Page 74 - Australian Defence Magazine Nov 2020
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                     74 BUDGET OVERVIEW
NOVEMBER 2020 | WWW.AUSTRALIANDEFENCE.COM.AU
 DEFENCE BUDGET 2020: CAN WE SPEND THE MONEY FAST ENOUGH?
Defence once again has the problem of spending its allocation fast enough
to suit the will of government. With the scene set for year on year budget growth, the department and industry have been challenged to answer the call.
KATHERINE ZIESING | CANBERRA
   AS SIGNALLED in the policy updates released in July this year, Defence is moving beyond the two per cent of GDP measurement as a benchmark to spend $270 billion over the coming decade on acquisition programs as part of a wider funding effort of $575 billion over the decade to 2029-30 for the Department, including the ASD as its own separate authority.
The Budget papers this year forecast total spending of $42.75 billion this financial year (2.19 per cent of GDP for those keeping track) and the trend only set to increase across the forward estimate period with GDP reaching the 2.38 mark in 23-24. See Figure 1 for details.
Defence industry has also played a vital role in the coro- nacoaster that is 2020, helping the wider economy weather the ups and downs of the pandemic that has affected every part of modern life globally.
Minister for Defence Senator Linda Reynolds was very positive about how Defence and Defence Industry worked together during this period.
“Australia’s defence industry has demonstrated remark- able versatility throughout the COVID-19 pandemic, and will continue to keep Defence capabilities and our Austra- lian economy moving,” she said. “Supporting Australia’s de- fence industry is crucial to our economic recovery and the creation of more jobs.”
During this period the government has implemented a $1 billion investment package aimed at boosting Aus- tralia’s defence industry and supporting thousands of jobs across the country. This includes increased fund- ing of over $110 million for Defence innovation, industry
FIGURE 1 – TOTAL DEFENCE SPENDING
grants, skilling and micro credentialing, and cyber train- ing for Defence industry.
The re-launch of the Skilling Australia’s Defence Indus- try (SADI) Grants program, which will deliver $39 million over the next three years to support a skilled workforce in the defence industry sector has also been welcomed. The new version of the program sees the equal co-contribution element removed.
“In addition to these grant initiatives, the Government is announcing a further $4 million to establish the Joint Strike Fighter Industry Support Program, delivering more opportunities for Australian industry participation,” the Minister announced. “This builds on the success of the New Air Combat Capability Industry Support Program, which has delivered 46 grants to 25 Australian companies, worth $21.7 million.
“Already we have fast-tracked a range of capability, infra- structure, skilling and workforce initiatives over the next two years, including a $300 million national estates works program focusing on regional areas, and $190 million on infrastructure projects in the Northern Territory.”
ADM has previously reported on this infrastructure drive and has yet to see evidence of it reflected on AusTender.
Around 4,000 Australian jobs will be supported over the 2020-21 and 2021-22 financial years through the delivery of this economic package, according to the Minister. The mea- sures will continue to support and grow the 70,000-strong workforce in defence industry, supply chains, and down- stream suppliers who are benefiting from our investment in defence, she said.
   SERIAL NUMBER
ITEM
  2019–20 ESTIMATED ACTUAL $M
 2020–21 BUDGET ESTIMATE $M
 2021–22 FORWARD ESTIMATE $M
2022–23 FORWARD ESTIMATE $M
 2023–24 FORWARD ESTIMATE $M
 TOTAL $M
  1
  Defence
  38.305.2
   41,715.1
   44,560.7
  48,426.5
   51,479.8
   186,182.1
  2
Australian Signals Directorate
  879.7
 1,030.9
 1,049.2
979.9
 987.5
 4,047.5
  3
  Consolidated Defence and ASD Funding
  39,184.9
   42,746.0
   45,609.9
  49,406.3
   52,467.3
   190,229.6
    Note: 1. Provides a consolidated summary of Defence POrtfolio Funding from Government as represented in hte 2020 Defence Strategic Update.
 














































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