 and are

administered by the Commonwealth Superannuation Corporation on behalf of Defence.

Defence has provided additional resources ($8.7 million in 2015-16) to Commonwealth

Superannuation Corporation to support the development and implementation of these

schemes.

(U) The 2016-17 Budget contains several superannuation initiatives designed to improve

sustainability in the superannuation system. These initiatives will affect members of the ADF

and APS employees. The most significant relates to changes to concessional contribution

gaps.

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Annex H – People

(U) Due to higher than average contribution rates in public sector schemes, the new caps will

be reached by members and employees at income levels of around $140,000. This includes,

for example, almost all members Lieutenant Colonel (and equivalent) and above, and

Sergeant (and equivalent) in Special Forces and submarines. In the APS, this will generally

only affect the Senior Executive Service, with some exceptions.

(U) Military superannuation arrangements have higher than average contribution rates and a

unique form of death and invalidity cover in recognition of the unique nature of military

service.

Project Suakin (ADF Total Workforce Model)

(U) Project Suakin introduces the ADF Total Workforce Model, which is designed to enable

the generation and sustainment of Australian Defence Force capability through workforce

flexibility.

(U) The foundation of the ADF Total Workforce Model is the Service Spectrum, which

enables ADF members to move across a range of service categories and service options as

their personal circumstances and priorities change.

(U) The flexibility that the ADF Total Workforce Model provides ensures that the ADF

remains contemporary and is a competitive Australian employer.

(U) In preparation for implementation, the three Services are focusing on the development

and review of internal business processes, procedures and change and communication plans.

ADF Mental Health

(U) An estimated one in five ADF members has had a mental health condition in the previous

12 months, not necessarily caused by operational service.

(U) ADF members have access to high-quality and integrated health (including mental health)

treatment, and occupational rehabilitation in response to illness and injury arising from

operational and non-operational activities.

(U) Since 1 January 2000, 117 full-time serving Defence members are suspected or confirmed

to have died by suicide.

(U) Defence has implemented a number of educational and mental health promotion

initiatives to reduce stigma and encourage ADF members to seek help as early as possible for

mental health concerns. This includes mandatory training on suicide prevention awareness.

(U) Defence and the Department of Veterans’ Affairs have established a strong collaborative

partnership in the development of shared mental health awareness resources, research

initiatives and rehabilitation and transition processes to improve early recognition and

strengthen continuity of care arrangements where these are required.

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Annex H – People

Reform

(U) The Senate Inquiry conducted by Foreign Affairs, and Defence and Trade Reference

Committee into The mental health of Australian Defence Force (ADF) personnel who have

returned from combat, peacekeeping or other deployment was tabled in parliament on 17

March 2016. The report acknowledged the commitment and work already undertaken by

Defence through the ADF Mental Health and Wellbeing Strategy and contained 17

recommendations from the committee and eight additional recommendations from the

Australian Greens. Defence has contributed to the draft Government Response that is being

coordinated by the Department of Veterans’ Affairs.

(U) Since 2009, Defence has implemented all 52 of the Mental Health Care in the ADF and

Transition to Discharge (Dunt Review) recommendations: invested over $196 million in

mental health services and support (as at 30 May 2016); improved policy and training for

Defence health professionals; increased mental health research and surveillance, strengthened

resilience training and prevention initiatives, expanded mental health awareness programs and

improved access to mental health treatment and rehabilitation.

Provision of Care and Rehabilitation in the ADF

(U) Defence members can and do seek treatment and occupational rehabilitation which

enables them to maintain meaningful and productive lives within the ADF. No matter what

the cause or source of the mental health illness or injury ADF members can access a range of

primary and specialist mental health care relevant to their clinical needs through the Garrison

Health Services.

(U) Defence members and their families can also access counselling support through self or

defence based referral arrangements with the Veterans and Veterans Families Counselling

Service. Access to treatment is also available to defence members through the non-liability

health care arrangements administered by the Department of Veterans’ Affairs.

The Invictus Games

S47C

(U) The Invictus Games is an international adaptive sports competition conceived by HRH

Prince Harry and run by selected host nations under licence from the Invictus Games

Foundation. The Games involve serving and former-serving personnel who have been

wounded, injured or ill during their military service, competing in sports including wheelchair

basketball, para-cycling, sitting volleyball, archery and indoor rowing.

(FOUO) The Invictus Games concept promotes the role of sport in supporting rehabilitation

and recovery. In March 2015, Deloitte Australia approached the previous government to

discuss the concept for Australia to host the Invictus Games in 2018.

(FOUO) This initiative was supported by then-Minister for Veterans’ Affairs, Hon Stuart

Robert MP. A Steering Committee was formed to consider a formal bid to host the Invictus

Games in 2018. Australia’s bid was formally submitted on 29 February 2016 and remains

under consideration.

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Annex H – People

(FOUO) s47C

s47C

It is anticipated some logistics and

infrastructure support will be required. The Committee includes representatives from Deloitte,

Ensemble Australia, the Returned Services League, the ADF, Department of Veterans’

Affairs and the Paralympic Committee. A provisional license has been awarded to Australia

from the Invictus Games Foundation. On 22 April 2016, the Australian International Military

Games company was registered with the Australian Securities and Investments Commission.

Suicide Prevention in the ADF

(U) The ADF has in place a suicide prevention approach that incorporates policy guidance for

individuals, commanders and health professionals and delivery of specific suicide prevention

awareness and skills training.

(U) There is no clear association between deployment and suicide in the ADF at a population

level. Of the 117 deaths since 2000, 64 defence members had never deployed. When matched

for age and gender demographics the prevalence of suspected and confirmed deaths by suicide

in the ADF appears lower than in the general community.

(U) A suicide data matching study is being conducted by the Department of Veterans’ Affairs

and Defence by the Australian Institute of Health and Welfare. This study will establish the

number of ex-Defence members who have died by suicide since 2000. This study is being

done in response to concerns about a growing number of deaths by suicide by ex-defence

members in recent years following the high operational tempo.

Mefloquine

(U) Mefloquine is a third line anti-malarial medication that it is only prescribed by Defence

when other medications are clinically inappropriate.

(U) The Inspector General of the ADF is currently engaged in an inquiry into allegations

relating to the conduct of trials in Timor Leste (between 2000-2002) involving mefloquine.

Mefloquine use in the ADF

(U) Mefloquine has been registered by the Therapeutic Goods Administration for the

treatment of malaria since 1988 and for malaria prevention since 1993. It is estimated that

1897 ADF members have been prescribed mefloquine between July 2000 and 30 June 2015.

Most (1319) received mefloquine during Army Malaria Institute trials conducted in Timor

Leste in 2000-2002.

Mefloquine side-effects

(FOUO) Mefloquine can have uncommon but potentially severe central nervous system sideeffects

and it has been associated with attempted and completed suicide. Side-effects usually

resolve fully within days to weeks of ceasing the medication. In rare cases, the neurological

side-effects may persist for months or be permanent.

(FOUO) The database of the 117 ADF members (as at 19 May 2016) known or suspected to

have committed suicide has been cross checked against ADF prescribing data on mefloquine

since July 2000. None of the individuals on the list were identified as having been prescribed

mefloquine by Defence.

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Annex H – People

(FOUO) There is no evidence that mefloquine causes or triggers Post Traumatic Stress

Disorder.

Tafenoquine

(U) Tafenoquine is an anti-malarial medication undergoing development and has not yet been

registered by the TGA. It is chemically distinct from mefloquine.

(FOUO) The ADF used tafenoquine for members in three circumstances between 1998 and

2001: 492 members for long-term malaria prevention in Timor Leste (as a clinical trial using

as the comparator antimalarial), 1,017 members as a short malaria eradication course in

Bougainville and Timor Leste (as a trial comparing it to primaquine for eradication) and 31

members for treatment of recurrent malaria on return to Australia. There may be some overlap

in these groups however the maximum number of ADF members to have received

tafenoquine is 1,540.

(FOUO) ADF members who were prescribed tafenoquine provided informed consent. The

drugs were administered in accordance with approved trial protocols and/or Therapeutic

Goods Administration approval and participation was voluntary.

Criticism of the use of mefloquine and tafenoquine in Defence

(U) Defence has responded to the concerns raised about the use of mefloquine and

tafenoquine in Defence by undertaking a number of activities to ensure an appropriate public

health approach.

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Annex H – People

Intentionally blank

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Annex I – Current Cultural Reform

Annex I – Current Cultural Reform

Key Issues




(U) Defence Abuse Response Taskforce

(U) Royal Commission into Institutional Responses to Child Sexual Abuse

(U) Pathway to Change

Defence Abuse Response Taskforce

(U) The Defence Abuse Response Taskforce is finalising all legacy issues in relation to those

who have previously made allegations of abuse. Categories of allegations are:






Allegations received by DLA Piper before the deadline for receiving allegations

and assessed by DLA Piper as ‘in scope’;

Allegations received by DLA Piper before the deadline for receiving allegations

and assessed by DLA Piper as ‘not in scope’;

Allegations received by DLA Piper before the deadline but referred to the

Commonwealth Ombudsman as DLA Piper identified a potential conflict of

interest;

Allegations received by DLA Piper after the deadline for receiving allegations and

recorded as received by DLA Piper but with no assessment conducted; and

New allegations of abuse which occurred before 11 April 2011 and was registered

with the Defence Abuse Response Taskforce by 31 May 2013.

(U) The response, tailored to a complainant’s individual circumstances and the nature of their

experiences, included:



restorative engagement;

referral to counselling;

reparation payment (to a maximum of $50,000);



referral of appropriate matters to police for formal criminal investigation and

assessment for prosecution; and

referral of appropriate matters to Defence for inquiry into possible administrative

or disciplinary action.

(U) The existing terms of reference for the Defence Abuse Response Taskforce was due to

expire on 31 March 2016, however has been extended until 31 August 2016 with residual

legacy work also funded to 31 August 2016. This residual legacy work is to enable planning

for a successor entity and full completion of restorative engagement conferences, counselling

information access requests and management and general administration. The final Defence

Abuse Response Taskforce report is yet to be tabled in Parliament.

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Annex I – Current Cultural Reform

(U) Ongoing management of legacy and administrative issues from the Defence Abuse

Response Taskforce post August 2016 will be possible through the development of a

Regulation which expands the Commonwealth Ombudsman’s role as the Defence Force

Ombudsman, under the Ombudsman Act 1976 to provide an independent complaint

mechanism for allegations of abuse in Defence.

Royal Commission into Institutional Responses to Child Sexual Abuse

(U) On 11 January 2013, the then Governor-General appointed six commissioners for the

Royal Commission into Institutional Responses to Child Sexual Abuse, headed by the

Hon Justice Peter McClelland AM.

(U) The terms of reference for the Royal Commission outline Australia’s international

obligation to take all appropriate legislative, administrative, social and educational measures

to protect children from sexual abuse and other forms of abuse, including measures for the

prevention, identification, reporting, referral, investigation, treatment and follow up of

incidents of child sexual abuse.

(U) On 21 June 2016, the Royal Commission commenced a public hearing into the

experiences of men and women who were sexually abused as children in certain divisions of

the ADF. The scope of the public hearing is to inquire into:




The experiences of survivors of child sexual abuse of the following institutions

operated by the Australian Defence Force –

o HMAS Leeuwin in the period 1960 to 1980.

o The Army Apprentice School Balcombe in the period 1970 to 1980.

o ADF Cadets in the period 2000 to present.

The systems, policies, practices and procedures of the Australian Defence Force

and the Australian Defence Force Cadets to prevent sexual abuse, and raising and

responding to concerns and complaints about child sexual abuse in the above

listed institutions.

Any related matters.

(U) The Royal Commission invited any person or institution who believed that they had a

direct and substantial interest in the scope and purpose of the public hearing to lodge a

written application for leave to appear at the public hearing by 31 May 2016.

Pathway to Change

(U) Pathway to Change is Defence’s cultural change program. It is in its fourth year with

98 per cent of recommendations being implemented. The current focus of Pathway to

Change is to reinforce the expected Defence culture that Defence has established in the past

four years. The next steps will be to evaluate what has been achieved so far, and leveraging

the First Principles Review implementation.

(U) Achievements so far are:



Establishing and increasing awareness of the Sexual Misconduct Prevention and

Response Office (SeMPRO), including through face-to-face briefings and

communication materials.

An Australian Defence Force Alcohol Management Strategy.

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Annex I – Current Cultural Reform






Establishing mechanisms to increase diversity within leadership.

Managing position tenure to ensure expertise and accountability in complex

integrated roles for all Colonel (and equivalent)/Executive Level 2 and above

appointments.

Conducting Defence-wide discussion on values and behaviours, including,

Defence education and training programs, which are being informed by agreed

values and behaviours.

Expediting corrective processes by simplifying responses to, and management of,

unacceptable behaviour.

Enabling implementation of culture review recommendations and associated

Defence reform directions through supporting policies.

(U) Defence is continuing the third year of four-year collaboration with the Australian

Human Rights Commission, which includes visits to Defence establishments, to examine

particular aspects of culture.

(U) Progress is being made across a number of structural and policy areas, including flexible

Australian Defence Force career models (Project Suakin), military justice reform, enhanced

career pathways, removal of gender restrictions from Australian Defence Force combat role

employment categories and dedicated resources towards diversity and inclusion.

(U) Defence is increasing diversity in its workforce (female representation is currently

15.5 per cent of the permanent Australian Defence Force and 41.1 per cent of the Australian

Public Service).

Progress of Pathway to Change

(U) Results indicate positive cultural change is occurring. For example, in leadership and

accountability, perceptions of Defence commitment to creating a diverse workforce remain

high. However, there is still much work to be done, with Defence focusing on prevention and

the effective management of unacceptable behaviour, including expanding bystander action

behaviour training and unconscious bias training.

(U) Demonstrable change has been seen where Defence has invested the most effort in

communicating expected standards of behaviour, particularly in Defence’s training

establishments. These initiatives are resulting in some reduction in incidents of unacceptable

behaviour experienced by trainees and cadets.

(U) Data from Defence’s staff and members’ survey provides the workforce’s perspective on

cultural reform programs. Overall, awareness and adoption of Pathway to Change has

increased between 2014 and February 2015. Further, analysis of 2015 data shows no

significant increase in the prevalence of unacceptable behaviour from 2014 to 2015.

Way Ahead

(U) Defence is working to ensure Pathway to Change continues to achieve Defence’s cultural

reform goals. Consultation has commenced and will be conducted at all levels nationally to

inform the future strategic direction of Pathway to Change, leveraging the First Principles

Review recommendations, to deepen engagement of staff with the leadership, behaviour and

accountability aspects of Pathway to Change.

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Annex I – Current Cultural Reform

(U) As part of the First Principles Review, Defence is developing and implementing key

leadership behaviours across Defence. These have been incorporated into Senior Leadership

Group role charters and focus on people management and the leadership behaviours required

to deliver the First Principles Review.

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Annex J – Estate

Annex J – Estate

Key Issues




(U) The Defence Estate is the largest land holding of the Australian Government that is

needed to support capability, including through the acquisition, sustainment and

rationalisation of surplus sites.

(U) The 2016 Defence White Paper addressed the historical underfunding of aspects of the

Defence estate to ensure it retains a functional useful remaining life, is fit for purpose as

well as continuing the capital investment needed for capability. There are risks in

achieving this ambitious program, especially in achieving approvals for projects and

retaining a workforce with the right skills and experience.

(U) Defence is continuing the investigation and management associated with the legacy

use of Aqueous Film Forming Foam (AFFF) at various bases.

Estate Management

(U) The Defence estate is the largest land holding of the Australian Government with around

400 owned properties (around 70 of which are considered major bases) that cover more than

three million hectares (mostly training areas). In addition, Defence has over 357 domestic

leases and 233 overseas leases. The balance sheet net book value of the estate (as estimated in

the Portfolio Budget Statements 2016-17) is $27 billion.

Funding for the Defence Estate

(U) There are two main forms of expenditure on the Defence estate:

The Facilities and Infrastructure Program of the Integrated Investment Program –

major refurbishment of the existing estate or construction of new assets (FY2016-17 $1.8

billion); and

Estate Maintenance – estate upkeep and estate works (FY2016-17 $785.0 million).

(U) The Defence estate is ageing. Major refurbishment and construction projects are critical

reinvestment activities to ensure that the Defence estate continues to be able to support

capability. As part of the 2016 Defence White Paper, an important focus was to remediate

recent years of underinvestment in key enablers including the Defence estate to ensure it is fit

for purpose. Capital investment in new facilities has grown to support new major capabilities.

Table 1 (below) shows the historical expenditure and forecast guidance for the estate.

Table 1: Historical expenditure and forecast guidance

Program 2013-14

Actual

$m

2014-15

Actual

$m

S E C R E T A U S T E O

2015-16

Forecast

Outcome

$m

2016-17

Budget

Estimate

$m

Facilities

&

Infrastructure Program 1,254.0 1,129.4 827.0 1,758.1

Estate Maintenance 564.1 675.0 780.7 785.0

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Annex J – Estate

Facilities and Infrastructure Program of the Integrated Investment Program

(U) The Facilities and Infrastructure Program of the Integrated Investment Program consists

of:



Redevelopment and refresh projects to extend the remaining useful life of the Defence

establishments, through modernisation of underground services (e.g. power, water,

sewage) and common base facilities (e.g. office and living-in accommodation, catering

and health facilities etc.). The development and prioritisation of these projects is informed

by base engineering assessments, condition reports and modelling of the ageing of the

base infrastructure.

Projects to add new capital stock to the estate to support capability projects, for example,

hanger and maintenance facilities to support the introduction of new aircraft, port facilities

to support new ships, or facilities to store and maintain new vehicles.

Challenges and issues in delivering the Facilities and Infrastructure Program

(U) Infrastructure projects are affected by construction and market conditions. Changing

market conditions can affect the extent to which planned scope items can be delivered for the

same dollar amount as allocated under capital funding. While Defence’s construction program

is steady and predictable compared to much private sector investment which is often cyclical

in nature, Defence is a small component of the national construction and facilities

maintenance industry. Defence therefore does not lead in the setting of prices and can be

subject to industry capacity constraints.

(U) There are community expectations about Defence work being granted to local businesses,

often leading to representations to Ministers and Defence. Defence’s contracting model is

based on large-scale contracts being awarded to construction and project management

companies that are able to operate nationally. These companies rely on sub-contracting

arrangements to deliver the projects, and through these arrangements much of Defence’s work

is ultimately performed by local businesses, and with workers for sites drawn from the local

labour market.

(U) Infrastructure Division, which delivers the Facilities and Infrastructure Program of the

Integrated Investment Program, operates on an out-sourced model with industry delivering

consultancy and professional services, designs, construction, and project management

functions. The Division needs a skilled workforce to ensure the efficient implementation of

contracting processes, the oversight of project design and delivery, and the in-house retention

of relevant technical disciples to ensure that Defence can operate as a Smart Buyer. The

recruitment, development, and of retention of personnel with the right skills and experience

remains a risk to the effective implementation of the program.

(U) Other pressures on the program of infrastructure projects include:



managing the Program as part of the Integrated Investment Program, especially obtaining

approvals for projects to support the delivery of projects within planned cost estimates and

delivery schedules;

consistent and predicable funding to avoid disruption to mature infrastructure project

planning, although delays in approvals, contracting, or delivery, including through

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Annex J – Estate




discovering contamination can impact on the project’s delivery schedule and spend profile

over its lifecycle;

remediation of contamination and compliance issues;

the requirement to address critical work, health and safety concerns in the estate; and

implementing estate rationalisation and disposal proposals given community pressures to

retain local Defence presence.

Estate Maintenance and Base Services Contracts

(U) Estate maintenance consists of two separate programs: estate upkeep (mainly reactive

maintenance); and estate works (scheduled works). Estate upkeep and estate works projects

are prioritised under the following risk categories:







work health and safety;

capability;

environmental and heritage;

personnel;

financial efficiency; and

legislative compliance.

(U) There have been pressures on estate maintenance with minimal maintenance funding

provisions for a number of years. The 2016 Defence White Paper has addressed the funding

issues and Defence will need to resolve the backlog of unfunded maintenance over the next

few years.

Estate Rationalisation and Maintenance

(U) Estate rationalisation is essential so that, over time, Defence can re-shape its estate

footprint to meet the ADF’s future strategic requirements as efficiently and effectively as

possible. Defence maintains a rolling property disposals program. In 2015, the previous

government agreed that Defence would retain proceeds from sales to reinvest in capability.

Bulimba Barracks (QLD) and Leeuwin Barracks (WA) are two strategically significant

disposal activities that are currently underway.

(U) The 2016 Defence White Paper reaffirmed estate rationalisation and disposal of surplus

sites as a priority for Defence. The First Principles Review of Defence recommended disposal

of all unnecessary estate holdings. Rationalising the estate can be difficult to do due to local

pressures to retain Defence’s presence. At this stage, base closures are being provided for

ministerial consideration and approval on a case-by-case basis, as agreed by the previous

government in response to the First Principles Review.

(U) Risks associated with achieving property disposals on time and on budget include:

whole-of-government policy considerations; the need to undertake environmental and

heritage assessments to identify issues (such as site contamination) for finalising a disposal

strategy; community and political sensitivities associated with the sale of public assets; and

economic conditions and market fluctuations.

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Annex J – Estate

Aqueous Film Forming Foam (AFFF) Contamination Across the Defence

Estate

(U) AFFF is the most effective firefighting tool for liquid fuel fires to ensure the protection of

human safety in emergencies. Legacy forms of AFFF used from the 1970s to the early 2000s

contained perfluorooctane sulfonate (PFOS) and perfluorooctanoic acid (PFOA). These foams

were used by Defence, heavy industry such as refineries, and emergency services such as fire

brigades. PFOS/PFOA has also been used in a range of common household and industrial

application including non-stick cookware, fabric and carpet stain protection, waterproof

clothing and food packaging.

(U) From 2004, Defence commenced phasing out its use of the old foams and now uses

specialised training foam that does not contain PFOS or PFOA. The foam Defence now uses

for critical incident firefighting contains trace elements of PFOS and PFOA, but they are not

active ingredients. Research into the environmental and human health implications from

FPOS and PFOA is not mature, and so Defence’s handling of the issue of contamination is at

the leading edge of international practice in this area.

National Investigation Program

(U) Investigation and management of PFOS and PFOA contamination across the Defence

estate is complex. An environmental investigation program is being undertaken in accordance

with the National Environment Protection (Assessment of Site Contamination) Measure

(NEPM) framework.

(U) Detailed site investigations are well-advanced at RAAF Base Williamtown and Army

Aviation Centre Oakey and will be finalised in the third quarter of 2016.

(U) 16 other sites have been identified for environmental investigation. In April 2016,

detailed investigations (involving initial sampling of soil, groundwater and surface water;

identification of migration pathways and analysis of hydrogeology; and subsequent phases of

further sampling) commenced at three sites – RAAF Base East Sale (VIC), RAAF Base

Pearce (WA) and HMAS Albatross (NSW). A program of preliminary sampling across 13

other sites commenced in May 2016 to understand whether or not there is PFOS and PFOA in

the vicinity of those 13 bases.

Health Advice

(U) Human health advice is the role of respective state and/or local health authorities. The

Environmental Health Standing Committee (enHealth) is progressing the development of

interim health reference levels which will inform the actual level of risk of any PFOS or

PFOA that may be present in drinking water and other sources of exposure. Defence is

supplying drinking water to properties that rely on bore water in areas being investigated for

contamination.

(U) On 16 March 2016, enHealth released a health statement that does not recommend blood

testing of individuals but acknowledges there may be merit in community pooled blood

testing. It is a matter for a state/territory health authority to determine whether to proceed with

community blood testing.

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Annex J – Estate

Claims for Compensation

(U) Matters of compensation will depend upon a determination as to liability and

quantification of losses attributable to actions by the Commonwealth. The Commonwealth

has recently received two formal claim for compensation. This claim will be assessed in

accordance with the Attorney-General’s Legal Services Directions 2005.

(U) To date, Defence has not been contacted directly by any plaintiff law firm in relation to a

class action and no notice of actual proceedings, involving Defence, has been received.

Financial Assistance

(U) The previous government instituted a financial assistance package to assist in addressing

financial hardship experienced by commercial fishers affected by fishing closures near

Williamtown (NSW).

(U) The financial hardship circumstances in the Williamtown area are specific to the NSW

Government decision to close the Tilligerry Creek and Fullerton Cove fisheries. At this stage,

Defence is not aware of any similar financial hardship circumstances in any other Defence

sites identified for further detailed environmental investigations.

(U) The original financial package was in place until 30 June 2016 to align with the NSW

Environmental Protection Authority (EPA) imposed fishing ban. The Australian Government

extended the financial package by eight weeks noting that the NSW EPA may await

Defence’s Human Health Risk Assessment report in July 2016 to inform its decision. In the

event that the fisheries are not reopened by 30 June 2016, the Australian Government

committed to make available a new Business Transition Payment during the eight week

extension period.

(U) The Australian Government financial assistance package is not associated with broader

fisheries reforms that the NSW Government is seeking to implement.

Property Valuations and Lending

(U) There are reports that residents have been unable to obtain real estate valuations or to

progress loan applications as a result of uncertainty in the area of investigation at

Williamtown. Defence has been providing factual information on the investigations to lending

institutions and the local property industry. Defence understands that the Australian Property

Institute have developed valuation standards, which will provide a methodology for

valuations to proceed.

Senate Inquiry into Contamination at Australian Defence Facilities

(U) On 15 April 2016, the previous government tabled its whole-of-government response to

the Foreign Affairs, Defence and Trade References Committee Report Part A – Inquiry into

Firefighting Foam Contamination – RAAF Base Williamtown. Final responses to

recommendations where the previous government provided an interim response, including the

matter of land acquisition, will be informed by the findings on the results of the human health

risk assessment in July 2016.

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(U) On 4 May 2016, the Foreign Affairs, Defence and Trade References Committee released

its report on Firefighting Foam Contamination Part B – Army Aviation Centre Oakey and

other Commonwealth, State and Territory Sites. Responses to recommendations in that report

are currently being prepared.

Coalition Commitment of $55 million to Address PFC Contamination

(U) The Coalition will invest $55 million from the existing Defence budget to manage,

contain and remediate PFC contamination at Defence bases. This includes an epidemiological

study that will look at potential patterns, causes and health effects in communities exposed to

elevated levels of PFOS and PFOA.

(U) The Coalition will fund a voluntary blood-testing program for residents living within the

investigation areas, establish dedicated mental health and counselling services in all affected

communities, and appoint a dedicated Community Liaison Officer to connect residents with

these services.

(U) The package also includes $3.5 million to connect Williamtown area properties to town

water.

(U) The Coalition has proposed bring the issue of PFC contamination to the attention of the

Council of Australian Governments (COAG) so all governments have a consistent approach

to managing potentially contaminated sites.

(FOUO) Defence has prepared an implementation strategy which outlines possible courses of

action which can be undertaken in order to meet these Commitments.

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Annex K – Information and Communication Technology

Annex K –Information and Communication Technology

Key Issues



(U) Defence is modernising its Information and Communication Technology to improve

effectiveness and efficiency.

(U) Defence Information and Communication Technology will focus on providing timely

and reliable information for effective decision making.

ICT Strategic Direction

(U) Defence is modernising its information and Communication Technology (ICT) to drive

operation superiority for the ADF and improve effectiveness and efficiency across the

Defence enterprise. In doing this the organisation is moving from an infrastructure centric

approach to an information centric approach to ICT.

(U) The shift in focus of ICT also the management of ICT as it shifts from a manager of

technology to a manager of services is being undertaken in partnership with the Groups and

Services. This will introduce significant new capability and ways to working.

(U) Through this transformation more effective and responsive ICT services will be delivered

to the Australian Defence Organisation to enable Defence outcomes.

Defence One Project (JP2080 Phase 2B.1)

(P) JP2080 Phase 2B.1 is replacing Defence’s ageing HR systems. It will enable reform of

Defence’s HR business and improve the delivery of HR services to the ADF, reservists and

Defence civilians. The following progress is expected during the term of the incoming

Government:

s34, s47C

s34, s47C

New Generation Desktop

s34, s47C

s34, s47C

This will enable

Defence to deliver critical upgrades to the Defence PROTECTED desktop computing

environment. Defence will be the Prime System Integrator for delivery, supported by

industry experts including PwC, and sitting above experience systems integrators including

Accenture, Fujitsu, Hewlett Packard, IBM and Lockheed Martin Australia.

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(P) Contracts were executed on 23 May 2016 and the project is currently progressing on track

with no critical issues. Initial Operating Capability is scheduled to be delivered in the fourth

quarter of 2017 with the Final Operating Capability scheduled for delivery in the fourth

quarter of 2018. s34

s34

.

s47E(d), s47G

Terrestrial Communications (Joint Project 2047)

(P) Joint Project 2047 Terrestrial Communications is scoped to upgrade, replace, standardise

and rationalise Defence’s Terrestrial Communications Network to every Defence base and

site in Australia and selected overseas sites. The project is a critical enabler of wider ICT and

Defence reform activities. It will achieve a secure and robust communications network

capability that supports both war fighting and Defence business, supporting some 100,000

users. Telstra was the successful tenderer with contract signature achieved in April 2013.

s47E(d), s47G

Defence Enterprise Resource Planning System Program

(P) The previous government, through First Principles Review, directed Defence to address

structural, systemic and cultural deficiencies within the Department’s business operating

model to remove constraints of organisational silos, complexity and fragmentation.

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(P) The imperative is that Defence must consolidate and simplify its processes and introduce

supporting enterprise systems to deliver the ‘One Defence’ business model. This Program

addresses these needs by reforming Finance and Logistics (including Procurement and

Engineering and Maintenance) business processes supported by SAP Enterprise Resource

Planning technology.

s34

(P) An Invitation to Register Interest was issued to industry in May 2016 to allow large scale

System Integrators to express their interest and outline their credentials in delivering a

program of this size and nature. It is common for Defence to invite industry to register their

interest prior to first pass so that Defence can shortlist vendors prior to the issue of a request

for tender, which would occur after first pass approval.

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Intentionally blank

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