FUNDING OF $4 BILLION FOR adf logistics support

A modern, well-resourced and efficient logistics sustainment system is critical to maintaining a balanced and capable Defence Force and supporting our deployed forces.

The Coalition Government has provided $4 billion over ten financial years to ensure that the Australian Defence Force’s (ADF) war fighting capabilities are maintained at high levels of preparedness. 

The boost to logistics funding will ensure that the ADF is able to continue to respond in an exceptional manner to contingencies now and in the future.

The ADF continues to be committed, in the national interest, to a range of operations around the globe. This would not be possible without the significant investment the Government made in logistics sustainment in previous Budgets.

The $4 billion announced in this Budget continues the logistics measures approved in prior budgets and is in addition to the funding provided in the 2000 Defence White Paper for the through-life support costs of new and enhanced equipment.

This additional funding will ensure continued levels of readiness and sustainability of the ANZAC Frigates, the Collins Class submarines and Naval Aviation assets.

Army mobility, surveillance and training will be enhanced and the additional funding will ensure that critical airlift assets are available when required.

Australia’s Air Combat Capability will be strengthened through additional logistics funding for the F/A‑18 Hornets and Lead-In Fighter aircraft. This will be critical in the transition years when the Super Hornet and Joint Strike Fighter aircraft are entering service.

The additional funding will boost inventory stock holdings and allow for improvements in inventory management and accounting practices to lead to a more functional and efficient inventory management system.

Australian Defence Industry will be a major beneficiary of this boost in funding.

Together with other new Budget measures, additional logistics funding is a key component of the Government’s commitment to providing the resources, equipment and services needed by our servicemen and servicewomen.

Supporting Information — Additional Investment in ADF Logistics

Why is this important?

•                The Government is committed to ensuring that current ADF capabilities are adequately maintained and prepared.

•                The current strategic environment and high operational tempo of the ADF demand that these critical capabilities are available if required for any future deployment and available to ensure the necessary training activities can be conducted.

Who will benefit?

•                The Australian public from measures to ensure that ADF capabilities are well prepared and maintained to undertake their role in defending Australia and its national interests.

•                Australian industry as a result of the Government’s long-term commitment to increased maintenance and support programmes to critical ADF capabilities.

What funding is the Government committing to the initiative?

•                The budget will provide an additional $107.9 million in 2007-08 and an additional $1.8 billion over the next ten years to improve logistics support to the ADF.

•                This funding is in addition to the $8.6 billion in today’s prices provided over 15 years for personnel and operating costs for new equipment in the 2000 Defence White Paper and the 2006‑07 Budget.

What have we done in the past?

•                This initiative builds upon the Government’s previous commitment of $2.2 billion over ten years provided in the 2004-05 Budget for increased logistics support to the ADF.

When will the initiative conclude?

•                This in an ongoing initiative with logistics funding levels to be kept under review by Government.