Budget 2015: Taxpayers to spend $17.5 billion on navy, army and air force next year

IT will cost taxpayers an extra $713 million next year to fund Australia’s military forces as the dollar falls procurement project costs rise and international commitments grow.

AUSSIES DEPART AFGHANISTAN .. Leading Aircraftman Noel Klaehn lets Australians know he and his mates will be home for Christmas on his last day in Tarin Kot, Uruzgan on 15 December 2013. *** Local Caption *** The Australian Defence Force (ADF) has officially departed Uruzgan Province in Southern Afghanistan.The final two aircraft, both C-17 aircraft, departed Multi National Base - Tarin Kot (MNB-TK) on December 15, 2013 and arrived at Al Minhad Air Base in the United Arab Emirates that afternoon. The passengers and flight crew were met on the tarmac by Commander Joint Task Force 633 Major General Craig Orme, who congratulated the troops on the successful completion of their mission. The exodus came just four days after the Australian Commander of Combined Team Uruzgan, Colonel Wade Stothart officially signed over control of MNB-TK to the Government of the Islamist Republic of Afghanistan. The ADF’s departure from Uruzgan does not signal the end of Australia’s commitment to Afghanistan, with approximately 400 military members to remain in the country post 2013 in a variety of train, advise and assist roles.

IT will cost taxpayers an extra $713 million next year to fund Australia’s military forces as the dollar falls procurement project costs rise and international commitments grow.

The fine print of the 2015-16 Federal Budget documents shows that the Air Force will be $332 million more expensive, the Army will cost $276 million more and the Navy $105 million above this year’s figure.

Australia’s first Lockheed Martin, F-35A Lightning II Joint Strike Fighter, made its inaugural flight on Sept. 29 last year. The government will invest uop to $16 billion for 72 jets. Picture supplied.

According to the documents the total cost to taxpayers of the three military forces next year will be $17,488,838 or more than half of the total defence budget of around $32 billion. That’s $87 million a day.

The Govt will provide Defence with $31.9b in 2015-16 and $132.6b over the forward estimates #budget2015 #auspol pic.twitter.com/wu5PscTOGe

— Kevin Andrews (@kevinandrewsmp) May 12, 2015

The latest defence budget takes military spending to about 1.9 per cent of total economic activity or GDP, but it will fall below 1.8 per cent between now and the Government’s 2023 target date of two per cent of GDP.

When that is achieved each of Australia’s 10 million taxpayers will contribute more than $5000- a-year to the defence force.

HMAS Canberra, the Royal Australian NavyÕs newest and largest warship, arrives in Hobart. Picture supplied.

According to the Budget papers the defence intelligence agencies will be given an $83 million funding boost to ramp up the war against Islamic extremism and the defence contribution to global UN operations will jump by $79 million to $863 million for the year.

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Defence budget expert from the Australian Strategic Policy Institute (ASPI) Mark Thomson said the budget contained no new money for equipment although the ADF would invest $7 billion in capital equipment during 2014-15.

What are the implications of #budget2015 on Australia's defence capabilities? Mark Thomson discusses: http://t.co/9hOBZxJUi8 #ausdef

— ASPI (@ASPI_org) May 13, 2015

That number grows to $11 billion in 2018-19 as new fighter jets and warships come on stream.

“The key for defence will be the White Paper in August and it will be in a holding pattern until then,” Dr Thomson said.

Most of the additional funds for the military next year will be spent on suppliers or employee costs such as wages and allowances.

The RAAF will boost spending on suppliers by $200 million and its wages bill will grow by $74 million.

Australian troops depart from Tarin Kowt inside a RAAF C-17A Globemaster aircraft. Picture supplied.

The Army on the other hand will invest an extra $31 million on units employees and just $8 million more on suppliers.

Navy will spend an additional $115 million on suppliers and just $13 million on wages and allowances.