Home > MYEFO > Part 4: Fiscal Strategy and Outlook > Appendix A: Policy Decisions Taken Since the 2008‑09 Budget > Expenses Measures > Defence

Defence

Afghanistan — helicopter capability

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Defence	-	3.0	-	-	-

The Government will provide $3.0 million in 2008‑09 as Australia's contribution to the United Kingdom led initiative to augment helicopter capability in Afghanistan. The contribution gives effect to a commitment made at the North Atlantic Treaty Organisation summit held in Bucharest in April 2008. The contribution will fund advanced pilot training and technical upgrades to enable more North Atlantic Treaty Organisation helicopters to be deployed to Afghanistan in support of International Security Assistance Force operations.

Australian Strategic Policy Institute — continuation of funding

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Defence	-	-	-	-	-

The Government will provide $2.8 million in 2008‑09 to support the work of the Australian Strategic Policy Institute.

The Australian Strategic Policy Institute produces independent analysis of defence and security issues relevant to Australia to support government decision-making on strategic and defence issues.

The cost of this measure will be met from within the existing resourcing of the Department of Defence.

Electronic countermeasures equipment

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Defence	-	-	-	-	-
Related capital ($m)
Department of Defence	-	-	-	-	-

The Government will provide $76.2 million (including capital funding of $67.2 million) over two years from 2008‑09 for electronic countermeasures equipment. This equipment is for the protection of Australian Defence Force personnel, including in Afghanistan and Iraq. The equipment will provide an enhanced level of protection against Improvised Explosive Devices.

The cost of this measure will be met from within the existing resourcing of the Department of Defence.

Iraq — contribution to international stabilisation activities

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Defence	-	87.8	-	-	-
Related revenue ($m)
Australian Taxation Office	-	-10.8	-	-	-
Related capital ($m)
Department of Defence	-	4.5	-	-	-

The Government will provide $92.3 million in 2008‑09 (including $4.5 million for capital) for the net additional costs of extending Operation CATALYST until 30 June 2009. This operation is Australia's military contribution to stabilisation and reconstruction activities in Iraq.

This measure is expected to lead to a reduction in revenue of $10.8 million in 2008‑09 as Australian Defence Force personnel are taxed concessionally on their base pay and allowances while on deployment.

Operations in the Middle East — relocation project

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Defence	-	-	-	-	-

The Government will provide $1.7 million over two years to deploy a project survey and negotiation team to the Middle East. The team will investigate options to relocate Australian Defence Force personnel supporting operations in Afghanistan and Iraq.

The cost of this measure will be met from within the existing resourcing of the Department of Defence.

Timor-Leste — reduced Australian Defence Force presence

Expense ($m)
	2007‑08	2008‑09	2009‑10	2010‑11	2011‑12
Department of Defence	-	-5.1	-	-	-
Related revenue ($m)
Australian Taxation Office	-	0.8	0.1	-	-

The Government has decided that the Australian Defence Force presence in Timor-Leste will be reduced to approximately 650 personnel by early 2009, reflecting improvements in the country's security situation. This reduction is expected to lead to a saving of $5.1 million in 2008‑09 in respect of allowances and logistics support costs.

This measure is expected to increase taxation revenue by $0.9 million over two years, as Australian Defence Force personnel are taxed concessionally on their base pay and allowances while on deployment.

Further information can be found in the press release of 22 October 2008 issued by the Minister for Defence.

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