The following provides an overview of the Abbott Government’s Defence, Justice and Security related spending presented in the 2014 Federal Budget, as set out and stated:
OVERVIEW
- $11.6 billion Infrastructure Growth Package – $125 billion of additional infrastructure, including incentives to encourage asset recycling as a catalyst for unlocking significant new infrastructure investment.
- Engineering construction is forecast to decline by 13 per cent in 2014‑15 and 20½ per cent in 2015‑16
- Payment rates for family payments will be paused, as will the indexation of Local Government Financial Assistance Grants and Official Development Assistance (ODA) and 112 government programmes.
- The Government will conduct reviews into future ownership options for Australian Hearing, the Defence Housing Authority, the Australian Securities and Investments Commission Registry function and the Royal Australian Mint.
- Total investment in transport infrastructure to be $50 billion by 2019‑20. Total infrastructure investment from Commonwealth, State and local Governments, as well as the private sector, will build to over $125 billion of additional infrastructure.
- The National Stronger Regions Fund will allow councils and community groups to apply for a share of $200 million each year, over five years, towards the cost of local capital works projects in areas of particular economic stress and community need.
- New free trade agreements with Korea and Japan will provide new opportunities for both Australian exporters and consumers. The Korea‑Australia Free Trade Agreement gives Australian exporters significantly improved market access, including to the Korean legal, accounting, telecommunications, education and financial services.
- The Government is taking decisive steps to recapitalise Defence after a number of years of underinvestment and deferred funding for major capability projects. In this Budget the Government will bring forward $1.5 billion in spending from 2017‑18 to earlier years, and re‑invest any efficiencies back into Defence capability
EXPENSE MEASURES
Defence
Overview
By implementing Operation Sovereign Borders, the Government has taken strong and immediate action to restore integrity to Australia’s borders and stop the boats. This is in contrast to a peak of over 4,000 arrivals in July 2013.
Investment in efficient and effective border management will continue to underpin Australia’s national security and future economic prosperity. Australia’s border protection services will also be consolidated into a single frontline border agency — the Australian Border Force — to enforce our customs and immigration laws and protect our borders.
Australian Defence Force Gap Year Programme — re‑establishment
The Government will provide $191.8 million over four years to re‑establish the Australian Defence Force Gap Year Programme.
The programme will give school leavers the opportunity to experience the Australian Defence Force for one year.
Australians aged 17 to 24 years who have completed year 12 or equivalent studies will be eligible to apply for the Gap Year, with the first intake of the programme to occur in January 2015.
Australian Defence Force Support to the G20 Summit
The Government will provide $8.0 million in 2014‑15 for the Australian Defence Force to provide security support to the G20 Summit.
The cost of this measure will be met from within the existing resources of the Department of Defence.
Defence Forces Retirement Benefits and Defence Force Retirement and Death Benefits superannuation payments — indexation
The Government will allocate $1.4 billion over four years as a result of improvements to the indexation of payments made under the Defence Forces Retirement Benefits (DFRB) and Defence Force Retirement and Death Benefits (DFRDB) superannuation schemes. The impact of this measure is $135.1 million in underlying cash terms over the forward estimates.
From 1 July 2014, DFRB and DFRDB superannuation scheme members aged 55 and over will have their superannuation benefits indexed by the better of the Consumer Price Index and the Pensioner and Beneficiary Living Cost Index, with reference also to a benchmark level of Male Total Average Weekly Earnings.
Additionally, the Government will exempt DFRB and DFRDB members from any Division 293 tax liability for the one‑off increase in the capitalised value of the benefit arising from the new indexation arrangements. Division 293 tax is imposed under the Income Tax Assessment Act 1997 on concessional contributions made by individuals whose income and relevant concessionally taxed contributions exceed $300,000.
Middle East Area of Operations — continuation of Australia’s military contribution
The Government will provide $116.2 million over three years for the net additional cost (including remediation costs) of continuing Australia’s military contribution to international stabilisation and counter‑terrorism efforts in the Middle East Area of Operations (MEAO) in 2014‑15. The cost will be reduced by the recovery of $3.3 million from other Coalition forces for logistic support provided by the Australian Defence Force (ADF).
In 2014‑15 Australia’s military contribution will be delivered through three operations: Operation Slipper — the ADF contribution to the International Security Assistance Force (ISAF) campaign in Afghanistan; Operation Manitou — the ADF contribution to the international Combined Maritime Forces’ operations to counter terrorism, piracy and related illegal activities in the MEAO; and Operation Accordion — the ADF’s activities in the Gulf States of Bahrain, Qatar and the United Arab Emirates in support of Operation Slipper, Operation Manitou and the ADF’s broader activities in the MEAO. In previous years all the above activities were included in Operation Slipper.
Funding has been provided for Operations Slipper and Accordion for the six months ending 31 December 2014, the end date for the current ISAF mission
Military Superannuation — establish new accumulation arrangements
From 1 July 2016, the Government will establish a modern fully funded, accumulation superannuation scheme for new members of the Australian Defence Force (ADF). The existing Military Superannuation and Benefits Scheme (MSBS) will be closed to new members from this date.
The introduction of new fully funded arrangements will reduce the Government’s unfunded superannuation liability by an estimated $126 billion by 2050.
Existing MSBS members who leave and then rejoin the ADF are able to rejoin their existing MSBS arrangements.
There will be no change to the superannuation arrangements for existing MSBS members, but they may elect to be covered by the new arrangements.
Under the new arrangements, the Government will pay a 15.4 per cent contribution to a member’s chosen superannuation fund. The contribution rate will increase to 18 per cent for any period in which members are serving in war‑like operations.
Serving ADF personnel covered by the new arrangements will also be covered by statutory death and disability arrangements consistent with the defined benefit arrangement currently in place under the MSBS.
The new arrangements will be more flexible than the MSBS, as members will be able to transfer superannuation benefits to a fund of their choice.
Operation Resolute — extension
The Government will provide $60.3 million over two years for the net additional cost of continuing Operation Resolute until June 2015. Operation Resolute is the Australian Defence Force’s contribution to the whole‑of‑government effort to protect Australia’s borders and offshore maritime interests.
Funding beyond June 2015 will be considered in the 2015‑16 Budget consistent with Government consideration of expenditure for all Defence operations.
Savings and efficiencies
- A reduction in Defence civilian staff numbers, resulting in 1,200 fewer Australian Public Service staff and 300 fewer service provider staff by 2017‑18, saving $606 million over four years;
- A deferral of Phase 3 of the Single Living Environment and Accommodation Precinct project, saving $300 million;
- A reduction in Smart Sustainment initiatives, saving $63.6 million over four years; and
- A reduction in the use and support of the Australian Defence Force’s fleet of General Service B‑Vehicles, saving $60 million over four years.
Attorney-Generals
Australian Emergency Management Institute — establish as a Virtual Institute
The Government will achieve savings of $0.9 million over four years by transitioning the Australian Emergency Management Institute (AEMI) into a ‘virtual’ institute.
The AEMI will continue to be a Centre of Excellence for knowledge and capability development in the national emergency management sector providing a range of education, training, professional development, information, research and community awareness services to the nation and our region. The transition will allow AEMI greater flexibility to deliver emergency management training.
Australian Federal Police — savings from efficiencies
The Government will achieve savings of $11.7 million over four years through increased efficiencies in the Australian Federal Police.
Australian Federal Police officers — cessation of additional recruitment
The Government will achieve savings of $42.5 million over four years from the remaining unspent funding for the measures Sworn Australian Federal Police officers — increase and Australian Federal Police — retention and recruitment programme announced in the 2008‑09 Budget.
The AFP received funding for these measures to operate for five years which has now ceased. The AFP will cease recruitment of additional sworn officers at the end of the 2013‑14 financial year.
Confiscated Assets Account — additional expenditure
The Government will increase expenditure from the Confiscated Assets Account (CAA) under the Proceeds of Crime Act 2002 by $61.0 million over four years. Expenditure from the CAA will be used to fund crime prevention initiatives.
See also the related expense measure titled Safer Streets Programme — establishment and National Anti‑Gang Squad in the Attorney‑General’s Portfolio.
Further information can be found in the Coalition’s Policy to Tackle Crime.
Disaster Relief — New South Wales and Victorian fires
The Government will provide up to $1.0 million for Personal Hardship Payments under a 50:50 cost‑sharing arrangement with the Victorian Government for those affected by the open cut coal mine fire that started on 9 February 2014. This is in addition to the $1.0 million in payments provided to victims of the September 2013 NSW bushfires through the Australian Government Disaster Recovery Payment Programme.
Payments to individuals suffering hardship from natural disasters are in addition to those made by the Commonwealth Government to the states for the reconstruction of roads and infrastructure destroyed by natural disasters.
The payment to Victoria will be made under the Natural Disaster Relief and Recovery Arrangements. Provision for the NSW bushfires has been met from within existing resources of the Attorney‑General’s Department.
Hobart Airport
The Government will achieve savings of $22.0 million over four years by the Tasmanian Police Force assuming responsibility for security and policing activities at Hobart Airport
Human Rights Education — cessation
The Government will achieve savings of $1.8 million over four years by ceasing the Commonwealth Human Rights Education Programme. The programme will cease from 1 July 2014.
Legal Aid — withdrawal of additional funding
The Government will achieve savings of $15.0 million in 2014‑15 by partially reducing funding to legal aid commissions as announced in the 2013‑14 Budget measure titled Legal assistance — expansion of funding. The National Partnership for Legal Services Assistance will provide $204.4 million for legal aid in 2014‑15.
National Anti‑Gang Squad
The Government will provide $10.2 million over three years from 2014‑15 for the Australian Federal Police (AFP) to establish a dedicated Western Australian (WA) Anti‑Gangs Squad to fight organised crime at a local level with the support of national tools, resources and intelligence.
The Anti‑Gangs Squad will include officers from the AFP, Western Australia Police and the Australian Taxation Office, with access to the full suite of federal intelligence and operational resource.
This measure will be funded from the Confiscated Assets Account which contains seized proceeds of crime.
This measure delivers upon the Government’s election commitment that the proceeds of crime be used to fight crime.
Further information can be found in the press release of 1 April 2014 issued by the Prime Minister.
National Bushfire Mitigation Programme
The Government will provide $15.0 million over three years from 2014‑15 to states and territories to implement long term bushfire mitigation strategies and better fuel reduction programmes. This will contribute to safer, more resilient communities, which are better able to prepare for, respond to and withstand the impacts and effects of bushfires.
Further information can be found in the Coalition’s Election Policy for a Strong and Sustainable Forestry Industry.
National Partnership Agreement on Legal Assistance Services — extension
The Government will provide $204.4 million in 2014‑15 to extend the National Partnership Agreement on Legal Assistance Services by one year to 30 June 2015.
Funding under this agreement is provided to legal aid commissions through State and Territory governments to support the provision of legal services to disadvantaged Australians.
Provision for this funding has already been included in the forward estimates.
Royal Commission into Trade Union Governance and Corruption — establishment
The Government will provide $53.3 million over two years (including $5.3 million in capital funding) to establish a Royal Commission into Trade Union Governance and Corruption.
The Royal Commission will inquire into the governance arrangements and alleged financial irregularities associated with the affairs of employee associations, including trade unions, and the adequacy of existing laws as they relate to the governance and financial management arrangements of these entities.
The Royal Commission is expected to report by 31 December 2014.
The cost of this measure will be offset by redirecting funding from the Employment, Industry and Infrastructure and Regional Development portfolios.
Further information can be found in the joint press release of 14 March 2014 issued by the Attorney‑General and the Minister for Employment.
Safer Streets Programme — establishment
The Government will provide $50.0 million over four years to establish the Safer Streets Programme.
Local communities will be eligible to apply for grants to fund crime prevention programmes such as the installation of CCTV cameras and better lighting in known crime hotspots.
The cost of this measure will be partially offset by ceasing the 2013‑14 Budget measure titled Addressing gang violence and organised crime — National Crime Prevention Fund which was included as a ‘decision taken but not yet announced’ in the Mid‑Year Economic and Fiscal Outlook 2013‑14. $1.5 million will be met from within existing resources.
Further information can be found in the Coalition’s Policy to Tackle Crime
Schools Security Programme
The Government will provide $18.0 million over three years from 2014‑15 to establish the Schools Security Programme. The Programme aims to protect schools and pre‑schools facing a unique risk of attack, harassment or violence stemming from racial or religious intolerance.
Funding of $10.0 million will be redirected from the previous government’s Secure Schools Programme to support this measure. The savings from not proceeding with this measure were included as a ‘decision taken but not yet announced’ in the Mid‑Year Economic and Fiscal Outlook 2013‑14.
Further information can be found in the Coalition’s Policy for Schools: Students First.
Smaller Government — Privacy and Freedom of Information functions — new arrangements
The Government will achieve savings of $10.2 million over four years by establishing new arrangements to deliver privacy and Freedom of Information (FOI) functions.
Privacy functions will be undertaken by the Privacy Commissioner as an independent statutory position within the Australian Human Rights Commission. External merits review of FOI decisions will be undertaken by the Administrative Affairs Tribunal, while responsibility for handling FOI complaints will be combined with the Commonwealth Ombudsman function. The Attorney‑General’s Department will take responsibility for the issuance of FOI guidelines, collection of statistics and provision of explanatory material on the operation of the Freedom of Information Act 1982.
Timor‑Leste Police Development Programme — continuation
The Government will provide $29.0 million over four years to continue the Timor‑Leste Police Development Programme which provides support to the Timor‑Leste police force. Funding from this measure will focus on developing sustained capability in Timor‑Leste as the first phase of a drawdown and exit strategy.
This measure forms part of the Government’s Official Development Assistance Programme.
COMMUNICATIONS
Enhancing Online Safety for Children
The Government will provide $10.0 million over four years to improve the protection of children online. Funding will be provided in three parts: $7.5 million to provide online safety programmes for schools; $0.1 million to support Australian‑based research and information campaigns on online safety; and $2.4 million to establish and operate the Office of the Children’s e‑Safety Commissioner.
The independent Commissioner will provide a national leadership role for online safety issues for industry, families and groups responsible for the wellbeing of children.
Further information can be found in the Coalition’s Policy to Enhance Online Safety for Children.
CROSS PORTOLIO
Smaller Government — additional reductions in the number of Australian Government bodies
The Government will rationalise committees within the Agriculture portfolio, including ceasing the Abalone Aquaculture Health Accreditation Working Group; merging the AQUAPLAN Working Group with the Aquaculture Committee; merging the Australian Weeds Committee, the Biosafety and Biosecurity Working Group and the Established Pests and Diseases Working Group with the National Biosecurity Committee
The Government will amalgamate all of the Commonwealth merits review tribunals with the exception of the Veterans Review Board, from 1 July 2015. The amalgamated body will take on the functions of the Administrative Appeals Tribunal, the Social Security Appeals Tribunal, the Refugee Review Tribunal and Migration Review Tribunal, and the Classification Review Board. Details of the new arrangements will be developed in consultation with key stakeholders.
IMMIGRATION AND BORDER PROTECTION
Asylum Seeker Support — additional funding
The Government will provide $27.8 million in 2014‑15 to fund the Asylum Seeker Assistance Scheme and the Community Assistance Support Programme to provide eligible asylum seekers with support while their immigration status is being resolved.
This measure will be offset by redirecting funding from the Migration Programme — allocation of places for 2014‑15 measure.
Combating people smuggling — international engagement
The Government will provide $3.7 million in 2014‑15 for international engagement activities to prevent and disrupt maritime people smuggling.
Australian Customs and Border Protection Service officials will be stationed in Indonesia, Malaysia and Sri Lanka to coordinate Commonwealth agency efforts to sustain the prevention of maritime people smuggling.
This measure will be offset by redirecting funding from the Migration Programme —allocation of places for 2014‑15 measure.
Displaced Persons Programme — cessation
The Government will achieve savings of $38.4 million over five years by ceasing the Displaced Persons Programme from 2013‑14.
Donation of Bay Class vessels — Malaysia
The Government will provide $1.2 million over four years to donate two retired Bay Class vessels to Malaysia in 2015‑16 to assist regional efforts to combat people smuggling. Pre‑delivery maintenance and vessel training will be provided to Malaysia prior to the vessels being donated.
Funding for this measure was included as a ‘decision taken but not yet announced’ in the Mid‑Year Economic and Fiscal Outlook 2013‑14.
Further information can be found in the press release of 6 February 2014 issued by the Minister for Immigration and Border Protection
Education Services for Illegal Maritime Arrivals on Christmas Island
The Government will provide $2.6 million in 2014‑15 to fund access to full‑time school education for all school aged Illegal Maritime Arrivals on Christmas Island. Education will be delivered through the local school system under an arrangement with the Western Australian Department of Education.
This measure will be offset by redirecting funding from the Migration Programme — allocation of places for 2014‑15 measure
Managing the Legacy of Illegal Maritime Arrivals in Australia
The Government will provide $149.9 million over five years to fund a range of reforms to compliance, removal and network management arrangements for Illegal Maritime Arrivals (IMAs) who have remained in Australia.
This measure will increase the Department of Immigration and Border Protection’s removal and compliance capability by extending mainstream compliance and removal functions to the IMA legacy caseload.
The cost of this measure is partially funded from a ‘decision taken but not yet announced’ included in the Mid‑Year Economic and Fiscal Outlook 2013‑14.
For further information see the Coalition’s Policy to Clear Labor’s 30,000 Border Failure Backlog.
Migration Programme — allocation of places for 2014‑15
The Government will achieve savings of $305.2 million (including a reduction in revenue of $112.9 million) over five years, by modifying the size and composition of the 2014‑15 Migration Programme.
The 2014‑15 Migration Programme will have 190,000 places and maintain the composition of 128,550 Skilled Stream places, 60,885 Family Stream places and 565 Special Eligibility Stream places.
The Skilled Stream will continue to focus on Australia’s longer term skills needs, including addressing skills shortages in regional Australia.
The Family Stream will refocus on meeting the increasing demand for close family reunions. The additional partner and child places will be made available as a result of the cessation of new applications from the other family and parent (non‑contributory) places. This cessation will also enable faster processing of existing applications.
The Government will reverse the Mid‑Year Economic and Fiscal Outlook 2012‑13 measure titled Response to the expert panel — Permanent migration programme — additional family stream places and remove 4,000 places allocated to Illegal Maritime Arrivals in the Family Stream (not previously accounted for in total programme numbers).
Offshore Biometrics Programme — expansion
The Government will achieve savings of $18.6 million over four years by expanding the Offshore Biometrics Programme beyond the 20 countries where it currently operates and introducing user‑pays arrangements for visa services and biometric collection services with third‑party service delivery partners.
The Government will provide $2.0 million in capital funding over two years for biometric systems software and equipment to expand the programme.
Offshore Processing Centres — renegotiating major service provider contracts
The Government will achieve savings of $77.5 million over five years from 2013‑14 by renegotiating and consolidating offshore processing centre service provider contracts.
Onshore Immigration Detention Network — estate management plan
The Government will achieve savings of $283.3 million over four years by consolidating the onshore immigration detention network by closing nine detention facilities (Aqua and Lilac; Curtin; Darwin Airport Lodge; Inverbrackie; Leonora; Northern; Pontville; Port Augusta; and Scherger), extending the leases for Blaydin and Wickham Point facilities and upgrading some remaining facilities. Savings are partially offset by expenditure associated with increasing cooperation between the Commonwealth and the Australian Federal Police and State and Territory Police services.
Part of the funding for this measure was included as a ‘decision taken but not yet announced’ in the Mid‑Year Economic and Fiscal Outlook 2013‑14.
Operation Sovereign Borders — Special Envoy
The Government will provide $1.0 million over two years for the activities of the Special Envoy for Operation Sovereign Borders. The Special Envoy was appointed on 27 September 2013 and will engage with regional governments on issues relating to Operation Sovereign Borders.
Further information can be found in the Coalition’s Policy for a Regional Deterrence Framework to Combat People Smuggling
Outreach Officer Programme — cessation
The Government will achieve savings of $11.2 million over four years by ceasing the Outreach Officer Programme from 1 July 2014.
Reducing Access to the Immigration Advice and Application Assistance Scheme for Onshore Protection Visa Applicants
The Government will achieve savings of $2.1 million over four years by removing Immigration Advice and Application Assistance Scheme (IAAAS) support for non‑Illegal Maritime Arrival (IMA) onshore applicants who seek a merits review of their negative primary protection decision. IAAAS would remain in place for non‑IMA onshore applicants during their primary processing.
This measure builds on the Government’s decision to remove IAAAS access for IMAs. Further information can be found in the press release of 31 March 2014, issued by the Minister for Immigration and Border Protection.
Regional Cooperation Arrangements — additional funding
The Government will provide $86.8 million over three years from 2013‑14 to fund Regional Cooperation Arrangements (RCA) in Indonesia. The RCA supports regional partners to manage their asylum seeker populations.
The cost of this measure is partially funded from a ‘decision taken but not yet announced’ included in the Mid‑Year Economic and Fiscal Outlook 2013‑14, and will be partially offset by redirecting funding from the 2014‑15 Budget measure Migration Programme — allocation of places for 2014‑15.
Smaller Government — strengthen and enhance Australia’s border protection services
The Government will provide $480.5 million over four years ($711.9 million over six years, including $438.7 million in capital funding) to strengthen Australia’s border protection services.
From 1 July 2015, the Australian Customs and Border Protection Service will be consolidated into the Department of Immigration and Border Protection to create a single agency.
Enhancements to Australia’s border protection services will commence in 2014‑15 within the existing Australian Customs and Border Protection Service including through:
- improved trade and passenger facilitation by implementing more efficient processes;
- better targeting and interception of illegal trade and travellers through enhanced Information Communication Technology systems, intelligence and enforcement capability; and
- strengthened integrity and capability of the border workforce.
The cost of this measure will be met from within the existing resources of the Immigration and Border Protection portfolio and improved revenue collection of $208.2 million over four years ($346.6 million over six years) through the use of analytics and detailed data modelling, new processes for revenue collection and targeted campaigns to improve compliance.
The Government will provide $0.5 million over four years to the Department of Finance to apply the Gateway Review Process to this programme.
Support Services and Mutual Obligations Arrangements for Illegal Maritime Arrivals
The Government will provide $574.1 million over five years from 2013‑14 to provide support services to Illegal Maritime Arrivals (IMAs) found to be owed protection, and to strengthen mutual obligation arrangements for IMAs.
In addition to the range of services agreed for Temporary Protection Visa holders in the Mid‑Year Economic and Fiscal Outlook 2013‑14, this measure will provide temporary visa holders with access to Torture and Trauma Support and Complex Case Support where appropriate, and will provide the full range of employment services support through Job Services Australia to assist them in gaining employment.
In return for receiving income support, temporary visa holders will be subject to mutual obligation requirements, such as Job Search or Work for the Dole.
The Government will also introduce a Mutual Obligations Community Engagement Activities Pilot for 300 to 400 IMAs who hold a Bridging Visa. The Pilot is intended to provide participants with skills to enhance work readiness if they are found to be owed protection and will be delivered in three streams: workplace readiness activities; community improvement activities; and community volunteering activities.
This measure builds on the Mid‑Year Economic and Fiscal Outlook 2013‑14 measures titled Addressing the Backlog and Reintroducing Temporary Protection Visas and Mutual Obligations Arrangements — Phase One.
Supporting Rapid Transfers and Operation Sovereign Borders
The Government will provide $217.6 million over five years, (including $28.3 million in capital), to upgrade essential infrastructure on Christmas Island which will support the rapid transfer of Illegal Maritime Arrivals to Offshore Processing Centres within 48 hours. This measure includes funding for health infrastructure which will reduce the need to transfer detainees to the Australian mainland for assessment and treatment of health issues.
Funding for this measure was included as a ‘decision taken but not yet announced’ in the Mid‑Year Economic and Fiscal Outlook 2013‑14.
Further information can be found in the Coalition’s Policy for a Regional Deterrence Framework to Combat People Smuggling
Unaccompanied humanitarian minors — additional funding
The Government will provide $27.3 million over two years for the supervision and welfare of unaccompanied humanitarian minors (UHMs).
The UHM programme provides settlement services to non‑citizens under the age of 18 years who arrive in Australia without a guardian, and who are the recipient of a Humanitarian visa.
This measure will be offset by redirecting funding from the Migration Programme — allocation of places for 2014‑15 measure.
Visa simplification to support the vocational education and training sector
The Government will provide $1.3 million over four years to extend the streamlined visa processing arrangements currently available to students enrolled in bachelor, masters or doctoral degrees at participating universities to students enrolled in Advanced Diploma level Vocational Education and Training (VET) courses at eligible TAFEs and other education providers.
This measure will support the growth of Australia’s international VET sector and increase revenue by an estimated $6.7 million over three years from 2015‑16.
INFRASTRUCTURE AND REGIONAL DEVELOPMENT
Civil Aviation Safety Authority Board — expansion
The Government will expand the Civil Aviation Safety Authority’s (CASA) Board from four to six members. This expansion will increase the breadth of knowledge and experience on the CASA Board, enhancing its capability to set and implement the strategic direction of the organisation. The cost of this measure will be met from within the existing resources of the CASA.
Indian Ocean Territories — additional funding
The Government will provide an additional $6.3 million in 2014‑15 to support the Indian Ocean Territories through additional funding for services on Christmas Island.
This funding will provide additional health staff to Christmas Island Hospital, additional police officers and one year of air services underwriting costs to meet current demands on Christmas Island.
Infrastructure Growth Package — addition to the Infrastructure Investment Programme for new investments
The Government will provide additional funding of $200 million for the Black Spot Programme.
Infrastructure Growth Package — Western Sydney Infrastructure Unit — establishment
The Government will provide $77.8 million over four years to establish a dedicated Western Sydney Infrastructure Unit (the Unit) in the Department of Infrastructure and Regional Development to progress the development of a second major airport at Badgerys Creek. The Unit will:
- develop detailed airport design concepts;
- conduct environmental assessments; and
- engage with potential private sector operators, in particular the Sydney Airport Group, on commercial arrangements for the development and long term leasing of a new civil airport at Badgerys Creek.
Further information can be found in the press release of 15 April 2014 issued by the Prime Minister and the Deputy Prime Minister and Minister for Infrastructure and Regional Development.
Local Government Financial Assistance Grants — pause indexation for three years
The Government will achieve savings of $925.2 million over four years by pausing indexation of the Local Government Financial Assistance Grants Programme for three years commencing 1 July 2014.
Local Government Reform Fund — cessation
The Government will achieve savings of $1.2 million in 2013‑14 by withdrawing the remaining uncommitted funding from the Local Government Reform Fund.
Malaysia Airlines flight MH370 — search
The Government will provide up to $89.9 million over two years from 2013‑14 as part of Australia’s contribution to the search for Malaysia Airlines flight MH370.
Funding of $27.9 million over two years from 2013‑14 will be provided to the Department of Defence for the costs of its activities to 30 June 2014 in searching for MH370. Funding of $2.0 million over two years from 2013‑14 will also be provided to the Department of Infrastructure and Regional Development for the costs of establishing the Joint Agency Coordination Centre (JACC). The JACC was established on 30 March 2014 for an initial period of six months to support liaison with key stakeholders and help ensure strong and consistent communication of the Australian response to the MH370 incident.
Further funding of up to $60.0 million over two years from 2013‑14 will be provided to the Australian Transport Safety Bureau for Australia’s contribution to the next phase of the search. The actual cost will depend on a number of factors, including the outcome of procurement processes for specialist services, the length of the search, and the extent of contributions from other countries.
Further information can be found in the transcript of the Prime Minister’s press conference of 28 April 2014.
National Stronger Regions Fund — establishment
The Government will provide $1.0 billion over five years from 2015‑16 (including $200.0 million in 2018‑19 and 2019‑20) for a competitive grants programme to support the construction, expansion and enhancement of infrastructure across Australia. Grants will be available for projects to be delivered in partnership with local, state and territory governments, private sector and community groups. Funding partners will be required to contribute at least half the total project cost.
Further information can be found in the joint media release of 29 August 2013 by the then Opposition Leader and the then Shadow Minister for Infrastructure and Transport.
Norfolk Island — essential air services
The Government will provide funding in 2014‑15 to meet its commitments to Air New Zealand under an agreement for underwriting essential air services to Norfolk Island.
Funding for this measure is not for publication as negotiations with the service provider are commercial‑in‑confidence
Norfolk Island — financial assistance
The Government will provide $7.5 million to assist the Norfolk Island Government to meet its financial obligations.
This funding will allow for the ongoing provision of essential health, education, policing and utility services to Norfolk Island residents.
The Government will also provide $2.0 million to support improved governance on Norfolk Island.
See also the related expense measure titled Norfolk Island — governance reform
Norfolk Island — governance reforms
The Government will provide $2.0 million to support the delivery of a number of governance reforms on Norfolk Island.
Areas of reform include the development of improved financial management practices and performance audits of Norfolk Island Government business units.
Funding will also support the continued engagement of the Commonwealth Financial Officer to provide oversight and advice to the Norfolk Island Government on its budgeting and expenditure processes.
See also the related expense measure titled Norfolk Island — financial assistance.
Protection of the Sea Levy — reduction — offsetting savings
The Government will achieve savings of $39.0 million over four years by rephasing lower priority maritime safety initiatives. These savings will offset the reduction in revenue from lowering the rate of the Protection of the Sea Levy from 14.25 cents to 11.25 cents per net registered tonne for defined vessels on an ongoing basis from 1 July 2014.
See also the related revenue measure titled Protection of the Sea Levy— reduction in the Infrastructure and Regional Development portfolio
Smaller Government — Department of Infrastructure and Regional Development — savings
The Government will achieve savings of $17.6 million over five years from 2013‑14 as a result of the recent merger of the Department of Infrastructure and Regional Development and the former Department of Regional Australia, Local Government, the Arts and Sport. These savings will be achieved through the removal of duplicated corporate functions.
The Government will also achieve savings of $140.5 million from 2013‑14 as a result of lower than expected calls on contingency provisions within the Infrastructure Investment Programme.
Sustaining Australia’s Maritime Skills — cessation
The Government will achieve savings of $5.0 million over three years from 2013‑14 by not proceeding with funding for the Sustaining Australia’s maritime skills measure announced in the 2013‑14 Budget.
PRIME MINISTER AND CABINET
Australia hosting the Group of 20 — reduced funding requirement
The Government will achieve savings of $7.0 million in 2014‑15 by aligning the funding provided to the Department of the Prime Minister and Cabinet for the hosting of meetings related to the Group of 20 Leaders’ Summit in 2014, with two scheduled preparatory ministerial meetings.
Community Engagement Police Officers in the Northern Territory
The Government will provide $2.5 million over four years to the Northern Territory police to engage up to eight Community Engagement Police Officers in 2014‑15 and four officers in 2015‑16.
The primary role of the officers is to train, mentor and support other general duties police officers to build trust and improve communication with communities.
Permanent Police Presence in Remote Indigenous Communities
The Government will provide $54.1 million over four years to construct police infrastructure in up to seven remote Indigenous communities in Queensland, Western Australia and South Australia. An additional six police complexes will be constructed in the Northern Territory from existing funding of $48.7 million allocated under the Stronger Futures in the Northern Territory National Partnership Agreement.
The Government will focus on Indigenous communities with populations of greater than 300 that do not currently have a permanent police presence or are not located within a reasonable distance of the nearest police station.
Government support will be contingent upon the States and the Northern Territory committing to provide sufficient ongoing policing resources to use the facilities.
Smaller Government — National Security Legislation Monitor — cessation
The Government will achieve savings of $1.3 million over four years by ceasing the Independent National Security Legislation Monitor function.
Support for the Northern Territory Child Abuse Taskforce — continuation
The Government will provide $3.8 million over four years to continue the presence of Australian Federal Police (AFP) officers on the Northern Territory Child Abuse Taskforce.
The Child Abuse Taskforce was established in 2006. The AFP will continue to contribute five officers to the Taskforce in 2014‑15, before drawing down to three officers in 2015‑16.
National Homelessness Research Strategy — reduced funding
The Government will achieve savings of $3.1 million by returning uncommitted funding for the National Homelessness Research Strategy to the Budget. Homelessness research activities under way in 2013‑14 are not affected.
National Partnership Agreement on Homelessness — extension
The Government will provide $115.0 million in 2014‑15 to extend the National Partnership Agreement on Homelessness for a further year. This will ensure critical homelessness services continue to support some of Australia’s most vulnerable people. This will provide much needed certainty for homelessness services.
Further information can be found in the press release of 30 March 2014 issued by the Minister for Social Services.
TREASURY
Australian Competition and Consumer Commission — additional funding
The Government will provide funding of $68.5 million over four years from 2014‑15 to the Australian Competition and Consumer Commission (ACCC) to fund its operations. This funding will assist the ACCC to monitor prices and protect consumer interests in relation to the repeal of the carbon tax. The ACCC has put in place a range of financial management and governance reforms to ensure that it operates within its agreed budget from 2014‑15.
This funding is in addition to the $25.3 million provided in the 2013‑14 Additional Estimates for the ACCC to fund its operating costs in 2013‑14.
Funding for this measure for 2014‑15 to 2016‑17 was included as a ‘decision taken but not yet announced’ in the Mid‑Year Economic and Fiscal Outlook 2013‑14.
Australian Securities and Investments Commission — savings
The Government will achieve savings of $120.1 million over five years by reducing funding to the Australian Securities and Investments Commission (ASIC).
ASIC will adjust its priorities to ensure it continues to meet its statutory objectives.
Extension of Unfair Contract Provisions to Small Businesses
The Government will provide $1.4 million over four years to the Australian Competition and Consumer Commission to support the extension of unfair contract term provisions available to consumers under the Australian Consumer Law to small businesses.
Small businesses can face many of the same issues as individual consumers when negotiating contracts with big businesses.
Further information can be found in the Coalition’s Policy for Small Business
VETERANS’ AFFAIRS
Smaller Government — Defence Service Homes Insurance Scheme — independent scoping study
The Government will provide $0.2 million in 2014‑15 to undertake a scoping study on the future management and operations of the Defence Service Homes Insurance Scheme (DSHIS) by an insurance industry expert. The scoping study will inform the Government on options for more efficient DSHIS operations.
Western Front Interpretive Centre — Villers‑Bretonneux, France — initial funding
The Government will provide $6.9 million in 2014‑15 to develop a detailed business case for the construction of an Australian Western Front Interpretive Centre at Villers‑Bretonneux in France to be an enduring legacy of the Centenary of ANZAC. This funding will also enable the commencement of land acquisition, and preliminary project development and design activities.
REVENUE MEASURES
AGRICULTURE
Biosecurity services for imports and live animal exports — ensuring full cost recovery
The Government will move to full cost recovery of its biosecurity services for imports and live animal exports. Fees for import clearance, seaports, post entry animal quarantine and live animal exports will be set to recover expected operating costs for 2014‑15 in line with the provision of services on a user pays basis. For import clearance and seaports, revenue shortfalls in 2013‑14 will also be recovered in 2014‑15.
This policy will be implemented in accordance with the Australian Government’s cost recovery policy. The additional revenue is not for publication due to ongoing consultation with the relevant industries.
The new fees will come into effect on 1 July 2014.
The Government will also redesign and simplify the biosecurity cost recovery framework to support a more efficient and effective biosecurity system, with implementation expected to occur from 1 July 2015
IMMIGRATION AND BORDER PROTECTION
Korea‑Australia Free Trade Agreement
On 8 April 2014 the governments of Australia and the Republic of Korea signed the Korea‑Australia Free Trade Agreement. Under the Agreement, both parties agreed to eliminate tariffs on a wide range of goods and provide additional access for investment and services. Parties are working toward bringing the Agreement into effect by the end of 2014. This measure is estimated to reduce revenue from tariffs by $635.0 million, and increase expenses by $0.9 million, over the forward estimates period.
Further information can be found in the press release of 8 April 2014 issued by the Minister for Trade and Investment
TREASURY
Tax laws — miscellaneous amendments
The Government will make a series of minor amendments to the tax laws and superannuation laws to correct technical defects, remove anomalies and address unintended outcomes which have recently been identified. This measure is estimated to have a negligible impact on revenue over the forward estimates period.
The amendments include technical corrections to the uniform penalty rules that prevent certain penalties that are levied under the law from being collected and a number of amendments to address issues, raised by industry, in relation to the consolidation regime.
These changes are part of the Government’s commitment to the care and maintenance of the taxation and superannuation systems, and the Government’s broader deregulation agenda.
CAPITAL MEASURES
ATTORNEY-GENERAL’S
Australian Financial Security Authority — departmental capital budget supplementation
The Government will provide $12.1 million over four years to supplement the Australian Financial Security Authority’s departmental capital budget. Funding will be used for maintaining and upgrading core IT systems used for managing personal insolvency and proceeds of crime matters.
The cost of this measure is fully offset over five years through increased cost‑recovery fees and charges.
DEFENCE
Defence funding profile
The Government is committed to rebuilding Defence and is taking decisive steps to recapitalise it after a number of years of underinvestment and deferred funding for major capability projects.
The Government will bring forward $1.5 billion from 2017‑18 and distribute it over the period 2013‑14 to 2016‑17. Funding of the Approved Major Capital Investment Programme and important capabilities to support networked operations will be accelerated to reduce the risk of capability gaps and reinforce the Government’s commitment to strengthen Australia’s defence force.
Bringing forward $500 million to 2013‑14 will assist Defence to fund priority foreign military asset purchases, including the Growler electronic attack aircraft, the Romeo Naval anti‑submarine combat helicopter and the upgrade to the Naval Standard Missile‑2 long range anti‑aircraft missile.
The funds brought forward to the period 2014‑15 to 2016‑17 inclusive will address underinvestment in a range of important capabilities.
This measure also includes a movement of funds beyond the forward estimates period to smooth the Defence funding profile and put Defence spending back on an achievable growth path towards the Government’s objective of Defence funding of 2 per cent as a share of GDP.
This measure will ensure a realistic Defence funding trajectory, with total Defence funding of $29.2 billion in 2014‑15, $30.3 billion in 2015‑16, $30.4 billion in 2016‑17 and $32.9 billion in 2017‑18.
Defence real estate sales — direction of proceeds towards Defence projects
The Government will direct the net proceeds from the sale of Defence real estate to approved Defence projects. Defence will receive additional funding, estimated to be $156.2 million over five years, over and above the costs of preparing the land and buildings for sale.
United States Force Posture Initiative
The Government will provide funding for the up‑front costs of infrastructure development for the United States Force Posture Initiatives at Robertson Barracks and RAAF Base Darwin in the Northern Territory.
The cost of this measure will be met from within the existing resources of the Department of Defence.
The financial arrangements with the United States are still under negotiation. The cost of the infrastructure development is not for publication due to the commercial‑in‑confidence nature of the tender processes involved.
