Federal Budget 2015: Defence spending hits $31.8 billion

THE Defence budget will jump by more than $2.5 billion to $31.8 billion with most of the cash going towards overseas operations and new equipment.

Royal Military College-Duntroon Staff Cadets perticipate in a maritime serial on Zoe Bay, Hinchinbrook Island. Staff Cadet James Jenkins disembarks back at Lucinda. Picture: Zak Simmonds

THE Defence budget will jump by more than $2.5 billion to $31.8 billion next year with most of the extra cash to pay for overseas operations and currency fluctuations.

Thanks to lower than expected economic growth, the total spend will take the budget to about 1.9 per cent of economic activity (GDP) and within a whisker of the government’s target of 2 per cent of GDP by 2023.

However the number is expected to fall below 1.8 per cent within three years.

Royal Military College-Duntroon Staff Cadets perticipate in a maritime serial on Zoe Bay, Hinchinbrook Island. Staff Cadet James Jenkins disembarks back at Lucinda. Picture: Zak Simmonds

Taxpayers will stump up an extra $750 million for overseas operations taking the total figure on foreign incursions since 1999 to above $16.6 billion.

The bulk of the additional money next year will be for Operation Okra in Iraq ($360 million) and Operation Accordion in the Middle East ($189 million).

Foreign exchange movements for the purchase of equipment such as war planes and ships account for $732 million of the extra funds.

NUSHIP Canberra enters through the heads of Sydney Harbour.

The government will devote about $7 billion next year to the purchase of new equipment including C-17 heavy lift aircraft($261 million), E-A/18 Growler Super Hornet electronic warfare fighters ($890 million), Air Warfare Destroyers ($746 million) and trucks and trailers $205 million).

The first two of the highly capable Growler jets will arrive in Australia from the Boeing factory in St Louis later this year.

Australian Special Forces soldiers from the Special Operations Task Group based in Oruzgan Province in Afghanistan.

The capital equipment will grow rapidly to $11 billion in 2018-19 as more new warships, vehicles and planes are introduced into service.

The number of people in uniform will reach 57,982 next year with a target number of 59,559 in uniform by 2017-18. The number of senior officers (above Lieutenant Colonel) will remain static at about 2300 which is among the highest ratio in the world.

The civilian workforce will cop another cut with numbers set to fall by an additional 1000 to 17,900 as the defence buying organisation is absorbed back into the department.

Australian Defence Force rigid-hull inflatable boats from Tactical Assault Group (East), prepare to intercept a 'suspect' vessel in the waters off Yeppoon, Queensland, during Exercise Talisman Saber 2013. *** Local Caption *** Special forces from Australia’s Tactical Assault Group (East) and the U.S. Marine Corps, conducted a joint seaborne and airborne boarding of a ship underway in the waters off Yeppoon as part of Exercise Talisman Saber 2013. Special forces rigid-hull inflatable boats (RHIBs) successfully boarded a small team to secure an area of the ship before further teams boarded from RHIBs and others fast-roped onto the deck from Australian Army Black Hawk helicopters. The special forces took control of the suspect vessel, engaged the ‘enemy’ and conducted a thorough search before being winched back onboard the Black Hawks and returning to base. Royal Australian Navy refuelling tanker HMAS Sirius acted as the ‘suspect’ vessel during the exercise scenario. The ADF has two Tactical Assault Groups – East (Sydney) and West (Perth) – tasked with direct action counter-terrorism and hostage recovery. Tactical Assault Group (East) is comprised of Australian Army soldiers from 2nd Commando Regiment, Special Operations Engineer Regiment, Special Operations Logistics Squadron and Royal Australian Navy clearance divers. Exercise Talisman Saber (15 July – 5 August 2013) is a major bilateral exercise designed to improve training and interoperability between Australian and United States military forces and other government agencies. Around 28,000 Australian and US personnel are taking part in the 21-day exercise, currently being conducted in the Coral Sea and military training areas in central and northern Queensland. Supporting activities are underway in the waters of the Timor and Arafura Seas, and throughout Queensland and the Northern Territory.

Defence budget expert Mark Thomson said the 2015/16 document was in a “holding pattern” ahead of the crucial Defence White Paper due out in August this year.

“The good news is that defence was not cut, but there is really no new money apart from operational funding,” Dr Thomson said.

He said the budget was a bonanza for American and European weapons makers with Australia one of the few western countries still buying expensive new military gear.

The budget contained little new money for military veterans apart from $36 million for Western Front commemorations and importantly $10 million for extra case co-ordinators to deal with complex compensation claims.