OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
2021–22 Major Projects Report
Handling Note:
Deputy Secretary, Capability Acquisition and Sustainment Group, Mr Chris Deeble to
lead on the Major Project Report’s production and outcomes.
Vice Chief of the Defence Force, Vice Admiral David Johnston to lead on questions
about the security review and consideration of information to be withheld from
publication.
The respective Division Head or Capability Manager will lead on project-specific
questions.
Key Messages
The 2021–22 Major Projects Report, developed jointly by the Australian National Audit
Office and Defence, was released on 9 February 2023. It confirmed that the 21
projects, valued at $59 billion, performed strongly and steadily against the measures of
scope and cost during the review period.
Schedule performance continues to be an area for improvement; however, the
2021–22 Major Projects Report did not identify performance issues Defence was not
already alert to and managing.
On 29 June 2023 the Chair of the Joint Committee of Public Accounts and Audit
released Report 496: Inquiry into the Defence Major Projects Report 2020–21 and
2021–22 and Procurement of Hunter Class Frigates. Defence is considering these
recommendations.
On 20 November 2023 the Joint Committee of Public Accounts and Audit conducted a
hearing into the Defence Major Projects Report 2020–21 and 2021–22 and
Procurement of Hunter Class Frigates.
Defence remains committed to working collaboratively with the Australian National
Audit Office, ensuring the Report remains contemporary and supports public
transparency of Defence's project performance within the context of the current
security environment.
The 2022–23 Major Projects Report, under development for tabling in Parliament in
early 2024, considers 20 Defence major projects.
Talking Points
2021–22 Project Performance
The 2021–22 Major Projects Report confirms none of the 21 projects had a real cost
increase in 2021–22.
The 2021–22 Major Projects Report confirms 10 of the 14 projects with reported and
published Final Operational Capability forecast dates had no in-year schedule variation.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
Why has Defence chosen not to publish some information in this report?
Defence has not published some detailed project performance information on a
number of projects due to national security concerns.
Defence supplied the Australian National Audit Office with all information deemed ‘not
for publication’ so it could conduct an assurance review.
Defence understands the importance of transparency and accountability concerning
the spending of public money. Defence notes transparency must be achieved through
processes that protect our ADF capability and people.
The Government will carefully consider future public reporting and ensure it is
transparent and in the national interest.
Defence continues to publicly report on key acquisition and sustainment projects in the
Portfolio Budget Statements, Portfolio Additional Estimates Statements and the
Defence Annual Report.
When preparing the 2021–22 report, Defence provided the Australian National Audit
Office with full project schedule information. The Australian National Audit Office has
determined the provision of ‘not for publication’ information prevents it from reporting
a longitudinal analysis of schedule performance. The reporting of schedule
performance remains a matter for the ANAO.
Has there been a ‘cost blowout’ for these projects?
Budget variations occur because of changes to scope or real cost, scope transfers
between projects, and foreign exchange adjustments endorsed by the Government.
There have been no real cost increases in 2021–22 for the 21 projects in the 2021–22
Major Projects Report.
Budget increases for some projects in previous financial years are primarily related to
approved scope increases, including an additional 58 Joint Strike Fighters and an
additional 34 MRH90 Helicopters.
Why have some projects not reported forecast dates?
Some forecast dates are withheld on security grounds. Additionally, four projects did
not have forecast dates available for publication as at 30 June 2022.
The cancelled Future Submarines project and the Hunter Class Frigate project did not
have Final Operational Capability milestones approved by the Government as at
30 June 2022.
The Final Operational Capability forecasts for the Medium and Heavy Vehicles project
and the Pacific Patrol Boat Replacement project were under review as at 30 June 2022.
Project Achievements in 2021–22
The 2021–22 Major Projects Report highlights Defence’s achievements, including:
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
the Royal Australian Navy’s first Supply Class replenishment ship, HMAS Supply,
reaching Initial Operational Capability, and commissioning the second, HMAS
Stalwart;
two Guardian Class Patrol Boats being gifted to the Federated States of
Micronesia and the Cook Islands;
and the launch of the first Arafura Class Offshore Patrol Vessel NUSHIP Arafura on
16 December 2021.
Treatment of Defence Security Information
Australia’s strategic environment requires a change in mindset and practice when
communicating Defence capability. Defence is working to balance transparency, and
accountability with current security realities.
Defence and the Government will carefully consider future public reporting and ensure
it is transparent and in the national interest.
Background to the Joint Committee of Public Accounts and Audit Report 496 Audit
Recommendations (Inquiry into the Defence Major Projects Report 2020–21 and 2021–22 and
Procurement of Hunter Class Frigates)
The Australian National Audit Office tabled the 2021–22 Major Projects Report in the
House of Representatives on 9 February 2023.
The 2021–22 Major Projects Report indicated nothing has come to the attention of the
Auditor-General to suggest the information provided by Defence has not been
prepared in accordance with the Guidelines of the Parliamentary Joint Committee of
Public Accounts and Audit.
The Joint Committee of Public Accounts and Audit led an inquiry into matters contained
in the 2020–21 and 2021–22 Major Projects Reports. Defence attended two public
hearings.
Discussion on 19 May 2023 focused on the:
COVID-19 impacts to project schedule delays;
timeline for the announcement of the Civil-Military Air Traffic Management
System project as a Project of Concern; and
overall suitability and format of the Report.
Discussion on 20 November 2023 focused on the:
ongoing presentation and content of the Major Projects Report, which will
continue in its current format for the 2023–24 Major Projects Report;
opportunities to improve the content of the Major Projects Report, which
will continue to be undertaken collaboratively with the Australian National
Audit Office.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
On 29 June 2023 the Joint Committee of Public Accounts and Audit released Report
496: Inquiry into the Defence Major Projects Report 2020–21 and 2021–22 and
Procurement of Hunter Class Frigates. Defence is considering the recommendations.
Recommendation One: The Committee recommends that the Department of
Defence updates internal governance to require decisions for projects to enter
the Projects of Interest or Projects of Concern list be actioned in a timely manner,
taking no more than three months between decision and implementation.
Defence implemented a revised policy on the management of Projects and
Products of Concern and Interest. The current policy provides various
timelines for action, including target dates for completion of remediation
plans, but not an overall date for elevation to a Project of Concern or
Interest from decision to implementation. The policy will be updated to
reflect the Committee’s recommendation.
Recommendation Two: The Committee recommends that the Department of
Defence provide a detailed update on the implementation of and compliance
with internal policies for contingency funding and Lessons Learned for Major
Projects.
Defence is preparing a detailed update in response to this
recommendation.
The primary issue with contingency management is ensuring contingency
logs and risk registers are aligned in accordance with policy.
The Australian National Audit Office observed nine of 21 projects in the
2021–22 Major Projects Report did not have a Lessons Learned log in the
required location, and seven did not maintain a log at all. This highlighted
the need for Defence to share and understand the lessons from current and
previous major projects to better identify and mitigate risks for future
major projects.
Recommendation Three: The Committee recommends that the Department of
Defence provide an update on the requirements and consideration process to
close recommendations from the ANAO and the Joint Committee of Public
Accounts and Audit, including an explanation as to why Recommendation Four of
Report 489: Defence Major Projects Report 2019–20 has been closed without
meeting its intended purpose.
This recommendation referred to the requirement for Defence to define
terms associated with delay or deviation from a project milestone
achievement. Defence introduced the terms ‘caveat’ and ‘deficiency’ when
used in relation to project milestones, communicated via DEFGRAM
603/2022, released 19 December 2022. The Joint Committee of Public
Accounts and Audit and Australian National Audit Office believe further
definitional work should have been completed. The Vice Chief of the
Defence Force Group is working to close this aspect of the
recommendation and the Integrity Division is to provide a response as to
the mechanism for closing recommendations.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
Defence remains committed to working with the Australian National Audit Office, to
ensure that the Major Projects Report remains contemporary and supports public
transparency of Defence's project performance.
Defence and the Australian National Audit Office are working together to introduce
incremental improvements, consistent with guidance from the Joint Committee of
Public Accounts and Audit. Defence acknowledges no major changes will occur to the
Major Projects Report process until Defence considers a more detailed review of the
requirements in consultation the Committee and the Australian National Audit Office.
The 2022–23 Major Projects Report considers 20 Defence major projects and is under
development for tabling in Parliament in early 2024.
2021–22 Treatment of Defence Security Information
In accordance with the Joint Committee of Public Accounts and Audit Guidelines, the
Vice Chief of the Defence Force is accountable for assuring the security classification of
the project information within the Major Projects Report is at the ‘unclassified’ level,
including in aggregate.
The review took into account the risk to national security should information disclose
an ADF capability or identify a gap that could be used by foreign agents or adversaries.
Defence assessed that some project information should not be published on security
grounds. This has resulted in the Australian National Audit Office not publishing a
complete analysis of schedule performance and including commentary to suggest
Defence has reduced the level of transparency of performance information.
The Auditor-General included an ‘Emphasis of Matter’ in the Independent Assurance
Report signalling the importance of this element.
Four of the 21 projects had some dates or schedule-related information withheld from
publication:
Offshore Patrol Vessel (SEA 1180 Phase 1) — some forecast dates and schedule
variances.
Airborne Intelligence, Surveillance, Reconnaissance and Electronic Warfare
Capability (AIR 555 Phase 1) — original planned dates, forecast dates and
schedule variances.
Short Range Ground Based Air Defence (LAND 19 Phase 7B) — some current
contracted dates, forecast dates and schedule variances.
Jindalee Operational Radar Network (AIR 2025 Phase 6) — current contracted
dates, forecast dates and schedule variance.
Limited technical information was also withheld from publication for the New Air
Combat Capability (AIR 6000 Phase 2A/2B) project and the Maritime Communications
Modernisation (SEA 1442 Phase 4) project.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
/
s22
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
While the information has not been published, the Australian National Audit Office has
reviewed the material.
Supporting Information
Questions on Notice
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
In Q
QoN 1, Senator the Hon Linda Reynolds (Liberal, Western Australia) asked how to
further assist Defence with the capability approvals process.
In Q
QoN 2, Senator the Hon Linda Reynolds (Liberal, Western Australia) asked for the
number of Projects of Concern and Interest, and when Defence listed the Jindalee
Operational Radar Network project as a Project of Interest.
In Q
QoN 3, Senator the Hon Linda Reynolds (Liberal, Western Australia) asked for a
timeline of events regarding Defence elevating the Civil-Military Air Traffic
Management System project to a Project of Concern.
In Q
QoN 4, Senator Karen Grogan (Labor, South Australia) asked a question related to
COVID-19 impacts on major projects.
On 30 May 2023, the Committee submitted 34 written questions in addition to the
questions taken on notice during the hearing relating to:
COVID-19 impacts on projects;
the Projects of Concern and Interest process, and MRH90 as a Project of Concern;
risks and challenges associated with capability delivery for projects within the 2021–22
Major Projects Report; and
Defence’s response on ANAO findings related to risk management practices for major
projects; and
treatment of classified information in the Major Projects Report.
2022–23 Supplementary Budget Estimates – 15-16 February 2023
In Q
QoN 32, Senator David Shoebridge (Greens, New South Wales) asked for a table that
identifies the different projects against the $6.5 million cost blow out.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
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Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 5 September 2023, The Mandarin published an article by Anna Macdonald titled
“ANAO calls out public sector integrity”, reporting that in the ANAO Annual Report
2022–23, the Auditor-General had called for more accountability and integrity in the
public sector.
Division:
Strategy, Planning and Independent Assurance Division
PDR No:
SB23-001060
Prepared by:
Cleared by Division Head:
Suzanne Kerrigan
Suzanne Kerrigan
Acting First Assistant Secretary
Acting First Assistant Secretary
Strategy, Planning and Independent
Strategy, Planning and Independent
Assurance Division
Assurance Division
Mob: s22
Ph: s47E(d)
Mob: s22
Ph: s47E(d)
Date: 6 December 2023
Date: 6 December 2023
Consultation:
Major General Anthony Rawlins
Date: 6 December 2023
Head Force Design
Mob:
s22
Ph:
s47E(d)
Force Design Division
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary:
Chris Deeble
Date: 15 December 2023
Deputy Secretary,
Capability Acquisition Sustainment Group
Questions on notice referred to within the brief:
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Senator the Hon Linda Reynolds
Question Number: 1
Date question was tabled: 19 June 2023
Question
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
/
s22
Phone:
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Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
Senator REYNOLDS: Just on this particular line, while we have a capability life cycle—Defence
have many diagrams for how things all fit into each other—maybe one of the things that we
can look at as a parliament, Chair, is: what is the capability life cycle and what is a really
sensible way for auditing? Also, for parliamentary committees, at what point do we need to
dip in and inquire? For example, on the MPR, maybe we could have the defence committee
also represented in briefings, and PWC as well. Being on PWC at the moment, it—
CHAIR: Public works committee, not PricewaterhouseCoopers!
Senator REYNOLDS: That's topical! How can we actually better help Defence as well with the
cycle of public works committee hearings to help the delivery of the approvals that you need
for capability assets? We'll explore that further.
CHAIR: We'll take that as a rhetorical and we can think about it. Going to the Auditor-
General's point as well, just to move on—I'll give the call to Mr Violi in a second—I raised with
you six months ago your giving thought to the broader issue of how you audit the national
intelligence community, because traditionally you've not done a lot there because you can't
publish a lot, yet it's an enormously important part of the public sector—$3 billion or $4
billion—and that's almost a gap otherwise. It's a broader issue, in that you're having a think
about how else you can support us by auditing those parts of the public sector that shouldn't
be talked about in the public domain. It may require some legislative change for those
reasons.
Senator REYNOLDS: Just on that—as I say, I do appreciate some of the suggestions here, and
we will go through some of those shortly, I think, with Mr Violi—what we're saying is that
there is a conversation to be had here. Again, I'd ask Defence, in light of the discussion that
we've just had, whether you could go away and think about that further, and come back with
some more suggestions to the committee on how we could not only take a fresh approach
with the report itself, but, if we did start having a look at a different cycle of reporting, some
public and some not, we could then look at how we deal with that from this side, and how,
Auditor-General, what you can and can't say publicly fits into what's perhaps reported to us
and to Defence, and how we might report that publicly later.
CHAIR: Yes.
Senator REYNOLDS: Thank you.
Answer
Defence acknowledges the Committee’s intent to explore further how to better help Defence
with the capability approvals process, including the Public Works Committee. Defence is
holistically reviewing its capability acquisition process in light of the Government’s response
to the Defence Strategic Review to meet the need to move quickly and innovatively given the
evolving needs of Australia’s strategic environment.
Defence is working with ANAO on preparing the 2023-24 Major Projects Report Guidelines
for the Committee’s consideration. This will include reviewing the security considerations and
proposed updates to the format and content of the report to ensure that it is contemporary
and insightful. This will also consider how the MPR complements other public reporting to
achieve transparency and accountability, while ensuring that reporting is efficient and timely.
Consideration could also be given to the use of classified briefings for the Committee to
facilitate a balance between public transparency and the need to keep certain information
classified.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
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Phone:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Senator the Hon Linda Reynolds
Question Number: 2
Date question was tabled: 19 June 2023
Question
CHAIR: Are the Projects of Concern and Projects of Interest lists—or system, as it is now
reconceived—in public? Is it a public-facing list?
Mr Deeble: There are elements that are public—
CHAIR: So the fact that a project is on the list is a public fact?
Mr Deeble: Yes. We have been working closely with those companies, and clearly there is a
lot of sensitivity around that. One of the advantages—especially with respect to Projects of
Concern—is working closely with those who are industry-based to improve performance.
Recommendation 2, which came from the 2019–20 MPR, specifically talked to the Projects of
Concern. We look forward to working with ANAO, in particular, reviewing it in this MPR. That
action, hopefully, will be closed based on the work we have done to date.
Senator REYNOLDS: I want to run down a couple of rabbit holes in this area before I move on
to risk—
CHAIR: You're selling it well.
Senator REYNOLDS: just to get into the more granular detail of some of the issues that we've
discussed. Can you confirm how many projects are of interest and of concern on the list now,
and has that changed? Have any been added? How many are on the list, first, and how many
have been added since the DSR's release?
Mr Deeble: As at 31 March, there were two projects on the Projects of Concern list, but
there has since been another project that's been raised from Projects of Interest to Projects
of Concern. The multi-role helicopter is a longstanding Project of Concern. The Civil-Military
Air Traffic Management System, as we noted earlier, is back on the list now—having gone off
the list in the 2018 time frame—because of its performance, as we are thinking about that. A
SATCOM program at the ground station in the east, in Wagga, and the network management
system underneath that, was raised on 31 March to a Project of Concern, which means that
it's been raised from Projects of Interest. There are currently 13 projects of interest that we
are tracking.
Senator REYNOLDS: Which ones are they?
Mr Deeble: The Jindalee Operational Radar Network; that performance is improving and we
will be reviewing it.
Senator REYNOLDS: That was with BAE; is that correct?
Mr Deeble: It's a combination with BAE. I can get Dave Scheul to comment. It's BAE
predominantly, but there are other subcontractors underneath it. There is the airborne early
warning and control, a phase 5A interoperability compliance upgrade; the fixed defence air
traffic control surveillance sensors; and new air combat capability.
Senator REYNOLDS: What aspect of that?
Mr Deeble: I think that, having run the Joint Strike Fighter program, it is its strategic
significance. There have been a range of issues over the years, but it is a strategically
significant program.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
/
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Phone:
s47E(d)
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PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
Senator REYNOLDS: How long has that been on the list of Projects of Interest?
Mr Deeble: I'd need to take that on notice and come back.
Answer
There are three Projects of Concern:
1. Multi-Role Helicopters (MRH-90) (AIR 9000 Phases 2, 4 and 6).
2. Civil-Military Air Traffic Management System (CMATS) (AIR 5431 Phase 3).
3. Satellite Ground Station East and Wideband SATCOM Network Management System
(JOINT 2008 Phase 5B2). This project was elevated in April 2023, and is the only change to
the list since the release of the Defence Strategic Review.
There are 11 Projects of Interest now that Satellite Ground Station East and Wideband
SATCOM Network Management System (Joint Project 2008 Phase 5B) has been elevated
from a Project of Interest to a Project of Concern, and Larrakeyah Defence Precinct
Redevelopment Program achieved its exit criteria and exited the list in May 2023. The 11
Projects of Interest are:
1. Jindalee Operational Radar Network (AIR 2025 Phase 6)
2. Airborne Early Warning and Control Interoperability Compliance Upgrade (AIR 5077
Phase 5A)
3. Fixed Defence Air Traffic Control Surveillance Sensors (AIR 5431 Phase 2)
4. New Air Combat Capability (AIR 6000 Phase 2A/B)
5. Battlefield Command System (LAND 200 Phase 2)
6. Future Frigate – Design and Construction Hunter-Class Frigate (SEA 5000 Phase 1)
7. USFPI Northern Territory Training Areas and Ranges Upgrades (EST 1990)
8. General John Baker Complex - Capability Assurance Project (EST J0024 Phase 0 Tranche 1)
9. Cyber Security Capability Program (ICT 2271)
10. Enterprise Resource Planning Program (ICT 2283)
11. One project’s title is withheld from publication for reasons of national security.
The Jindalee Operational Radar Network project (Joint Project 2025 Phase 6) was first listed
as a Project of Interest in September 2019.
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Senator the Hon Linda Reynolds
Question Number: 3
Date question was tabled: 19 June 2023
Question
Senator the Hon Linda Reynolds CSC asked the Department of Defence the following
question, upon notice, on 19 May 2023:
Senator REYNOLDS: Thank you very much; that's very helpful. I will turn back to CMATS.
There is a comment about the minister in the report. It says:
In September 2021, the Minister for Defence made a written direction that CMATS return to
the Projects of Concern list. Defence did not update internal reporting, such as the Acquisition
and Sustainment Update and its Projects of Concern list, in response to the Minister's
direction.
You've gone through the circumstances that led to that. First of all, the question is: why
didn't Defence update its internal reporting? Also, can you explain the role of the minister? If
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
/
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Phone:
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PDR No: SB23-001060
Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
the minister puts something in writing, does that carry weight, in terms of adding, or not?
Can you unpack that, because it's a bit puzzling on the face of it.
Air Vice-Marshal Scheul: The Minister for Defence, in September 2021, did indicate that the
project was to be raised to a project of concern. As I said previously, in order to go through
the processes and procedures to announce that as a project of concern, we were required to
do extensive consultation across other government departments and with Airservices
Australia. That was the reason for the delay at the time.
Senator REYNOLDS: On the face of it, that makes sense. But the minister has directed this
and it's clear that it is going to go back up, but the delay is the department. Was that
consultation going to change the decision that it would go on the list or was that more about
the process once it's gone on the list?
CHAIR: … There was a 13-month delay in making public that direction. Was it put on the
Projects of Concern list when the minister directed it? I'm trying to understand: was the 13-
month delay a delay in making it a project of concern or was it a delay in announcing the fact
that it had been made a project of concern 13 months before? They are two quite materially
different things.
Air Vice-Marshal Scheul: I think the department would consider that the delay was in the
announcement.
Mr Ioannou: Chair, could I just comment?
CHAIR: Yes, Mr Ioannou.
Mr Ioannou: We reported on this in paragraph 1.23 of the MPR. I'll just read it out; it's the
simplest thing to do: In September 2021, the Minister for Defence made a written direction
that CMATS return to the Projects of Concern list. Defence did not update internal reporting,
such as the Acquisition and Sustainment Update and its Projects of Concern list, in response
to the Minister's direction.
Senator REYNOLDS: That's not even the public-facing list; that's the internal-facing list. That's
the list itself.
CHAIR: That kind of contradicts what you just said.
Air Vice-Marshal Scheul: What I would say—
CHAIR: We're not trying to be difficult.
Air Vice-Marshal Scheul: I understand. I guess what I'm saying is that, when the department
places those project of interest/project of concern indicators in its reporting system, that
ultimately becomes publicly available in various forms, so we would not do that until the
minister has had an opportunity to publicly announce the project being raised.
Senator REYNOLDS: But he did it. Perhaps we could ask for a time line for this, on notice;
otherwise we could sit here and go round and round. Could you be very clear, on notice,
then? Presumably, it was consultation with Airservices Australia and the Department of
Infrastructure, Transport, Regional Development, Communications and the Arts in relation to
that. Can you unpack that for us? It seems somewhat extraordinary. It's hardly going to
surprise anybody who has had anything to do with Defence and projects, publicly as well,
that CMATS has been a long-term project of lack of delivery.
CHAIR: I think taking it on notice is a good idea.
Senator REYNOLDS: Yes, so that we can see what these 12 months of discussions were.
CHAIR: …If you want to provide, on notice for Senator Reynolds, the timeline—
Senator REYNOLDS: I think that would be helpful.
CHAIR: It may be that you are effectively saying that this is an aberration because it's a
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
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Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
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Key witnesses: Chris Deeble; Vice Admiral David Johnston
different agency. Airservices have not covered themselves in glory in their own audit report
on this topic.
Answer
In September 2021, Defence was advised that the Minister for Defence had provided written
advice that the Civil-Military Air Traffic Management System (CMATS) project (AIR5431 Phase
3) should be elevated to a Project of Concern.
From October 2021, Defence undertook extensive consultation with Airservices Australia and
the Department of Infrastructure, Transport, Regional Development and Communications
regarding the imminent elevation of the project, noting Airservices Australia is the contract
authority and lead agency for CMATS.
In March 2022, Defence provided a Ministerial update on the removal of the Deployable
Defence Air Traffic Management and Control System project (AIR5431 Phase 1) from the
Project of Concern list and the elevation of the Civil-Military Air Traffic Management System
(CMATS) project.
In April 2022, the Government of the day entered the caretaker period before the upcoming
election.
In August 2022, Defence provided advice to the Minister for Defence Industry on the status
of the Defence Projects of Concern list, including the removal of the Deployable Defence Air
Traffic Management and Control System project and elevation of the Civil-Military Air Traffic
Management System (CMATS) project.
In October 2022, the current Minister for Defence Industry considered the performance of
the Civil-Military Air Traffic Management System (CMATS) project and announced the project
would be elevated to the Project of Concern list.
Between September 2021 and October 2022, to assist in remediation planning activities,
Defence with Airservices Australia increased the frequency of the Program’s quarterly senior
governance committees to monthly. These committees included both the Joint Executive
Committee, between Defence and Airservices Australia, and the CMATS Executive
Committee, which includes Defence, Airservices Australia and Thales Australia. The project
continued to receive additional executive oversight and management in accordance with
Defence’s Projects of Concern and Interest processes, which includes additional Ministerial
reporting.
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Senator Karen Grogan
Question Number: 4
Date question was tabled: 19 June 2023
Question
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
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Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
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Key witnesses: Chris Deeble; Vice Admiral David Johnston
Senator GROGAN: I want to touch on the COVID impact on projects. The 2020–21 report
mentions that 16 projects out of 21 have been impacted. Have any of them been impacted in
a significant, ongoing way?
Mr Deeble: The COVID impact is still with us, on supply chains. COVID has exacerbated a
number of other factors, inflationary factors and otherwise, in regard to supply chains. The
effect is still being felt in many projects. I am happy to provide you—I will take that offline—
with an indication of those programs where the impact I would assess as being significant to
you. I would prefer to take that offline rather than talk about a definitive list at this point.
Senator GROGAN: Certainly.
Mr Deeble: We continue to work with some companies because it does have commercial
impact in terms of schedule or other things that we are continuing to work through.
Senator GROGAN: I'm happy to take this offline as well, but the longitudinal analysis that you
have in there indicates that slippage has a variety of reasons but that it primarily reflects the
underestimation of scope and complexity of work. I'm keen to understand, across that impact
of delays and slippages in the projects, what you would quantify as being COVID related and
what may be related to that challenge around scope and complexity of work. That would be
really helpful.
Answer
No 2020–21 Major Projects Report projects reported adjustments to scope or requirements
due to the impact of the COVID-19 pandemic. COVID-19 impacts were related to project
schedules.
Of the 2020–21 Major Projects Report projects, 16 of these reported an impact on their
schedules as a result of COVID-19. The common COVID-19 schedule impacts resulted from
supplier disruption (supplier production and/or shipping delays); workforce limitations
relating to travel (specialists and crew were due to travel both interstate and from other
countries to work with/on the projects or to deliver/undertake training) and social distancing
restrictions; and/or contractor delays (scope, delivery and certification delays).
Four projects experienced unrecoverable schedule delay from six to 12 months, some with
carry over effects the following year on either Initial Operational Capability or Final
Operational Capability including:
1. Maritime Communication Modernisation (SEA 1442 Phase 4)
a. The COVID-19 impacts were related to travel restrictions impacting workforce and delivery
of materials that impacted Initial Operational Capability and Final Operational Capability
by 12 months respectively.
2. ANZAC Air Search Radar Replacement (SEA 1448 Phase 4B)
a. The COVID-19 impacts were related to travel restrictions and training impacts that
impacted Initial Operational Capability by 13 months.
3. Short Range Ground Based Air Defence (LAND 19 Phase 7B)
a. The COVID-19 impacts were related to export approvals, travel restrictions and industry
supply chain that delayed Initial Operational Capability by six months.
4. Battlespace Communications System (JOINT Project 2072 Phase 2B)
a. The COVID-19 impacts were related to travel restrictions, social distancing and supply
chain issues that delayed Final Operating Capability by 12 months.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
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Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Question Number: Additional Questions 1-11
Date question was tabled: 19 June 2023
Question
1. Do you expect COVID-19 to continue to impact the projects across the MPR? Are these
impacts likely to be new, or continuations of known impacts?
2. Can the Department provide more details on the specific reasons cited by the six projects
that reported an underspend on their budget due to the COVID-19 pandemic?
3. What measures did the Department undertake to ensure the continuity and resilience of
major projects during the COVID-19 pandemic, as highlighted in the ANAO's report?
4. Can the Department provide an overall assessment of the impact of the COVID-19
pandemic on the timelines and delivery schedules of major projects outlined in the ANAO
report?
5. How did the Department address the challenges posed by the pandemic in terms of
supply chain disruptions and availability of skilled personnel for major projects?
6. Can the Department provide an overview of any adjustments made to the scope or
requirements of major projects due to the impact of the COVID-19 pandemic, and how
were these changes managed?
7. How did the closure of shipyards and international travel restrictions affect the budget
and scheduling of major projects?
8. How did the Department ensure that health and safety protocols were effectively
implemented to protect workers involved in major projects during the COVID-19
pandemic?
9. How did the Department coordinate with relevant stakeholders, such as industry partners
and contractors, to mitigate the impact of the COVID-19 pandemic on major projects?
10. Can the government outline any specific initiatives or contingency plans developed to
address potential future disruptions or uncertainties arising from similar crisis situations,
based on the experiences of the COVID-19 pandemic and the ANAO's report?
11. What lessons were learned from the Department's response to the COVID-19 pandemic
in terms of managing major projects, and how will these lessons be applied to enhance
resilience in future crises?
Answer
1. The impacts of COVID-19 to project delivery related supplier disruption (supplier
production and/or shipping delays); workforce limitations relating to travel (specialists
and crew were due to travel both interstate and from other countries to work with/on
the projects or to deliver/undertake training) and social distancing restrictions; and/or
contractor delays (scope, delivery and certification delays). There were only four projects
that experienced unrecoverable schedule delay as outlined in Defence’s response to
Question No. 4 from Senator Grogan.
2. The six 2020–21 MPR projects that reported an underspend on their budget due to the
COVID-19 pandemic related to delay to training and support, overseas suppliers,
shipyard closures and international travel restrictions. One of these projects has
highlighted an impact to the budget as an emerging issue.
Offshore Patrol Vessel (SEA 1180 Phase 1)
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
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Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
The project reported an in-year underspend reflecting schedule delays as a result of
COVID-19 in achieving contractual milestones and underspend on Project Office costs
and government furnished equipment.
Collins Class Communications and Electronic Warfare Program (SEA 1439 Phase 5B2)
The project reported an in-year underspend due to milestone delays as a result of
COVID-19 travel restrictions and lower than forecast Foreign Military Sales and ASC
Pty Ltd (major contractor) payments.
Maritime Operational Support Capability (Replacement Replenishment Ships) (SEA
1654)
The project reported an in-year underspend, reflecting the transfer of additional
works from Spain to Australia and Contract Change Proposal delays for final
deliveries. Production of the AOR Ships continued in Spain until the shipyard was shut
down for 12 weeks from 14 March 2020 to 8 June 2020 in response to the COVID-19
pandemic and the nationwide lockdown. On return to work, productivity was reduced
by the need to meet strict post-COVID work procedures limiting workforce numbers,
additional cleaning and social distancing. The overall forecast delay to Ship 1 was six
months.
Combat Reconnaissance Vehicles (LAND 400 Phase 2)
The project reported an in-year underspend reflecting later than expected
achievement of milestones due to technical difficulties and delays in the global Boxer
program, some of which are a result of COVID-19 impacts on the supply chain and
travel restrictions.
Joint Strike Fighter (AIR 6000)
The project noted that the COVID-19 schedule impacts related to delays in supply
chains and production efforts of the F35 prime contractors Lockheed Martin and Pratt
& Whitney may have a potential cost impact. The 2021–22 MPR did not reflect the
realisation of this potential cost impact.
Battlespace Communications Systems (JOINT 2072 Phase 2B)
The project reported an in-year underspend due to COVID-19 impacts related to
inability to travel, supply chain issues, and human resource inefficiencies due to
lockdowns.
3. Defence industry remained strong and responsive during the pandemic, minimising
impacts to projects. Ongoing genuine partnership and cooperation between Defence and
industry occurred to safely continue to equip and sustain the ADF. Initiatives included:
Increased rate of Defence and industry engagement, building on the Ministerial calls
with industry leaders and industry groups.
Defence establishing a COVID-19 Industry Support Cell (CISC) on 25 March 2020 to
respond quickly to urgent issues affecting defence industry. As the pandemic evolved,
CISC worked closely with a range of stakeholders, including defence companies and
international airlines, to facilitate continued trade of Defence goods and services and
remain connected to the Whole-of-Government COVID-19 response. The Impacted
SME Support Cell (ISSC) was established in October 2021 to support SMEs impacted
by the cancellation of the Attack Class Submarine Program.
Defence accelerated the payment of supplier invoices and ensured prime contractors
flowed this down to Australian small business. Between March 2020 and June 2021,
more than $31.7 billion was paid early to industry, providing a significant boost to the
economy and our Defence industry partners. This resulted in suppliers receiving
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
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Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
payments up to two weeks earlier; maintaining cash flow in the economy, and
protecting jobs.
Defence also instituted a recovery deed, which allowed defence industry to continue
to safely meet contractual obligations while dealing with the uncertainty caused by
disruptions to domestic and international travel, supply chains and local restrictions.
The recovery deed was in effect from March 2020 to December 2020 and focused
contractors on performance rather than having to consider whether they needed to
invoke contractual mechanisms to seek relief.
4. Four MPR projects experienced unrecoverable schedule delay as outlined in Defence’s
response to Question No. 4 from Senator Grogan.
5. Defence remained connected to the Whole-of-Government COVID-19 response and
worked with Prime Contractors, Federal and State Governments and airlines to facilitate
continued movement of trade of defence goods and services and availability of skilled
personnel (including from overseas) for major projects.
6. No 2020–21 MPR projects reported adjustments to scope or requirements due to the
impact of the COVID-19 pandemic. COVID-19 impacts were related to project schedules.
7. The 2020–21 MPR projects that had COVID-19 schedule impacts related to
manufacturing facilities such as the closure of shipyards or by international travel
restrictions include:
Offshore Patrol Vessel (SEA 1180 Phase 1)
The COVID-19 pandemic affected multiple aspects relating to construction and in
particular, activities at Osborne Shipyard in South Australia from March to October
2020. COVID has continued to have an adverse and significant effect on production
and ship building operations supply chain disruptions, resource limitations and hard
border closures between Western Australia and South Australia. A recovery Contract
Change Proposal re-baselined the delivery dates of OPV 1 (Arafura) and OPV 2 (Eyre)
by six months.
Maritime Operational Support Capability (SEA 1654 Phase 3)
The Spanish ship yards were closed for 12 weeks and slowly ramped up over many
months to full production. In addition to international travel restrictions ships were
brought to Australia much earlier than planned to complete outfitting.
Pacific Patrol Boat Replacement (SEA 3036 Phase 1)
The project does not have any ongoing schedule impacts due to COVID-19 related
international travel restrictions. There was a one-month delay in Pacific Island Nations
crews travelling for training to Australia during the COVID-19 international travel
restrictions but this delay was recovered.
Maritime Communications Modernisation (SEA 1442 Phase 4)
The COVID-19 impacts related to travel restrictions affected workforce availability and
delivery of materials with a delay on Initial Operational Capability and Final
Operational Capability by 12 months respectively. The project did facilitate a number
of international travel exemptions for Prime Contractor’s specialists to travel to WA to
conduct crucial test and trial activities.
Combat Reconnaissance Vehicles (LAND 400 Phase 2)
The Commonwealth and Rheinmetall Defence Australia signed a Contract Change
Proposal that agreed to a six-month delay to reflect the impacts of COVID-19 up to 31
December 2020 that was related in part to the supplier’s Germany manufacturing
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
restrictions and the transitioning of production related work to Australia earlier than
planned to mitigate this impact.
Short Range Ground Based Air Defence (LAND 19 Phase 7B)
International and domestic travel restrictions, industry quarantine measures and
delayed export approval resulted in an agreed six-month delay to Initial Operating
capability.
New Air Combat Capability (AIR 6000 Phase 2A/2B)
COVID-19 international travel restrictions in calendar years 2020 and 2021 impacted
some verification and validation activities; however, there was no significant impact
to the overall schedule for achievement of Final Operational Capability.
8. As required by State mandates, Defence suppliers provided health and safety equipment,
complied with vaccination requirements, implemented social distancing including shift
work where possible, implemented work from home, and the industry workforce
complied with quarantine requirements for interstate or international travel. Where
compliance with pandemic requirements impacted the workplace, industry was able to
engage with Defence to institute a recovery deed, which allowed defence industry to
continue to safely meet contractual obligations while dealing with the uncertainty
caused by disruptions to domestic and international travel, supply chains and local
restrictions.
9. During the pandemic, Defence and industry maintained an ongoing genuine partnership
to safely continue to equip and sustain the ADF. There was an increased rate of Defence
and industry engagement, building on the Ministerial calls with industry leaders and
industry groups. Defence also established a COVID-19 Industry Support Cell (CISC) on 25
March 2020. The goal of CISC was to assist and support defence industry through the
COVID-19 pandemic by:
Providing a coordination mechanism across the Australian Government for proposals
from defence industry to support response efforts to COVID-19;
Proactively providing information to defence industry and industry bodies on Defence
and Whole-of-Government response efforts and opportunities;
Engaging with the States and Territories to allow for defence industry activity to
continue across Australia; and
Engaging with international partners to facilitate freight of defence equipment, as
well as provide advice to project management offices and contractors where
necessary on travel regulations and COVID restrictions.
10 and 11. Defence continues to review its industry policy and contractual mechanisms
consistent with its and industry’s pandemic experiences. Lessons learned during the
pandemic – such as the early engagement of Defence Primes; Defence’s accelerated
payment of supplier invoices; the introduction of industry recovery deeds; and the facilitation
of ongoing advice and guidance on safe business practices, including assistance in negotiating
travel restrictions – demonstrated Defence’s commitment to proactively responding to and
managing future crises.
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Question Number: Additional Questions 12-22
Date question was tabled: 19 June 2023
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
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Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
Question
12. How will the new policy for the management of Projects of Interest and Concern Policy
improve consistency in Defence’s processes? Are there more improvements to come for
the Projects of Interest and Concern regime?
13. How has the Department addressed the recommendations made by the Auditor-
General regarding the management of Projects of Concern?
14. What steps does the Department take to communicate that a particular project has been
included in the Projects of Concern list, to stakeholders, governments, and defence
personnel?
15. What is the level of oversight and scrutiny that is applied to Projects of Concern,
including the involvement of senior managers and ministers of monitoring the issues?
16. Can the Department provide an update on the implementation status of the
recommendations made by the Auditor-General in relation to the management of
Projects of Concern, as reported in both reports?
17. Can the Department provide an update on the progress made in remediating the MRH90
Helicopters project, which has been listed as a continuing Project of Concern since
November 2011?
18. What specific issues and technical challenges have contributed to the MRH90
Helicopters project being designated as a Project of Concern, and how have these issues
impacted the achievement of milestones on schedule?
19. Can the Department provide details on the progress made in delivering the materiel
capability/scope components of the MRH90 Helicopters project?
20. What are the implications of the government's decision to replace the MRH90 helicopter
fleets with MH-60R Seahawk helicopters for project SEA 9100 Phase 1 Improved
Embarked Logistics Support Helicopter Capability?
21. Can the Department provide an assessment of the timeline slippage and total months of
delay experienced by the MRH90 Helicopters project since its placement on the Projects
of Concern list in 2011?
22. Can the Department provide an update on the status of the CMATS project and what
actions are being taken to mitigate further delays?
Answer
12. The purpose of the policy is to strengthen the arrangements for performance
management and reporting. The policy introduces a consistent Defence approach for the
management and coordination of performance monitoring and reporting for acquisition,
sustainment and support activities. It provides specific guidance on the identification of,
and response to, underperformance, through a tiered system of elevation, enabling
timely advice to the relevant decision makers, and the prompt remediation planning for
projects and products. There has been noticeable impact on the level and vigilance of
senior management’s attention to projects and sustainment products that are
experiencing performance issues and challenges.
13. Auditor-General Report No. 31 Defence’s Management of its Projects of Concern of
2018–19 was published on 26 March 2019 and made two recommendations, closing in
November 2021 and May 2023 respectively. Defence is implementing the six reform
measures, announced in October 2022 by the Deputy Prime Minister and the Minister
for Defence Industry, to strengthen and revitalise the Projects of Concern regime,
including the development and implementation of a new policy and approach applied
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
across Defence. The policy includes the requirement for remediation plans and
evaluating the achievement of those plans, and convening regular Ministerial summits to
discuss remediation plans.
14. Defence takes steps to identify the communication requirements for each project listed
as a Project of Concern. Depending on the commercial arrangements, stakeholder
identification and engagement is adjusted to the particular delivery model for the
project. As highlighted in the new policy, projects are elevated in consultation with
delivery, capability and senior Commonwealth and industry partners. Occasionally,
Government to Government engagement is also required. A media release follows a
decision by the Minister for Defence Industry to list a project as a Project of Concern. The
Projects of Concern are reported publicly in the Defence Annual Report.
15. The level of oversight and scrutiny that is applied to Projects of Concern, including the
involvement of senior managers and ministers monitoring the issues, is intensive and
tailored to the project delivery model and commercial arrangements. Usually, Defence
and industry will monitor remediation through frequent senior level governance boards.
External experts through the Capability Acquisition and Sustainment Group’s
Independent Assurance Review panel will apply knowledge to remediation planning.
Through the Ministerial Summit process, remediation goals and exit criteria are endorsed
by the Minister for Defence Industry. Monthly performance reporting to the Minister for
Defence Industry focuses on achievement of remediation activities and progress toward
exit criteria.
16. Both recommendations from ANAO’s audit of Defence’s Management of its Projects of
Concern are closed following the Defence Chief Audit Executive approved closure of
recommendation two on 2 May 2023. Recommendation one was closed in November
2021.
17. The outstanding technical issues associated with the MRH90 system were unable to be
fully remediated. Consequently, the capability requirement will now be achieved through
the replacement of the MRH90 fleet with 40 UH-60M Black Hawk helicopters under the
MRH Rapid Replacement project (LAND 4507 Phase 1). This was formally announced by
Defence on 18 January 2023.
18. It will remain a Project of Concern until project closure due to ongoing and unacceptable
issues which have significantly constrained the MRH90 system’s capacity. These issues
include a high cost of ownership, poor supply chain performance, and inadequate fleet
serviceability and availability. It is Defence’s assessment that these support system issues
will persist, and continue to constrain the response options available to Government.
19. The MRH90 will not deliver the full scope of capabilities within the special operations
role, and is not providing sufficient availability to support Army’s conventional land
combat and amphibious capabilities. As a result, the MRH90 Final Operational Capability
milestone will not be achieved. Following the announcement of MRH Rapid Replacement
project, the MRH90 Project was directed to reduce or cancel the outstanding acquisition
scope.
20. On 9 May 2022, the former Government announced the acquisition of an additional 12
MH-60R Seahawk helicopters to replace Navy’s MRH90 fleet in the Maritime Support
Role. Navy has since ceased MRH90 flying operations.
21. Following an Independent Assurance Review of the project conducted in April 2022, the
project Senior Executive directed that the project was to remain a Project of Concern
until project closure. Final Materiel Release milestone has been delayed more than eight
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Key witnesses: Chris Deeble; Vice Admiral David Johnston
years from the date originally planned, and Final Operational Capability will not be
achieved.
22. In October 2022, the Minister for Defence Industry elevated CMATS to the Projects of
Concern list, due to ongoing contractor underperformance and schedule delays.
Defence is working closely with Airservices Australia and Thales Australia to address the
issues that have resulted in the inability to meet milestones to date. Defence and
Airservices have increased senior executive management, and Ministerial oversight of
the project has increased through the Project of Concern Summit process. The Project of
Concern remediation approach includes revising system development and deployment
to achieve efficiencies; improving schedule and resource management; and improving
governance framework and execution.
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Question Number: Additional Questions 23-26
Date question was tabled: 19 June 2023
Question
23. Eleven projects in the 2021–22 report indicated they will deliver all key capability
requirements without elevated risk. According to the Department, what factors have
contributed to their successful management and delivery?
24. For the projects where capability delivery is under threat but is assessed as manageable,
what measures is the Department taking to mitigate any risks?
25. The 2021–22 report highlights 10 projects experiencing challenges in capability/scope
delivery including the Joint Strike Fighter, Hunter Class Frigate and Future Subs. What
specific steps is the Department taking to address the challenges they are facing?
26. Are there any systematic issues/reoccurring challenges within Defence procurement and
project management processes that have contributed to some projects facing difficulties
in capability/scope delivery?
Answer
23. The projects’ confidence to be able to deliver the full materiel scope demonstrates
effective risk management, ensuring that progress towards capability delivery remains on
track, even when managing significant technical, schedule or cost pressures.
24. Projects where capability delivery is at risk are considered for elevation under senior
oversight, in line with the Delivery Group performance reporting and management
policy. Through Independent Assurance Review processes all of these projects have been
reviewed and considered for elevation. With the exception of the Pacific Patrol Boats and
Future Submarine projects, some projects were formerly elevated, are currently elevated
or under active consideration, with exit criteria and remediation plans either in place or
under development.
25. For the 10 projects highlighted in the 2021–22 report, the following steps are or have
being taken:
The Future Submarine program was cancelled as a consequence of the AUKUS
decision on 16 September 2021.
The full capability scope of the Multi Role Helicopter (MRH90) project will not be
realised, and Government directed any capability shortfalls be addressed through the
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
MRH Rapid Replacement (LAND 4507 Phase 1) project. With the final deliverables and
closure pathway agreed, it will remain a Project of Concern until closed.
For Hawkei, a former Project of Interest, in October 2021, Government approved the
reduction to project scope of two Hawkei vehicles to support an export opportunity.
This represents a reduction of 0.2% of the number of vehicles to be delivered by the
Project.
Significant program changes have been made to the Battlefield Command System
project. The Commonwealth entered into a contract with Boeing Defence Australia
for an activity to risk reduce the aerial component of Terrestrial Range Extension
System.
For Joint Strike Fighter, a Project of Interest, Government agreed to deliver Maritime
Strike capabilities in a timeframe closely following that of the United States Navy.
Hunter Class Frigates, a Project of Interest, is managing design risk through a zonal
design program. The detailed design zone schedule remains on track. Schedule and
cost remain high risk.
For Pacific Patrol Boats, six boats are facing delays due to the imperative to rectify
defects and enhance safety. None of this is considered to be a serious threat to the
realisation of full capability.
For Offshore Patrol Vessel, an Independent Assurance Review Board has made a
number of recommendations regarding design issues and contractor performance
that will inform the next steps, and remediation of issues.
For Overlander Medium/Heavy, Initial Operational Capability was achieved with
caveats due to delays in achievement of air certification. Achieving air certification by
Initial Operational Capability remains a medium risk after mitigation.
26. More complex developmental projects come with increased risk and increased levels of
complex structural and technical integration required. Defence is holistically reviewing its
capability acquisition process in light of the Government’s response to the Defence
Strategic Review to meet the need to move quickly and innovatively given the evolving
needs of Australia’s strategic environment.
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Question Number: Additional Questions 27-31
Date question was tabled: 19 June 2023
Question
27. How is Defence addressing ANAO’s findings relating to its risk management practices for
major projects?
28. Has ANAO seen a change in how Defence approaches risk management since the 2019–
20 MPR?
29. How is Defence addressing the lack of clarity in the relationship between contingencies
and identified risks?
30. Please provide an update on Defence’s implementation of a lessons learned framework
for major projects.
31. Does Defence undertake any compliance on lessons learned activities?
Answer
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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27. Defence continues to mature and uplift its risk management practices, following the
completion of the Capability Acquisition and Sustainment Group (CASG) Risk Reform
Program, by focusing on improvements in policy as well as training and support for risk
managers and practitioners. These include planned updates to the CASG Risk
Management Policy and the associated Practical Guide, which applies to Major Projects
Report (MPR) projects.
28. This question is best addressed to ANAO.
29. The CASG Risk Management Policy requires projects to align their risks with their
contingency logs. ANAO assessed that three of the 21 projects in the 2021–22 MPR did
not explicitly link their risk logs to their contingency logs. This is being addressed by these
projects as part of their risk management processes, and Defence is assessing this for
projects outside of the MPR as part of its project assurance activities.
30. CASG has implemented the CASG Lessons Program; a program supported by governance,
policy and a framework that ensures observations, insights and lessons can be captured
within Defence’s Enterprise Lessons database, the Defence Lessons Repository. Systemic
themes arising from CASG observations, insights and/or lessons are analysed and fed
back where appropriate into policy, training or directly into similar projects as part of
CASG’s commitment to Defence’s continuous improvement culture.
31. The CASG Independent Assurance Review (IAR) process facilitates the capture of best
practice and lessons learned from across the organisation and transfer of knowledge. As
a part of the IAR process, observations on good practice or where improvements could
be made for projects are shared with the Independent Program and Portfolio
Management Office, the CASG Board and the CASG Lessons Program.
JCPAA Inquiry into the into the Defence Major Projects Reports – Public Hearing: 19 May
2023
Question Number: Additional Questions 32-34
Date question was tabled: 19 June 2023
Question
32. Is it likely that this non-publication of key information will be repeated in the 2022–23
MPR? If so, does the ANAO have any recommendations about how to manage any
increase in classified information being excluded from the MPR in the longer-term?
33. Is there a way to strike a balance between the need for transparency and the need to
keep certain information classified? Do the current guidelines support this balance?
34. Defence has indicated that the Smart Buyer review recommended leveraging overseas
exemplars. Are there any other MPR-like products in particular which the JCPAA should
be considering during this inquiry?
Answer
32. Defence utilises security principles when assessing what information should not be
published. These principles will guide Defence’s approach to the 2022–23 Major Projects
Report (MPR). Defence continues to work with ANAO on the impact of this on its
analysis.
33. Defence provides full transparency to the ANAO of project information during its review
and analysis. The current JCPAA MPR Guidelines require Defence to include detailed
public information on projects via the format of the Project Data Summary Sheets.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Key witnesses: Chris Deeble; Vice Admiral David Johnston
Defence is working with ANAO on preparing the 2023-24 Guidelines and will be
reviewing the security aspects, and will make recommendations on proposed changes to
the Guidelines as part of that process. Consideration could also be given to the use of
classified briefings for the Committee to facilitate a balance between public transparency
and the need to keep certain information classified.
34. The two principle MPR-like products are:
a. US Government Accountability Office (GAO) annual report to Congress titled Defense
Acquisitions Annual Assessment: Drive to Deliver Capabilities Faster. The 2020 report
covers 121 acquisition programs in circa 250 pages by limiting each project summary
to 1-2 pages. The most recent report is the Weapons Systems Annual Assessment
June 2022, which continues to include project information in 1-2 pages.
b. UK Government National Audit Office (NAO) undertakes audits into the UK Ministry of
Defence programs. A recent report is The Equipment Plan 2021 to 2031, and is an
examination of risks and issues associated with the Plan (in 52 pages).
These examples include less detailed and technical information on each specific
project, compared to the MPR.
2022–23 Supplementary Budget Estimates 15-16 February 2023
Senator David Shoebridge
Question Number: 32
Date question was tabled: 21 April 2023
Question
Senator SHOEBRIDGE: Can you provide that table that identifies the different projects as
against the $6.5 billion cost blowout?
Mr Deeble: I can't provide that today but I can take that on notice and I can provide you with
that data.
Senator SHOEBRIDGE: Looking at it again this morning, I'd understood it to mean that the
$6.5 billion were cost blowouts not associated with increasing scope of projects but
associated with additional costs to meet the original scope of the projects. Is that how we
should view that $6.5 billion cost blowout?
Mr Deeble: Yes, there are aspects in there. I will just try to explain where the differences sit.
That $6.5 billion did include exchange rate and variation aspects to it.
Senator SHOEBRIDGE: We might call them 'somewhat blameless elements'?
Mr Deeble: I would accept that as a reasoned explanation of that, yes.
Senator SHOEBRIDGE: But the balance involved costs that are not explained by either
increasing the scope of the project or the number of items being purchased or exchange
rates; they are costs that have come about throughout the course of delivering the project.
Mr Deeble: I'm happy to take that on notice and we can provide you with an explanation of
those costs more specifically.
Senator SHOEBRIDGE: If you would, against each of the projects, I would appreciate that.
Answer
The Government’s announcement of 10 October 2022 relating to the performance of
Defence projects identified “at least $6.5 billion of variations from the approved budgets.”
There are 22 projects that contribute to the reported variation, identified across the 2019–20
and the 2020–21 Major Projects Reports. The variation amount is the difference between the
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Last updated: 15 December 2023
Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston
current approved budget and the budget at Second Pass Approval by Government (as
reported in the 2019–20 or 2020–21 Major Projects Reports).
The below table lists the relevant projects that contributed to the $6.5 billion variation.
Project Name
Project Number
ANZAC Air Search Radar Replacement
SEA 1448 Phase 4B
Battlefield Airlift – Caribou Replacement (C-27J Spartan)
AIR 8000 Phase 2
Battlefield Command System
LAND 200 Phase 2
Battlespace Communications System (Land)
LAND 2072 Phase 2B
Civil Military Air Traffic Management System (CMATS)
AIR 5431 Phase 3
Collins Class Communications and Electronic Warfare
SEA 1439 Phase 5B2
Improvement
Collins Class Submarine Reliability and Sustainability
SEA 1439 Phase 3
Defence Satellite Comms Capability – Indian Ocean UHF SATCOM JOINT 2008 Phase 5A
EA-18G Growler Airborne Electronic Attack Capability
AIR 5349 Phase 3
F-35A Joint Strike Fighter
AIR 6000 Phase 2A/B
Future Naval Aviation Combat System Helicopter – MH-60R
AIR 9000 Phase 8
Seahawk
Jindalee Operational Radar Network Mid-Life Upgrade
AIR 2025 Phase 6
Maritime Communications Modernisation
SEA 1442 Phase 4
Maritime Operational Support Capability – Replacement
SEA 1654 Phase 3
Replenishment Ships
Maritime Patrol and Response Aircraft System – P-8A Poseidon
AIR 7000 Phase 2B
Mounted Combat Reconnaissance Vehicles (Boxers)
LAND 400 Phase 2
Multi-Role Helicopter
AIR 9000 Phase 2/4/6
Night Fighting Equipment Replacement
LAND 53 Phase 1BR
Offshore Patrol Vessel
SEA 1180 Phase 1
Overlander Medium Heavy Capability Vehicles
LAND 121 Phase 3B
Pacific Patrol Boat Replacement
SEA 3036 Phase 1
Protected Mobility Vehicle – Light (Hawkei)
LAND 121 Phase 4
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
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Phone:
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PDR No: SB23-001061
Last updated: 12 February 2024
Project Performance and Reporting
Key witness: Chris Deeble
Project Performance and Reporting
Handling Note:
Deputy Secretary, Capability Acquisition and Sustainment Group, Mr Chris Deeble to
lead.
Key Messages
On 10 October 2022 the Deputy Prime Minister and the Minister for Defence
Industry announced six measures to strengthen and revitalise the oversight of
project performance, including the Projects of Concern process.
Defence has progressed implementation of all six measures.
There has been a noticeable improvement in senior management’s vigilance and
oversight of projects and sustainment products experiencing performance issues and
challenges.
Talking Points
Measure 1 – Establishing an independent projects and portfolio management office within
Defence.
The Independent Project and Portfolio Management Office was established on
6 March 2023. It provides independent decision support and assurance functions, key
elements of which are the Smart Buyer and Independent Assurance processes. The
Independent Project and Portfolio Management Office also offers consolidated
performance assessment and reporting to all Defence delivery groups.
Measure 2 – Requiring monthly reports on Projects of Concern and Projects of Interest to the
Deputy Prime Minister and Minister for Defence Industry.
Since October 2022 monthly capability acquisition performance reports, including
detailed reports on Projects of Concern and Projects of Interest, have been provided to
the Deputy Prime Minister and Minister for Defence Industry.
The Independent Project and Portfolio Management Office has produced eight monthly
performance reports and two Defence Acquisition and Sustainment Quarterly
Performance Reports since the implementation of the six measures.
The reporting covers the following Groups:
Capability Acquisition and Sustainment;
Naval Shipbuilding and Sustainment;
Security and Estate;
Guided Weapons and Explosive Ordnance;
Defence Digital;
Defence Science and Technology; and
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
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Defence Intelligence Group.
In 2024, reporting scope will grow to include the Australian Signals Directorate.
Measure 3 – Establishing formal processes and ‘early warning’ criteria for placing projects on
the Projects of Concern and Projects of Interest lists.
A revised policy on the Projects and Products of Interest and Concern regime was
published on 28 February 2023 and updated in October 2023. The policy includes more
vigilant line management oversight of performance; risk identification, management
and mitigation in project and product delivery; and implementing the requirement for
agreed remediation plans as methods for early identification of project risks.
There is now a tiered process for placing projects and products with significant risks,
issues or challenges on a Group Watch List, from which they may be elevated to the
Projects/Products of Interest or Projects/Products of Concern Lists.
For more substantial risks, issues or significant deviations (actual or anticipated) from
project parameters (scope, schedule or budget), Group Heads may place projects or
products on the Project/Product of Interest List. Alternatively, a recommendation may
be made to the Minister for Defence Industry they be placed on the Project/Product of
Concern List.
There are currently three Projects of Concern:
Civil Military Air Traffic Management System (OneSKY-CMATS – AIR 5431 Phase
3), declared a Project of Concern in October 2022 due to significant schedule,
technical and cost challenges.
Satellite Ground Station East and Wideband SATCOM Network Management
System (JOINT 2008 Phase 5B2), elevated to the Projects of Concern list in
May 2023 due to ongoing schedule delays to the software development of the
network management system.
Offshore Patrol Vessel (SEA 1180 Phase 1), elevated to the Projects of Concern list
in October 2023 due to significant delays to the delivery of vessels and the
associated support system.
The Multi-Role Helicopters (MRH90) project (AIR 9000 Phases 2, 4 and 6) was removed
from the Projects of Concern list by the Minister for Defence Industry on
13 November 2023, following the Government’s announcement not to return the
MRH90 Taipan to flying operations.
There are 12 Projects of Interest and two Products of Interest.
Measure 4 – Fostering a culture in Defence of raising attention to emerging problems and
encouraging and enabling early response.
The updated policy reinforces the need for honesty, openness and transparency in
reporting on performance, providing visibility of current and emerging issues, and
elevating matters for senior-level or external assistance, while reinforcing that
accountable line managers have primary responsibility for performance and delivery.
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Key witness: Chris Deeble
Measure 5 – Providing troubled projects with extra resources and skills.
The revised policy reinforces the availability and willingness of senior managers and
skilled specialist resources, including from the Independent Assurance Review team, to
assist projects.
The Independent Project and Portfolio Management Office’s support and assurance
processes will consider providing additional support or specialist skills to project and
product teams.
Projects of Concern have been provided access to additional support or specialist skills
in developing their remediation plans.
Measure 6 – Convening regular Ministerial summits to discuss remediation plans.
Five Projects of Concern Summits have been held since the implementation of the six
measures.
The OneSKY-CMATS project Summits were held on 2 December 2022, 31 March 2023,
19 September 2023 and 8 December 2023.
The Offshore Patrol Vessel project Summit was held on 8 December 2023.
Projects of Concern Summits have been effective at establishing common intent
amonge leadership teams and an increased level of engagement and alignment
between Defence and industry partners, contributing to improved ways of working to
remediate project performance issues and concerns.
Supporting Information
Questions on Notice
Supplementary Senate Estimates: 15 February 2023
QoN 8, Projects and sustainment reports, Senator Linda White (Victoria) asked several
performance reporting questions.
2022-23 O
October Budget Estimates: 8 November 2022
QoN 46, Defence spending, budgets and delays, Senator Jim Molan (New South Wales)
asked several performance reporting questions.
Freedom of Information (FOI) Requests
On 10 September 2023 Senator David Shoebridge applied for access to:
“A table of the top 30 capital equipment projects managed by the Capability
Acquisition and Sustainment Group and The Naval Shipbuilding and Sustainment
Group.
The name of the project
Project Number (Defence Capability Plan)
Approved Budget
Budget at initial Second Pass Approval
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
s47E(d)
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Phone:
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Year/s of variation (if any)
Explanation of variation (if any)
The total number of capital equipment projects managed by CASG and the
percentage of total cost of top 30 capital equipment projects out of total
projects”.
Documents were released on 16 November 2023.
Recent Ministerial Comments
On 8 December 2023 the Minister for Defence Industry issued two media releases
regarding the Projects of Concern Summit held in Canberra about the OneSKY-CMATS
project
and Offshore Patrol Vessel project.
On 27 September 2023 the Minister for Defence Industry issued a media release,
Projects of concern summit held in Canberra, regarding the Projects of Concern
Summit in Canberra on 19 September 2023, about the OneSKY-CMATS project.
On 22 May 2023 the Minister for Defence Industry issued a media release, Update on
Projects of Concern, regarding the elevation of Satellite Ground Station East and
Wideband SATCOM Network Management System to a Project of Concern.
On 31 March 2023 the Minister for Defence Industry issued a media release, Projects
of Concern Update, regarding the Projects of Concern Summit in Canberra on the
OneSKY-CMATS project.
On 2 December 2022 the Minister for Defence Industry issued a media release,
Projects of Concern Summit Held in Canberra, regarding the Projects of Concern
Summit on the OneSKY-CMATS project.
Relevant Media Reporting
On 20 October 2023 a Departmental media release regarding the elevation of Offshore
Patrol Vessel to a Project of Concern, Offshore patrol vessels listed as a project of
concern, was published.
On 27 September 2023 Defence Connect published an article by journalist Liam
Garman titled Conroy hosts Projects of Concern Summit, that reported the summit
agreed on milestones to be reached by the end of the year.
Division:
Strategy, Planning and Independent Assurance Division
PDR No:
SB23-001061
Prepared by:
Cleared by Division Head:
Suzanne Kerrigan
Suzanne Kerrigan
Acting First Assistant Secretary
Acting First Assistant Secretary
Strategy, Planning and Independent
Strategy, Planning and Independent
Assurance Division
Assurance Division
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Key witness: Chris Deeble
Mob: s22
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Date: 12 February 2024
Date: 12 February 2024
Cleared by Deputy Secretary:
Date: 12 February 2024
Chris Deeble
Deputy Secretary
Capability Acquisition and Sustainment Group
Questions on notice referred to within the brief:
2022-23 Supplementary Estimates: 15 February 2023
Senator Linda White
Question Number: 8
Date question was tabled: 17 May 2023
Question
Senator WHITE: I guess what you've described is similar to what many private industry big
projects would have, so it's surprising it's taken such a long time to get to that point. But
thank you for that comprehensive answer. Can Defence confirm, from June 2022, how many
project and sustainment reports on the major projects were published?
Mr Deeble : I would have to take that on notice.
Senator WHITE: The projects and sustainment report was only an interim report. Is that
right?
Mr Deeble: We're looking at the whole reporting regime. Part of the work that we're doing
with the Minister for Defence Industry is looking at how to best report, whether that's done
on a monthly basis for all projects, or whether we provide an aggregate quarterly report. To
date, we have been reporting on a monthly basis on all post second pass projects.
Senator WHITE: Is that because of the difficulties that were highlighted by the ANAO-the
underspends and the time drifts et cetera? Is that the reason you're doing it more
frequently?
Mr Deeble : Yes. It was raised by both DPM and the Minister for Defence Industry in that
announcement in October last year.
Senator WHITE: Just in relation to the project and sustainment report, was this replaced by
the acquisition sustainment update in late 2021? Am I understanding that correctly, or have I
missed something?
Mr Deeble : I will take that on notice and I'll be able to give you the chronology of the various
reporting regimes.
Senator WHITE: How many reports have been produced in total? There's quarterly, sort of
monthly, or not monthly.
Mr Karo: Quarterlies were quarterlies, four a year. Regarding the acquisition sustainment
update, I would have to give you an on-notice answer for exactly how many were produced,
but we went through a couple of iterations of those. We also know that the layers here are
really important. We have the public layers, so the MPR is a really important public layer. The
annual report is a really important public layer. The ANAO project performance reports are a
very important public layer. What we're trying to do is make sure that we get the insights,
internal to the department, to act, but keep an appropriate layer of external reporting as
well. The monthlies since October have been going to the ministers. We're finding that
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Key witness: Chris Deeble
frequency a little bit draining, so we do have to get the right balance on how often we need
to keep the updates to the ministers and the department versus the analytical effort to
actually get the insights.
CHAIR: Thank you very much for that response.
Answer
The last Quarterly Performance Report was produced in June 2020.
The next report, known as the Project and Sustainment Report, was produced in February
2021.
The following report, known as the Acquisition and Sustainment Update was first produced in
September 2021, and three were produced in total.
Monthly performance reporting to the Minister for Defence and Minister for Defence
Industry commenced in October 2022, and cover Projects of Concern, and Projects and
Products of Interest.
Consolidated reporting has grown to cover most delivery groups, namely CASG, Naval
Shipbuilding and Sustainment Group, Chief Information Officer Group, Security and Estate
Group, Defence Science and Technology Group, and the Defence Intelligence Group.
2022-23 October Budget Estimates: 18 November 2022
Senator Jim Molan
Question Number: 46
Date question was tabled: 16 December 2022
Question
The Minister for Defence and the Minister for Defence Industry made announcements about
the Department of Defence (Department), defence spending, project budgets and delays on
10 October 2022
1. Further to the Ministers' announcements, what steps has the Department taken to address
the concerns raised in those announcements?
2. Please provide an update on the concerns raised and what progress to address the
concerns has been made since 10 October 2022
3. Has the independent projects and portfolio management office within the Department
been established, and can the Department explain how it will be independent of the
Department?
4. How much additional cost is required to fund the activities of this office?
5. Which staff are being redeployed or hired to comprise this office, assuming its
independence from other parts of the Department, including those engaged in program
delivery?
6. Please provide copies of the recent monthly reports on Projects of Concern and Projects of
Interest to the Minister for Defence and Minister for Defence Industry, and provide details of
briefings. How much additional cost and resource is required in order to implement this
measure?
7. Provide details of the new formal processes and "early warning" criteria for placing
projects on the Projects of Concern and Projects of Interest lists
8. Please provide details on progress toward fostering a culture in the Department of raising
attention to emerging problems and encouraging and enabling early response. Please
provide details of problems and responses identified
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Phone:
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Defence FOI 680/23/24
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Senate Estimates February 2024
PDR No: SB23-001061
Last updated: 12 February 2024
Project Performance and Reporting
Key witness: Chris Deeble
9. Which projects considered 'troubled' have been provided extra resources and skills?
10. Provide details of the costs and benefits of providing such extra resources and skills
11. Provide details of the regular Ministerial summits convened to discuss remediation plans,
and what remediation plans are in development or in progress, and the Department's role.
Answer
1, 2. The Deputy Prime Minister and the Minister for Defence Industry announced six
measures to strengthen and revitalise Defence’s projects of concern process. Those
measures are being addressed within a holistic effort to strengthen delivery management
and performance reporting within Defence. Options and measures have been developed and
are currently subject to senior level consideration within Defence.
3. The Deputy Prime Minister and the Minister for Defence Industry announced that the
independent projects and portfolio office will be established inside Defence. Options have
been developed and are currently subject to senior level consideration within Defence.
4, 5. The office will be funded by the reallocation of existing resources on a prioritised basis.
6. Defence reports publicly in accordance with Government directions and legislative
obligations. Reports on Projects of Concern and Projects of Interest contain both
commercially sensitive and classified information and are not released publicly. There is no
additional cost or resources required to provide monthly reports to Ministers.
7. Revised processes and criteria are part of the measures being developed and being
considered by Defence and the Minister for Defence Industry.
8. Increased emphasis is now being placed on reviews and reporting being conducted by line
managers to drive a culture of identifying and addressing problems early. Projects are also
assessed independently and assessed by Group Heads, with advice subsequently provided
through monthly reporting to the Deputy Prime Minister and Minister for Defence Industry.
When additional issues are identified, a project may be added to the Projects of Interest or
Projects of Concern lists. Most recently, the Civil Military Air Traffic Management project (AIR
5431 Phase 3) was identified as Project of Concern, announced by the Minister for Defence
Industry in October 2022.
9. Remediation plans for the Projects of Concern and Projects of Interest are tailored to the
type of support required to get performance back on track. The most common support
provided is independent advice and support via the conduct of Independent Assurance
Reviews, and specialist skills (for example project or commercial management) that the
independent reviewers provide to assist the project managers. Additional resources will also
be identified through the remediation plans and prioritised accordingly.
10. This support will be provided using existing resources.
11. Ministerial Summits, which include Defence and industry representatives, will consider
plans to respond to and remediate the Projects of Concern problems. The first Summit under
the strengthened Projects of Concern regime was held on 2 December 2022 to address the
most recent addition to the Projects of Concern list, the Civil Military Air Traffic Management
project (AIR 5431 Phase 3).
Prepared By:
Cleared By:
Name: Suzanne Kerrigan
Name: Chris Deeble
Return to Index
Position: First Assistant Secretary
Position: Deputy Secretary
Division: Strategy, Planning and Independent Assurance
Group/Service: Capability Acquisition and Sustainment
Phone:
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Nuclear-Powered Submarines
Handling Note:
Secretary of Defence, Greg Moriarty, to refer questions to the Australian Submarine
Agency.
Associate Secretary, Matt Yannopoulos to lead on Nuclear-Powered Submarines
Regulator.
Key Messages
The acquisition of conventionally-armed nuclear-powered submarines is the single
biggest leap in our military capability since World War II, and work to acquire this
capability is continuing at pace.
Talking Points
Legislation to establish the Nuclear-Powered Submarines Regulator
[Handling Note: Refer question to the Associate Secretary]
On 16 November 2023 the Government introduced legislation to establish a regulatory
framework for nuclear safety within the nuclear-powered submarine enterprise.
The Associate Secretary Group is leading the development of this legislation and the
establishment of the new independent statutory regulator.
AUKUS submarine proposals in United States’ Congress
[Handling Note: Refer question to the Australian Submarine Agency]
The US Congress passed significant enabling provisions for AUKUS as part of the National
Defense Authorization Act for Fiscal Year 2024 in December 2023.
As a co-equal branch of the United States Government, Congress plays an important
role in the delivery of AUKUS.
Passage of AUKUS legislation in the National Defense Authorization Act is a significant
demonstration of the bipartisan support in Congress and a momentous step in
implementing the Optimal Pathway.
For AUKUS nuclear-powered submarine cooperation, the National Defense Authorization Act
authorises:
the transfer of three Virginia class submarines to Australia – critical to mitigating a
capability gap;
the maintenance of United States submarines in Australia, by Australians – to build
Australia’s sovereign workforce capacity and help ease strain on the United States
industrial base;
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
training for Australian contractors in United States shipyards – to support the
development of Australia’s submarine industrial base; and
a mechanism for the United States to accept funds from Australia to uplift the United
States submarine industrial base.
Australia has committed to a fair and proportionate investment (USD $3 billion) to support
the United States’ ability to accommodate this critical phase of the Optimal Pathway.
The investment will help bolster industrial capacity and resilience for all AUKUS partners.
Radioactive Waste
[Handling Note: Refer question to the Australian Submarine Agency]
Australia will manage all radioactive waste from its nuclear-powered submarines, including:
low-level, operational waste generated by day-to-day submarine operation and
sustainment; and
intermediate and high-level waste, including spent fuel, that will be produced once
Australia’s submarines reach end-of-life.
We are at the start of a long process to determine how best to manage radioactive waste
from Australia’s nuclear-powered submarine program.
No decision has been made on the location for the disposal of any form of radioactive waste
from conventionally-armed, nuclear-powered submarines.
The Australian Submarine Agency and Defence conducted a Review in 2023 to inform
the process by which the Government will identify potential locations on the current or
future Defence estate for the storage and disposal of intermediate and high-level
radioactive waste from Australia’s nuclear-powered submarines.
s47E(d)
.
Submarine Rotational Force–West
[Handling Note: Refer question to the Australian Submarine Agency]
Submarine Rotational Force–West, the rotational presence of up to four United States SSNs
and up to one United Kingdom SSN at HMAS Stirling, will build Australia’s ability to safely
own, operate, maintain and sustain its own future nuclear-powered submarine capability. It
provides the added strategic benefit of facilitating a flexible and enhanced United States and
United Kingdom presence in the Indo-Pacific.
In the lead up to Submarine Rotational Force–West, the United States and United Kingdom
will conduct more frequent and longer visits of SSNs to Australia, with a focus on
HMAS Stirling.
This will build Australia’s capacity to host and support a rotational presence under
Submarine Rotational Force–West which will commence from as early as 2027.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
If pressed: How many United States personnel will be in Perth for Submarine Rotational Force–
West?
United States personnel will commence in-country work on Submarine Rotational Force–
West in Perth from mid-2025.
This will include potentially up to 50 personnel and their families in the initial stages.
At its peak in 2030 it is anticipated that 1,900 – 2,000 individuals will be supporting
Submarine Rotational Force–West in Perth, including United States personnel and their
families.
If pressed: What infrastructure upgrades are required at HMAS Stirling to support Submarine
Rotational Force–West?
HMAS Stirling will be expanded to support the scale of infrastructure required for the Optimal
Pathway – including for visiting and rotational submarines as well as Australia’s own
conventionally-armed nuclear-powered submarines.
The Government will invest up to $8 billion over the next decade to expand HMAS Stirling.
This investment will include wharf upgrades, operational maintenance, logistics and training
facilities.
Sustainment
[Handling Note: Refer question to the Australian Submarine Agency]
The Government will select a sovereign sustainment partner to cooperatively develop plans
to sustain Australia’s conventionally armed, nuclear-powered submarines.
This includes support for more frequent visits by nuclear-powered submarines in
Phase 1A, and for Submarine Rotational Force–West during Phase 1B, as well as
supporting the design of the complete support system needed for Australian Virginia
Class submarines during Phase 2.
Sustainment planning will be cognisant of impacts to the Collins Class program, which
represents a growth path for the expanded volume of essential submarine sustainment
skillsets.
If pressed: When will the Sovereign Sustainment Partner be announced?
The Government committed to announce a Sovereign Submarine Partnership for the delivery
of Australia’s conventionally armed, nuclear-powered submarines within a year of the
Optimal Pathway announcement in March 2023.
Australian Steel Qualification
[Handling Note: Refer question to the Australian Submarine Agency]
On 9 December 2023 the Minister for Defence Industry announced the contract between the
Australian Submarine Agency and Bisalloy Steels, with BlueScope as its subcontractor, for the
qualification of two SSN-AUKUS hull steels in Australia.
This is the first contract executed with Australian industry related to the future build of
Australian SSNs.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
The qualification activity involves the production of approximately 1,000 tonnes of steel,
before around 4,000 discrete testing activities will be undertaken.
Submarine Construction Yard
[Handling Note: Refer question to the Australian Submarine Agency]
The Australian Submarine Agency is working closely with Australian Naval Infrastructure, the
Government’s appointed design and delivery partner for the Submarine Construction Yard at
Osborne, to progress early design activities.
Pending environmental approval, preliminary enabling works are planned to commence
imminently.
These works include construction of a carpark, pedestrian bridge and grade-separated
road.
Subject to a separate environmental approval process, utility relocation works are also
planned to progress throughout 2024, which will enable the broader development of the
Submarine Construction Yard.
Land Exchange
[Handling Note: Refer question to the Australian Submarine Agency]
The Australian and South Australian Government executed a Project Deed on
10 November 2023 that outlines the terms to facilitate the transfer of land for the Submarine
Construction Yard and Skills and Training Academy at Osborne.
In exchange for the land required at Osborne, the South Australian Government will
progressively take ownership of Defence-owned and leased land at Keswick and Smithfield to
support future urban renewal projects in Adelaide and parts of Cultana Training Area to
facilitate future renewable energy initiatives.
University Commonwealth Supported Places
[Handling Note: Refer question to the Australian Submarine Agency]
As part of the 2023-24 Budget the Government supported the expansion of graduate
numbers in engineering and science fields through the establishment of the Nuclear Powered
Submarine Student Pathways Program, a targeted national competitive program which would
provide 4,000 Commonwealth Supported Places. Universities were invited to apply in
September 2023.
It is important to recognise these additional Commonwealth Supported Places allocations are
only the starting point from which a range of initiatives will be pursued by the Australian
Submarine Agency with the Australian university sector on STEM education and research
requirements.
Following an assessment of the applications by both the Australian Submarine Agency and
the Department of Education, advice was provided to the Minister for Education who decided
the allocation, in consultation with the Deputy Prime Minister.
Under the recommended allocations the program was able to deliver an additional
Commonwealth Supported Place within its funding envelope, bringing the total to 4,001.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
These Places have been allocated from 2024 to 2027 across 16 universities nationally to grow
the skilled workforce required to meet our future demands, particularly driven by the
nuclear-powered submarine program.
Non-proliferation
[Handling Note: Refer question to the Australian Submarine Agency]
As a non-nuclear-weapons state, Australia does not have and will not seek to acquire nuclear
weapons.
Australia’s submarines will not carry nuclear weapons. The only nuclear aspect of the
program will be the power source for the submarine propulsion system.
Australia will continue to meet its non-proliferation obligations and commitments, including
under the Treaty on the Non-Proliferation of Nuclear Weapons, the Treaty of Rarotonga and
our safeguards agreements with the International Atomic Energy Agency.
Naval nuclear propulsion was foreseen by the drafters of the Treaty on the Non-Proliferation
of Nuclear Weapons and Article 14 is the specific provision in the International Atomic Energy
Agency ’s model Comprehensive Safeguards Agreement to facilitate it.
Background
Timeline of Significant Events
15 December 2023 – United States Congress passed the National Defense Authorization Act
for Fiscal Year 2024, including all AUKUS provisions.
1 July 2023 – the Deputy Prime Minister issued a media release launching the Australian
Submarine Agency.
15 March 2023 – the Australian and South Australian Governments signed a cooperation
agreement outlining a commitment to support construction of nuclear-powered submarines.
14 March 2023 – in San Diego, AUKUS leaders announced the Optimal Pathway for Australia’s
acquisition of nuclear-powered submarines.
Supporting Information
Questions on Notice
Supplementary Budget Estimates 25 October 2023
QoN 1 and 2, Senator the Hon David Fawcett (Liberal, South Australia) asked about the
UK MOD’s decision-making process and level of engagement with Australia regarding
the bilateral future acquisition of AUKUS submarines.
QoN 3, Senator the Hon David Fawcett (Liberal, South Australia) asked about what is
being done to ensure the intent to foster Australian industry involvement in the AUKUS
program is being matched by actual industry involvement on the ground.
QoN 25, Senator Jane Hume (Liberal, Victoria) asked for an itemised list of Agency head
travel for financial year 2023-24 to date, including costs of flights and accommodation.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
QoN 63, Senator Jacqui Lambie (Jacqui Lambie Network, Tasmania) asked about cost of
travel by Agency staff.
QoN 64, Senator Ralph Babet (United Australia Party, Victoria) asked how nuclear
propulsion related radioactive waste would be managed and stored.
Senate: 9 August 2023
Senate QoN 2336 and 2337, Senator Jacqui Lambie (Jacqui Lambie Network, Tasmania)
asked about the AUKUS advisor role that Ms Kathryn Campbell previously occupied,
about payments made to AUKUS partners, and international travel.
Senate: 16 June 2023
QoN 89, AUKUS legislation, Senator the Hon Simon Birmingham (Liberal, South
Australia) asked for information on ship transfer legislation in the United States
Congress and Australia’s acquisition of Virginia-class submarines.
Budget Estimates: 30 and 31 May 2023
QoN 17 and 29, Senator the Hon Linda Reynolds (Liberal, Western Australia) requested
the AUKUS memorandum and letters relating to AUKUS Pillar One between the Nuclear
Powered Submarine Taskforce and state Government be tabled.
QoN 18, Senator the Hon Linda Reynolds (Liberal, Western Australia) asked for
information on infrastructure at Stirling and Henderson, workforce and the nuclear
regulatory system.
QoN 34 and 36, Senator Jacqui Lambie (Jacqui Lambie Network, Tasmania) asked how
much was spent on business class or first class fares for flag officers for the AUKUS
program and for the master schedule of the nuclear-powered submarine program.
QoN 92, Senator the Hon Linda Reynolds (Liberal, Western Australia) asked a list of
questions relating to WA infrastructure, WA Government and community engagement,
workforce, health and safety, security, and timings.
Senate: 3 March 2023
QoN 65, Senator the Hon Linda Reynolds (Liberal, Western Australia) asked for details
regarding Defence’s plans for acquiring the skilled workforce needed to support the
program.
Supplementary Budget Estimates: 15 February 2023
QoN 10, Senator Jordon Steele-John (Australian Greens, Western Australia) asked
questions focusing on the specifics of the contract entered into between the
commonwealth and VADM Richardson.
QoN 11, Senator Jordon Steele-John (Australian Greens, Western Australia) asked
questions focusing on US Defence consultants.
QoN 45, Senator Jordon Steele-John (Australian Greens, Western Australia) sought
assurances on nuclear weapons and Australia’s non-proliferation obligations.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
QoN 22, Senator the Hon. Simon Birmingham (Liberal, South Australia) asked when the
Optimal Pathway was provided to the government.
Freedom of Information (FOI) Requests
On 11 October 2023 an individual sought access to documentation relating to the
disposal of operational nuclear waste from Australia’s conventionally-armed, nuclear-
powered submarines. D
Documents were released on 11 December 2023
On 17 November 2023 an individual sought access to documentation relating to the
Australian Naval Nuclear Safety Bill 2023 Discussion Paper and policy documentation
since 13 March 2023 associated with nuclear stewardship, non-proliferation and the
management of nuclear waste. D
Documents were partially released on 20 December
2023.
On 11 December 2023 an individual sought to access documentation relating to the
itinerary and travel costs of the last five foreign officials travelling for work associated
with AUKUS (Pillar One) and an agreement for the Australian Government to pay for
these travel costs. D
Decision is due on 31 January 2023.
Recent Ministerial Comments
On 16 November 2023 the Deputy Prime Minister introduced the Australian Naval
Nuclear Power Safety Bill 2023 to Parliament.
Relevant Media Reporting
AUKUS
On 17 September 2023 for 60 Minutes, Amelia Adams boarded the USS North Carolina
in a report on Australia’s acquisition of nuclear-powered submarines titled Exclusive:
Inside the nuclear-powered submarine at the centre of the controversial AUKUS deal.
ALP National Conference
On 21 August 2023 in The Age, Bob Carr wrote an opinion piece titled Australia’s
biggest AUKUS risk? Our allies’ Plan B.
On 18 August 2023 in The Age, in an article titled The message on AUKUS was aimed
not just at Labor’s true believers, journalist David Crowe writes that critics of AUKUS
were in the minority at the Labor national conference.
Australian Nuclear-Powered Submarine Safety Regulator
On 21 August 2023 The Guardian reported on its Australian politics live blog EY’s
$8.5 million nuclear contract should be ‘torn up’, says Greens’ David Shoebridge.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
On 1 July 2023 in The Canberra Times, Dr Sue Wareham, President of the Medical
Association for the Prevention of War (Australia), wrote an opinion piece titled There’s
nothing regulation about this move, critiquing nuclear radiation safety regulation.
Radioactive waste
On 3 September 2023 Pearls and Irritations published an article titled David Bradbury,
lifetime war abolisher, wins award for Anti-AUKUS efforts. Author Sandi Keane reports
that Australia has agreed to set up a weapons-grade nuclear waste dump.
On 30 August 2023 in The Australian Financial Review, the Shadow Minister for Climate
Change and Energy, Ted O’Brien, opines 10 reasons Bowen is wrong on nuclear,
critiquing Government’s approach to nuclear energy.
Workforce
On 28 August 2023 in The West Australian, in an article titled No closed shop for
AUKUS, Katina Curtis reports that the Prime Minister has indicated people working on
Australia’s new nuclear-powered submarine program will not be required to join a
union.
Allocation of Commonwealth Supported Places
On 29 November 2023 in The Canberra Times, in an article titled Thousands of STEM
spots to be funded in AUKUS push, Kat Wong reported that thousands of scientifically-
inclined students will have their university courses financially covered as the
government attempts to nurture the workforce needed to build the long-awaited
AUKUS nuclear submarine fleet.
Land Exchange
On 10 November 2023 in Defence Connect, in an article titled Defence Minister, SA
Premier announce land agreement for SSN-AUKUS sub yard, reported, Under the
agreement, the appointed design and construction partner, Australian Naval
Infrastructure, will progressively take ownership of key land parcels for the submarine
construction yard at Osborne from December 2023.
Australian Steel Qualification
On 9 December 2023 in The Mirage News, in an article titled Australia to Supply Hull
Steel for AUKUS Nuclear Subs, reported, the Australian Submarine Agency has entered
into a contract with Australian steel manufacturer, Bisalloy Steels, for the qualification
of Australian steel for use on Australia's future SSN-AUKUS submarines.
Division:
Australian Submarine Agency
PDR No:
SB23-001062
Prepared by:
Cleared by:
Megan Lees
David Hallinan
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Chief Operating Officer
Acting Director General
Australian Submarine Agency
Australian Submarine Agency
Ph:
s47E(d)
Ph: s47E(d)
Date: 18 December 2023
Date: 11 September 2023
Consultation:
John Reid
Date: 20 December 2023
Head Regulator
Mob:
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Ph:
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Legislation and Associated Instruments
Associate Secretary Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates 25 October 2023
Senator the Hon David Fawcett
Question Number: 1
Date question was tabled: Not yet tabled
Question
Senator FAWCETT: Could you come back to the committee on notice and tell us what steps the ASA
will take to commence a dialogue with the UK MOD about how we avoid this kind of situation
where they make unilateral decisions around what is supposed to be a joint enterprise for the most
expensive capability that the ADF has or is likely to purchase in the foreseeable future.
Rear Adm. Buckley: I'm happy to take that on notice in terms of the detail. I would say that we are
very actively and deeply involved with the UK MOD in terms of how we are situating ourselves
within the design team. That work is well underway at the moment, for precisely the reasons that
you have alluded to.
Answer
Not yet tabled
Supplementary Budget Estimates 25 October 2023
Senator the Hon David Fawcett
Question Number: 2
Date question was tabled: Not yet tabled
Question
Senator FAWCETT: Minister, this one's for you: are you aware of whether either Minister Marles or
Minister Conroy were advised of this decision coming up, and is there any reason, for such a
significant decision about the largest defence procurement in our history, that there was no
ministerial comment on the announcement?
Senator McAllister: I think you'll understand that I'll need to take that on notice. I don't know about
the communications with the ministers' offices.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
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Phone:
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Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Answer
Not yet tabled
Supplementary Budget Estimates 25 October 2023
Senator the Hon David Fawcett
Question Number: 3
Date question was tabled: Not yet tabled
Question
Senator FAWCETT: You can take this question on notice. As I look, as an analogy, to the buy-in
Australia has made to the BYG-1 combat system, where we sit at the table with the USN as a co-
owner, the industrial or commercial arrangement the USN has with its industrial sector has almost,
over many years, locked out Australian industry in terms of being able to put forward IP and ideas
for developments into that. Acacia Research is a classic example, with its patch, which was on
Collins, to do the high-contact, high-density target tracking et cetera. What are we doing-and you
can take this on notice-to make sure that the intent is actually matched by the enabling processes
of all three countries so that from both a Navy requirements perspective and a commercial
perspective engaging industry we can avoid the Coles situation again by having realistic early
engagement of Australian industry?
Air Vice-Marshal Tammen: I'll take your question on notice, but I add that at this point the UK MOD
has not contracted for a combat data systems integrator-Senator FAWCETT: No. What I'm saying is
that that is a lesson we learnt. It was spruiked that we were a co-owner of this system, but in reality
we didn't have much input except for operational requirements. We couldn't affect the material
state of it. Let's expand that to the whole submarine. What can we learn from that US experience
and apply to this tripartite arrangement?
Air Vice-Marshal Tammen: Thank you for your clarification.
Answer
Not yet tabled
Supplementary Budget Estimates 25 October 2023
Senator Jane Hume
Question Number: 25
Date question was tabled: Not yet tabled
Question
Please provide an itemised list of the Secretary's/agency deputy head's travel for financial year
2023/24 to date, including costs of flights and accommodation.
Answer
Not yet tabled
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
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Phone:
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OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Supplementary Budget Estimates 25 October 2023
Senator Jacqui Lambie
Question Number: 63
Date question was tabled: Not yet tabled
Question
Can the Department provide an overview of travel expenditure in relation to the AUKUS?
Why did the AUKUS Submarine team spend approximately $15 million in travel expenses over the
past 2 years, amounting to $21,000 per day?
For the same period, which airline carrier did the AUKUS Submarine team fly?
Which locations did the AUKUS Submarine team fly to and how often did they fly?
Answer
Not yet tabled
Supplementary Budget Estimates 25 October 2023
Senator Ralph Babet
Question Number: 64
Date question was tabled: Not yet tabled
Question
There is currently a prohibition on nuclear energy in Australia, however with the purchase of the
AUKUS nuclear submarines we now have to deal with managing nuclear waste in this country. How
will this waste be managed and where will it be stored?
Answer
Not yet tabled
Supplementary Question 9 August 2023
Senator Jacqui Lambie
Question Number: 2336
Date question was tabled: 8 December 2023
Question
1. For each financial year 2021-22 and 2022-23:
a. please provide details of each and every payment made to the US Government in relation to
AUKUS, indicating the date of the payment, the reason for the payment and the amount of the
payment; and
b. please provide details of each and every payment made to the UK Government in relation to
AUKUS, indicating the date of the payment, the reason for the payment and the amount of the
payment.
2. For each financial year 2021-22 and 2022-23:
a. please provide details of the total amount of money spent on AUKUS with commercial entities
who have an ABN;
b. please provide details of the total amount of money spent on AUKUS with commercial entities
who have an ABN, but are a subsidiary of a foreign entity; and
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
c. please provide details of the total amount of money spent on AUKUS with overseas entities.
3. What monetary commitments/promises have been made to the US in relation to Australian
investment in US shipyards.
4. What monetary commitments/promises have been made to the UK in relation to Australian
investment in US shipyards.
5. In answer to QON 34 asked at budget estimates, Defence included in its response:
Defence representatives travelled to the United States and United Kingdom, and our AUKUS
partners travelled to Australia, as part of the 18-month consultation period
Has Defence paid for any AUKUS partner officials to travel to and from Australia; if so, how much
was spent on overseas official’s travel.
6. In answer to QON 34 asked at budget estimates, Defence did not indicate the total cost of travel
for the project; please provide:
a. the total cost of all international travel for the period 16 September 2021 to 30 June 2023; and
b. the total cost of all domestic travel for the period 16 September 2021 to 30 June 2023.
7. How many AUKUS taskforce members were authorised (by the Defence Travel policy or special
authority) to travel business class on domestic flights.
8. How many AUKUS taskforce members were authorised (by the Defence Travel policy or special
authority) to travel first class on international flights.
9. Please provide a listing of overseas postings directly established by the taskforce or the new
Agency.
Answer
1.(a - b). All expenditure provided to the United States and United Kingdom Governments in
support of the Nuclear Powered Submarine Taskforce, as part of AU KUS Pillar One, was to ensure
the success of the 18-month consultation period and development of the Optimal Pathway. To
preserve the Commonwealth's negotiating position, it would not be appropriate at this time to
publicly disclose details of specific payments made between the AU KUS partners.
2.(a - c). All commercial contracts that were entered into with the Nuclear Powered Submarine
Taskforce in FY2021-22 and FY2022-23 have been published on AusTender.
3.Australia's investment in the United Kingdom and the United States industrial bases will be
targeted and proportionate in order to mitigate Australia's capability gap. Details remain subject to
agreement with AUKUS partners.
4.See response to question 3.
5.It would be an unreasonable diversion of resources to provide a breakdown of costs per AUKUS
partner over this period.
6.$15.2 million was spent on AU KUS related travel from 16 September 2021 to 30 June 2023.
7.There were 246 individual business class trips over almost two years from 16 September 2021 to
30 June 2023. All official travel conducted and authorised by the Nuclear Powered Submarine
Taskforce has been in accordance with the Department of Defence Official Travel Policy in support
of Accountable Authority Instruction 3 - Spending Defence Money- Travel.
8.No first class travel was undertaken. Under the Defence Official Travel Policy there is no
entitlement to travel first class regardless of rank or position.
9.Between 16 September 2021 and 20 August 2023, three APS staff have been posted to the
Embassy of Australia in Washington D.C. and two APS staff have been posted to the Australian High
Commission in London.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Senate Question 9 August 2023
Senator Jacqui Lambie
Question Number: 2337
Date question was tabled: 7 November 2023
Question
Noting Ms Kathryn Campbell no longer fills the AUKUS advisor role:
a. when will steps be taken to replace her;
b.
will the position be advertised/contested;
c.
will the position remain a band 3 Senior Executive Service position; and
d.
what salary band will be offered for the position.
Answer
The organisational structure of the Nuclear-Powered Submarine Taskforce in Defence transformed
with the establishment of the Australian Submarine Agency on 1 July 2023.
The Australian Submarine Agency was established on 1 July 2023 to deliver submarines under the
AUKUS program.
The Department of Defence is supporting the Australian Submarine Agency to fill a range of senior
leadership positions, including recently advertised Deputy Director-General (Band 3 level) positions.
Two Deputy Director-General positions were advertised on 12 May 2023 and will be filled through a
merit-based selection process.
Remuneration packages for these positions will be individually negotiated in consideration of
relevant skills, knowledge and experience.
Supplementary Question 16 June 2023
Senator Simon Birmingham
Question Number: 89
Date question was tabled: 1 September 2023
Question
Defence Industry Minister Pat Conroy has said that the next crucial piece of AUKUS legislation by
Congress is “ship transfer legislation authorising the US Navy to transfer two in-service Virginia class
submarines to Australia as our interim capability”.
1. When does Defence expect Congress to pass this legislation?
2. Has Australia made representations to the US on the timeline for this legislation?
3. Does Australia need to change domestic legislation to receive the vessels?
4. Why is the legislation from Congress only for two-in service vessels when Australia is expected to
receive up to five?
5. Has the mix of in-service and off the production line vessels Australia could receive been
determined for all five potential Virginias or just the first three?
Answer
1. This is a decision for the United States Congress.
2. Australia has conveyed our strong support for passage as soon as possible.
3. No, Australia does not need to change domestic legislation to receive the vessels.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
4. Congressional approval is required for in-service vessels. Congress is considering draft
legislation. The Australian Government has announced the acquisition of Virginia Class
submarines will comprise a combination of in-service and off-the-production line vessels. New
vessels can be procured through the Foreign Military Sales case process.
5. See answer to question 4.
Budget Estimates 30 and 31 May 2023
Senator Linda Reynolds
Question Number: 17
Date question was tabled: 17 July 2023
Question
Senator REYNOLDS: Let's unpack the state government. At the last estimates, in February, you said
there was a task force that's been engaged for Henderson, but there have been other works
involved. How are you now officially dealing with the Western Australian government? Is it through
that single task force to do not just Henderson but everything to get AUKUS ready?
Vice Adm. Mead: The government signed a sort of memorandum with the WA state government
after the announcement on how we would work collaboratively together to, for instance, upskill
the workforce here in South Australia. There's also a lot of work that Defence is doing in order to
coordinate and centralise activities in HMAS Stirling with those at Henderson.
Senator REYNOLDS: Are you able to table that memorandum? Can you take that on notice?
Vice Adm. Mead: I'll take that on notice.
Answer
The Chief of the Nuclear Powered Submarine Taskforce, Vice Admiral Jonathan Mead, corrected his
evidence to the Foreign Affairs, Defence and Trade Legislation Committee during Budget Estimates
on 30 May 2023 stating that there is no Memorandum of Understanding (Page 71 of 30 May 2023
Hansard from Foreign Affairs, Defence and Trade Legislation Committee proceedings refers).
Budget Estimates 30 and 31 May 2023
Senator Linda Reynolds
Question Number: 29
Date question was tabled: 17 July 2023
Question
Senator REYNOLDS: Good evening again. I'd like to go back to the optimal pathway in Pillar I and
particularly the SRFW arrangements. Thank you for the clarification that it was an MOU. Admiral
Mead, are we able to get a copy of the MOU or the agreement-what was it, a memorandum?
Vice Adm. Mead: Exchange of letters.
Senator REYNOLDS: Can we get-not now, but can we get that on notice? If someone's got a copy
here, can it be tabled?
Vice Adm. Mead: I will take it on notice.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Answer
It is standard practice to not disclose communication between the Commonwealth and State
Governments. It would therefore not be appropriate to provide a copy of the letters.
Budget Estimates 30 and 31 May 2023
Senator Linda Reynolds
Question Number: 18
Date question was tabled: 17 July 2023
Question
Senator REYNOLDS: Thank you; that was a very comprehensive answer. I think you could describe
this as a very high-risk critical path project, and you're saying there are three key areas that you are
now reviewing to prepare for 2027. Is that early on late 2027?
Vice Adm. Mead: Exact details of when the first submarine will arrive in 2027 are yet to be fleshed
out, but we are in very deep discussions with INDOPACOM, Pacific Fleet and Washington as well
working out the aspects of that, as we are with the UK.
Senator REYNOLDS: There are three areas. Can you take on notice for me a bit more information on
those three areas you say you are working on: the infrastructure at Stirling and Henderson,
workforce and also the nuclear regulatory system? Are those the three key streams you're working
on at the moment?
Vice Adm. Mead: There are multiple streams, but they are the three that we have clumped
together. For instance, on the infrastructure we need to look at what we need to do with our wharf
upgrades, supporting infrastructure, the sheds, the maintenance, and, of course, fitting that into
the Henderson precinct as well. But I will take that question on notice.
Answer
Infrastructure at Stirling
HMAS Stirling will be progressively upgraded over the next decade to provide a safe and secure
facility for conventionally-armed, nuclear-powered submarines. The upgrades will be undertaken to
initially support the rotational presence of United States and United Kingdom nuclear-powered
submarines as part of the Submarine Rotational Force-West (SRF-West) from as early as 2027, and
then an operating base for Australia’s first sovereign Virginia Class nuclear-powered submarines
from the early 2030s.
Workforce – maintenance
A significant area of focus is establishing the workforce required to maintain the rotational
presence of United States and United Kingdom conventionally-armed, nuclear-powered
submarines. This effort provides Australians the opportunity to gain qualifications and experience in
the maintenance of Virginia class submarines so we are sovereign ready to maintain our own
Virginia class submarines from the early 2030s. The maintenance workforce will consist of both
industry and uniformed personnel who will be trained in United States and United Kingdom
shipyards in the lead up to the first continuous maintenance activity.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Nuclear Regulatory System
The Defence Legislation Amendment (Naval Nuclear Propulsion) Bill 2023 was the first legislative
step in support of Australia's acquisition of conventionally-armed, nuclear-powered submarines.
This amended provisions of the Australian Radiation Protection and Nuclear Safety Act 1998 and
the Environment Protection and Biodiversity Conservation Act 1999.
A new independent statutory regulator, the Australian Nuclear-Powered Submarine Safety
Regulator will also be established. The Regulator will be independent of the Australian Defence
Force chain of command and directions from the Department of Defence.
The new Regulator will have the functions and powers necessary to regulate the unique
circumstances associated with nuclear safety and radiological protection across the life cycle of
Australia's nuclear-powered submarine enterprise. This includes associated infrastructure and
facilities. The Regulator will work with existing Australian regulators to support the safety of our
submariners, Australian and international communities, and the environment.
Budget Estimates 30 and 31 May 2023
Senator Jacqui Lambie
Question Number: 34
Date question was tabled: 24 July 2023
Question
Senator LAMBIE: How much has actually been spent out of the $300 million that was allocated to
the task force in the financial year of 2022-23. How much was spent between last year and this
financial year.
Adm. Mead: It's $114 million at the moment, but I can come back to you with the actual number.
We had 18 months; that's for the past 12 months.
Senator LAMBIE: You can take this on notice: how much has Defence spent on business class or first
class fares for the AUKUS program since you started exploring the idea of nuclear powered
submarines as a replacement for the French version? Could you also break down, for flag officers,
name and total cost on airfares and how much you have budgeted for travel over the next six or
seven months?
Adm. Mead: I'll take that on notice.
Answer
Defence representatives travelled to the United States and United Kingdom, and our AUKUS
partners travelled to Australia, as part of the 18-month consultation period.
The total expenditure for the Nuclear Powered Submarine Taskforce over the 18-month
consultation period (16 September 2021 to 31 March 2023) was $139.2m. A breakdown of class of
travel is not held. All travel is conducted in accordance with Defence travel policy.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Budget Estimates 30 and 31 May 2023
Senator Jacqui Lambie
Question Number: 36
Date question was tabled: 24 July 2023
Question
Senator LAMBIE: When will we know which submarines we will be getting? You're saying that's
going to be at the end of the18 months. You had 18 months to get all this right.
Adm. Mead: Just for clarification, the 18-month consultation period essentially finished on 14
March 2023, when the leaders made the announcement.
Senator LAMBIE: So how come we don't have more details?
Adm. Mead: We are in the execution phase right now. You are correct, Senator, that I do not have
the answers for everything to do with the nuclear powered submarine program. We're working
very hard with the US, with the UK, with the states, with the International Atomic Energy Agency,
with industries and with academia to flesh out all the answers that we can to deliver these
submarines-something that has never been done before-in a safe and secure manner in order to
protect the people of Australia. Each day we work on these issues, Senator, and I can give you a
guarantee-an absolute commitment-that we are doing this in Australia's national interest. Some of
these are very complicated matters, as you would understand.
CHAIR: You have two minutes, Senator Lambie.
Senator LAMBIE: Can you please table a summary integrated master schedule for the program? I'm
not talking about the $300 dollar one on your website. Can we have a look at the $300 million one
the taxpayer paid for?
Adm. Mead: I'll take that on notice.
Answer
The master schedule is a classified tri-lateral agreement. It would be inappropriate to publicly
disclose deliberations of our tri-lateral partners for national security reasons.
Budget Estimates 30 and 31 May 2023
Senator Linda Reynolds
Question Number: 92
Date question was tabled: 14 July 2023
Question
1. What is the status of the initial implementation of the Nuclear-Powered Submarine Program in
Western Australia, particularly in terms of:
(a) The role of the Henderson Shipbuilding yard?
(b) The establishment of infrastructure at the HMAS Stirling naval base?
2. Are there any discussions with the WA Government or plans to build the Garden Island Highway
to bypass the current traffic "rat run" through suburban Rockingham?
3. Are there any discussions with the WA Government or plans to duplicate or build a second bridge
on and off the Garden Island?
4. Can you provide an update on the timeline for the initial implementation of the Nuclear-Powered
Submarine Program in Western Australia, including key milestones and expected completion dates
for different phases of the program?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
5. What measures have been taken to ensure that the Western Australian shipbuilding industry has
the necessary capabilities and resources to effectively participate in the nuclear-powered
submarines program under the AUKUS partnership?
6. Precisely in what ways is the Department of Defence collaborating with the WA Government to
address any regulatory or logistical challenges related to the implementation of the Nuclear-
Powered Submarine Program in Western Australia?
7. What role does the Government see for the WA Government in ensuring AUKUS readiness, and
what support is being provided to facilitate their involvement?
8. What specific steps is the Government taking to ensure that the AUKUS partnership progresses
as planned and that WA can seize this opportunity for economic growth and success?
9. Can you provide an update on the progress made by the WA Government in preparing for the
AUKUS submarine deal, particularly in terms of workforce readiness, housing, emergency and
hospital facilities, traffic management, and infrastructure?
10.What measures are being taken to address the housing challenges for deployed staff and their
families and also additional overseas contractors working in both HMAS Stirling and the Henderson
Shipbuilding yard?
11.When are the first United States personnel and their families expected to arrive in Western
Australia? How many personnel will there be?
12. Can you provide details on the workforce development plans and initiatives that have been put
in place to meet the demands of the Nuclear-Powered Submarine Program in Western Australia,
including the training and recruitment of skilled personnel?
13.What steps have been taken to ensure the safety and security of the personnel involved in the
construction and operation of the nuclear-powered submarines, as well as the surrounding
communities in Western Australia particularly in the event of a nuclear incident?
14.What contingency plans are in place to ensure the health and safety of the community in case of
a nuclear incident, and how is the federal government working with the state government to
address the urgent need for local emergency and hospital facilities?
15.What training and regulatory framework will be put in place for Small to Medium Enterprises
who will be handling nuclear waste and was is the timeframe for that being implemented?
16.What steps are being taken to address traffic management concerns and improve the condition
of local roads on and off HMAS Stirling, particularly in light of the anticipated increase in traffic flow
due to the AUKUS partnership?
17.What actions are being taken to address the issue of a stable power supply to the jety on HMAS
Stirling, considering the concerns about reliability?
18.How is the Department planning to address potential security concerns and increase security
measures at HMAS Stirling and the Henderson shipbuilding yard in light of the AUKUS partnership?
19.How is the Department of Defence addressing any potential social and cultural impacts on the
communities surrounding the Henderson Shipbuilding yard and the HMAS Stirling naval base,
considering the significant influx of personnel and increased activities associated with the Nuclear-
Powered Submarine Program?
20.Can you provide an overview of the technology transfer and knowledge sharing initiatives that
are being implemented to enhance the local capabilities and expertise in nuclear-powered
submarine construction and operation in Western Australia?
21.What plans are in place to maximise the economic benefits and job opportunities for Western
Australia arising from the implementation of the Nuclear-Powered Submarine Program, particularly
in terms of local procurement, subcontracting, and supply chain integration?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
Page 1
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
22.How is the Department of Defence engaging with local communities, industry representatives,
and relevant stakeholders in Western Australia to ensure their meaningful participation and input
in the Nuclear-Powered Submarine Program?
23.Are there any additional challenges or areas of concern related to AUKUS readiness in Western
Australia that the Department of Defence has identified, and how are they being addressed?
24.I refer to the response to Question on Notice 54:Can you provide an update on the progress of
the studies undertaken within the Integrated Infrastructure Program, specifically the Integrated
Transport Program study, Maritime and Advanced Collaboration and Technology Hub study,
Alternative Energies study, Southern Breakwaters Condition study, and the Northern Harbour
Demand study?
25.Can you table a copy of each of these reports?
26.How will the findings and recommendations from these studies be utilized to inform the future
development of Henderson and the Australian Marine Complex (AMC) ?
27.What is the timeframe for the implementation of the findings?
28.What specific naval shipbuilding and sustainment needs at Henderson have been identified
through the consultation process with the Western Australian Government, and how are these
needs being addressed?
47.I refer to the response to my QON No 65 asked on 03 March 2023. Can you provide an update
on the progress of the Nuclear-Powered Submarine Taskforce in developing the workforce demand
and skill requirements for the nuclear-powered submarine program?
48.What specific actions and initiatives have been undertaken thus far?
49.How is the Department of Defence collaborating with the AUKUS partners to identify and
address the workforce growth required for the nuclear-powered submarine program?
50.What mechanisms or processes are in place to facilitate this collaboration and exchange of
Expertise?
51.What education and skilling pathways are being identified and created to support the
acquisition and sustainment of nuclear-powered submarines?
52.How are these pathways being tailored to meet the specific skill requirements of the program?
53.How will the workforce growth and skill requirements for the nuclear-powered submarine
program be integrated into industry and government practices?
54.What strategies are being implemented to ensure a seamless transition and alignment between
workforce needs and available resources?
55.Can you provide more details on how skilled and technically expert personnel from our AUKUS
partner nations will be integrated into the workforce growth plans? What roles and areas of
expertise are being prioritised for their involvement?
56.What measures are being taken to ensure a sufficient pool of skilled workers domestically to
support the workforce growth required for the nuclear-powered submarine program? Are there
plans to atract and train individuals within Australia to meet the skill demands?
57.How is the Department of Defence coordinating with relevant educational institutions and
training providers to align their programs with the skill requirements of the nuclear-powered
submarine program?
58.Are there any partnerships or initiatives in place to enhance the availability of specialized
training programs?
59.What steps are being taken to promote the trades and technical professions as viable and
rewarding career options in support of the nuclear-powered submarine program? How are
perceptions of these professions being improved to attract more individuals into these fields?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001062
Last updated: 25 January 2024
Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
60.How will the workforce development efforts for the nuclear-powered submarine program
contribute to broader skills and capabilities within the Australian defence industry? Are there plans
to leverage these developments for other defence projects or initiatives?
61.How is the Department of Defence monitoring and assessing the effectiveness of the workforce
development initiatives for the nuclear-powered submarine program?
62.Are there mechanisms in place to make adjustments or improvements based on feedback and
evaluation?
63.What is the timeframe of the Nuclear-Powered Submarine Taskforce that is being developed
with our AUKUS partners?
Answer
Henderson
The Henderson Maritime Precinct is one of Australia's two principal shipbuilding hubs. The Western
Australian (WA) defence industry will play a critical role in the future maintenance, operating and
basing requirements for Australia’s future fleet of conventionally-armed nuclear-powered
submarines. Australian Naval Infrastructure (ANI) is working with Defence and the WA Government
to progress planning for the delivery of a Large Vessel Infrastructure at Henderson.
Engagement
Commonwealth/WA Government – The Nuclear Powered Submarine Program Steering Group is
being established as a sub-group of the existing Joint Henderson Taskforce to provide a structured
forum for coordination on issues in relation to the implementation of the Optimal Pathway. The
Steering Group is expected to focus on workforce, skilling, infrastructure, safety, security matters
and social license.
Local Governments – The Nuclear Powered Submarine Taskforce maintains a close working
relationship with the WA local Governments that are proximate to HMAS Stirling and Henderson to
ensure appropriate levels of community engagement occurs and information that is important to
communities, in relation to the safe and secure operation of nuclear-powered submarines, is
shared.
Workforce
In WA the expansion of HMAS Stirling to support the infrastructure required for nuclear-powered
submarines is expected to support approximately 3,000 direct jobs over the decade. An additional
500 direct jobs are expected to support the sustainment of SRF-West.
Defence is already taking steps to develop the workforce. The first cohorts of Australian
submariners have undertaken training in the UK and US. New Australian workers are being
accepted into shipbuilding training programs through the Sovereign Shipbuilding Talent Pool (SSTP)
and Defence is working to extend the opportunity to work in the UK and US nuclear-powered
submarine programs to the Australian industrial workforce. The Government is expanding graduate
numbers in engineering and science fields through a targeted competitive grant program providing
4,000 Commonwealth Supported Places over four years to eligible institutions that deliver STEM
qualifications required by the Australian Submarine Agency. In addition the Defence Industry
Pathways Program will be extended to continue the pipeline of skills and talent into the Defence
shipbuilding industry in WA.
Health and Safety
A sophisticated safety architecture will surround Australia’s Nuclear Powered Submarine program,
building on our 70-year unblemished track record of operating nuclear facilities and conducting
nuclear science activities. Informed by the UK and US expertise, Australia will develop a
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
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Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
comprehensive safety management system to support the safe operation of Australia’s nuclear-
powered submarine enterprise. This will be underpinned by a system of regulation calibrated to the
unique needs of Australia’s nuclear-powered submarine capability. Regulatory oversight will occur
across the nuclear aspects of the submarine platform, supporting facilities and infrastructure,
leveraging the work of existing nuclear regulators.
The Government already works closely with State Governments through the Visiting Ships Panel
arrangements to ensure Australian communities are safe when nuclear-powered vessels visit our
country. Since 1960 Australia has hosted over 285 visits by UK and US nuclear-powered vessels with
over 1,800 days in port. These arrangements between Federal and State Governments will continue
and strengthen with the increased number of visits from our AUKUS partners this decade, and for
the acquisition of our Australian nuclear-powered submarine fleet.
Security
The Nuclear Powered Submarine Taskforce has worked closely with Australian, UK and US security
and intelligence partners – including ASIO and the Australian Cyber Security Centre – to develop a
threat-informed, risk-led approach to security understanding and requirements. Defence intends to
leverage the established Defence Security Principles Framework (DSPF) and the Defence Industry
Security Program (DISP) that defence industry is already participating in. This also includes use of
the Australian Cyber Security Centre’s (ACSC) ‘Essential 8’ cybersecurity controls. These frameworks
and programs will be complemented by increased audit and assurance activities to ensure all
program partners are consistently meeting the required standards for personnel, physical,
information, and cyber security, with effective governance.
Senate Question 3 March 2023
Senator Linda Reynolds
Question Number: 65
Date question was tabled: 17 May 2023
Question
Does the Department of Defence believe there are sufficient qualified, skilled and experienced
workers in the Australian labor market to support the Nuclear Powered Submarine program
development and maintenance without relying on increased skilled migration? If so, why?
Has the Department undertaken any modelling on the labor force requirements for AUKUS
submarines and what proportion of that labor force might need to come from overseas in the first
instance to provide the experience with nuclear powered submarines and their associated
ecosystems?
A) If so, when will this be released to industry to include SME to understand the scale of the gap
and where they might access this labor force and what steps the government is taking to ensure
access to these people?
B) If not, how does the department believe it will ensure access to appropriately qualified, skilled
and experienced people to provide the breadth of industrial capabilities around the NPS
ecosystem?
Has the Capability and Acquisition Sustainment Group updated relevant industry panels to
integrate new skillsets, like nuclear power qualified expertise required for the NPS ecosystem?
Does the government believe that the NPS ecosystem labor force will have enhanced mobility
across the AUKUS partners to avoid the “zero sum” risk of protectionism and/or “poaching”
between nations?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
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Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
A) If so, what steps have been agreed between the partners to allow this mobility to service all the
AUKUS partners NPS ecosystems?
B) If not has agreement been reached on how Australia will access these knowledge Skills and
experience without affecting partners NPS plans?
Has the department developed a faster system to provide appropriate visas to AUKUS partners
working on the NPS? If not, have the current excessive delays in processing skilled visas been
factored into the planning for how long it will be before Australia can build a NPS?
Answer
Workforce demand and skill requirements for the nuclear-powered submarine program are being
developed by the Nuclear Powered Submarine Taskforce in collaboration with our AUKUS partners.
Education and skilling pathways are also being identified and created to support the acquisition and
sustainment of nuclear-powered submarines, and the greater Australian nuclear enterprise across
industry, Navy and government. We are working closely with our AUKUS partners to identify where
skilled and technically expert personnel from our partner nations can best support the workforce
growth required. Administrative arrangements to support the workforce requirements will be
developed across government.
Supplementary Budget Estimates 15 February 2023
Senator Jordan Steele-John
Question Number: 10
Date question was tabled: 5 April 2023
Question
Senator STEELE-JOHN: Beyond that provision-of-advice role, does the former admiral have any
other roles with the department?
Vice Adm. Mead: If you're talking about the Department of Defence, not that I'm aware of—not in a
formal, contractual sense. He has obviously established many strong relationships with Navy people
in Australia, and they would make contact, I assume, but not in a formal sense.
Mr Moriarty: I'm not aware of any other contractual arrangements, Senator.
Senator STEELE-JOHN: Could you take that on notice and just provide us a clear answer?
Mr Moriarty: Certainly.
Senator STEELE-JOHN: When was the admiral hired by Department of Defence to take on this
advice role?
Vice Adm. Mead: Quarter 3 last year, but I can get the exact dates for you.
Senator STEELE-JOHN: Yes, if you could take that on notice or provide them by the end of the
session, that'd be really good. Prior to being employed by Australia, what was the admiral's role in
the United States?
Vice Adm. Mead: He was retired from his work in the US Navy, and I understand he was serving on
a number of board positions with some US companies.
Senator STEELE-JOHN: Do you know which US companies he was serving on the board of?
Vice Adm. Mead: We did have a list of that. We sought legal advice on Admiral Richardson. We got
him to fill in probity forms and non-disclosure agreements as well, and we've been very careful to
make sure his advice is very specific to the questions that remain within the guidelines.
Senator STEELE-JOHN: Can you provide us with the list of boards that Admiral Richardson was on
prior to his commencement with the department?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
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Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Vice Adm. Mead: We'll seek to do that, Senator.
Senator STEELE-JOHN: It's my understanding that the admiral was Chief of Naval Operations in the
United States from 2015 until 2019. That'd be the highest ranking position in the US Navy. Can you
confirm this?
Vice Adm. Mead: That's correct, Senator.
Senator STEELE-JOHN: Prior to this he was the director of naval propulsion, meaning he oversaw
basically everything nuclear related within the US Navy. Can you confirm that was his role?
Vice Adm. Mead: That's correct, Senator. Senator STEELE-JOHN: Was the admiral paid through a
consulting firm as part of his employment with the department?
Vice Adm. Mead: He was paid via a company which he had set up himself.
Senator STEELE-JOHN: Which company was that?Vice Adm. Mead: I would have to get back to you
on that, Senator.Senator STEELE-JOHN: He is currently still an employee of the Department of
Defence; is that right?
Vice Adm. Mead: We have him on a contract not to exceed a number of days per year. We have not
employed him in 2023. This calendar year he has not been on service.
Senator STEELE-JOHN: So is it part time or full time?
Vice Adm. Mead: Very much part time. When we have specific tasks, questions or complex
problems which come our way that we don't have the subject matter expertise for, we reach in for
his assistance.
Senator STEELE-JOHN: Is it like a number of days he's contracted for?
Vice Adm. Mead: Correct. I think it's not to exceed a hundred days over a two to three-year period,
but I can get those details for you.
Senator STEELE-JOHN: Not to exceed a hundred days over a two-year period?
Vice Adm. Mead: It's akin to that, but I can get you the details.
Answer
Admiral John Richardson USN (Retd) has provided advice to the Department since November 2022.
Admiral Richardson is engaged on a 12-month contract. The contract includes two 12-month
extension options at the Commonwealth’s discretion.
Admiral Richardson’s only contractual arrangement with the Department of Defence is for
providing advice to the Nuclear Powered Submarine Taskforce.
Admiral Richardson was required to declare his other relevant interests at the time his contract
commenced with the Department of Defence.
Supplementary Budget Estimates 15 February 2023
Senator Jordan Steele-John
Question Number: 11
Date question was tabled: 21 April 2023
Question
Senator STEELE-JOHN: In the answers you provided on notice in relation to Rear Admiral Thomas
Eccles, Vice Admiral William Hilarides and Admiral Kirkland Donald, the combined total of the
payments made to those three individuals was some $5.3 million. Can you confirm that was the
answer you gave to us?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
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Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Mr Dalton: The response we gave you in that question on notice is the maximum amount they
could be paid if they worked all of the days they were allowed to work under their contract, so their
individual payments will be a total less than that sum.
Senator STEELE-JOHN: How much have they been paid to this point?
Mr Dalton: I'll take that on notice, Senator
Senator STEELE-JOHN: In that context, then, I'm very keen to know how much Admiral Richardson
has been paid by the department to this point. What is the value of his contract those 100 days
over two years?
Vice Adm. Mead: I'll take that on notice, Senator.
Senator STEELE-JOHN: And what's the duration of the contract that former Admiral Richardson is
under?
Vice Adm. Mead: I believe it's approximately two to three years, but I'll take that on notice.
Senator STEELE-JOHN: Given it is a structure to exceed no more than a certain period of time over a
certain number of days, if you break it down, how much are we paying these individuals per hour
for their advice?
Vice Adm. Mead: I'd have to take that on notice, Senator.
Answer
Admiral John Richardson USN (Retd) has provided advice to Department since November 2022.
Admiral Richardson has been paid $33,476.64 (excluding GST) as at 31 December 2022. Admiral
Richardson is engaged on a 12-month contract. The contract includes two 12-month extension
options at the Commonwealth’s discretion.
Admiral Kirkland Donald USN (Retd) provided advice to the Department from December 2017 to
2022. Admiral Donald was paid $297,319.97 (excluding GST).
Vice Admiral William Hilarides USN (Retd) has provided advice to Government since 2016. Vice
Admiral Hilarides has been paid $1,582,430.82 (including GST) as at 31 December 2022.
Rear Admiral Thomas Eccles USN (Retd) has provided advice to Government since 2016. Rear
Admiral Eccles has been paid $699,118.68 (including GST) as at 31 December 2022.
Individual payment rates for Admiral Richardson, Admiral Donald, Vice Admiral Hilarides and Rear
Admiral Eccles are commercially sensitive.
Supplementary Budget Estimates 15 February 2023
Senator Jordan Steele-John
Question Number: 45
Date question was tabled: 24 April 2023
Question
1. Can the government confirm that any Australian nuclear-propelled submarines would not:
a. Carry nuclear weapons owned by another nation, under any circumstances?
b. Be capable of carrying nuclear weapons?
2. Can the government confirm that Australian nuclear-propelled submarines would not be
engaged to assist with the use of nuclear weapons by another country?
3. Can the government confirm that it will abide by its obligations under the Rarotonga Treaty not
to station nuclear weapons in Australia under the Rarotonga Treaty?
4. Will the government confirm that any B-52 aircraft that are stationed in Australia will only be
conventionally-capable, and not nuclear-capable?
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
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Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
5. Will the government confirm that any other possible future US aircraft stationed in Australia will
not carry nuclear weapons?
Answer
1. a-b.)Australia’s nuclear-powered submarines will not be armed with nuclear weapons. As a non-
nuclear-weapon State Party under the Treaty on the Non-Proliferation of Nuclear Weapons,
Australia does not – and will not – seek to acquire nuclear weapons. The only nuclear aspect of the
program will be the power source for the submarine propulsion system. Australia’s acquisition of
nuclear-powered submarines will proceed in a manner that is fully consistent with its non-
proliferation obligations and commitments.
2. Australia’s nuclear-powered submarines will be owned and operated by Australia, under
sovereign Australian command and in full compliance with Australia’s non-proliferation obligations
and commitments.
3. Stationing nuclear weapons in Australia is prohibited by the South Pacific Nuclear Free Zone
Treaty, to which Australia is fully committed.
4. See response to question 3.
5. See response to question 3.
Supplementary Budget Estimates 15 February 2023
Senator Simon Birmingham
Question Number: 22
Date question was tabled: 21 April 2023
Question
Senator BIRMINGHAM: I'd just add to the earlier comments and thank the retiring officials who are
present for your service—some of whom I'm sure we haven't heard the last of today. I'd like to turn
to the AUKUS task force. Has the AUKUS task force reported in relation to future nuclear-powered
submarine capabilities and recommendations?
Vice Adm. Mead: The task force has worked with our partners, and we've provided continual
updates to government on the nuclear-powered submarine program, including the optimal
pathway.
Senator BIRMINGHAM: You have now provided a recommendation in relation to the optimal
pathway, or a report in relation to the optimal pathway?
Vice Adm. Mead: We have.
Senator BIRMINGHAM: When was that provided to government?
Vice Adm. Mead: Earlier this year.
Senator BIRMINGHAM: Was that yesterday, last week, a couple of months ago—well, a month
ago?
Vice Adm. Mead: Earlier this year.
Senator BIRMINGHAM: Vice Admiral Mead, I appreciate there are elements of this that are of
course confidential, but the timing of provision of a report to government rarely is and is fair game
for estimates questions. So let me ask again: when was the report with recommendations in
relation to the optimal pathway provided to government?
Senator Wong: We'll take that on notice.
Senator BIRMINGHAM: Senator Wong, I do get the impression that Vice Admiral Mead—I'm happy
for him to answer in the general, whether it was yesterday, last week or last month. He said earlier
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Phone:
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Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
this year. I get the impression he knows. I'm pretty sure this is a fairly significant thing he would
remember.
Senator Wong: Yes, and we will take it on notice.
Senator BIRMINGHAM: It doesn't need to be taken on notice.
Senator Wong: The minister has the discretion to do that. I will take it on notice.
Senator BIRMINGHAM: On what basis are you seeking to take it on notice?
Senator Wong: So I can ascertain what we can tell you. If we can be helpful, we will. I would
anticipate that there will be engagement with the opposition at an appropriate time. You know
these are sensitive matters. These are highly classified matters. You know that before you made the
announcement the then opposition was briefed by the Prime Minister on the day of the
announcement or maybe the day before. So we'll probably do a bit better than that. I'm not trying
to be difficult, Senator Birmingham. I don't want the official put in a difficult position. I'd like to take
it on notice.
Answer
The recommendation on the optimal pathway was provided to Government earlier this year.
Prepared By:
Cleared By:
Name: Megan Lees
Name: David Hallinan
Return to Index
Position: Chief Operating Officer
Position: Acting Director-General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:
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Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Collins Class Submarines
Handling Note:
Chief of Navy, Vice Admiral Mark Hammond, to lead on Collins Class submarine
needs, capability and operational employment.
Deputy Secretary, Naval Shipbuilding and Sustainment Group, Jim McDowell and
First Assistant Secretary Submarines, John Chandler, to support on the performance
of sustainment, capability upgrade insertion, and Life of Type Extension project
preparation.
Key Messages
An enduring, potent and agile submarine capability is critical to Australia’s national
security. The Collins Class submarines remain one of the most capable
conventionally-powered submarines in the world, having been specifically designed
to meet Australian requirements.
The Collins Class submarine life of type extension supports continuity of Australia’s
submarine capability and creates options for future Government consideration of
how Australia best transitions from a conventional to nuclear-powered submarine
capability.
The 2023-24 Collins Class submarine budget as at 1 December 2023 includes:
-
Collins sustainment (CN10): $741.6 million;
-
Collins Life of Type Extension (SEA1450 Phase 1): $249.9 million; and
-
Projects: $128.9 million (six Collins related major projects).
Talking Points
What is the current plan for the life of type extension?
The service life extension of the Collins Class submarines will involve a combination of
ongoing sustainment, selected capability enhancements and a Life of Type Extension
project.
The Government-approved scope for the Life of Type Extension project is for the design
and acquisition of long-lead items to enable installation during life of type extension full
cycle dockings.
Collins Class Life of Type Extension Independent Assurance Activity
Independent assurance of the Collins Class life of type extension is prudent to inform
current and future plans to extend the service life of the Collins Class submarines. This
assurance activity will not delay any of the vital work Defence and industry are
continuing to deliver in relation to the Collins Class.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
The assurance activity is being led by Ms Gloria Valdez, a member of the Naval
Shipbuilding Expert Advisory Panel and will conclude with a report to Government s4
.
7C
The report will examine sensitive and classified information on submarine operations
and capabilities, and will inform future Government decisions. It would not be
appropriate to comment on details of the report.
What work will be delivered through the Life of Type Extension project and what is the cost?
The Life of Type Extension project is one part of the long-term plan to assure an
enduring, potent and agile submarine capability. When integrated with effective
ongoing sustainment and selected capability enhancements, the Collins Class can be
extended by a 10-year operating cycle per platform. The Life of Type Extension project
is scoped to remediate a number of the highest technical risks to successful life
extension.
At the time of First Pass approval, the total cost estimate of the Collins Life of Type
Extension project was within the $4.3 to $6.4 billion public cost envelope.
s47C
What is the risk profile of the Collins life of type extension?
Defence assesses the risks of extending the life of the Collins Class submarines to be
significant, but manageable. While this assessment has not substantially changed over
time, our confidence in the assessment has improved.
Defence is working closely with ASC Pty Ltd to manage the planned activities within the
approved resources and docking windows.
Is Defence equipping Collins Class submarines with Tomahawk?
Defence has engaged with the United States Navy to determine the feasibility of fitting
the Collins Class submarines with Tomahawk cruise missiles, and is currently
considering the outcomes of that work.
What is the level of Australian Industry Content for Collins Class submarines?
Based on the current contractual reporting obligations of the Collins Class submarine
industry partners, around 90 per cent of the ongoing platform sustainment budget is
spent in Australia.
As at 1 December 2023 the total ASC Pty Ltd in-service support contract workforce
headcount was 1,566 and the ASC Pty Ltd Life of Type Extension project full-time-
equivalent workforce was 244 (which is included in the overall headcount).
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Submarine Enterprise Workforce
Defence acknowledges current challenges with the submarine enterprise workforce,
including Navy submariner, APS, and sovereign industrial workforce recruiting and
retention, particularly in light of the growth required to support the ‘Optimal Pathway’
to Australia’s future nuclear-powered submarine fleet.
With respect to the ADF workforce elements, Defence is undertaking significant work
to overcome these challenges, including releasing the Navy ‘live a story worth telling’
recruitment campaign under the ADF Careers brand; transforming the ADF People
System, and implementing a range of ADF retention initiatives, including Navy’s ‘Stay
Onboard – People First’ retention campaign.
Defence recognises the submarine workforce is experiencing critical shortages in four
workgroups: Submarine Warfare Officer, Communications Information Systems
Submarine sailor, Electronic Warfare Submarine sailor and Marine Technician
Submarine sailor. Defence’s list of critical workforce categories is reviewed annually by
the Chiefs of Service Committee, providing a whole-of-ADF process to prioritise and
guide remediation efforts.
For the APS and Industry elements of the enterprise workforce, Defence continues to
take managed risks to Collins workforce in support of the ‘Optimal Pathway’ to
Australia’s future nuclear-powered submarine fleet. Aside from some isolated
instances, the Collins program seeks to maintain or reduce its workforce in order to
maximise opportunities for growth of a ‘sustainment and build workforce’ for nuclear-
powered submarines.
Background
Following the Government’s announcement on 14 March 2023 on the Optimal Pathway
to acquire nuclear-powered submarines, the successful execution of the Collins Class
life of type extension remains a priority.
Substantive work on the Life of Type Extension project commenced in 2016-17
supported by funding from the Future Submarine Program. This work informed
development of the Future Submarine Program and further requirements being funded
under separate Government approvals.
Funding for the Life of Type Extension project has been transferred to Collins
sustainment and is listed under the sustainment funding line known as CN62, but is in
the process of transition to a more orthodox acquisition project (SEA1450).
The Collins Class Life of Type Extension project achieved First Pass Government
approval in June 2021.
At the appropriate time the Australian Submarine Agency will assume responsibility for
the ongoing materiel delivery of Australia’s Collins Class submarine capability. The Royal
Australian Navy will continue operating both conventional and nuclear-powered
Australian submarines.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Timeline of Significant Events
Date
Action
25 October 2023
The Government announced an independent assurance activity to
inform the life of type extension of the Collins Class submarine
fleet.
18 April 2022
The former Government announced the Collins Class submarine
periscope upgrade (optronics) during a press conference at
Osborne in South Australia.
16 September 2021
The former Government announced the Life of Type Extension
project will be conducted on all six Collins submarines at Osborne in
South Australia.
June 2021
Government First Pass approval for the Collins Life of Type
Extension project.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
QoN 03, Collins-class LOTE Independent assurance activity, Senator the Hon Linda
White (Labor, Victoria) asked when the Government directed the assurance activity.
QoN 04, Full Cycle Docking, Senator the Hon Linda White (Labor, Victoria) asked when
was the last time a full cycle docking was concluded within a 24-month period.
QoN 05, list of Full Cycle Dockings, Senator the Hon Linda White (Labor, Victoria) asked
for a historical list of full cycle dockings.
QoN 114, Collins Class Life of Type Extension, Senator the Hon David Fawcett (Liberal,
South Australia) asked for details on the scope of the Life of Type Extension.
2023-24 Budget Estimates: 31 May 2023
QoN 47, AUKUS Remuneration Arrangement, Senator the Hon David Fawcett (Liberal,
South Australia) asked for details about submarine force critical trades.
QoN 48, Collins Class Life of Type Extension, Senator the Hon David Fawcett (Liberal,
South Australia) asked about Collins Class Life of Type Extension project
documentation.
QoN 82, Collins Class Life of Type Extension, Senator the Hon David Fawcett (Liberal,
South Australia) asked for details on Collins Class Life of Type Extension project long
lead items and design milestone dates.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone:
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Freedom of Information (FOI) Requests
In March 2023 an individual sought access to documents relating to Collins full-cycle
docking/life of type extension requirements, schedule and planning activity resulting
from the AUKUS announcement, as part of a broader request for documents related to
the nuclear-powered submarine pathway. N
No documents were identified as in-scope.
In September 2022 a media organisation sought access to documents relating to at-sea
incidents involving Collins submarines over the last 10 years. D
Documents were released
on 14 November 2022.
Recent Ministerial Comments
On 7 November 2023 the Deputy Prime Minister made comment in a doorstop
interview relating to National Security at the Indo Pacific Sea Power Conference.
On 7 November 2023 the Deputy Prime Minister responded to questions in
conversation with Chief of Navy, Vice Admiral Mark Hammond at the Indo Pacific Sea
Power Conference.
On 25 October 2023 the Minister for Defence Industry announced the Collins Class
submarine Life of Type Extension independent assurance activity.
On the 19 September 2023 the Deputy Prime Minister responded to questions relating
to the Collins submarine life of type extension.
On 14 March 2023 the Deputy Prime Minister responded to questions relating to the
Collins submarine life of type extension.
On 14 March 2023 the Minister for Foreign Affairs responded to questions relating to
the Collins submarine life of type extension.
Relevant Media Reporting
On 25 October 2023 in an article in The Australian titled ADF numbers slump amid
warnings on ageing sub, Ben Packham suggested the time frame for the life of type
extension was likely to overrun.
On 26 September 2023 in an article in The Australian titled Collins-class submarine
suffers on-board electrical fire, Andrew Greene discusses an incident on
HMAS Farncomb.
On 22 August 2023 in an article in The Australian titled All at sea when it comes to dire
state of defence, Greg Sheridan discusses equipping Collins Class with Tomahawk
missiles, following the Government announcement to fit Tomahawk to the Hobart
class.
On 21 August 2023 in an article in The Mandarin titled Tomahawks for Hobart class
destroyers confirmed, Collins class sub capability still at sea, Julian Bajkowski
references the feasibility study being undertaken into equipping Collins Class with
Tomahawk.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Phone:
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
On 4 August 2023 the Australian Strategic Policy Institute (ASPI) published an article by
Raelene Lockhorst titled Planning defence projects for a new submarine era, which
outlines the importance of Collins submarines and future challenges, including the
need to investment in Osborne Naval Shipyard to manage life of type extension.
On 4 August 2023 The Australian published an article by Peter Briggs titled Forging a
truly national submarine capability, describing Collins Class availability and the
percentage of sustainment undertaken within Australia.
On 16 June 2023 Defence Industry Europe published an article titled Sweden to
transfer technology for Australian submarine fleet modernization. The article outlines
that Sweden and Australia have reached an agreement for the use of Swedish
submarine technology in Australia's efforts to modernise its Collins submarines.
On 1 May 2023 ABC’s Four Corners aired the report Going Nuclear: Australia’s high-risk
submarine gamble. Journalist Angus Griggs investigated Australia’s nuclear ambitions.
The report criticised the availability of the Collins submarines.
Division:
Submarines
PDR No:
SB23-001063
Jointly Prepared by:
Jointly Cleared by Division Head:
Commodore Daniel LeRaye
John Chandler
Director General
First Assistant Secretary
Collins Submarine Program
Submarines
Mob:s22
Ph:
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Date: 1 December 2023
Date: 12 December 2023
Commodore Micheal Jacobson
Rear Admiral Stephen Hughes
Director General
Head Navy Capability
Submarines
Mob:s22
Ph: s47E(d)
Mob:
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Ph:
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Date: 30 November 2023
Date: 14 December 2023
Consultation:
Australian Submarine Agency
Date: 4 December 2023
Commodore Stephen Dalton
Mob:
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Ph:
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Assistant Director General
Nuclear Submarine Capability
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Phone:
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Cleared by CFO:
Date: 12 December 2023
Leonie Neiberding
Assistant Secretary Finance
Navy
Cleared by Deputy Secretary:
Jim McDowell
Date: 18 December 2023
Deputy Secretary
Naval Shipbuilding and Sustainment
Cleared by Deputy Secretary:
Vice Admiral Mark Hammond
Date: 18 December 2023
Chief of Navy
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates 25 October 2023
Senator the Hon Linda White
Question Number: 3
Date Question was tabled: Not Yet Tabled
Question
Senator WHITE: ... I want to ask some questions about the Collins Class life-of-type extension.
What is Defence's current assessment of the risks associated with the life-of-type extension
of the Collins class? I recall that Defence has stated previously that they were significant but
manageable. Is that still the case or has the risk assessment changed?
Vice Adm. Hammond: My assessment is there's been no change since our last estimates
hearing. We continue to work with ASC and our capability partners to lock down the scope
for the life-of-type extension. That work remains ongoing and will result in advice to
government early in 2024.
Senator WHITE: Have there been any recent efforts to seek to verify the level of risk
associated with the life-of-type extension and the level of preparedness by Defence and
industry to support the life-of-type extension?
Vice Adm. Hammond: Yes. There have been a couple of initiatives. Internally, I kicked off a
Three-Star Capability Manager's Steering Group looking at the Collins capability earlier this
year. We've met a couple of times with all relevant partners, working very closely with Jim
McDowell and his team to make sure we take a very focused look at the capability, not just
through the life-of-type extension lens but also through a complete review of the material
state of the class so that we are managing and eliminating all of the risks. Additionally, the
government has initiated an external assurance program, and I believe there has been a
media release to that effect this morning.
Senator WHITE: When did the government direct that independent assurance activity?
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Mr Chandler: In terms of a precise date for a direction of the activity, I would have to take
that on notice, but some months ago the government sought advice on options for an
independent assurance activity. The department, in consultation with other agencies,
provided advice on options."
Answer:
Not Yet Tabled
2023-24 Supplementary Budget Estimates 25 October 2023
Senator the Hon Linda White
Question Number: 4
Date Question was tabled: Not Yet Tabled
Question
Senator WHITE: When was the last time that a full-cycle docking was concluded within a 24-
month period?
Mr Chandler: I'd have to take that on notice, for the exact date. I believe we have achieved a
two-year full-cycle docking once in the life of the Collins class.
Answer
Not Yet Tabled
2023-24 Supplementary Budget Estimates 25 October 2023
Senator the Hon Linda White
Question Number 5
Date Question was tabled: Not Yet Tabled
Question
Senator WHITE: You might want to take this on notice: how many Collins class submarines
have undergone a full-cycle docking and how long did each one take?
Mr Chandler: I will take that on notice, just to get that exact.
Answer
Not Yet Tabled
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Phone:
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
2023-24 Supplementary Budget Estimates 25 October 2023
Senator the Hon David Fawcett
Question Number: 114
Date Question was tabled: Not Yet Tabled
Question
1. CN stated in the Oct 23 hearing that: “We continue to work with ASC and our capability
partners to lock down the scope for the life-of-type extension. That work remains ongoing
and will result in advice to government early in 2024.”
a. What elements of scope are yet to be determined?
b. What non-recurring engineering tasks will be affected by decisions on these elements of
scope?
c. If advice to government is expected early 2024, what analysis has been completed in
respect to long-lead items as to when government must make a decision on the scope such
that the 2026 commencement date remains achievable?
d. Does CN maintain that no change is required to the original SoR for Collins as part of the
systems engineering process underpinning LOTE?
2. What is the status of key engineering and procurement milestones for LOTE?
3. What is the status of the workforce required to complete FCD and LOTE? Are there
identified skills gaps or vacancies?
4. What has been the impact of economic conditions and inflation on the cost projections
and expenditure on LOTE?
5. Are any of the contracts and mandates with service providers and consultants subject to
costs higher than original estimate, or cost variations?
Answer
Not Yet Tabled
2023-24 Budget Estimates 31 May 2023
Senator the Hon David Fawcett
Question Number: 48
Date Question was tabled: 14 July 2023
Question
Senator David Fawcett asked the Department of Defence the following question, upon
notice, on 31 May 2023:
Senator FAWCETT: With the contract specifically for life-of-type extension work, does that
include, as per Defence's ASDEFCON framework—I think it's annex A—the FPS?
Mr Chandler: I'd have to take on notice the way that is represented. However, with the FPS
terminology and OCD terminology—and I followed your questioning with Mr Wiley last
week—essentially the approach with the life-of-type extension of Collins is to maintain the
current functional baseline. I'll just use that in a plain English sense. It's born of a previous
time, where that was captured essentially at a sub system specification level. But there is a
functional baseline that ASC has been responsible for maintaining as part of the core services
under the in-service support contract since its inception. If the intent of the LOTE project is to
maintain that existing functional baseline, ASC was already managing it for us. So I don't
believe it needed to be provided to them, because it's already part of their ongoing
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Phone:
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Phone:
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone:
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OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
management, and the life-of-type extension project is driving to maintain that functional
baseline.
Senator FAWCETT: Mr Chandler, I think you said you'd take on notice whether one had been
provided. ASC's evidence was that they thought it had been. You're now telling the
committee that you don't think it's required. There seems to be a deal of confusion there.
Can you take on notice from Defence's part whether those annexes which are required as
part of ASDEFCON have been provided, and if so the date when they were provided, and, if
not, whether there was a deliberative decision to not provide them, and if so by whom and
when?
Mr Chandler: Yes, I'm happy to take that on notice. I believe that's what Mr Wiley did as well.
The reason I'm pausing is that I think that the functional baseline that ASC is maintaining has
been part of their existing remit since the inception of the in-service support contract, so that
would be the reason why it was not provided specifically for the LOTE project. I'm happy to
take that on notice.
Answer
The Collins class submarine Certification Basis has been the functional baseline under the In-
Service Support Contract since 2012. Following a contemporary systems engineering
approach, a mission system specification has been developed by ASC, derived from the
Collins class Certification Basis and an exemplar FPS provided by Defence, to capture all
function and performance requirements for the life-of-type extension project.
2023-24 Budget Estimates 31 May 2023
Senator the Hon David Fawcett
Question Number: 47
Date Question was tabled: 14 July 2023
Question
Senator FAWCETT: Sorry, this is all very good, but we are quite limited for time. Could you
specifically look at the particular measures that you're looking at to retain your workforce
engagement with ASC and the considerations around the AUKUS submarines—the particular
measures, initiatives and discussions you are having around those.
Vice Adm. Hammond: The submarine force is the beneficiary of a deliberately differentiated
remuneration arrangement. That remuneration arrangement is reviewed periodically. That is
currently under review in light of this year's announcements around the optimal pathway.
Now that we have clarity around the size, scope and growth rate for the future submarine
requirement, it's appropriate that we conduct that full review of remuneration. Of course,
that is going to be, as is necessary, in partnership with broader Defence, and the new chief of
personnel will have a key role to play. That's the principal mechanism: remuneration. Other
initiatives have been rolled into that whole-of-workforce approach, some of which were
spoken to by the Deputy Secretary of Defence People Group earlier this morning.
Senator FAWCETT: We may come back to you in the next estimates to see how you are
tracking on some of those measures. Particularly, could you identify for us on notice any
critical trades where you are short of people for the Collins class.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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OFFICIAL
Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
Answer
Senator David Fawcett – The Department of Defence provides the following answer to the
Senator’s question:
The Submarine Force has five critical trades where Navy has a shortage of people within the
Collins Class program and is actively seeking to recruit.
Communications Information Systems
Electronic Warfare
Marine Engineering
Maritime Warfare Officer and
Weapons Electrical Engineer.
The critical category list is reviewed annually by the Chiefs of Service Committee.
2023-24 Budget Estimates 31 May 2023
Senator the Hon David Fawcett
Question Number: 82
Date Question was tabled: 14 July 2023
Question
Mr Chandler highlighted that budget approval has been provided for non-recurring
engineering (NRE) and long=lead items.
ASC have highlighted that the scope of LOTE includes: propulsion systems, diesel engines,
generators, power conversion and distribution systems, optronics upgrade, and a cooling
system upgrade. Public indication for start of the first LOTE program is “from mid 2026”, ie:
36 months.
Question 1: What are the scheduled (or planned) dates for:
a. key milestones (including but not limited to preliminary or critical design reviews) for:
* NRE associated with each of the key LOTE elements listed above, and
* other engineering effort required ahead of the induction of HMAS Farncomb into the LOTE
program
b. HMAS Farncomb induction into the LOTE program
c. HMAS Farncomb set-to-work post LOTE program
Question 2: For each key element of LOTE (eg: propulsion systems, optronics etc) which
components constitute long lead time items?
Question 3: Are any items with lead times in excess of 30 months not yet in contract?
Question 4: Now that budget has been approved, does ASC have authority to contract for
long lead items or do they require approval from Defence to proceed?
Answer
1a.
Defence continues to work with industry (including ASC) on the life-of-type-extension
(LOTE) project schedule. Current design milestones are:
•
Non-recurring engineering design phase: Quarter 3 2021 to Quarter 4 2024, inclusive of
LOTE key elements.
•
Long-lead item procurement and First of Class procurements:
o
Quarter 4 2022 for Main Propulsion.
o
Quarter 2 2023 for Diesel Generators.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone:
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Additional Budget Estimates February 2024
PDR No: SB23-001063
Last updated: 7 February 2024
Collins Class Submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler
1b
Mid-2026 to mid-2028.
1c.
Within the full cycle docking period.
2.
Main Propulsion System and Diesel Generators.
3.
All approved long lead items have been ordered or will be ordered for delivery prior to
their scheduled requirement for installation.
4.
ASC requires Defence approval for authority to execute contracts for long lead items.
Prepared By:
Cleared By:
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
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Phone:
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Phone:
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Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Hunter Class Frigates
Handling Note: First Assistant Secretary, Major Surface Combatant and Combat Systems,
Sheryl Lutz to lead.
Key Messages
The Government has received the report on the Independent Analysis into Navy’s
surface fleet, which was a recommendation of the Defence Strategic Review.
s47C
.
The Government’s response will determine any impact to the Hunter Class Frigate
Program. Defence will not pre-empt the Government’s response.
Defence appeared before the Joint Committee of Public Accounts and Audit on
20 November 2023 in response to the Australian National Audit Office Report into
Defence’s procurement of Hunter Class frigates. This was a follow up to the initial
hearing held on 19 May 2023.
On 30 November 2023 the Minister representing Defence in the Senate tabled
documents that were the subject of an Order for the Production of Documents made
on 27 November 2023 by Senator David Shoebridge.
These documents included an independent review of Defence’s procurement of the
Hunter Class frigates up to Second Pass in 2018, previously delivered to, and accepted
by, the Secretary and the Chief of the Defence Force.
Talking Points
Hunter Class frigate review, Defence Strategic Review and Independent Analysis of Navy’s
surface fleet
The Surface Ship Advisory Committee conducted an independent review of the Hunter
Class Frigate Program between September 2022 and January 2023. The review team
examined progress made on ship design, and evaluated the program’s performance to
date on cost, schedule and scope. The review team provided a report on their findings
to the Defence Strategic Review Independent Leads for consideration.
In April 2023 the Government agreed with a recommendation in the Defence Strategic
Review to undertake an independent analysis of the Navy’s surface combatant fleet
capability. United States Vice Admiral William Hilarides (Ret’d), Ms Rosemary Huxtable
AO PSM and Vice Admiral Stuart Mayer AO CSC, conducted the analysis. The
Government received the report on 29 September 2023 and will provide a response in
early 2024.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Joint Committee of Public Accounts and Audit
On 11 May 2023 the Joint Committee of Public Accounts and Audit announced the
extension of its inquiry into the Major Projects Report to include an inquiry into the
procurement of Hunter Class frigates. This followed the tabling of the Australian
National Audit Office’s performance audit into Defence’s procurement and
management of the Hunter Class frigates.
On 19 May 2023 Defence officials appeared at the Joint Committee of Public Accounts
and Audit public hearing. Defence has since reviewed the Australian National Audit
Office report and conducted a further independent review to determine the factors
leading to the Second Pass decision in 2018.
The Secretary and the Chief of the Defence Force have considered the review and
commenced a program of work addressing the findings of the review to ensure
Defence learns lessons and updates its processes as required.
The Joint Committee of Public Accounts and Audit reconvened a public hearing on
20 November 2023.
Defence responded to 45 questions on notice following the two public hearings.
Order to Produce Documents – Senator David Shoebridge
On 27 November 2023 Senator Shoebridge successfully moved a motion for an order
for the production of documents of the independent review report.
In response to this motion, a redacted version of the report was tabled in the Senate on
30 November 2023. Other documents tabled included:
the Terms of Reference of the review; and
documents relating to the appointment of the review team members.
Why does Australia need the Hunter Class frigate?
The Hunter Class frigate will provide the ADF with high levels of lethality and
deterrence in a time of increased global uncertainty.
These general-purpose frigates, optimised for anti-submarine warfare, will have the
capability to conduct a variety of missions independently or as part of a task group. The
frigates will have sufficient range and endurance to operate effectively throughout the
region and the flexibility to support other roles, such as humanitarian assistance and
disaster relief.
This project is key to developing a globally competitive and effective naval shipbuilding
and sustainment industry, significantly expanding and upskilling Australia’s workforce.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
What is the current cost forecast and approved budget?
The current out-turned total acquisition provision is $45.15 billion (Portfolio Budget
Statement 2023-24).
Defence has approval to undertake the design and productionisation phase only. The
approved budget for this phase is $7.18 billion which covers design and production,
ordering of long-lead time equipment including the first three Aegis combat systems,
and $986 million (including contingency funding) for infrastructure. The contract value
for this phase with BAE Systems Maritime Australia is currently $3.3 billion.
The Hunter Class frigate project office is negotiating with BAE Systems Maritime
Australia regarding the cost, schedule, risk and production strategy for the first batch of
three ships.
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Can Defence afford the nine-ship program within the current cost estimate?
While ship production is beyond the current approved scope of the project, the
Auditor-General found that the original 2018 estimated total acquisition provision,
including all of the elements yet to be approved by the Government, is under extreme
pressure.
The $45.15 billion provision is a cost estimate. Approval has not been sought for
funding to acquire nine Hunter Class frigates, but has been provided to select the
Type 26 as the reference ship design, the sale of ASC Shipbuilding, funding for the
design and productionisation phase, and agreement to return to Government
progressively for the construction of ships in batches.
Background
Hunter Class frigates will replace the Royal Australian Navy’s ageing fleet of Anzac class
frigates. The Hunter Class frigates will be built at the Osborne South Naval Shipyard in
South Australia. Construction is planned to occur from 2024 to 2044.
Lifting Australian industry capability is a key objective of the project, with an aim to
have over 58 per cent of the total value of the prime contract invested in Australia over
the life of the project.
Schedule
In June 2018 when the project was approved, the indicative schedule had prototyping
commencing by the end of 2020, ‘cut steel’ on ship one by the end of 2022, and
delivery before the end of 2029. Delivery of the ninth ship was anticipated between
2045 and 2047.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Prototyping commenced on schedule in 2020 at the upgraded Osborne shipyard. In July
2021 the former Government agreed to an extended prototyping period and an 18-
month delay to commencement of ship one from December 2022 to no later than
June 2024 to manage risks associated with design maturity of the Type 26 reference
ship design in the United Kingdom and the impact of the COVID-19 pandemic.
Sustainment
The Hunter Class frigate fleet sustainment will utilise the future maritime sustainment
model, which is being introduced under Plan Galileo.
Western Australia will be home to a new Hunter Class frigate training and capability
centre, known as ‘Ship Zero’, to support the new frigate’s introduction into service and
operation thereafter.
Transition from Design and Productionisation Phase to Batch One Phase
The design and productionisation phase commenced in December 2018 when BAE
Systems Maritime Australia signed the Head contract.
The 18-month delay in construction from the end of 2022 to mid-2024 has allowed the
trained workforce to expand and prototyping to extend, producing Schedule Protection
Blocks that will be used in ship one.
Defence has previously flagged that the project is under extreme pressure to deliver
nine ships for the estimated cost. On 29 June 2023 BAE Systems Maritime Australia
provided a tender quality cost estimate for the first three ships (Batch One) along with
a cost estimate for nine ships. The project is finalising negotiations pending the
Government’s response to the independent analysis of Navy’s surface combatant fleet
capability.
Recent achievements and milestones
The Preliminary Design Review was completed on 30 October 2023.
All twelve design zones are now under Australian configuration management. Five of
the twelve zones have completed detailed design, five zones are undergoing detailed
design and the final two zones will commence detailed design in Quarter 1, 2024.
Six units from the four schedule protection blocks are in production. These units and
blocks will be used in the first ship
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 15 February 2023
QoN No. 37, Hunter Class frigates review, Senator the Hon Simon Birmingham (Liberal,
South Australia) asked for a copy of the terms of reference for the independent Hunter
Class frigates review.
Budget Estimates: 9 November 2022
QoN No. 12, Former US government officials, Senator Jordan Steele-John (Greens,
Western Australia) asked about Rear Admiral David Gale’s involvement as a consultant
on the Future Frigate program.
QoN No. 86, Hunter Class frigate, Senator Nita Green (ALP, Queensland) sought details
regarding integration of Australian design requirements into the Type 26 Frigate.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates briefing
pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision to release
documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s May Senate
Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
On 29 September 2023, the Deputy Prime Minister and Minister for Defence Industry
issued a joint release stating they had received the independent analysis of Navy’s
surface combatant fleet capability.
On 24 April 2023 the Deputy Prime Minister confirmed during a press conference in
Canberra that construction of Hunter will continue while an independent analysis of
navy’s surface combatant fleet is undertaken.
On 31 August 2022 the Deputy Prime Minister responded to questions during a
doorstop interview in Glasgow regarding the Hunter Class frigate design, weight,
schedule and budget.
Relevant Media Reporting
On 12 December 2023 several Australian media outlets reported on the Hunter Class
frigate project in response to the Deputy Prime Minister’s visit to South Australia.
$45bn Adelaide-based Hunter Class frigate project boosted by Defence Minister
Richard Marles.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
Return to Index
Combat Systems
Group: Naval Shipbuilding and Sustainment
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
On 5 December 2023 ABC News published an article by Andrew Greene titled
Previously secret report raises fresh doubts on British warship selection for $45 billion
future frigate program, in reference to an independent review that suggested Navy had
removed a requirement for “value for money”.
On 5 September 2023 The Australian Financial Review published an article by Andrew
Tillett titled Bungled navy warship referred to anti-corruption watchdog, discussing
Senator David Shoebridge’s referral of the Hunter Class frigate contract to the National
Anti-Corruption Commission.
Australian media has reported extensively on the Hunter Class frigate project following
the release of the Australian National Audit Office’s performance audit into the
procurement of Hunter Class frigates, and the subsequent Joint Committee of Public
Accounts and Audit public hearings. The future of the RAN’s surface combatant force;
The $45 billion Hunter Frigates Project has been a comedy of errors from day one;
Senator Fawcett grills bureaucrats and governments on defence procurement; Frigate
probe launched;
New parliamentary probe targets wasted warship money; and,
BAE
Systems won $45bn contract to build Hunter-class frigates without effective tender
process.
Division:
Major Surface Combatants and Combat Systems
PDR No:
SB23-001064
Prepared by:
Cleared by Division Head:
Commodore Scott Lockey
Sheryl Lutz
Director General
First Assistant Secretary
Hunter Class Frigate
Major Surface Combatants and Combat
Systems
Mob:
s22
Ph:
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Mob:
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Ph:
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Date: 11 December 2023
Date:15 December 2023
Consultation:
Rear Admiral Stephen Hughes
Date: 14 December 2023
Head Navy Capability
Mob:
s22
Ph:
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Consultation:
Francesca Rush
Date: 23 January 2024
Chief Counsel Commercial & First Assistant
Mob:
s22
Ph:
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Secretary Australian Industry Capability
Cleared by CFO:
Date: 15 December 2023
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
Return to Index
Combat Systems
Group: Naval Shipbuilding and Sustainment
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Leonie Neiberding
Ph: s47E(d)
Assistant Secretary Finance - Navy
Cleared by DSR:
Ciril Karo
Date: 14 December 2023
First Assistant Secretary Defence Strategic
Ph: s47E(d)
Review Implementation
Cleared by Deputy Secretary:
Jim McDowell
Date: 18 December 2023
Deputy Secretary
Naval Shipbuilding and Sustainment
Questions on notice referred to within the brief:
Supplementary Budget Estimates: 15 February 2023
Senator the Hon Simon Birmingham
Question Number: 37
Date question was tabled: 30 May 2023
Question
Senator BIRMINGHAM: Thanks, Chair. It gave the officials a chance to stretch their legs but
not necessarily to move away! The department initiated a review in October last year into the
Hunter Class frigates— is that correct?
Mr Dalton: That's correct.
Senator BIRMINGHAM: When did that review complete or conclude its work?
Mr Dalton: The review completed their report last month.
Senator BIRMINGHAM: Was that in January?
Mr Dalton: Correct.
Senator BIRMINGHAM: What were the terms of reference for that review?
Mr Dalton: We'll take that on notice.
Answer
The terms of reference are provided at Attachment A.
Budget Estimates: 9 November 2022
Senator Jordan Steele-John
Question Number: 12
Date question was tabled: 31 January 2023
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
Phone:
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Question
Senator STEELE-JOHN: Thank you. Mr Dalton, Rear Admiral David Gale was on active duty
before he submitted his paperwork to the Pentagon to be able to come and work for
Australia. I believe he has been employed by the department to the tune of US$222,000. I'm
wondering whether you can confirm his employment status with the department.
Mr Dalton: I'm not familiar with that particular case, but I will take it on notice.
Senator STEELE-JOHN: It's Rear Admiral David Gale. He was a consultant, and I believe is still a
consultant, on the Future Frigate program. Then we've got a Mr Thomas Eccles, a former rear
admiral of the United States who retired in 2013 and has served, I think, for the last five years
or so as a consultant. What role does the former rear admiral serve with the department?
Mr Dalton: Admiral Eccles was one of the founding members of the Naval Shipbuilding
Advisory Board, and his role has continued under the new Naval Shipbuilding Expert Advisory
Panel.
Senator STEELE-JOHN: Thank you. Finally, there is Mr William Hilarides, a former vice-admiral
who, I think, is currently in the role of member of the Australian Naval Shipbuilding Advisory
Board.
Mr Dalton: I can confirm that Admiral Hilarides is a foundation member of the Naval
Shipbuilding Advisory Board and he now chairs the Naval Shipbuilding Expert Advisory Panel.
Senator STEELE-JOHN: Again, the value of the contracts that we have had with—
Mr Moriarty: If I could, Admiral Hilarides has on a couple of occasions provided evidence to
this committee.
Senator STEELE-JOHN: Yes, I am aware of that. If you can do that, it would be fantastic.
Finally, in relation to former admiral Donald Kirkland, he was a member of the Australian
Submarine Advisory Committee?
Mr Dalton: I can confirm that Admiral Kirkland was a member of the Australian Submarine
Advisory Committee. He is no longer serving in that capacity.
Senator STEELE-JOHN: No, he is not. He was found to be—it was kind of made public that he
was also acting at the time as chairman of the Huntington Ingalls Industries group, since 2020
I believe.
Mr Dalton: We were aware of his other roles; he had declared that. He wasn't involved in
providing advice on aspects that touched on Huntington.
Senator STEELE-JOHN: He has stepped back from that position, as of April, because of a
potential conflict of interest.
Mr Dalton: From the Submarine Advisory Committee?
Senator STEELE-JOHN: Yes.
Mr Dalton: Yes.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
Phone:
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Senator STEELE-JOHN: Because of a potential conflict of interest.
Mr Dalton: With the expansion of the submarine program to include a nuclear powered
submarine program in which Huntington Ingalls would have an interest. I will just reinforce, in
his capacity as a member of the Submarine Advisory Committee he did not provide advice on
nuclear powered submarines.
Senator STEELE-JOHN: I believe his contract was worth about US$255,000, but can you take
that on notice for me, as well.
Mr Dalton: Yes.
Senator STEELE-JOHN: Finally, can you give us an idea of whether there are any former
members of the Navy currently advising Defence in relation to the AUKUS negotiations, other
than the individuals I have listed?
Mr Dalton: I'm probably not best placed to talk about who is providing advice in relation to
AUKUS, but I can certainly advise you about the members of the Naval Shipbuilding Expert
Advisory Panel.
Senator STEELE-JOHN: Yes, you could, or someone else at the table.
Mr Moriarty: Senator, we will get you a list of all former members of the US Navy who are
providing advice to Defence across any program. program.
Answer
Rear Admiral David Gale USN (Retd) provided advice to the Department over the period
September 2016 to October 2018 in relation to the Hunter Class frigate program and
continuous naval shipbuilding.
Rear Admiral Thomas Eccles USN (Retd) has provided advice to Government since 2016
under a number of contracts. The total not to exceed value of Admiral Eccles’ contracts
(including services and reimbursables) for advice through the Naval Shipbuilding Advisory
Board and Naval Shipbuilding Expert Advisory Panel over this period is $1,214,105.75
(including GST).
Vice Admiral William Hilarides USN (Retd) has provided advice to Government since 2016
under a number of contracts. The total not to exceed value of Admiral Hilarides’ contracts
(including services and reimbursables) for advice through the Naval Shipbuilding Advisory
Board and Naval Shipbuilding Expert Advisory Panel over this period is $1,941,952.14
(including GST).
Admiral Kirkland Donald USN (Retd) provided advice to the Department over the period
December 2017 to April 2022 in relation to the Collins and Attack class submarine programs.
The total not to exceed value of Admiral Donald’s contracts (including services and
reimbursables) for advice through the Submarine Advisory Committee over this period was
$2,219,351.98 (excluding GST). Admiral Donald resigned with two years remaining on his final
contract.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
Return to Index
Combat Systems
Group: Naval Shipbuilding and Sustainment
Phone:
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
Former United States Navy officers currently providing advice to the Department:
Name
Advisory Capacity
Rear Admiral Thomas ECCLES
Naval Shipbuilding Expert Advisory Panel
Vice Admiral William HILARIDES
Naval Shipbuilding Expert Advisory Panel
Captain Vernon HUTTON
Development of nuclear mindset and supporting
infrastructure and facilities.
Captain Kevin JONES
Development of the Nuclear Stewardship Framework.
Captain Matt KOSNAR
Provide advice on nuclear-powered submarine shipyards
and infrastructure.
Admiral John RICHARDSON
Specialist advice on nuclear stewardship, workforce, and
technical matters.
Commander Andy STEERE
Provide advice on nuclear-powered submarine shipyards
and infrastructure.
Captain Bryan STILL
Provide advice on nuclear-powered submarine shipyards
and infrastructure.
Budget Estimates: 9 November 2022
Senator Nita Green
Question Number: 86
Date question was tabled: 16 December 2022
Question
With respect to the Hunter Class frigate program:
1. What is Defence’s approach to integration of Australian design requirements into the
Type-26 design reference?
2. How is Defence incorporating these changes to the design reference into the build
process?
3. Former Managing Director of BAE Systems Maritime Australia, Mr Craig Lockhart, told the
media in August 2022:
“We’ve divided the ship into design zones and when the [Type 26] reference ship has
reached a level of maturity that we can predict there will be little design change come
through, we’ll ‘cut’ that design from the UK process and bring that into the Australian
configuration environment. It’s then under our control [and] we expect no more design
change to be embodied in the reference ship that has a Hunter impact without being agreed
at the Design Council.""
a. How many zones have been ‘cut’ from the Type 26 design reference?
b. How many zones remain?
c. Are there any concerns relating to zones of the ship that have little to no variation to the
design reference?
d. Has Defence identified any additional elements that require deviation from the Type 26?
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
Return to Index
Combat Systems
Group: Naval Shipbuilding and Sustainment
Phone:
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
e. Are these zones subject to design reviews?
f. Have there been any failures of these design reviews?
4. What is the current profile of the workforce on the Hunter Class project, including
Departmental and BAE?
5. Is Defence aware of any workforce pressures on the project?
a. If yes, are there any concerns that the workforce pressures could impact schedule and/or
cost?
Answer
1. The contract with BAE Systems Maritime Australia requires the company to adapt the Type
26 reference ship design to meet the Hunter Class frigate Mission System Specification. The
Mission System Specification is agreed and stable. BAE Systems Maritime Australia employ a
structured design process with review gates and agreed entry and exit criteria.
2. The contract with BAE Systems Maritime Australia requires the company to design and
build the ship to meet the agreed Mission System Specification. The Hunter Class frigate is
based on the UK’s Type 26 frigate reference design. Both share 12 design zones that
encompass the design for the entire ship. Type 26 design zones are transferred to Australia
under a structured process at an agreed level of design maturity. Once transferred to
Australia, BAE Systems Maritime Australia progressively incorporate the Australian changes
into each design zone. Each design zone goes through a structured, formal engineering
approval process before being released for construction to commence.
3.
a. Seven.
b. Five.
c. No.
d. No.
e. All design zones are managed in accordance with the BAE Systems ‘zonal design’ process.
The zonal design process includes four review gates for each design zone.
f. The first design zone did not proceed past the fourth gate at its first review. A subsequent
review four weeks later was assessed as a proceed. The second design zone did not proceed
past the second gate at its first review. It was assessed as a proceed two weeks later. The
zonal review process has worked correctly in both circumstances in that the design was not
permitted to move to the next stage until sufficient design maturity was achieved.
4. The Hunter Class frigate project office currently employs 163 staff. BAE Systems Maritime
Australia currently employs 1324 staff. In addition to the directly employed staff, there are
additional workers employed across multiple companies in the supply chain and developing
the Australian elements of the combat system.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
Return to Index
Combat Systems
Group: Naval Shipbuilding and Sustainment
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Additional Estimates February 2024
PDR No: SB23-001064
Last updated: 23 January 2024
Hunter Class Frigates
Key witnesses: Sheryl Lutz
5. Yes.
a. The Department is aware that recruiting across a number of job families is highly
competitive in the current market. In particular, the Department is aware that engineers,
naval architects, program managers, logisticians, supply chain managers, heavy fabrication
operators, and production quality controllers are in high demand. The Department will
continue to work with BAE Systems Maritime Australia and other key suppliers to develop
enterprise-wide supply side strategies to help meet the growing workforce needs of industry
and mitigate workforce risks to schedule and cost.
Prepared By:
Cleared By:
Name: Commodore Scott Lockey
Name: Sheryl Lutz
Position: Director General Hunter Class Frigates
Position: First Assistant Secretary Major
Division: Major Surface Combatants and
Surface Combatants and Combat Systems
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Combat Systems
Group: Naval Shipbuilding and Sustainment
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Surface Ship Advisory Committee (SSAC)
Supplemental Review of the Hunter Class Frigate Program (SEA 5000)
Terms of Reference
Authorisation
1.
As provided for in the SSAC Terms of Reference (TOR), The Secretary of Defence and
the Chief of the Defence Force have commissioned the Surface Ship Advisory
Committee to conduct (in conjunction with their current quarterly review of all surface
ship programs), a supplemental Independent Review (the Review) focussed
specifically on certain aspects of the SEA5000 Hunter class frigate (HCF) program. Key
stakeholders include the Departments of Defence; Finance; and the Prime Minister
and Cabinet.
Purpose
2.
The purpose of these Terms of Reference is to specify the scope of the Review.
3.
The Review is to consider the current status of the HCF Program using information
from, and discussion with, representatives of the Defence program management
team, the Head Contractor (BAESMA) program management team and, as needed,
other first tier industry project participants (e.g. Saab Australia, LM Australia) to assess
progress of ship / mission system design and productionisation (D&P) work, contract
management, and evaluate the current projections on cost, schedule and scope. The
Review is also to explore emerging risks and suggest potential mitigations.
a. The SSAC will coordinate via the DepSec National Naval Shipbuilding and FAS
Ships during the conduct of this Review and the DepSec/FAS shall provide
direction to the Defence program management team and to the HCF industry
participants to support the SSAC with the information and engagement that
will be needed to facilitate the Review within the timing required (as
discussed in paragraph 14 below).
4.
For clarity, the purpose is not to review past decisions made by Government, nor to
make assessments of the suitability of the ship design or elements of its mission
system, but to use the SSAC’s knowledge of the program in assessing current progress
and its experience in identifying key risks that HCF Enterprise senior management
should be focussed on to help ensure success of the program going forward.
Context
5.
The future frigate program was approved by the then Government in 2015 to replace
the current fleet of ANZAC class frigates. The future frigate program is scoped to
deliver nine general-purpose frigates optimised for anti-submarine warfare. In 2018,
following a competitive evaluation process, the then Government selected the UK’s
Type 26 Global Combat Ship, modified to meet Australian requirements, as the
reference ship design for the HCF. The Government accepted at the time that the
HCF program was exposed to a number of high risks.
6.
The HCF program is a cornerstone program for continuous naval shipbuilding as
outlined in the
2016 Defence White Paper and the
2017 Naval Shipbuilding Plan and
Government has identified that one of the main objectives of the program is to
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Defence FOI 680/23/24
maximise Australian Industry Capability (AIC) and opportunities for Australian industry
content. The Head Contract sets a minimum Australian content of 58 per cent across
the entire HCF program. The current (D&P) contract has a requirement to achieve a
minimum of 54 per cent Australian content.
7.
The HCF program is a multi-billion dollar program. The total acquisition cost estimate
is 44 billion. The Government has approved an initial budget of $7 billion for the
design and productionisation contract (which covers design activity to incorporate
Australian requirements; productionisation of the design for the new shipyard at
Osborne in South Australia; prototyping of ship blocks at Osborne; and long-lead items
for the first three ships), initial facilities construction, purchase of Government
furnished equipment for the first three ships, and a range of science and technology
activities.
8.
On December 14, 2018, the then Government signed the Head Contract with
ASC Shipbuilding Pty Ltd, a wholly owned subsidiary of BAE Systems Australia Ltd.
ASC Shipbuilding now trades as BAE Systems Maritime Australia (BAESMA). Whilst
BAESMA is responsible for the design and production of the Hunter Class Frigates, the
Government is separately contracting for major aspects of the program (primarily the
majority of the HCF Combat System design, equipment and integration) and is
responsible for managing / delivering those aspects as Government Furnished [GF(x)].
9.
Cut steel on ship 1 (which is not yet contracted) was expected to occur by the end of
2022 with delivery anticipated by the end of 2029 and Initial Operating Capability in
2031. Cut steel has now slipped until no later than mid-2024 with delivery now
expected by the end of 2031 and IOC in 2033.
10.
To date, the HCF program has been the subject of a number of independent assurance
reviews, a review by Partners in Performance in November 2021, and is currently the
subject of an ANAO performance audit expected to be tabled in March 2023.
Objectives and Scope
11.
The broad objectives of this Review are to investigate the current program
management information on cost, schedule and performance of the HCF program
(given the delays experienced to date) and assess, using the SSAC’s knowledge and
experience, if the processes put in place and actions taken by Defence and BAE
Maritime Systems Australia to reset the program should be effective going forward.
Matters which may be considered by the Review include:
x the SSAC’s view on the current key risks to the program as identified in the Critical
Issues List (CIL) and visit reports previously provided by the SSAC under its TOR;
x the skills, techniques and systems being used to develop cost and schedule
estimates;
x the likelihood of achieving the three key milestones of preliminary design review
in July 2023, cut steel by mid-2024, and delivery of the ship 1 by the end of 2031;
and
x other factors / risks that the SSAC believe may be need further attention by HCF
Enterprise senior management.
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Defence FOI 680/23/24
12.
The Review is to make recommendations to improve the performance of the HCF
program and identify the risks to the future completion of the program with proposed
strategies to mitigate those risks.
Timing
13.
The Review is to report by December 2022 to enable its outcomes to be considered in
the Defence Strategic Review.
14.
To enable this timeline, the SSAC will provide a list of information requested from
Defence and Industry to support their Review.
a. By the end of September 2022, Defence and Industry participants will pull
that information together and provide it to the SSAC.
b. The SSAC will review the information provided and request meetings (via
vidcon or phone) as needed during the first 3 weeks of October.
c. During the last week of October and first week of November, the SSAC will
meet face to face with the participants during the SSAC’s normal quarterly
visit.
d. The SSAC (or some members thereof) may extend its quarterly visit further
into the month of November to allow for further engagement with the
participants.
e. During late November, early December 2022, the SSAC will provide the
Deliverable identified in paragraph 15 below and by the end of December,
the SSAC will provide the Deliverable identified in paragraph 16 below.
f. Further meetings with the SSAC as discussed in paragraph 17 below may be
conducted as needed in early 2023.
Deliverables
15.
The Review is to provide key stakeholders an out brief with a summary of key findings
and recommendations before the report is finalised. This is to include an opportunity
for stakeholders to provide feedback and further clarification for inclusion in the final
report.
16.
The Review is to provide a final report of findings and recommendations prepared in a
style and length consistent with previous reports provided by the SSAC. It is
recognised that the SSAC consists of only four (4) representatives that provide a highly
experienced, but part-time level of support to the Government as defined in their TOR
and there is no intent for the SSAC to obtain additional resources to conduct this
review. There is also no time/intent for the SSAC to travel to the UK where the Hunter
Class Design is being produced, nor to the US or other countries where major work on
the Combat System is being undertaken in order to assess those activities firsthand.
Instead, the SSAC will rely on the information provided by the Defence and Australian
industry project teams.
17.
The SSAC will meet with the leadership of the Defence Strategic Review team and/or
the key stakeholders as defined in paragraph 1 above as requested to discuss their
findings and recommendations in further detail.
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Mr Greg Moriarty
Secretary
Department of Defence
September 2022
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Naval Shipbuilding and Sustainment Infrastructure
Handling Note:
First Assistant Secretary Naval Shipbuilding and Sustainment Enterprise
Headquarters, Stacie Hall to lead on shipbuilding infrastructure in South Australia
and Western Australia.
Questions regarding nuclear-powered submarine infrastructure at Osborne,
South Australia should be referred to the Australian Submarine Agency.
Key Messages
The Government supports continuous naval shipbuilding through two principal naval
shipyards: Osborne in South Australia and Henderson in Western Australia.
South Australia
The construction of complex warships and submarines is centred at Osborne where the
Government has funded a purpose-built, vertically-integrated and digitally-enabled
shipyard. It currently supports the Hunter class frigate program.
Australia’s SSN-AUKUS submarines will be constructed at a new, purpose-built shipyard
at Osborne. Enabling works commenced in 2023 in Osborne North.
Over the forward estimates, the Government will invest at least $2 billion in
South Australian infrastructure to support the nuclear-powered submarine program.
Western Australia
The Government will invest up to $8 billion over the next decade to expand
HMAS Stirling with the infrastructure required for both visiting and rotational nuclear-
powered submarines, as well as for Australia’s own nuclear-powered submarines.
Talking Points
Henderson’s critical role in Australia’s naval shipbuilding and maintenance needs to
continue, but Government intervention is required to consolidate activities.
On 23 November 2023 the Government announced a new strategic partnership
between Defence and Austal Limited at Henderson shipyard. This partnership was
formed in response to the Defence Strategic Review recommendation that industry
consolidation options for the Henderson shipyard be examined as a matter of urgency.
This approach will streamline and consolidate naval shipbuilding projects to form a
continuum of work and encourage much-needed industry investment in infrastructure
and workforce at the Henderson shipyard.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
South Australia
Through Australian Naval Infrastructure, the Government has invested $558 million in a
state-of-the-art shipyard at Osborne South in support of continuous naval shipbuilding.
Australian Naval Infrastructure is working closely with the Australian Submarine Agency
to support its future infrastructure requirements, which includes planning for the
enabling works for the Nuclear Powered Submarine Construction Yard at Osborne.
On 10 November 2023, under the South Australian Government Cooperation
Agreement, the South Australia and the Australian Government reached agreement on
a land swap in Adelaide. The South Australian Government acquired Defence-owned
land at Keswick, Smithfield and Cultana. In return, Defence will acquire 60 hectares of
land at Osborne to accommodate the Nuclear Powered Submarine Construction Yard
and the Skills and Training Academy.
Western Australia
Over the next decade, up to $8 billion will be invested in infrastructure at HMAS Stirling
to support the nuclear-powered submarine program, which is forecast to create
around 3,000 direct jobs, including:
wharf upgrades;
operational maintenance, logistics and training facilities; and
opportunities for supporting infrastructure outside of HMAS Stirling.
On 15 March 2022 the former Government announced investment of up to $4.3 billion
in large vessel infrastructure at Henderson, Western Australia to support continuous
naval shipbuilding.
The Western Australian Government is working closely with Defence to make available
the required support, infrastructure and trained workforce. This will allow an increased
tempo of visits from allied submarines, enable their extended presence from 2027
under Submarine Rotational Force – West, and facilitate the homeporting of Australian
submarines from the 2030s.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN 171. WA Infrastructure, Senator the Hon Linda Reynolds (Liberal,
Western Australia) asked 14 written questions about Western Australian infrastructure.
2023-24 Budget Estimates: 30 and 31 May 2023
QoN 91. AUKUS readiness, Senator the Hon Linda Reynolds (Liberal, Western Australia)
asked for an update on Defence’s engagement with local stakeholders in the
development of naval shipbuilding capabilities at Henderson.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Inquiry into the management and assurance of integrity by consulting services:
23 March 2023
QoN 13. Consulting services, Senator Barbara Pocock (Greens, South Australia) asked if
any partners from the “Big 7” are appointed to any boards of sub-committees of
Defence.
Additional Estimates: 15 February 2023
QoN 63. Henderson Dry Dock Project, Senator the Hon Linda Reynolds (Liberal,
Western Australia) asked about funding and capital for the Henderson Dry Dock
Project.
QoN 55. Joint Defence and WA Government Henderson Task Force, Senator the Hon
Linda Reynolds (Liberal, Western Australia) asked why the Task Force has not been
included in the Strategic Review.
QoN 53. Joint Defence and WA Government Henderson Task Force, Senator the Hon
Linda Reynolds (Liberal, Western Australia) asked to be supplied the minutes of these
meetings or any information on what specific action is taken from these meetings.
QoN 54. Henderson and AMC Senator the Hon Linda Reynolds (Liberal,
Western Australia) asked if there are any other studies or plans on infrastructure
deficiencies or updates on Henderson and the Australian Marine Complex.
Supplementary Budget Estimates: 9 November 2022
QoN 13. Infrastructure Upgrades at the Henderson Precinct, Senator the Hon
Linda Reynolds (Liberal, Western Australia) asked for a list of spending under the
Western Australian Government’s $89 million in fast-tracked infrastructure projects in
the Henderson precinct. Senator Reynolds also requested a list of Defence’s planned
expenditure on Henderson precinct projects of $47 million in 2021-22, and $65 million
in 2022-23.
QoN 14. Taskforce reporting effects, Senator the Hon Linda Reynolds (Liberal, Western
Australia) asked about the Henderson task force, impacts to delivery timeframes, and
funding amounts and timings.
QoN 40. WA Naval Infrastructure, Senator the Hon Linda Reynolds (Liberal, Western
Australia) asked about Western Australian Naval Infrastructure and Defence’s
engagement with the Western Australian government.
QoN 62. WA Naval Infrastructure, Senator Claire Chandler (Liberal, Tasmania) asked
questions relating to the funding for the large vessel dry berth and Australian Naval
Infrastructure’s involvement in the project.
Supplementary Budget Estimates – Finance Portfolio
QoN 61 and QoN 62. Henderson Infrastructure, Senator the Hon Simon Birmingham
(Liberal, South Australia) asked Australian Naval Infrastructure about funding for large
ship infrastructure.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Freedom of Information (FOI) Requests
On 3 January 2023 an individual made a request seeking information regarding
Defence’s infrastructure spending at Osborne. D
Documents were released on 1 March
2023 as part of the release of the Senate Estimates briefing pack from November 2022.
Recent Ministerial Comments
On 22 November 2023 the Minister for Defence Industry announced the Government
is supporting defence industry jobs and strengthening national security with a new
$2 billion contract to maintain and sustain Australia’s naval fleet in Sydney.
On 29 September 2023 the Deputy Prime Minister and Minister for Defence Industry
issued a joint release that they had received the independent analysis of Navy’s surface
combatant fleet capability.
Relevant Media Reporting
On 14 December 2023 The Australian published an article by Ben Packham titled
Industry forced to wait for strategy in another Defence delay criticising the delays
within the AUKUS pact due to export control legislation between Australian firms and
the United States Defense Industry.
On 12 December 2023 The Australian published an article by Ben Packham titled
Women, migrants key to AUKUS workforce stating Australia is unprepared in
developing a workforce to support a sovereign fleet of nuclear powered submarines.
On 11 December 2023 The Canberra Times published an article by John Sandilands
titled Labor’s landmines which criticised expenditure on AUKUS in the face of other
national issues such as cost of living, housing affordability and climate change.
On 7 December 2023 Michael West Media published an article by Rex Patrick titled Join
our Team! AUKUS foreign expenditure sinkhole blows out to $12B … already which
criticised expenditure from the AUKUS agreement, notably the $4.7 billion currently
committed and the additional $3 billion to be committed.
On 6 December 2023 The Australian published an article by Philip Spedding titled WA
has a vital role in AUKUS security deal outlining the importance of developing
supporting workforce and infrastructure in WA for nuclear propelled submarines.
On 1 December 2023 The Canberra Times published an article by Karen Barlow, titled
Subs base call delay til 2030 in which the Deputy Prime Minister announced delays to
the decision for the location of the east-coast nuclear submarine base, which will not
be made until the end of the decade.
On 29 November 2023 The Canberra Times published an article by Kat Wong titled
Thousands of STEM spots to be funded in AUKUS push saying the government will
provide 4,000 Commonwealth-supported university placements across 16 Australian
universities to help build Australia's future nuclear submarine workforce.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
On 24 November 2023 The Western Australian published a report by Sean Smith titled
$1b deal steadies the ship for Austal. The Minister for Defence Industry announced
that Austral has been selected to construct the Army’s Landing Craft Medium and
Heavy vessels.
On 4 November 2023 The Daily Telegraph published a report by Danielle Gusmaroli
titled Marles commits subs to Adelaide stating the Deputy Prime Minister reaffirms
commitments to building nuclear submarines in Osborne.
On 10 November 2023 the ABC published an article titled SA and federal governments
reach land-swap deal for AUKUS submarines, new housing reporting that South
Australia and federal government has reached a land swap deal in Adelaide. South
Australia will be acquiring land at Keswick, Smithfield and Cultana. In return, Defence
will acquire 60 hectares of land at Osbourne
On 31 October 2023 The Guardian published a report by Paul Karp titled Plan to build
AUKUS submarines in Adelaide is ‘a fairytale’ and ‘pork barrelling’, Alexander Downer
says where Alexander Downer criticises the $368 billion to be spent on AUKUS over the
next decade, deeming the construction within Australia to be too expensive and
advocates for subcontracting to other countries.
On 18 October 2023 The Western Australian published an article by Josh Zimmerman
titled Paul Papalia casts doubt on future of $4.3b Henderson dry dock project labelling
it a ‘hollow announcement. Journalist Josh Zimmerman stated the Henderson dry dock
will not be going forward as the current government has not committed to a decision.
Division:
Naval Shipbuilding and Sustainment Group
PDR No:
SB23-001065
Prepared by:
Cleared by Group/Service Head:
Karan McKee
Jim McDowell
Assistant Secretary, Industry and
Deputy Secretary
Infrastructure
Naval Shipbuilding and Sustainment Group
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Date: 18 December 2023
Date 19 December 2023
Consultation:
Australian Submarine Agency
Date: 18 December 2023
Rear Admiral Matt Buckley CSC
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Cleared by DSR:
Major General Christopher Field
Date: 18 December 2023
Deputy DSR Task Force - ADF Integration
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Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Cleared by:
Date: 19 December 2023
Jim McDowell
Deputy Secretary
Naval Shipbuilding and Sustainment Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates 25 October 2023
Senator: Linda Reynolds
Portfolio Question reference number: 171
Type of question: Written, 2 November 2023
Question:
1.
Can the Department provide an update on the status of the $4½ billion dry dock
project at the Henderson maritime precinct and the current level of commitment from the
state and federal governments? If yes, please provide the details. If no, why not?
2.
When is the Rand Review on the Henderson precinct to be made public?
3.
In the October 25 hearing, Ms Hall stated “other capability options are also being
explored, including, potentially, a floating dock or ship lift capabilities.” What are each of
these options and the details of the size and capacities they will support? What capacity
would a ship lift at Henderson have?
4.
In the October 25 hearings, Mr McDowell stated: “Until we get a clearer view as to
the ASA's requirements and Henderson as well as Stirling—there is an assumption that there
will be some requirement at Henderson. Until we get the government's response to the IAT,
at the moment, all we can do is formulate a number of options to do that.” What are the
details of the number of options that are being formulated including size, capacity and times
frames?
5.
Can the Department outline the strategic importance of the Henderson maritime
precinct to Australia's national defence and shipbuilding industry?
6.
What is the Department's assessment of the potential consequences if the
Government does not move forward with the dry dock project?
7.
How does it impact Australia's sovereign capability in shipbuilding?
8.
Has the Department had recent discussions or negotiations with the Western
Australian state government regarding the dry dock project?
9.
If yes, please provide the details of these discussions?
10.
If no, why not?
11.
Can the Department provide information on any impediments or challenges that have
hindered progress on the dry dock project?
12.
What steps are being taken to overcome these obstacles?
13.
Can the department elaborate on the coordination and collaboration between the
Commonwealth, the Western Australian Government, and industry in developing a
comprehensive master plan for the Henderson defence precinct?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
14.
How many meetings between the Department of Defence and the Western Australian
Government have taken place so far and what were the dates of those meetings? Please
provide the agenda and minutes and any agreed action items from these meetings.
Answer:
1.
Defence and the Department of Finance (Finance) continue to work with the
Australian Naval Infrastructure (ANI) and the Western Australian Government in developing
options for large vessel infrastructure at Henderson for consideration by Government in
2024. This aligns with Government’s commitment to continuous naval shipbuilding and
requirements to support the nuclear powered submarine program, complementing
infrastructure developments at HMAS Stirling.
2.
This is a matter for Government.
3.
Defence and Finance continue to work with the ANI to identify a range of capability
options for large vessel infrastructure at Henderson.
4.
Refer to Question 3.
5.
Refer to point 10.27 from page 79 of the Defence Strategic Review.
6.
Defence is not able to comment on this matter.
7.
Defence is not able to comment on this matter.
8.
Defence and Western Australian Government agencies meet regularly to discuss and
progress a broad range of matters relevant to Australia’s national defence and shipbuilding
industry, including future shipbuilding and sustainment needs at the Henderson maritime
precinct.
9.
Refer to Question 8.
10.
Not applicable.
11.
No.
12.
Not applicable.
13.
Defence established a Western Australia Naval Infrastructure Coordination Group
(WANICG) to oversee the coordination of infrastructure options and activities in support of
surface ship sustainment, shipbuilding, and current and future submarine sustainment at
HMAS Stirling and the Henderson Precinct. Defence is also progressing industry consolidation
as recommended in the Defence Strategic Review. The WANICG is developing plans for
consolidated engagement activities with both the WA Government and industry in 2024.
14.
Defence cannot provide agenda and minutes.
2023-24 Budget Estimates: 30 and 31 May 2023
Senator Linda Reynolds
Question Number: 91
Date Question was tabled: 20 October 2023
Question
29.Has there been any collaboration or coordination with local industry stakeholders and
relevant defence industry associations in the planning and development of naval shipbuilding
capabilities at Henderson?
30.Are there any plans or initiatives in place to attract private sector investments and
partnerships to further develop naval shipbuilding capabilities at Henderson?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
31.How exactly is the Department of Defence ensuring transparency and effective
communication with stakeholders, including the Western Australian Government, industry
representatives, and local communities, throughout the planning and development process
of naval shipbuilding at Henderson?
32.Will the Western Australian Government be expected to co-invest in the planned works at
Henderson? If so, how much?
33. Please provide an update on the progress and status of the Joint Defence and WA
Government Henderson Task Force?
34.What specific discussions or actions have taken place since May 2022?
35.I refer to question No. 63 asked on 03 March 2023, in particular the response to part 1A.
Is the funding for a large vessel dry berth in Henderson Western Australia provided for the in
the Integrated Investment Program master sheet?
36.I refer to question No. 63 asked on 03 March 2023, in particular the response to part C
and D. What is the specific planned timeframe for delivering initial operating capability from
the "late 2020s"?
37.I refer to question No. 63 asked on 03 March 2023. Has the Department of Defence
communicated with the Western Australian Government about the delay in the final
investment decision on the Henderson dry dock?
38.When was the Western Australian Government informed of this delay?
39.Can you provide clarification on the identified and confirmed location at Henderson for
the Dry Dock?
40.What factors were considered in selecting this location, and what are the key advantages
of the chosen site?
41.How have the outcomes of the Defence Strategic Review impact the planning and
acquisition pathway for the Henderson dry berth project and the overall delivery of the
nuclear-powered submarine program?
42.Has the Department of Defence conducted any risk assessments or contingency planning
to address potential delays or challenges in the implementation of the Henderson dry berth
project?
43.How are these risks being managed and mitigated?
44.Can you provide a detailed breakdown of the funding sources for the Henderson dry berth
project, including the proportion of equity, debt, and internally generated cash flows
expected to be utilized?
45.How will these funding arrangements impact the financial sustainability and long-term
viability of the project?
46.Is the Western Australian Government expected to invest in facility upgrades including the
Dry Berth? If so, how much?
Answer
Defence continues to engage with the Western Australian (WA) Government and industry
stakeholders to progress infrastructure requirements at Henderson including consideration
of leveraging private sector capital where these opportunities present themselves.
Refurbishment of the Captain Cook Graving Dock is scheduled for the late 2020s/early 2030s
as part of the Garden Island Redevelopment Project. Defence will provide advice to
Government on its recommended options in due course.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
The Joint Defence/WA Government Henderson Taskforce continues to meet to discuss and
progress the future development of the Henderson Maritime Precinct. The progress arising
from the Task Force includes:
a) updates on planning and development at the Henderson Precinct;
b) planning for fit-for-purpose naval shipbuilding and sustainment infrastructure to support
the growing need; and
c) facilitating inter-governmental matters.
A Working Group comprised of Commonwealth and state government representatives,
established under the Henderson Taskforce, identifies and develops mitigation measures and
manages risks for future shipbuilding infrastructure at Henderson.
In terms of a location for a large vessel infrastructure, in 2020 the WA Government master
planning activity produced the Australian Marine Complex Strategic Infrastructure and Land
Use Plan (SILUP) which identified the need for additional and improved wharves, ship transfer
capability, new infrastructure, facilities and improvements in security management. Defence
is continuing to work in collaboration with the WA Government and ANI on the final
capability solution.
Inquiry into the management and assurance of integrity by consulting services 23 March
2023
Senator Barbara Pocock
Question Number: 13
Date question was tabled: 6 April 2023
Question
The following question relates to the below consulting/accounting firms that will be referred
to as the “Big 7.” If answering in the affirmative to any of the below questions, specify which
of the Big 7 firms you are referring to.
• Deloitte
• EY
• KPMG
• PwC
• McKinsey
• Boston Consulting
• Accenture
Are any former partners of each of the Big 7 appointed to any boards or sub-committees of
Defence?
Answer
Defence does not keep records of former employers in its HR system (PMKeyS) and is
therefore unable to run a search under these parameters. Defence believes that surveying
the entire workforce to obtain this information would unreasonably divert the resources of
the Department.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
2023 Supplementary Estimates 15 February 2023
Senator the Hon Linda Reynolds
Question Number: 53
Date question was tabled: 4 April 2023
Question
I understand the Joint Defence and WA Government Henderson Task Force meets quarterly
and is updated by the WA Government routinely on its planning for Henderson
infrastructure.
Can you please supply the minutes of these meetings or any information on what specific
action is taken from these meetings?
Answer
The Joint Department of Defence / Western Australian Government Henderson Task Force
meets regularly to discuss and progress the future development of the Henderson Maritime
Precinct. The actions arising from the Task Force include:
a) Updates on planning and development at the Henderson Precinct;
b) Planning for fit-for-purpose naval shipbuilding and sustainment infrastructure to
support the growing needs; and
c) Facilitating inter-governmental matters.
2023 Supplementary Estimates 15 February 2023
Senator the Hon Linda Reynolds
Question Number: 54
Date question was tabled: 17 May 2023
Question
We have the:
• 2019-20 WA Government AMC Strategic Infrastructure and Land Use Plan
• 2020 Defence Henderson Shipbuilding Sustainment Infrastructure Review
• 2021 WA State Government position paper on the AMC
• 2021-2022 Integrated Infrastructure Program study- Funded by Defence with the WA Govt
Are there any other studies or plans on infrastructure deficiencies or updates on Henderson
and the AMC?
Answer
The Department of Defence provided $9 million in funding to the Western Australian
Government to undertake studies, including the studies identified, within an Integrated
Infrastructure Program. These studies were led by the Western Australian Government in
collaboration with Defence. Additional studies undertaken within this program include
Integrated Transport Program study, Maritime and Advanced Collaboration and Technology
Hub study, Alternative Energies study, Southern Breakwaters Condition study and the
Northern Harbour Demand study. These studies will be used to inform any further
development of Henderson and the AMC.
The Department of Defence continues to consult with the Western Australian Government
on future naval shipbuilding and sustainment needs at Henderson.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
2023 Supplementary Estimates 15 February 2023
Senator the Hon Linda Reynolds
Question Number: 63
Date question was tabled: 17 May 2023
Question
1. In Defence’s response to Questions on Notice about funding for a large vessel dry berth at
Henderson, you noted, “The capital costs of the infrastructure will be funded through ANI,
using equity injected by Government (not the Department of Defence) or through ANI’s
ability to raise capital from the market.” Previously, equity funding from the Commonwealth
was used for construction and acquisition at Osborne.
A) Is the $4.3 billion allocated by the previous government for the Henderson dry berth
project currently in the IIP Broadsheet?
B) Why has the Government decided that ANI should raise its own capital for this project?
C) Has ANI been consulted on its ability to raise capital from the market to fund the project in
its entirety or partly?
D) Have Defence expended any funding in relation to this project since the October 2022
Budget? E.g. on feasibility studies?
E) Has Defence contracted any consultancies to provide advice on this project? Can you
provide details?
2. In the March 2022 Budget, construction for the project was scheduled to commence in
2023, initial operating capability was 2028 and full operational capability in 2030. At Senate
Estimates in November the Department of Defence said that the final investment decision for
the project had been delayed until mid-2023. Can Defence please provide an updated
timeline for delivery of this project?
A) Defence’s response to QON62: “Subject to Government consideration of the final
capability solution, initial operational capability is anticipated in 2028 with full operational
capability in the early 2030s.” How will Defence make up the time after more than a year in
delays since the original announcement, and no decision due until mid-2023 at the very
earliest?
B) During Senate Estimates in April 2022, Senator Wong asked whether at some point in the
next five years there would be a period in which Australia does not have a dry dock available.
Rear Admiral Malcolm responded: “That is possible.” Given Labor have now delayed this
project by a year, with an investment decision still months away. Can you confirm that is
capability gap is now a certainty?
C) What is the current funding and scheduled for the upgrades to the Captain Cook Graving
Dock?
D) What is the plan for the period where Henderson is not operational, and Captain Cook is
not operational?
E) Has a location at Henderson been identified and confirmed for the Dry Dock?
3. Please list all of Defence’s engagement with the WA Government on the project since May
2022?
A) When did the Government inform the Government of Western Australia about the delay
in a final investment decision?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Group: Naval Shipbuilding and Sustainment
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Answer
1. A) The former Government made an announcement on 15 March 2022 to “invest up to
$4.3 billion to deliver Western Australia’s first large vessel dry berth. Funding for the project
was not allocated by the former Government at that time.
B) The former Government selected ANI to design, construct, deliver and maintain the
planned infrastructure. Infrastructure delivered by ANI is typically funded using a mix of
equity, debt and internally generated cash flows.
C) Defence is working closely with ANI on options for Government consideration in 2023.
D) Yes.
E) Aurecon Australia has been engaged to develop functional requirements for large vessel
infrastructure at Henderson.
2. Defence is currently working to deliver initial operating capability from late 2020s, subject
to Government consideration and taking into account the outcomes of the Defence Strategic
Review and the optimal pathway for acquisition of nuclear-powered submarines.
A) Refer to answer 2.
B) Refer to answer 2.
C and D) The Captain Cook Graving Dock refurbishment is tentatively scheduled to occur in
the late 2020s as part of the Garden Island Redevelopment Project. To support this, Defence
will progress a detailed business case.
E) Yes.
3. The Department co-chairs the Joint Defence and WA Government Henderson Task Force
that meets quarterly.
A) Refer to answer 3.
October 2022 Budget Estimates – Finance Portfolio
Senator the Hon Simon Birmingham
Question Number: FO61
Date question was tabled: 23 December 2022
Question
1. Can ANI provide an update on the work that they have undertaken to date on the $4.3
billion large vessel dry berth at Henderson in Western Australia?
2. In ANI’s 2021-22 Annual Report (p29) it is stated that “ANI is working with the
Commonwealth and the WA Government to progress this project, noting it is still in early
planning stages.’ Can you provide an update on engagement with both levels of
Government?
3. Has ANI been provided any additional grant or equity funding to commence work on this
project? If yes, please provide details.
4. Has ANI been briefed by Finance and/or Defence on a change of decision for the project’s
delivery or funding? If yes, please provide details.
5. In April 2022 ANI CEO Andrew Seaton gave the following evidence, “ANI has now been
down selected, and we’ve been formally advised that we will be involved now in the design
and ultimately the build of that infrastructure.”
a. Does this remain ANI’s understanding of their role in the project?
b. Is it ANI’s understanding that the $4.3 billion allocated in the March 2022 Budget would be
provided to ANI as an equity injection to fund the design and build of the project?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
c. If no, what is ANI’s current understanding of their involvement and funding expectations
for the project?
6. Has a location for the project at Henderson been selected?
a. Please provide details?
7. At Senate Estimates the Department of Defence said that the final investment decision for
the project had been delayed until mid-2023. Was ANI made aware of this delay?
8. In the March Budget, construction for the project was scheduled to commence in 2023,
initial operating capability was 2028 and full operational capability in 2030. How will the
delay in the final investment decision impact these timelines?
9. Can ANI confirm if there will be a period in the next five to 10 years where Australia will
not have an operational dry dock? If so, when and for how long?
10. Have any of the Ministers in the Defence Portfolio met with ANI to discuss the project? If
so when and who?
Answer
1. ANI has been assisting Defence’s large vessel dry berth (LVDB) project team by undertaking
a peer review of the integrated infrastructure program (IIP) studies undertaken by the
Department of Defence jointly with the WA Government, which considered various options
for the development. In addition, ANI has been familiarising itself with the Henderson
precinct, developing an understanding of environmental and planning approval
requirements, and planning to undertake environmental background monitoring to inform a
future environmental impact assessment.
2. ANI participates in a Steering Group established jointly by the Department of Defence and
Department of Finance to oversee the project, and in a working group that reports back to
that Steering Group. ANI participates in meetings of the joint WA Government and
Commonwealth Task Force for the LVDB project, and a working group that reports back to
that Task Force. ANI regularly meets with the Defence LVDB project team to report back on
findings of its peer review activities and to take instruction on additional review tasks to help
inform future Government decisions.
3. No.
4. ANI has been advised that the outcomes of the Defence Strategic Review (DSR) will need to
be considered as part of future Government decisions on the project. In April 2022, ANI’s
understanding was that there was an intention to approach Government for project
approvals at the end of 2022, but that has now been postponed to mid-2023 after the DSR is
complete. ANI has not been advised of any change as to funding. ANI’s understanding has
always been that although the ANI model has been chosen for delivery of the infrastructure,
that funding may come from a variety of sources.
5. a. Yes.
b. No.
c. The Department of Finance, Department of Defence and ANI are working together to
consider various funding options for the proposed infrastructure investment.
6. The precise location has not yet been determined.
7. Yes.
8. The project timelines will be dependent on the infrastructure capability options chosen.
9. No. That is a question for the Department of Defence.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
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Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
10. ANI has participated in three meetings with Ministers at the Osborne Naval Shipyard to
discuss ANI’s key activities generally, including the Henderson LVDB project. On 6 July 2022,
ANI’s Chairman and Chief Executive Officer (CEO) met with the Deputy Prime Minister, the
Hon Richard Marles MP. On 10 August 2022, ANI’s CEO met with the Assistant Minister for
Defence, the Hon Matt Thistlethwaite MP. On 17 August 2022, ANI’s CEO met with the
Minister for Defence Industry, the Hon Pat Conroy MP.
October 2022 Budget Estimates – Finance Portfolio
Senator the Hon Simon Birmingham
Question Number: FO62
Date question was tabled: 23 December 2022
Question
Can the Department confirm if there has been a change in the funding amount or
arrangements (including delivery mechanism) for the $4.3 billion large-vessel dry berth at
Henderson, WA as published in the March 2022 Budget?
a. If yes, please explain why this decision was not reflected in Budget Paper 2 of the October
Budget?
2. During Senate Estimates Defence stated that the $4.3 billion for the large vessel dry berth
at Henderson, WA was “not part of their Budget.” The March 2022 Budget measure (BP2,
p71) states “the cost of this measure will be met from within the existing resource of the
Department of Defence.”
a. Can the Department explain how the funding is not in the Defence Budget but is being
funded by Defence resources?
3. In relation to the $4.3 billion funding decision, the Government told the April 2022
Estimates hearings that “the Government has determined that a government-owned and
government-led agency through Australian Naval Infrastructure (ANI) is the optimal way to
provide for the secure, sensitive delivery of critical naval infrastructure for the future.”
a. When did the Government reverse the decision to use ANI to design and construct the
project?
b. As a Shareholder Department has Finance provided any advice on alternative delivery
mechanisms for the project instead of equity through ANI?
4. Has Finance and/or the Finance Minister met with ANI on the project? If yes, when and
with you?
5. Defence Deputy Secretary Tony Dalton referred to the funding being “pre-decisional by
government”.
a. Can the Department explain this phrase given a decision was published and announced in
the March Budget?
6. Deputy Secretary Tony Dalton also stated at November 2022 Estimates the funding was for
lease arrangements. However, ANI CEO Andrew Seaton gave evidence in April 2022 under
questioning from Senator Penny Wong that the $4.3 billion was for design and build of the
large-vessel dry berth.
a. Please explain when the purpose of the funding was changed and why?
b. How will the funding be used for lease arrangements?
c. Has Finance informed ANI of the change in purpose of the funding?
d. How will the project be constructed if not with funding from the Commonwealth?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Answer
1. The previous Government announced in March 2022 that up to $4.3 billion would be
invested in a large vessel dry berth at Henderson. The announcement was based on early
rough-order-of-magnitude cost, prior to detailed technical investigations and engagement
with Australian Naval Infrastructure (ANI) on constructability of the infrastructure.
Subsequent work has revealed that initial cost estimates were insufficient to deliver the
capability contemplated. The Department of Finance, the Department of Defence and
Australian Naval Infrastructure (ANI) are working collectively together to identify a range of
capability solutions. The current Government has not taken any further decisions in relation
to this proposed infrastructure investment, which is being considered in the context of the
Defence Strategic Review.
2. Should Government decide to fund the investment through ANI, capital costs of the
infrastructure will be funded through ANI (not the Department of Defence). The model would
allow shipbuilders to subsequently lease the infrastructure from ANI with the cost of the
lease set by ANI to generate a reasonable return on investment.
3a. The proposed infrastructure investment is being considered by the Government in the
context of the Defence Strategic Review.
3b. N/A.
4. The Department of Finance has regular discussions with ANI. On 14 July 2022, the Minister
for Finance, Senator the Hon Katy Gallagher attended an ANI-led tour of the Australian
Marine Complex, Henderson, and its Common User Facilities. A senior official from the
Department of Finance attended.
5. Refer to Q3a above.
6. Refer to Q2 above.
October 2022 Budget Estimates 9 November 2022
Senator the Hon Linda Reynolds
Question Number: 13
Date question was tabled: 21 December 2022
Question
Senator REYNOLDS: Just before you do, the current review that will report at the end of the
year to the task force also includes the dry dock proposal and the funding that's associated
with that. Is that correct?
Rear Adm. Malcolm: No. What I would note is that we are working together with WA to look
at what the optimal ways are that we could deliver the precinct. The announcement that was
made by the former government—
Senator REYNOLDS: When you say 'the precinct', are you talking about the entire Henderson
precinct or a defence precinct?
Rear Adm. Malcolm: The Henderson precinct. For instance, we've worked very closely with
WA on a number of their fast-tracked infrastructure projects. So that's $89 million that the
state government has actually put into that, including wharf upgrades, vessel transfer
pathways and transport improvements in the area.
Senator REYNOLDS: Could you, on notice, give me a list of all that's funded under that $89
million in terms of works, and what the schedule is for those works?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Rear Adm. Malcolm: Yes. I will seek that from the WA task force.
Mr Fankhauser: I could add to that. Up until 30 June of this year, we had spent $47 million
directly from the defence budget on projects in the Henderson precinct. This financial year
we're expecting to add a further $65 million to that expenditure. That's primarily to support
future capabilities—the offshore patrol vessel, and—
Senator REYNOLDS: Could I ask for that on notice? A list of how that $47 million for last
financial year was spent, plus the upcoming $65 million and projects and time lines for those
as well?
Mr Fankhauser: Certainly.
Answer
Western Australian Government Henderson Projects
Project Name
Description
Schedule
Vessel
Design and construction of an
The vessel transfer path is currently
Transfer Path upgraded vessel transfer path
operational, having achieved practical
Project
between the floating dock and completion in early 2022
the shipbuilding and
sustainment facilities
Wharf
Design and construction of an
Construction of the wharf extension
Extension and extension to the existing
infrastructure forecast for completion
Finger Wharf
wharf 1 and the design of a
end November 2022 and the power
Design
new finger wharf
services forecast for completion end
Project
March 2023. The finger wharf design
completed in early 2022
Intersection
Upgrade of three road
At the most recent Joint Henderson Task
Upgrades
intersections to increase road
Force meeting on 30 November 2022,
Project
capacity and safety, reduce
the WA Government confirmed practical
vehicle congestion and
completion had occurred for the
improve access
Intersection Upgrades Project at
Henderson with landscaping still
scheduled for completion by the end of
June 2023 (to avoid die-back over
summer).
Commercial
New shipbuilding facility in the Practical completion forecast for end
Shipbuilding
northern harbour to activate
June 2023
Hall Project
underutilised land and support
commercial shipbuilding and
sustainment
Department of Defence Henderson Projects
Defence is delivering the Henderson Capability Centre which commenced construction in July
2021 and is forecast for completion in mid-2023. In 2021-22, a total of $47.4 million was
spent on civil works, in ground services and building construction. In 2022-23, the forecast
spend is $65.2 million on external and internal building fit-out works.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
Phone:
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Phone:
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
October 2022 Budget Estimates 9 November 2022
Senator the Hon Linda Reynolds
Question Number: 14
Date question was tabled: 16 December 2022
Question
Senator REYNOLDS: Please take this on notice. With the review, with the task force reporting
options at the end of the year as you've just described, what does that then push the time
frame out to fully deliver the new works over the next decade or so at Henderson? What sort
of quantum of funding are you now looking at? What is the funding profile for all of that work
in totality? Thank you.
Answer
The former Government announced on 15 March 2022 that it intended to invest up to $4.3
billion to develop large ship infrastructure at Henderson to support continuous naval
shipbuilding in the west. Australian Naval Infrastructure will be the Government’s delivery
partner for this program.
Defence continues to work with Australian Naval Infrastructure and the Western Australian
Government to develop options for large vessel infrastructure at Henderson.
Defence is working with all relevant stakeholders to ensure that options under development
would achieve initial operating capability by 2028, as initially anticipated.
Defence will provide advice to Government by in 2023 on capability options, taking into
account the outcomes of the Defence Strategic Review and the optimal pathway for
acquisition of nuclear-powered submarines. The funding profile will be determined following
consideration by Government of the capability options.
October 2022 Budget Estimates 9 November 2022
Senator the Hon Linda Reynolds
Question Number: 40
Date question was tabled: 21 December 2022
Question
With reference to the reporting in the West Australian, 6 November 2022, of the WA
government’s submission to the Defence Strategic Review (DSR) proposing a plan to enhance
WA naval infrastructure:
1. Has the Department of Defence (Department) been briefed on the proposed investment
and development of WA naval port infrastructure to support Australia’s national defence,
and under AUKUS, to make it possible for US and UK naval vessels to dock in WA?
2. Have the proposals been provisioned or otherwise contemplated in the Budget in respect
of the Department? If yes, please provide details.
3. Has the Department been contacted by WA Defence Industry Minister Paul Papalia, or any
other representative of the WA Government, to discuss or participate in briefings on the
proposals?
If yes, has the Department been briefed and how has the Department responded?
4. What plans are being considered, and pursued, in relation to these proposals?
5. What additional costs and resourcing have been considered to implement these
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
Phone:
s47E(d)
/
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Phone:
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Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
proposals?
6. What briefings/reports have been provided by, or given to, the Department in relation to
the capacity of US or UK naval vessels to use current or enhanced WA port facilities (including
HMAS Stirling, or the proposed large vessel dry berth at Henderson, WA)?
Answer
1. Yes.
2. Defence is continuing to work in collaboration with the Western Australian Government
and Australian Naval Infrastructure to develop options for large vessel infrastructure at
Henderson, Western Australia.
3. The Department co-chairs the Joint Defence and WA Government Henderson Task Force
that meets quarterly. The WA Government routinely updates the task force on its planning
for Henderson infrastructure. There has not been any specific interaction between the
Department, WA Government Ministers or the task force on the WA Government’s
submission to the Defence Strategic Review.
4. Refer to answer 2.
5. Refer to answer 2.
6. The Nuclear-Powered Submarine Taskforce continues to investigate what is required to
maintain, support and sustain nuclear-powered submarines in Western Australia,
including at HMAS Stirling and Henderson. Understanding these requirements will also
enable Australia to support the more frequent presence of United Kingdom and United
States nuclear-powered submarines in the region.
October 2022 Budget Estimates 9 November 2022
Senator Claire Chandler
Question Number: 62
Date question was tabled: 16 December 2022
Question
1. During Senate Estimates Defence stated that the $4.3 billion for the large vessel dry berth
at Henderson, WA was “not part of their Budget.”
a. The March 2022 Budget measure (BP2, p71) states “the cost of this measure will be met
from within the existing resource of the Department of Defence.”
• Has Defence transferred all or part of the funding to the Contingency Reserve, another
Department or Government Business Enterprise?
• If not, then how can the funding no longer be considered as part of the Defence Budget but
be funded from Defence resources?
2. Can the Department provide the funding profile for the project, noting that evidence was
provided at Senate Estimates that it is currently provisioned post 2030?
3. Former Finance Minister Senator Simon Birmingham stated in relation to the $4.3 billion
funding decision during the April 2022 Estimates hearings that “the Government has
determined that a government-owned and government-led agency through Australian Naval
Infrastructure (ANI) is the optimal way to provide for the secure, sensitive delivery of critical
naval infrastructure for the future.”
a. When did the Government reverse the decision to use ANI to design and construct the
project?
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
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Additional Estimates: February 2024
PDR No: SB23-001065
Last updated: 5 January 2024
Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
b. When was ANI informed? And by who?
c. Why did the Government make no announcement of this decision?
4. When did the Government inform the Government of Western Australia about the delay in
a final investment decision and a change in the delivery mechanism?
5. Have any of the Ministers in the Defence Portfolio met with ANI to discuss the project? If
yes, when and who?
6. Have any of the Ministers in the Defence Portfolio met with anyone in the WA Government
to discuss the project? If yes, when and who?
7. In the March Budget, construction for the project was scheduled to commence in 2023,
initial operating capability was 2028 and full operational capability in 2030. At Senate
Estimates the Department of Defence said that the final investment decision for the project
had been delayed until mid-2023. Can Defence please provide an updated timeline for
delivery of this project?
8. Can Defence confirm if there will be a period in the next five to 10 years where Australia
will not have an operational dry dock? If so, when and for how long? How has the delay in
delivery of this project impact this capability gap?
9. In Senate Estimates Defence Deputy Secretary Tony Dalton referred to the funding being
“pre-decisional by government”.
a. Can the Department explain this phrase given a decision was published and announced in
the March Budget?
b. ANI CEO Andrew Seaton gave evidence in April 2022 to Estimates that Mr Dalton
personally advised him on 11 March 2022 that ANI had been down selected to build and own
the infrastructure. If the project was ‘pre-decisional’ why did Mr Dalton inform ANI of this?
10. Deputy Secretary Tony Dalton also stated at Estimates the funding was for lease
arrangements. However, ANI CEO Andrew Seaton gave evidence in April 2022 under
questioning from Senator Penny Wong that the $4.3 billion was for the design and build of
the large-vessel dry berth.
a. Please explain when the purpose of the funding was changed and why?
b. How will the funding be used for lease arrangements?
c. Has Defence informed ANI of the change in purpose of the funding?
d. How will the project be constructed if not with funding from the Commonwealth?
Answer
1. The capital costs of the infrastructure will be funded through ANI, using equity injected by
Government (not the Department of Defence) or through ANI’s ability to raise capital from
the market. Shipbuilders will subsequently lease the infrastructure from ANI. The cost of
the lease will be set by ANI to generate a reasonable return on investment. The
shipbuilders recover the cost of the lease through shipbuilding contracts with Defence.
Defence has budget provisions in future years to cover these costs inside the shipbuilding
contracts.
2. No. The Defence provision covers the expected additional costs to future shipbuilding
contracts through which shipbuilders will recover the lease costs associated with using the
infrastructure.
The funding profile for the infrastructure build program is a matter for ANI once
Government approves the final capability solution.
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
Phone:
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Phone:
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Key witness: Stacie Hall
3. The Government has not reversed the decision to use ANI to design, construct, deliver and
maintain the planned infrastructure.
4. Defence is working towards an initial operational capability in 2028, this has not changed
from what the Western Australian Government has been advised.
5. ANI routinely meets with portfolio Ministers to discuss a range of matters.
6. Defence Portfolio Ministers routinely discuss a range of matters relating to the Defence
portfolio with Western Australian Government Ministers and officials.
7. Subject to Government consideration of the final capability solution, an initial operational
capability is anticipated in 2028 with full operational capability in the early 2030s.
8. Refurbishment of the Captain Cook Graving Dock in New South Wales is expected to occur
later this decade. A range of mitigations, including potentially sequencing infrastructure
works at Henderson, will be considered in managing this risk.
9. a) The final capability solution has not been considered by Government, hence it remains
‘pre-decisional.’ Defence will provide advice to Government in 2023 on capability options,
taking into account the outcomes of the Defence Strategic Review and the optimal
pathway for acquisition of nuclear-submarines.
b) ANI was selected by the former Government in March 2022 as the delivery partner for
the large vessel infrastructure at Henderson.
10. There has been no change in the purpose of the funding.
October 2022 Budget Estimates 9 November 2022
Senator the Hon Simon Birmingham
Question Number: 68
Date question was tabled: 16 December 2022
Question
1. During Senate Estimates Defence stated that the $4.3 billion for the large vessel dry berth
at Henderson, WA was “not part of their Budget.”
a. The March 2022 Budget measure (BP2, p71) states “the cost of this measure will be met
from within the existing resource of the Department of Defence.”
• Has Defence transferred all or part of the funding to the Contingency Reserve, another
Department or Government Business Enterprise?
• If not, then how can the funding no longer be considered as part of the Defence Budget but
be funded from Defence resources?
2. Can the Department provide the funding profile for the project, noting that evidence was
provided at Senate Estimates that it is currently provisioned post 2030?
3. Former Finance Minister Senator Simon Birmingham stated in relation to the $4.3 billion
funding decision during the April 2022 Estimates hearings that “the Government has
determined that a government-owned and government-led agency through Australian Naval
Infrastructure (ANI) is the optimal way to provide for the secure, sensitive delivery of critical
naval infrastructure for the future.”
a. When did the Government reverse the decision to use ANI to design and construct the
project?
b. When was ANI informed? And by who?
c. Why did the Government make no announcement of this decision?
4. When did the Government inform the Government of Western Australia about the delay in
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
a final investment decision and a change in the delivery mechanism?
5. Have any of the Ministers in the Defence Portfolio met with ANI to discuss the project? If
yes, when and who?
6. Have any of the Ministers in the Defence Portfolio met with anyone in the WA Government
to discuss the project? If yes, when and who?
7. In the March Budget, construction for the project was scheduled to commence in 2023,
initial operating capability was 2028 and full operational capability in 2030. At Senate
Estimates the Department of Defence said that the final investment decision for the project
had been delayed until mid-2023. Can Defence please provide an updated timeline for
delivery of this project?
8. Can Defence confirm if there will be a period in the next five to 10 years where Australia
will not have an operational dry dock? If so, when and for how long? How has the delay in
delivery of this project impact this capability gap?
9. Defence Deputy Secretary Tony Dalton referred to the funding being “pre-decisional by
government”.
a. Can the Department explain this phrase given a decision was published and announced in
the March Budget?
b. ANI CEO Andrew Seaton gave evidence in April 2022 to Estimates that Mr Dalton
personally advised him on 11 March 2022 that ANI had been down selected to build and own
the infrastructure. If the project was ‘pre-decisional’ why did Mr Dalton inform ANI of this?
10. Deputy Secretary Tony Dalton also stated at Estimates the funding was for lease
arrangements. However, ANI CEO Andrew Seaton gave evidence in April 2022 under
questioning from Senator Penny Wong that the $4.3 billion was for design and build of the
large-vessel dry berth.
a. Please explain when the purpose of the funding was changed and why?
b. How will the funding be used for lease arrangements?
c. Has Defence informed ANI of the change in purpose of the funding?
d. How will the project be constructed if not with funding from the Commonwealth?
Answer
Refer to Question No. 62
Prepared By:
Cleared By:
Name: Karan McKee
Name: Jim McDowell
Position: Assistant Secretary, Industry and Infrastructure
Position: Deputy Secretary
Return to Index
Division: Naval Shipbuilding and Sustainment Enterprise
Group: Naval Shipbuilding and Sustainment
Phone:
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PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Naval Shipbuilding Expert Advisory Panel Administration
Handling Note:
Secretary of Defence, Greg Moriarty, to lead.
Associate Secretary, Matt Yannopoulos, to support.
Key Messages
The Naval Shipbuilding Expert Advisory Panel (the Panel) provides independent,
expert advice to Cabinet on the performance of the naval shipbuilding enterprise,
including acquisition of nuclear-powered submarines and other issues relevant to
naval acquisition and sustainment.
In February 2021, the former Prime Minister appointed the Panel’s six members for a
period of three years.
Remuneration for the Panel reflects the appointees’ seniority and experience, and
recognises that they are providing advice on one of the nation’s largest and most
strategically important endeavours.
The Panel engages regularly with industry, across Government and internally with
Defence to inform their advice to Government.
The Panel is not a decision-making body and its advice in support of Government
decision making is confidential.
The Panel replaces and builds on the work of the Naval Shipbuilding Advisory Board,
which operated from January 2017 to December 2020 with members appointed by
the former Minister for Defence.
Talking Points
What advice has the Naval Shipbuilding Expert Advisory Panel provided to the Government?
The advice provided by the Panel to support the Government decision making is
presented to Cabinet and therefore confidential.
What are the general costs related to the Naval Shipbuilding Expert Advisory Panel?
The contracts for the Panel members are published on AusTender. The total ‘not to
exceed amount’ is $5.79 million (GST inclusive) over the life of the contracts, including
Panel services and reimbursable costs.
Expenditure against the six contracts from 1 February 2021 to 30 November 2023 for
services and reimbursable costs was approximately $4.2 million (GST exclusive).
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
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Phone:
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PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
What activities do the Naval Shipbuilding Expert Advisory Panel members undertake?
In 2022 the Panel conducted five visits in Australia to Adelaide, Canberra, Perth and
Sydney in February, May, July, October, and December. They met with Defence
Portfolio Ministers, defence contractors and senior government representatives.
The Panel conducted five visits in Australia in 2023 in February, April, July, October and
December. The next visit is scheduled for February 2024.
Former Naval Shipbuilding Advisory Board members and current Panel members have
provided evidence at Senate Estimates on five occasions, with the last appearance
occurring in June 2021.
Does the dominance of the Naval Shipbuilding Expert Advisory Panel by United States citizens
reflect a United States bias?
Membership of the Panel focusses on the expertise of individuals, not their nationality.
Of the Panel’s six current appointments, four are United States nationals, one is British
and one is Australian.
Panel members have a variety of relevant experience in naval ship design and
construction, shipbuilding, infrastructure, complex procurement and national-level
project management.
Why have you engaged former United States Navy and United States Department of Defense
personnel to advise on shipbuilding and submarines?
The United States is an important ally to Australia and has personnel with extensive
experience in shipbuilding and submarine programs.
This experience is leveraged by including former United States government officials and
retired senior United States Navy officers in forums such as the Panel.
Relevant foreign government approvals are in place to support these engagements.
Why do you pay United States advisors and other Naval Shipbuilding Expert Advisory Panel
members so much, and is it value for money?
Remuneration for these individuals is appropriate and reflects their seniority and
experience.
Are Naval Shipbuilding Expert Advisory Panel members advising and/or connected with the
United States shipbuilding industry and does this represent a conflict of interest?
Appropriate security, confidentiality and conflict of interest arrangements are in place
and reviewed regularly.
Relevant foreign government arrangements are also in place to support these
engagements.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Background
Transition from the Naval Shipbuilding Advisory Board to the Naval Shipbuilding Expert
Advisory Panel
The former Minister for Defence Industry appointed the Naval Shipbuilding Advisory
Board in December 2016 for an initial three-year tenure to provide independent expert
advice directly to Ministers, including members of the National Security Committee of
Cabinet.
In December 2019 the Prime Minister agreed to a 12-month extension of the Board’s
term.
In November 2020 the former Government agreed a reconstituted Panel would replace
the Board.
Total expenditure against Naval Shipbuilding Advisory Board member contracts for
services and reimbursable costs between January 2017 and December 2020 was
approximately $6 million (GST inclusive).
Naval Shipbuilding Expert Advisory Panel Administration
Secretariat functions and costs associated with supporting the operation of the Panel
are managed by Defence.
Individual consultancy rates are reflective of the level of expertise each member brings
to their role on the Panel. Each member has been engaged through an individual
consultancy contract.
Reporting of Panel member contracts on AusTender reflects the maximum contract
value and includes services and reimbursable costs.
Naval Shipbuilding Expert Advisory Panel Membership
The Panel can comprise up to seven eminent individuals with significant experience in
naval ship design, construction, complex procurement and national-level project
management.
The Panel currently has six members appointed – five men and one woman. By
nationality, there are four United States citizens, and one each from Australia and the
United Kingdom.
The current Panel members are:
-
Chair, Vice Admiral William Hilarides, United States Navy (Ret’d), former
Commander, United States Naval Sea Systems Command (United States citizen);
-
Rear Admiral Thomas Eccles, United States Navy (Ret’d), Chief Executive Officer,
Trident Maritime Systems (United States citizen);
-
Mr Howard Fireman, former Senior Vice President and Chief Digital Officer,
American Bureau of Shipping (United States citizen);
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
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PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
-
Ms Gloria Valdez, former Deputy Assistant Secretary of the US Navy for
shipbuilding (United States citizen);
-
Mr Murray Easton, former Chair of Babcock Facilities Management (British
citizen); and
-
Mr Ron Finlay AM, Principal and Chief Executive of Finlay Consulting (Australian
citizen).
Advice to the Government
The Panel’s advice to the Government is in the form of After Action Reports.
The Panel’s advice supports the identification of emerging challenges, risks and
opportunities, and helps inform decisions required to achieve capability outcomes.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 15 February 2023
QoN 9, ADM Consultants, Senator Jordon Steele-John (Greens, Western Australia)
asked what Naval Shipbuilding Expert Advisory Panel members had been paid “up to
this point”.
Budget Estimates: 9 November 2022
QoN 39, Paul Sullivan contract, Senator Jordon Steele-John (Greens, Western
Australia) asked to be provided with the contract value of Vice Admiral Paul Sullivan,
United States Navy (Ret’d) covering his time as a member of the Naval Shipbuilding
Advisory Board.
QoN 41, former US government officials, Senator Jordon Steele-John (Greens,
Western Australia), asked for information on what advice panel members were
providing to Defence and the contract values for Naval Shipbuilding Expert Advisory
Panel members.
Handling Note: QoN 41, updated and tabled on 18 April 2023, corrected the value of
contract values for Vice Admiral William Hilarides, United States Navy (Ret’d).
QoN 46, US retired Admirals’ declaration of other interests, Senator David
Shoebridge (Greens, New South Wales), asked whether any retired United States
Admirals advising the Government had declared any interests in companies that
build nuclear powered submarines.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
On 25 October 2023 the Minister for Defence Industry issued a media release that an
independent assurance activity on the Collins Class submarine fleet would report to
Government in Quarter 2 2024.
Relevant Media Reporting
Recent media coverage of the Naval Shipbuilding Expert Advisory Panel has focused on
the appointment of Gloria Valdez to lead the Collins Life of Type Extension
Independent Assurance activity. Previous media reporting on the Naval Shipbuilding
Expert Advisory Panel focused almost exclusively on the remuneration of Panel
members and potential conflicts of interest.
On 25 October 2023 on Online @AuManufacturing Peter Roberts reported “The
independent assurance activity seeks to ensure the life-of-type extension is delivered in
the most effective and efficient manner. The independent assurance activity is being
led by Gloria Valdez, a member of the Naval Shipbuilding Expert Advisory Panel”.
On 17 August 2023 in The Australian, Ben Packham and David Ross reported that
Defence “has torn up a $1.8m contract with a senior Deloitte adviser to Australia's
nuclear submarine program amid concerns over the person's links to foreign military
interests”. Packham and Ross also reported that Vice Admiral William Hilarides, United
States Navy (Ret’d), “has been paid almost $2.5m for serving on Australian shipbuilding
advisory panels since 2016”.
On 27 April 2023 on ABC news Andrew Greene reported that several retired US military
officers (including Vice Admiral William Hilarides, United States Navy (Ret’d)) were
contracted by Defence as consultants and commented on their remuneration.
Division:
Associate Secretary Group
PDR No:
SB23-001066
Prepared by:
Cleared by Division Head:
s47E(d)
Matt Yannopoulos PSM
A/Director Strategic Engagement and
Associate Secretary
Communication
Department of Defence
Naval Shipbuilding Expert Advisory Panel
Secretariat, Associate Secretary Group
Mob: s22
Ph: s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 14 December 2023
Date: 18 December 2023
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
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Phone:
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PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Cleared by CFO:
Tracey Mackrow
Date: 14 December 2023
Assistant Secretary Finance-Enabling Groups
Cleared by:
Matt Yannopoulos PSM
Date: 18 December 2023
Associate Secretary
Department of Defence
Questions on notice referred to within the brief:
2022-23 Supplementary Budget estimates 15 February 2023
Senator Jordon Steele-John
Question Number: 9
Date question was tabled: 21 April 2023
Question
Senator STEELE-JOHN: In the answers you provided on notice in relation to Rear Admiral
Thomas Eccles, Vice Admiral William Hilarides and Admiral Kirkland Donald, the combined
total of the payments made to those three individuals was some $5.3 million. Can you
confirm that was the answer you gave to us?
Mr Dalton: The response we gave you in that question on notice is the maximum amount
they could be paid if they worked all of the days they were allowed to work under their
contract, so their individual payments will be a total less than that sum.
Senator STEELE-JOHN: How much have they been paid to this point?
Mr Dalton: I'll take that on notice, Senator.
Senator STEELE-JOHN: In that context, then, I'm very keen to know how much Admiral
Richardson has been paid by the department to this point. What is the value of his contract—
those 100 days over two years?
Vice Adm. Mead: I'll take that on notice, Senator.
Senator STEELE-JOHN: And what's the duration of the contract that former Admiral
Richardson is under?
Vice Adm. Mead: I believe it's approximately two to three years, but I'll take that on notice.
Senator STEELE-JOHN: Given it is a structure to exceed no more than a certain period of time
over a certain number of days, if you break it down, how much are we paying these
individuals per hour for their advice?
Vice Adm. Mead: I'd have to take that on notice, Senator.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
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Phone:
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PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Answer
Admiral John Richardson USN (Retd) has provided advice to Department since
November 2022. Admiral Richardson has been paid $33,476.64 (excluding GST) as at
31 December 2022. Admiral Richardson is engaged on a 12-month contract. The contract
includes two 12-month extension options at the Commonwealth’s discretion.
Admiral Kirkland Donald USN (Retd) provided advice to the Department from December 2017
to 2022. Admiral Donald was paid $297,319.97 (excluding GST).
Vice Admiral William Hilarides USN (Retd) has provided advice to the Government since 2016.
Vice Admiral Hilarides has been paid $1,582,430.82 (including GST) as at 31 December 2022.
Rear Admiral Thomas Eccles USN (Retd) has provided advice to the Government since 2016. Rear
Admiral Eccles has been paid $699,118.68 (including GST) as at 31 December 2022.
Individual payment rates for Admiral Richardson, Admiral Donald, Vice Admiral Hilarides and Rear
Admiral Eccles are commercially sensitive.
2022-23 October Budget estimates 9 November 2022
Senator Jordon Steele-John
Question Number: 39
Date question was tabled: 16 December 2022
Question
Senator STEELE-JOHN: Thank you. I'll move to advice that the government has received
around the partnership and the acquisition of the capability. My understanding is that
Paul Sullivan, a retired vice admiral who, for a time, was hired as a submarine consultant after
working at an American national security lab that conducts sensitive research projects for the
US Navy, was employed by the Department under a contract valued at about $414,000 over a
period of four years. Would you be able to confirm that? That's Vice Admiral Paul E Sullivan.
Vice Adm. Mead: I'll hand that question over to Mr Tony Dalton. I have not directly employed
former vice admiral Paul Sullivan. He is working in the US. We do receive advice, and we have
sought advice from our partners over the past 12 months, as you can imagine, Senator, but
I've not actually employed Admiral Paul Sullivan.
Mr Dalton: I can confirm that Admiral Sullivan was a member of the Naval Shipbuilding
Advisory Board. I can take on notice to get the periods during which he was a member of that
board.
Senator STEELE-JOHN: And the figure of $414,228 for his employment over the four-year
period?
Mr Dalton: I'll take that on notice.
Senator STEELE-JOHN: Thank you. These are figures in the public domain, so, if you would be
able to come back to the committee before the end of the day with that information, that'd
be ideal. Would you be able to do that?
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
s22
Phone:
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Additional Estimates February 2024
PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Answer
Vice Admiral Paul Sullivan USN (ret) was engaged as a member of the Naval Shipbuilding
Advisory Board (NSAB) from 8 December 2016 until 30 December 2020.
The total not to exceed value of his contract (including services and reimbursables) over this
period was $550,242.00 (including GST).
Vice Admiral Sullivan resigned from the NSAB on 5 March 2020.
2022-23 October Budget estimates 9 November 2022
Senator Jordon Steele-John
Question Number: 41
Date question was tabled: 31 January 2023
Question
Senator STEELE-JOHN: Thank you. Mr Dalton, Rear Admiral David Gale was on active duty
before he submitted his paperwork to the Pentagon to be able to come and work for
Australia. I believe he has been employed by the Department to the tune of US$222,000. I'm
wondering whether you can confirm his employment status with the Department. Mr Dalton:
I'm not familiar with that particular case, but I will take it on notice.
Senator STEELE-JOHN: It's Rear Admiral David Gale. He was a consultant, and I believe is still a
consultant, on the Future Frigate program. Then we've got a Mr Thomas Eccles, a former rear
admiral of the United States who retired in 2013 and has served, I think, for the last five years
or so as a consultant. What role does the former rear admiral serve with the Department?
Mr Dalton: Admiral Eccles was one of the founding members of the Naval Shipbuilding
Advisory Board, and his role has continued under the new Naval Shipbuilding Expert Advisory
Panel.
Senator STEELE-JOHN: Thank you. Finally, there is Mr William Hilarides, a former vice-admiral
who, I think, is currently in the role of member of the Australian Naval Shipbuilding Advisory
Board.
Mr Dalton: I can confirm that Admiral Hilarides is a foundation member of the Naval
Shipbuilding Advisory Board and he now chairs the Naval Shipbuilding Expert Advisory Panel.
Senator STEELE-JOHN: Again, the value of the contracts that we have had with—
Mr Moriarty: If I could, Admiral Hilarides has on a couple of occasions provided evidence to
this committee.
Senator STEELE-JOHN: Yes, I am aware of that. If you can do that, it would be fantastic.
Finally, in relation to former admiral Donald Kirkland, he was a member of the Australian
Submarine Advisory Committee?
Mr Dalton: I can confirm that Admiral Kirkland was a member of the Australian Submarine
Advisory Committee. He is no longer serving in that capacity.
Senator STEELE-JOHN: No, he is not. He was found to be—it was kind of made public that he
was also acting at the time as chairman of the Huntington Ingalls Industries group, since 2020
I believe.
Mr Dalton: We were aware of his other roles; he had declared that. He wasn't involved in
providing advice on aspects that touched on Huntington.
Senator STEELE-JOHN: He has stepped back from that position, as of April, because of a
potential conflict of interest.
Mr Dalton: From the Submarine Advisory Committee?
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
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Phone:
s47E(d)
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PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Senator STEELE-JOHN: Yes.
Mr Dalton: Yes.
Senator STEELE-JOHN: Because of a potential conflict of interest.
Mr Dalton: With the expansion of the submarine program to include a nuclear powered
submarine program in which Huntington Ingalls would have an interest. I will just reinforce, in
his capacity as a member of the Submarine Advisory Committee he did not provide advice on
nuclear powered submarines.
Senator STEELE-JOHN: I believe his contract was worth about US$255,000, but can you take
that on notice for me, as well.
Mr Dalton: Yes.
Senator STEELE-JOHN: Finally, can you give us an idea of whether there are any former
members of the Navy currently advising Defence in relation to the AUKUS negotiations, other
than the individuals I have listed?
Mr Dalton: I'm probably not best placed to talk about who is providing advice in relation to
AUKUS, but I can certainly advise you about the members of the Naval Shipbuilding Expert
Advisory Panel.
Senator STEELE-JOHN: Yes, you could, or someone else at the table.
Mr Moriarty: Senator, we will get you a list of all former members of the US Navy who are
providing advice to Defence across any program.
Answer
Rear Admiral David Gale USN (Retd) provided advice to the Department over the period
September 2016 to October 2018 in relation to the Hunter class frigate program and
continuous naval shipbuilding.
Rear Admiral Thomas Eccles USN (Retd) has provided advice to Government since 2016
under a number of contracts. The total not to exceed value of Admiral Eccles’ contracts
(including services and reimbursables) for advice through the Naval Shipbuilding Advisory
Board and Naval Shipbuilding Expert Advisory Panel over this period is $1,214,105.75
(including GST).
Vice Admiral William Hilarides USN (Retd) has provided advice to Government since 2016
under a number of contracts. The total not to exceed value of Admiral Hilarides’ contracts
(including services and reimbursables) for advice through the Naval Shipbuilding Advisory
Board and Naval Shipbuilding Expert Advisory Panel over this period is $2,437,298.56
(including GST).
Admiral Kirkland Donald USN (Retd) provided advice to the Department over the period
December 2017 to April 2022 in relation to the Collins and Attack class submarine programs.
The total not to exceed value of Admiral Donald’s contracts (including services and
reimbursables) for advice through the Submarine Advisory Committee over this period was
$2,219,351.98 (excluding GST). Admiral Donald resigned with two years remaining on his final
contract.
Former United States Navy officers currently providing advice to the Department:
Name
Advisory Capacity
Rear Admiral Thomas ECCLES
Naval Shipbuilding Expert Advisory Panel
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
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Additional Estimates February 2024
PDR No: SB23-001066
Last updated: 14 December 2023
Naval Shipbuilding Expert Advisory Panel Administration
Key witnesses: Greg Moriarty; Matt Yannopoulos PSM
Vice Admiral William
Naval Shipbuilding Expert Advisory Panel
HILARIDES
Captain Vernon HUTTON
Development of nuclear mindset and supporting infrastructure
and facilities.
Captain Kevin JONES
Development of the Nuclear Stewardship Framework.
Captain Matt KOSNAR
Provide advice on nuclear-powered submarine shipyards and
infrastructure.
Admiral John RICHARDSON
Specialist advice on nuclear stewardship, workforce, and
technical matters.
Commander Andy STEERE
Provide advice on nuclear-powered submarine shipyards and
infrastructure.
Captain Bryan STILL
Provide advice on nuclear-powered submarine shipyards and
infrastructure.
2022-23 October Budget estimates 9 November 2022
Senator David Shoebridge
Question Number: 46
Date question was tabled: 16 December 2022
Question
Senator SHOEBRIDGE: Have any other of these retired US admirals had an interest in
companies that build nuclear-powered submarines?
Mr Dalton: Not to my knowledge.
Senator SHOEBRIDGE: You say 'not to your knowledge'?
Mr Dalton: Yes, not to my knowledge.
Senator SHOEBRIDGE: Do you say, sitting there, that you have full knowledge of their
disclosures?
Mr Dalton: I have not personally seen their declarations.
Senator SHOEBRIDGE: Would you take it on notice as to whether or not at any point they
have an interest in any company that builds nuclear-powered submarines?
Mr Dalton: We will take that on notice.
Answer
Vice Admiral William Hilarides and Rear Admiral Thomas Eccles have not declared any
interest in companies that build nuclear-powered submarines.
Vice Admiral Paul Sullivan, Rear Admiral Stephen Johnson, and Rear Admiral David Gale did
not declare any interest in companies that build nuclear-powered submarines.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Matt Yannopoulos PSM
Return to Index
Position: Acting Director
Position: Associate Secretary
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat
Group / Service: Associate Secretary Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
MRH90 Taipan
Handling Note:
Chief of Army, Lieutenant General Simon Stuart, to lead on MRH90 incidents and
Army’s utility helicopter capability.
Head Joint Aviation Systems Division, Major General Jeremy King, to lead on .MRH90
disposal and gifting to Ukraine.
Key Messages
On 22 March 2023 an Australian Army MRH90 Taipan helicopter ditched into Jervis
Bay, New South Wales while conducting water insertion and extraction training with
Special Forces.
On the evening of 28 July 2023 in the vicinity of Lindeman Island, Queensland, an
Australian Army MRH90 helicopter impacted into deep water during a night training
activity as part of Exercise TALISMAN SABRE 2023.
The Defence Flight Safety Bureau is investigating both incidents. The investigations
are ongoing and are expected to take up to 12 months to deliver findings.
On 29 September 2023, the Government announced that the MRH90 fleet would not
return to flying operations.
Defence is focussed on an accelerated introduction into service of the UH-60M Black
Hawk helicopter to replace the MRH90 capability.
Talking Points
The MRH90 Taipan is being withdrawn from service in line with the End of Service
Strategy.
The first three ADF UH-60M Black Hawks arrived in August 2023 and underwent
inspections and assurance activities before first flight operations commenced in
September 2023.
Australia continues to receive extraordinary levels of support from the United States
Government and Army to deliver the Black Hawk capability.
Army will continue to operate its expanded fleet of CH-47F Chinook cargo helicopters
and its legacy fleet of Tiger armed reconnaissance helicopters. Navy will also continue
to operate its growing fleet of MH-60R Seahawk helicopters.
Defence is leasing fixed and rotary wing aircraft to provide further options for Army
aviation during the capability transition.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
If asked: Why is Australia not gifting MRH90 Taipans to Ukraine?
Australia does not support gifting of the MRH90 Taipan to Ukraine due to the
complexity of the platform and longstanding, well-documented availability issues.
The MRH90 Taipan was managed as a project of concern since 2011 and was unable to
meet Defence’s capability, availability and affordability requirements.
Please refer further questions on this matter to Major General Jeremy King, Head Joint
Aviation Systems Division.
If pressed: How much would it cost to return the helicopters to flying condition?
Disassembly of Australia’s MRH90 Taipans commenced in October 2023.
Since that time, the helicopters have been subject to extensive disassembly and no
aircraft are in flying condition.
The costs, time and technical resources needed to return these aircraft to a fully
operational state would be significant.
Please refer further questions on this matter to Major General Jeremy King, Head Joint
Aviation Systems Division.
If pressed: Why did Defence resume flying the MRH90 following the incident at Jervis Bay on
22 March 2023?
MRH90 Taipan flying operations were suspended immediately following the ditching
incident at Jervis Bay on 22 March 2023.
Flying operations resumed in April 2023 after extensive risk analysis and the
implementation of additional risk mitigation controls.
Defence is confident it understood the issues that contributed to this incident.
The decision to return the MRH90 to flying operations was based on technical advice
that the aircraft remained safe to fly. This was supported by the Original Equipment
Manufacturer of the aircraft and the engines.
If pressed: Why did Government decide that the MRH90 fleet will not return to flying
operations following the incident at Lindeman Island on 28 July 2023?
The MRH90 fleet would not have returned to flying operations until the safety
investigation had sufficiently progressed to understand what may have contributed to
the incident.
The investigation is ongoing and could take 12 months to complete.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
If pressed: What is the status of the recovery operation?
Recovery operations for the MRH90 Taipan were coordinated under Joint Task
Force 1116, which ceased operations on 30 October 2023.
Search and recovery efforts involved hundreds of ADF personnel, international military
and civilian agencies, with all practical wreckage and remnants from the MRH90 Taipan
recovered to inform ongoing aviation and coronial investigations.
If pressed: What investigations are being conducted into the MRH90 incidents?
Jervis Bay Incident - 22 March 2023:
An Aviation Safety Investigation is being conducted by the Defence Flight Safety
Bureau, with the final report due to be delivered by end of April 2024.
Lindeman Island Incident - 28 July 2023:
An Aviation Safety Investigation is being conducted by the Defence Flight Safety
Bureau, with the final report currently due to be delivered by end of July 2024.
The Inspector General of the ADF Inquiry Directions for the incident were signed
on 31 October 2023 and the inquiry has commenced.
Defence is also supporting the ongoing investigations by both the Queensland
Coroner and Comcare, which are ongoing.
If pressed: What is the status of the investigations?
The Defence Flight Safety Bureau is responsible for investigating all military aircraft
accidents.
The investigations are ongoing and expected to take up to 12 months to complete.
The purpose of these investigations is to determine what happened from an aviation
safety perspective and make recommendations that reduce the probability of
reoccurrence.
Defence is committed to a thorough investigation into both incidents.
If pressed: What were the costs for MRH90?
The cost to procure the MRH90 was $3.66 billion.
The cost of operating the MRH90 was high and unsustainable.
The cost of operating the MRH90 for FY 2022-23 was $58,020.65 per hour. This is
an increase from FY 2021-22 where operating costs were $48,752.50 per hour.
The total sustainment cost as at 30 October 2023 was $2.469 billion.
If pressed: What options has Defence considered to mitigate impacts to capability?
As the MRH90 will not return to flying operations, Defence considered several
capability bridging options to address the utility helicopter capability gap.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Options that offer the most effective means to mitigate the utility helicopter capability
gap include further acceleration of Black Hawk deliveries, increased international and
domestic helicopter training, and increased commercial aircraft supplementation.
If pressed: What is the current delivery schedule for the UH-60M Black Hawk fleet?
LAND 4507 Phase 1 MRH Rapid Replacement is acquiring 40 x UH-60M Black Hawk
aircraft with role and mission equipment through a Foreign Military Sales case with the
United States Army.
The first three aircraft were delivered in August 2023 with the remaining aircraft to be
delivered throughout the decade.
Australia continues to receive extraordinary levels of support from the United States
Government and Army to deliver the Black Hawk capability.
On 1 November 2023, the United States Secretary of Defense announced that the
United States would support Australia’s request that Black Hawk deliveries be
accelerated.
If pressed: What support has Army Aviation provided during the high-risk weather season?
Army’s CH-47F Chinook capability has provided critical support during the December
2023 to January 2024 period, conducting 36 missions and flying approximately 90 hours
in response to Tropical Cyclone Jasper.
This support included the evacuation of 382 civilian personnel from Wujal Wujal, the
movement of emergency services personnel and delivery of vital equipment from the
Red Cross, telecom repair parts and emergency medical supplies.
If pressed: On the workforce impact from the MRH90 early withdrawal.
The industry partner that supported the MRH90 Taipan was Airbus Australia Pacific.
Defence has developed a proactive plan to support the skilled workforce transition
from the MRH90 Taipan to Army’s current and future fleet of helicopters.
Defence is working with Airbus Australia Pacific, and other key industry partners that
support Army Aviation, to identify follow-on opportunities for the skilled MRH90 Taipan
industry workforce to retain their skills and experience.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
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Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 17, HMSD Airworthiness Standards, Senator David Shoebridge (Greens,
New South Wales) asked questions related to systemic problems with the helmet-
mounted sight display, the TopOwl image intensifier and the forward-looking infrared
system for the Taipan helicopters.
QoN No. 18, Risk of Terrain Collision with Heads Up Display (HUD), Senator
David Shoebridge (Greens, New South Wales) asked questions related to the risk of
collision with terrain when aircraft are using HUD and flying low, with poor illumination
and without a visual horizon.
QoN No. 19, Helmet-Mounted Sight and Display (HMSD) configuration 5.1, Senator
David Fawcett (Liberal Party, South Australia) asked questions related to whether the
configuration 5.1 of the TopOwl HMSD was found deficient, particularly in off-axis use.
QoN No. 21, Reports/Briefings on the Taipan platform, Senator Malcolm Roberts
(One Nation, QLD) asked for a list, including the dates and titles, of every report or
briefing provided to Defence or created internally raising issues with the Taipan
platform.
QoN No. 28, Treated Risks – Configuration 5.1 and Thermal Imager, Senator
David Fawcett (Liberal Party, South Australia) asked questions relating to what
treatments were applied to software configuration 5.1 and thermal imager and its
mode of use.
QoN No. 77, Grounding of the MRH90 Taipan, Senator Jacqui Lambie
(Jacqui Lambie Network, Tasmania) asked questions relating to the grounding of the
MRH90 Taipan and what it means for the capability assessment and management of
the platform.
QoN No. 111, Black Hawk, Senator Simon Birmingham (Liberal Party, South Australia)
asked questions related to Black Hawk helicopters, the numbers received, the
operations they will conduct, where they will be based and what they will be used for.
QoN No. 172, Army Aviation Equipment, Senator David Shoebridge (Greens, New South
Wales) asked who in Army Aviation provided the assurance that equipment was able to
be used and what the assurance was.
Freedom of Information (FOI) Requests
On 24 August 2023 a media outlet sought access under Freedom of Information to
documentation relating to Airworthiness directives for the MRH90 fleet. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
On 10 August 2023 an individual sought access under Freedom of Information to
documentation in relation to incident and safety reports for the MRH90. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
On 10 August 2023 an individual sought access under Freedom of Information to
documentation in relation to MRH90 engine failure in 2010. A
Access to the documents
was denied, with a decision sent to the applicant on 1 December 2023.
On 10 August 2023 an individual sought access under Freedom of Information to
documentation in relation to a MRH90 tail rotor issue in 2019. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
On 9 August 2023 an individual sought access under Freedom of Information to
documentation in relation to incident and safety reports for the MRH90. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
On 9 August 2023 a media outlet sought access under Freedom of Information to
documentation relating to the MRH90 incident in March 2023. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
On 8 August 2023 an individual sought access under Freedom of Information to
documentation relating to the MRH90 incident in March 2023. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
On 4 August 2023 a media outlet sought access under Freedom of Information to
documentation relating to the MRH90 incident in March 2023. A
Access to the
documents was denied, with a decision sent to the applicant on 1 December 2023.
Recent Ministerial Comments
On 16 January 2024, the Minister for Defence Industry responded to questions on the
disposal of the MRH90 fleet, referencing their replacement by the UH-60M Black
Hawks, during a press conference to announce updates to the ADF’s long range fires
capabilities.
On 31 October 2023 the Deputy Prime Minister and US Defence Secretary Lloyd Austin
announced the accelerated delivery of Blackhawk helicopters to Australia.
On 29 September 2023 the Deputy Prime Minister announced the ADF’s MRH90 Taipan
helicopters will not return to flying operations before their planned withdrawal date of
December 2024.
On 4 August 2023 the Deputy Prime Minister responded to questions about the
MRH90 helicopter crash during Exercise Talisman Sabre 2023 in an interview on the
Today Show.
On 31 July 2023 the Deputy Prime Minister gave a press conference at Parliament
House to update on the MRH90 Talisman Sabre 2023 incident.
On 30 July 2023 the Deputy Prime Minister gave a joint press conference with the Chief
of the Defence Force in Townsville, to update on the MRH90 Talisman Sabre 2023
incident.
On 29 July 2023 the Deputy Prime Minister gave a joint press conference with the Chief
of the Defence Force and Talisman Sabre 2023 Exercise Director, to advise of the
MRH90 incident which occurred during Exercise Talisman Sabre 2023.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Relevant Media Reporting
Australian media has reported extensively on:
two incidents involving the MRH90 – one near Lindeman Island during Exercise
Talisman Sabre (July 2023) and one at Jervis Bay (March 2023);
Government’s 29 September 2023 announcement that the MRH90 would not
return to flying operations; and
Acquisition of the UH-60M Black Hawk Utility Helicopter, to replace the
MRH90.
On 1 December 2023, Australian Defence Magazine published an article providing an
update on ADF major projects, including the acquisition of UH-60M Black Hawks.
On 1 November 2023 The Financial Review published an article reporting that the
Deputy Prime Minister and US Defence Secretary Lloyd Austin had confirmed the
accelerated delivery of Blackhawk helicopters following top-level talks in Washington
DC.
Division:
Army
PDR No:
SB23-001067
Prepared by:
Cleared by Division Head:
Brigadier David Hafner
Major General Richard Vagg
Deputy Commander
Head Land Capability
Aviation Command
Mob:
s22
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Date: 14 December 2023
Date: 31 January 2024
Consultation: Rotary, Aerospace and
Surveillance Systems Division
Date: 30 November 2023
Major General Jeremy King
Ph: s47E(d)
Head Joint Aviation Systems Division
Cleared by Deputy Secretary:
Lieutenant General Simon Stuart
Date: 19 December 2023
Chief of Army
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Questions on notice referred to within the brief:
Supplementary Budget Estimates: 25 October 2023
Senator David Shoebridge
Question Number: 17
Date question was tabled: Not yet tabled.
Question
Senator David Shoebridge: Army Aviation had been in receipt of a series of reports identifying
systemic problems with the helmet-mounted sight display, the TopOwl image intensifier and
the forward-looking infrared system for the Taipan helicopters—a series of concerns raised in
reports from 2020 onwards. That's right, isn't it, Major General Jobson?
Major Gen. Stephen Jobson: There are many reports and there are many processes in place
in the Army Aviation enterprise consisting of a range of organisations to bring into service
equipment to be operated in our aircraft.
Senator David Shoebridge: Of course there are a range of reports, but when you get a report,
a formal report, from the Army Aviation Test and Evaluation Section that says the helmet-
mounted sight display for the Taipan helicopter was a substantial risk of multiple deaths due
to controlled flight into terrain and that the display of ambiguous aircraft attitude in the
helmet-mounted sight display was an unacceptable risk to flight safety, I would have thought
that would stick in your mind. And that's a report you received.
Senator David Shoebridge: The Army Aviation Test and Evaluation Section are the experts and
the specialists tasked with doing these evaluations, aren't they?
Lt Gen. Simon Stuart: They are part of the system, and you're correct, in terms of them
bringing a level of expertise.
Senator David Shoebridge: They found that the heads-up display, which I'll use instead of
HMSD, did not meet airworthiness standards. Indeed, they found that the symbology tested
was observed to be incongruous with the primary flight display, creating mixed messages to
and confusions for pilots, in direct breach of Federal Aviation Administration requirements.
They found that, didn't they?
Lt Gen. Simon Stuart: I'd have to take that on notice, in terms of exactly what you've read
there, but the characterisation was correct. There was an issue with the symbology. That led
to an upgrade from its original configuration. The brief history of that, of course, is that that
test and evaluation advice was accepted. It led to a further evaluation for both Army and
Navy aviation. It was tested against those standards and has led to an improvement and
development of that HMSD.
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator David Shoebridge
Question Number: 18
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Date question was tabled: Not yet tabled.
Question
Senator David Shoebridge: Obviously, the risk of collision with terrain with a heads-up display
is greatest when aircraft are flying low, with poor illumination, without a visual horizon.
That's when the risk is greatest. They were the circumstances in which the initial test found
this was most dangerous, wasn't it?
Lt Gen. Simon Stuart: I would have to take that on notice to make sure that the response I'm
providing for you takes into consideration all the matters that you've just—
Senator David Shoebridge: Flying low, without a visual horizon, with poor illumination—that's
when the risks identified in that first report are greatest, if you're relying on the heads-up
display.
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator David Fawcett
Question Number: 19
Date question was tabled: Not yet tabled.
Question
Senator David Fawcett: General Stuart, I wanted to confirm the evidence, which I think you
just repeated then, that configuration 5.1 of the TopOwl HMSD—which is the subject of the
eights report, which Senator Shoebridge has referred to—was found deficient, particularly in
off-axis use. Your evidence was that it was subsequently upgraded, if I heard you correctly. Is
your evidence that there has been a subsequent software load to 5.1.
Lt Gen. Simon Stuart: I'll have to take that on notice and make sure we provide you with
accurate information concerning the software upgrades.
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator Malcolm Roberts
Question Number: 21
Date question was tabled: Not yet tabled.
Question
Senator Roberts: On notice, could you please provide me with a list including the dates and
titles of every report or briefing provided to Defence or created internally raising issues with
the Taipan platform.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Lt Gen. Simon Stuart: We'll take that on notice.
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator David Fawcett
Question Number: 28
Date question was tabled: Not yet tabled.
Question
Senator David Fawcett: I have two questions that I'd like you to take on notice. General
Stuart, you made the comment that risks were treated. I'd like you to detail for us what
treatments were applied to, particularly, software configuration 5.1. I know there were some
in the operation evaluation, but I'm not aware of those being followed through. I'd like to
understand that, and I'd like to understand the OEM's position on the thermal imager and its
mode of use.
Lt Gen. Simon Stuart: We'll take both of those questions on notice.
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator Jacqui Lambie
Question Number: 77
Date question was tabled: Not yet tabled
Question
Senator Jacqui Lambie asked the Minister for Defence, upon notice, on 3 November 2023:
1. Have the Taipans been grounded?
2. If not, what does that mean for the capability assessment and how will the Taipans be
managed?
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator Simon Birmingham
Question Number: 111
Date question was tabled: Not yet tabled.
Question
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
1. Can you confirm the number of Black Hawk helicopters currently available to the Army?
2. Where are these helicopters currently based, and what are they being used for?
3. What impact does only having that number of helicopters available mean for Army’s
capacity to:
a.
conduct amphibious operations;
b.
move troops by air around the battlefield;
c.
maintain the currency of its pilots;
d.
conduct special forces operations such as hostage recovery; and
e.
provide any assistance in the coming bushfire season which looks like it will be very
severe if not catastrophic.
4. Does the current situation constitute a ‘capability gap’?
5. What is Defence’s plan to mitigate the grave risk of not having a battlefield helicopter
capability?
6. At what level, whether Ministerial, Secretary, CDF or Chief of Army, is leadership being
applied to resolving the lack of capability?
7. When was the Department, and the Minister, informed of the acceleration of Black Hawks
to Australia?
8. What additional are associated with the acceleration of the acquisition?
9. When does the Department expect the delivery of the remaining Black Hawks?
10. When did Defence, or the Minister, begin direct representations to the US Government
and manufacturer regarding Australia’s need to acquire more Black Hawks, faster?
a.
How often?
11. In the announcement, Secretary of Defense Lloyd J. Austin III noted that “some of the
Black Hawks have already arrived in Australia, with more to follow.
a.
How many have been received?
b.
When were they received?
c.
When will the remaining Black Hawks be received?
d.
How many is Australia waiting on?
Answer
Not yet tabled.
Supplementary Budget Estimates: 25 October 2023
Senator David Shoebridge
Question Number: 172
Date question was tabled: Not yet tabled.
Question
Who in Army Aviation provided the assurance that equipment was able to be used (refer to
pp.61-62 of the Proof Hansard) and what was that assurance?
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
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Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001067
Last updated: 31 January 2024
MRH90 Taipan
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001068
Last updated: 15 December 2023
LAND 400 Phase 3 - Infantry Fighting Vehicles
Key witnesses: Major General Richard Vagg; Major General Jason Blain
LAND 400 Phase 3 - Infantry Fighting Vehicle
Handling Note:
Head Land Capability, Major General Richard Vagg to lead on capability.
Head Land Systems, Major General Jason Blain to support on the acquisition process.
Key Messages
The LAND 400 Phase 3 – Infantry Fighting Vehicle project is a critical component of
the Integrated Force. The LAND 400 project, as part of the ADF Land Combat
Vehicles, allows our forces to fight in close combat against threats to Australia and its
immediate littoral regions.
Australia’s ability to conduct close combat is a crucial element of our overall
deterrent posture.
The Government has accepted the Defence Strategic Review’s recommendation to
acquire 129 Infantry Fighting Vehicles to equip one mechanised battalion to meet
the most demanding land challenges in our region. This is a reduction from the
original scope of up to 450 Infantry Fighting Vehicles.
Contracts have been signed with Hanwha Defence Australia for the acquisition and
support of 129 Redback Infantry Fighting Vehicles.
Talking Points
The acquisition of Infantry Fighting Vehicles under LAND 400 Phase 3 to replace the
ageing M113 Armoured Personnel Carriers will provide soldiers with a modern close
combat vehicle with significantly improved survivability, lethality and communications.
When fully delivered the capability will allow Army to sustain mounted combat
operations against emerging and future threats as part of the Integrated Force.
The introduction of the Infantry Fighting Vehicle will be accelerated in accordance with
the recommendation in the DSR.
129 Redback Infantry Fighting Vehicle will be built in Australia at the Hanwha Armoured
Vehicle Centre of Excellence in Avalon, Victoria.
The total value of the project is approximately $7 billion, representing the single largest
investment in Army capability to date.
The combined value of the acquisition and initial support contracts is approximately
$4.5 billion.
Prepared By:
Cleared By:
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured
Position: Deputy Secretary
Fighting Vehicles
Group: Capability Acquisition and Sustainment
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Division: Land Systems Division
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001068
Last updated: 15 December 2023
LAND 400 Phase 3 - Infantry Fighting Vehicles
Key witnesses: Major General Richard Vagg; Major General Jason Blain
The first vehicles are expected to commence delivery from 2027 with final deliveries to
be completed by end 2028.
If pressed: Why did we select the Hanwha Redback?
Defence conducted a robust, competitive tender process including extensive test and
evaluation of both tenderers’ vehicles which provided evidence and confidence in the
Redback Infantry Fighting Vehicle.
The Hanwha Redback Infantry Fighting Vehicle is a value-for-money investment in a
world-class capability that will serve the Australian Army for the next 30 years.
If pressed: About the Redback Infantry Fighting Vehicle capability
The Redback Infantry Fighting Vehicle is the most modern and capable Infantry Fighting
Vehicle available today. The capability is world-leading and has future growth potential
to ensure it can maintain its capability edge against evolving threats.
The Redback is an information-enabled capability that will be connected and
networked across the ADF.
The Redback will be crewed by a team of three and can carry an additional six fully
armed infantry soldiers into battle.
The Redback Infantry Fighting Vehicle can fight in the most difficult urban and jungle
terrain and can deploy using existing ships and aircraft.
If pressed: Where will these vehicles be based?
In line with the Army restructure announced on 28 September 2023 the vehicles will be
based in Townsville, operated by the 3rd Battalion of the Royal Australian Regiment.
This consolidation within an armoured brigade aligns to the direction within the
Defence Strategic Review.
Background
The current M113 platform was first introduced into service in 1965 and is not
fit-for-purpose against threats which are prevalent in our region. It has reached the
limits of its technical life.
Australian Industry Capability
The Redback Infantry Fighting Vehicle will be built in Australia at the Hanwha Armoured
Vehicle Centre of Excellence currently under construction at Avalon, Victoria.
An Australian build establishes the sovereign local production capability and also
provides greater flexibility and increased responsiveness, should strategic
circumstances change.
Prepared By:
Cleared By:
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured
Position: Deputy Secretary
Fighting Vehicles
Group: Capability Acquisition and Sustainment
Return to Index
Division: Land Systems Division
Phone: s22
Phone:
s22
/
s47E(d)
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001068
Last updated: 15 December 2023 LAND 400 Phase 3 - Infantry Fighting Vehicles
Key witnesses: Major General Richard Vagg; Major General Jason Blain
Hanwha Defense Australia has identified approximately 90 Australian companies to
contribute to the Redback build.
Budget
The total acquisition project value to realise the capability is valued at approximately
$7 billion including both the Hanwha contract and supporting elements such as spares,
munitions and facilities.
The savings realised from the reduction in infantry fighting vehicle quantities will
enable the acceleration and acquisition of other essential capabilities.
Timeline of Significant Events
Date
Action
8 December 2023
The Deputy Prime Minister and Minister for Defence Industry issued
a joint media release to announce contract signing with Hanwha
Defence Australia for the acquisition and support of 129 Redback
Infantry Fighting Vehicles.
December 2023
The Commonwealth executed contracts with Hanwha Defence
Australia for the acquisition and support of 129 Redback Infantry
Fighting Vehicles.
27 July 2023
The Minister for Defence Industry announced Hanwha Defense
Australia’s Redback Infantry Fighting Vehicle has been down-
selected as the preferred tenderer to deliver 129 Infantry Fighting
Vehicles to the Australian Army.
24 April 2023
The Prime Minister and Deputy Prime Minister released the
Defence Strategic Review and the Government’s response to the
Review to the public.
25 November 2022
The Minister for Defence Industry announced that Government
would consider the findings of the Defence Strategic Review prior to
making a decision on the project.
December 2021
The final evaluation stage of the tender concluded with approval of
the Source Evaluation Report.
8 October 2021
The Risk Mitigation Activity concluded with the submission of the
shortlisted tenderers’ final offers.
Prepared By:
Cleared By:
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured
Position: Deputy Secretary
Fighting Vehicles
Group: Capability Acquisition and Sustainment
Return to Index
Division: Land Systems Division
Phone: s22
Phone:
s22
/
s47E(d)
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001068
Last updated: 15 December 2023 LAND 400 Phase 3 - Infantry Fighting Vehicles
Key witnesses: Major General Richard Vagg; Major General Jason Blain
Date
Action
11 October 2019
Defence signed contracts with both shortlisted tenderers to
commence the Risk Mitigation Activity.
16 September 2019
Hanwha Defense Australia and Rheinmetall Defence Australia were
announced as shortlisted tenderers to proceed to the Risk
Mitigation Activity.
1 March 2019
Request for Tender closed.
24 August 2018
Request for Tender released.
13 March 2018
First Pass Government approval achieved.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
On 8 December 2023 the Deputy Prime Minister and Minister for Defence Industry
issued a joint media release to announce that contracts had been signed with Hanwha
Defence Australia for the acquisition and support of 129 Redback Infantry Fighting
Vehicles.
On 27 July 2023 the Minister for Defence Industry announced Hanwha Defense
Australia’s Redback Infantry Fighting Vehicle had been down-selected as the preferred
tenderer to deliver 129 infantry fighting vehicles to the Australian Army.
On 26 April 2023 the Deputy Prime Minister and the Minister for Defence Industry
discussed the reduction in number of infantry fighting vehicles being acquired in a
doorstop interview.
Prepared By:
Cleared By:
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured
Position: Deputy Secretary
Fighting Vehicles
Group: Capability Acquisition and Sustainment
Return to Index
Division: Land Systems Division
Phone: s22
Phone:
s22
/
s47E(d)
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001068
Last updated: 15 December 2023 LAND 400 Phase 3 - Infantry Fighting Vehicles
Key witnesses: Major General Richard Vagg; Major General Jason Blain
On 24 April 2023 the Deputy Prime Minister and the Minister for Defence Industry
announced the release of the Defence Strategic Review, including the recommendation
to reduce the acquisition of Infantry Fighting Vehicles to 129 vehicles to provide one
mechanised battalion.
On 25 November 2022 the Minister for Defence Industry announced that the
Government will consider the findings of the Defence Strategic Review before deciding
on the tender for the LAND 400 Phase 3 Infantry Fighting Vehicle project.
On 03 August 2022 the Deputy Prime Minister stated the Minister for Defence Industry
would be the Minister responsible for bringing the project forward for Government
consideration via a media article.
Relevant Media Reporting
On 8 December 2023 the Australian media reported extensively on the announcement
of the LAND 400 Phase 3 contract signing with Hanwha Defence Australia, including the
Herald Sun publishing ‘Redback deal inked’.
Division:
Land Systems Division
PDR No:
SB23-001068
Prepared by:
Cleared by Division Head:
Ms Sarah Myers
Major General Jason Blain
Land Systems Division
Head Land Systems
Capability Acquisition and Sustainment
Land Systems Division
Group
Capability Acquisition and Sustainment
Group
Mob:
s22
Ph:
s47E(d)
Mob: s22
Ph: s47E(d)
Date: 14 December 2023
Date: 4 December 2023
Cleared by Deputy Secretary
Chris Deeble
Date: 15 December 2023
Deputy Secretary
Capability Acquisition and Sustainment
Group
Prepared By:
Cleared By:
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured
Position: Deputy Secretary
Fighting Vehicles
Group: Capability Acquisition and Sustainment
Return to Index
Division: Land Systems Division
Phone: s22
Phone:
s22
/
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001069
Last updated: 15 December 2023
Protected Mobility Vehicle - Light (Hawkei)
Key witnesses: Major General Jason Blain
Protected Mobility Vehicle - Light (Hawkei)
Handling Note: Major General Jason Blain, Head Land Systems, to lead.
Key Messages
The Protected Mobility Vehicle - Light (Hawkei) has been co-developed by Defence and
Thales Australia to meet ADF requirements.
The Hawkei provides a high level of protection for soldiers against blast and ballistic
threats and superior off-road mobility enables it to operate in high-risk areas.
On 11 November 2022 Thales Australia advised Defence it had identified a new issue
with the Hawkei braking system and the cause of the issue was yet to be determined.
In July 2023 Hawkei was elevated to a Project of Interest due to an ongoing fault with
the vehicle's Anti-lock Braking System and critical spare parts shortages.
Talking Points
Why has Hawkei been added to the Projects of Interest list?
In July 2023 the LAND 121 Phase 4 Hawkei Acquisition Project was elevated to a Project
of Interest due to barriers to Thales Australia resolving the brake issue. This has created
significant risk for the achievement of the Final Operating Capability milestone.
There is also a critical shortage of Hawkei spare parts due to global supply chain
challenges.
Why are there restrictions on the use of Hawkei vehicles?
Thales Australia identified the brake issue at its Bendigo facility as part of the routine
quality assurance inspection on vehicles undergoing final production work.
Thales Australia recommended Defence restrict the use of the Hawkei fleet as a
precautionary measure until the matter could be properly investigated.
Defence accepted this recommendation as the safety of the Australian public,
personnel and equipment is paramount.
If pressed on restrictions on the use of Hawkei vehicles
As a result of a Thales Australia investigation, Thales Australia identified corrosion
within the Anti-lock Braking System modulator component of the Hawkei. Thales
Australia is continuing to work with its supplier to determine the root cause of the fault
and remedial actions. Once the cause of the issue is confirmed, Thales Australia will
develop a remediation plan for endorsement by Defence.
Defence has paused accepting vehicles from Thales Australia and suspended the roll
out of vehicles to Defence units.
Prepared By:
Cleared By:
Name: Brigadier John-Paul Ouvrier
Name: Chris Deeble
Return to Index
Position: Director General Land Vehicle Systems
Position: Deputy Secretary
Division: Land Systems Division
Group: Capability Acquisition and Sustainment Group
Phone: s47E(d)
s22
Phone: s47E(d)
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001069
Last updated: 15 December 2023
Protected Mobility Vehicle - Light (Hawkei)
Key witnesses: Major General Jason Blain
Thales Australia is working collaboratively with Defence to resolve the braking issue. An
interim solution is being implemented enabling the in-service fleet of Hawkei vehicles
to be used without restriction.
This issue is not related to an earlier Anti-lock Braking System issue, for which a
software fix has been implemented across the ADF fleet.
Will Australia gift Hawkei vehicles to Ukraine?
Gifting the Hawkei vehicle at this stage would adversely impact the introduction of the
capability to the ADF.
In addition to the Hawkei brake safety issue, there is a critical shortage of Hawkei spare
parts.
Gifting Hawkei vehicles to Ukraine would further impact the vehicle’s availability in
Australia and risk further delays to Final Operating Capability.
Work is still being undertaken by Thales to uplift the vehicles to the final contracted
baseline amidst spare parts shortages.
Why are there Hawkei vehicles parked at Thales’ facility in Bendigo?
There are approximately 500 vehicles remaining with Thales Australia in Bendigo
awaiting the completion of work towards their final contracted baseline before their
acceptance by the Government, or introduction into service.
This work must be completed before the vehicles can be distributed to units.
Defence has ceased acceptance of Hawkei vehicles from Thales until the root cause of
the Anti-lock Braking System fault has been identified and an acceptable remediation
plan has been presented.
Why has the project been delayed?
The Initial Operational Capability milestone was pushed back from December 2019 to
December 2020 due to issues concerning vehicle reliability, design maturity and
production caused by Steyr Motors entering voluntary administration.
The Hawkei Project (LAND 121 Phase 4) experienced initial challenges in meeting Full-
Rate Production and uplift capacity requirements.
The Hawkei Project (LAND 121 Phase 4) was impacted by COVID-19, which caused
global supply chain disruptions and hindered Army’s ability to complete the necessary
training for the introduction of the vehicle.
The Initial Operational Capability was deferred pending resolution of a Hawkei brake
incident that occurred on 23 November 2020 and was subsequently declared on
20 May 2021.
Thales Australia’s inability to resolve the current brake issue, coupled with global supply
chain challenges, is creating significant risk to the achievement of the Final Operating
Capability, currently scheduled for June 2024.
Is Thales Australia liable for liquidated damages due to delays?
Prepared By:
Cleared By:
Name: Brigadier John-Paul Ouvrier
Name: Chris Deeble
Return to Index
Position: Director General Land Vehicle Systems
Position: Deputy Secretary
Division: Land Systems Division
Group: Capability Acquisition and Sustainment Group
Phone: s47E(d)
s22
Phone: s47E(d)
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001069
Last updated: 15 December 2023
Protected Mobility Vehicle - Light (Hawkei)
Key witnesses: Major General Jason Blain
There are sufficient contractual mechanisms available to ensure Thales Australia
delivers the required capability to Defence.
It would not be appropriate to make further comment on commercial matters between
Defence and Thales Australia.
Background
The Hawkei Project (LAND 121 Phase 4) is acquiring 1,098 light protected mobility
vehicles and 1,058 companion trailers from Thales Australia, which will be used for
command, liaison, utility and reconnaissance roles.
The Hawkei Project’s (LAND 121 Phase 4) current budget is $1.96 billion (reference:
March 2022-23 Portfolio Budget Statement).
The acquisition contract with Thales Australia, valued at about $1.6 billion, was signed
on 5 October 2015. It is on schedule to achieve an Australian Industry Capability target
of 50 per cent.
The Hawkei provides a high level of protection for soldiers against blast and ballistic
threats. It is comparable to the Bushmaster but with superior off-road mobility.
Thales was approved to commence full-rate production on 30 September 2020. This
was completed in August 2022.
In October 2021 the Government approved a reduction in project scope to allow a
buyback of two Hawkei vehicles by Thales Australia to support a potential export
opportunity. This reduced the total quantity to be delivered by Thales to Defence from
the original 1,100 Hawkei vehicles to 1,098.
Thales Australia’ vehicle production effort is now focussed on completing the ‘uplift’ of
manufactured vehicles to the final production baseline.
As at 23 October 2023 Defence has accepted and paid for a total of 874 Hawkei
vehicles, and 442 vehicles with trailers have been issued to Defence units across
Australia.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
QoN No. 79, Hawkei braking issues, Senator Jacqui Lambie (Jacqui Lambie Network,
Tasmania) asked questions relating to the braking fault identified in Hawkei vehicles.
Prepared By:
Cleared By:
Name: Brigadier John-Paul Ouvrier
Name: Chris Deeble
Return to Index
Position: Director General Land Vehicle Systems
Position: Deputy Secretary
Division: Land Systems Division
Group: Capability Acquisition and Sustainment Group
Phone: s47E(d)
s22
Phone: s47E(d)
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001069
Last updated: 15 December 2023
Protected Mobility Vehicle - Light (Hawkei)
Key witnesses: Major General Jason Blain
Freedom of Information (FOI) Requests
On 30 October 2023, a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 16 June 2023 The Age published an article
by journalist Matthew Knott on ‘Ukraine’s
plea for Hawkei vehicles’ and whether Ukraine’s request would be supported.
On 29 March 2023 The Australian published an article by Ben Packham, reporting that
a Ukrainian Defence Ministry adviser had urged Australia to donate Abrams tanks and
'Hawkeis'.
Division:
Capability Acquisition and Sustainment Group Land Systems
PDR No:
SB23-001069
Prepared by:
Cleared by Division Head:
Brigadier John-Paul Ouvrier
Major General Jason Blain
Land Systems Division
Head Land Systems
Capability Acquisition and Sustainment
Land Systems Division
Group
Capability Acquisition and Sustainment
Group
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 30 January 2024
Date: 30 January 2024
Cleared by Deputy Secretary:
Chris Deeble
Date: 2024
Deputy Secretary
Capability Acquisition and Sustainment Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates 25 October 2023
Senator Jacqui Lambie
Question Number: Q79
Date question was tabled: Not yet tabled
Prepared By:
Cleared By:
Name: Brigadier John-Paul Ouvrier
Name: Chris Deeble
Return to Index
Position: Director General Land Vehicle Systems
Position: Deputy Secretary
Division: Land Systems Division
Group: Capability Acquisition and Sustainment Group
Phone: s47E(d)
s22
Phone: s47E(d)
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001069
Last updated: 15 December 2023
Protected Mobility Vehicle - Light (Hawkei)
Key witnesses: Major General Jason Blain
Question
1. Can the Department provide an explanation about the Hawkei brake issues?
2. What steps has the Department taken to resolve the Hawkei brake issues?
3. How long does the Department expect to resolve the Hawkei break issues?
4. Will the Department be sending Hawkeis to Ukraine?
Answer
1. Not yet tabled
Prepared By:
Cleared By:
Name: Brigadier John-Paul Ouvrier
Name: Chris Deeble
Return to Index
Position: Director General Land Vehicle Systems
Position: Deputy Secretary
Division: Land Systems Division
Group: Capability Acquisition and Sustainment Group
Phone: s47E(d)
s22
Phone: s47E(d)
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
Battlefield Aviation Program
Handling Note:
Chief of Army, Lieutenant General Simon Stuart, to lead on Battlefield Aviation Program.
Head Joint Aviation Systems Division, Major General Jeremy King, to lead on Black Hawk
and Apache project status and delivery.
Deputy Secretary Capability Acquisition and Sustainment Group, Mr Chris Deeble, to
lead on MRH90 disposal and Ukraine gifting.
Key Messages
Battlefield aviation is a critical capability that ensures the Integrated Force is
connected, protected, lethal and enabled through the provision of tactical speed,
reach, access and situational awareness.
Army’s Battlefield Aviation Program is rebuilding capacity and investing in proven and
mature platforms, including the UH-60M Black Hawk Utility Helicopter and AH-64E
Apache Attack Helicopter.
On 29 September 2023, Government announced that the MRH90 fleet would not
return to flying operations.
Defence is focused on introducing into service the new fleet of 40 x UH-60M Black
Hawk helicopters, which will replace the MRH90 capability.
The Government accepted the recommendation outlined in the Defence Strategic
Review that Army should posture the majority of the battlefield aviation capability in
Townsville, including relocating the 1st Aviation Regiment from Darwin.
Army is investing in Uncrewed Aerial Systems to provide enhanced situational
awareness for improved decision-making, and to reduce the threat exposure for
Australian soldiers.
Talking Points
The Battlefield Aviation Program includes all battlefield helicopters, special operations
helicopters, Tactical Uncrewed Aerial Systems, and supporting supply and maintenance
systems.
The Battlefield Aviation Program aims to:
improve aviation command and control;
replace problematic aircraft with proven and mature platforms;
establish robust and resilient supply and support systems;
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
optimise the fleet disposition; and
increase the safety, efficiency, effectiveness and cost of the aviation system.
Projects LAND 4507 Multi-Role Helicopter Rapid Replacement and LAND 4503 Tiger
Armed Reconnaissance Helicopter Replacement provide an opportunity for Defence to
remediate platform and disposition challenges.
The Government announced its decision to replace the MRH90 Taipan with the
UH-60M Black Hawk Utility Helicopter in early 2023, with the first three aircraft delivered
in August 2023, and flying operations commencing in September 2023.
Army’s existing Armed Reconnaissance Helicopter Tiger capability is expected to meet
Defence requirements until it is withdrawn from service by 2028.
The CH-47F Chinook is a good example of a proven, mature, reliable and affordable
helicopter and associated support system. Defence’s decision to expand the original
Chinook fleet from 10 to 14 is a pragmatic, cost effective and sustainable response to
increasing demands on the battlefield lift capability.
Army is leasing fixed and rotary wing aircraft to provide further options for Army aviation
during the capability transition.
Defence is working with industry partners to build sustainable, affordable and reliable
industrial base in Australia to support Army’s aviation capabilities.
Project LAND 129 Phase 3 is replacing Army’s existing RQ-7B Shadow 200 Tactical
Uncrewed Aerial Systems with the Integrator, providing an enhanced Intelligence,
Surveillance and Reconnaissance capability.
Defence continues to engage with Australian industry on Uncrewed Aerial Systems
innovation initiatives via the Advanced Strategic Capabilities Accelerator.
If pressed: on matters relating to the MRH90 investigation and airworthiness.
Refer to SB23-001067 Additional Estimates February 2024: MRH90 Taipan.
If pressed: what is the capability gap based on the early withdrawal of MRH90?
The ADF’s rotary wing capability is currently reduced.
The ADF continues to operate the CH-47F Chinook, the Armed Reconnaissance
Helicopter Tiger and MH-60R Seahawk to maintain an aviation capability able to support
battlefield mobility, amphibious operations and other helicopter tasks.
While Defence focuses on the introduction of the UH-60M Black Hawk to regain rotary
wing capacity, commercially-leased aircraft are supplementing capabilities.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
s47E(d)
/
s22
Phone:
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/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
If pressed: What is the current delivery schedule for the UH-60M Black Hawk fleet?
LAND 4507 Phase 1 Multi-Role Helicopter Rapid Replacement is acquiring 40 x UH-60M
Black Hawk aircraft through a Foreign Military Sales case with the United States Army.
Australia continues to receive extraordinary levels of support from the United States
Government and Army to deliver the Black Hawk capability, with the first three aircraft
delivered in August 2023.
On 1 November 2023, the United States Secretary of Defense announced the
United States would support Australia’s request that Black Hawk deliveries be
accelerated.
If pressed: Is Army procuring a Black Hawk with floatation capability?
Army is not procuring a Black Hawk with flotation capability. The risk of overwater flight
is treated with other mitigations, including carrying life rafts, individual flotation devices
and helicopter underwater escape training for crew and passengers.
If pressed: Why is Defence buying helicopters that cannot be operated from Navy Landing
Helicopter Dock ships?
The UH-60M Black Hawk and AH-64E Apache will operate off the Landing Helicopter
Dock ships, as the CH-47F Chinook currently does.
If pressed: What has happened to LAND 2097 Phase 4 Special Operations Rotary Wing?
The LAND 2097 Phase 4 Special Operations Rotary Wing project was scoped to deliver a
rapidly deployable light helicopter, in direct support of Special Operations.
The project was cancelled when Government approved the acquisition of the UH-60M
Black Hawk under the LAND 4507 Phase 1 Multi-Role Helicopter Rapid Replacement
project.
If pressed: Why doesn’t Army pursue an armed Uncrewed Aerial Systems, rather than a crewed
Armed Reconnaissance Helicopter?
Uncrewed Aerial Systems cannot yet replicate all the capabilities of crewed aircraft,
particularly as people remain essential to decision making in battle across the combined
arms team.
The AH-64E Apache carries a range of sensors, munitions and weapons well beyond that
of an uncrewed platform, and provides the critical step change in capability to enable
the teaming of crewed-uncrewed aerial systems.
If pressed: What is the status of LAND 129 Phase 3 Tactical Uncrewed Aerial System?
Army is committed to acquiring 24 x Integrator Air Vehicles as part of the LAND 129 Phase
3 Tactical Uncrewed Aerial Systems replacement and upgrade project.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
The project remains on track to replace the legacy RQ-7B Shadow 200 Tactical Uncrewed
Aerial Systems.
If pressed: What is the status of LAND 129 Phase 4B Small Uncrewed Aerial System?
LAND 129 Phase 4B has evaluated options for a suitable Small Uncrewed Aerial Systems
to replace the in-service Wasp AE, s47C
If pressed: What are the basing and operating locations for Army Aviation Capabilities?
On 1 July 2023, Government announced its decision to relocate the 1st Aviation
Regiment from Darwin to Townsville. This relocation will coincide with the introduction
into service of the AH-64E Apache.
Basing the AH-64E Apache in Townsville alongside the expanded CH-47F Chinook fleet,
in concert with the relocation of the 16th Aviation Brigade Headquarters, will enable
Army to generate, sustain and deploy a stronger and more resilient helicopter capability
for Defence.
The UH-60M Black Hawk fleet will be based out of Oakey and Holsworthy.
Basing the Black Hawks in these locations will strengthen industry support and
leverage the existing arrangements for Navy’s Seahawk helicopters.
Placing Black Hawks in close proximity to Navy’s Landing Helicopter Dock ships in
Sydney will support rapid deployments.
The Battlefield Aviation capability will be supported by two industry nodes centred on
Townsville (Boeing Defence Australia servicing the AH-64E Apache and CH-47F Chinook)
and Sydney/Nowra/Southeast Queensland (Lockheed Martin Australia and Sikorsky
servicing the UH-60M Black Hawk and Navy’s MH-60R Seahawk).
Consolidating operating locations has been a recommendation of several reviews into
Army Aviation, as well as the Defence Strategic Review.
If pressed: Will this reduce Defence’s presence in Darwin?
Defence remains an important part of the Northern Territory community, and expects to
increase the number of ADF personnel and families in the territory over the next decade.
Government has announced initiatives to strengthen Australia’s northern Defence bases,
which will generate significant investment in the Northern Territory.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
Supporting Information
Questions on Notice
Senate Supplementary Budget Estimates Question Time: 25 October 2023
QoN No. 17, HMSD Airworthiness Standards, Senator David Shoebridge (Greens, New
South Wales) asked about problems with the helmet-mounted sight and display, the
TopOwl image intensifier and the forward-looking infrared system for the Taipan
helicopters.
QoN No. 18, Risk of Terrain Collision with Heads Up Display (HUD), Senator David
Shoebridge (Greens, New South Wales) asked about the risk of collision with terrain
when aircraft are using heads up display and flying low, with poor illumination, without
a visual horizon.
QoN No. 19, Helmet-Mounted Sight and Display (HMSD) configuration 5.1, Senator
David Fawcett (Liberal, South Australia) asked whether configuration 5.1 of the TopOwl
helmet-mounted sight and display was found deficient, particularly in off-axis use.
QoN No. 21, Reports/Briefings on the Taipan platform, Senator Malcolm Roberts (One
Nation, QLD) asked the representative for Minister of Defence to provide a list
including the dates and titles of every report or briefing provided to Defence or created
internally raising issues with the Taipan platform.
QoN No. 28, Treated Risks – Configuration 5.1 and Thermal Imager, Senator David
Fawcett (Liberal Party, South Australia) asked the representative for Minister of
Defence questions relating to what treatments were applied to software configuration
5.1 and thermal imager and its mode of use.
QoN No. 77, Grounding of the MRH90 Taipan, Senator Jacqui Lambie (Jacqui Lambie
Network, Tasmania) asked about the grounding of the MRH90 Taipan and what it
means for the capability assessment and management of the platform.
QoN No. 111, Black Hawk, Senator Simon Birmingham (Liberal, South Australia) asked
questions related to Black Hawk helicopters, the numbers received, the operations
they will conduct, where they will be based and what they will be used for.
QoN No. 172, Army Aviation Equipment, Senator David Shoebridge (Greens, New South
Wales) asked who in Army Aviation provided the assurance that equipment was able to
be used and what the assurance was.
Freedom of Information (FOI) Requests
In August 2023, Defence received a number of requests from individuals and media
outlets seeking access under Freedom of Information to documentation relating to the
MRH90 incident in March 2023 and historical documentation. A
Access to documents
was denied, with a decision sent to each of the applicants on 1 December 2023.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
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Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
Recent Ministerial Comments
On 16 January 2024, the Minister for Defence Industry responded to questions on the
disposal of the MRH90 fleet, referencing their replacement by the UH-60M Black
Hawks, during a press conference to announce updates to the ADF’s long range fires
capabilities.
On 31 October 2023, the Deputy Prime Minister and US Defence Secretary Lloyd Austin
announced the accelerated delivery of Black Hawk helicopters to Australia.
On 29 September 2023, the Deputy Prime Minister announced that the ADF’s MRH90
Taipan helicopters will not return to flying operations before their planned withdrawal
date of December 2024.
On 4 August 2023, the Deputy Prime Minister responded to questions about the
MRH90 helicopter crash during Exercise Talisman Sabre 2023 in an interview on the
Today Show.
On 31 July 2023, the Deputy Prime Minister gave a press conference at Parliament
House to update on the MRH90 Talisman Sabre 2023 incident.
On 30 July 2023, the Deputy Prime Minister gave a joint press conference with the
Chief of the Defence Force in Townsville, to update on the MRH90 Talisman Sabre 2023
incident.
On 29 July 2023, the Deputy Prime Minister gave a joint press conference with the
Chief of the Defence Force and Talisman Sabre 2023 Exercise Director, to advise of the
MRH90 incident which occurred during Exercise Talisman Sabre 2023.
Relevant Media Reporting
Australian media has reported extensively on two 2023 incidents involving the
MRH90 during Talisman Sabre in July and at Jervis Bay in March 2023, Government’s
28 September 2023 announcement that the MRH90 would not return to flying
operations, and acquisition of the UH-60M Black Hawk Utility Helicopter to replace
the MRH90.
Media reporting from December 2023 through January 2024 has predominantly
focused on the disposal of the MRH90 fleet, with minor mention of the acquisition of
UH-60M Black Hawks.
On 1 December 2023, Australian Defence Magazine published an article providing an
update on ADF major projects, including the acquisition of UH-60M Black Hawks.
On 1 November 2023, the Financial Review reported that the Deputy Prime Minister
and US Defence Secretary had confirmed the accelerated delivery of Black Hawk
helicopters following top-level talks in Washington DC.
On 28 September 2023, The Australian reported that Townsville would become
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
home to the ADF’s army attack and medium-lift aviation units.
On 10 August 2023, The Daily Telegraph reported on Senator David Shoebridge’s
push for the release of safety documents relating to the MRH90.
On 18 April 2023, ABC News reported several military figures had said a simple
software upgrade may have prevented the emergency ditching of a MRH90 in Jervis
Bay.
Division: Army
PDR No:
SB23-001070
Prepared by:
Cleared by Division Head:
Brigadier David Hafner
Major General Richard Vagg
Deputy Commander
Head Land Capability
Aviation Command
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 14 December 2023
Date: 31 January 2024
Consultation: Rotary, Aerospace and
Surveillance Systems Division
Date: 30 November 2023
Major General Jeremy King
Ph: s47E(d)
Head Joint Aviation Systems Division
Cleared by CFO / DPG / DSR:
Name: s47E(d)
Date: 29 November 2023
Position: Director - Business
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Lieutenant General Simon Stuart
Date: 18 December 2023
Chief of Army
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator David Shoebridge
Question Number: 17
Date question was tabled: Not yet tabled
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
Question
Senator David Shoebridge: Army Aviation had been in receipt of a series of reports identifying
systemic problems with the helmet-mounted sight display, the TopOwl image intensifier and
the forward-looking infrared system for the Taipan helicopters—a series of concerns raised in
reports from 2020 onwards. That's right, isn't it, Major General Jobson?
Major Gen. Stephen Jobson: There are many reports and there are many processes in place in
the Army Aviation enterprise consisting of a range of organisations to bring into service
equipment to be operated in our aircraft.
Senator David Shoebridge: Of course there are a range of reports, but when you get a report,
a formal report, from the Army Aviation Test and Evaluation Section that says the helmet-
mounted sight display for the Taipan helicopter was a substantial risk of multiple deaths due
to controlled flight into terrain and that the display of ambiguous aircraft attitude in the
helmet-mounted sight display was an unacceptable risk to flight safety, I would have thought
that would stick in your mind. And that's a report you received.
Senator David Shoebridge: The Army Aviation Test and Evaluation Section are the experts and
the specialists tasked with doing these evaluations, aren't they?
Lt Gen. Simon Stuart: They are part of the system, and you're correct, in terms of them bringing
a level of expertise.
Senator David Shoebridge: They found that the heads-up display, which I'll use instead of
HMSD, did not meet airworthiness standards. Indeed, they found that the symbology tested
was observed to be incongruous with the primary flight display, creating mixed messages to
and confusions for pilots, in direct breach of Federal Aviation Administration requirements.
They found that, didn't they?
Lt Gen. Simon Stuart: I'd have to take that on notice, in terms of exactly what you've read there,
but the characterisation was correct. There was an issue with the symbology. That led to an
upgrade from its original configuration. The brief history of that, of course, is that that test and
evaluation advice was accepted. It led to a further evaluation for both Army and Navy aviation.
It was tested against those standards and has led to an improvement and development of that
HMSD.
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator David Shoebridge
Question Number: 18
Date question was tabled: Not yet tabled
Question
Senator David Shoebridge: Obviously, the risk of collision with terrain with a heads-up display
is greatest when aircraft are flying low, with poor illumination, without a visual horizon. That's
when the risk is greatest. They were the circumstances in which the initial test found this was
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
most dangerous, wasn't it?
Lt Gen. Simon Stuart: I would have to take that on notice to make sure that the response I'm
providing for you takes into consideration all the matters that you've just—
Senator David Shoebridge: Flying low, without a visual horizon, with poor illumination—that's
when the risks identified in that first report are greatest, if you're relying on the heads-up
display.
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator David Fawcett
Question Number: 19
Date question was tabled: Not yet tabled
Question
Senator David Fawcett: General Stuart, I wanted to confirm the evidence, which I think you just
repeated then, that configuration 5.1 of the TopOwl HMSD—which is the subject of the eights
report, which Senator Shoebridge has referred to—was found deficient, particularly in off-axis
use. Your evidence was that it was subsequently upgraded, if I heard you correctly. Is your
evidence that there has been a subsequent software load to 5.1.
Lt Gen. Simon Stuart: I'll have to take that on notice and make sure we provide you with
accurate information concerning the software upgrades.
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator Malcolm Roberts
Question Number: 21
Date question was tabled: Not yet tabled
Question
Senator Roberts: On notice, could you please provide me with a list including the dates and
titles of every report or briefing provided to Defence or created internally raising issues with
the Taipan platform.
Lt Gen. Simon Stuart: We'll take that on notice
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator David Fawcett
Question Number: 28
Date question was tabled: Not yet tabled
Question
Senator David Fawcett: I have two questions that I'd like you to take on notice. General Stuart,
you made the comment that risks were treated. I'd like you to detail for us what treatments
were applied to, particularly, software configuration 5.1. I know there were some in the
operation evaluation, but I'm not aware of those being followed through. I'd like to understand
that, and I'd like to understand the OEM's position on the thermal imager and its mode of use.
Lt Gen. Simon Stuart: We'll take both of those questions on notice.
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator Jacqui Lambie
Question Number: 77
Date question was tabled: Not yet tabled
Question
Senator Jacqui Lambie asked the Minister for Defence, upon notice, on 03 November 2023:
1. Have the Taipans been grounded?
2. If not, what does that mean for the capability assessment and how will the Taipans be
managed?
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator Simon Birmingham
Question Number: 111
Date question was tabled: Not yet tabled
Question
1. Can you confirm the number of Black Hawk helicopters currently available to the Army?
2. Where are these helicopters currently based, and what are they being used for?
3. What impact does only having that number of helicopters available mean for Army’s
capacity to:
a.
conduct amphibious operations;
b.
move troops by air around the battlefield;
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
Phone:
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Additional Estimates February 2024
PDR No: SB23-001070
Last updated: 31 January 2024
Battlefield Aviation Program
Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King; Mr Chris Deeble
c.
maintain the currency of its pilots;
d.
conduct special forces operations such as hostage recovery; and
e.
provide any assistance in the coming bushfire season which looks like it will be very
severe if not catastrophic.
4. Does the current situation constitute a ‘capability gap’?
5. What is Defence’s plan to mitigate the grave risk of not having a battlefield helicopter
capability?
6. At what level, whether Ministerial, Secretary, CDF or Chief of Army, is leadership being
applied to resolving the lack of capability?
7. When was the Department, and the Minister, informed of the acceleration of Black Hawks
to Australia?
8. What additional are associated with the acceleration of the acquisition?
9. When does the Department expect the delivery of the remaining Black Hawks?
10. When did Defence, or the Minister, begin direct representations to the US Government
and manufacturer regarding Australia’s need to acquire more Black Hawks, faster?
a.
How often?
11. In the announcement, Secretary of Defense Lloyd J. Austin III noted that “some of the Black
Hawks have already arrived in Australia, with more to follow.
a.
How many have been received?
b.
When were they received?
c.
When will the remaining Black Hawks be received?
d.
How many is Australia waiting on?
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator David Shoebridge
Question Number: 172
Date question was tabled: 15 December 2023
Question
Who in Army Aviation provided the assurance that equipment was able to be used (refer to
pp.61-62 of the Proof Hansard) and what was that assurance?
Answer
Not yet tabled.
The Defence Aviation Safety Framework establishes the system for assurance of ADF
aircraft and associated equipment against applicable recognised standards. The
assurance framework includes a range of authorities to ensure appropriate checks and
balances are in place, and is applicable to all ADF aircraft including the MRH90.
Prepared By:
Cleared By:
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Return to Index
Division: Headquarters Aviation Command
Group/Service: Army
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Ghost Bat
Handling Note:
Chief of Air Force, Air Marshal Robert Chipman, to lead on key messages and capability.
Head of Aerospace Systems Division, Air Vice-Marshal Graham Edwards, to support on
program delivery.
Key Messages
MQ-28A Ghost Bat is a sovereign autonomous aircraft designed to operate as part of
an integrated system of crewed and un-crewed platforms.
Known as a Collaborative Combat Aircraft, the capability comprises the aircraft,
payloads and sensors, datalinks and software to drive intelligent behaviours for specific
combat roles.
Government has approved over $600 million to support development and production
of the MQ-28A Ghost Bat aircraft and supporting systems by Boeing Defence Australia.
Boeing Defence Australia have produced eight Block 1 aircraft and one ground control
station.
Air Force continues to assess the MQ-28A through systematic testing in both live and
digital environments.
Key Financial Measures (Price Basis – Budget figures provided are on 2023-24 Portfolio
Additional Estimates Statements (2023-24 MYEFO Price Basis as at 30 June 2023)
Total Approved $611 million (30 June 2023)(including
$75 million contingency in Phase 2) across all Phases
comprising
- $456 million for Phase 2
Project Budget
- $115 million for Phase 1B
- $40 million for Phase 1.
Total Spend to Date: $373 million (30 June 2023)
($218 million Phase 2, $115 million Phase 1B and
$40 million Phase 1)
Detailed Acquisition Measures
$162 million ($0.2 million Phase 1B and $162 million
2023-24 Budget Estimate
Phase 2)
2024-25 Budget Estimate
$0 million (Phase 2 only)
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
Phone:
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Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Talking Points
What options are being developed for collaboration and technology sharing with the
United States in the development of MQ-28A Ghost Bat?
In line with the Government’s response to the Defence Strategic Review, a
Collaborative Combat Aircraft Development Project Arrangement was signed with the
United States on 30 March 2023.
The Project Arrangement enables the sharing of classified information and technology
to collaborate on Collaborative Combat Aircraft platforms, payloads, sensors and other
system infrastructure, including teaming behaviours and datalinks.
Defence has established a combined experimental operations workforce to support the
collaborative test and evaluation activities undertaken through the Project
Arrangement.
The United States – Australia Joint Leaders’ Statement on 25 October 2023 announced the
intention to explore trilateral cooperation with Japan on Unmanned Aerial Systems. What
steps has Defence taken since the announcement?
The cooperation aims to enhance interoperability and accelerate technology transfer in
the rapidly emerging field of autonomy and Collaborative Combat Aircraft.
The trilateral cooperation explores collaboration on un-crewed aerial systems, and not
specifically the MQ-28A Ghost Bat.
Defence is working with the United States to agree on what information and
technology can be shared, and identifying a fit-for-purpose framework to enable
collaboration.
What has Defence invested in the MQ-28A Ghost Bat program?
Government has approved more than $600 million to support the MQ-28A program.
Additionally, Defence has provided significant non-financial support to the project,
including the provision of specialised equipment, personnel and access to test facilities
and subject matter experts during live and digital testing.
How much does a MQ-28A Ghost Bat cost?
Investment in the program to date is reflective of the extensive research and
development required for novel Collaborative Combat Aircraft capabilities and the
costs of standing up the project.
What testing is being done with the MQ-28A Ghost Bat?
Boeing Defence Australia and Air Force are executing a flight test program to expand
the aircraft flight envelope (operating altitude and airspeed) and validate the mission
system and sensor performance.
Digital testing is being conducted with Air Force and Defence Science and Technology
Group’s involvement. Leveraging a digital twin – a virtual representation that mimics
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
the physical system – enables running multiple simulated scenarios to test the design,
accelerate payload integration and concept validation, and supports the accelerated
development of MQ-28A.
To date there has been approximately 17,000 hours of cumulative digital twin testing
with over 40 hours of live flight tests to validate the outcomes.
In October 2023 the MQ-28A live flight testing successfully conducted autonomous
flight under the command of the mission system, and demonstrated the accuracy and
value of the digital twin.
Further, the Infrared Search and Track sensor and multi-aircraft fusion was successfully
tested in its maiden flight after 7,000 hours of digital twin testing. This capability would
otherwise have taken up to six months of live testing to validate.
Specific details of the test program, teaming and autonomous capabilities, and mission
payload systems testing are commercial-in-confidence and sensitive.
After collaboration, technology sharing and testing, what comes next for the MQ-28A
Ghost Bat?
Defence continues to analyse the capability maturity and is developing concepts of
operation. This is being conducted in collaboration with the United States and the
results will inform future investments.
How many MQ-28A Ghost Bats will you order?
Air Force continues to assess the MQ-28A. No decisions on future production or force
mix have been made.
Will the MQ-28A Ghost Bat production remain in Australia?
Boeing Defence Australia has committed to maximising MQ-28A Ghost Bat production
in Australia.
What is the Australian industry component of the MQ-28A Ghost Bat?
70 per cent of the program is being directed towards Australian industry content, which
will deliver substantial benefits to Australian industry.
Over 200 Australian companies have contributed to the program, including more than
50 small and medium enterprises within the supply chain.
The application of advanced software programming in avionics and autonomy for both
the MQ-28A and in manufacturing robots is a major opportunity for Australian industry
to grow a significant sovereign capability.
Developmental programs like the MQ-28A build a stronger sovereign defence industry
and increase Australia’s resilience.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
What is the International Traffic in Arms Regulations (ITAR) status of the MQ-28A Ghost Bat?
The MQ-28A contains specific ITAR elements within the design, engineering,
components and sub-systems.
The incorporation of classified United States information and technology has increased
the future interoperability and capability of the MQ-28A for Australia, our allies and
partners.
The incorporation of US knowledge and expertise has also brought with it elements of
ITAR export control to be managed and specifically negotiated in future government to
government export sales arrangements.
What protections are in place for sovereign intellectual property associated with the
development of the MQ-28A Ghost Bat?
The intellectual property for the MQ-28A is owned by Boeing Defence Australia, and
the Government maintains rights to access the intellectual property for Defence
purposes – including the national security of Australia and the Government’s
participation under any international agreements.
The Government has, and continues to apply an export control regime over the
MQ-28A to meet sovereign and international obligations.
What arrangements are in place to sustain the sovereign industrial capability and supply
chain for MQ-28A production?
Boeing Defence Australia has committed to the Government that Australian
manufacture of MQ-28A will be maximised to meet any future demand.
Ongoing Australian Industry Capability participation is a key tenet of commercial
arrangements and commitments between the Government and Boeing Defence
Australia.
Boeing Defence Australia currently engage over 24 Australian Tier 1 suppliers in all
facets of capability delivery, and over 227 Australian enterprises have contributed to
the MQ-28A program to date.
Is the MQ-28A Ghost Bat ethical?
The MQ-28A program is a pathfinder for integrating autonomous systems to create
smart human-machine teams.
An important part of developing these concepts is to examine the potential use of
autonomous systems with varying levels of autonomy (and eventually artificial
intelligence) while ensuring new systems meet ethical requirements.
All MQ-28A operations will comply with the same Laws of Armed Conflict, regulations
and standards that apply to crewed platforms.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
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Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
What was the incident that occurred during testing in late 2021?
A landing incident occurred during a test flight at the Royal Australian Air Force
Woomera Range Complex, South Australia, in late 2021.
No personnel were injured as a result of this incident.
Damage was sustained to the landing gear and airframe panels. The aircraft recovered
under the control of a Boeing test pilot with no risk to safety of personnel. The root
cause of the incident has since been resolved.
Events like this are likely at this stage of development, and are why testing is
conducted.
Background
Under DEF6014, Defence contracted Boeing Defence Australia to develop the
MQ-28A Ghost Bat capability.
Defence invested $38 million via DEF6014 Phase 1 in December 2018.
A further $115 million was invested through DEF6014 Phase 1B for three aircraft
and associated ground support services.
In March 2022 the Government approved $454 million (including contingency) to
procure additional aircraft under DEF6014 Phase 2.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 53, Records of discussion between Boeing and USAF, Senator the Hon David
Fawcett (Liberal, South Australia) asked what details the Royal Australian Air Force has
regarding discussions between Boeing and the United States Air Force on the purchase
of MQ-28A as part of their Next Generation Air Dominance program.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
No recent comments.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
Phone:
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/
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Relevant Media Reporting
On 14 July 2023 the Australian Defence Magazine published an article titled
Government accelerates Ghost Bat program. Journalist Nigel Pittaway writes that the
Albanese government is directing Defence to deliver options to accelerate
development of the Boeing Australia MQ-28A Ghost Bat, and to put forward options to
develop the program and support the production of Block 2 airframes ‘without delay’.
On 5 July 2023 Defense Visual Information Distribution Service published an article and
video titled US Air Force Research Lab (AFRL) Autonomous Aircraft Experimentation. In
the video, members of the Autonomous Aircraft Experiment Team explain how they
are taking autonomous research concepts that exist in a lab and turn them into
operational realities. The MQ-28A Ghost Bat appears alongside an F-22 Raptor in the
video, and whilst the video looks convincing, it is in fact computer-generated. No
MQ-28A Ghost Bat flight testing has been conducted in the United States.
Division:
Air Force
PDR No:
SB23-001071
Prepared by:
Cleared by Division Head:
Air Commodore Ross Bender
Air Vice-Marshal Wendy Blyth
Director General Air Combat Capability
Head of Air Force Capability
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 1 December 2023
Date: 11 December 2023
Consultation:
Capability Acquisition and Sustainment
Date: 28 November 2023
Group
Mob:
s22
Ph:
s47E(d)
Air Vice-Marshal Graham Edwards
Head of Aerospace Systems Division
Cleared by CFO / DPG / DSR:
Major General Matthew Pearse
Date: 28 November 2023
Head Plans and Capability Integration
Defence Strategic Review Implementation Task Force
Lynette Daly
Date: 12 December 2023
Assistant Secretary Finance – Air Force
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Air Marshal Robert Chipman
Date: 15 December 2023
Chief of Air Force
Air Force
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
Phone:
s47E(d)
/
s22
Phone:
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/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001071
Last updated: 18 December 2023
Ghost Bat
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Questions on notice referred to within the brief:
Supplementary Budget Estimates
Senator the Hon David Fawcett
Question Number: 53
Date question was tabled: 25 October 2023
Question
SENATOR FAWCETT: Could I have people to the table to talk about Ghost Bat, please? Air
Marshal Chipman, welcome back. Table 54 in the budget papers identifies that 6014 phase 2
has $454 million allocated to the program for the additional seven aircraft. I notice that that
comes on the back of statements by the US Secretary of the Air Force, Frank Kendall. He has
said publicly that there have been preliminary discussions regarding the purchase by the US
of the MQ-28 as part of their Next Generation Air Dominance program. For a start, I'd be
interested to know where we are at with those discussions.
Air Marshal Chipman: We have had no discussions with the US about the purchase of MQ-28
for their future needs.
Senator FAWCETT: Are you aware if Boeing has had discussions with the USAF?
Air Marshal Chipman: I'm not aware of any discussions between Boeing and the USAF. That
would be a matter for them.
Senator FAWCETT: Okay. Given that Secretary Kendall made those comments publicly, could
you take on notice what records RAAF has regarding that. I'm aware that we are signing a
collaborative combat aircraft project arrangement with the US. What is the status of that
arrangement?
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Position: Director General Air Combat Capability
Position: Chief of Air Force
Return to Index
Division: Air Capability
Group/Service: Air Force
Phone:
s47E(d)
/
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Phone:
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001072
Last updated: 18 December 2023
Space Capability
Key witness: Major General Greg Novak
Space Capability
Handling Note:
Commander Defence Space Command, Major General Greg Novak, to lead.
Key Messages
Defence Space Command moved into the Joint Capabilities Group on 1 July 2023
achieving the Government’s direction in response to the Defence Strategic Review to
advance space capability delivery, and to develop a space workforce, including career
pathways.
The Government agreed in principle to the Defence Strategic Review’s
recommendations to establish a centralised space domain capability development and
management function, and to establish a method to build and sustain a trained
Defence space workforce, including a defined career path.
Defence has been progressing work to advance space capability delivery and develop
the space workforce, including developing the Defence Space Strategic Workforce Plan
2022-35 and establishing the Space and Cyber Career Management Directorate within
the new Military Personnel Organisation on 1 November 2023.
Defence is developing options to optimise space capability and present these to
Government for consideration as a part of the 2024 National Defence Strategy.
Space domain awareness enables tracking and identification of space objects and
threats, such as space debris, as well as predicting and avoiding potential collisions in
space.
Australia’s unique geographical position allows Defence to contribute significantly to
collective space domain awareness, shared with our partners.
Talking Points
Space is an increasingly contested, degraded and operationally limited domain.
Defence must be positioned to shape, deter and respond to threats to, from and in the
space domain.
The space domain is critical to the effective employment of military power, and plays a
central role in how Defence conducts multi-domain operations.
Defence relies heavily on access to space-based systems and information for
capabilities and operations, including:
communications, command and control;
intelligence, surveillance and reconnaissance; and
position, navigation and timing.
Prepared By:
Cleared By:
Name: Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Return to Index
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s47E(d)
Phone: s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001072
Last updated: 18 December 2023
Space Capability
Key witness: Major General Greg Novak
Other government agencies, the commercial sector and the public depend on access to
space-based systems for essential everyday activities including telecommunications,
transport, financial services, traffic management, emergency response, and
environmental monitoring.
Losing access to space would significantly affect the operational effectiveness and
capability of Defence.
Defence Strategic Review
As part of the Defence Strategic Review, the Government:
Agreed that Space Command move into Joint Capabilities Group. The move
commenced 1 July 2023 and has now been completed.
This aligns with key organisational objectives of the Defence Space Strategy
to develop the Defence Space Enterprise Concept, including organisational
transformation to improve decision-making at all levels of command.
Agreed in principle that a centralised space domain capability development and
management function should be established.
The Chief of Joint Capabilities is responsible for all aspects of capability
management for the space domain.
The Commander of Defence Space Command articulates the user need for
space capability and directs employment of space capability.
The centralised functions of capability development and capability
management, including Space Command’s Capability Branch, transferred to
Joint Capabilities Division in Defence from 1 November 2023.
Agreed in principle to establish a method for building and sustaining a trained
Defence space workforce, including a defined career path for space professionals.
Defence is accelerating the Defence Space Strategic Workforce Plan by
defining the term ‘space professionals’, developing workforce categories to
manage Defence space-related careers, and developing a training
continuum.
The Space and Cyber Career Management Directorate was established on
1 November 2023 in the new Military Personnel Organisation to manage
space professionals as a distinct workforce group.
Defence is coordinating closely with partners to ensure alignment of approaches to
shape, deter and respond to threats to, from, in and through the space domain.
If pressed: National Space Mission for Earth Observation (NSMEO)
The Chief of Defence Intelligence was the Defence lead on the National Space Mission
for Earth Observation.
Prepared By:
Cleared By:
Name: Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Return to Index
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s47E(d)
s22
Phone: s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001072
Last updated: 18 December 2023
Space Capability
Key witness: Major General Greg Novak
Defence supported the National Space Mission for Earth Observation in partnership
with the Australian Space Agency before the Government terminated the program on
29 March 2023.
Defence will consider further space-based Australian industry content investments
when needed in accordance with the 2024 National Defence Strategy.
If pressed: Space cooperation with international partners
Enhanced Space Cooperation was introduced as a new Force Posture Initiative at the
2023 Australia-United States Ministerial (AUSMIN) Consultations to enable closer
cooperation in the critical operational space domain.
Australia and the United States intend to increase military-to-military space
cooperation and integration in existing operations and exercises.
On 20 April 2023 the Enhanced Space Cooperation Memorandum of
Understanding was signed with the United States Space Force to facilitate greater
military-to-military cooperation at the Command level.
Defence maintains close engagement with like-minded international partners, including
through the Combined Space Operations initiative with the United States,
United Kingdom, Canada, New Zealand, France, Germany, Italy, Japan and Norway.
The Combined Space Operations initiative aims to ensure that space is safe, secure and
accessible, and to support establishing international norms for responsible behaviours
in space.
If pressed: Deep-space Advanced Radar Capability
The Government has entered into an agreement with the United States and the
United Kingdom to collaborate on the Deep-space Advanced Radar Capability.
This capability will provide continuous global and all-weather coverage to detect, track
and identify objects in deep space. This will boost our ability to detect and deter space-
based threats.
Australia’s Deep-space Advanced Radar Capability site will be near Exmouth,
Western Australia. It is expected to be operational by 2026. The Australian site will
integrate with others in the United States and the United Kingdom, providing a global
space domain awareness capability.
The United States will fund the majority of the Deep-space Advanced Radar Capability
construction and associated supporting infrastructure. Australia’s share is
approximately $1.8 billion to operate and sustain the capability.
The construction of the Deep-space Advanced Radar Capability site is expected to
create up to 100 jobs, with further opportunities for Australian industry involvement
through the construction, operation and sustainment of the site.
Prepared By:
Cleared By:
Name: Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Return to Index
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s47E(d)
s22
Phone: s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001072
Last updated: 18 December 2023
Space Capability
Key witness: Major General Greg Novak
This is a practical example of what AUKUS partners can achieve working together.
Deep-space Advanced Radar Capability will enhance our defence capabilities and
enable us to further contribute to creating a safer, more secure and prosperous Indo-
Pacific region.
Background
Defence Space Command’s mission is to prepare a space presence to secure Australia's
interests. The Command’s vision is to assure Australian civil and military access in
space, integrated across Government, and in concert with allies, international partners
and industry.
Defence’s Space Command is responsible for:
developing space concepts and doctrine;
conducting strategic space planning;
guiding scientific and technological space priorities;
defining, growing and sustaining a Defence space workforce;
developing and maintaining effective partnerships with domestic, international
and inter-agency partners; and
providing space specialists to the Chief of Joint Operations and the integrated
force.
Since establishment in January 2022 Defence Space Command has delivered:
the Defence Space Strategy;
an in-depth review of space capability projects;
the Defence Space Strategic Workforce Plan;
the Theatre Joint Force Space Component within Headquarters Joint Operations
Command, and
the establishment of No. 1 Space Surveillance Unit, which assumed responsibility
for the operation of the C-Band Radar and the Space Surveillance Telescope on
1 July 2023.
Defence Space Command is working across the Defence Portfolio to continue the
development of space policy and plans, advance space capability delivery, and develop
Defence’s space workforce and career pathways for space professionals.
Threats to Space Capabilities
Competitors’ capabilities can be employed to interfere with, and influence satellites
and other space capabilities. Threats can originate from the ground or space in the
domain. Actions can range from non-kinetic effects (such as electronic attack for
Prepared By:
Cleared By:
Name: Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Return to Index
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s47E(d)
s22
Phone: s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001072
Last updated: 18 December 2023
Space Capability
Key witness: Major General Greg Novak
jamming communications) to kinetic weapons (such as Direct Ascent Anti-Satellite
missiles).
Both China and Russia have advanced space capabilities that could affect other nations’
satellite capabilities. There has been no demonstrated intent by other nations to
disable Australian space capabilities.
China’s Shijian-21 satellite towed a defunct Chinese satellite out of its position in
geosynchronous earth orbit for disposal, as reported on 27 January 2022. This
demonstrates capability with potential ‘dual-use’ military applications.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
In July 2023 an individual requested access to a copy of the signed Enhanced
Cooperation Memorandum of Understanding with the US Space Command. D
Documents
were released on 21 August 2023.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 2 December 2023, Deputy Prime Minister media release – New Defence Space
Capability Boosts Regional Security, announced the construction of the Australian
Deep-Space Advanced Radar Capability site near Exmouth in Western Australia.
Prepared By:
Cleared By:
Name: Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Return to Index
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s47E(d)
s22
Phone: s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001072
Last updated: 18 December 2023
Space Capability
Key witness: Major General Greg Novak
Group:
Joint Capabilities Group
PDR No:
SB23-001072
Prepared by:
Cleared by Command Head:
Jacinta Carroll
Major General Greg Novak
Assistant Secretary Space Strategic Plans
Commander Defence Space Command
Mob:
s22
Ph:
s47E(d)
s22
Mob:
s22
Ph:
s47E(d)
Date: 14 December 2023
Date: 14 December 2023
Consultation:
Alison West
Date: 18 December 2023
Assistant Secretary Strategic Engagement &
Mob: s22
Ph: s47E(d)
Corporate
Strategy Policy & Industry
Cleared by DSR:
Ciril Karo
Date: 18 December 2023
First Assistant Secretary DSR Implementation
Cleared by Group Head:
Lieutenant General John Frewen
Date: 15 December 2023
Chief of Joint Capabilities
Ph: s22
Prepared By:
Cleared By:
Name: Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Return to Index
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s47E(d)
s22
Phone: s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001073
Last updated: 11 January 2023
JP9102 – SATCOM System
Key witness: Rear Admiral David Mann; Air Vice-Marshal David Scheul
JP9102 – SATCOM System
Handling Note:
Head Joint Capabilities, Rear Admiral David Mann to lead.
Head Air Defence and Space Systems Division, Air Vice-Marshal David Scheul to support
on project status, including contracts, tenders, and industry engagement activities.
Key Messages
JP9102 Phase 1 delivers a geostationary, sovereign-controlled satellite communications
capability providing coverage over the Indo-Pacific, including the primary area of
military interest identified by the Defence Strategic Review and agreed to by the
Government.
A significant number of current and future Defence capabilities in the Integrated
Investment Program require access to satellite communications.
Australia requires a resilient, agile and flexible satellite communications system that
meets our needs and the requirements of our partners to enable the Integrated Force.
Australia’s space industry is currently unable to manufacture or launch satellites of the
size and complexity required to meet Defence requirements. Consequently, much of
the acquisition for the manufacture and launch of the satellites will be procured from
overseas suppliers.
On 3 April 2023 Defence announced Lockheed Martin Australia as the preferred
tenderer to progress to the next stage of the procurement process, which includes
engaging in Offer Definition and Improvement Activities that commenced on
2 May 2023.
Talking Points
Lockheed Martin Australia is the preferred tenderer for JP 9102 Phase 1 to deliver a
new Australian Defence Satellite Communications System.
Defence is engaging with Lockheed Martin Australia through the next stage of the
procurement process, which includes collaborative tender clarification and capability
improvement activities.
Project complexity and COVID-19 resulted in delays to the tender process. The project
is now expected to deliver three years late.
s33(a)(i)
s33(a)(i)
Prepared By:
Cleared By:
Name: s47E(d)
Name: Lieutenant General John Frewen
Position: Director Space Services
Position: Chief of Joint Capabilities
Return to Index
Division: Joint Capabilities Division
Group: Joint Capabilities Group
Phone:
s22
/
s47E(d)
Phone:
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/
s47E(d)
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001073
Last updated: 11 January 2023
JP9102 – SATCOM System
Key witness: Rear Admiral David Mann; Air Vice-Marshal David Scheul
Defence acknowledges the need for accelerated capability acquisition to support the
Integrated Force, as directed by the Government in response to the Defence Strategic
Review.
If pressed: What will Joint Project 9102 Phase 1 deliver?
JP9102 Phase 1 will deliver Australia’s first sovereign-controlled satellite
communications system over the Indo-Pacific region. The geostationary satellites will
provide wideband and narrowband communication services to Defence and other
government agencies.
The project includes multiple ground station facilities across Australia, and a new
Satellite Communications Management System with Satellite Communications
Operations Centres.
Defence will enable the Integrated Force through the delivery of assured, resilient, agile
and flexible satellite communication operations in a congested, contested and
competitive space environment.
If pressed: What opportunities exist for Australia’s space industry?
JP9102 Phase 1 is planned to launch large communications satellites into geostationary
orbits.
This project will provide potential opportunities for Australian industry in:
software development and support, such as for the Satellite Management
System;
satellite communications certification support services;
security management and ICT security accreditation;
engineering, maintenance and training support services;
operating support; and
Australian industry skilling.
The Australian satellite industry is maturing, with companies such as Myriota and
Fleet Space Technologies maintaining lower earth orbit satellites for other commercial
requirements, such as mining. Defence is working with industry to mature satellite
communication capabilities to support future Defence requirements.
If pressed: What has occurred with the project schedule?
The original high-risk schedule approved at First Pass in 2020 forecast Second Pass
consideration in 2022-23 and Initial Operational Capability in 2027.
The decision to progress the high-risk schedule was driven by an increasing threat
profile and the decline of current satellite communication capabilities.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Lieutenant General John Frewen
Position: Director Space Services
Position: Chief of Joint Capabilities
Return to Index
Division: Joint Capabilities Division
Group: Joint Capabilities Group
Phone:
s22
/
s47E(d)
Phone:
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/
s47E(d)
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001073
Last updated: 11 January 2023
JP9102 – SATCOM System
Key witness: Rear Admiral David Mann; Air Vice-Marshal David Scheul
Since First Pass, Defence has identified several scheduling risks, including:
-
the complexity associated with Defence’s first sovereign satellite communication
constellation requiring additional time to develop the Request for Tender;
-
the time required to consider five significantly different and technically complex
tender responses;
-
a national and international shortage of skilled and experienced satellite
communications engineers and logisticians, resulting in JP9102 Phase 1 remaining
under-resourced;
-
the requirement to include alternative costed options at Second Pass; and
-
the impact of COVID-19 on both Defence and industry—in particular, industry’s
ability to team and assess solutions in developing tender responses, resulting in a
three-month extension of the tender response period.
s33(a)(i)
s33(a)(i)
If pressed: How has the project progressed since the Request for Tender release?
In November 2022 Defence completed the tender evaluation and finalised the Initial
Source Evaluation Report.
On 3 April 2023 Defence announced Lockheed Martin Australia as the preferred
tenderer.
On 1 May 2023 Defence debriefed the declined tenderers (Airbus Australia Pacific,
Optus Satellite and Northrup Grumman Australia).
s47G
s47C
Defence is working with Lockheed Martin Australia to identify options to mitigate
project risk and expedite capability delivery.
If pressed: Why is the JP9102 Phase 1 project a Project of Interest?
Following an Independent Assurance Review in February 2021 Defence determined the
high-risk schedule approved at First Pass in June 2020 was no longer executable.
JP9102 Phase 1 was recommended as a Project of Interest in May 2021 due to the
project’s strategic importance, workforce availability issues, and significant schedule
challenges.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Lieutenant General John Frewen
Position: Director Space Services
Position: Chief of Joint Capabilities
Return to Index
Division: Joint Capabilities Division
Group: Joint Capabilities Group
Phone:
s22
/
s47E(d)
Phone:
s22
/
s47E(d)
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001073
Last updated: 11 January 2023
JP9102 – SATCOM System
Key witness: Rear Admiral David Mann; Air Vice-Marshal David Scheul
Defence is considering a range of mitigation strategies to address capability gaps the
forecast delay may cause and continuing to pursue the recruitment and retention of a
suitably skilled workforce.
If pressed: Why was Lockheed Martin Australia selected as the preferred tenderer?
Defence assessed the Lockheed Martin Australia tender as the best value-for-money
against the evaluation criteria published in the Request for Tender.
s47E(d)
Background
Satellite communication is a key enabler for the Integrated Force, with up to 89 current
or planned Defence Integrated Investment Program projects requiring access to
satellite communications.
On 3 April 2023 Lockheed Martin Australia was announced as the preferred tenderer
for JP9102 Phase 1. Offer Definition and Improvement Activities commenced on
2 May 2023 s47C
.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates.
The decision
to release documents is pending.
Recent Ministerial
No recent comments.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Lieutenant General John Frewen
Position: Director Space Services
Position: Chief of Joint Capabilities
Return to Index
Division: Joint Capabilities Division
Group: Joint Capabilities Group
Phone:
s22
/
s47E(d)
Phone:
s22
/
s47E(d)
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001073
Last updated: 11 January 2023
JP9102 – SATCOM System
Key witness: Rear Admiral David Mann; Air Vice-Marshal David Scheul
Relevant Media Reporting
On 18 August 2023 the Australian Broadcasting Corporation published an article by
Andrew Green titled China deploys swarm of satellites to monitor military exercises in
Australia, analysing China’s use of satellites to monitor ADF exercises like Talisman
Sabre.
On 1 August 2023 the Australian Strategic Policy Institute published an article by
Malcolm Davis titled Keeping Australia safe in space, reporting on the outcomes of the
AUSMIN meeting in Brisbane, where government leaders cited the importance of the
Space Domain.
On 3 April 2023 The Mandarin published an article by Julian Bajkowski titled Defence’s
$4bn sovereign satellite deal snared by Lockheed Martin, reporting the announcement
of Lockheed Martin as the preferred tenderer to deliver an upgrade to Australia’s
sovereign and military satellite communications capability.
On 3 April 2023 The Australian published an article by Ben Packham titled $4bn
Lockheed Martin satellite deal for defence network, reporting that Lockheed Martin
has secured the $4bn contract to deliver a next-generation satellite communications
system to the Australian Defence Force to strengthen its “networked warfare”
capabilities.
On 3 April 2023, InnovationAus.com published an article by Justin Hendry titled
Lockheed Martin lands Defence’s $4bn sovereign satellite deal, reporting Lockheed
Martin as the chosen tenderer that has secured a lucrative contract to deliver
Australia’s first “sovereign-controlled” military satellite communication constellation
Group:
Joint Capabilities Group
PDR No:
SB23-001073
Prepared by:
Cleared by Command Head:
s47E(d)
Rear Admiral David Mann
Director Space Services
Head Joint Capabilities
Ph:
s22
/
s47E(d)
Ph:
s22
/
s47E(d)
Date: 11 December 2023
Date: 12 December 2023
Consultation: Capability Acquisition &
Date: 10 December 2023
Sustainment Group
Ph: s47E(d)
Mr Michael Hunt
Assistant Secretary Space Systems Branch
Prepared By:
Cleared By:
Name: s47E(d)
Name: Lieutenant General John Frewen
Position: Director Space Services
Position: Chief of Joint Capabilities
Return to Index
Division: Joint Capabilities Division
Group: Joint Capabilities Group
Phone:
s22
/
s47E(d)
Phone:
s22
/
s47E(d)
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001073
Last updated: 11 January 2023
JP9102 – SATCOM System
Key witness: Rear Admiral David Mann; Air Vice-Marshal David Scheul
Cleared by DSR:
Mr Ciril Karo
Date: 14 December 2023
First Assistant Secretary Defence Strategic Review
Implementation
Cleared by DFG:
s47E(d)
Date: 11 January 2024
A/Assistant Secretary Finance – Specialist Groups
Cleared by Group Head:
Lieutenant General John Frewen
Date: 15 December 2023
Chief of Joint Capabilities
Ph: s22
Prepared By:
Cleared By:
Name: s47E(d)
Name: Lieutenant General John Frewen
Position: Director Space Services
Position: Chief of Joint Capabilities
Return to Index
Division: Joint Capabilities Division
Group: Joint Capabilities Group
Phone:
s22
/
s47E(d)
Phone:
s22
/
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
F-35A Lightning II (Joint Strike Fighter)
Handling Note:
Chief of Air Force, Air Marshal Robert Chipman to lead on key messages and capability.
Head of Aerospace Systems Division, Air Vice-Marshal Graham Edwards to lead on
program delivery.
Key Messages
Australia’s F-35A Lightning II combat force represents the largest and most capable
fifth-generation fighter force outside of the United States.
The Royal Australian Air Force has accepted 63 aircraft and continues to mature the
capability towards Final Operational Capability. Delivery of the final nine F-35A
Lightning II aircraft may be delayed until software testing and installation is complete.
The F-35A Lightning II delivers leading edge air defence and long range strike
capabilities as part of the Integrated Force.
The next tranche of F-35A Lightning II modernisation (being delivered by AIR6000
Phase 6 F-35A Lightning II Through Life Capability Upgrades) will be put to Government
for approval in 2024. This will ensure the F-35A Lightning II is able to realise a range of
enhanced sensors, electronic warfare and weapon capabilities resident in the Block 4
upgrade from 2025.
Defence is developing options for Government consideration as part of the National
Defence Strategy to integrate the Long Range Anti-Ship Missile and the Joint Strike
Missile onto the F-35A Lightning II at the earliest opportunity.
Fast Facts
Project Number
AIR6000 Phase 2A/B
Project Name
New Air Combat Capability
Project Schedule
Planned
Achieved
Initial Operational Capability
December 2020
December 2020
Final Operational Capability
December 2023
-
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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OFFICIAL
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Key Financial Measures (Price Basis – Budget figures provided are as at 2023-24 Portfolio
Additional Estimates Statements (2023-24 MYEFO Price Basis as at 30 November 2023)
Total Approved $16.590 billion
Project Budget
(including $2.913 billion contingency)
Detailed Acquisition Measures
Life to Date Spend
$11.833 billion (30 June 2023)
2023-24 Budget Estimate
$564 million
2023-24 Year to Date Expenditure
$143 million (30 November 2023)
2024-25 Budget Estimate
$481 million
Detailed Sustainment Measures
$500 million
2023-24 Budget Estimate
(as at October 2023, to be updated at Portfolio
Additional Estimates Statements
2023-24 Year to Date Expenditure
$176 million (30 November 2023)
2024-25 Budget Estimate
$526million (as at October 2023)
Talking Points
What has the money spent on F-35A Lightning II given Defence so far?
Australia has accepted 63 F-35A Lightning II aircraft and associated support equipment.
Australia’s F-35A Lightning II Integrated Training Centre at RAAF Base Williamtown has
been delivering all training for Air Force and contracted F-35A Lightning II personnel
since 2020. It is the largest F-35A Lightning II training facility outside of the
United States.
The F-35A Lightning II building program under Project R8000 has been delivered. The
project, worth $1.7 billion (including contingency), includes buildings, aircraft shelters
and upgraded aircraft runways and taxiways at RAAF Base Williamtown ($1.065 billion)
and RAAF Base Tindal ($650 million).
What is required for the F-35A to maintain its capability against threats?
The F-35A Lightning II contributes leading edge air combat capabilities as part of the
Integrated Force. Maintaining this capability has three parts:
Building capacity support – maturing the F-35A Lightning II logistics and support
infrastructure to grow the operational capacity of the F-35A Lightning II force.
Developing the human capability – ongoing development of the knowledge, skills
and experience of the F-35A Lightning II technical, supporting and pilot workforce
through operationally relevant training.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Preserving technical relevance – maintaining through life system upgrades and
modifications via the Project AIR6000 Phase 6, with complementary investments
in F-35A Lightning II weapons and other supporting systems.
How capable is Australia’s F-35A against regional threats?
The F-35A is Australia’s first fifth-generation air combat capability. The F-35A capability
combines an advanced fifth generation combat aircraft with a well-trained and highly
skilled workforce.
Australia intends to maintain its air combat capability edge against emerging regional
threats by investing in F-35A modernisation, aligned with the F-35A Joint Program
Office Follow-on Modernisation Plan.
Australia has deployed and operated the F-35A in Australia and overseas, with allies
including the United States, Japan, Indonesia, the United Kingdom and the Philippines.
Is F-35A Lightning II on track for Final Operational Capability in 2023?
Final Operational Capability requires delivery of all 72 aircraft. The final nine
F-35A Lightning II aircraft will be delivered in the Lot 15 configuration and are the first
to incorporate Technical Refresh 3, an upgrade to the F-35A’s computational power
necessary to support future capabilities. Developmental issues have been experienced
with the latest version of the aircraft software, and Defence is working with the
F-35A Lightning II Joint Project Office to finalise the delivery schedule.
What is the state of the F-35A Lightning II workforce?
Although most of the F-35A Lightning II workforce has successfully transitioned from
the F/A-18A/B Classic Hornet capability to F-35A Lightning II, there are shortages across
the technical, support and pilot workforces.
Australia’s F-35A capability will be dependent on Air Force’s ability to attract, retain and
generate a skilled workforce in a competitive job market.
Is Australian F-35A Lightning II sustainment affordable?
F-35A Lightning II sustainment is affordable. The revised cost estimates remain within
the overall funding allocation.
With more than eight years of operations, and more than 25,000 flying hours achieved,
sustainment estimates have proven accurate and remain aligned with the approved
sustainment budget.
How is Australia’s involvement in the global F-35A Lightning II Program helping Australian
Industry?
More than 70 Australian companies have shared in more than $4.13 billion worth of
contracts as part of the global F-35A Lightning II Program (as of October 2023).
Funding for the Joint Strike Fighter Industry Support Program increased from
$4 million at program launch in December 2020, to $64 million on 8 December 2021.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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Phone:
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OFFICIAL
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
An additional $36.4 million of funding was secured from the AIR6000 Phase 2A/B
approved scope to help Australian companies develop new and improved capabilities
that will increase their chances of securing contracts in the global F-35A Lightning II
Program.
The Government, in conjunction with BAE Systems Australia, will deliver an Aircraft
Coating Facility to maintain and apply the stealth coating of Australia’s
F-35A Lightning II aircraft using specialised paint. The establishment of Australia’s first
dedicated stealth coating facility will maintain the capability of Australia’s
F-35A Lightning II and deliver enhanced military preparedness and resilience through a
strengthened national industrial base.
Defence Strategic Review Recommendations for F-35A Lightning II
The Government agreed in principle with the Defence Strategic Review
recommendation to integrate the Long Range Anti-Ship Missile and Joint Strike Missile
capabilities onto the F-35A Lightning II.
The F-35A Lightning II Joint Program Office, on behalf of Defence, has contracted the
integration of the Long Range Anti-Ship Missile onto the F-35A Lighting II. Defence is
also working with the F-35A Lightning II Joint Program Office, the United States and
Norway to confirm the pathway be included in the integration of the Joint Strike Missile
onto the F-35A Lightning II. Integration of these weapons will require the
F-35A Lightning II Block 4 hardware and software configuration and government
approval for additional investment.
Does Defence need to reassess the sustainment strategy for F-35A in light of recent United
States’ Government Accounting Office reporting?
Defence is aware of the September 2023 United States’ Government Accounting Office
Report that discussed the sustainment strategy for the F-35A Lightning II.
The Joint Program Office is working with the United States armed services and partners
to improve sustainment across the F-35A enterprise. Current initiatives focus on
increasing the number of repair venues, improving maintenance practices and
optimising supply chains.
The establishment of engine and airframe component repair venues in Australia is part
of the Joint Program Office’s strategy to enhance capacity and resilience. Establishing
these venues will provide critical support for partners operating in the Asia Pacific and
supplement United States-based repair venues.
The Asia Pacific regional depot at Williamtown will enable the continuous
modernisation of Australia’s fleet of F-35A Lightning II aircraft. The depot’s capacity is
increasing in line with capability needs for the global fleet.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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Phone:
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OFFICIAL
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
F-35A Program Cost Increases
A May 2023 United States Government Accounting Office report identified the total
cost of F-35A Lightning II procurement has grown. These cost increases reflect
decisions taken by the United States F-35A Project and do not reflect corresponding
increases to the Australian F-35A Projects.
The report identified the driver for United States’ cost increases was extending the
period for aircraft acquisitions, which added years to the delivery schedule.
The report criticises a lack of congressional oversight of United States’ Block 4 upgrade
costs. By contrast, the Government has oversight of Block 4 upgrade costs, funded
through a standalone and discrete project: AIR6000 Phase 6 F-35A Lightning II Through
Life Capability Upgrades.
F-35A Engine and Cooling Improvements
The May 2023 United States Government Accounting Office report raised concern
about oversight of F-35A engine and cooling improvement options.
In Australia, Defence maintains oversight of engine and cooling improvements that may
apply to Australia’s F-35As. As a participant in the F-35A program, Australia is funding a
proportion of the initial engineering analysis that will inform propulsion modification
options.
The United States F-35A Joint Project Office confirmed that engine and cooling
modifications will be necessary to support Block 4 capabilities and reduce the engine
through-life sustainment cost. s47C
.
Background
Initial Operating Capability, declared on 28 December 2020 was defined as one
operationally-ready squadron and one unit providing a sovereign training capability.
The number of trained F-35A Lightning II pilots meets interim project milestones;
however, future milestones are trending below planned numbers. Pilot training
improvements are being assessed across Air Force.
Since 2019 the Australian F-35A Lightning II has participated in 19 exercises in Australia
and 18 exercises overseas, where introduction into service testing was completed.
The average cost of Australia’s first 63 aircraft (airframe and engine, excluding mission
systems) is USD $84 million.
Lot 15 contract details announced in the United States
The cost of Australia’s nine remaining Lot 15 aircraft, USD $83 million, increased from
Lot 14 , USD $78 million, due to global inflation and a substantial increase in software
and hardware capabilities compared to previous Lots.
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
F-35A Lightning II accidents
Air Force is immediately notified of F-35A Lightning II accidents to inform decisions on
Australian F-35A Lightning II operations. It is not appropriate for Air Force to make
accident findings relating to other nations’ use of F-35A Lightning II capability public.
Australia has no concerns regarding the safety of Australian F-35A operations.
F-35B Lightning incidents
In response to a United States F-35B incident at Lockheed Martin’s Fort Worth facility
on 15 December 2022 the F-35A Lightning II Joint Program Office suspended new F-35A
engine deliveries. The modification that rectified the issue has been incorporated on
the production line and aircraft deliveries have resumed.
Air Force is aware of the reports that a United States Marine Corps F-35B Joint Strike
Fighter aircraft was involved in an incident in South Carolina on 17 September 2023.
Australia is monitoring the situation but, at this time, has no concerns regarding
Australian F-35A operations.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
In October 2023 an individual sought access under freedom of information for a copy
of the ministerial brief that informed the decision and discussion at the Expenditure
Review Committee. TThe decision to release documents is pending.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 2 January 2024 the RIOTACT published an article titled F-35 Joint Strike Fighter
program facing ‘significant issues' again. Journalist Andrew McLaughlin reports that
F-35 Joint Strike Fighter program is facing a potential production shutdown due to
delays in its next major upgrade.
On 11 October 2023 The Australian published a report titled Israel shows Marles has
big decisions to make. Journalist Robert Gottliebsen reports that Air Force pilots are
concerned about F-35A crashes and equipment failures, and that the F-35A is
outclassed by the Chinese J-20.
On 6 October 2023 the NT News published an article titled Delivery of F-35A fleet on
schedule. Journalist Charles Miranda reports that while delivery of Air Force’s
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001074
Last updated: 18 December 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
remaining F-35A Lightning II aircraft could be delivered in 2023, workforce shortages
will restrict Air Force’s ability to operate all available aircraft at high tempo.
Division:
Air Force
PDR No:
SB23-001074
Prepared by:
Cleared by Division Head:
Air Commodore Ross Bender
Air Vice-Marshal Wendy Blyth
Director General Air Combat Capability
Head of Air Force Capability
Mob:
s22
Ph:
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Mob:
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Ph:
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Date: 1 December 2023
Date: 11 December 2023
Consultation:
Air Vice-Marshal Graham Edwards
Date: 29 November 2023
Head of Aerospace Systems Division
Mob:
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Ph:
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Capability Acquisition and Sustainment
Group
Cleared by CFO and DSR:
Major General Matthew Pearse
Date: 29 November 2023
ADF Integration Lead
Defence Strategic Review Implementation Task Force
Lynette Daly
Date: 12 December 2023
Assistant Secretary Finance – Air Force
Cleared by 3*:
Date: 15 December 2023
Air Marshal Robert Chipman
Chief of Air Force
Air Force
Prepared By:
Cleared By:
Name: Air Commodore Ross Bender
Name: Air Marshal Robert Chipman
Return to Index
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
Special Purpose Aircraft
Handling Note: Chief of Air Force, Air Marshal Robert Chipman to lead.
Key Messages
Travel using Special Purpose Aircraft is available to the Governor-General,
Parliamentarians, senior Defence officials and international dignitaries in support of
official responsibilities.
Air Force has drafted an update to the Guidelines for the use of Special Purpose Aircraft,
incorporating the outcomes of security advice provided by the Australian Federal
Police’s Security Coordination Committee. Further consultation is occurring with
external stakeholders to consider aspects of accountability and transparency.
Talking Points
The Special Purpose Aircraft fleet ensures authorised persons can transit efficiently and
securely to fulfil parliamentary and international duties, supporting Australia’s position
as an important diplomatic partner in our region and the world.
Defence does not make decisions on the priority of tasks. When capacity limitations
arise and all tasking requests cannot be satisfied, advice is sought from the
Government as to which tasks are to be completed.
Approval processes for the use of Special Purpose Aircraft are outlined in the Guidelines
for the Use of Special Purpose Aircraft.
Why has it taken/is it taking so long to publish the updated Guidelines?
The review and update of the Guidelines for the Use of Special Purpose Aircraft has
incorporated recommendations from a security review led by the Australian Federal
Police, and endorsed by the Security Coordination Committee.
What were the findings of the Australian Federal Police security review?
The Security Coordination Committee, which comprised officials from the Department
of the Prime Minister and Cabinet, Attorney-General’s Department, Australian Security
Intelligence Organisation, Department of Home Affairs, Department of Defence and the
Australian Federal Police endorsed the recommendations of the security review in
March 2023. The Deputy Chief of Air Force represented Defence at this Committee.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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OFFICIAL
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
Updated draft Special Purpose Aircraft guidelines reflecting outcomes from the Security
Coordination Committee are being considered by an inter-departmental working
group, led by the Department of Finance. The working group consists of officials from
the Department of Finance, Department of Defence, Home Affairs and the Australian
Federal Police. The aim of the working group is to produce updated draft guidelines
consistent with each Department’s accountability, balancing the application of the
security advice with the need for transparency and accountability.
Why did it take so long to publish the Schedules of Special Purpose Flights?
The Guidelines for the Use of Special Purpose Aircraft dictate the reporting format and
process for schedule production. Schedules of Special Purpose flights were published
on the Defence website in the new format on 18 August 2023. The Schedules published
in August were found to contain data errors, which were revised, with the corrected
Schedules then being re-published on 20 December 2023. The new format was
developed in consultation with the Office of the Deputy Prime Minister. This new
format complies with security advice received from the Australian Federal Police’s
Security Coordination Committee.
The pause in publishing Schedules was a decision reached in consultation with the
former Minister of Defence. This was due to concerns that publishing the data in that
format would establish a pattern of life and compromise the security of High Office
Holders.
When was Government agreement provided for replacement of the Special Purpose Aircraft
fleet?
Agreement to lease two new replacement medium-capacity 737-8 Boeing Business Jet
aircraft was provided by the former Prime Minister on 18 December 2021.
Replacement of the current Boeing Business Jets with two new similar capacity
737-8 aircraft represents better value-for-money than the retention and refurbishment
of the aging Boeing Business Jets beyond lease expiry in 2024.
Will the recent 737-9 door ‘blow out’ impact airworthiness for the replacement Boeing
Business Jet?
The airworthiness issue only affects a subset of 737-9MAX aircraft fitted with a plug to
the mid-cabin exit door. The new Special PA aircraft are 737-8 model aircraft and do
not have this configuration.
Does the replacement Special Purpose Aircraft lease cost more than the existing fleet?
Yes. The current Boeing Business Jet aircraft are now more than 20 years old. The
2023-24 lease cost for the current Boeing Business Jet fleet is $5.5 million per annum.
The 2024-25 lease cost for the 737-8 Boeing Business Jets is forecast to be
$36.4 million per annum. Funding for the increased lease cost will be provided via the
Air Force sustainment budget.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
The cost of the lease for the current Boeing Business Jet fleet, which is on its third lease
extension, reflects the aircraft age and low residual value.
The replacement Special Purpose Aircraft are new aircraft and are expected to enter
service in May-June 2024 and September-October 2024 respectively.
Is Air Force working with the Independent Parliamentary Expenses Authority to conduct cost
recovery?
Yes. Air Force is sharing information with Independent Parliamentary Expenses
Authority to conduct cost recovery activity.
Do members of the Government travel on Special Purpose Aircraft with pets?
Historically, Special Purpose Aircraft have transported animals in accordance with
relevant policies.
How many times has the Prime Minister travelled with pets on board Special Purpose
Aircraft?
Air Force does not maintain records of animals transported on the Special Purpose
Aircraft. That is a matter for the Prime Minister.
What policy governs the carriage of pets on Special Purpose Aircraft?
The Air Force Air Movements Manual outlines the requirements for the carriage of dogs
belonging to VIPs on Special Purpose Aircraft.
Background
Special Purpose Aircraft have flown entitled persons since 1959. Special Purpose
Aircraft support the Government to conduct business in a timely, efficient and secure
manner.
Special Purpose Aircraft enable Government business to continue when commercial
options are not suitable. The aircraft afford passengers an efficient and secure
transport option with reduced transit times. Cabin security and secure communications
allow Government passengers to continue working during flight.
Key Facts and Figures
The permanently-designated Special Purpose Aircraft fleet comprises three ‘small’
Dassault Falcon 7X, which can carry up to 13 passengers and two ‘medium’ 737 Boeing
Business Jets, capable of carrying up to 26 passengers. These aircraft are operated by
Number 34 Squadron located at Defence Establishment Fairbairn, Canberra. The new
737-8 Boeing Business Jets will have a seating capacity of up to 32 passengers. The
support contractor for all five aircraft is Northrop Grumman Australia.
The Special Purpose Aircraft fleet is supplemented by one large capacity ‘Government
Transport and Communications’ modified KC-30A aircraft operated by Number 33
Squadron from Royal Australian Air Force Base Amberley.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
When tasked, additional costs incurred by the Special Purpose Aircraft comprise aircraft
flying costs, aircraft handling at civil airports and catering. Defence revises the
‘additional cost’ per hour of the Special Purpose Aircraft each financial year.
The 2022-23 additional cost to operate the Falcon 7X or 737 Boeing Business Jet was
$4,135 per hour, based on 2021-22 costs. Defence is currently revising this cost to
reflect current operating costs and to finalise the 2023-24 additional cost.
Defence is leasing two replacement 737-8 Boeing Business Jets to ensure continuity in
the provision of medium-capacity Special Purpose Aircraft capability when the existing
Boeing Business Jets are withdrawn.
Medium Special Purpose Aircraft Replacement
A review of the medium-capacity Special Purpose Aircraft capability assessed replacing
the current Boeing Business Jets with two new medium capacity 737-8 aircraft
represents better value for money than retaining and refurbishing the Boeing Business
Jets beyond lease expiry in 2024.
The 737-8 Boeing Business Jets meet or exceed all current Boeing Business Jet
capabilities. They are the only viable solution to meet the future requirements of the
medium-capacity Special Purpose Aircraft capability.
The 737-8 Boeing Business Jet was the only tendered option that can carry the required
number of people the required distance, with appropriate amenities for the medium-
capacity Special Purpose Aircraft role.
The 737-8 Boeing Business Jet can transport up to 32 passengers, with fewer refuelling
stops and improved amenities than the current aircraft. Improved amenities will allow
for appropriate work and rest on-board for both passengers and crew, and include lie-
flat seating, reduced cabin altitude and a crew rest facility on-board.
Manifests, Tabling and Reporting Requirements
In accordance with the Guidelines for the Use of Special Purpose Aircraft 2013, and the
proposed revised Guidelines, Defence is responsible for compiling the Schedule of
Special Purpose Flights. In November 2022 the Australian Federal Police advised the
Deputy Prime Minister of concerns regarding the level of information contained in
Special Purpose Aircraft schedules.
Following this advice, the Office of the Deputy Prime Minister requested Air Force
engage the Australian Federal Police to undertake a security review of the Special
Purpose Aircraft guidelines.
On 1 March 2023 the Australian Federal Police held a meeting of the Security
Coordination Committee, attended by the Deputy Chief of Air Force and
representatives from other relevant agencies. The committee approved the proposal
endorsed by the Security Coordination Group with adjustments.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
On 27 June 2023 the Office of the Deputy Prime Minister endorsed the revised
Special Purpose Aircraft schedule format incorporating outcomes of the security
review.
Defence published quarterly schedules in a new format that complied with the
recommendations of the Security Coordination Committee on its website. These
covered the period 1 January 2021 to 30 June 2023.
Shortly after the schedules were published it was identified the costs associated with
the Schedule of SPA Flight April-May 2022 – Election Supplement had contained
incorrect costing data for chartered aircraft.
In order to determine the scale of this issue, and to check if the other published
schedules were affected, Defence conducted a review of the published Schedules from
January 2021 to June 2023.
The Schedules were found to contain errors, due to a combination of corrupted data
produced by VIPFLY and also issues related to incomplete checks and balances.
A compilation of verified data for the January 2021 to June 2023 period was established
following a flight by flight review of the data. Defence published the updated Special
Purpose Aircraft schedules to the Defence website on 20 December 2023.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
In Q
QoN 29, Senator Bridget McKenzie (Nationals, Victoria) asked for information on
regulations and whether passengers may bring animals on board Special Purpose
Aircraft.
In Q
QoN 30, Senator Bridget McKenzie (Nationals, Victoria) asked what other
requirements there are for the transport of animals on Special Purpose Aircraft.
In Q
QoN 31, Senator Bridget McKenzie (Nationals, Victoria) asked who is responsible for
the animal between the Special Purpose Aircraft and the departure gate and
expectations around pet restraints.
In Q
QoN 98, Senator Bridget McKenzie (Nationals, Victoria) requested specific
information on when the Prime Minister’s dog Toto travelled on Special Purpose
Aircraft, and when the requests were made.
Freedom of Information (FOI) Requests
In November 2023 a journalist sought access to documents relating to the Prime
Minister’s preferred menu on Royal Australian Air Force VIP flights, including special
requests and preferred drinks, correspondence to or from his office on preferred
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
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Group/Service: Air Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
refreshments and whether a dog has ever boarded the plane and if so, when. D
Decision
pending.
In November 2023 an individual sought access to all Senate Estimates briefs, ministerial
submissions, ministerial briefs and correspondence with the Department of the Prime
Minister and Cabinet relating to Special Purpose Aircraft. In addition, the individual
sought access to briefs and minutes for the Secretary, Chief of Air Force Deputy
Secretary Capability Acquisition and Sustainment, regarding the new Boeing 737
Business Jets (Special Purpose Aircrafts) scheduled for delivery in 2024. The period for
the request is since 1 June 2022. D
Decision pending.
In October 2023 an individual sought access to a schedule of special purpose flights
undertaken by the Minister for Indigenous Australians and the Assistant Minister for
Indigenous Australians from 21 May 2022 showing departure and arrival date, location,
passengers, cost. The request also sought a summary of July to September 2023
showing domestic and international hours logged and cost for special purpose flights
for the Minister for Indigenous Australians and the Assistant Minister for Indigenous
Australians. D
Document and decision released to the applicant on 8 December 2023.
Between August 2023 to October 2023, Defence received 20 Freedom of Information
(FOI) requests relating to Special Purpose Aircraft (SPA). The FOI requests sought
documents or correspondence over various specified date periods relating to:
-
special menu/beverage requests on VIP flights (one request)
-
animals travelling on SPA (one request)
-
processing of Defence FOI requests (two requests)
-
the use of SPA, the withholding of flight schedules and policy (five requests)
-
flight details, passenger manifests and costs associated with VIP flights, including
for specific Members of Parliament (11 requests).
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 20 December 2023 News.com.au published an online article titled Anthony
Albanese spent nearly $4m on VIP flights in first year as PM. Journalist Eleanor
Campbell and Ellen Ransley state the Prime Minister clocked up a bill of $4 million in his
first year as PM IAW the newly released data. They also discuss the Deputy Prime
Minister’s flights and other politician expenses.
On 20 December 2023 News.com.au published an online article titled ‘Stitched up’:
How much Deputy PM Richard Marles really spent on VIP Flights. Journalist Samantha
Maiden writes that supporters of the Deputy Prime Minister claim he’s been ‘stitched
up’ as the true cost of his VIP flights comes out. The article states he spent $3 million as
opposed to $3.6million.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
On 20 November 2023 News.com.au published an online article titled Deputy Prime
Minister Richard Marles on taxpayer funded trip to cricket World Cup final. Journalist
Samantha Maiden says Deputy Prime Minister Richard Marles took a 2,000 kilometre
round trip on a taxpayer-funded flight to watch the Cricket World Cup on Sunday in
India. The Deputy Prime Minister and Foreign Minister Penny Wong travelled to India
to co-chair the 2nd India-Australia 2+2 Ministerial Dialogue with Defence Minister
Rajnath Singh in New Delhi.
On 25 October 2023 the NT News published an online article titled Defence chiefs
reveal VIP flight data on politicians’ travel published online is ‘corrupted’. Journalist
Samantha Maiden cites Secretary Moriarty and Air Marshal Chipman at Senate
Estimates regarding the corruption of Special Purpose Aircraft flight data published on
the Defence website, and the potential inaccuracy of Special Purpose Aircraft costs
attributed to ministers. The article had 13 News Corp syndications.
On 25 October 2023 The Newcastle Herald published an article titled It's hardly a dog's
life for the PM's jetsetting pooch. Journalist Dominic Giannini cites the Senate
Estimates exchange between Senator McKenzie and Air Marshal Chipman pertaining to
pets travelling on Special Purpose Aircraft aircraft. The article was widely syndicated,
both domestically and overseas, by Australian Community Media (77 syndications).
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
Division:
Air Force
PDR No:
SB23-001075
Prepared by:
Cleared by Division Head:
Air Commodore Leanne Lee,
Air Vice-Marshal Wendy Blyth,
Director General Air Capability Enablers
Head of Air Force Capability
Air Force
Air Force
Mob:
s22
Ph:
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Mob: s22
Ph: s47E(d)
Date: 4 December 2023
Date: 11 December 2023
Consultation:
Air Commodore David Houghton
Date: 7 December 2023
Acting Deputy Chief of Air Force
Mob:
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Ph:
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Consultation:
s47E(d)
Date: 28 November 2023
Deputy Director – Special Purpose Aircraft
Mob:
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Ph:
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Air Capability Enablers Branch - Air Force
Headquarters
Consultation:
Air Vice-Marshal Graham Edwards,
Date: 1 December 2023
Head Aerospace Systems Division
Mob:
s22
Ph:
s47E(d)
Capability and Sustainment Group
Cleared by Deputy Secretary:
Air Marshal Robert Chipman
Date: 12 February 2024
Chief of Air Force
Air Force
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
Questions on notice referred to within the brief:
Supplementary Budget Estimates 25 October 2023
Senator Bridget McKenzie
Question Number: 29
Date question was tabled: Not yet tabled.
Question
Senator McKENZIE: ... Moving to another issue, under the Civil Aviation Safety Regulations,
airline operators and the pilot in command are responsible for the safety of the flight and for
making decisions on whether passengers may bring animals on an aircraft. Do similar
regulations operate for the special purpose aircraft?
Air Marshal Chipman: Yes, it does. I have a policy in the Air Force air movements manual that
specifically goes to the carriage of animals on special purpose aircraft.
Senator McKENZIE: Right. I don't have that policy.
Air Marshal Chipman: I can provide it to you on notice.
Answer
Not yet tabled.
Supplementary Budget Estimates 25 October 2023
Senator Bridget McKenzie
Question Number: 30
Date question was tabled: Not yet tabled.
Question
Senator McKENZIE: ... Is the transport of animals on SPAs a recent occurrence, or is it
something that has occurred in the past, bearing in mind that the Governor-General—or her
excellency—may choose to bring his cat?
Air Marshal Chipman: No, I am aware that there is a history of VIPs travelling with pets on VIP
aircraft, yes.
Senator McKENZIE: Okay. The issue gets curiouser and curiouser. So there are no special
requirements, only that said animal is restrained for the safety of passengers.
Air Marshal Chipman: That is one of the requirements. There are other requirements.
Senator McKENZIE: What are the other requirements?
Air Marshal Chipman: I don't have them specifically. I can get them to you.
Senator McKENZIE: That would be great
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001075
Last updated: 12 February 2024
Special Purpose Aircraft
Key witnesses: Air Marshal Robert Chipman
Supplementary Budget Estimates 25 October 2023
Senator Bridget McKenzie
Question Number: 31
Date question was tabled: Not yet tabled.
Question
Senator McKENZIE: When the SPA lands, who is responsible then for the animal, between the
SPA and the departure gate—the owner or the captain or the ground crew?
Air Marshal Chipman: The pet is travelling with the owner.
Senator McKENZIE: Right. It's not your expectation that the pets are restrained as everyone
else's pets have to be on commercial flights?
Air Marshal Chipman: There are guidelines in our Air Force air movements manual that
outline how the animals need to travel on special purpose aircraft. I don't specifically have
them with me. I can get that information for you.
Senator McKENZIE: Is someone behind you with a laptop able to give them to you?
Air Marshal Chipman: I've asked for that information, yes.
Senator McKENZIE: Thank you.
Answer
Not yet tabled.
Supplementary Budget Estimates 25 October 2023
Senator Bridget McKenzie
Question Number: 98
Date question was tabled: Not yet tabled.
Question
1. On what dates was the Prime Minister’s dog ‘Toto’ on board Special Purpose Aircraft?
2. Does the Prime Minister’s office request permission for Toto before each flight on which
the canine is travelling?
3. Was the request for Toto made prior to the Prime Minister and travelling being picked up
on Sunday 22nd May? Or was the request made at the airport?
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Air Commodore Leanne Lee
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Return to Index
Division: Air Force
Group/Service: Air Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023
AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
AUKUS Advanced Capabilities
Handling Note:
Deputy Secretary, Strategy, Policy, and Industry, Hugh Jeffrey, to lead.
First Assistant Secretary, AUKUS Advanced Capabilities, Stephen Moore, to support on
capability progress, resourcing, industry, academia and enabling environment.
First Assistant Secretary, Defence Industry Policy, David Nockels, to support on
technology transfer and the Defence Trade Controls Amendment Bill 2023.
Questions on nuclear-powered submarines should be directed to the Australian
Submarine Agency.
Key Messages
AUKUS is an enhanced defence and security partnership between Australia, the United
Kingdom and the United States.
Australia’s participation in AUKUS is part of a multi-generational effort to enhance our
sovereign development of advanced capabilities and is a necessary and prudent
response to the military build-up in the Indo-Pacific.
The two AUKUS pillars, conventionally armed, nuclear-powered submarines and
advanced capabilities, are interoperable efforts that will contribute to the near-term
and long-term security of Australia.
The second AUKUS Defence Ministers’ Meeting on 1 December 2023 was a watershed
moment for AUKUS Advanced Capabilities.
AUKUS Advanced Capabilities is drawing stronger alignment of capability systems and
the ingenuity of industry and academia across the three nations to rapidly develop and
deliver near-term asymmetric capabilities.
Talking Points
Strategic Context
AUKUS Advanced Capabilities (Pillar II) harnesses technological advances that will
harden Australia’s capability edge and support strategic deterrence in the region. It:
builds on the longstanding, trusted relationships between Australia, the United
Kingdom and the United States.
increases our collective ability to continue to preserve an international
rules-based order where the sovereignty of all states, large and small, is
respected.
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023 AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
The six capability areas chosen are those that will make the most significant
contribution to the future of war fighting: undersea warfare; electronic warfare;
hypersonics and counter-hypersonics; advanced cyber; quantum technologies; and
artificial intelligence and autonomy. These capabilities will:
build resilience and increase survivability for Defence personnel;
convey and protect critical information to enhance operational decision-making;
and
enable our seamless operation with the United Kingdom and the United States.
One of the Government’s six immediate priorities in response to the Defence Strategic
Review is lifting our capacity to rapidly translate disruptive new technologies into ADF
capability, in close partnership with Australian industry, including through AUKUS.
Capability Progress and New Deliverables
On 2 December 2023 the Deputy Prime Minister and his United Kingdom and United
States counterparts issued a joint statement welcoming the solid progress made on
AUKUS Advanced Capabilities.
In 2023 AUKUS partners successfully conducted testing and demonstration of
artificial intelligence and autonomy, a common command and control
architecture and autonomous undersea warfare capabilities.
Further trials of advanced capabilities are planned for 2024 and beyond.
Through these demonstrations, AUKUS partners combine resources and expertise
to translate today’s emerging technologies into tomorrow’s military edge.
New projects unveiled at the AUKUS Defence Ministers’ Meeting include Deep Space
Advanced Radar Capability, the AUKUS Maritime Autonomy Exercise Series, using
artificial intelligence to analyse trilateral sonobuoys data and establishing trilateral
requirements through the International Joint Requirements Oversight Council.
These initiatives highlight the breadth and depth of Pillar II collaboration with a
clear focus on further strengthening joint capabilities and integrated deterrence.
AUKUS partners are also stepping up collaboration between our respective defence
innovation and industry sectors in 2024.
This builds upon the industry engagement that has occurred to date, and on industry’s
existing engagement in Pillar II activities, such as the Artificial Intelligence and
Autonomy trial in April 2023.
These efforts will further integrate our three nations’ capability, industry and
innovation systems and change how we rapidly develop and field advanced capabilities.
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023 AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
Enabling Environment and Technology Transfer
AUKUS Advanced Capabilities is driving reform of the enabling environment for
capability development.
Achieving alignment among three different systems has the potential to deliver as
much impact for AUKUS partners as the capabilities themselves.
AUKUS partners are streamlining the flow of defence trade, including establishing an
export licence-free environment to improve the speed and scale of technology transfer.
Industry and Academia Engagement
AUKUS partners share a collective vision for a well-informed trilateral industrial base
that is collaboratively solving operational problems and delivering at the pace of
relevance.
In 2023 AUKUS partners have increased engagement with industry within and
across our national systems at both classified and unclassified levels.
These include trilateral presence at international trade shows and national
classified briefings.
We expect these engagements to continue through 2024.
AUKUS partners agreed to support the AUKUS Defence Investor Network.
We welcome this group initiated by investor networks in all three countries to
strengthen financing and facilitate targeted industry connectivity.
The network establishes an interface between AUKUS governments and capital
markets.
To complement ongoing engagement, AUKUS partners agreed to establish the AUKUS
Advanced Capabilities Industry Forum.
With trilateral government and industry representatives, the Forum will help
inform policy, technical, and commercial frameworks to facilitate the
development and delivery of advanced capabilities.
The first meeting of the Forum will occur in the first half of 2024.
AUKUS partners also agreed to an Innovation Challenge Series - a new mechanism to
enable governments, industry, and academia to co-design solutions to operational
problems.
In Australia, the Innovation Challenge Series will be administered by the
Advanced Strategic Capabilities Accelerator (ASCA) with the first challenge being
released in the first quarter of 2024.
If pressed: Will additional partners be able to join AUKUS?
In due course, we see value in Pillar II engaging with other countries where there is
mutual capability benefit, and strategic alignment.
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023 AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
Further to Deputy Prime Minister’s commitment to brief New Zealand on AUKUS
Pillar II, we are sending officials to Wellington to provide further information in
the coming weeks.
For now, AUKUS partners are focused on embedding and institutionalising a sustainable
trilateral partnership that meets the strategic needs of our three nations.
If pressed: Is space a new area of focus under AUKUS Advanced Capabilities?
No. The Deep Space Advanced Radar Capability is a separate project that has benefited
from AUKUS. Space is not being added to Pillar II’s existing capability areas of focus.
AUKUS partners will pursue projects in other areas where it makes sense to do so.
If pressed: What is the link between AUKUS and China?
Australia’s sovereign capability development under AUKUS is a prudent response to the
strategic circumstances we are facing.
AUKUS is not about any one country.
If pressed: Does artificial intelligence lead to ‘killer robots’?
These capabilities can deliver lethal effects if required.
Australia will always have sufficient human involvement to ensure they are used
responsibly and ethically, and in a manner that complies with Australia’s obligations
under international law, including international humanitarian law.
If pressed: How will Australian defence industry benefit from AUKUS Advanced Capabilities?
AUKUS Advanced Capabilities seek to create a seamless Defence industrial base
between AUKUS partners, which will not only permit but also encourage direct
partnerships between Australian, United States and United Kingdom companies.
This will be transformative for Australian defence industry across a broad
spectrum of technologies.
AUKUS partners have also identified opportunities where we can leverage technological
solutions in the commercial world to deliver military capabilities.
The Innovation Challenge Series is an initiative to this effect. The first challenge,
focused on electronic warfare, will be an opportunity for Australian defence
industry to engage in Pillar II.
Australian industry has already participated in Pillar II activities, such as the
involvement of Boeing/Insitu Pacific in the Artificial Intelligence and Autonomy trial in
the United Kingdom.
If pressed: How will AUKUS Advanced Capabilities be funded?
As part of the Government’s response to the Defence Strategic Review an inaugural
National Defence Strategy will be undertaken in 2024.
The 2024 National Defence Strategy will encompass a comprehensive outline of
Defence policy, planning, capabilities, and resourcing, including reprioritisation of
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023 AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
the Integrated Investment Program, to align with the intent and
recommendations of the Defence Strategic Review.
AUKUS Pillar II will be delivered through the Defence Integrated Investment Program.
The Government is also investing $900 million over the next four years for Defence
innovation, including through AUKUS Pillar II.
Through this work, Defence is conducting further cost and workforce estimation to
determine future AUKUS Advanced Capabilities resourcing requirements.
If pressed: What is the current staffing profile of AUKUS Advanced Capabilities Division?
The allocated staffing level for the AUKUS Advanced Capabilities Division is 20 full-time
equivalent staff, including the First Assistant Secretary, AUKUS Advanced Capabilities.
If pressed: Will AUKUS impact Australia’s sovereignty?
No. Australia will maintain absolute sovereignty of any military capabilities it acquires,
including under AUKUS.
Partnerships like AUKUS expand our strategic options, make us less vulnerable to
coercive action and enable Australia to pursue national security interests far beyond
what could be achieved alone.
If pressed: Does AUKUS commit Australia to support the United States in a conflict with China
over Taiwan?
No. The Deputy Prime Minister has been unequivocal on this matter.
Decisions about the employment of military capability will always be a decision for the
Government of the day.
If pressed: What does AUKUS mean for our partners in the region?
Australia has a long history of upholding the international rules based order, and
working with partners to support a secure, resilient and prosperous Indo-Pacific.
AUKUS reaffirms our commitment to these objectives and our ongoing
contribution to stability.
Australia remains committed to our existing network of international partnerships,
including the Association of Southeast Asian Nations, the Pacific Islands Forum and
other bilateral and multilateral fora.
Supporting Information
Questions on Notice
Budget Estimates: 25 October 2023
QoN 37, AUKUS Pillar II headcount, Senator James Paterson (Liberal, Victoria) asked
about total staff of AUKUS Advanced Capabilities Division, including vacancies.
QoN 38, AUKUS Pillar II origin of staff, Senator James Paterson (Liberal, Victoria) asked
about the origin of AUKUS Advanced Capabilities Division staff.
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
s47E(d)
/
s22
Phone:
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Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023
AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
QoN 39, AUKUS Pillar II organisational chart, Senator James Paterson (Liberal, Victoria)
asked about organisational structure of AUKUS Advanced Capabilities Division.
Freedom of Information (FOI) Requests
In November 2023 an individual sought access under FOI to Defence’s finalised
estimates briefing pack for the Senate Budget Estimates hearings of the Foreign Affairs,
Defence and Trade Committee, 23 – 27 October 2023, including the AUKUS Advanced
Capabilities brief. TThe decision to release documents is pending.
In July 2023 an individual sought access under FOI to documentation relating to how
the AUKUS alliance might proceed if Donald Trump returns to the presidency in the
United States. N
No documents were found within the scope of the request.
In May 2023 an individual sought access under FOI to the signed AUKUS agreement.
Access to all five documents was refused under sections 33(a)(i), 33(a)(ii) and 33(a)(iii)
of the FOI Act. IIn July 2023 the individual appealed to the Office of the Australian
Information Commissioner, contesting the decision. This process remains underway.
Recent Ministerial Comments
On 2 December 2023 the Deputy Prime Minister, the Secretary of Defense of the
United States and the Secretary of State of Defence of the United Kingdom released a
joint statement welcoming AUKUS progress and announcing new Pillar II projects.
On 9 February 2023 the Deputy Prime Minister delivered a speech on securing
Australia’s sovereignty, with reference to AUKUS promoting and strengthening our
sovereignty.
Relevant Media Reporting
On 4 December 2023 The Australian Financial Review published an article by Matthew
Cranston titled China sonar incident gives AUKUS a push, discussing the undersea
capabilities that will help AUKUS detect and track adversaries’ submarines.
On 2 December 2023 The Brisbane Times published an article by Lisa Visentin titled
‘Need for speed’: AUKUS ramps up AI, drones and deep-space technologies, discussing
comments made by the Deputy Prime Minister while in California about the
importance of moving at pace for AUKUS.
On 2 December 2023 ABC News published an article by Andrew Greene titled New
AUKUS space facility being built near Exmouth in Western Australia's remote north-
west, discussing AUKUS efforts to improve ‘deep-space object tracking’ through the
Deep Space Advanced Radar Capability program.
On 1 December 2023 The Sovereign Australian Prime Alliance and Australian Industry
and Defence Network published a report titled Developing Australia’s Defence Industrial
Base, recommending ‘AUKUS Pillar Two deliver now by setting industry to work.’
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023 AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001076
Prepared by:
Cleared by Division Head:
Colin McKenna
Stephen Moore
Assistant Secretary
First Assistant Secretary
AUKUS Initiatives Branch
AUKUS Advanced Capabilities
Mob:
s22
Ph:
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Mob:
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Ph:
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Date: 6 December 2023
Date: 12 December 2023
Consultation:
Kylie Wright
Date: 5 December 2023
Assistant Secretary Defence Industry
International Policy
Consultation:
Alexandra Stevenson
Date: 6 December 2023
Assistant Secretary Quad and AUKUS Policy
Department of the Prime Minister and
Cabinet
Consultation:
s47E(d)
Date: 6 December 2023
Assistant Director General International
Engagement, Strategy, and Policy,
Australian Submarine Agency
Cleared by DSR:
s47E(d)
Date: 4 December 2023
Director, National Defence Strategy
(Strategy, Capability and Budget)
Policy and Engagement Division
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001076
Last updated: 19 December 2023
AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
Questions on notice referred to within the brief:
Supplementary Budget Estimates
Senator James Patterson
Question Number: 37
Date question was tabled: Not yet tabled
Question
Senator PATERSON: Excellent. I think that's very sensible. How many personnel do you have
working to you, Mr Moore, both ADF and bureaucratic?
Mr Moore: They're all civilian—about 19.
Senator PATERSON: Are there any vacancies in your team, or is that at full strength?
Mr Moore: There are a few vacancies. We're currently in the process of filling those. It has
been full strength in the past—numbers fluctuate, as you might expect. At the moment,
there are a couple of vacancies, yes.
Senator PATERSON: What is your full strength?
Mr Moore: Nineteen is full strength.
Senator PATERSON: How many people do you have now, then, if 19 is full strength?
Mr Moore: Let me take it on notice for you. I think we've got about three vacancies.
Answer
Not yet tabled.
Supplementary Budget Estimates
Senator James Patterson
Question Number: 38
Date question was tabled: Not yet tabled
Question
Senator PATERSON: Understood. Have most of them been drawn from other parts of
Defence to build this team? Have they been transferred internally, or are they new hires from
external sources?
Mr Moore: It's a variety. Some of them have had careers in Defence for some time. Some are
new hires from other agencies.
Senator PATERSON: Are any from the private sector or academia or completely external
hires?
Mr Moore: We may have one that is new to the Public Service. I'd have to take that on
notice.
Answer
Not yet tabled.
Supplementary Budget Estimates
Senator James Patterson
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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PDR No: SB23-001076
Last updated: 19 December 2023
AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; David Nockles
Question Number: 39
Date question was tabled: Not yet tabled
Question
Senator PATERSON: Do you have an organisational chart that you could table?
Mr Moore: We can give that to you on notice.
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Colin McKenna
Name: Susan Bodell
Position: Assistant Secretary AUKUS Initiatives
Position: Acting Deputy Secretary Return to Index
Division: AUKUS Advanced Capabilities
Group/Service: Strategy, Policy, and Industry
Phone:
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
Guided Weapons and Explosive Ordnance Enterprise
Handling Note:
Chief of Guided Weapons and Explosive Ordnance Group, Air Marshal Leon Phillips,
to lead.
Service Chiefs to support on questions relating to Service-specific guided weapons
and explosive ordnance acquisitions.
Key Messages
The Defence Strategic Review identified that the ADF must have the capacity to deter
through denial any adversary’s attempt to project power against Australia through
our northern approaches.
As part of the Government’s response to the Defence Strategic Review $2.5 billion
was committed over the forward estimates to accelerate the Guided Weapons and
Explosive Ordnance Enterprise – an increase of more than $1.5 billion. This additional
funding will improve Australia’s self-reliance by enabling the manufacture of guided
weapons and their critical components.
The funding will also invest in critical enablers such as research, storage, testing and
maintenance, and grow guided weapons’ stocks through increased acquisition.
Manufacture of missiles in Australia is scheduled to begin in 2025.
At the Australia-United States Ministerial Consultations 2023, Australia and the
United States agreed to deepen cooperation on Australia's Guided Weapons and
Explosive Ordnance Enterprise by collaborating on a flexible guided weapons
production capability in Australia, initially scoping co-production of Guided Multiple
Launch Rocket System missiles.
Talking Points
Guided Weapons and Explosive Ordnance Enterprise Investment and Funding Profile
The Government has committed $2.5 billion over the forward estimates to accelerate
the Guided Weapons and Explosive Ordnance Enterprise.
This investment will include funding for:
Manufacturing guided weapons and their critical components to improve
Australia’s self-reliance,s47C
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
Manufacturing selected long-range strike missiles and increasing local
maintenance of air defence missiles; and
Manufacturing other types of munitions, including 155mm artillery
ammunition and sea mines.
Critical enablers required for an expanded Guided Weapons and Explosive
Ordnance Enterprise, including increasing testing and research capabilities and
rapidly expanding the storage and distribution network to accommodate a
growing inventory; and
Acquisition of more guided weapons and explosive ordnance to supplement
other Defence acquisition programs.
The longer-term funding profile for the Guided Weapons and Explosive Ordnance
Enterprise will be determined as part of the Defence Strategic Review implementation
process.
The previous Integrated Investment Program allocation for the Guided Weapons and
Explosive Ordnance Enterprise over the forward estimates was less than $1 billion.
Between the 2020 Defence Strategic Update, the 2020 Force Structure Plan and the
establishment of the Defence Strategic Review, the former Government announced the
accelerated establishment of the Guided Weapons and Explosive Ordnance Enterprise.
Defence estimated this would require an additional $32.2 billion over the
planning decade. No additional budget allocation was made.
Government directed Defence to undertake a comprehensive outline of Defence
policy, planning, capabilities and resourcing, including reprioritisation of the
Integrated Investment Program, through the 2024 National Defence Strategy to
align with the intent and recommendations of the Defence Strategic Review.
$1.2 billion (including $100.48 million contingency) in funding is currently approved for
the Guided Weapons and Explosive Ordnance Program from 2021-22 to 2026-27.
Domestic Manufacturing and a Guided Weapons Production Capability
The Defence Strategic Review recommends options for increasing guided weapons and
explosive ordnance stocks, including by establishing domestic manufacturing.s47
C
.
Defence is working with industry partners, including its Strategic Partners, Lockheed
Martin Australia and Raytheon Australia, to develop detailed and costed plans for
domestic manufacture of guided weapons.
Defence is working with Lockheed Martin Australia on a detailed plan for a Guided
Weapons Production Capability in Australia, commencing with Guided Multiple Launch
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
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Ph:
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
Rocket Systems missiles. The aim is to build a flexible and scalable Guided Weapons
Production Capability that can be reconfigured for different weapon types.
On 1 December 2023 Defence signed a contract with Lockheed Martin Australia for a
risk reduction activity that will see the assembly of an initial batch of Guided Multiple
Launch Rocket Systems missiles in 2025. This will include a test firing in Australia.
Industry Partners
Defence has developed an industry partnership model that includes Strategic Partners
and Enterprise Partners.
In April 2022 Raytheon Australia and Lockheed Martin Australia were formally
announced as the initial Strategic Partners of the Guided Weapons and Explosive
Ordnance Enterprise.
The Strategic Partners and their United States parent companies are working with
Defence to develop detailed, costed plans for manufacturing guided weapons and their
components in Australia.
Defence has also established a Guided Weapons and Explosive Ordnance Enterprise
Partner Panel comprised of solely Australia-owned and controlled entities to help
develop and deliver the Guided Weapons and Explosive Ordnance Enterprise.
The initial Guided Weapons and Explosive Ordnance Enterprise Partners are:
Aurecon, which has strong capabilities in infrastructure design and development
(commenced August 2022); and
The Australian Missile Corporation (commenced September 2022).
United States Engagement
Support and assistance from the United States is critical to the success of the Guided
Weapons and Explosive Ordnance Group.
The United States reaffirmed its support for the Guided Weapons and Explosive
Ordnance Enterprise at the Australia-United States Ministerial Consultations 2023,
including agreement to collaborate on a flexible guided weapons production capability
in Australia.
The principals also reaffirmed their commitment to:
address global supply chain constraints and to transfer technical data for the
M795 155mm artillery shell in support of future production in Australia; and
progress the maintenance, repair, overhaul, and upgrade of priority munitions in
Australia, noting this would enhance supply chain resilience, with an initial focus
on MK-48 heavyweight torpedoes and Standard Missile 2 missiles.
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
Tomahawk Weapon System
The Government has decided to purchase more than 200 Tomahawk cruise missiles
from the United States for the Royal Australian Navy’s Hobart Class destroyers. With a
range of 1,500 kilometres, Tomahawk is a world-class long-range strike capability.
The value of the Foreign Military Sales case for Tomahawk is $1.3 billion and includes
equipment and support services for the three elements of the Tomahawk Weapon
System.
Long-Range Strike Capabilities
In effecting our strategy of denial in Australia’s northern approaches, the ADF’s
operational success will depend on the ability of the Integrated Force to apply critical
capabilities, including an enhanced long-range strike capability in all domains.
This focus will accelerate the ADF’s ability to accurately strike targets at longer range
from land and expand the acquisition of additional long-range fires systems, including
Precision Strike Missiles.
The Government is also committing an additional $1.6 billion over the forward
estimates for Army long-range strike capabilities.
Supporting Information
Questions on Notice
Budget Estimates: 25 October 2023
In Q
QoN 117, GWEO Performance and Delivery, Senator the Hon David Fawcett (Liberal,
South Australia) asked questions around the performance and delivery of the Guided
Weapons and Explosive Ordnance Enterprise.
In Q
QoN 105, Defence Planning and Review Publications, Senator the Hon
Simon Birmingham (Liberal, South Australia) asked questions around the options for
the increase of guided weapons and explosive ordnance stocks.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 30 October 2023 an individual requested a copy of Defence’s finalised estimates
briefing pack, and an index of back pocket briefs, for the 25 October 2023
Supplementary Budget Estimates. TThe decision to release documents is pending.
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
Recent Ministerial Comments
On 23 October 2023 the Deputy Prime Minister issued a media release - Victoria’s Point
Wilson Wharf to accelerate guided weapons for the ADF.
On 6 October 2023 the Minister for Defence Industry issued a media release -
Australian Government invests $220 million in local munitions manufacturing for
Defence.
Relevant Media Reporting
On 1 December 2023 in The Daily Telegraph, Australia should buy more war weapons
from home and rehaul its defence strategy, argues local arms manufacturer -
Elanor Campbell comments that Australian defence firms have become increasingly
frustrated with what they say is a lack of new contracts and preference for foreign
companies.
On 7 November 2023 in The Australian, Maritime precision strike weapons program
renewed - Nigel Pittaway discussed the NSM being purchased under Project Sea 1300
(Navy Guided Weapons) and its acquisition as an accelerated program, which will see
the Norwegian-designed missile fitted to both classes of ship by the end of 2024.
On 6 November 2023 in The Australian, Nioa signs rocket deal with US defence giant
L3Harris - Brisbane munitions group NIOA signed a deal with US defence giant L3Harris
Technologies to build components for Australia’s multibillion-dollar guided missile
program. Federal government-owned munitions plants at Benalla in Victoria or
Mulwala in NSW are likely sites for any future rocket motor and guided weapons
manufacture. The government has committed $2.5bn to build a local industry to
improve the Australian Defence Force’s self-reliance and the nation’s export capacity.
15 October 2023 Asia-Pacific Defence Reporter, NIOA begins Boxer ammunition
production –NIOA has begun ammunition production for the Army’s next-generation
armoured Boxer vehicle, marking a significant milestone for munitions manufacturing
in Australia.
Division:
Capability Development Division
PDR No:
SB23-000723
Prepared by:
Cleared by Division Head:
s47E(d)
Executive Officer to First
Andrew Byrne
Assistant Secretary Guided Weapons and
First Assistant Secretary
Explosive Ordnance Capability Development Guided Weapons and Explosive Ordnance,
Capability Development Division
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
Date: 15 December 2023
Date: 4 January 2024
Consultation: Delivery Division
Air Vice-Marshal Gerry van Leeuwen
Date: 13 December 2023
Head Guided Weapons and Explosive
Mob:
s22
Ph:
s47E(d)
Ordnance
Cleared by DSR:
Amy Hawkins, First Assistant Secretary DSR
Date: 14 December 2023
Policy and Engagement
Cleared by CFO:
Ariana Kornek
Date: 14 December 2023
Assistant Secretary Finance – Army, Defence
Finance Group.
Cleared by Deputy Secretary:
Air Marshal Leon Phillips, OAM
Date: 18 December 2023
Chief Guided Weapons and Explosive
Ordnance, Guided Weapons and Explosive
Ordnance Group
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates
Senator the Hon Simon Birmingham
Question Number: 105
Date question was tabled: Not yet tabled
Question:
Please provide a response to each question for the following:
•
National Defence Strategy
•
Surface Combatant Fleet Review
•
Defence Estate Audit
•
Rebuild of the Integrated Investment Program
•
Update of the National Naval Shipbuilding Enterprise Strategy; Naval Shipbuilding and
Sustainment Plan
•
Options for the increase of guided weapons and explosive ordinance (GWEO) stocks
•
Establishment of Advanced Strategic Capabilities Accelerator (ASCA)
1. When was the review/recommendation supposed to be completed and provided to
Government?
2. Has this deadline been met, or will that deadline be met?
3. If the review/recommendation is delayed, what are the reasons for the delay?
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
4. Is the process being held up by the Government, or particular Ministers?
5. Have the reviewers been directed by the Government as to process, approach, substance
or recommendations during the review?
6. If the review has been delivered to Government, what is the timeframe for the
Government’s response?
a. Is this consistent with any prior commitments to timing?
7. Why does the Government need to take that long to provide a response?
8. Have there been any personnel changes at the top level or in the review secretariat since
it commenced, and can you please identify the lead reviewers appointed by Government?
9. What has been the impact on Defence resourcing and progress with programs as a result
of the review being in progress?
10. What programs are unable to proceed due to the review being commissioned, and the
delays in waiting for the review and the Government’s response?
11. What decisions are pending the outcomes, recommendations and implementation of the
review/recommendation?
12. What impacts do these delayed decisions, and extended timeframes have on program
costs, program delivery and capability outcomes for Australia’s national defence?
Answer:
Not yet tabled.
2023-24 Supplementary Budget Estimates
Senator the Hon David Fawcett
Question Number: 117
Date question was tabled: Not yet tabled
Question:
1. Since the appointment of Air Vice-Marshall Leon Phillips OAM as the Chief of Guided
Weapons and Explosive Ordinance (GWEO), what has the growth in GWEO workforce
been and what skills gaps or positions remain vacant?
2. Is GWEO on track to achieve key performance indicators and objectives?
3. What analysis (independent of GWEO / Defence staff and prime contractors) has GWEO
obtained relation to the capability and capacity of the Australia industrial base to
undertake the manufacture of the range of guided weapons currently in ADF use?
4. What risks does HWEO assess exist in supply chains and Australian technology, skills and
industrial capacity? How are these risks being mitigated?
5. Can you provide an update on the progress made by GWEO in establishing sovereign
missile and munition manufacturing facilities in Australia over the next two years?
6. Has a detailed timeline or schedule been developed to track the milestones and
deliverables of GWEO's initiatives? Is this available? How is it tracking?
7. When is the earliest estimated timeframe for the delivery of Australian-manufactured
155 mm artillery ammunition, HIMARS and PRISM considering the establishment of these
manufacturing facilities?
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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Additional Estimates February 2024
PDR No: SB23-001077
Last updated: 04 January 2024
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs
8. How does GWEO plan to engage with Australian small and medium-sized enterprises
(SMEs) in the framework of missile and munition manufacturing?
9. What measures are in place to ensure transparency and fairness in the selection and
participation of SMEs within the GWEO framework?
10. Has the government conducted a cost-effectiveness analysis to evaluate the economic
viability and potential return on investment of establishing sovereign manufacturing
facilities for missiles and munitions?
11. How does the Government plan to address any potential risks, challenges, or delays that
may arise during the establishment of these manufacturing facilities?
12. Have all relevant approvals from the US State Department been received to enable the
GWEO enterprise to be established where the IP is US in origin?
13. Can you provide updates on the government's collaboration with international partners
and how this collaboration contributes to the knowledge transfer and establishment of
GWEO?
14. Which consultants and contractors have been appointed to work with the GWEO
enterprise, and how many of them are operating in excess of original contract budgets or
have undergone contract renewals and variations?
Answer:
Not yet tabled.
Prepared By:
Cleared By:
Name:
s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Officer to First Assistant Secretary Guided
Position: Chief of Guided Weapons and Explosive Ordnance
Weapons and Explosive Ordnance
Group/Service: Guided Weapons and Explosive Ordnance Group
Return to Index
Division: Capability Development Division
Phone: s22
Mob:
s22
Ph:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
Advanced Strategic Capabilities Accelerator
Handling Note:
Chief Defence Scientist, Professor Tanya Monro to lead.
Interim Head Advanced Strategic Capabilities Accelerator, Professor Emily Hilder, to
support.
Key Messages
The Advanced Strategic Capabilities Accelerator commenced operations on 1 July 2023
to deliver advanced technologies needed for Australia’s national security.
By investing $3.4 billion over the next decade, the Advanced Strategic Capabilities
Accelerator will transform the way Defence delivers breakthrough solutions that
provide the ADF with an asymmetric advantage.
The Advanced Strategic Capabilities Accelerator Mission Program went to market on
30 November 2023, with two Vice Chief of the Defence Force approved mission
problem statements, the evaluation of responses and subsequent industry co-design of
Mission 1 is being undertaken between February and May 2024.
In November 2023 the Advanced Strategic Capabilities Accelerator Innovation
Incubation Program issued an Invitation to Register Interest to build a sovereign small
un-crewed aerial system, with selected respondents entering short-term development
contracts to deliver production plans and prototypes from March 2024.
The Advanced Strategic Capabilities Accelerator Emerging and Disruptive Technologies
Program went to market in November 2023 with 10 opportunity statements requesting
white papers on Information Warfare and Quantum Technologies, with shortlisting
occurring in February 2024.
The AUKUS Defence Ministers Joint Meeting Outcomes were announced on
1 December 2023. In 2024, the Advanced Strategic Capabilities Accelerator (along with
UK and US innovation programs) will support the first AUKUS Innovation Challenge, on
electronic warfare.
Talking Points
The Defence Strategic Review concluded that more support is needed for innovation,
faster acquisition and better links between Defence and industry to deliver essential
ADF capabilities.
To meet this challenge the Australian innovation system must be harnessed to deliver
military capability advantages quickly, tangibly and enduringly.
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
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PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
This is the most significant reshaping of Defence innovation in decades and aims to
deliver vital capabilities for the ADF, as well as create more jobs in Australian industry
by commercialising technologies. It will also support innovative Australian solutions to
the challenges we face.
Missions will align to Defence strategic priorities, as determined by the Vice Chief of the
Defence Force, and mission specifications agreed by relevant Capability Managers.
Missions will be time-limited to typically three years, with clear performance targets.
The fundamental difference this will bring to Defence innovation is the requirement for
an endorsed acquisition pathway for each mission. The Capability Manager will be
required to commit to pulling successful prototypes into acquisition. The Advanced
Strategic Capabilities Accelerator will work in close partnership with Australian industry
to take a more flexible and agile approach to procurement.
In addition to the missions at the heart of this new approach the Advanced Strategic
Capabilities Accelerator has also established an:
Innovation Incubation Program. This will identify innovations that can be rapidly
adapted, tested and acquired for military purposes addressing capability priorities
identified by the Vice Chief of the Defence Force.
Emerging and Disruptive Technologies Program. This will monitor, investigate and
research technologies that may either disrupt existing capabilities or provide new
knowledge that helps identify opportunities for development of asymmetric
capabilities for Defence.
A phased transition is being implemented to ensure management and oversight by the
Advanced Strategic Capabilities Accelerator of in-train activities from previous
innovation programs. This will ensure the existing Australian innovation ecosystem
continues to build the sovereign capabilities required to deliver solutions addressing
Defence's capability priorities.
Existing Defence Innovation Programs
The Defence Innovation Hub and the Next Generation Technologies Fund ceased
operating on 1 July 2023.
Both programs have existing multi-year contracts which will be managed in accordance
with agreed contract terms.
Link to the Defence Strategic Review
The Government has identified the capacity to rapidly translate disruptive technologies
into ADF capability, in close partnership with Australian industry, as an immediate
priority in line with Defence Strategic Review recommendations.
The Government will invest $3.4 billion over 10 years from 2023-24 to establish the
Advanced Strategic Capabilities Accelerator as a key element of the Defence
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
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PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
Innovation, Science and Technology Program. The Advanced Strategic Capabilities
Accelerator will be established in Defence.
Close integration to the ADF and the innovation, science, technology and
acquisition specialists within Defence are critical.
The Advanced Strategic Capabilities Accelerator will be aligned to delivering
against Defence’s strategic priorities and evaluated through key milestones. This
will include a review and consideration of its operating model in 2027-28.
Intersection with AUKUS
The Advanced Strategic Capabilities Accelerator:
supports the Government’s direction to prioritise the operationalisation of
discrete AUKUS Advanced Capabilities lines of effort.
will be one of a number of mechanisms to drive delivery of AUKUS Advanced
Capabilities efforts, with the primary mechanism being through longer-term
integrated investment projects.
is working in partnership with the Defence and Security Accelerator (United
Kingdom), the Defense Advanced Research Projects Agency (United States), and
the Defense Innovation Unit (United States) to deliver this trilateral challenge.
Budget
As part of the Government’s investment, the existing innovation programs have
repurposed a total budget of $591 million to support the Advanced Strategic
Capabilities Accelerator over the forward estimates.
The budget for the Advanced Strategic Capabilities Accelerator will be augmented with
new funding of $157.4 million over the forward estimates, offset from within Defence.
Australian Defence, Innovation, Science and Technology investment for 2022-23 was
2.4 per cent of the budget. This compares with 7 per cent in the United Kingdom and
13 per cent in the United States.
Acquisition pathways
The Advanced Strategic Capabilities Accelerator will operate faster and industry can
expect to get quicker decisions from Defence.
If the technology is proven, has a capability champion, addresses Defence’s strategic
priorities and is affordable, the technology will be acquired.
Agility and Risk
Agility and speed are foundational principles for the Advanced Strategic Capabilities
Accelerator and are key to addressing industry feedback. This includes agility in the
selection of program managers and projects, and the ability to off-ramp or cease
projects that are not meeting agreed outcomes.
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 3
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OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
Implementing a culture of procurement agility and risk is required to deliver the
Government's intent.
This does not mean greater risk for Defence personnel – the welfare and safety of our
people is of the utmost priority.
As with all Defence operations, risk-assessments will be undertaken for the Advanced
Strategic Capabilities Accelerator activities.
The Advanced Strategic Capabilities Accelerator will draw imaginative ideas and
practical solutions from across the full spectrum of research organisations, start-ups
and small businesses, and pull these innovations into capability solutions.
The establishment of the Advanced Strategic Capabilities Accelerator is an Australian
approach for the Australian context, and suited to our unique security needs.
Background
On 28 April 2022 the Australian Labor Party announced an election commitment to
establish the Australian Strategic Research Agency.
On 9 February 2023 the Minister for Defence Industry approved the name change to
the Advanced Strategic Capabilities Accelerator.
On 28 April 2023 the Deputy Prime Minister and Minister for Defence Industry
announced the Government would invest $3.4 billion over the next decade to establish
the Advanced Strategic Capabilities Accelerator.
The establishment of the Advanced Strategic Capabilities Accelerator on 1 July 2023
delivers on this election commitment.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
QoN 105, Defence Reviews, Senator the Hon Simon Birmingham (Liberal,
South Australia) asked for information progress or blockers regarding a range of
Defence recommendations/ reviews.
2023-24 Budget Estimates: 30-31 May 2023
QoN 24, Barriers to AUKUS, Senator James Paterson (Liberal, Victoria) asked for
information on whether Australian officials have met with external parties in relation to
AUKUS Pillar 2 priorities.
QoN 80, Prioritising Australian industry, Senator Gerard Rennick (Liberal, Queensland)
asked for an explanation of how the government will commit to “buy Australian”, given
the three largest innovation deals announced in the last four years have been with
foreign defence companies.
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 4
4 of 9
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OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
On 22 August 2023 an individual sought access under Freedom of Information to
documentation relating to the establishment of the Advanced Strategic Capabilities
Accelerator and its relationship and funding arrangements with the United States. TThe
request was refused under section 24A of the FOI Act (requests may be refused if
documents cannot be found, do not exist, or have not been received).
Recent Ministerial Comments
On 11 December 2023 the Minister for Defence Industry announced the release of the
Approach to Market for the first Advanced Strategic Capabilities Accelerator Mission
projects.
Relevant Media Reporting
On 13 December 2023 the ASPI Strategist discussed the importance of integration
between the Advanced Strategic Capabilities Accelerator and other entities (such as
CASG) to ensure Defence has a consistent strategy for innovation across the supply
chain.
On 11 December 2023 InnovationAus published that silos exist in the Australian policy
environment around funding and promoting technology and innovation (including the
Advanced Strategic Capabilities Accelerator).
On 11 December 2023 multiple news outlets, including The Australian Defence
Magazine wrote about the Advanced Strategic Capabilities Accelerator’s first approach
to market for Mission projects.
On 5 December 2023 the ASPI Strategist supported the Advanced Strategic Capabilities
Accelerator’s focus on integrated intelligence.
On 28 November 2023 the ASPI Strategist discussed the challenges of Intellectual
Property in achieving continuous innovation.
On 24 November 2023 Disrupt Radio – Melbourne posed that innovation in Defence is
unlikely to succeed because the organisation is too risk averse.
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 5
5 of 9
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OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
On 23 November 2023 The Australia Today summarised the 2+2 dialogue and
announcement including increased cooperation between iDEX and the Advanced
Strategic Capabilities Accelerator (summary repeated in various media outlets).
On 17 November 2023 multiple news outlets, including The Australian covered the
Emerging and Disruptive Technology approach to market.
On 15 November 2023 the ASPI Strategist discussed the Advanced Strategic
Capabilities Accelerator and Defence innovation in the context the current strategic
environment in the Indo-Pacific region.
On 15 November 2023 InnovationAus discussed how the goals of the Defence Science
Strategy 2030, released in 2020, will be supported by the Advanced Strategic
Capabilities Accelerator.
On 14 November 2023 The Australian Defence Magazine noted the recent Advanced
Strategic Capabilities Accelerator tender shows the focus on sovereign un-crewed
aerial vehicle capability.
On 10 November 2023 InnovationAus published an overview of the Advanced Strategic
Capabilities Accelerator, its objectives and achievements to date, written by the Chief
Defence Scientist and the Interim Head, Advanced Strategic Capabilities Accelerator.
On 7 November 2023 InnovationAus suggested Defence and the Department of
Industry, Science and Resources need to work more closely together.
On 6 November 2023 The Mandarin noted the creation of the Advanced Strategic
Capabilities Accelerator and that it will support Artificial Intelligence development.
On 30 October 2023 The Asian Pacific Defence Reporter discussed various countries’
investment plans, and mentions the Advanced Strategic Capabilities Accelerator as part
of Australia’s commitment to innovation.
Division:
Advanced Strategic Capabilities Accelerator
PDR No:
SB23-001078
Prepared by:
Cleared by Division Head:
Dr Clare Murphy
Professor Emily Hilder
Assistant Secretary Strategy, Engagement
Interim Head
and Business Operations
Advanced Strategic Capabilities Accelerator
Advanced Strategic Capabilities Accelerator
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 8 December 2023
Date: 6 December 2023
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 6
6 of 9
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OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
Cleared by Deputy Secretary:
Professor Tanya Monro AC
Date: 15 December 2023
Chief Defence Scientist
Defence Science and Technology Group
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator the Hon Simon Birmingham
Portfolio Question Number: 105
Date question was tabled: Not yet tabled
Question:
Please provide a response to each question for the following:
•
National Defence Strategy
•
Surface Combatant Fleet Review
•
Defence Estate Audit
•
Rebuild of the Integrated Investment Program
•
Update of the National Naval Shipbuilding Enterprise Strategy; Naval Shipbuilding and
Sustainment Plan
•
Options for the increase of guided weapons and explosive ordinance (GWEO) stocks
•
Establishment of Advanced Strategic Capabilities Accelerator (ASCA)
1. When was the review/recommendation supposed to be completed and provided to
Government?
2. Has this deadline been met, or will that deadline be met?
3. If the review/recommendation is delayed, what are the reasons for the delay?
4. Is the process being held up by the Government, or particular Ministers?
5. Have the reviewers been directed by the Government as to process, approach,
substance or recommendations during the review?
6. If the review has been delivered to Government, what is the timeframe for the
Government’s response?
a.
Is this consistent with any prior commitments to timing?
7. Why does the Government need to take that long to provide a response?
8. Have there been any personnel changes at the top level or in the review secretariat since
it commenced, and can you please identify the lead reviewers appointed by
Government?
9. What has been the impact on Defence resourcing and progress with programs as a result
of the review being in progress?
10. What programs are unable to proceed due to the review being commissioned, and the
delays in waiting for the review and the Government’s response?
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 7
7 of 9
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OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
11. What decisions are pending the outcomes, recommendations and implementation of the
review/recommendation?
12. What impacts do these delayed decisions, and extended timeframes have on program
costs, program delivery and capability outcomes for Australia’s national defence?
Answer
Not yet tabled
2023-24 Budget Estimates: 30-31 May 2023
Senator James Paterson
Portfolio Question Number: 24
Date question was tabled: 14 July 2023
Question
Would you consider providing on notice, in an appropriate way, the external parties that
Australian officials have met with relation to these AUKUS 2 priorities? I will let you consider
what you can provide on notice. Moving on, in the Defence Strategic Review there was a
sentence in relation to advanced capabilities: ‘This requirs dedicated senior level focus in
relation to breaking down the barriers to AUKUS.’ What does the government have in mind
to provide this? What do the reviewers intend by ‘dedicated senior level focus’ and what
does the government have in mind to provide that?
Answer
Defence has met with a number of companies in relation to the AUKUS Pillar II priorities.
Companies include Defence Primes, Small and Medium Enterprises as well as Start Ups.
2023-24 Budget Estimates: 30-31 May 2023
Senator Gerard Rennick
Portfolio Question Number: 80
Date question was tabled: 14 July 2023
Question
The Advanced Strategic Capabilities Accelerator was announced by the government last
month with 3.4 billion dollars in funding over 10 years. This is a positive development that
will rely on good execution. The current leads for the Advanced Strategic Capabilities
Accelerator are the head of Defence Science and Technology Group and the head of
Capability Acquisition and Sustainment Group. Both entities have track records of not
supporting Australian companies. The three largest funded research and development
projects or “innovation” projects have been to large foreign defence companies. Boeing with
the loyal wingman receiving well over 50 million dollars of initial funding from the
government, Airbus winning the Defence Science and Technology satellite “starshot”
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 8
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OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001078
Last updated: 15 December 2023
Advanced Strategic Capabilities Accelerator
Key witnesses: Professor Tanya Monro AC; Professor Emily Hilder
program with expected funding over 70 million dollars, and Anduril winning a Defence
Science and Technology Next Generation Technology Fund project for 140 million dollars for
small submarines (they had never made a submarine before). The largest innovation projects
going to Australian companies were in the defence innovation hub and were maxed out at 8
million dollars. With the setup of the Advanced Strategic Capabilities Accelerator and its 3.4
billion dollars in funding, how will defence follow the government’s commitment to “buy
Australian” given the three largest innovation deals announced in the last 4 years have been
with foreign defence companies?
Answer
Australian industry is an important partner to enable game-changing ideas, to be developed
into capabilities that give the ADF an asymmetric advantage. The Advanced Strategic
Capabilities Accelerator will take a flexible and agile approach to ensure Defence is accessing
the best and most capable industry partners. Under the Advanced Strategic Capabilities
Accelerator, if the technology being developed by an Australian partner is proven, is
supported by our Defence end users, addresses Defence’s strategic priorities, and is
affordable, the technology will be acquired. This demonstrates an ongoing commitment to
support Australian companies, not international entities.
Prepared By:
Cleared By:
Name: Dr Clare Murphy
Name: Professor Emily Hilder
Position: Assistant Secretary Strategic Engagement
Position: Interim Head Advanced
and Business Operations
Strategic Capabilities Accelerator
Division: Advanced Strategic Capabilities
Group/Service: Defence Science and
Return to Index
Accelerator
Technology
Phone: s47E(d)
Phone: s47E(d)
s22
Page 9
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OFFICIAL
Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates February 2024
PDR No: SB23-001079
Last updated: 07 February 2024
2023-24 Portfolio Additional Estimates Statements
Key witness: Steven Groves
2023-24 Portfolio Additional Estimates Statements
Handling Note: Chief Finance Officer, Steven Groves, to lead.
Key Messages
The 2023-24 Portfolio Additional Estimates Statements continues the process of
implementing the Defence Strategic Review.
Investment in Defence must increase to promote security in the region, defend
Australia and act as an appropriate deterrent against aggressors.
The Government has committed to increase Defence funding over the medium term
and has provisioned an additional $30.5 billion in the Contingency Reserve.
Key Facts and Figures
The Defence portfolio appropriation is split across three organisations: Defence, the
Australian Signals Directorate and the Australian Submarines Agency. The breakdown
of appropriation is in the following table:
Table 1: Defence, Australian Signals Directorate and Australian Submarine Agency funding
over the forward estimates ($million)
2023-24
2023-24
2024-25
2025-26
2026-27
Total
Budget
Revised
Forward
Forward
Forward
Budget
Estimate
Estimate
Estimate
Estimate
Estimate
and FEs
Defence Funding
50,086.4
50,171.3
52,111.3
54,847.9
57,422.4 214,552.9
Australian Signals Directorate
2,472.4
2,856.6
2,611.4
2,365.8
2,548.9
10,382.6
Funding
Australian Submarines
N/A
323.4
384.7
433.9
530.6
1672.6
Agency Funding
Combined Defence,
Australian Signals Directorate
52,558.8
53,351.3
55,107.3
57,647.5
60,501.9
226,608.0
and Australian Submarine
Agency Funding
2.04 per
2.07 per
2.09 per
2.08 per
2.07 per
Percentage of GDP
cent
cent
cent
cent
cent
Talking Points
The Government will provide Defence with $50.2 billion in 2023-24 and $214.6 billion
over the forward estimates.
Defence planned expenditure on Capability Acquisition has reduced by $1.7 billion
since the 2023-24 Portfolio Budget Statements, with a corresponding increase of $0.9
billion in Workforce and $0.7 billion Capability Sustainment.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Steven Groves
Return to Index
Position: Assistant Secretary Budgeting and Reporting
Position: Chief Finance Officer
Division: Budgets and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 1
1 of 6
6
OFFICIAL
Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates February 2024
PDR No: SB23-001079
Last updated: 07 February 2024
2023-24 Portfolio Additional Estimates Statements
Key witness: Steven Groves
The 2023-24 Portfolio Additional Estimates Statements is the first Budget publication to
include the Australian Submarines Agency. Defence has absorbed $1.7 billion to
support establishment of the Australian Submarine Agency over the Forward Estimates,
including $323.4 million of funding in 2023-24. In addition Defence has provided
funding to other agencies to support the delivery of nuclear-powered submarine
capability.
Table 2 in the 2023-24 Portfolio Additional Estimates Statements (below) provides a
breakdown of the variation to Defence funding since the 2023-24 Budget.
Table 2: Variation to Defence Funding
2023-24
2024-25
2025-26
2026-27
Revised
Forw ard
Forw ard
Forw ard
Estim ate Estim ate Estim ate Estim ate
Total
Program
$m
$m
$m
$m
$m
Departmental Budget Measures
Paym ent Measures
Replacement of Bushmasters [a]
2.6
– – – – –
Additional support for Ukraine [b]
Various
22.6
11.0 – –
33.6
Sale of Bushmasters to Fiji [c]
2.6
–
2.8 – –
2.8
Nuclear-pow ered submarine program - further implementation [d]
2.16
– – – –
–
Space Program - reprioritisation [e]
2.3
nfp
nfp
nfp
nfp
nfp
Supporting Collaboration on Defence Research Priorities [f]
2.13
– – – –
–
Operation LILIA - Expanded operation
1.1
60.8 – – –
60.8
Total Departm ental Budget Measures
83.4
13.8
–
–
97.2
Other Departm ental Budget Adjustm ents
Operation RESOLUTE: Sri Lanka fuel
1.1
10.0 – – –
10.0
Other budget adjustments
Various
40.9 – – –
40.9
Foreign Exchange
Various
480.6 592.4 788.0 671.7
2,532.7
Transfer of projects to the Australian Signals Directorate
Various
-160.8 -105.9 -80.8 -339.5
-687.0
Other Adm inistered Budget Adjustm ents
Defence Home Ow nership Assistance Scheme
2.22
45.8 45.8 45.8 45.8
183.3
Total Other Departm ental Budget Adjustm ents
370.7 486.5 707.2 332.2
1,896.6
Total Other Adm inistered Budget Adjustm ents
45.8
45.8
45.8
45.8
183.3
Total Other Budget Adjustm ents
416.5
532.3
753.0
378.0
2,079.9
Variation to Defence Funding
499.9
546.2
753.0
378.0
2,177.1
Notes
a.
This measure provides $237.5 million over the period 2023-24 to 2025-26 which is being absorbed by Defence.
b.
This measure provides $176.6 million over the period 2023-24 to 2024-25 with the balance being absorbed by Defence.
c.
This measure provides $26.0 million over the period 2023-24 to 2026-27 with the balance being absorbed by Defence.
d. This measure provides $138.7 million over the period 2023-24 to 2026-27 which is being absorbed by Defence.
e. This budget adjustment is not for publication (nfp) due to commercial sensitivities.
f.
This measure provides $0.4 million over the period 2023-24 to 2026-27 which is being absorbed by Defence.
Background
Defence 2023-24 Additional Estimates Summary
In 2023-24, planned Defence expenditure (excluding the Australian Signals Directorate and
Australian Submarine Agency appropriations) includes:
$15.9 billion (31.1 per cent of the Defence budget) for capability acquisition:
$12.1 billion for military equipment;
$2.8 billion for facilities and infrastructure;
$852.2 million for Information and Communications Technology; and
$222.6 million for other capital equipment (such as minor military equipment and
other plant and equipment).
Prepared By:
Cleared By:
Name: Tara Gould
Name: Steven Groves
Return to Index
Position: Assistant Secretary Budgeting and Reporting
Position: Chief Finance Officer
Division: Budgets and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 2
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OFFICIAL
Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates February 2024
PDR No: SB23-001079
Last updated: 07 February 2024
2023-24 Portfolio Additional Estimates Statements
Key witness: Steven Groves
$16.1 billion for Sustainment (31.5 per cent of the Defence budget):
$10.4 billion military capability sustainment;
$3.9 billion facilities sustainment; and
$1.8 billion ICT sustainment.
$15.8 billion for Workforce (30.9 per cent of the Defence budget):
$12.0 billion military employees;
$2.5 billion civilian employees; and
$1.3 billion other employee costs (e.g. Recruitment, Training, Removalists and
other employee related categories).
$3 billion (5.9 per cent of the Defence budget) for operating activities and services
including business travel and consumable items.
$326.4 million for military operations.
Changes to Defence Planned Expenditure by Key Cost Category
Compared to 2023–24 Portfolio Budget Statements, planned expenditure on Defence
Capability Acquisition has reduced by $1.73 billion (2023-24 Portfolio Budget
Statements: $17.66 billion; 2023–24 Portfolio Additional Estimates Statement: $15.93
billion), with a corresponding increase of $0.9 billion, predominantly to support
Defence workforce as our highest priority and $0.7 billion to support capability
sustainment to address ongoing systemic pressures in the Estate and Information and
Communications Technology areas of the Defence budget.
The reduction in Defence Capability Acquisition is largely in the Enterprise Estate and
Infrastructure Program ($1.4 billion for 2023–24) due to ongoing capacity and delivery
issues in national property market. This is due to workforce and supply chain shortages.
Table 3 shows the top four projects impacted by the reduction.
Table 3 – Security and Estate Group Projects with Major Reductions in Project Budget from
1 July 2023
Total Movement
Project Number and Title
from 1 July 2023
($million)
EST04824 P0010-National Airfields Works AMB,PEA,R
172.002
EST01982 Cocos (Keeling) Islands Airfield Upgrade
148.665
EST02145 Edinburgh Defence Precinct Mid Term Refresh
106.631
EST02019 EO Facilities NNSW Redevelopment
103.838
Prepared By:
Cleared By:
Name: Tara Gould
Name: Steven Groves
Return to Index
Position: Assistant Secretary Budgeting and Reporting
Position: Chief Finance Officer
Division: Budgets and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 3
3 of 6
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OFFICIAL
Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates February 2024
PDR No: SB23-001079
Last updated: 07 February 2024
2023-24 Portfolio Additional Estimates Statements
Key witness: Steven Groves
Portfolio Additional Estimates Statement 2023-24 Measures
Additional Support for Ukraine
Defence provided $176.6 million over two years from 2023–24 to deliver additional
support to Ukraine and expand the Australian Defence Force deployments under
Operation KUDU. Funding includes:
$131. 9 million over two years from 2023-24 to provide military vehicles and
ammunition in response to requests from the Government of Ukraine. Funded
from Defence's existing resources and partially offset by $7. 9 million of new
appropriation;
$25. 7 million of new no-win, no-loss supplementation over two years from
2023-24 to extend and expand the scope of Operation KUDU; and
$19. 1 million in 2023-24 to provide de-mining equipment, counter drone
systems, portable x-ray machines and 3D metal printers to Ukraine with the
support of Australian defence industry companies.
The cost of this measure will be partially met from within the existing Defence
resourcing. This measure builds on the 2023–24 Budget measure titled
Additional Assistance to Ukraine and 2022–23 October Budget measure titled
Additional Assistance to Ukraine.
Nuclear-Powered Submarine Program – further implementation
Defence is providing $138.7 million over the Forward Estimates from 2023-24
($563.8 million from 2023-24 to 2034-35) to further support Australia’s acquisition of a
conventionally armed nuclear-powered submarine capability. This funding, within the
existing whole-of-program cost estimates for the nuclear-powered submarine program,
includes:
Defence is providing $558.0 million over ten years from 2024–25 (and
$50.5 million per year ongoing) to establish and support the ongoing operation of
the independent Australian Naval Nuclear Power Safety Regulator within the
Defence portfolio to regulate nuclear safety across all aspects of the nuclear-
powered submarine program. The Regulator will be funded through Defence,
pending formal establishment of the Regulator.
$5.8 million over three years from 2024–25, matched by additional contributions
by the South Australian Government, to expand the Defence Industry Pathways
Program to South Australia to deliver Certificate II and Certificate III training
pathways to support the development of the defence industry workforce.
The cost of this measure will be met from within existing Defence resourcing. This
measure builds on the 2023–24 Budget measure titled Nuclear-Powered Submarine
Program – initial implementation.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Steven Groves
Return to Index
Position: Assistant Secretary Budgeting and Reporting
Position: Chief Finance Officer
Division: Budgets and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 4
4 of 6
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OFFICIAL
Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates February 2024
PDR No: SB23-001079
Last updated: 07 February 2024
2023-24 Portfolio Additional Estimates Statements
Key witness: Steven Groves
Replacement of Bushmasters
Defence is providing $237.5 million over three years from 2023–24 to acquire 78
Bushmaster Protected Mobility Vehicles to replace vehicles gifted by Australia to
Ukraine. This measure also includes a contingency of $47.5 million if required, creating
a total funding envelope of $285 million. This funding includes the $160 million
contract with Thales Australia for the production of the new Bushmasters in Bendigo,
Victoria announced by the Minister for Defence Industry on 17 May 2023.
The cost of this measure will be met from within existing Defence resourcing.
Sale of Bushmasters to Fiji
The Government has provided $26 million over four years from 2023–24 (and
$0.1 million per year ongoing from 2027–28) to support the sale and ongoing
sustainment of 14 Bushmaster Protected Mobility Vehicles to the Republic of Fiji. The
sale of the 14 Bushmasters is consistent with the Fiji – Australia Vuvale Partnership and
will support Fiji’s deployment to international peacekeeping operations.
The cost of this measure will be sourced through revenue from the sale and from
within existing Defence resourcing.
Supporting Collaboration on Defence Research Priorities
Defence is providing $0.4 million over the Forward Estimates ($0.9 million over ten
years) from 2023–24 to extend the Fulbright Distinguished Chair in Advanced (Defence)
Science and Technology Grant program to continue an annual scholarship program to
support researchers from the United States to undertake research in Australia in
priority Defence areas.
The cost of this measure will be met from within existing Defence resourcing.
Other PAES adjustments
Operation LILIA
This is an increase to Defence funding of $60.8 million in 2023-24 to provide expansion
of activities for Operation LILIA, including support for the 2023 Pacific Games. This
funding will be provided on a no-win, no-loss basis.
Operation RESOLUTE
An increase to Defence funding of $10.0 million in 2023-24 to provide fuel for Sri
Lanka’s Navy to conduct activities linked to Operation RESOLUTE. This funding will be
provided on a no-win, no-loss basis.
Transfer of projects to the Australian Signals Directorate
Transfer of $687.0 million to the Australian Signals Directorate over 2023-24 and the
Forward Estimates period to 2026-27 for the transfer of approved projects from the
Integrated Investment Program.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Steven Groves
Return to Index
Position: Assistant Secretary Budgeting and Reporting
Position: Chief Finance Officer
Division: Budgets and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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OFFICIAL
Supplementary Budget Estimates February 2024
PDR No: SB23-001079
Last updated: 07 February 2024
2023-24 Portfolio Additional Estimates Statements
Key witness: Steven Groves
Foreign Exchange
An increase in funding of $480.6 million in 2023-24 and $2.5 billion over the Forward
Estimates to 2026-27 due to a change in foreign exchange parameters.
Administered Budget Adjustments
An administered budget adjustment providing $183.3 million over 2023-24 and the
Forward Estimates period to 2026-27 for the Defence Home Ownership Assistance
Scheme (DHOAS), which assists current and former ADF members and their families to
achieve home ownership. This increase is driven by a change in the economic
parameters underpinning the DHOAS.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
No FOIs requested
Recent Ministerial Comments
No recent comments
Relevant Media Reporting
None identified
Division:
Budgets and Financial Services Division
PDR No:
SB23-001079
Prepared by:
Cleared by Division Head:
Tara Gould
Sam Volker
Assistant Secretary
First Assistant Secretary
Budgeting and Reporting
Budgets and Financial Services
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 5 February 2024
Date: 5 February 2024
Cleared by Deputy Secretary:
Date: 7 February 2024
Steven Groves
Chief Finance Officer
Prepared By:
Cleared By:
Name: Tara Gould
Name: Steven Groves
Return to Index
Position: Assistant Secretary Budgeting and Reporting
Position: Chief Finance Officer
Division: Budgets and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Defence FOI 680/23/24
Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
Integrated Investment Program
Handling Note:
Vice Chief of the Defence Force, Vice Admiral David Johnston, to lead.
Associate Secretary, Matt Yannopoulos, to support.
Key Messages
In line with the recommendations of the Defence Strategic Review, the Government
will release the inaugural National Defence Strategy in 2024.
The National Defence Strategy will comprehensively outline Defence policy, planning,
capabilities and resourcing, including reprioritisation of the Integrated Investment
Program.
Government and Defence are committed to providing the appropriate level of
transparency and information to the public and industry, while preserving Defence’s
commercial position and safeguarding national security.
Government agreed to increase Defence funding over the coming decade to deliver
Defence Strategic Review priorities and capabilities.
As part of the 2024 National Defence Strategy process the rebuild and
reprioritisation of the Integrated Investment Program is underway to fund immediate
and longer-term investments to deliver an integrated, focused ADF.
Defence has made progress to implement Defence Strategic Review
recommendations, accelerating work on the six priority capabilities.
Talking Points
How much money is captured in the Integrated Investment Program?
The Integrated Investment Program captures approximately $270 billion in Defence
investment for the period 2020 to 2030.
Government announced their expectation to grow Defence spending over the decade
to deliver the agreed priorities and capabilities recommended in the Defence Strategic
Review. Government is investing approximately $19 billion to implement immediate
priorities over the forward estimates:
$9 billion for the Nuclear-Powered Submarine Program through AUKUS;
$1.6 billion for accelerating the acquisition of additional High Mobility Artillery
Rocket Systems and Precision Strike Missiles to deliver multi-domain long-range
strike effects, and approximately $1.3 billion to purchase more than 200
world-class long-range Tomahawk missiles;
approximately $431 million to acquire more than 60 Anti-Radiation Guided
Missiles to target enemy radar systems;
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
$3.8 billion for northern base infrastructure;
$400 million to support ADF personnel through a new continuation bonus; and
$900 million on Defence innovation to establish the Advanced Strategic
Capabilities Accelerator and through AUKUS Pillar II.
What is the Integrated Investment Program funding by domain?
As of the May 2023 Budget, the approximate investment for each Domain covering the
period 2020 to 2030 is1
:
Maritime – 29 per cent;
Air – 22 per cent;
Land – 20 per cent;
Cyber – 6 per cent;
Space – 3 per cent; and
Enterprise Enabler capabilities, including, but not limited to, information and
communications technology, facilities and infrastructure, innovation and science
and technology – 20 per cent.
Background
Integrated Investment Program Management
The Integrated Investment Program is managed as part of Defence’s force design
processes, which identify emerging risks, opportunities and new technologies. The
process includes the development of options to adjust capability investment within the
Defence budget.
The Integrated Investment Program includes investments approved by Government. It
also includes unapproved capability acquisition proposals for which Defence plans to
seek Government authority within the following decade.
Defence provides biannual updates to Government on the Integrated Investment
Program. The Government considers these updates as part of Defence’s Budget and
Mid-Year Economic and Fiscal Outlook submissions.
Biannual updates and recommendations resulting from force design processes are
classified. Government determines which decisions to announce publicly.
Australian National Audit Office audit of the Integrated Investment Program
The Auditor-General examined the effectiveness of Defence’s management of the Integrated
Investment Program.
On 29 November 2022 the Auditor-General tabled a report in Parliament on Defence’s
Administration of the Integrated Investment Program. The report focussed on
1 Based on May 2023-24 Portfolio Budget Statement Update, percentages are rounded numbers and may not
equate exactly to the investment figures.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
Defence’s governance frameworks and public reporting on the Integrated Investment
Program.
The Auditor-General noted Defence has a largely effective governance, control
and approval framework for the management of the Integrated Investment
Program. It also noted Defence continues to strengthen arrangements to ensure
improved governance of this critical program.
Defence agreed to recommendations one, two, three, five and six of the report.
Defence has largely completed actions to address recommendations one,
two and three. These actions focussed on the governance, control and
approval framework, which Defence is addressing through improved
automation, management of data and documentation of processes. These
improvements were already underway during the audit.
Recommendations four, five and six relate to establishing an effective
framework to guide public reporting on the Integrated Investment
Program. Defence has sought to balance appropriate transparency and
reporting with the need to protect national security and commercial
information.
To address recommendations five and six, Defence is documenting
appropriate processes to guide public reporting in the future.
Defence did not agree with recommendation four due to the risk to national
security and commercial considerations. Recommendation four asked for
Defence to publicly:
State progress against its plans on the Integrated Investment Program;
Show projects cancelled, amalgamated, slipped in timing, changed in title,
scope or cost; and
Publish sufficient information as to enable reconciliation of the current
public edition with the previous edition.
Defence continues to work with Government to ensure appropriate transparency
and accountability for performance of the Integrated Investment Program.
Australian National Audit Office audit into the procurement of Hunter Class Frigates report
recommendation implementation
The Australian National Audit Office performance audit of Defence’s procurement of
the Hunter Class Frigates contained observations relevant more broadly to Defence’s
governance, and its capability approval and delivery processes – particularly in relation
to:
Clearly assessing the value for money of capability initiatives,
Ensuring decision-makers comply with relevant policies and rules and clearly
capture the basis or rationale for their decisions, and
Keeping complete records.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
The audit reinforced the importance of a range of initiatives already being undertaken
to strengthen governance and performance, and to refine policies and procedures.
Those initiatives incorporate Defence’s response to Government’s direction in
October 2022 to strengthen project delivery performance, and
The initiatives now also incorporate Defence Strategic Review priorities.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
In QoN 105, Senator Simon Birmingham (Liberal, South Australia) asked about the
status of a number of Defence planning reports, including the IIP Rebuild.
In QoN 174, Senator Linda Reynolds (Liberal, Western Australia) asked about the status
of the 2023-24 IIP projects, specifically those based in Western Australia.
Freedom of Information (FOI) Requests
On 30 October 2023, a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
On 8 December 2023 the Deputy Prime Minister and Minister for Defence Industry
issued a media release that Government had signed contracts with Hanwha Defense
Australia to deliver and support 129 locally built Redback infantry fighting vehicles for
the Australian Army.
Relevant Media Reporting
On 27 November 2023 in the Australian Financial Review, journalist Andrew Tillett,
reported that Defence will cut defence contracts to “free up cash for new weapons”,
claiming that the two-yearly review of the IIP risks fuelling uncertainty for Defence
industry.
On 7 November 2023 in the ABC, journalist Andrew Greene reported that (former Chief
of Army, 2002–2008) Peter Leahy had warned that prioritising long-range strike and
littoral manoeuvre over armoured vehicles reduced Australia’s capability and
readiness.
On 7 October 2023 in the Australian, journalist Greg Sheridan, analysed the progress of
the Defence Strategic Review progress to date and claimed the Government is “not
serious about capability change”.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
On 5 October 2023 in the Australian Financial Review, journalist Andrew Tillett,
reported on financial implications of the Defence Strategic Review and Independent
Analysis Team whilst claiming blowouts in Defence spending could be as high as $15-20
billion.
Division:
Force Design Division
PDR No:
SB23-000743
Prepared by:
Cleared by Group/Service Head:
Major General Anthony Rawlins
Vice Admiral David Johnston
Head Force Design, Force Design
Vice Chief of the Defence Force
Mob:
s22
Ph:
s47E(d)
Mob: s22
Ph: s47E(d)
Date: 6 December 2023
Date: 14 December 2023
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Vice Admiral David Johnston
Vice Chief of the Defence Force
Mob: s22
Ph: s47E(d)
Date: 6 February 2024
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates
Senator the Hon Simon Birmingham
Portfolio Question Number: 105
Date Question was tabled: Not yet tabled
Written Question
1. When was the review/recommendation supposed to be completed and provided to
Government?
2. Has this deadline been met, or will that deadline be met?
3. If the review/recommendation is delayed, what are the reasons for the delay?
4. Is the process being held up by the Government, or particular Ministers?
5. Have the reviewers been directed by the Government as to process, approach, substance
or recommendations during the review?
6. If the review has been delivered to Government, what is the timeframe for the
Government's response?
a. Is this consistent with any prior commitments to timing?
7. Why does the Government need to take that long to provide a response?
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
8. Have there been any personnel changes at the top level or in the review secretariat since it
commenced, and can you please identify the lead reviewers appointed by Government?
9. What has been the impact on Defence resourcing and progress with programs as a result
of the review being in progress?
10. What programs are unable to proceed due to the review being commissioned, and the
delays in waiting for the review and the Government's response?
11. What decisions are pending the outcomes, recommendations and implementation of the
review/recommendation?
12. What impacts do these delayed decisions, and extended timeframes have on program
costs, program delivery and capability outcomes for Australia's national defence?
Answer
Not yet tabled.
2023-24 Supplementary Budget Estimates
Senator the Hon Linda Reynolds
Portfolio Question Number: 174
Date Question was tabled: Not yet tabled
Written Question
1. Could the department offer a status update on the Integrated Investment Program for the
fiscal year 2023-24, specifically focusing on the total budget allocation for all programs
pertaining to Western Australia?
2. What are the key priority areas and projects within the IIP for the fiscal year 2023-24, and
how do these align with the Government's investment objectives specifically in relation to
Western Australia?
3. Could the department provide a breakdown of the allocation of funds within the IIP,
distinguishing between investments in new weapons, platforms, systems, infrastructure,
workforce, ICT, and science and technology, relating to Western Australia only?
4. What mechanisms are in place to ensure that the IIP remains adaptable and responsive to
changing security and defence requirements, and how does it incorporate feedback and
lessons learned from previous years?
5. Can the department elaborate on any specific initiatives within the IIP aimed at enhancing
Australia's defence capabilities, such as modernization projects or partnerships with other
countries that impact on Western Australia?
6. Can the department confirm the date on which the $4.3 billion allocation for a dry dock
was included in the Integrated Investment Program (IIP)?
7. Can the department provide information on when and why the allocation for the dry dock
was removed or reallocated within the IIP, and what were the reasons for this decision?
8. On whose direction was this allocation removed from the IIP?
9. Where has the $4.3 billion initially allocated for the dry dock within the IIP been
reallocated, and for what purposes or projects has it been used since its removal from the
IIP? Where has it been transferred to within the IIP?
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
10. Is there any documentation or reports available that provide a comprehensive history of
the allocation and reallocation of funds for the dry dock project within the IIP, including any
cost-benefit analyses or assessments?
11. Can the department provide a comprehensive timeline of the allocation, removal, and
reallocation of funds for the dry dock project within the IIP?
12. Can the Department provide information on the expected economic impact of the project
on Western Australia, including the number of direct construction jobs, local sub-contracts,
and job opportunities in the national supply chain?
13. Can the department provide information on any contracts, agreements, or partnerships
related to the project, including those with Australian Naval Infrastructure, and how these
will ensure the long-term success and sustainability of shipbuilding in Western Australia?
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
Attachment A
What capability decisions did the Government make in 2023?
Date
Minister
Announcement
Domain
Announcement of a $50 million 5-year contract with
The Hon Pat
12 Dec 23
Thales Australia operate and maintain the C
Captain Cook
Maritime
Conroy MP
Graving Dock in Sydney: read announcement.
Minister for Defence Industry announced a $15 million
contract with Australian steel manufacturer, Bisalloy
The Hon Pat
9 Dec 23
Steels, for the qualification of Australian steel for use on
Maritime
Conroy MP
Australia’s future SSSN-AUKUS submarines: read
announcement.
The Government has signed contracts with Hanwha
The Hon Richard Defense valued at approximately $7 billion to deliver and
8 Dec 23
Land
Marles MP
support 129 locally built R
Redback infantry fighting
vehicles: read announcement
NORSTA North has been awarded a five-year $150 million Enterprise
The Hon Pat
Regional Maintenance P
Provider contract for a Regional
4 Dec 23
and
Conroy MP
Maintenance Centre, known as RMC North, located in
Enabler
Darwin: read announcement.
The Deputy Prime Minister announced that Australia, the
US and UK will collaborate on the A
Australian Deep-space
The Hon Richard Advanced Radar Capability, boosting our ability to detect
2 Dec 23
Space
Marles MP
and deter space-based threats. Expected to be
operational by 2026, the capability will be installed near
Exmouth in Western Australia: read announcement.
The Hon Richard Announcement of a new strategic partnership between
Marles MP
23 Nov 23
Defence and Austal at Henderson Shipyard in Western
Maritime
The Hon Pat
Australia: read announcement.
Conroy MP
The Hon Richard The Government announced it would accelerate and
Marles MP
expand the delivery of A
Army’s Landing Craft (Medium and
23 Nov 23
Land
The Hon Pat
Heavy) to be built at Henderson by Austal under a pilot:
Conroy MP
read announcement.
The Government has appointed Thales under a new $2
Enterprise
The Hon Pat
22 Nov 23
billion contract to m
maintain and sustain Australia’s naval
and
Conroy MP
fleet in Sydney: read announcement.
Enabler
Announcement of a land agreement between the
Australian and South Australian Governments for
The Hon Richard
10 Nov 23
Australian Naval Infrastructure to build Australia’s
Maritime
Marles MP
nuclear-powered submarines at O
Osborne Shipyard in
South Australia.
The Hon Richard
Enterprise
Marles MP
Victoria's Point Wilson Wharf to accelerate guided
23 Oct 23
and
The Hon Pat
weapons for the ADF
Enabler
Conroy MP
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates: February 2024
PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
Date
Minister
Announcement
Domain
Establishing local manufacturing of guided weapons and
explosive ordnance announcing a $220 million
The Hon Pat
6 Oct 23
investment in munitions production at factories in
Land
Conroy MP
Mulwala in New South Wales and Benalla in Victoria: read
announcement.
The Government has appointed the head of the G
Guided
Weapons and Explosive Ordnance Enterprise to
Enterprise
The Hon Pat
5 May 23
accelerate the establishment of a local long-range guided
and
Conroy MP
weapons and munitions manufacturing industry: read
Enabler
announcement
The Government signed a contract with Rheinmetall
The Hon Pat
Defence Australia to equip Anzac Class frigates and
5 May 23
Sea
Conroy MP
Hobart Class destroyers with Multi-Ammunition Soft-Kill
System: read announcement
The Government signed a $46m contract with L3Harris
The Hon Pat
4 May 23
Micreo to deliver up to 80 new eexplosive ordnance
Land
Conroy MP
disposal robots: read announcement
The Government entered into an agreement to acquire
The Hon Richard
27 Apr 23
an ownership interest in Australian d
defence radar systems
Air
Marles MP
manufacturer, CEA Technologies: read announcement
The Hon Richard
Marles MP
The Hon Pat
The Government will bolster investment in A
Australia’s
Enterprise
27 Apr 23
Conroy MP
northern bases, committing $3.8b over the next four
and
The Hon Matt
years: read announcement
Enabler
Thistlethwaite
MP
The Hon Richard The Government is committing $4.1b to acquire more
Enterprise
Marles MP
26 Apr 23
long-range strike systems and manufacture longer-range
and
The Hon Pat
munitions: read announcement
Enabler
Conroy MP
The Hon Pat
Conroy MP
The Government welcomed the arrival of the first O
Ocius
6 Mar 23
The Hon Matt
BlueBottle Uncrewed Surface Vessels: read
Sea
Thistlethwaite
announcement
MP
The Government signed an A
Australian Industry Capability
The Hon Pat
1 Mar 23
Deed for the Apache Program with Boeing (US): read
Air
Conroy MP
announcement
The Hon Matt
The Government will invest $64m in the D
Defence
Enterprise
21 Feb 23
Thistlethwaite
Renewable Energy and Energy Security Program: read
and
MP
announcement
Enabler
The Government is upgrading the EA-18G Growler
The Hon Pat
06 Feb 23
capability through P
Project AIR 5349 Phase 6 - Advanced
Air
Conroy MP
Growler: read announcement
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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PDR No: SB23-001080
Last updated: 6 February 2024
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos PSM
Date
Minister
Announcement
Domain
The Hon Richard
Enterprise
Marles MP
The Government is increasing the ADF’s gguided weapons
05 Jan 23
and
The Hon Pat
and explosive ordnance stocks: read announcement
Enabler
Conroy MP
What capability decisions did the Government make in 2022?
Date
Minister
Announcement
Domain
The Government signed a FFacility Services Deed worth
02
The Hon Pat
more than $100m with BAE Systems Australia to expand
Nov
Sea
Conroy MP
the FF-35A depot maintenance capability at Newcastle
22
Airport: read announcement
21
ADF signed a contract with Babcock Pty Ltd to equip the
Enterprise
The Hon Pat
Oct
ADF with an enhanced high-frequency communications
and
Conroy MP
22
system: read announcement
Enabler
13
The Government signed a $155m contract with BAE
The Hon Pat
Oct
Systems to optimise the R
RAN Hobart Class Destroyers:
Sea
Conroy MP
22
read announcement
20
The Government signed a $4.35m contract with Asension
The Hon Pat
Aug
to deliver a sspace-based tactical sensor system for use by
Space
Conroy MP
22
the ADF: read announcement
Defence announced a $60m contract with Boeing
Enterprise
4 Aug
The Hon Pat
Defence Australia to maintain the P-8A Poseidon fleet:
and
22
Conroy MP
read announcement
Enabler
Canberra-based company CEA Technologies is building
21 Jul
The Hon Pat
four new Air Defence radars as part of the Australian
Air
22
Conroy MP
Government’s $2.7b investment in Defence’s new Joint
Air Battle Management System: read announcement
The Government announced approval for the LLand Force
18 Jul
The Hon Pat
Level Electronic Warfare Project valued at nearly $75m:
Land
22
Conroy MP
read announcement
The Government expedited a sale from the United States
23 Jun The Hon Pat
for two additional C
CH-47F Chinook helicopters: read
Land
22
Conroy MP
announcement
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group/Service: Vice Chief of the Defence Force Group
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Supplementary Budget Estimates February 2024
PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
Defence Strategic Review Implementation
Handling Note: Deputy Secretary, Defence Strategic Review Implementation Task Force,
Tom Hamilton to lead.
Key Messages
Progress is being made to implement the Government’s directions in response to the
Defence Strategic Review.
Implementation oversight is occurring through the Defence Strategic Review
Management Board, External Advisory Panel and National Security Committee of
Cabinet.
The Government is committed to building a fully integrated, more capable ADF
operating across five domains, working seamlessly to deliver enhanced and joined-up
combat power.
Defence’s capabilities are being reprioritised in line with the Government-agreed
recommendations of the Defence Strategic Review.
Talking Points
What are the priorities for implementation?
The Government has directed Defence must have the capacity to:
Defend Australia and our immediate region;
Deter through denial any adversary’s attempt to project power against Australia
through our northern approaches;
Protect Australia’s economic connection to our region and the world;
Contribute with our partners to the collective security of the Indo-Pacific; and
Contribute with our partners to the maintenance of the global rules-based order.
Government identified six priority areas for immediate action:
Investing in conventionally-armed, nuclear-powered submarines through the
AUKUS partnership.
Developing the ADF’s ability to precisely strike targets at longer range and
manufacture munitions in Australia.
Improving the ADF’s ability to operate from Australia’s northern bases.
Lifting capacity to rapidly translate disruptive new technologies into ADF
capability, in close partnership with Australian industry.
Investing in the growth and retention of a highly-skilled Defence workforce.
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Supplementary Budget Estimates February 2024
PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
Deepening diplomatic and defence partnerships with key partners in the
Indo-Pacific.
What progress has Defence made on implementation?
Defence is making progress towards delivering a more integrated ADF, capable of
responding to Australia’s increasingly challenging strategic circumstances.
Capability outcomes include:
ordering 20 C130J Hercules aircraft;
committing $765 million to deliver the second tranche of the Joint Air
Battle Management System to support an enhanced, integrated and
coordinated air and missile capability;
investing $1.6 billion to expand and accelerate acquisition of High Mobility
Artillery Rocket Systems;
long-range rocket systems for Army; and
purchasing more than 200 Tomahawk cruise missiles.
The independent analysis of Navy’s surface combatant fleet capability report was
delivered to Government on 29 September 2023.
Key changes to Army’s units and formations, and changes to equipment locations have
been announced that will support an uplift in capability, preparedness and projection.
This includes a shift from generalist to specialist combat brigades and relocation
of personnel to Northern Australia.
On 6 October 2023 the Government announced a $220 million investment in domestic
manufacture of munitions at factories in Mulwala, New South Wales and Benalla,
Victoria.
Defence has signed a $450 million fuel supply contract to safeguard Australia’s national
fuel security.
The National Fuel Council has been established, with its inaugural meeting held on
31 August 2023 and its first meeting including industry representatives on
10 October 2023.
At the end of 2023 an audit to baseline Defence’s estate and infrastructure, and
improvements to support operating from northern bases, including a $700 million
investment for Apache Helicopter basing at Royal Australian Air Force Base Townsville
was presented to Government.
Defence has launched the ADF Careers platform – a modernised ADF recruitment
system – to underpin the growth and retention of a highly-skilled Defence workforce.
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Supplementary Budget Estimates February 2024
PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
On 23 November 2023 the Government announced a new strategic partnership
between Defence and Austal Limited at Henderson shipyard. Australia’s Birdon Group
Pty Ltd was selected as the preferred designer for the construction of 18 vessels at
Henderson for the Landing Craft Medium capability.
On 9 December 2023 the Government announced a $7 billion contract with Hanwha
Defense Australia. Hanwha will deliver 129 locally built Redback infantry fighting
vehicles.
On 11 December 2023 the Australian Submarine Agency announced a $15 million
contract with Australian steel manufacturer, Bisalloy Steels. Bisalloy Steels will
undertake the qualification of the raw plate steel, supplied by BlueScope Steel, to be
used in the manufacture of Australia’s SSN-AUKUS conventionally-armed nuclear-
powered submarines.
The Government has also directed deeper engagement and collaboration with our
international partners to maintain peace, prosperity and security in the region.
In August 2023 Australia hosted Exercise Malabar for the first time, which
brought together partners from India, Japan and the United States.
In August 2023 the Japan-Australia Reciprocal Access Agreement come into
effect, supporting closer cooperation and strengthening the capabilities of both
the ADF and the Japanese Self-Defense Force.
In July 2023 13 nations participated in the largest ever iteration of Exercise
Talisman Sabre, which involved more than 30,000 personnel and demonstrated
the ability of the joint force to integrate with allies and partners.
Defence has established the Australian Strategic Capabilities Accelerator and Australian
Submarine Agency, and made a number of senior-level appointments in priority areas.
Senior appointees include:
Chief of Personnel, Lieutenant General Natasha Fox;
Chief of the Guided Weapons and Explosive Ordnance Enterprise,
Air Marshal Leon Phillips;
First Assistant Secretary AUKUS Advanced Capabilities, Mr Steve Moore;
and
First Assistant Secretary of Pacific Division, Ms Sue Bodell.
Work to deliver the 2024 National Defence Strategy is almost complete.
The 2024 National Defence Strategy will set out a holistic comprehensive reform
of Defence policy, planning, capabilities and resourcing to ensure Defence has the
capabilities and self-reliance it needs to defend Australia and our national
interests.
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Supplementary Budget Estimates February 2024 PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
As a part of the 2024 National Defence Strategy process, the Defence Integrated
Investment Program will be reprioritised to fund immediate and longer-term
investments to deliver an integrated, focused ADF, as directed by the
Government in response to the Defence Strategic Review.
The development of the 2024 National Defence Strategy requires extensive
consultation with a range of Government departments to ensure synchronisation
and appropriate nesting with other Government priorities.
If pressed: Is implementation of the Defence Strategic Review facing any delays?
This was an ambitious review with many directions being progressed
concurrently. Measures have been put in place to monitor and respond to risks as
they arise.
If pressed: What oversight arrangements are in place to ensure Defence meets the
Government’s strategic intent for the Defence Strategic Review?
As set out in the Defence Strategic Review, governance arrangements to oversee
the implementation of Government’s directions are three-tiered. Tier 3 is the
Defence Strategic Review Management Board; Tier 2 is the External Advisory
Panel and; Tier 1 is the National Security Committee of Cabinet. The Defence
Strategic Review Management Board has met monthly since 1 May 2023 (nine
meetings to date).
The External Advisory Panel will operate for an initial period of 18 months. The
External Advisory Panel met monthly between 10 May and 23 November 2023. It
resumed meetings on 1 February 2024.
The External Advisory Panel’s role is to align Defence’s implementation efforts
with Government’s direction, consider performance and risk reporting, and
provide independent progress assessments to Government.
If pressed: What is the cost of the Defence Strategic Review?
The Government’s National Defence Statement 2023 confirms the Government will
maintain the overall level of Defence funding over the Forward Estimates.
The Government will invest $19.6 billion over this period on the six immediate
priorities, an increase of $7.8 billion compared to existing Integrated Investment
Program provisions for these projects and activities.
If pressed: W
What are the costs associated with investing in Government’s immediate priorities
in response to the Defence Strategic Review?
To ensure affordability of these priorities within the Integrated Investment Program,
Defence is repurposing $7.8 billion worth of expenditure over the Forward Estimates by
cancelling, delaying or re-scoping other Defence projects or activities that are not
aligned with Government’s intent of the Defence Strategic Review.
Defence funding will increase over the medium term above its current trajectory to
implement the Defence Strategic Review, including the delivery of the
conventionally-armed, nuclear-powered submarine program through AUKUS.
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Supplementary Budget Estimates February 2024
PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
If pressed: What projects has Defence delayed, re-scoped or cancelled in response to the
Defence Strategic Review?
The Government will continue to make decisions to reprioritise or cancel Defence
projects that are no longer suited to our strategic circumstances.
The Government has already directed Defence to repurpose $7.8 billion worth of
expenditure over the Forward Estimates.
Immediate actions in response to the Defence Strategic Review include:
re-scoping LAND 400 Phase 3 – Land Combat Vehicle System (Infantry Fighting
Vehicle) to 129 vehicles, to provide one mechanised battalion; and
cancelling LAND 8116 Phase 2 – Protected Mobile Fires (second regiment of Army
self-propelled Howitzers).
The Integrated Investment Program is being reprioritised to fund immediate and
longer-term priorities, which Defence will consider as part of the 2024 National
Defence Strategy.
If pressed: How much is Defence funding expected to increase over the decade to support
implementation of the Defence Strategic Review?
The Government has included a spending provision in the Contingency Reserve for
increased Defence funding over the medium term to implement the Defence Strategic
Review.
The provision of approximately $30.5 billion in additional funding over the
medium term will take Defence funding to above 2.3 per cent of gross domestic
product by 2032-33.
If pressed: How has Defence engaged with industry on the outcomes of the Defence Strategic
Review?
Defence continues to conduct broad engagement and consultation with industry.
To enable Australian industry to deliver optimal capability, Defence is taking action to
streamline acquisition processes, particularly for small and medium enterprises.
The Government agreed current acquisition processes are not fit for purpose.
Australian industry content and domestic production should be balanced against
timely capability acquisition.
The Government has committed to releasing a Defence Industry Development Strategy.
This will be a critical step in delivering the reforms and capabilities identified in
the Defence Strategic Review.
Background
On 14 February 2023 the Defence Strategic Review was handed to Government by the
independent leads, His Excellency Professor the Hon Stephen Smith and Air Chief
Marshal Sir Angus Houston AK AFC (Retd).
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Supplementary Budget Estimates February 2024 PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
On 24 April 2023 the Government released the public version of the Defence Strategic
Review, the Government’s response to the Defence Strategic Review, and the National
Defence Statement 2023.
In response to the Defence Strategic Review, the Government directed Defence to
move away from White Papers to a biennial National Defence Strategy.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 14, Surface fleet review findings provided to DSR authors, Senator the Hon
Simon Birmingham (Liberal Party, South Australia) asked when the findings of the
surface combatant fleet review were provided to the Defence Strategic Review’s
authors.
QoN No. 15, DSR leads involvement in the Surface Fleet Review, Senator the Hon
Simon Birmingham (Liberal Party, South Australia) asked if the Defence Strategic
Review independent leads had provided any advice regarding the surface shipbuilding
review to the Deputy Prime Minister at the same time as the surface fleet review.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 30 October 2023 an individual requested a copy of Defence’s finalised estimates
briefing pack, and an index of back pocket briefs, for the 25 October 2023
Supplementary Budget Estimates. TThe decision to release documents is pending.
Recent Ministerial Comments
On 22 November 2023 the Minister for Defence Industry announced a new $2 billion
contract with Thales Australia to maintain and sustain Australia’s naval fleet in Sydney.
Relevant Media Reporting
On 25 November 2023 The Australian published an article by Greg Sheridan titled
‘Labour now desperately reactive, unable to hold a position from one day to the next’,
critiquing the Government’s approach to Defence Strategic Review implementation
progress and capability delivery.
Division:
Defence Strategic Review Implementation Task Force
PDR No:
SB23-001081
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Phone:
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Supplementary Budget Estimates February 2024
PDR No: SB23-001081
Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
Prepared by:
Cleared by Division Head:
Joanne Anderson
Ciril Karo
Assistant Secretary
First Assistant Secretary
Defence Strategic Review Implementation
Implementation, Defence Strategic Review
Task Force
Implementation Task Force
Mob:
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Ph:
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Mob:
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Ph:
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Date: 11 December 2023
Date: 12 December 2023
Cleared by Deputy Secretary:
Tom Hamilton
Date: 14 December 2023
Deputy Secretary
Defence Strategic Review Implementation Task Force
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates
Senator the Hon Simon Birmingham
Question Number: 14
Date question was tabled: 15 December 2023
Question
Senator BIRMINGHAM: Changing tack, when was the surface combatant fleet review finalised
by the review team?
Mr Hamilton: It was finalised and provided to the Deputy Prime Minister on 29 September.
…
Senator BIRMINGHAM: Were the work and findings of the review team provided to the
authors of the Defence Strategic Review?
Mr Hamilton: Yes.
Senator BIRMINGHAM: When was it provided to them?
Mr Hamilton: I’ll take that on notice.
Senator BIRMINGHAM: Before it was given to the DPM?
Mr Hamilton: I’ll take that on notice.
Answer
The final findings of the surface combatant fleet review were provided to the authors
of the Defence Strategic Review on 22 September 2023.
2023-24 Supplementary Budget Estimates
Senator the Hon Simon Birmingham
Question Number: 15
Date question was tabled: Not yet tabled
Question
Senator BIRMINGHAM: The DSR leads were involved in the process of the surface
shipbuilding review?
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Phone:
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Last updated: 14 December 2023
Defence Strategic Review Implementation
Key witnesses: Tom Hamilton
Mr Hamilton: That is correct.
Mr Moriarty: They had visibility of some of the work and had the opportunity to engage with
members of the review team.
Senator BIRMINGHAM: So it was an iterative process of engagement, by the sound of it.
Mr Hamilton: There was an ongoing process of engagement, yes.
Senator BIRMINGHAM: An ongoing process of engagement between Sir Angus and High
Commissioner Smith through that period?
Mr Hamilton: They were engaged, yes.
…
Senator BIRMINGHAM: Has any advice from the two of them been provided to the DPM at
the same time as or in parallel with the service fleet review?
Mr Hamilton: I’ll take that on notice.
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Joanne Anderson
Name: Tom Hamilton
Return to Index
Position: Assistant Secretary DSR Implementation
Position: Deputy Secretary
Division: DSR Implementation Task Force
Group: DSR Implementation Task Force
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
Army Restructure
Handling Note:
Chief of Army, Lieutenant General Simon Stuart, to lead.
Head Land Capability, Major General Richard Vagg, to support.
Key Messages
The Defence Strategic Review (DSR) requires that Army optimise for littoral
manoeuvre operations by sea, land and air, with enhanced long-range fires (including
land-based maritime strike) and close-combat capabilities.
The Review’s land domain force structure design priorities necessitate significant
changes to Army force posture and structure, shifting Army to a ‘focused’ force
structure, featuring combat brigades with specific roles and the relocation of some
capabilities to northern Australia.
Army implemented initial changes to its structure on 1 July 2023. The Deputy Prime
Minister announced further changes to force posture and force structure on
28 September 2023.
Army intends to manage changes to unit structures and locations through the usual
posting cycle in order to minimise disruption to affected personnel.
Defence acknowledges the impact these necessary changes will have on families and
is working to minimise the impost by working closely with Defence Housing Australia,
Defence support services, and state and local authorities, as well as rolling out the
changes over time.
Talking Points
Structure and posture changes announced on 28 September 2023
The 1st (Australian) Division will be designed for littoral manoeuvre by sea, land and air.
Continuing to be headquartered in Brisbane, and will command the following brigades
the:
1st Brigade, based in Darwin – a light combat brigade;
3rd Brigade, based in Townsville – an armoured combat brigade;
7th Brigade, based in Brisbane – a motorised combat brigade;
10th Brigade, based in Adelaide – to be raised as a long-range fires brigade; and
Littoral Manoeuvre Group will be established to operate Landing Craft, with its
units located with brigades in Darwin, Townsville and Brisbane.
The 2nd (Australian) Division commands all security and response brigades in Australia
and will maintain largely part-time brigades.
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
The Regional Force Surveillance Group will remain focused on security in northern
Australia.
Forces Command will focus on delivering improved training and preparedness, scalable
response options and the integration of new capabilities.
Army Aviation and Special Operations Command will continue their current
transformation pathways.
The 5th Battalion and 7th Battalion will again be linked to become 5th/7th Battalion,
the Royal Australian Regiment. It will be based in Darwin as part of the 1st Brigade.
The 1st Armoured Regiment will become an experimentation unit, redesigned to
deliver and integrate emerging technologies. It will remain in Adelaide as part of
9th Brigade.
Army equipment will be located as follows:
Townsville will become the home of Army’s armoured vehicles and Army attack
and medium-lift aviation.
Brisbane will be home to a motorised combat brigade.
Darwin will see changes within the light combat brigade. Aviation assets will
move from Darwin to Townsville.
Adelaide will be the home of Army’s long-range strike capability and integrated
air and missile defence capabilities.
s47C
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Implementation for soldiers and their families
Defence acknowledges the impact Army’s structural changes may have on Defence
families and is working to minimise the impact through a phased approach.
The majority of changes to unit structures and locations will commence from 2025.
Soldiers affected by the changes will be offered a range of posting and career options
to support them as units begin to transition to their new locations.
Defence Member and Family Support can assist with support during relocation and
connect soldiers and their families with community groups and local area resources.
Changes for the Northern Territory
Army’s presence in the Northern Territory will be broadly consistent over time. The
initial decrease in positions associated with the movement of Aviation capability to
Townsville will be offset by remediation of hollowness within 1st Brigade, and by the
proposed establishment of a Littoral Manoeuvre unit in the Northern Territory later in
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
the decade, subject to Government approval. Accordingly, the net impact on personnel
numbers between 2024 and 2030 is expected to be neutral.
1st Brigade will continue its transformation to become a light combat brigade,
optimised for littoral manoeuvre operations and to support the deployment of
long-range fires, including land-based maritime strike.
1st Brigade will grow modestly, with some personnel from 7th Battalion, the Royal
Australian Regiment moving to Darwin from 2025 to join with 5th Battalion in forming
the 5th/7th Battalion the Royal Australian Regiment.
Attack Helicopters will relocate from Darwin to Townsville.
Changes for North Queensland
Army’s presence in Townsville will grow to support DSR implementation. Personnel will
post into these positions over time and within the capacity of Defence and the local
community to accommodate this change.
Over the next three posting cycles, the number of Army personnel in Townsville will
increase by around 500. This includes growth of 3rd Brigade offset by a small decline in
the Aviation.
The change in Aviation establishment is a result of the DSR-directed relocation of both
Attack Helicopter (to Townsville) and UH-60 Black Hawk (from Townsville). The CH70
Chinook capability will remain in Townsville.
Subject to Government approval, Army’s presence in Northern Queensland is likely to
increase by additional personnel later in the decade in order to establish a Littoral
Manoeuvre unit. Government will confirm the location of this unit following further
planning and community engagement.
3rd Brigade will be equipped with all components of the combined arms fighting
system including tanks, combat reconnaissance vehicles, infantry fighting vehicles,
armoured engineers, and self-propelled artillery. 3rd Brigade will also continue to
generate key components of Army’s contribution to the ADF’s amphibious force.
Each infantry battalion in Townsville has a specific role, delivering complementary
effects as part of the Integrated Force. The 3rd Battalion, the Royal Australian
Regiment, will receive the new Redback infantry fighting vehicle from 2026 and
transition into a mechanised battalion.
Army’s Regional Force Surveillance Unit presence in Far North Queensland will not
change.
Changes for South East Queensland
Personnel numbers at Enoggera will increase by around 100 between now and 2030.
Additionally, Army’s presence in Oakey will increase by approximately 150 with the
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
Phone:
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
DSR-directed rebalance of Aviation capabilities. Subject to Government approval, Army
may establish a Littoral Manoeuvre unit in Southeast Queensland.
7th Brigade will re-role as a motorised combat brigade optimised for littoral
manoeuvre. The brigade will retain Boxer combat reconnaissance vehicles and M777
towed artillery, but will no longer operate Abrams tanks or M113 armoured personnel
carriers.
Changes for South Australia
Army’s presence in Adelaide will change to expand the ADF’s long-range strike
capability and more effectively leverage the ecosystem in South Australia that brings
together defence industry, science and technology, and innovation.
Initially, the number of personnel posted to Adelaide will reduce by approximately 400
over 2025-26, before increasing from 2026 with the growth of 10th Brigade. By 2030,
the number of personnel will have returned to current levels.
9th Brigade will remain a composite (part-time and full-time) brigade and from 2025
will change its role from an armoured combat brigade to a security and response
brigade.
From 2025 the 7th Battalion will no longer have a presence in Adelaide.
The 1st Armoured Regiment will remain in Adelaide and will be reorganised and
re-roled as an innovation and experimental action unit. The Regiment will assume
a critical mission to rapidly integrate emerging technologies across Army.
The Regiment’s proximity to Defence Science and Technology Group and defence
industry will help expedite new and emerging technology into soldiers’ hands.
The introduction of an experimental unit in Adelaide presents an opportunity to
work with, and develop, South Australia’s strong defence industry base.
The 1st Armoured Regiment’s tanks will be reallocated from South Australia as it
assumes its new role.
Army will raise a fires brigade in 10th Brigade, Adelaide to introduce and operate
long-range fires, land-based maritime strike and air and missile defence capabilities.
The 16th Regiment, Royal Australian Artillery, will relocate from Woodside Barracks to
the Edinburgh Defence Precinct from 2024. This move is synchronised with the
introduction of Army’s next generation air and missile defence system.
Personnel numbers in Adelaide will initially decrease, then increase close to current
levels as the new long-range strike units are established.
Adelaide will continue to host the 9th Brigade and, when raised, the 10th Brigade.
Adelaide will remain a key hub for the Royal Australian Air Force and Defence Science
and Technology Group, and a focus for defence industry and innovation.
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
Recruiting and Retention
Achievement of staffing levels to 2027, and remediation of Army workforce hollowness
beyond 2027, will be contingent on recruiting and retention outcomes, which are a key
focus for Chief of Personnel.
If pressed: What is the reason for changing Army’s force structure design?
Army is re-posturing in line with Government direction to deliver on the DSR
recommendations by transitioning from a balanced force structure to a focused force
structure, featuring combat brigades with specialised roles.
If pressed: How much will these changes cost?
Defence will implement these changes within its allocated budget.
If pressed: What posting options are there for soldiers affected by these changes?
There are a range of posting options available to soldiers affected by the changes.
Many members affected by the changes to Adelaide-based units will continue to serve
there until the completion of their posting tenure.
Other options include:
continuing to serve in their trade through posting to another location or serving
in their current location within their current trade where positions are available;
continuing to serve in their location by transferring to another trade where there
will be an increased demand;
serving in another location by transferring to a new trade that will be important
to Army in coming years; and
continuing to serve in their location by transitioning to another service category.
If pressed: Will there be enough housing or family services in places with an increased Army
presence such as Darwin and Townsville?
Consultation has commenced with states and territories to determine the impact of
increased Army personnel in various locations. This includes housing, education and
other support services.
Darwin and Townsville are well-established Defence garrison towns with mature
services for Defence families.
Postings will be phased over the decade in order to ensure development of appropriate
housing solutions to support changing workforce requirements.
Army, with Defence Housing Australia, will continue to work with local governments
and communities on long-term solutions.
If pressed: Will these changes affect the previously announced scale or schedule of the tank
upgrade project?
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
Phone:
s47E(d)
/
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
The changes do not affect Army’s main battle tank upgrade under project LAND 907
Phase 2 and combat engineering vehicle under project LAND 8160 Phase 1.
If pressed: Where will IFVs and protected mobile fires be allocated?
Self-propelled howitzers and Infantry Fighting Vehicles will be delivered to Townsville
and Puckapunyal (training centre).
If pressed: Shouldn’t long-range strike capabilities be posted in northern Australia, not
Adelaide?
Adelaide has the infrastructure, ranges and links to the Air Warfare Centre, and the
proximity to the Defence Science and Technology Group and defence industry that will
best support this new capability’s introduction into service and continued
enhancement.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 112, Movement of troops to Townsville, Senator the Hon Simon Birmingham
(Liberal Party of Australia, South Australia) asked when Defence Housing Australia was
advised that 500 soldiers would relocate to Townsville due to the restructure
announced on 28 October 2023, and when the Minister was made aware.
QoN No. 101, Various questions related to personnel separating following the
restructure announcement, Senator the Hon Simon Birmingham (Liberal Party of
Australia, South Australia) asked questions related to the consequences of the
restructure announcement from 28 September 2023.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
Recent Ministerial Comments
On 28 September 2023, the Deputy Prime Minister issued a media release announcing
that Government will implement key recommendations of the DSR, and restructure
and re-posture Army in accordance with the land domain force structure design
priorities the Review outlined.
Relevant Media Reporting
Army’s restructure announcement received significant media across all major
publications. A selection is below.
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
Phone:
s47E(d)
/
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Phone:
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/
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
On 29 September 2023, Army Technology published an article by Andrew
Salerno-Garthwaite titled Australian Army to U-turn on multi-role brigade restructure.
On 28 September 2023, the North West Star published an article by Andrew Brown and
Dominic Giannini titled Australian troops head north in major army restructure.
On 28 September 2023, a media release was issued by Defence announcing the
changes.
On 28 September 2023, the Sydney Morning Herald published an article by Matthew
Knott titled ‘This will make us weaker’: Army restructure faces backlash.
Division:
Army
PDR No:
SB23-001082
Prepared by:
Cleared by Division Head:
Brigadier James Davis
Major General Richard Vagg
Director General Future Land Warfare
Head Land Capability
Mob: s22
Mob: s22
Date: 25 January 2024
Date: 31 January 2024
Consultation:
N/A
Cleared by DSR:
Date: 30 November 2023
Major General Matthew Pearse
Head Plans and Capability integration
DSR Implementation Task Force
Cleared by Deputy Secretary:
Date: 19 December 2023
Lieutenant General Simon Stuart
Chief of Army
Army
s47E(d)
Questions on notice referred to within the brief:
Senate Estimates 25 October 2023
Senator: Senator the Hon Simon Birmingham
Portfolio Question reference number: 101
Date Question was tabled: Not yet tabled.
Question:
1. How many personnel leaving the Australian Defence Force, in particular the Army, have
given reasons for leaving related to the DSR, the cutting of Army programs including the Land
400/3 IFV program, and/or the Army restructuring announced by the Government in late
September?
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
2. What analysis has been undertaken since May 2022 into reasons for resigning from the
ADF?
a. Please provide a copy of any reports or analysis prepared.
3. How many new personnel, by rank, joined the Army (regular or reserve) since 28
September 2023?
4. How many, by rank, provided notice they intended to leave the Army since 28 September
2023?
5. What analysis has been undertaken since May 2022 into motivations for joining the ADF
and hesitancies in joining the ADF?
a. Please provide a copy of any reports or analysis received.
6. What reports or feedback has Defence received about the Army restructure from
personnel since 28 September 2023, about the impact on personnel, morale or otherwise?
7. Was the significant culling of the IFV program a factor in the Army restructure?
8. What work was done in anticipating the disruption and adverse impact of the restructure
and regional redeployment of personnel and equipment, and what impacts and results were
expected by those making the decisions and their advisers within Defence?
9. What is the Government’s plan to recruit and retain people for the northern Australia
units?
10. What is the Government’s plan to address the chronic housing shortage?
11. What additional funding is required for base upgrades resulting from the restructure?
12. What will the new innovation and experimentation unit do? Given it is being formed out
of Armoured unit elements, how many personnel are happy to remain in the unit?
Answer:
Not yet tabled.
Senate Estimates 25 October 2023
Senator: Senator the Hon Simon Birmingham
Portfolio Question reference number: 112
Date question was tabled: Not yet tabled.
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
Phone:
s47E(d)
/
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Phone:
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/
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Additional Estimates February 2024
PDR No: SB23-001082
Last updated: 31 January 2024
Army Restructure
Key witnesses: Lieutenant Simon Stuart, Major General Richard Vagg
Question:
1. Can the department advise when DHA was first made aware that 500 troops would be
moving to Townsville as part of a restructure announced on 28 September 2023?
a. When was the Minister made aware?
Answer:
Not yet tabled.
Prepared By:
Cleared By:
Name: Brigadier James Davis
Name: Major General Cheryl Pearce
Position: Director General Future Land Warfare
Position: Deputy Chief of Army
Return to Index
Division: Land Capability Division
Group/Service: Army
Phone:
s47E(d)
/
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001083
Last updated: 5 December 2023
2024 National Defence Strategy
Key witness: Tom Hamilton
2024 National Defence Strategy
Handling Note:
Deputy Secretary Defence Strategic Review Implementation Task Force, Tom Hamilton,
to lead.
Key Messages
The Government, through the National Defence Statement 2023, directed Defence to
deliver a National Defence Strategy in 2024, which will be updated biennially.
The 2024 National Defence Strategy will provide a comprehensive outline of Defence
policy, planning, capabilities and resourcing, including reprioritisation of the Integrated
Investment Program, to align with the intent and recommendations of the Defence
Strategic Review.
Talking Points
As directed by Government in the National Defence Statement 2023, Defence has
commenced development of a National Defence Strategy.
The Defence Strategic Review identified that shifting from intermittent
White Papers to a biennial National Defence Strategy will allow Defence to keep
pace with the rapidly evolving strategic environment, respond immediately to
Government priorities and provide clear signals to Defence and defence industry.
The inaugural National Defence Strategy will be delivered in 2024.
The National Defence Strategy will be updated on a biennial basis.
The 2024 National Defence Strategy will present a fundamental reform of Australia’s
defence strategy, planning, force generation, posture, and structure, preparedness,
force employment and international engagement for Government consideration.
The 2024 National Defence Strategy will see the alignment of defence strategy,
capability and resourcing, including through reprioritisation of the Integrated
Investment Program.
These reforms and reprioritisations are in line with the intent and
recommendations of the Defence Strategic Review.
As part of the development process for the 2024 National Defence Strategy the
Defence Integrated Investment Program will be reprioritised to fund immediate and
longer-term investments to deliver an integrated and focused ADF.
A public version of the 2024 National Defence Strategy will be released, following
consideration by the Government.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Tom Hamilton
Position: Director Policy and Engagement
Position: Deputy Secretary
Division: Defence Strategic Review Policy and
Group/Service: Defence Strategic Review
Return to Index
Engagement
Implementation Task Force
Phone:
s47E(d)
/
s22
Phone:
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/
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PDR No: SB23-001083
Last updated: 5 December 2023 2024 National Defence Strategy
Key witness: Tom Hamilton
Background
On 14 February 2023 the Defence Strategic Review was handed to the Government by
its independent leads.
On 24 April 2023 the Government released the public version of the Defence Strategic
Review, the Government’s response to the Defence Strategic Review and the
National Defence Statement 2023.
In response to the Defence Strategic Review, the Government directed Defence to
move away from White Papers, and instead produce a National Defence Strategy on a
biennial basis, the first of which will be delivered in 2024.
Supporting Information
Questions on Notice
Budget Estimates: 31 May 2023
QoN No. 105, Defence planning and review publications, Senator Simon Birmingham
(Liberal Party, South Australia) asked about the schedule, scope, resourcing, process,
ramifications and progress of the 2024 National Defence Strategy.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is still pending.
On 30 October 2023 an individual requested a copy of Defence’s finalised estimates
briefing pack, and an index of back pocket briefs, for the 25 October 2023
Supplementary Budget Estimates. TThe decision to release documents is still pending.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 6 November 2023 The Mandarin published an article by Mark O’Neill titled The
2024 national defence strategy: Getting it right, discussing the importance of ensuring
the 2024 National Defence Strategy is practical.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Tom Hamilton
Position: Director Policy and Engagement
Position: Deputy Secretary
Division: Defence Strategic Review Policy and
Group/Service: Defence Strategic Review
Return to Index
Engagement
Implementation Task Force
Phone:
s47E(d)
/
s22
Phone:
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/
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Additional Estimates February 2024
PDR No: SB23-001083
Last updated: 5 December 2023 2024 National Defence Strategy
Key witness: Tom Hamilton
Division:
Defence Strategic Review Policy and Engagement
PDR No:
SB23-001083
Prepared by:
Cleared by Division Head:
s47E(d)
Director, Policy and
Amy Hawkins, First Assistant Secretary,
Engagement
Policy and Engagement
Defence Strategic Review Implementation
Defence Strategic Review Implementation
Task Force
Task Force
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 5 December 2023
Date: 8 December 2023
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Tom Hamilton
Date: 13 December 2023
Deputy Secretary
Defence Strategic Review Implementation Task Force
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates
Senator Simon Birmingham
Question Number: 105
Date question was tabled: Not yet tabled
Question
Please provide a response to each question for the following:
•
National Defence Strategy
•
Surface Combatant Fleet Review
•
Defence Estate Audit
•
Rebuild of the Integrated Investment Program
•
Update of the National Naval Shipbuilding Enterprise Strategy; Naval Shipbuilding and
Sustainment Plan
•
Options for the increase of guided weapons and explosive ordinance (GWEO) stocks
•
Establishment of Advanced Strategic Capabilities Accelerator (ASCA)
1. When was the review/recommendation supposed to be completed and provided to
Government?
2. Has this deadline been met, or will that deadline be met?
3. If the review/recommendation is delayed, what are the reasons for the delay?
4. Is the process being held up by the Government, or particular Ministers?
Prepared By:
Cleared By:
Name: s47E(d)
Name: Tom Hamilton
Position: Director Policy and Engagement
Position: Deputy Secretary
Division: Defence Strategic Review Policy and
Group/Service: Defence Strategic Review
Return to Index
Engagement
Implementation Task Force
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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PDR No: SB23-001083
Last updated: 5 December 2023 2024 National Defence Strategy
Key witness: Tom Hamilton
5. Have the reviewers been directed by the Government as to process, approach, substance
or recommendations during the review?
6. If the review has been delivered to Government, what is the timeframe for the
Government’s response?
a. Is this consistent with any prior commitments to timing?
7. Why does the Government need to take that long to provide a response?
8. Have there been any personnel changes at the top level or in the review secretariat since
it commenced, and can you please identify the lead reviewers appointed by Government?
9. What has been the impact on Defence resourcing and progress with programs as a result
of the review being in progress?
10. What programs are unable to proceed due to the review being commissioned, and the
delays in waiting for the review and the Government’s response?
11. What decisions are pending the outcomes, recommendations and implementation of the
review/recommendation?
What impacts do these delayed decisions, and extended timeframes have on program costs,
program delivery and capability outcomes for Australia’s national defence?
Answer
[NOT YET TABLED]
Prepared By:
Cleared By:
Name: s47E(d)
Name: Tom Hamilton
Position: Director Policy and Engagement
Position: Deputy Secretary
Division: Defence Strategic Review Policy and
Group/Service: Defence Strategic Review
Return to Index
Engagement
Implementation Task Force
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
DSR Surface Fleet Review
Handling Note:
Secretary of Defence Greg Moriarty and Chief of the Defence Force General Angus
Campbell to lead.
Deputy Secretary Defence Strategic Review Implementation Tom Hamilton and Chief of
Navy Vice Admiral Mark Hammond to support.
Key Messages
Government accepted the Defence Strategic Review recommendation and initiated an
independent analysis of Navy’s surface combatant fleet capability.
The Independent Analysis Team provided its report to the Government at the end of
Quarter 3, 2023.
Talking Points
What activities did the Independent Analysis Team undertake?
In line with its Terms of Reference, the Independent Analysis Team reviewed the
Royal Australian Navy’s surface combatant fleet capability to ensure the fleet’s size,
structure and composition will complement the capabilities of the forthcoming
conventionally-armed, nuclear-powered submarines.
The Terms of Reference are classified and are not publicly available.
Who were the members of the Independent Analysis Team?
The Independent Analysis Team had extensive experience in naval ship design,
construction and delivery, maritime operations, force design, complex procurement,
and national level project management.
The Independent Analysis Team members included:
Chair, Vice Admiral William Hilarides, United States Navy (Ret’d), former
Commander, United States Naval Sea Systems Command (United States citizen);
Ms Rosemary Huxtable AO, PSM, former Secretary of the Department of Finance
(Australian citizen); and
Vice Admiral Stuart Mayer AO, CSC and Bar, Royal Australian Navy, former Deputy
Commander, United Nations Command and previous Commander of the
Australian Fleet (Australian citizen).
The Strategic Advisor was Jim McDowell, former Chief Executive Officer of Nova
Systems, who served in this role until 28 July 2023. Following this, he commenced as
the Deputy Secretary, Naval Shipbuilding and Sustainment on 31 July 2023.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
How much did you spend on contractors and consultants supporting the independent
analysis?
As at 1 December 2023 total expenditure for the Independent Analysis Team members’
services and reimbursable costs was approximately $0.44 million (GST exclusive).
A further $1.33 million (GST exclusive) has been spent on other contractor/consultant
support.
Description
Estimated contract value
Total expenditure as at
(GST exclusive)
1 December 2023 (GST exclusive)
Independent Analysis Team
$0.51 million
$0.44 million
members
Other contractor or
$1.64 million
$1.33 million
consultant support
Total
$2.15 million
$1.77 million
What access to Defence and Government information did the Independent Analysis Team
members have?
The independent analysis was informed by intelligence, capability, operational and
strategic assessments of Australia’s national shipbuilding and sustainment enterprise
and Navy’s surface combatant fleet.
Input to the independent analysis was drawn from internal and external experts and
consultations with senior personnel.
What body of work was undertaken by the Independent Analysis Team?
The Independent Analysis Team undertook three intensive workshops and conducted
regular classified meetings, with additional meetings held with Defence Strategic
Review Independent Leads.
On 9 June 2023 the Independent Analysis Team conducted a Defence Industry
Engagement Session attended by 110 individuals representing 83 industry partners and
state and territory governments. 23 one-on-one sessions were held with industry
participants and state government representatives. The Independent Analysis Team
received 14 unsolicited proposals at the Industry Engagement Session.
Over the period 31 July to 3 August 2023 Ms Huxtable and Vice Admiral Mayer
undertook site visits to South Australian and Western Australian shipyards where they
observed the shipbuilding capacity and infrastructure to better understand the
continuous naval shipbuilding and industrial capacity of the sites at Osborne and
Henderson. The visits were Defence-led and supported.
The Independent Analysis Team received and considered an additional 16 unsolicited
proposals from over 12 companies, of which some provided multiple proposals. These
proposals are commercial-in-confidence.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
Throughout the review period, the Independent Analysis Team conducted regular
senior stakeholder engagements with the Departments of Prime Minister and Cabinet,
Foreign Affairs and Trade, Treasury and Finance.
How did Defence support the independent analysis?
Defence supported the Independent Analysis Team by coordinating briefings with
senior officials; providing intelligence and capability assessments; and facilitating
operational analysis and external consultation.
Defence managed secretariat functions and costs associated with supporting the
Independent Analysis Team’s operation.
What is the status of the Report?
The report was provided to the Deputy Prime Minister on 29 September 2023.
s47C
.
How does the Independent Analysis address the impact of crewing issues on the Anzac
frigates?
The Independent Analysis Team considered a range of matters in developing the
report, including Navy and industry workforce capacity and capability.
The report is under consideration by the Government and is not publicly available.
How were the members of the Independent Analysis Team chosen?
The membership of the Independent Analysis Team was recommended by the
Secretary of Defence to the Deputy Prime Minister, in consultation with the Defence
Strategic Review Independent Leads.
What contracts were in place to support the independent analysis and how much did it cost?
As at 1 December 2023 the total estimated value of engagements for the three
Independent Analysis Team members, Strategic Advisor, capability modeller, research
analysis provider and strategic writer is approximately $1.77 million (GST exclusive),
including services and reimbursable costs.
At Budget Estimates in May 2023 original costs were estimated to be $1.09 million (GST
exclusive) and included the Independent Analysis Team members, capability modeller
and strategic writer. This figure was updated (see Question on Notice 64) to
$2.13 million (GST exclusive) to reflect updated estimates as at 21 June 2023. As at 1
December 2023 the estimated value of engagements for other contractors supporting
the Independent Analysis including services and reimbursable costs is approximately
$1.33 million (GST exclusive) the:
strategic advisor is $50,156.82 (GST exclusive);
strategic modeller is $460,999.59 (GST exclusive);
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
strategic writer is $148,668.44 (GST exclusive); and
research and analysis provider $666,316.90 (GST exclusive).
Vice Admiral Mayer was engaged as a reserve ADF officer, and not through his current
employment with Ernst and Young – a role which was de-conflicted through the
confidentiality and conflict of interest processes.
Individual consultancy rates reflect the level of expertise each member brings to their
role on the team.
Why did you engage a retired United States Navy member to Chair the independent analysis
activity?
The United States is an important ally to Australia and the Chair, Vice Admiral Hilarides,
has extensive experience in shipbuilding and submarine programs.
Vice Admiral Hilarides, also has a thorough understanding of Australia’s naval
requirements and programs. He has been providing advice to the Government since
2016 as part of the Naval Shipbuilding Expert Advisory Panel and its precursor, the
Naval Shipbuilding Advisory Board.
How were confidentiality and conflicts of interest being managed for the Independent
Analysis Team members?
Appropriate security, confidentiality and conflict of interest arrangements were in place
and reviewed regularly.
Relevant foreign government approvals were also in place to support these
engagements.
Background
Navy’s surface combatant force currently consists of three Hobart Class guided missile
destroyers and eight Anzac Class frigates. Nine Hunter Class frigates optimised for
anti-submarine warfare are planned for delivery from the early-2030s.
Additional to that force, Navy operates 13 patrol boats, consisting of Armidale Class
and evolved Cape Class patrol boats. A further 12 Arafura Class offshore patrol vessels
are also planned for delivery.
Timeline
Date
Action
6 November 2023
The Independent Analysis Team Secretariat disbanded.
29 September 2023
The Independent Analysis Report submitted to the Deputy Prime Minister.
The Independent Analysis Team conducted a Defence Industry Engagement
9 June 2023
Session.
The Government publicly released the Defence Strategic Review and advised
24 April 2023
of the independent analysis of Navy’s surface combatant fleet.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
Date
Action
22 March 2023
The Independent Analysis Team Secretariat established.
The classified Independent Analysis Team Terms of Reference signed by the
22 March 2023
Secretary and the Chief of Defence Force.
14 February 2023
Defence Strategic Review submitted to the Government.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 105, Defence planning and review publications, Senator the Hon Simon
Birmingham (Liberal, South Australia) asked questions regarding deadlines, progress
and impact of the Surface Combatant Fleet review on projects and programs.
Budget Estimates: 31 May 2023
QoN No. 63, Defence Strategic Review Terms of Reference, Senator the Hon Simon
Birmingham (Liberal, South Australia) asked if public version of the Independent
Analysis Team’s Terms of Reference was available.
QoN No. 64, Surface Fleet Review Terms of Reference, Senator the Hon Simon
Birmingham (Liberal, South Australia) requested a cost breakdown of contractors and
consultants supporting the independent analysis activity.
Freedom of Information (FOI) Requests
On 2 October 2023 an individual employed in the media sector sought access to
documents submitted by Austal, BAE Systems, Babcock, Navantia, Luerssen and
ASC Pty Ltd to the Independent Analysis Team led by Admiral Hilarides, between
1 May 2023 and 30 September 2023. Access to documents was refused and the
applicant advised on 15 January 2024.
Recent Ministerial Comments
The Deputy Prime Minister’s statement in Question Time on 17 October 2023 referred
to the Government receiving the independent analysis of Navy’s surface combatant
fleet on 29 September, and that the Government is considering its recommendations
with intention to respond in the early part of 2024.
The Deputy Prime Minister and Minister for Defence Industry acknowledged in a media
release that the independent analysis was handed to Government on 29 September
2023.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
Relevant Media Reporting
Australian media has reported extensively on the Surface Fleet Review.
On 19 January 2024, ASPI’s The Strategist published an article by Kim Beazley titled
Australia’s disappeared surface combatant fleet, which notes the decline of financial
resources for Navy’s surface combatant fleet capability.
On 15-17 January 2024, The Australian published several articles by Ben Packham:
Crew shortage leaves frigates high and dry and Red Sea support yet to arrive, Albanese
admits. The articles note crew issues have impacted Anzac frigates and Hobart class air
warfare destroyers.
On 17-18 December 2023 there was broad media coverage of a report by AiGroup and
the Australian National University calling for a new leader to boost defence industry
capability, including The Australian Financial Review article by Andrew Tillett, titled
Australia ill-prepared for major war, report says.
On 6 December 2023 The Canberra Times published two articles by Bradley Perrett:
The government’s choices as it considers a new surface ship plan and Working out a
surface ship plan. Each discussed the role of surface combatants, Navy’s current fleet,
the Hunter Class frigate and Navantia’s offer of an alternative.
On 1 December 2023 The Australian published commentary by Michael Shoebridge of
the Australian Strategic Policy Institute titled No equipment, no crew, no support:
Defence falls down. It noted the Defence Strategic Review, Hunter Class frigate and
shipbuilding challenges.
On 13 November 2023 ABC News published Defence admits ‘poorly executed’ process
in $45 billion future frigate selection, mentioning the future of the Hunter Class frigate
in light of the surface combatant fleet review.
Division:
Navy Capability Division
PDR No:
SB23-001084
Prepared by:
Cleared by Division Head:
s47E(d)
Commodore Ash Papp, CSC, RAN
Director Future Surface Combatants
Acting Head Navy Capability
Surface Combatants & Aviation Branch
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 24 January 2024
Date: 24 January 2024
Cleared by DSR:
Ciril Karo
Date: 25 January 2024
FAS DSR Implementation
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Vice Admiral MD Hammond, AO, RAN
Date: 9 January 2024
Chief of Navy
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator the Hon Simon Birmingham
Question Number: 105
Date question was tabled: Not yet tabled
Question
Please provide a response to each question for the following:
National Defence Strategy
Surface Combatant Fleet Review
Defence Estate Audit
Rebuild of the Integrated Investment Program
Update of the National Naval Shipbuilding Enterprise Strategy; Naval Shipbuilding and
Sustainment Plan
Options for the increase of guided weapons and explosive ordinance (GWEO) stocks
Establishment of Advanced Strategic Capabilities Accelerator (ASCA)
1. When was the review/recommendation supposed to be completed and provided to
Government?
2. Has this deadline been met, or will that deadline be met?
3. If the review/recommendation is delayed, what are the reasons for the delay?
4. Is the process being held up by the Government, or particular Ministers?
5. Have the reviewers been directed by the Government as to process, approach,
substance or recommendations during the review?
6. If the review has been delivered to Government, what is the timeframe for the
Government’s response?
a. Is this consistent with any prior commitments to timing?
7. Why does the Government need to take that long to provide a response?
8. Have there been any personnel changes at the top level or in the review secretariat
since it commenced, and can you please identify the lead reviewers appointed by
Government?
9. What has been the impact on Defence resourcing and progress with programs as a
result of the review being in progress?
10. What programs are unable to proceed due to the review being commissioned, and
the delays in waiting for the review and the Government’s response?
11. What decisions are pending the outcomes, recommendations and implementation of
the review/recommendation?
12. What impacts do these delayed decisions, and extended timeframes have on program
costs, program delivery and capability outcomes for Australia’s national defence?
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001084
Last updated: 25 January 2024
DSR Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell AO DSC; Tom Hamilton; Vice Admiral Mark Hammond AO
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Commodore Ash Papp, CSC, RAN
Position: Director Future Surface Combatants
Position: Acting Head Navy Capability Return to Index
Division: Navy Capability Division
Group/Service: Navy
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001085
Last updated: 13 December 2023
Northern Bases Resilience
Key witnesses: Celia Perkins, Pat Sowry
Northern Bases Resilience
Handling Note:
Deputy Secretary, Security and Estate, Celia Perkins, to lead.
Acting First Assistant Secretary, Infrastructure, Pat Sowry, to support on matters
relating to specific base upgrades.
Key Messages
Accelerating investment in northern bases infrastructure is a priority for the
Government, having agreed in-principle to the Defence Strategic Review
recommendation that upgrades and development of our northern network of bases,
ports, and barracks should commence immediately.
Significant work is now underway, including redeveloping the Larrakeyah Defence
Precinct, refurbishing the RAAF Base Darwin airfield, upgrading HMAS Coonawarra
maritime structures, and upgrading four training areas and ranges across the Northern
Territory.
The key line of forward deployment for the ADF stretches across Australia’s northern
maritime approaches.
Talking Points
As announced by the Government on 27 April 2023, between 2023–24 and 2026–27,
Defence is planning to undertake capital works in the north under the Enterprise Estate
and Infrastructure Program, including:
$2 billion for upgrades and refurbishments at Defence airbases;
$1 billion for upgrades to land, communications and joint estate capabilities;
$600 million in maritime estate investments; and
$200 million to fast-track existing programs.
Over this period approximately $730 million in additional funding is forecast to be
spent on projects across northern bases under the Estate Works Program.
Northern bases’ resilience will be enhanced through remediating and upgrading
facilities and enabling infrastructure at individual bases as well as across the base
network.
A resilient network of bases must also be supported by an effective logistics system
across and into northern Australia.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Pat Sowry
Position: Acting Director Program Management
Position: Acting First Assistant Secretary
Division: Infrastructure
Infrastructure
Return to Index
Phone: s22
Group/Service: Security And Estate
Phone: s22
Page 1
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001085
Last updated: 13 December 2023
Northern Bases Resilience
Key witnesses: Celia Perkins, Pat Sowry
Base resilience is embedded in all infrastructure projects according to the need and
priorities of that base –requiring tailored responses for each base. Matching the right
resilience strategy to each base or network of bases aims to maximise resilience at the
lowest cost.
Proposed expenditure
In 2023–24 Defence is forecasting $1.3 billion of investment across northern base
infrastructure.
In 2024–25 infrastructure investment is set to grow to approximately $2.1 billion across
our northern bases.
As part of approved funding at four key bases over the forward estimates:
RAAF Base Tindal will receive approximately $1.2 billion to support current and
new capabilities;
Cocos (Keeling) Islands will receive approximately $508 million for airfield
upgrades to enable P-8A Poseidon maritime surveillance operations from our
remote island territories and throughout the northern Indian Ocean;
HMAS Coonawarra and Larrakeyah Defence Precinct will receive approximately
$280 million; and
approximately $275 million will be spent at HMAS Cairns.
This projected expenditure may change pending project approvals and progress.
Projects and Achievements
Defence is currently delivering a number of projects in the north including:
RAAF Base Darwin and Mount Bundey Airfield, Northern Territory
Defence is maintaining aircraft pavements, lighting and airfield drainage at
these locations, valued at $336.5 million, under the National Airfields
Capital Works program. Completion is expected in late 2025.
RAAF Base Tindal, Northern Territory
Defence is upgrading engineering services, including power and water,
providing new living-in accommodation, and providing new and refurbished
facilities, valued at $511.1 million, under the RAAF Base Tindal
Redevelopment project. Completion is expected in late 2026.
Under the United States Force Posture Initiatives RAAF Tindal Airfield
Works and Associated Infrastructure project, Defence is constructing a new
aircraft apron and aviation fuel farm, and upgrading and extending the
runway and taxiway, valued at $1.071 billion. Completion is expected in late
2026.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Pat Sowry
Position: Acting Director Program Management
Position: Acting First Assistant Secretary
Division: Infrastructure
Infrastructure
Return to Index
Phone: s22
Group/Service: Security And Estate
Phone: s22
Page 2
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001085
Last updated: 13 December 2023
Northern Bases Resilience
Key witnesses: Celia Perkins, Pat Sowry
Robertson Barracks, Northern Territory
Defence is providing new living-in accommodation, messing and recreation
facilities, valued at $389.1 million, under the Robertson Barracks Base
Improvements project. Completion is due in early 2027.
Bradshaw Field Training Area, Robertson Barracks Close Training Area, Kangaroo
Flats Training Area and Mount Bundey Training Area, Northern Territory
Defence is upgrading ranges and training areas, including new range control
facilities and supporting infrastructure, valued at $747 million, under the
United States Force Posture Initiatives Northern Territory Ranges and
Training Areas project. Completion is expected in late 2025.
HMAS Cairns, Queensland
Defence is upgrading engineering services, including water and sewerage,
and refurbishing buildings, valued at $15.6 million, under the HMAS Cairns
Mid-Term Refresh project. Completion is due in late 2024.
Defence will also upgrade maritime infrastructure, valued at $280 million,
to support the Arafura Class Offshore Patrol Vessels.
Defence is also proposing a number of new projects including:
RAAF Base Learmonth Redevelopment Enabling KC-30 Operations
This project proposes to improve the airfield, including widening and
strengthening the runway and taxiway, valued at $662.2 million. The
project has been referred to the Parliamentary Standing Committee on
Public Works and, subject to Parliamentary approval, construction is
scheduled to commence in mid-2024 and be completed by mid-2028.
RAAF Base Darwin Mid-Term Refresh
This project proposes to address condition, capacity and compliance issues
by upgrading the main gate and remediating in-ground engineering
services, such as stormwater and sewerage, valued at $203.5 million. The
project has been referred to the Public Works Committee and, subject to
Parliamentary approval, construction is scheduled to commence in late
2024 and be completed by early 2027.
National Airfields Capital Works Project
This project proposes to maintain airfield pavements, lighting and drainage
at RAAF Bases Curtin and Learmonth, valued at $237.0 million. Subject to
Public Works Committee exemption approval, construction is scheduled to
commence in mid-2024 and be completed by mid-2028.
Industry capacity
Industry capacity may constrain the resilience options available to Defence – something
that is being reviewed and planned for on a case-by-case basis.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Pat Sowry
Position: Acting Director Program Management
Position: Acting First Assistant Secretary
Division: Infrastructure
Infrastructure
Return to Index
Phone: s22
Group/Service: Security And Estate
Phone: s22
Page 3
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001085
Last updated: 13 December 2023
Northern Bases Resilience
Key witnesses: Celia Perkins, Pat Sowry
Defence is exploring how to better leverage investment by other government
departments, states and territories and the private sector. This may include the use of
Commonwealth equity injection and civil aerodromes and ports, including those
operated by the resources sector.
Regional and remote areas of Australia’s north stand to benefit from the economic
opportunities of improving northern base infrastructure.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 1 December 2023, The Canberra Times published an article by Bradley Perrett titled
Northern exposure: after 18 months, Labor is still not fixing our air bases.
Division:
Infrastructure Division
PDR No:
SB23-001085
Prepared by:
Cleared by Division Head:
s47E(d)
Pat Sowry
Acting Director Program Management
Acting First Assistant Secretary Infrastructure
Capital Facilities and Infrastructure Branch
Security and Estate Group
Mob:
s22
Mob:
s22
Ph:
s47E(d)
Date: 13 December 2023
Date: 14 December 2023
Prepared By:
Cleared By:
Name: s47E(d)
Name: Pat Sowry
Position: Acting Director Program Management
Position: Acting First Assistant Secretary
Division: Infrastructure
Infrastructure
Return to Index
Phone: s22
Group/Service: Security And Estate
Phone: s22
Page 4
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001085
Last updated: 13 December 2023
Northern Bases Resilience
Key witnesses: Celia Perkins, Pat Sowry
Consultation:
Cleared by CFO:
s47E(d)
Date: 13 December 2023
Acting Assistant Secretary Finance – Enabling Groups
Defence Finance Group
Cleared by Deputy Secretary:
Celia Perkins
Date: 18 December 2023
Deputy Secretary
Security and Estate Group
Prepared By:
Cleared By:
Name: s47E(d)
Name: Pat Sowry
Position: Acting Director Program Management
Position: Acting First Assistant Secretary
Division: Infrastructure
Infrastructure
Return to Index
Phone: s22
Group/Service: Security And Estate
Phone: s22
Page 5
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001086
Last updated: 1 February 2024
Defence Estate Audit
Key witnesses: Celia Perkins, Dan Fankhauser
Defence Estate Audit
Handling Note:
Deputy Secretary Security and Estate, Celia Perkins to lead.
First Assistant Secretary, Defence Estate Audit, Dan Fankhauser to support.
Key Messages
The Government agreed to the Defence Strategic Review recommendation that an
enterprise-wide audit be undertaken to baseline Defence estate and infrastructure.
Two external leads were appointed to oversee the conduct and delivery of the audit.
The Estate Audit Report was delivered to the Government in December 2023.
Talking Points
The Defence Strategic Review recommended an enterprise-wide audit be undertaken
to baseline Defence estate and infrastructure, including protective security and work
health and safety.
Led by two independent co-leads, Ms Jan Mason and Mr Jim Miller, the Defence Estate
Audit Report made a number of recommendations, informed by site visits, stakeholder
consultations, review of policy and legislation and data analysis, to ensure Defence’s
estate is best structured to support the force posture, force generation and resourcing
of Defence in response to Australia’s strategic circumstances.
The Defence Estate Audit Report was delivered to Government in December 2023.
The Defence Estate Audit Report forms part of an ongoing process of ensuring
Defence’s estate holdings reflect contemporary and future needs as part of the
National Defence Strategy.
If pressed: Will the report be made publically available?
This will be subject to further Government consideration.
If pressed: How many recommendations did the report make?
The independent co-leads made a number of wide ranging recommendations informed
by extensive site visits, stakeholder consultations, policy and legislation reviews and
data analysis.
If pressed: What sites did the co-leads visits?
To appreciate the size, complexity and diversity of the Defence estate, the independent
co-leads visited a sample of 70 Defence establishments across each state and territory.
Prepared By:
Cleared By:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary, Defence Estate Audit
Return to Index
Defence Estate Audit
Security and Estate Group
s47E(d)
/ s22
s47E(d)
/ s22
Page 1
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001086
Last updated: 1 February 2024
Defence Estate Audit
Key witnesses: Celia Perkins, Dan Fankhauser
This included airfields, maritime structures, research laboratories, medical
centres, training establishments, reserve and cadet depots, logistics units,
exercise areas, explosive ordnance storage and surplus land holdings under active
disposal.
If pressed: Does the Defence Estate Audit Report recommend base closures?
A thorough assessment was undertaken to determine if the current estate holdings
met Defence’s contemporary needs, particularly in high-density urban areas.
The Defence Estate Audit Report made a number of recommendations which may
impact some sites
If pressed: Will Defence sites be made available for affordable housing?
The audit considered alternate use options for sites that are underutilised or present
commercial opportunities to reinvest in Defence capability.
The future use of surplus sites to support other initiatives, including affordable housing,
would be subject to the Government’s consideration.
If pressed: Will Defence sites be handed over for community use?
Any disposal of surplus land will be managed in accordance with the Commonwealth
Property Disposal Policy.
If pressed: What consultation did the independent co-leads have with state and territory
governments?
Targeted consultations were undertaken with Commonwealth departments, and all
state and territory governments.
If pressed: What external stakeholder consultation have you done?
The independent co-leads participated in a number of external stakeholder
engagements with Commonwealth, state and territory officials, local government
representatives, service providers and industry associations.
Stakeholder engagements occurred through a variety of means, including roundtable
discussions, one-on-one meetings, virtual forums and site visits.
If pressed: How will heritage values of historic sites be protected?
When selling property, Defence is required to ensure any purchaser is able to manage
site environmental or heritage values.
If pressed: Did Defence receive any public submissions?
Formal submissions were not sought noting public consultation was undertaken as part
of the Defence Strategic Review.
Prepared By:
Cleared By:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary, Defence Estate Audit
Return to Index
Defence Estate Audit
Security and Estate Group
s47E(d)
/ s22
s47E(d)
/ s22
Page 2
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001086
Last updated: 1 February 2024
Defence Estate Audit
Key witnesses: Celia Perkins, Dan Fankhauser
If pressed: Why are the Terms of Reference not publically available?
A joint media release on 28 August 2023 confirmed appointment of the independent
co-leads and a provided a summary of the scope and purpose of the audit.
If pressed: How were the independent co-leads selected?
Defence generated a short-list of potential candidates with a range of relevant public
and private sector skills and experience.
The independent co-leads were selected based on their relevant skills and insights from
managing large infrastructure and property portfolios.
If pressed: What is the value of their contracts?
Each independent co-lead was engaged via an outcome-based contract to deliver a
final report to Government by the end of 2023.
The total contract value for each co-lead was $297,000 (GST inclusive).
This total value was comprised of a fixed-fee component payable on completion of
defined milestones and a provision for reimbursable expenses.
On 14 September 2023, the contracts were published on AusTender.
Background
On 1 August 2023, the Government approved the appointment of the two independent
co-leads.
Significant internal and external stakeholder consultation with other Government
departments and state and territory representatives was conducted as part of the
audit.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
In Q
QoN 105, Defence Planning and Review Publications, Senator Simon Birmingham
(Liberal, South Australia) asked to be provided with details of when the Defence Estate
Audit, along with other plans and strategies would be provided to Government.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
Prepared By:
Cleared By:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary, Defence Estate Audit
Return to Index
Defence Estate Audit
Security and Estate Group
s47E(d)
/ s22
s47E(d)
/ s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001086
Last updated: 1 February 2024
Defence Estate Audit
Key witnesses: Celia Perkins, Dan Fankhauser
Recent Ministerial Comments
On 17 November 2023, the Assistant Minister for Defence presented at the
Infrastructure Partnerships Business Breakfast, where he outlined the need for and
importance of the Defence Estate Audit.
On 28 August 2023, the Deputy Prime Minister and the Assistant Minister for Defence
announced the appointment of the Defence Estate Audit independent leads.
Relevant Media Reporting
On 14 November 2023, the Australian Financial Review published an article by Andrew
Tillett titled Defence welcomes infrastructure deal makers amid rising tensions
suggests Defence will consider expanding use of private finance to accelerate the
delivery of new infrastructure.
On 13 November 2023, the Australian Financial Review published an article by Andrew
Tillett titled Marles hunts for $25b to spend on Defence needs which suggested that
the Defence Estate Audit is expected to recommend that assets in the southern states
be sold and proceeds used to upgrade bases in the north.
On 9 October 2023, the Australian Strategic Policy Institute published an article by
Raelene Lockhorst titled Will the 2023 Defence Estate Audit be any different from the
last ones? which highlighted the lack of implementation of previous review
recommendations and argues the need to retain and not divest Defence sites.
On 29 August 2023, the Australian Financial Review published an article by Campbell
Kwan titled Three top sites Defence could sell for new homes which cited that Victoria
Barracks Melbourne, Sydney and Brisbane could generate $1.3 billion if sold.
Division:
Defence Estate Audit
PDR No:
SB23-001086
Prepared by:
Cleared by Division Head:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary
Defence Estate Audit
Defence Estate Audit
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 23 November 2023
Date: 5 December 2023
Consultation: N/A
Prepared By:
Cleared By:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary, Defence Estate Audit
Return to Index
Defence Estate Audit
Security and Estate Group
s47E(d)
/ s22
s47E(d)
/ s22
Page 4
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001086
Last updated: 1 February 2024
Defence Estate Audit
Key witnesses: Celia Perkins, Dan Fankhauser
Cleared by DSR:
Ciril Karo
Date: 6 December 2023
First Assistant Secretary Defence Strategic
Review
Cleared by Deputy Secretary:
Celia Perkins, Deputy Secretary
Date: 14 December 2023
Security and Estate Group
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates 25 October 2023
Senator Simon Birmingham
Question Number: 105
Date question was tabled: Not yet tabled.
Question
Please provide a response to each question for the following:
•
National Defence Strategy
•
Surface Combatant Fleet Review
•
Defence Estate Audit
•
Rebuild of the Integrated Investment Program
•
Update of the National Naval Shipbuilding Enterprise Strategy; Naval Shipbuilding and
Sustainment Plan
•
Options for the increase of guided weapons and explosive ordinance (GWEO) stocks
•
Establishment of Advanced Strategic Capabilities Accelerator (ASCA)
1.
When was the review/recommendation supposed to be completed and provided to
Government?
2.
Has this deadline been met, or will that deadline be met?
3.
If the review/recommendation is delayed, what are the reasons for the delay?
4.
Is the process being held up by the Government, or particular Ministers?
5.
Have the reviewers been directed by the Government as to process, approach,
substance or recommendations during the review?
6.
If the review has been delivered to Government, what is the timeframe for the
Government’s response?
a.
Is this consistent with any prior commitments to timing?
7.
Why does the Government need to take that long to provide a response?
8.
Have there been any personnel changes at the top level or in the review secretariat
since it commenced, and can you please identify the lead reviewers appointed by
Government?
Prepared By:
Cleared By:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary, Defence Estate Audit
Return to Index
Defence Estate Audit
Security and Estate Group
s47E(d)
/ s22
s47E(d)
/ s22
Page 5
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001086
Last updated: 1 February 2024
Defence Estate Audit
Key witnesses: Celia Perkins, Dan Fankhauser
9.
What has been the impact on Defence resourcing and progress with programs as a
result of the review being in progress?
10.
What programs are unable to proceed due to the review being commissioned, and the
delays in waiting for the review and the Government’s response?
11.
What decisions are pending the outcomes, recommendations and implementation of
the review/recommendation?
12.
What impacts do these delayed decisions, and extended timeframes have on program
costs, program delivery and capability outcomes for Australia’s national defence?
Answer
Not yet Tabled
Prepared By:
Cleared By:
s47E(d)
Dan Fankhauser
Executive Officer
First Assistant Secretary, Defence Estate Audit
Return to Index
Defence Estate Audit
Security and Estate Group
s47E(d)
/ s22
s47E(d)
/ s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001087
Last updated: 10 January 2024
Reforming Defence Legislation
Key witnesses: Matt Yannopoulos PSM, Adrian D’Amico
Reforming Defence Legislation
Handling Note:
Associate Secretary, Matt Yannopoulos to lead.
Chief Counsel, Adrian D’Amico to support.
Key Messages
On 9 March 2023, Government called for public submissions on reforms to the
Defence Act 1903 and related legislation to better position Defence as an agile,
integrated, war-fighting enterprise.
Consultation was informed by a paper outlining conceptual reforms to Defence
legislation to meet the challenges of a rapidly changing strategic environment and the
realities of modern competition and armed conflict.
Defence received 79 submissions in response.
Talking Points
If pressed: Why might Defence need to reform its legislation?
Australia increasingly faces challenges to our national interests and regional security
and stability, including a complex strategic environment of competition and coercion.
Defence operates in a more ambiguous environment, where unconventional activities
are increasingly being adapted to challenge sovereignty and habits of cooperation.
Australia’s ability to operate efficiently in this environment, including as part of
Government directed operations to deter coercion and lower the risk of conflict,
requires appropriate projection of military power and use of Defence capabilities.
Our current legal framework does not provide sufficient legislative authority for the full
range of Defence activities required across the ‘cooperation-competition-conflict’
spectrum.
Further, the existing legal framework does not consider the capabilities, technologies
and methods required for robust denial and deterrence in our strategic environment,
including, for example, grey-zone, cyber or space contexts.
Reforms will enable AUKUS initiatives, including securing nuclear-powered submarine
capability, appropriate sharing and protection of information relating to Defence
capabilities and activities, and the development and testing of advanced capabilities.
If pressed: When wil these reforms be progressed?
The matter remains under consideration by Government.
Prepared By:
Cleared By:
Name: Anna Rudziejewski
Name: Matt Yannopoulos PSM
Position: General Counsel - Defence
Position: Associate Secretary
Return to Index
Division: Defence Legal
Group/Service: Associate Secretary Group
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001087
Last updated: 10 January 2024
Reforming Defence Legislation
Key witnesses: Matt Yannopoulos PSM, Adrian D’Amico
If pressed: How was public consultation undertaken?
A six-week period of public consultation was undertaken from 9 March to 21 April 2023
as an initial call for input on the scope and direction for future reforms to legislation.
Defence has also engaged in targeted consultation with groups who have a unique
interest in Defence legislation, including industry partners, First Nations community
groups, veteran groups, and State and Territory governments.
If pressed: What were the findings from public consultation?
The submissions included a range of views, acknowledging the rapidly changing
strategic environment in which Defence must operate, and the necessity for Defence
legislation to continue to evolve to meet these challenges.
Submissions highlighted a number of critical insights, including:
-
Suggestions to improve Defence processes to support industry collaboration and
development of innovative technologies.
-
Proposals to clarify Defence’s legislative framework in the context of State and
Territory laws, Defence’s workforce, information and data.
-
Sovereignty-related implications for the Government and Parliament’s decision-
making powers in a context of increased interoperability with international
partners.
-
Conducting appropriate consultation when considering the impact of Defence
activities on the environment, communities, interest groups and the public.
Defence has published an analysis report on the Defence website.
If pressed: Will reforms include a parliamentary decision-making power to commit Australia to
war?
No. The Joint Standing Committee on Foreign Affairs, Defence and Trade has
completed an inquiry into how Australia makes decisions to send service personnel into
international armed conflict. The inquiry’s report was tabled on 31 March 2023.
On 8 August 2023 the Government released its response to the report. The response
included agreement to establish a new Joint Statutory Committee on Defence and work
is underway separately to implement this.
If pressed: Will future reforms consider the security risks posed by climate change?
Any reforms proposed must look beyond the strategic risks posed in the next decade.
Defence seeks to ensure a flexible, focused, fit-for-purpose framework that can adapt
to any unforeseen changes in the strategic environment, including those posed by
climate change.
Prepared By:
Cleared By:
Name: Anna Rudziejewski
Name: Matt Yannopoulos PSM
Position: General Counsel - Defence
Position: Associate Secretary
Return to Index
Division: Defence Legal
Group/Service: Associate Secretary Group
Phone:
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Additional Estimates February 2024
PDR No: SB23-001087
Last updated: 10 January 2024
Reforming Defence Legislation
Key witnesses: Matt Yannopoulos PSM, Adrian D’Amico
Background
On 9 March 2023 the Government announced a call for public submissions on reforms
to the
Defence Act 1903 and related legislation to better position Defence as an agile,
integrated, war-fighting enterprise.
Stakeholders were invited to comment on three broad initiatives, which encompassed
the following key considerations:
-
Provide appropriate authority and accountability for a range of effects and
activities integral to modern defence capabilities and operations, including
consideration of electronic and cyber effects, training and technology
development, and information collection, use and sharing for Defence purposes;
-
Enable a more comprehensive approach to defence security, shifting the focus of
the legal framework from the security of defence premises to security of Defence
capabilities;
-
Support greater interoperability with key allies and partners to ensure our
capabilities can integrate and operate for mutual strategic benefit;
In total, 79 submissions were received in response to the public consultation process,
summarised in the report published on the Defence website.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. The decision to
release documents is p
pending.
On 31 May 2023 an individual made a request seeking access to the Department’s May
Senate Estimates briefing pack. Documents were released on 7 August 2023.
Recent Ministerial Comments
On 9 March 2023, the Assistant Minister for Defence issued a media release that the
public consultation paper was available for comment.
Relevant Media Reporting
On 3 May 2023, in an article for The Guardian, Daniel Hurst wrote that Government’s
discussion paper on defence legislative reform had prompted the Greens to warn of
overreach and a lack of transparency.
Prepared By:
Cleared By:
Name: Anna Rudziejewski
Name: Matt Yannopoulos PSM
Position: General Counsel - Defence
Position: Associate Secretary
Return to Index
Division: Defence Legal
Group/Service: Associate Secretary Group
Phone:
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Additional Estimates February 2024
PDR No: SB23-001087
Last updated: 10 January 2024
Reforming Defence Legislation
Key witnesses: Matt Yannopoulos PSM, Adrian D’Amico
On 9 March 2023, Defence Connect reported that Government had called for public
feedback on the reform of the
Defence Act 1903, releasing a discussion paper on the
need for broader defence and national security realignment.
Division:
Defence Legal
PDR No:
SB23-001087
Prepared by:
Cleared by Division Head:
Anna Rudziejewski
Adrian D’Amico
General Counsel – Defence
Chief Counsel
Defence Legal
Defence Legal
Mob:
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Date: 13 December 2023
Date: 15 December 2023
Cleared by Associate Secretary :
Matt Yannopoulos PSM
Date: 19 December 2023
Associate Secretary
Associate Secretary Group
Prepared By:
Cleared By:
Name: Anna Rudziejewski
Name: Matt Yannopoulos PSM
Position: General Counsel - Defence
Position: Associate Secretary
Return to Index
Division: Defence Legal
Group/Service: Associate Secretary Group
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Additional Estimates February 2024
PDR No: SB23-001088
Last updated: 19 December 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip
United States
Handling Note
Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead
First Assistant Secretary International Policy, Bernard Philip, to support.
Key Messages
Australia’s alliance with the United States is unprecedented in scale, scope and
significance.
It affords us access to capability, technology and intelligence we could not acquire on
our own. It fundamentally strengthens rather than detracts from Australian sovereignty.
Our partnership is underpinned by a shared vision for a secure and resilient Indo-Pacific
and deep defence engagement including: operations and exercises; force posture;
capability innovation; industry collaboration; intelligence; and science and technology.
Australia and the United States are evolving their Alliance to effectively respond to the
deteriorating security environment, demonstrated by significant Ministerial
engagement throughout 2023.
Talking Points
What are Australia’s priorities for the alliance with the United States?
At the Australia-United States Ministerial Consultations on 29 July 2023 in Brisbane,
Australia and the United States advanced key Alliance priorities.
This included consolidating Enhanced Force Posture Cooperation by:
progressing upgrades at northern bases, including Royal Australian Air Force
Bases Darwin and Tindal, and scoping new investments at Royal Australian
Air Force Bases Curtin and Scherger;
increasing rotations of United States capabilities in Australia – including
United States Navy Maritime Patrol and Reconnaissance Aircraft, and
United States Army Watercraft (United States Army Watercraft participated in
Exercises TALISMAN SABRE and GARUDA SHIELD 2023);
welcoming more frequent and longer nuclear-powered submarine visits to
Australia – an important precursor to Submarine Rotational Force-West in 2027;
enabling the pre-positioning of United States Army stores and materiel following
Exercise TALISMAN SABRE, a first step towards establishing an enduring Logistics
Support Area in Australia (United States equipment is now being stored at
Albury-Wodonga); and
Prepared By:
Cleared By:
Name: Sally Timbs
Name: Susan Bodell
Position: Assistant Secretary United States
Position: Acting Deputy Secretary
Alliance and International Force Posture Policy
Group: Strategy, Policy, and Industry
Division: International Policy
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PDR No: SB23-001088
Last updated: 19 December 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip
declaring Enhanced Space Cooperation as a new Force Posture Initiative, enabling
increased cooperation, resilience and deterrence in this critical operational
domain.
Other priorities endorsed at Australia-United States Ministerial Consultations 2023
include:
maximising the strategic and technological advantage of the Alliance by
combining strengths and pooling resources including through streamlining
defence trade controls and information sharing;
furthering cooperation on Australia’s Guided Weapons and Explosive Ordnance
Enterprise by collaborating on a flexible Guided Weapons Production Capability in
Australia, with an initial focus on the potential co-production of Guided Multiple
Launch Rocket System missiles by 2025; and
deepening cooperation with partners, including Japan, India, the Republic of
Korea, Indonesia, and the Philippines, noting the dividend for security and
stability in the Indo-Pacific.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 125, Feedback from the United States on the Defence budget,
Senator James Paterson (Liberal, Victoria) asked what feedback and input has been
received from United States lawmakers, policymakers, or representatives of the White
House or United States Department of Defence (including any United States AUKUS
organisations) on the absence of new money for Defence in the Budget.
QoN No. 126, Labor Party policy regarding AUKUS, Senator James Paterson (Liberal,
Victoria) asked has internal Labor dissent toward AUKUS been raised by any United
States lawmakers, policymakers, or representatives of the White House or United
States Department of Defence (including any United States AUKUS organisations).
Freedom of Information (FOI) Requests
On 1 November 2023 an individual sought access to documents concerning the
bilateral meeting between the Deputy Prime Minister Richard Marles and the
United States Secretary of Defense during the Deputy Prime Minister’s visit to the
United States from 30 October to 1 November 2023. D
Defence is currently preparing a
response.
On 22 October 2023 an individual sought access to documents concerning the Chief of
the Defence Force’s attendance at the 9/11 Memorial in New York in December 2022,
and briefings relating to Scale Foundation (and/or Recharge Industries) for his United
States visit in December 2023. D
Defence is currently preparing a response.
Prepared By:
Cleared By:
Name: Sally Timbs
Name: Susan Bodell
Position: Assistant Secretary United States
Position: Acting Deputy Secretary
Alliance and International Force Posture Policy
Group: Strategy, Policy, and Industry
Division: International Policy
Phone:
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PDR No: SB23-001088
Last updated: 19 December 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip
On 30 August 2023 an individual sought access to documents concerning the
Deputy Prime Minister’s attendance at Baltusrol Golf Club on 4 December 2022.
Defence is currently preparing a response.
On 2 August 2023 an individual sought access to documents concerning the Deputy
Prime Minister’s bilateral meetings with United States Secretary of Defense in Australia
surrounding the Australia-United States Ministerial Consultations in July 2023. D
Defence
is currently preparing a response.
Recent Ministerial Comments
On 28 November 2023 the Minister for Defence Industry, in an address to the National
Press Club, reaffirmed the importance of the Australia-United States alliance to
Defence and Industry.
On 31 October 2023 the Deputy Prime Minister conducted a doorstop interview in
Washington, DC and spoke to a number of Alliance issues.
On 31 October 2023 the Deputy Prime Minister conducted a press conference prior to
his bilateral meeting with the United States Secretary of Defense.
On 30 October 2023 the Minister of Defence issued a media release ahead of his visit
to the United States.
On 25 October 2023 the Minister for Defence Industry issued media release ahead of
his visit to the United States for the Honolulu Leadership Dialogue.
Relevant Media Reporting
On 8 December 2023 the Australian Financial Review published an article by Gareth
Evans titled Why Australia can’t rely on the US to save it from China, exploring the
Australia-United States Alliance, Australia’s security environment, and China’s growing
regional dominance.
On 30 November 2023 ABC News published an article by Andrew Greene titled
Warning AUKUS legislation cedes Australian sovereignty over military technology,
questioning the effects amendments to Defence Trade Controls Act will have on
Australian sovereignty.
On 1 November 2023 The Sydney Morning Herald published an article by
Farrah Tomazin titled Black Hawk helicopters rushed to replace Australia’s Taipan Fleet,
highlighting a key outcome of the bilateral meeting between the Deputy Prime Minister
and United States Department of Defense Secretary on 31 October 2023.
On 31 October 2023 The Age published an article by Peter Hartcher titled Biden’s
Indo-Pacific chief talks of ‘renaissance’ between Australia and US, highlighting the
strength of the Alliance.
Prepared By:
Cleared By:
Name: Sally Timbs
Name: Susan Bodell
Position: Assistant Secretary United States
Position: Acting Deputy Secretary
Alliance and International Force Posture Policy
Group: Strategy, Policy, and Industry
Division: International Policy
Phone:
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PDR No: SB23-001088
Last updated: 19 December 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001088
Prepared by:
Cleared by Division Head:
Sally Timbs
Bernard Philip
Assistant Secretary
First Assistant Secretary
United States Alliance and International
International Policy Division
Force Posture Policy
Mob:
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Ph:
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Date: 8 December 2023
Date: 11 December 2023
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates
Senator James Paterson
Question Number: 125
Date question was tabled: Not yet tabled.
Question
What feedback and input had been received from US lawmakers, policymakers, or
representatives of the White House or US Department of Defence (including any US AUKUS
organisations) on the absence of new money for Defence in the Budget?
Answer
Not yet tabled.
Supplementary Budget Estimates
Senator James Paterson
Question Number: 126
Date question was tabled: Not yet tabled.
Prepared By:
Cleared By:
Name: Sally Timbs
Name: Susan Bodell
Position: Assistant Secretary United States
Position: Acting Deputy Secretary
Alliance and International Force Posture Policy
Group: Strategy, Policy, and Industry
Division: International Policy
Phone:
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Additional Estimates February 2024
PDR No: SB23-001088
Last updated: 19 December 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip
Question
Has internal Labor dissent toward AUKUS had been raised by any US lawmakers,
policymakers, or representatives of the White House or US Department of Defence (including
any US AUKUS organisations)?
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Sally Timbs
Name: Susan Bodell
Position: Assistant Secretary United States
Position: Acting Deputy Secretary
Alliance and International Force Posture Policy
Group: Strategy, Policy, and Industry
Division: International Policy
Phone:
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Additional Estimates February 2024
PDR No: SB23-001089
Last updated: ϭϯ&ĞďƌƵĂƌLJ
20Ϯϰ
China and South China Sea
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
China and South China Sea
Handling Note:
Deputy Secretary Strategy, Policy and Industry, Hugh Jeffrey, to lead on China.
Vice Chief of Defence Force, Vice Admiral David Johnston, to support on South China
Sea operational questions.
Head of Military Strategic Commitments, Air Vice-Marshal Stephen Chappell, to
support on South China Sea operational questions.
Key Messages
We continue to engage in defence dialogue with China. Dialogue is critical for us to
exchange policy positions and discuss differences.
We are clear-eyed that the relationship will remain challenging, but our approach to
engaging China is anchored in our national interests.
The ADF has maintained a robust program of international engagement with countries
in and around the South China Sea for decades.
The ADF will continue to exercise its rights under international law to freedom of
navigation and overflight in the South China Sea and supports others in doing the
same.
We strongly condemn unprofessional and unsafe military conduct that can endanger
the safety of ADF personnel and increase the risk of miscalculation.
We continue to raise any unsafe and unprofessional behaviour directly with the
Government of China through the appropriate channels in Canberra and Beijing.
Talking Points
Current Defence Engagement with China
It is in the interests of both Australia and China for our bilateral relationship to be
stabilised.
Australia continues to engage in defence dialogue with China.
Defence was represented at the 2023 Beijing Xiangshan Forum (29 -
31 October 2023) by a senior official.
Deputy Secretary Strategy, Policy and Industry met with a representative from
the People’s Liberation Army on 2 August 2023 in Jakarta.
Defence hosted a delegation from the People’s Liberation Army in Canberra on
22 March 2023 for a Defence Coordination Dialogue.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
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Industry
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Last updated: 19 December 2023 China and South China Sea
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
The Deputy Prime Minister also met his counterparts, most recently General Li Shangfu,
China’s then Minister of National Defense, at the Shangri-La Dialogue in June 2023.
If pressed: Will there be further engagement with the People’s Liberation Army?
Dialogue is key to stabilising the bilateral relationship.
We are not considering the resumption of joint military exercises at this time.
History of Australia-China Defence Engagement
Prior to the talks in March 2023 regular defence dialogues last occurred in 2019.
At that time, two bilateral defence dialogues were held with China: the two-star
Defence Coordination Dialogue and the four-star Defence Strategic Dialogue.
Australia’s defence relationship with China has, for many years, been focused on
maintaining communication and building mutual understanding.
If pressed: Australia-China defence engagement budget
The budget for defence engagement with China is limited as we do not have a
significant program to support.
In 2022-23, $40,000 was budgeted to facilitate the re-commencement of defence
dialogue.
Similar funding has been allocated for 2023-24.
Developments in China’s Presence and Military Capabilities
Defence closely monitors military capability developments in the region, including
those of China.
China’s military build-up is now the largest and most ambitious of any country since the
end of World War II.
This build-up is occurring without transparency or reassurance of China’s strategic
intent to the Indo-Pacific region.
China’s assertion of sovereignty over the South China Sea threatens the global
rules-based order in the Indo-Pacific in a way that adversely impacts Australia’s
national interests.
Australia wants to see China exercise its power in a way that enhances stability and
reinforces the international rules-based order.
We expect Beijing to be transparent about its capability and intentions.
If pressed: People’s Liberation Army attempted recruitment of ADF pilots
Defer to Deputy Secretary Security and Estate Group for specifics on the review
requested by the Deputy Prime Minister.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
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Industry
Phone:
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PDR No: SB23-001089
Last updated: 19 December 2023 China and South China Sea
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Taiwan
Australia remains committed to our one-China policy, and our approach to Taiwan has
not changed. In accordance with our one-China policy, Australia does not have a
military-to-military or defence relationship with Taiwan.
ADF Activities in the South China Sea
The ADF has a long history of operating in the South China Sea as part of Australia’s
robust program of international engagement with countries in and around the region.
Our position on the South China Sea is consistent and clear.
We continue to speak up for, and act in, our national interest to support a region
that is open, secure and prosperous.
The ADF undertakes routine port visits, maritime surveillance flights, cooperative
activities with partners and transits to and between Southeast and North Asia.
Our deployments are not directed towards any particular country.
These activities are always conducted in accordance with international law.
We have a substantial interest in the stability of the South China Sea and the norms and
laws that govern it.
Our operations support these freedoms and underpin prosperity by ensuring
waterways are open for trade.
ADF vessels and aircraft exercise Australia’s rights under international law to freedom
of navigation and overflight, including in the South China Sea.
Has the ADF experienced recent unsafe encounters with the People’s Liberation Army?
On 14 November 2023 HMAS Toowoomba experienced unsafe and unprofessional
conduct by a Chinese warship in the East China Sea.
HMAS Toowoomba had been in the region conducting operations in support of
United Nations sanctions enforcement.
Despite acknowledging HMAS Toowoomba’s communications, the Chinese vessel
approached at closer range than requested, and operated its hull-mounted sonar
in a manner that posed a risk to the safety of the Australian divers in the water.
The Australian divers have received appropriate medical assessment and care,
and no long-term health effects are expected.
The Government raised its serious concerns directly with the Government of China
through the appropriate channels in Canberra and Beijing.
As the Deputy Prime Minister stated in his media release on 18 November 2023 the
safety and wellbeing of ADF personnel continues to be of our utmost priority and
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
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Industry
Phone:
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Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Australia expects all countries, including China, to operate their militaries in a
professional and safe manner.
If pressed: What defines an ‘unsafe’ incident?
Defer to Head of Military Strategic Commitments or Vice Chief of the Defence Force.
If pressed: Did the Prime Minister raise the incident with President Xi Jinping?
This is a matter for the Department of the Prime Minister and Cabinet.
China Coast Guard’s behaviour towards Philippine military resupply missions to the Second
Thomas Shoal
The Government is deeply concerned by unsafe manoeuvres conducted by Chinese
vessels, which resulted in collisions and damage to Philippine vessels.
This behaviour increases the risk of miscalculation.
All activities in the oceans and seas must be consistent with United Nations Convention
on the Law of the Sea.
United Nations Convention on the Law of the Sea provides the foundation of
peace, security and stability in the maritime domain.
If pressed: Maritime cooperative activity with the Philippines
The first maritime cooperative activity (or ‘joint sail’) between Australia and the
Philippines navies in the South China Sea took place from 25-27 November 2023.
As the Deputy Prime Minister said in his joint statement with the Secretary of National
Defense of the Philippines ,the Hon Gilberto C Teodoro Jr, it “highlights our shared
commitment to exercising freedom of navigation and overflight consistent with
international law, in support of a peaceful, secure and stable Indo-Pacific.”
If pressed: China’s claims to Second Thomas Shoal
The 2016 South China Sea Arbitral Award found that Second Thomas Shoal was within
the Philippines’ Exclusive Economic Zone and continental shelf. This is final and binding.
Is China militarising the South China Sea?
We regularly raise our concerns with China about its militarisation of disputed features
in the South China Sea, its actions that disrupt other countries’ resource exploitation
activities, and its dangerous and coercive use of coast guard vessels and so-called
‘maritime militias’.
Are Australia’s activities in the South China Sea contributing to tensions in the region?
ADF vessels and aircraft have been operating in the South China Sea for decades.
Our pattern of activities has been longstanding and consistent, and reflects Australia’s
commitment to the rules and norms vital to the stability and prosperity of the region.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
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Industry
Phone:
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Last updated: 19 December 2023
China and South China Sea
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Background
On 14 November 2023 HMAS Toowoomba and crew experienced unsafe and
unprofessional conduct by a People’s Liberation Army-Navy vessel in an encounter in
the East China Sea.
Australian divers received appropriate medical assessment and care for minor injuries
(likely due to being subjected to sonar pulses from the Chinese destroyer). The dive
team were all subsequently cleared to return to normal duties.
At the time of the incident HMAS Toowoomba had stopped to conduct diving
operations to clear fishing nets that had become entangled around its propellers.
The Australian vessel was in international waters and communicated its intention to
conduct diving operations on normal maritime radio channels, and displayed the
internationally recognised signals.
Despite acknowledging the Australian ship’s communications, the People’s Liberation
Army-Navy vessel approached at closer range than requested, and operated its hull-
mounted sonar in a manner that posed a risk to the safety of the Australian divers in
the water.
The Government took appropriate action to raise its concerns regarding this incident
with the Government of China. Formal representations were issued through diplomatic
channels in Canberra on 16 November 2023 and in Beijing on 17 November 2023.
The Prime Minister travelled to Shanghai and Beijing on 4-7 November 2023. He held
meetings with President Xi Jinping, Premier Li Qiang and Mr Zhao Leji, Chairman of the
National People’s Congress Standing Committee. He also met President Xi Jinping on
17 November 2023 on the sidelines of the Asia-Pacific Economic Cooperation.
Defence sent a senior official from the International Policy Division to attend the
2023 Xiangshan Forum from 29-31 October 2023. The Xiangshan Forum is a 1.5 track
security dialogue held annually in Beijing. Media reporting noted Australian attendance.
On 11 December 2023 the Chinese Coast Guard fired a water cannon and blocked
vessels of the Filipino Coast Guard as they conducted a resupply mission to the BRP
Sierra Madre on Second Thomas Shoal. This followed incidents between Chinese and
Philippine vessels on 5 August, 22 October and 10 November 2023.
The Deputy Prime Minister met the now former Minister of National Defense,
General Li Shangfu, at the Shangri-La Dialogue on 4 June 2023.
The Deputy Prime Minister met with General Wei Fenghe, China’s former
Minister of National Defense, on two occasions last year at the:
Shangri-La Dialogue (12 June 2022); and
Association of Southeast Asian Nations Defence Ministers Meeting Plus
(22 November 2022).
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
&
s22
Industry
Phone:
s47E(d)
&
s22
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OFFICIAL
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001089
Last updated: 19 December 2023 China and South China Sea
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
On Wednesday 22 March 2023 Defence hosted a delegation from the People’s
Liberation Army in Canberra for a Defence Coordination Dialogue. This was the first
official dialogue between Defence and the People’s Liberation Army since 2019.
The last Secretary/Chief of Defence Force-level Defence Strategic Dialogue was held in
Sydney on 14 November 2019.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 20 November 2023 an individual made a request seeking documents provided to
the Deputy Prime Minister concerning the HMAS Toowoomba incident. TThe decision to
release documents is pending.
On 19 November 2023 an individual made a request seeking documents provided to
the Deputy Prime Minister concerning the HMAS Toowoomba incident. The decision to
release documents is pending.
Recent Ministerial Comments
The Minister for Foreign Affairs met Mr Liu Jianchao from the Chinese Communist
Party's International Department, where she conveyed the Government’s
“serious concerns” over the sonar incident on 30 November 2023.
The Deputy Prime Minister issued a Joint Statement with the Secretary of
National Defense of the Philippines, the Hon Gilberto C Teodoro Jr, on the Maritime
Cooperative Activity on 25 November 2023.
The Deputy Prime Minister described China as the “biggest trade partner” and
“biggest security and anxiety” for both Australia and India during his visit to New Delhi
on 21 November 2023.
On 18 November 2023 the Deputy Prime Minister issued a media release about the
HMAS Toowoomba sonar incident on 14 November 2023.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
&
s22
Industry
Phone:
s47E(d)
&
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001089
Last updated: 19 December 2023
China and South China Sea
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Relevant Media Reporting
On 11 December 2023 NewsCorp reported on the Chinese Coast Guard and
accompanying ships’ collision with Philippine vessels in the vicinity of Second Thomas
Shoal.
On 7 November 2023 numerous outlets including ABC, Financial Review, and 7 News
reported on the Prime Minister’s visit to Beijing.
On 13 October 2023 Reuters reported on Australian senior official attendance at
Xiangshan Forum with limited syndication in Australian online media.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001089
Prepared by:
Cleared by Division Head:
s47E(d)
Tom Menadue
Director East Asia
Acting First Assistant Secretary
North and South Asia Branch
International Policy Division
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 7 December 2023
Date: 7 December 2023
Consultation:
s47E(d)
Date: 4 December 2023
Military Strategic Commitments
Consultation:
s47E(d)
Date: 5 December 2023
Adviser China, Department of the Prime Minister and
Cabinet
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Prepared By:
Cleared By:
Name: s47E(d)
Name: Susan Bodell
Position: Director East Asia
Position: Acting Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
&
s22
Industry
Phone:
s47E(d)
&
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
Export Controls
Handling Note:
Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead.
First Assistant Secretary Defence Industry Policy, David Nockels, to support.
Key Messages
Australia takes its export control obligations seriously as a member of the international
export control regimes.
Each export application is assessed on a case-by-case basis to determine whether it
would be prejudicial to Australia’s national interests.
The legislated criteria considers issues relating to foreign policy, Australia’s
international obligations, human rights, national security and regional security.
If Defence assessed an overriding risk that the export may be used contrary to
Australia’s national interest, or to violate human rights, a permit would be refused.
Defence does not comment on individual exports, due to legal, privacy and
commercial-in-confidence obligations.
Talking Points
How are export applications assessed?
Each export application is assessed in accordance with Australian export controls
legislation and subject to a rigorous case-by-case assessment.
The legislated criteria considers foreign policy, Australia’s international
obligations, human rights, national security and regional security.
Consideration is also given to the nature and utility of the goods or technology for
export, the parties involved, end-user and end-use destination as well as
contemporary information drawn from our diplomatic network, our partners and
allies, our intelligence services and experience with exporters.
Australia assesses the risk of misuse, including diversion and alleged human rights
abuses as part of the permit assessment process.
If an export was assessed to be contrary to Australia’s national interest, including to
violate human rights, a permit would be refused.
Permits are required for a broad range of goods and technologies. This includes, but is
not limited to, munitions, radios, computer and software components and chemicals
that have legitimate civilian and commercial purposes.
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
Page 1
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OFFICIAL
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
If pressed: On weapons to Israel
Australia has not supplied weapons to Israel since the conflict began, and for at least
the past five years.
If pressed: How can Defence advise that 322 export permits have been granted to Israel since
2017 while also claiming no weapons have been sent to Israel for the last five years?
Australia’s export permit process relates to a wide variety of military and dual use
items. Permits are required for goods like radios, body armour, software, electronics,
vehicle parts, repair and return of parts and components, all listed on the Defence and
Strategic Goods List.
If pressed: About Defence’s transparency on defence exports
Defence is committed to transparency and regularly publishes data on its website.
Australia also reports annually to the United Nations as per its obligations under
the Arms Trade Treaty.
Defence is bound by legal, privacy and commercial-in-confidence obligations that affect
what information can be publicly shared.
If pressed: About Australia’s export compliance measures offshore
Defence maintains a robust case-by-case and risk-based approach to ensure that
military and dual-use goods are used responsibly outside Australia.
Our approach is in step with international partners.
Australia assesses the risk of misuse, including diversion to other entities, as part of its
permit decision before the goods or technology leave Australia.
Assessments are comprehensive and rigorous, drawing on contemporary information
and specialist advice, as required.
If Australia identifies material risks of misuse or diversion, it will refuse permits.
The Defence Trade Controls Amendment Bill 2023, introduced in November last year,
further strengthens our export control framework. It will provide greater oversight
regarding the transfer of controlled goods and technologies from both within and
outside of Australia, to foreign entities.
If pressed: About the Defence Trade Controls Act 2012 Review.
On 29 August 2023 the Government appointed Mr Peter Tesch and
Professor Graeme Samuel AC to co-lead the second review of the Defence Trade
Controls Act 2012. The review will examine the legislation in the context of broader
reforms around the protection of sensitive and critical technologies, ensuring the Act
remains effective, efficient and fit for purpose.
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
The first review of the Defence Trade Controls Act 2012 was undertaken in 2018 by
Dr Vivienne Thom AM.
Since 2018 Defence implemented recommendations to improve outreach and
address permit delays.
Protective security measures have also evolved to enhance the security of
emerging critical and dual-use technologies in the changing strategic
environment.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 3 November 2023
QoN No. 69, Export Controls Financial Data, Senator David Pocock (Independent,
Australian Capital Territory) asked for information on export controls financial data
relating to determinations to not grant permits.
Supplementary Budget Estimates: 25 October 2023
QoN No. 7, EExports to South Sudan/Sudan, Senator David Shoebridge (Greens,
New South Wales) asked for information about what defence export permits were
approved from 2017 to 2022 to Sudan.
QoN No. 11, Defence export permits granted/pending, Senator David Shoebridge
(Greens, New South Wales) asked for information on the number of defence export
permit applications granted to Israel since 7 October 2023 and if there any pending
applications.
QoN No. 12, Defence export permit – Styr rifles, Senator David Shoebridge (Greens,
New South Wales) asked what defence export permits granted to Indonesia from 2021
to date, and have any permits related to Steyr rifles.
Senate: 12 July 2023
QoN No. 2231, Defence, Senator Jordan Steele-John (Greens, Western Australia) asked
for information on military exports to Sudan, reviews into exporting arms to Sudan and
whether Defence could confirm that no Australian exports were being used to
perpetrate human rights abuses.
Freedom of Information (FOI) Requests
On 4 December 2023 an individual made a request seeking access to a copy of a list of
all defence export permits authorised and rejected each year for the past five years
broken down by country. D
Defence is considering the request.
On 15 November 2023 an individual made a request seeking access to a copy of any
document confirming the number of military export permits issued to the United States
from 7 October to 15 November 2023. D
Defence is preparing a response to this request.
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
On 6 November 2023 an individual made a request seeking access to details of records,
policy or contracts of arms exports to Israel from 1 January 2015 to 5 November 2023.
Defence is seeking clarification on the scope of the request.
On 16 October 2023 an individual made a request seeking access to a copy of any
document confirming the number of military export permits issued to Israel from
7 October 2023 to date (as at 16 October 2023). D
Defence is preparing a response to
this request.
On 2 August 2023 an individual made a request seeking access to details of permits
including conditions issued for the export of firearms to Indonesia between 2018 and
2021. D
Defence is preparing a response to this request.
On 9 March 2023 an individual made a request seeking access to the total number of
defence export licenses that have been granted from Australia to Saudi Arabia and the
United Arab Emirates from 26 March 2015 to 1 March 2023. D
Documents were released
on 6 April 2023.
Recent Ministerial Comments
The Minister for Foreign Affairs responded to a Question without Notice in the Senate
advising that Australia has not supplied weapons to Israel since the conflict began and
for at least the past five years, referring to Australia’s robust export control framework
on 5 December 2023.
The Minister for Foreign Affairs responded to a Question without Notice in the Senate
outlining the Government had not supplied weapons to Israel since the conflict with
Hamas began and for at least the last five years on 15 November 2023.
The Deputy Prime Minister told the ABC that Israel has not sought any weapons from
Australia and we have not provided any on 7 November 2023.
Relevant Media Reporting
On 1 December 2023 the ABC News published an article by RMIT ABC Fact Check titled
David Shoebridge says Australia has been selling ‘weapons, after weapons, after
weapons’ to Israel. Is that correct?, discussing whether Australia’s export control
framework required greater scrutiny.
On 29 November 2023 the Guardian Australia published an article by Daniel Hurst and
Sarah Basford Canales titled Australian arms and ammunition exports to Israel totalled
$13m over past five years, data reveals, discussing trade figures on Australian exports
to Israel and approach to transparency.
On 26 November 2023 The Canberra Times published an article by Lauren Sanders
titled End our weapons export secrecy, discussing Australia’s defence exports and
perceived lack of transparency.
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
Australian media has reported on increased scrutiny of defence export permits to Israel
since the start of the Israel-Hamas conflict on 7 October 2023 and during the last five
years.
Australian media has reported on the review of the Defence Trade Controls Act 2012
and the Defence Trade Controls Amendment Bill 2023, which was tabled in Parliament
on 30 November 2023.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001090
Prepared by:
Cleared by Division Head:
Emily Hall
David Nockels
Assistant Secretary
First Assistant Secretary
Defence Export Controls
Defence Industry Policy Division
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 7 December 2023
Date: 8 December 2023
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates 3 November 2023
Senator David Pocock
Question Number: 69
Date question was tabled: Not yet tabled
Question
1. Can Defence Export Controls provide data for the 2022-23 financial year indicating how
many of DEC’s determinations were delivered to Australian companies as ‘preliminary
assessments’ notifying the relevant company of an ‘intention not to grant permits’ for their
exports?
2. What is the total number of instances in 2022-23 in which the relevant company
responded to a ‘notification of intention not to grant permits’ by providing submissions or
further information to dispute the ‘preliminary assessment’?
3. What is the total number of instances in 2022-23 in which the determination contained in
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
Page 5
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Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
the ‘preliminary assessment’ was then overturned – and the export permit granted – as a
consequence of the aforementioned submissions or further information?
Answer
Not yet tabled.
Supplementary Budget Estimates 25 October 2023
Senator David Shoebridge
Question Number: 7
Date question was tabled: Not yet tabled
Question
What did Defence approve to sell to South Sudan and Sudan in 2017, 2018, 2019, 2021, and
2022? What was approved?
Answer
Not yet tabled.
Supplementary Budget Estimates 25 October 2023
Senator David Shoebridge
Question Number: 11
Date question was tabled: Not yet tabled
Question
1. Have any export permits to Israel been granted since 7 October 2023?
2. Are there any pending applications?
Answer
Not yet tabled.
Supplementary Budget Estimates 25 October 2023
Senator David Shoebridge
Question Number: 12
Date question was tabled: Not yet tabled
Question
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
When it comes to 101 defence export permits that were granted to Indonesia in 2021 and
2022 and heaven knows how many since, did any of them relate to the Steyr rifles, examples
of which have been found in West Papua and have been used brutaly against the West
Papuan people? Did any of them relate to that?
Answer
Not yet tabled.
Senate – 12 July
Senator Jordon Steele-John
Question Number: 2231
Date question was tabled: 12/7/2023
Question
1. What detailed information can the Department provide as to all military exports to Sudan
over the past 5 financial years, including the current financial year.
2. Is there currently any reviews into exporting arms to Sudan in the wake of the recent
conflict.
3. Can the Department confirm that no Australian exports are being used to perpetrate
human rights abuses.
Answer
1. Export permits are required for a broad range of goods and technologies, not limited to
weapons. Over the past five financial years, Defence has issued a total of 11 permits for the
export of controlled goods or technology to Sudan. The breakdown is as follows:
Number of permits for military dual use exports issued between 01/07/17 and 30/06/23
Sudan
2017
2018
2019
2020
2021
2022
2023
0
4
4
0
2
1
0
These were assessed under the legislative criteria specified in the Customs (Prohibited
Exports) Regulation 1958 or the Defence Trade Control Regulation 2013. The criteria includes
consideration of human rights and Australia’s international obligations. These were also
informed by advice from the Australian Sanctions Office at the Department of Foreign Affairs
and Trade.
2. The Government is advised that Defence is not aware of any reviews into exporting arms
to Sudan. Export assessments consider compliance with the United Nations Security Council
and Australian autonomous sanctions.
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001090
Last updated: 19 December 2023
Export Controls
Key witnesses: Hugh Jeffrey; David Nockels
3. If Defence identified that an export might be used in a way inconsistent with Australia’s
human rights obligations, a permit would be refused.
Prepared By:
Cleared By:
Name: Emily Hall
Name: Susan Bodell
Position: Assistant Secretary Defence Export
Position: Acting Deputy Secretary
Controls
Group/Service: Strategy, Policy, and Return to Index
Division: Defence Industry Policy
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001091
Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
Ukraine
Handling Note:
Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead.
Handling Note: Major General Jeremy King, Head Joint Aviation Systems Division to
lead on any questions regarding gifting of MRH-90 Taipan helicopters to Ukraine.
Key Messages
Providing military assistance to Ukraine is a tangible demonstration of the importance
Australia attaches to defending the rules-based international order.
Our military assistance to Ukraine complements strong Government action to impose
costs on Russia, including via sanctions and diplomatic actions.
Australia’s military assistance to Ukraine now totals approximately $730 million, with
overall assistance valued at more than $910 million. Our assistance reflects the
Government’s commitment to empower Ukraine to resolve this conflict on its own
terms.
The latest announcement of a defence industry package was made on
25 October 2023, valued at $20 million.
The Government has extended and expanded Australia’s commitment to train
Ukrainian recruits in the United Kingdom under Operation KUDU throughout 2024.
Talking Points
If pressed: Why is Australia not gifting MRH-90 Taipans to Ukraine?
Australia does not support gifting of the MRH-90 Taipan to Ukraine due to the
complexity of the platform and longstanding, well-documented availability issues.
The MRH-90 Taipan was managed as a project of concern since 2011 and was unable to
meet Defence’s capability, availability and affordability requirements.
If pressed: How much would it cost to return the helicopters to flying condition?
Disassembly of Australia’s MRH-90 Taipans commenced in October 2023.
Since this time, the helicopters have been subject to extensive disassembly and no
aircraft are in flying condition.
The costs, time and technical resources needed to return these aircraft to a fully
operational state would be significant.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001091
Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
If pressed: How is the Operation KUDU deployment changing in 2024?
The training mission has been expanded to include a Junior Leadership Program at the
request of Ukraine and the United Kingdom.
This will bring the number of ADF personnel deployed on Operation KUDU to
approximately 90, an increase of 20 from 2023.
If pressed: Why is the Government not doing more to support Ukraine to break the stalemate?
Australia is contributing significant amounts of military assistance. Based on the best
publicly available data from the Kiel Institute, Australia is the second largest
non-North Atlantic Treaty Organization contributor of military assistance to Ukraine,
behind Sweden.
Assistance to Ukraine is balanced against other priorities.
If pressed: How is the E-7A deployment supporting Ukraine?
Operating from Ramstein Air Base, the aircraft is integrated with partners to provide
early warning of threats against a multinational gateway that is a vital supply line for
humanitarian and military assistance.
If pressed: Has the Government provided Ukraine with assistance in its de-mining efforts?
De-mining equipment was included in the $20 million defence industry package
announced on 25 October 2023.
Defence provided de-mining assistance to Ukraine as part of assistance announced
during the Prime Minister’s visit to Kyiv in July 2022. This included an ADF de-mining
equipment package valued at $12 million.
The Government has also provided funding to the United Nations Office for the
Coordination of Humanitarian Affairs, which, among other things, funds de-mining
operations in Ukraine. Questions on this should be should be directed to the
Department of Foreign Affairs and Trade.
If pressed: How was the latest defence industry package agreed?
The package was developed to meet Ukraine’s requests, and leveraged expertise and
innovation from Australian defence industry companies.
The package includes counter drone systems from DroneShield, deployable three
dimensional metal printers from Spee3d [pronounced spee-three-d], de-mining
equipment from Minelab and portable X-ray machines from Micro-X.
The defence industry package was transported via surface and air transport and was
incorporated into the standing delivery schedule to Ukraine.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001091
Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
If pressed: Has Australia put any restrictions on how the equipment will be used?
All military equipment provided to Ukraine is subject to Australia’s export control
legislation, including international obligations and international humanitarian law.
Military assistance is subject to formal arrangements with the Ukraine Government. It
is not appropriate to discuss details of government-to-government discussions.
The export of all controlled military and dual use goods or technology from Australia
requires an export permit. Each export application is assessed on its merits to
determine whether the export would be prejudicial to Australia’s national interest. The
legislated criteria require consideration of issues relating to foreign policy, national
security, regional security, human rights and Australia’s international obligations.
If pressed: How does Ukraine feel about Australia’s support?
Ukraine and our partners regularly commend Australia for the significant support we
have committed, despite our geographic distance.
Defence engages regularly with the Ukrainian Embassy. This shapes the options that
Defence develops for decision by Government.
If pressed: Will Australia provide Hawkeis to the Government of Ukraine?
The Hawkei is a developmental vehicle that is only now being introduced into service
across the ADF.
An unresolved braking issue and a limited supply of parts means the Hawkei currently
cannot be gifted to Ukraine, as it would not provide the capability required.
If pressed: Will Australia provide F/A-18 Classic Hornets to Ukraine? Will we re-consider
providing them to Ukraine given the proposed sale fell through?
The international community is focussing on providing Ukraine only one fighter aircraft
platform, namely the F-16. The Royal Australian Air Force Fleet of F/A-18 Hornet
aircraft, associated spares and support equipment were progressively withdrawn from
service between January 2019 and December 2021.
Given the advanced stage of the disposal process and with significant operational parts
already removed, the costs, timeframes and technical resources to return the aircraft
to a fully operational state would pose a significant resource and operational impost to
current air combat capability.
If pressed: Has Australia delivered on all of its commitments to support Ukraine?
Defence will not comment on the delivery of support to Ukraine for operational
security reasons.
As you would appreciate, delivering items from the other side of the world is an
immense logistical effort.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001091
Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
If pressed: Does the provision of weapons to Ukraine comply with Australia’s international
legal obligations?
All exports of gifted military equipment have been subject to Australia’s export control
legislation, including consideration of our international obligations, particularly the
Arms Trade Treaty.
Further questions in relation to the Arms Trade Treaty should be directed to the
Department of Foreign Affairs and Trade.
If pressed: Are there ADF personnel in Ukraine or the near region?
There are no ADF personnel deployed to Ukraine. ADF personnel are working with the
North Atlantic Treaty Organization and other partner nations in Europe.
If pressed: Have any Australians in Ukraine been killed or injured?
The Government is aware of a small number of reported Australian casualties in
Ukraine. Due to privacy obligations, we are unable to provide further details. Further
questions should be directed to the Department of Foreign Affairs and Trade.
Background
Operation KUDU
A rotational force of approximately 90 ADF personnel is training Ukrainian
‘citizen soldier’ recruits in the United Kingdom throughout 2024 as part of a
multi-national effort.
Over 1,450 Ukrainian recruits have graduated from ADF-delivered training and more
than 30,000 Ukrainians soldiers have trained since last June as part of the wider
training program delivered under the United Kingdom-led Operation INTERFLEX.
E7-A deployment
Up to 100 ADF crew and support personnel have deployed with the aircraft.
ADF personnel or assets will not enter Ukraine throughout the deployment and the
aircraft will not be involved in the current conflict in Ukraine.
Military Assistance
Australia’s military assistance to Ukraine has four key lines of effort and is valued at
over $730 million s33(a)(iii)
The four key lines of effort are:
gifting equipment from ADF stocks;
gifting equipment purchased from Australian defence industry;
channelling funds to partners; and
operational support, including training.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
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Ukraine
Key witness: Hugh Jeffrey
Provision of tanks to Ukraine
Ukraine’s Minister for Defence has requested that Australia consider sending tanks. As
of 6 December 2023 several of Australia’s partners (including Germany, the United
States, Poland, the United Kingdom, Canada, Finland, Spain, Portugal, the Netherlands
and Denmark) had committed to delivering tanks to Ukraine.
Requests for Hawkei vehicles
In September 2022 Ukraine began petitioning for ‘Hawkei’ Light Mobility Vehicles after
Ukraine’s Ambassador to Australia visited the Thales factory in Bendigo.
In April 2023 the Ukraine Ministry of Defence released a social media video promoting
and requesting Hawkeis.
Australia is currently unable to gift Hawkeis to Ukraine, as the capability support system
is not mature and it would significantly degrade availability in Australia.
Requests for F/A-18 Aircraft
Defence entered a contract with RAVN Group (formerly AirUSA) for the sale of up to 46
Royal Australian Air Force F/A-18A/B Hornets in February 2020.
The United States’ Department of State formally denied the Third Party Retransfer
application for the commercial sale on 8 June 2023.
Due to the above decision, the commercial agreement to sell the remaining aircraft to
RAVN Group was terminated.
Australia-France joint proposal for support to Ukraine
The Deputy Prime Minister announced the Australia–France joint proposal to deliver
155mm artillery ammunition at the 2+2 dialogue in Paris on 30 January 2023.
The initiative is an equal cost-sharing arrangement between France and Australia:
France will deliver 155mm artillery ammunition to Ukraine to meet its urgent needs.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 2 November 2023
QoN No 93, 94, 97 and 97: Senator the Hon Linda Reynolds CSC (Liberal Party of
Australia, Western Australia) asked questions covering Hawkeis, the E7-A deployment,
the defence industry package, the Deputy Prime Minister’s visits to Ukraine, Ukrainian
Government requested support from Australia, and assistance in de-mining efforts in
the context of letters written by Senator Reynolds and the Ukrainian Ambassador on
17 May 2023 and 22 May 2023.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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PDR No: SB23-001091
Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
Freedom of Information (FOI) Requests
On 26 April 2023 an individual made a request seeking access to agreements between
the Australian and Ukrainian Governments to see if there was ‘proof that an agreement
exists…that guarantees the considerations of international humanitarian law.’ TThis
request was refused under section 33 of the FOI Act. O
On 1 September 2023, the
individual appealed to the Office of the Australian Information Commissioner,
contesting the decision. As of 1 February 2024, this process remains ongoing.
In November 2023 an individual sought access under FOI to Defence’s finalised
estimates briefing pack for the Senate Budget Estimates hearings of the Foreign Affairs,
Defence and Trade Committee, 23 – 27 October 2023, including the Ukraine brief.
Defence released the document with no redactions.
Recent Ministerial Comments
The Deputy Prime Minister announced the extension and expansion of Australian
training for Ukrainian recruits in the United Kingdom under Operation KUDU on
14 December 2023.
The Prime Minister, Deputy Prime Minister and Minister for Defence Industry issued a
joint media release outlining details of the $20 million defence industry package, and
confirming that the E 7A Wedgetail aircraft has deployed to Germany, on
25 October 2023.
Relevant Media Coverage
On 30 January 2024 in the Australian Financial Review, Aaron Patrick opined Australia
failed to pre-empt Ukraine’s requests for military equipment, including MRH-90 Taipan
helicopters and F/A-18 Hawkeis.
On 29 January 2024 The Australian reported on the dismantling of the MRH90 Taipan
fleet, including pictures showing the dismantling process.
On 18 January 2024 the ABC reported that the Government had formally rejected a
request from Ukraine for Australia’s MRH-90 Taipan helicopters.
On 14 December 2023 ABC News published an article by Andrew Greene, covering the
expansion of Australia’s Ukraine military training mission under Operation KUDU.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
Division:
Strategy, Policy and Industry Group
PDR No:
SB23-001091
Prepared by:
Cleared by Division Head:
s47E(d)
Bernard Phillip
Assistant Director Europe Section
First Assistant Secretary
Global Partners Branch
International Policy Division
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 7 December 2023
Date: 12 December 2023
Consultation:
Major General Jeremy King
Date: 1 February 2024
Head Joint Aviation Systems Division
Emily Hall
Date: 7 December 2023
Assistant Secretary Defence Export Controls
Date: 6 December 2023
Air Commodore Keane
Director General – Military Legal Service
Commodore Don Dezentje
Date: 8 December 2023
Director General – Military Strategy
Commitments
Date: 5 December 2023
s47E(d)
Acting Assistant Secretary Finance – Specialist
Groups
Colonel Patrick Murray
Date: 1 December 2023
Chief of Staff to Deputy Secretary, Capability,
Acquisition and Sustainment Group
s47E(d)
Date: 5 December 2023
Director Financial Policy
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy and Industry Group
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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Ukraine
Key witness: Hugh Jeffrey
Questions on notice referred to within the brief:
Supplementary Budget Estimates 2 November 2023
Senator the Hon Linda Reynolds CSC
Portfolio Question Number: 97
Date question was tabled: Not yet tabled
Question
1. The Ukrainian Government is fully aware of the braking issues of the Hawkei vehicles, yet
they are still requesting their provision to Ukraine. Why is the Government refusing to
provide Ukraine with the Hawkei vehicles?
2. Are there any ongoing discussions or negotiations between the Australian Government and
the Ukrainian Government regarding the provision of Hawkei vehicles?
a. If yes, what is being discussed?
b. If no, why not?
3. Has there been any collaboration between the Australian Government and Thales to
address the braking issues of the Hawkei vehicles?
a. If yes, what progress has been made in this regard?
b. If no, why not?
4. How will the Royal Australian Air Force E-7A Wedgetail aircraft be used to assist Ukraine?
5. How will the 100 Australian Defence Force personnel, who will be deployed with the Royal
Australian Air Force E-7A Wedgetail aircraft, be engaged?
6. How will DroneSheild be engaged by the Government to assist military efforts in Ukraine?
7. How will Micro-X be engaged by the Government to assist military efforts in Ukraine?
8. How will Minelab be engaged by the Government to assist military efforts in Ukraine?
9. How will SPEE3D be engaged by the Government to assist military efforts in Ukraine?
10. Why has the Defence Minister not travelled to Ukraine to meet with his Ukrainian
counterparts?
11. Is the Defence Minister planning to visit Ukraine in the next 6 months?
a. If yes, when will this occur?
b. If no, why not?
Answer
Not yet tabled.
Supplementary Budget Estimates 2 November 2023
Senator the Hon Linda Reynolds CSC
Portfolio Question Number: 96
Date question was tabled: Not yet tabled
Question
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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PDR No: SB23-001091
Last updated: 2 February 2024
Ukraine
Key witness: Hugh Jeffrey
1. How many times has the Ukrainian Government requested additional supports for
Ukraine?
2. What supports have the Ukrainian Government requested of the Australian Government?
3. Provide the details of all of the assistance and support that the Australian Government has
provided to Ukraine. For each individual support include:
a. Specific support/item details?
b. Date of commitment?
c. Date of delivery to Ukraine?
d. Cost of specific support/item?
Answer
Not yet tabled
Supplementary Budget Estimates 2 November 2023
Senator the Hon Linda Reynolds CSC
Portfolio Question Number: 94
Date question was tabled: Not yet tabled
Question
Has the Government provided Ukraine with assistance in its demining efforts?
a. If yes, please provide the details of the assistance provided.
b. If no, why not?
c. How much money has been provided to Ukraine to assist Ukraine in its demining efforts?
Answer
Not yet tabled.
Supplementary Budget Estimates 2 November 2023
Senator the Hon Linda Reynolds CSC
Portfolio Question Number: 93
Date question was tabled: Not yet tabled
Question
1. The Ukrainian Ambassador and I wrote letters to the Minister on 17 May 2023 and 22 May
2023 outlining a detailed demining and humanitarian and combat plan for Ukraine. Noting
that the Department has implemented one of the report recommendations in relation to the
Minelab. Has the Department considered implementing the full report recommendations
establishing a dedicated expert working group to coordinate Australian assistance to
Ukraine’s demining efforts.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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Ukraine
Key witness: Hugh Jeffrey
a. If yes, please provide the details of the working group?
b. If no, why not?
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Return to Index
Phone:
s47E(d)
/
s22
Industry
Phone:
s47E(d)
/
s22
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s33(a)(iii)
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Assistant Director Europe Section
Position: Deputy Secretary
Division: International Policy
Group/Service: Strategy, Policy, and Industry
Phone:
s47E(d)
&
s22
Phone:
s47E(d)
&
s22
s33(a)(iii)
OFFICIAL
Return to Index
Defence FOI 680/23/24
OFFICIAL
Additional Budget Estimates 2024
PDR No: SB23-001331
Last updated: 31 January 2024
International Armed Conflict Decision Making Inquiry
Key witness: Mr Matt Yannopoulos PSM
International Armed Conflict Decision Making Inquiry
Handling Note: Associate Secretary, Matt Yannopoulos to lead.
Key Messages
Under Australia’s constitutional arrangements, the decision to commit the ADF to
international armed conflict rests with the Executive.
These arrangements remain appropriate and enable the elected Government to
rapidly act on evolving matters of national importance in the interests of the safety
and security of Australia.
The Joint Standing Committee on Foreign Affairs, Defence and Trade recognised the
appropriateness in its report on the
‘Inquiry into international armed conflict decision
making’.
The Government’s response to the Committee’s final report on the
‘Inquiry into
international armed conflict decision making’ was tabled in the House of
Representatives on 8 August 2023 and the Senate on 9 August 2023.
Further announcements will be made by the Government at the appropriate time.
Talking Points
The decision to go to war
Defending Australia, its people, and its interests is the Government’s highest priority
and most important responsibility.
Defence is fully committed to the fulfilment of this responsibility.
The Joint Standing Committee on Foreign Affairs, Defence and Trade inquiry reaffirmed
it is appropriate that decisions about the deployment of the ADF into international
armed conflict remain with the Executive.
In practice, this power is exercised collectively by the National Security
Committee of Cabinet.
The Government must have the ability to respond swiftly to threats to national security,
based on the available information.
Existing arrangements enable the Government to act decisively, and flexibly, to
contingencies when they arise.
If Parliamentary approval were required for every deployment, it could
undermine the ability to pre-position the ADF overseas to appropriately and
quickly respond to contingencies and avoid unnecessary escalations.
Prepared By:
Cleared By:
Name: Melissa King
Name: Rowena Bain
Position: Assistant Secretary, Ministerial, Parliamentary and
Position: First Assistant Secretary
Cabinet
Group/Service: Governance
Return to Index
Division: Ministerial and Executive Coordination and
Phone:
s47E(d)
/
s22
Communication
Phone:
s47E(d)
/
s22
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International Armed Conflict Decision Making Inquiry
Key witness: Mr Matt Yannopoulos PSM
There must be an appropriate balance between enabling the Government to respond
to challenges to our national interests and security, and ensuring the Parliament has
effective oversight of those decisions.
It is also essential Australia’s allies and partners feel assured that our commitments of
support can be relied on in a timely and effective manner.
The Government’s response to Joint Standing Committee on Foreign Affairs, Defence and
Trade final report on the ‘Inquiry into international armed conflict decision making’.
The Government’s response to the Joint Standing Committee’s on Foreign Affairs,
Defence and Trade final report on the
‘Inquiry into international armed conflict decision
making’ agreed, agreed-in-principle or broadly agreed with seven recommendations
made by the Committee.
The recommendations the Government has agreed to will enhance parliamentary
oversight and accountability.
If pressed: Will the Government support Parliament to establish a new committee to provide
oversight of Defence?
Yes. The Government has agreed to the report’s recommendation to establish a new
Joint Statutory Committee on Defence.
If pressed: In-principle or broad agreement to the recommendations outlining the executive
power in relation to armed conflict and debate in Parliament.
The decision to deploy the ADF into armed conflict is among the most significant
decisions that can be made by the Executive.
The Executive Power flows from section 61 of the Constitution, and is in practice
exercised collectively by the National Security Committee of Cabinet.
The Government’s response has agreed a Ministerial Statement in both Houses of
Parliament will be made to inform a timely debate if Australia is to engage in major
military operations as a party to an armed conflict.
Parliament also has opportunities to scrutinise Government decision-making relating to
deployment of the ADF, including through urgency motions, Senate Estimates and
Question Time.
If pressed: Legal authority for deployment of the ADF into international armed conflict.
The Executive decision making power flows from Section 61 of the Constitution and is
in practice exercised collectively by the National Security Committee of Cabinet.
Details regarding legal advice on constitutional law issues should be directed to the
Attorney-General’s Department.
Prepared By:
Cleared By:
Name: Melissa King
Name: Rowena Bain
Position: Assistant Secretary, Ministerial, Parliamentary and
Position: First Assistant Secretary
Cabinet
Group/Service: Governance
Return to Index
Division: Ministerial and Executive Coordination and
Phone:
s47E(d)
/
s22
Communication
Phone:
s47E(d)
/
s22
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Last updated: 31 January 2024
International Armed Conflict Decision Making Inquiry
Key witness: Mr Matt Yannopoulos PSM
If pressed: Disclosure of legal advice.
The Government will determine the appropriateness of disclosures with respect to
questions of international law and advice on questions of legality.
It is a long-standing policy that the Government does not disclose legal advice,
reflecting the importance of the Government receiving frank and fearless advice.
If pressed further: Disclosure of legal advice.
The Government has agreed to table written statements in the Parliament setting out
the objectives of major military operations, the orders made and their legal basis.
If pressed: Will the Governor-General be consulted?
Deploying the ADF into major armed conflicts is a decision for the elected Government
and not the Governor-General.
Supporting Information
Questions on Notice
Budget Supplementary Estimates: 25 October 2023
QoN 120, Statutory Parliamentary Joint Committee on Defence, Senator the Hon David
Fawcett (Liberal, South Australia), asked a question about the Statutory Parliamentary
Joint Committee on Defence.
Budget Estimates: 30 and 31 May 2023
QoN 77, ADF in military operations overseas, Senator Lidia Thorpe (Independent,
Victoria) asked a question about the ADF in military operations overseas.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. The decision to
release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. Documents were released on 7 August 2023.
Prepared By:
Cleared By:
Name: Melissa King
Name: Rowena Bain
Position: Assistant Secretary, Ministerial, Parliamentary and
Position: First Assistant Secretary
Cabinet
Group/Service: Governance
Return to Index
Division: Ministerial and Executive Coordination and
Phone:
s47E(d)
/
s22
Communication
Phone:
s47E(d)
/
s22
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Last updated: 31 January 2024
International Armed Conflict Decision Making Inquiry
Key witness: Mr Matt Yannopoulos PSM
Recent Ministerial Comments
On 9 August 2023 the Government’s response was tabled in the Senate by the
Assistant Minister for Climate Change and Energy.
On 8 August 2023 the Deputy Prime Minister published a media release on the
‘Government’s response to the inquiry into international armed conflict decision
making’.
On 8 August 2023 the Government’s response was tabled in the House of
Representatives by the Minister for Employment and Workplace Relations.
Relevant Media Reporting
On 14 August 2023 the RiotAct published an article by Andrew McLaughlin titled
Government agrees to advice of Parliamentary inquiry into how Australia decides to go
to war. It outlines the key recommendations and that the Government has agreed in-
principle to all of them.
On 9 August 2023, The Australian Financial Review published an article by Andrew
Tillett titled Parliament to debate future troop deployments, which notes that a future
commitment of Australian troops will trigger a parliamentary debate under changes
adopted in response to the war powers inquiry.
On 8 August 2023 in a broadcast segment titled Federal Government tweaks war
powers, the ABC interviewed Dr Alison Broinowski from Australians for War Powers
Reform and Alex Bristow from the Australian Strategic Policy Institute.
On 8 August 2023 The West Australian published an article by Andrew Brown’s titled
Cabinet retains the power to send soldiers to war. It refers to the media release on the
Government’s response to the inquiry and includes comments made by the Greens.
On 8 August 2023 Reuters published an article by Kirsty Needham titled Australia says
Cabinet the decision maker on war, not parliament. It refers to the media release on
the Government’s response to the inquiry.
On 8 August 2023 the NT News published an article by Clare Armstrong titled
Parliament will debate Australia’s entry into future wars and a new committee will
oversee the nation’s involvement in conflicts. It refers to the media release on the
Government’s response to the inquiry and highlights countries where parliamentary or
congressional approval is required to go to war.
On 8 August 2023 The Canberra Times published an article by Karen Barlow titled War
powers: Defence to be overseen by a new parliamentary committee. It highlights the
creation of a new Parliamentary Joint Committee (which it says will be similar to the
Parliamentary Joint Committee on Intelligence and Security) and that parliamentary
approval to go to war is not required. It mentions that legislation to establish the
committee will be introduced later this year.
Prepared By:
Cleared By:
Name: Melissa King
Name: Rowena Bain
Position: Assistant Secretary, Ministerial, Parliamentary and
Position: First Assistant Secretary
Cabinet
Group/Service: Governance
Return to Index
Division: Ministerial and Executive Coordination and
Phone:
s47E(d)
/
s22
Communication
Phone:
s47E(d)
/
s22
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PDR No: SB23-001331
Last updated: 31 January 2024
International Armed Conflict Decision Making Inquiry
Key witness: Mr Matt Yannopoulos PSM
Division:
Ministerial and Executive Coordination and Communication
PDR No:
SB23-001092
Prepared by:
Cleared by Division Head:
Melissa King
Rowena Bain
Assistant Secretary
First Assistant Secretary
Ministerial, Parliamentary and Cabinet
Ministerial and Executive Coordination and
Communication
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 30 January 2024
Date: 30 January 2024
Cleared by:
Matt Yannopoulos
Associate Secretary
Associate Secretary Group
Questions on notice referred to within the brief:
2023-24 Budget Supplementary Estimates
Senator the Hon David Fawcett
Question Number: 120
Date question was tabled: not yet tabled
Question:
1. Can the Department provide an update on briefs or activities the Department has
undertaken as part of enabling the establishment of the statutory Parliamentary Joint
Committee on Defence?
2. What role has the Department had in respect to new or amended legislation to be
introduced into Parliament?
3. What internal changes is the Department making as the scope of the proposed committee
and its appropriate powers and functions are clarified?
4. Is the intention to establish the proposed committee in this term of Government?
5. Has the Department been provided a timeline for when the Government wants the
proposed committee to be established and functional?
6. Has the Department been asked to assess considerations relevant to the appointment of
crossbench members to the proposed committee?
7. Has the Department provided advice to Government related to ensuring there is a
consolidation of responsibility between the proposed committee and existing committees of
the Parliament?
Prepared By:
Cleared By:
Name: Melissa King
Name: Rowena Bain
Position: Assistant Secretary, Ministerial, Parliamentary and
Position: First Assistant Secretary
Cabinet
Group/Service: Governance
Return to Index
Division: Ministerial and Executive Coordination and
Phone:
s47E(d)
/
s22
Communication
Phone:
s47E(d)
/
s22
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PDR No: SB23-001331
Last updated: 31 January 2024
International Armed Conflict Decision Making Inquiry
Key witness: Mr Matt Yannopoulos PSM
Answer:
Defence and other relevant departments are conducting further work to determine the
precise scope, powers, functions and any legislative requirements for the establishment of
the new Joint Statutory Committee on Defence. Interim options have been provided to
Government for consideration.
2023-24 Budget Estimates
Senator Lidia Thorpe
Question Number: 77
Date question was tabled: 14 July 2023
Question
1. In deciding to go to Afghanistan and Iraq, cabinet relied on the minister's power to direct
the Australian Defence Force under the Defence Act 1903. Is it correct that currently the
prime minister can use his executive power under the Defence Act to send the ADF into
military operations overseas?
2. But it doesn't have to be like this, even the High Court found that Parliament could
impose conditions on the exercise of this Executive Power which would allow democratic
input and debate on whether it is in the best interests of the country and its people to
authorise military deployment. Why is it that successive Australian Governments have
excluded parliament from this debate, and does the current government have plans to
change this?
3. Would you agree that the engagements in Afghanistan, Libya, Syria, Yemen, Iraq, drone
warfare in the Middle East and North Africa supported through the Joint Defence Facility
at PineGape etc... contributed to increasing the 'threat of terrorism'.?
4. So going forward with the huge investment with AUKUS aligning our interest with the US
globally and introducing nuclear powered war machinery, will Australia's military
expeditions and their priorities in foreign and defence policy raise or lower the threat to
domestic security and what measurable outcomes will you use to determine this?
Answer
1. Refer to QoN #6.
2. On 31 March 2023 the Joint Standing Committee on Foreign Affairs, Defence and Trade
(JSCFADT) tabled its report on its inquiry into international armed conflict decision
making. The Government is considering its response to the report.
3. No.
4. There is no more important and consequential task for Government than protecting the
security, interests and livelihoods of its people. These interests require strong defence
capabilities of our own and working with partners investing in their own capabilities.
Australia’s investment in new defence capability, including through AUKUS, is a prudent
and necessary response to the largest military build-up in the Indo-Pacific we have seen
since WWII.
Prepared By:
Cleared By:
Name: Melissa King
Name: Rowena Bain
Position: Assistant Secretary, Ministerial, Parliamentary and
Position: First Assistant Secretary
Cabinet
Group/Service: Governance
Return to Index
Division: Ministerial and Executive Coordination and
Phone:
s47E(d)
/
s22
Communication
Phone:
s47E(d)
/
s22
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PDR No: SB23-001093
Last updated: 19 December 2023
Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Pacific Engagement
Handling Note:
Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead on Pacific
Engagement.
First Assistant Secretary Pacific Division, Susan Bodell, to support on Contractor
Engagement.
Key Messages
As outlined in the Defence Strategic Review Defence is deepening its partnerships in
the Pacific by prioritising investment across the Defence Cooperation Program, the
Indo-Pacific Infrastructure Program and the Pacific Maritime Security Program.
Defence is enhancing the capability of our partners, deepening connections with the
militaries of the Pacific, and bolstering our ability to work together.
As of 1 December 2023 the Pacific Division has consolidated three ‘above the line’
contracts with KPMG into one, reducing the Division’s above the line contractor
footprint by five full-time equivalent.
Talking Points
Pacific initiatives in the 2023-24 Budget
The Government’s response to the Defence Strategic Review called for a deepening of
Australia’s diplomatic and defence partnerships in the Indo-Pacific.
Defence is delivering on this direction in the Pacific by:
Building partner capability through the long-standing, responsive and highly
regarded Defence Cooperation Program, which marks its 50th anniversary this
year ($248.261 million in 2023-24, up from $185.854 in 2022-23);
Investing more in the Pacific Maritime Security Program by offering additional
support for through-life maintenance and sustainment of the Australian-gifted
Guardian-class Patrol Boats and expanding maritime training ($5.9 billion over the
life of the program);
Delivering and maintaining security-related infrastructure for our partners across
the region through the Indo-Pacific Infrastructure Program;
Strengthening connections between Defence-focused regional architecture and
the Pacific Islands Forum, ensuring outcomes from the South Pacific Defence
Ministers’ Meeting and the Joint Heads of Pacific Security meeting are briefed to
the Pacific Islands Forum; and
Advancing initiatives that enable effective Pacific-led responses to Pacific security
challenges, such as the recently announced Pacific Response Group.
Prepared By:
Cleared By:
Name: Lisa Clutterham
Name: Susan Bodell
Position: Assistant Secretary Pacific Regional
Position: Acting Deputy Secretary
Return to Index
Division: Pacific
Group/Service: Strategy, Policy, and Industry
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PDR No: SB23-001093
Last updated: 19 December 2023
Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Defence has also established a dedicated Pacific Division to provide policy direction and
program delivery that deepens engagement and collaboration with partners across the
Pacific.
Contractor Engagement
From 1 December 2023 the Pacific Division commenced one ‘above the line’ 12-month
contract with KPMG as Strategic Industry Partner providing a range of services including
program management, procurement and finance. The contract has a total value of
$7.8 million.
The Pacific Division was previously supported by KPMG as Strategic Industry Partner
across three separate Branch contracts, which expired on 30 November 2023. These
contracts supported the Indo-Pacific Infrastructure Branch, Pacific Maritime Branch,
and Pacific Timor-Leste Branch, with a combined value of $30 million from
2019 to 2023.
Historically, KPMG has supported the Pacific Maritime Security Program (2019-21) and
Pacific and Timor-Leste Branch (2019-22) through two separate, but now expired,
contracts which had a combined total value of $10.7 million.
The Pacific Division also currently maintains around 189 purchase orders for ‘below the
line’ contracts with various service providers.
These contracts provide a range of services, including but not limited to legal
services, probity advice, construction, capability system delivery, maintenance
services, design services and project management.
Pacific Response Group through South Pacific Defence Ministers’ Meeting
At the 10th anniversary of the South Pacific Defence Ministers’ Meeting in
New Caledonia from 4 to 6 December 2023, Ministers from Australia, Fiji, France,
New Zealand, Papua New Guinea, Tonga and Chile agreed to progress planning towards
the establishment of a Pacific Response Group.
The initiative will refine the way the defence forces of the Pacific come together to
deliver rapid and effective humanitarian assistance and disaster relief to other Pacific
island countries, or each other – upon request – at times of need.
The concept is an investment in a ‘community of action’ within a crisis prone region
and builds on what already exists.
The Chief of the Defence Force will work with his Pacific counterparts to develop a
detailed concept of operations in advance of the South Pacific Defence Ministers’
Meeting in 2024.
Prepared By:
Cleared By:
Name: Lisa Clutterham
Name: Susan Bodell
Position: Assistant Secretary Pacific Regional
Position: Acting Deputy Secretary
Return to Index
Division: Pacific
Group/Service: Strategy, Policy, and Industry
Phone:
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PDR No: SB23-001093
Last updated: 19 December 2023
Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Indo-Pacific Infrastructure
The Indo-Pacific Infrastructure Program delivers security related infrastructure in
cooperation with partner nations. It contributes to a region that is economically stable,
strategically secure, capable and politically sovereign.
As at 30 November 2023 Pacific infrastructure projects contributed an estimated
$53 million to Australian companies in 2023-24 through the procurement of goods and
services, and an estimated $64 million to Indo-Pacific small and medium enterprises.
Since 1 July 2018 Defence’s infrastructure projects in the Indo-Pacific have contributed
an estimated $499 million to Australian companies through the procurement of goods
and services, and an estimated $196 million to Indo-Pacific small and medium
enterprises.
Infrastructure projects have supported over 5,000 local jobs across the Pacific
(measured by number of inductions).
Solomon Islands – Western Border Outpost and Eastern Border Outpost
Defence is partnering with the Solomon Islands to construct border outposts in the
Solomon Islands’ Western and Eastern Provinces.
Preparatory works commenced at the Western Border Outpost in April 2023 with
main construction works expected to commence once environmental approvals
are received from the Solomon Islands Government.
Construction of the Eastern Border Outpost is expected to commence once the
Solomon Islands Government approves the scope, with completion anticipated
18-months after land acquisition.
The new facilities and infrastructure will support Solomon Islands’ Guardian-class Patrol
Boats, bringing together police, customs and immigration officials to reinforce the
security of Solomon Islands’ borders and bolster its natural disaster response capability.
Solomon Islands - Police Force Explosive Ordnance Disposal Facility (Hells Point)
The Solomon Islands has one of the largest concentrations of unexploded ordnance and
explosive remnants of war in the Pacific.
Defence is partnering with the Solomon Islands to develop the Explosive Ordnance
Disposal Facility in Honiara, the home and training ground for explosive ordnance
disposal experts from the Royal Solomon Islands’ Police Force.
Construction is currently on hold pending the outcome of a landownership case
in the Solomon Islands High Court.
Preparatory works commenced in March 2023.
A blast protected High Mobility Engineering Excavator was formally gifted to the Royal
Solomon Islands Police Force in June 2023 for use at the site.
Prepared By:
Cleared By:
Name: Lisa Clutterham
Name: Susan Bodell
Position: Assistant Secretary Pacific Regional
Position: Acting Deputy Secretary
Return to Index
Division: Pacific
Group/Service: Strategy, Policy, and Industry
Phone:
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PDR No: SB23-001093
Last updated: 19 December 2023
Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Vanuatu - Cook Barracks (Port Vila) and Tiroas Barracks (Luganville) Infrastructure
The Cook Barracks and Tiroas Barracks project aims to provide the Vanuatu Mobile
Force with infrastructure and facility upgrades, enabling force generation, training and
future operations.
Project completion and a ceremonial handover is scheduled for April 2024.
Government Commitments
Fiji – Sale of 14 Protected Mobility Vehicles (Bushmasters)
On 18 October 2023 the Prime Minister and the Prime Minister of Fiji, announced
Australia would sell an additional 14 Protected Mobility Vehicles to Fiji, at a reduced
price.
This follows the sale of 10 Protected Mobility Vehicles in 2017.
The Protected Mobility Vehicles will enable Fiji, through the Republic of Fiji Military
Forces, to continue to contribute to peacekeeping missions around the world.
Australia-Pacific Defence School
The ADF has partnered with forces in Fiji and Timor-Leste to deliver United Nations
Peace Operations training to around 50 Pacific military personnel under the banner of
the Australia-Pacific Defence School.
Defence continues to consult Pacific island countries on how the Australia-Pacific
Defence School can best support their training needs.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
On 20 October 2023 the Minister for Defence Industry issued a media release including
the agreement to sell an additional 14 Protected Mobility Vehicles to Fiji.
Prepared By:
Cleared By:
Name: Lisa Clutterham
Name: Susan Bodell
Position: Assistant Secretary Pacific Regional
Position: Acting Deputy Secretary
Return to Index
Division: Pacific
Group/Service: Strategy, Policy, and Industry
Phone:
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Phone:
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Additional Budget Estimates February 2024
PDR No: SB23-001093
Last updated: 19 December 2023
Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Relevant Media Reporting
On 6 December 2023 multiple Australian news sources reported on the Pacific
Response Group, which Australia had proposed through the South Pacific Defence
Ministers’ Meeting.
On 18 October 2023 The Mandarin published an article by Dominic Giannini and
Kat Wong regarding the sale of the Protected Mobility Vehicles to Fiji as driving an
upgrade to Australia-Fiji ties.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001093
Prepared by:
Cleared by Division Head:
Lisa Clutterham
Susan Bodell
Assistant Secretary
First Assistant Secretary
Pacific Regional and Governance Branch
Pacific Division
Mob:
s22
Ph:
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Mob:
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Ph:
s47E(d)
Date: 7 December 2023
Date: 12 December 2023
Cleared by DFG:
s47E(d)
Date: 19 December 2023
Acting Assistant Secretary Finance Specialist Groups
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Prepared By:
Cleared By:
Name: Lisa Clutterham
Name: Susan Bodell
Position: Assistant Secretary Pacific Regional
Position: Acting Deputy Secretary
Return to Index
Division: Pacific
Group/Service: Strategy, Policy, and Industry
Phone:
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Supplementary Budget Estimates February 2024
PDR No: SB23-001094
Last updated: 07 February 2024
Israel-Hamas Conflict
Key witness: Hugh Jeffrey; Air Vice-Marshal Stephen Chappell; David Nockels
Hamas-Israel Conflict
Handling Note:
Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead on Israel-Hamas
conflict.
Head of Military Strategic Commitments, Air Vice-Marshal Stephen Chappell, to lead on
current ADF operations.
First Assistant Secretary Defence Industry Policy, David Nockels, to lead on Defence
export control processes.
Key Messages
Australia continues to maintain a modest defence relationship with Israel.
Through our contribution to peacekeeping operations, Australia has been a longstanding
contributor to the security and stability of the Middle East.
All ADF personnel in and around Israel are accounted for and safe.
Talking Points
Australia’s Defence relationship with Israel
Australia’s defence cooperation with Israel includes:
an annual Australia-Israel Strategic Dialogue; and
a resident Defence Attaché to Tel Aviv.
In 2017 Australia and Israel signed a Memorandum of Understanding on industry
cooperation. The Memorandum of Understanding is due to expire on
28 September 2024.
Australia and Israel convene Joint Working Group meetings under the
Memorandum of Understanding. The last meeting was held virtually in
February 2023.
If pressed: Will Australia extend the Memorandum of Understanding?
Defence will review the Memorandum of Understanding ahead of its expiry, as is
standard practice.
If pressed: Is Australia providing military support to Israel? Has Israel asked Australia for
military support?
Handling note: refer any specific questions on export control processes or permits to First
Assistant Secretary Defence Industry Policy, David Nockels
Australia has not supplied weapons to Israel since the conflict began, nor for at least
the last five years.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
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PDR No: SB23-001094
Last updated: 07 February 2024
Israel-Hamas Conflict
Key witness: Hugh Jeffrey; Air Vice-Marshal Stephen Chappell; David Nockels
Australia has not received a request for military support from Israel.
Any decision to provide military support would be a matter for Government.
If pressed: Has Israel made any enquiries about potential military support?
Australia engages with its international partners on military cooperation as a matter of
course.
In line with longstanding procedure, it would not be appropriate to disclose the
particulars of these private engagements.
But we reiterate that Australia has not received a request for military support from
Israel.
If pressed: Is Israel’s military response legal?
Australia affirms Israel’s right to defend itself, but the way it does so matters.
Australia calls for Israel to respect international humanitarian law and protect civilian
lives.
Questions on International Law should be directed to the Department of Foreign Affairs
and Trade and the Attorney General’s Department.
If pressed: Australian citizens serving with the Israel Defence Force
Handling note: Refer any specific questions to Attorney General’s Department
Under the Criminal Code Act 1995, it is an offence for Australians to engage in hostile
activities overseas, unless serving in or with the armed forces of a foreign country.
The Government encourages all Australians who seek to serve with the armed forces of
a foreign country to carefully consider their legal obligations.
Background
From 16 to 19 January 2024 the Minister for Foreign Affairs visited the Middle East to
support international diplomatic efforts towards a durable peace in the region.
Supporting Information
Questions on Notice
Senate: 15 December 2023
QoN No. 2963, ADF and IDF, Senator David Shoebridge (Greens, New South Wales)
asked a question concerning whether there were any ADF personnel on secondment or
embedded, or in other ways involved with the Israeli Defense Force.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
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PDR No: SB23-001094
Last updated: 07 February 2024
Israel-Hamas Conflict
Key witness: Hugh Jeffrey; Air Vice-Marshal Stephen Chappell; David Nockels
Freedom of Information (FOI) Requests
No FOIs asked.
Recent Ministerial Comments
On 25 January 2024, at the National Press Club, the Prime Minister reiterated his
support for a two-state solution, arguing that this would be in the best interest of Israel
and Palestine in order to live in peace.
On 23 January 2024, the Minister for Foreign Affairs announced Australia has imposed
further counter-terrorism financing sanctions on 12 persons and three entities linked
to Hamas.
On 15 January 2024, the Minister for Foreign Affairs announced her travel to the
Middle East, stating she would use this opportunity to advocate for a pathway out of
the current conflict.
Relevant Media Reporting
On 1 February 2024 the ABC reported that a Defence industry insider has told the ABC
the government appears to be deliberately 'going slow' on approving Israeli military
equipment requests.
On 28 January 2024 The Age reported that Australia will pause its $6 million
humanitarian aid package to the United Nations agency for Palestinians in Gaza as the
organisation investigates allegations that 12 of its staff may have been involved in the
Hamas attacks on October 7 into Southern Israel.
On 23 January 2024 The National Tribune reported that the Minister for Foreign Affairs
announced further counter-terrorism financing sanctions on 12 person and three
entities linked to Hamas, Hizballah and Palestinian Islamic jihad.
On 20 January 2024 The Saturday Paper reported the Minister for Foreign Affairs would
travel to the Middle East, urging for a two-state solution.
On 15 January 2024 The Guardian reported that the Prime Minister had ruled out
Australia’s participation in a case brought against Israel in the International Court of
Justice.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001094
Prepared by:
Cleared by Division Head:
s47E(d)
s47E(d)
Acting Assistant Secretary Global Partners
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
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PDR No: SB23-001094
Last updated: 07 February 2024
Israel-Hamas Conflict
Key witness: Hugh Jeffrey; Air Vice-Marshal Stephen Chappell; David Nockels
Director
International Policy Division
United Nations, Middle East and Africa
Mob:
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Ph:
s47E(d)
Mob:
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Ph:
s47E(d)
Date: 1 February 2024
Date: 1 February 2024
Cleared by Deputy Secretary:
Hugh Jeffrey
Date: 2 February 2024
Deputy Secretary
Strategy, Policy, and Industry Group
Questions on notice referred to within the brief:
Senate
Senator David Shoebridge
Question Number: 2936
Date question was tabled: Not yet tabled.
Question
Please provide details of Australian Defence Force (ADF) personnel on secondment or
embedded or in other ways involved with the Israeli Defence Force, broken down by:
a. the total number of ADF personnel in each of the calendar years from 2017-23, up to 6
October 2023; and the number on and from 7 October 2023;
b. the substantive ADF roles and/or position descriptions of all such ADF personnel;
c. the roles and or position descriptions in the Israeli Defence Force of all such ADF
personnel; and
d. please also provide the number of ADF personnel stationed in Israel, broken down by:
i. the total number of ADF personnel in each of the calendar years from 2017-23, up to 6
October 2023; and the number on and from 7 October 2023; and
ii. the substantive ADF roles and or position descriptions of all such ADF personnel.
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
Climate Change
Handling Note:
Deputy Secretary Strategy, Policy and Industry, Hugh Jeffrey, to lead on climate risk and
international engagement.
Vice Chief of the Defence Force, Vice Admiral David Johnston, to lead on disaster
response and Defence’s submission to the Senate Select Inquiry on Australia’s Disaster
Resilience.
Deputy Secretary Security and Estate Group, Celia Perkins, to lead on emission
reductions and Net Zero.
Key Messages
The Defence Strategic Review recognises climate change as a national security issue
that will increase the challenges for Australia, Defence and our region.
In order to undertake Defence’s core mission to defend Australia and its national
interests, Defence and Australia must be resilient to the impacts of climate change.
Climate change is now an official part of Australia’s defence engagement with our
United States and United Kingdom partners through the establishment of senior
officials’ working groups on climate risk.
Defence is alert to the high priority attached by regional countries to climate change,
and is working with allies and partners to address greater demands for disaster relief
and resilience planning.
Defence provided a submission to the Senate Select Committee on Australia’s Disaster
Resilience, and appeared at the subsequent public hearing held in Canberra on
14 March 2023.
Talking Points
In Australia, the acceleration of major climate events risks is overwhelming the
Government’s capacity to respond effectively. This acceleration detracts from
Defence’s primary objective of defending Australia and its interests.
Defence supports the Government in implementing its climate agenda. This includes
reducing emissions, accelerating our transition to clean energy, adapting to a changing
environment and building resilience against more frequent and severe weather events.
The Defence Strategic Review notes that climate events already place concurrency
pressures on Defence, which have negatively impacted preparedness.
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
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Additional Estimates February 2024
PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
The Government has agreed-in-principle to the Defence Strategic Review’s
recommendation Defence should be the force of last resort for domestic aid to the
civilian community, except in extreme circumstances.
Defence will continue to provide regional Humanitarian Assistance and Disaster Relief
while managing the risks of concurrency pressures.
During a natural disaster, states or territories can request Commonwealth assistance,
including Defence assistance, through the National Emergency Management Agency.
Such requests are known as Defence Assistance to the Civil Community.
This occurred most recently during the floods in New South Wales, Queensland,
and Western Australia; and fires in the Northern Territory, over the period
2022-23.
What is Defence doing to address and mitigate climate change?
Defence’s role, consistent with Government policy, is to:
ensure Defence is resilient to climate change, including our people, capability and
estate;
be prepared to respond to disasters and security threats compounded by climate
change; and
reduce our emissions to meet legislated targets, while enhancing and maintaining
capability.
Defence is developing a Net Zero Strategy to guide action to respond to climate
change, including reducing emissions.
The Defence Strategic Review recognises clean energy transition will be critical for
decarbonisation efforts.
Defence will accelerate its transition to clean energy, as directed by the
Government’s response to the Defence Strategic Review, with a plan to be
presented to the Government by 2025.
Defence has a variety of initiatives under way, including tracking greenhouse gas
emissions, testing alternative fuel sources with lower emissions profiles and changes to
land management practices.
Defence is investing $80 million in the Defence Renewable Energy and Energy Security
Program that commenced in 2018.
The 10-year program includes a range of activities to support Defence’s clean
energy transition, including:
the delivery of pilot projects to test emerging technologies and how they
can be delivered in the Defence context. For example, partnerships with
industry to design, build and operate solar farms, to provide green-power
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
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PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
to Defence. These pilots serve to inform Defence’s future project and
program delivery mechanisms and processes;
supporting and transforming Defence’s business as usual processes to
deliver renewables across the estate, including policy changes and advice,
risk reduction and mitigation activities, feasibility studies, energy options
assessments and provision of technical support; and
exploring alternative contracting and financing models.
Defence is actively working with our international allies and partners in responding to
climate change.
At the Australia-United States Ministerial Consultations, held on 29 July 2023,
principals committed to deepening cooperation to address the climate crisis
through the implementation of the Australia-United States Climate, Critical
Minerals and Clean Energy Transformation Compact announced by the
Prime Minister and the President of the United States in May 2023.
For Defence this includes strengthening coordination on climate security
initiatives such as enhanced information sharing, collaboration on climate
risk assessments and the integration of climate considerations into existing
military exercises and planning.
At the Australia–United Kingdom Ministerial Consultations, Australia and the
United Kingdom committed to reducing and mitigating the climate impacts of our
respective defence activities.
How does Defence support the region in addressing climate change?
Defence works with its Pacific partners to enhance their resilience, including through
infrastructure development that is environmentally sustainable, climate resilient and
supports Humanitarian Assistance and Disaster Relief activity.
Working with the Republic of Fiji Defence planned and redeveloped the Blackrock
Peacekeeping and Humanitarian Assistance and Disaster Relief Camp.
Environmentally sustainable design features were incorporated into all
aspects of the redevelopment to minimise energy usage and improve
buildings’ thermal performance. 88 tons of construction waste was recycled
on this project.
Defence supports our region through extreme weather events and natural disaster
relief.
The ADF provided assistance to the Republic of Vanuatu following Tropical
Cyclones Judy and Kevin in March 2023.
Under Operation VANUATU ASSISTV, Air Force aircraft were deployed to conduct
aerial damage assessments; aid was delivered in the form of food, shelter and
medical supplies; and route clearance and infrastructure remediation was
undertaken.
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
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Phone:
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PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
Defence will continue to play an important role in humanitarian assistance.
Defence’s Pacific Support Vessel, Australian Defence Vessel Reliant, provides
additional capability to respond to the priorities of Pacific countries, building
regional resilience and facilitating humanitarian assistance and disaster
management relief.
What is Defence’s role in disaster relief?
State and territory governments have, and will continue to maintain, primary
responsibility for providing emergency response services in their respective
jurisdictions.
The Commonwealth is able to support state and territory-led crisis response efforts
with ADF capabilities when requested by states and territories.
While there will always be a role for the ADF in disaster response in extreme
circumstances, or when specialist equipment is required, Defence is not structured to
act as a domestic disaster recovery agency and concurrently defend Australia and our
national interests.
The Government is exploring options to enhance the Commonwealth’s crisis responses
and recovery capabilities to support state and territory-led response and recovery
efforts as an alternative to the ADF.
Further questions on alternative Commonwealth crisis response and recovery
capabilities should be directed to the Department of Home Affairs.
If pressed: How has the Office of National Intelligence’s assessment on climate change
informed Defence Climate Policy?
Defence supported the assessment by providing input and background information to
the Office of National Intelligence on Defence-specific issues.
s47E(d)
s47E(d)
The assessment has shaped Defence thinking on climate adaptation and resilience,
including Defence’s energy, emissions and international engagement policy.
Background
Timeline of Significant Events
On 30 November 2023 the Minister for Climate Change and Energy tabled the
Government’s second Annual Climate Change Statement in Parliament.
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
On 29 July 2023 the most recent Australia–United States Ministerial Consultation was
held in Brisbane.
On 11 July 2023 the inaugural Senior Officials Climate Working Group on Climate Risk
was held virtually with the United States.
On 24 April 2023 the Government released the public version of the Defence Strategic
Review.
On 2 February 2023 the most recent Australia-United Kingdom Ministerial Consultation
was held in Portsmouth, United Kingdom.
In 2022 the Office of National Intelligence-led national climate assessment was
delivered to the Office of the Prime Minister.
Office of National Intelligence Climate Risk Assessment
In line with the Government’s pre-election commitment, the Office of National
Intelligence coordinated an assessment of the implications of climate change for
Australia’s national security.
The assessment was delivered to the Prime Minister.
Defence is unable to provide further information the assessment as the details relate to
informing national security advice.
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 25 October 2023
QoN No. 66, Frequency of Climate Events, Senator the Hon Malcolm Roberts
(One Nation, Queensland) requested evidence of the Chief of the Defence Force’s
claim of more frequent and intense natural disasters.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates.
The decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack.
Documents were released on 7 August 2023.
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
Recent Ministerial Comments
On 30 November 2023 the Minister for Climate Change and Energy delivered the
Annual Climate Change Statement to Parliament, including the impacts of climate
change on national security.
On 17 November 2023 the Assistant Minister for Defence reiterated points from the
Defence Strategic Review, that climate change amplifies the challenges of the region,
and is a threat to national security.
On 14 September 2023 the Minister for Foreign Affairs made a statement on SBS news
that the Government will not be releasing the Office of National Intelligence Climate
Risk Assessment.
On 7 August 2023 the Prime Minister stated, in response to a question from the
Member for Ryan, that the Government does not release Office of National Intelligence
assessments provided to the National Security Committee.
Relevant Media Reporting
On 29 November 2023 various media outlets (including The Canberra Times,
The Conversation, ABC News) wrote about the national security elements of the Annual
Climate Change Statement to Parliament, claiming that it was informed by elements of
the Climate Risk Assessment.
On 13 September 2023 The Canberra Times published an article by Karen Barlow titled
‘Former Defence chief Chris Barrie blasts Anthony Albanese as 'missing in action' over
climate security’ which wrote that former Chief of the Defence Force Chris Barrie was
heavily criticising the Government and calling for the release of the Office of National
Intelligence Climate Risk Assessment with House and Senate crossbenchers.
On 29 August 2023 The Guardian published an article by Daniel Hurst titled ‘Too hot to
handle: climate crisis report so secret Albanese government won’t even reveal date it
was completed’ which includes quotes from Green’s senator David Shoebridge and
Independent Australian Capital Territory senator David Pocock calling for the release of
the Office of National Intelligence climate risk assessment.
On 24 August 2023 The Canberra Times published an article by Karen Barlow titled
‘Albanese confirms the government is holding tight to a secret climate risk report’ that
wrote in response to increasing pressure, the Prime Minister confirmed there are no
plans to release a declassified version of the Office of National Intelligence climate risk
assessment.
On 4 August 2023 The Guardian published an article by Daniel Hurst titled ‘Greens push
Labor to release declassified climate crisis report ‘full of explosive truths’’ which wrote
about the Greens introducing a motion in the Senate to produce a declassified version
of the Office of National Intelligence climate risk assessment within a month of the
motion passing.
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
On 3 August 2023 The Guardian published an article by Daniel Hurst titled ‘Climate
crisis: Australia must ready for ‘devastating’ regional disruption, MPs told’ which
contained excerpts from a climate think tank paper examining climate change impacts
on Australia and the Indo-Pacific. The paper makes note of the Office of National
Intelligence climate risk assessment remaining classified.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001095
Prepared by:
Cleared by Division Head:
Ashley Townshend
Dr Sheridan Kearnan
Assistant Secretary National Security and
First Assistant Secretary
Resilience
Strategic Policy Division
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 7 December 2023
Date: 10 January 2024
Cleared by DSR:
s47E(d)
Date: 8 December 2023
Director Strategy, Policy and Engagement
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates 25 October 2023
Senator Malcolm Roberts
Question Number: 66
Date question was tabled: Not yet tabled
Question
1. General Campbell said in an address to the 2023 ASPI conference, “A hotter environment
with larger, more intense climate events, more often, will be the norm.” What evidence is
that statement based on, that there is going to more frequent more intense natural
disasters?
2. The United Nation’s International Panel on Climate Change Sixth Assessment Report
provides at table 12.12 in Chapter 12
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001095
Last updated: 10 January 2024
Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston AC; Celia Perkins
(https://www.ipcc.ch/report/ar6/wg1/downloads/report/IPCC_AR6_WGI_Chapter12.pdf#pag
e=90) that the available scientific evidence says there has been no detectable increase in the
number of Natural Disasters in frost, river flood, rain (measured in terms of mean
precipitation or heavy precipitation), landslide, drought, fire weather, wind speed, wind
storm, tropical cyclone, dust storm, heavy snowfall, hail, relative sea level, coastal flood,
marine heatwave. What type of weather event is the increased risk General Campbell is
claiming going to come from? Why is this statement in conflict with the available scientific
evidence?
Answer
Not yet tabled.
Prepared By:
Cleared By:
Name: Ashley Townshend
Name: Susan Bodell
Position: Assistant Secretary National Security and Position: Acting Deputy Secretary
Resilence
Group/Service: Strategy, Policy and Return to Index
Division: Strategic Policy Division
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
External Workforce - Contractors and Consultants
Handling Note: Chief Finance Officer, Steven Groves, to lead.
Key Messages
Defence is committed to supporting the Government’s plan to strengthen the APS by
increasing the proportion of work undertaken by public servants and progressing
initiatives to implement the Australian Public Service Commission Strategic
Commissioning Framework.
Defence is targeting a reduction of 2,000 ‘Above the Line’ contractors on a net basis by
December 2024.
Overall, the total external workforce has reduced by 1,406 full-time equivalent
(4 per cent) compared to the March 2023 Census.
Defence made progress towards this target with a net reduction of 908 contractors at
the end of September 2023. This is in line with internal targets.
Defence will continue to engage technical specialists through the external workforce to
respond flexibly to changing circumstances, including surge requirements.
Talking Points
What steps has Defence taken to progress the Government’s commitment to improving the
public service and reducing contractor expenditure?
Defence contributed $145 million in 2022-23 to the whole-of-government savings
measure to reduce expenditure on external labour, advertising, travel and legal
expenses.
The 2023-24 budget includes $632 million of savings for Defence against this measure
over the forward estimates, including $154 million in 2023-24. Defence is planning to
achieve these savings by converting contracted roles into APS positions.
Defence is managing its overall workforce in line with the Government’s existing policy
guidance, while also responding to increasing work demands.
To facilitate the conversion from contracted positions to APS staff, Defence was
provided an additional 660 Average Staffing Level in 2023-24, 1,850 in 2024-25 and
2,000 in 2025-26 (ongoing).
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 1
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
What is the size of Defence’s external workforce?
The most recent External Workforce Census in September 2023 reported 35,924
full-time equivalent engaged as part of the external workforce. Overall, the total
external workforce reduced by 1,406 full-time equivalent (4 per cent) compared to the
March 2023 Census. The reduction largely reflected progress towards the Defence
contractor reduction targets.
28,856 full-time equivalent, or 80 per cent, were engaged through outsourced service
providers.
This was an increase of 410 from 28,446 full-time equivalent (76 per cent of the
total) since the March 2023 census. This result included a reclassification of
873 full-time equivalent from the contractor category.
6,742 full-time equivalent, or 19 per cent, were engaged as contractors. This reflected:
a genuine decrease of 908 contractors since March 2023; and
the reclassification of 873 full-time equivalent resources from contractors to
outsourced service providers.
326 full-time equivalent, or one per cent, were engaged as consultants.
This was a reduction from 361 full-time equivalent since March 2023.
The need for an integrated workforce will continue into the future, particularly as the
Defence budget grows over time and the complexity of capability delivery
requirements increase, requiring a more specialised workforce.
The policy direction of the Government will mean the mix of resources will be
rebalanced moving forward.
The results of the Defence External Workforce Census in September 2023 showed a
genuine reduction in contractors of 908 full-time equivalent (11 per cent). This is on
track to meet the agreed targets of 2,000 by December 2024.
Defence has reclassified a further 873 full-time equivalent from contractors to
outsourced service providers where they are more accurately reflected, resulting in an
overall reduction from March 2023 of 1,781 full-time equivalent contractors. Defence
only considers the reduction of 908 full-time equivalent as progress towards the
contractor reduction target of 2,000 full-time equivalent.
Why does Defence use contractors and not employ more APS personnel?
The majority of Defence’s external workforce (28,856 full-time equivalent or
80 per cent) are outsourced service providers.
These providers deliver services in areas where Defence has made a deliberate decision
to outsource functions, or where the private sector has the expertise and skills to more
efficiently deliver these functions.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
The Australian Strategic Policy Institute Cost of Defence Report 2022-23 noted the use
of contractors by Defence has been critical to the strong outcomes achieved in
acquisition and sustainment in recent years.
Defence has – and will continue – to operate under the workforce policies set by the
Government. While some of these settings will be adjusted, the integrated workforce
will continue to be a critical enabler of Defence capability.
How much did Defence spend on its external workforce in 2022-23?
In 2022-23 Defence spent $11.5 billion on outsourced service providers, $2.6 billion on
contractors and $162 million on consultants (all figures GST exclusive).
Defence spent approximately $2.1 billion on APS employee expenses in 2022-23.
Background
The External Workforce Census provides an estimate of the full-time equivalent of
outsourced service providers, contractors and consultants engaged by Defence. The
Census measures outcomes at a point in time and in a regular and repeatable manner.
Past External Workforce Census results
Full-time equivalent by
September 2023
March 2023
March
Category
(% change)
(% change)
2022
Contractors
6,742 (down 21 per cent)
8,523 (up three per cent)
8,311
Outsourced service
28,856 (up one per cent)
28,446 (up nine per cent)
26,199
providers
Consultants
326 (down ten per cent)
361 (down two per cent)
370
Total
35,924 (down four per cent)
37,330 (up seven per cent)
34,880
External Workforce Expenditure over Time
Consultants
2022-23
2021-22
2020-21
2019-20
Expenditure of contracts
162
154
116
104
(GST exclusive) ($m)
As a percentage of Defence expenditure
0.34
0.33
0.28
0.26
(GST exclusive)
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
Contractors
2022-23
2021-22
2020-21
2019-20
Expenditure of contracts (GST exclusive)
2.572
2.487
1.873
1.520
($b)
As a percentage of Defence expenditure
5.33
5.38
4.50
3.90
(GST exclusive)
Outsourced Service Providers
2022-23
2021-22
2020-21
2019-20
Expenditure of contracts service providers
11.513
13.072
10.955
10.410
(GST exclusive) ($b)
As a percentage of Defence expenditure
23.88
28.28
26.10
26.40
(GST exclusive)
‘Big Four’
In September 2023, 1,012 full-time equivalent from the Big Four were delivering
services to Defence (down from 1,276 full-time equivalent in March 2023).
Outsourced Service
Consultant (FTE)
Contractor (FTE)
Providers (FTE)
Company Sep 2023
Mar 2023
Sep 2023
Mar 2023
Sep 2023
Mar 2023
KPMG
1
18
435
466
196
196
Deloitte
23
13
109
114
84
47
PWC
4
17
36
175
14
60
EY
13
6
76
129
22
35
Total
41
54
655
885
316
338
*Totals may not add due to rounding.
The Big Four and Accenture provide many services to Defence. Services predominantly relate
to project management (532 full-time equivalent or 40 per cent) and information technology
(442 full-time equivalent or 33 per cent).
In 2022-23 Defence spent $633 million (GST inclusive) on the Big Four accounting firms,
comprised of:
KPMG ($307 million);
PricewaterhouseCoopers ($128 million);
Deloitte ($105 million); and
Ernst & Young ($93 million).
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
For the Big Four, expenditure was categorised as contractors (66 per cent), outsourced
service providers (26 per cent) and consultants (eight per cent).
Major Service Providers
Major service providers must be members of the Defence Support Services panel and
be capable of delivering larger, longer-term and more integrated work packages across
the Capability Acquisition and Sustainment Group domains. The four major service
providers are:
Jacobs (Jacobs Australia);
Team Nova (Nova Systems Australia, QinetiQ and PwC);
KEY Team (Kellogg Brown & Root, Ernst & Young); and
Team Downer (Downer EDI Engineering Power Pty Ltd, Systra ANZ Pty Ltd, Envista
Pty Limited, AGIS Group Pty Limited and Providence Consulting Group Pty
Limited).
In September 2023, 4,245 full-time equivalent from the major service providers were
delivering services to Defence (down from 4,280 full-time equivalent in March 2023).
The major service providers resources included:
2,727 contractors (down from 2,781 full-time equivalent);
1,480 outsourced service provider resources (up from 1,474 full-time equivalent);
38 consultants (up from 25 full-time equivalent);
801 KEY Team full-time equivalent (down from 67 full-time equivalent);
975 Team Nova full-time equivalent (up from 67 full-time equivalent);
715 Jacobs full-time equivalent (up from 27 full-time equivalent); and
1,754 Team Downer full-time equivalent (down from 62 full-time equivalent).
Primary activities were in the fields of:
property (1,185 full-time equivalent or 28 per cent);
project management (964 full-time equivalent, 23 per cent); and
sustainment (674 full-time equivalent, 16 per cent).
Supporting Information
Questions on Notice
Supplementary Budget Estimates: 2 November 2023
QoN 88, Consultants, Senator Jacqui Lambie (Jacqui Lambie Network, Tasmania) asked
to be provided with details of consultants from February to October 2023.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
QoN 143, Consultants, Senator Jane Hume (Liberal, Victoria) asked to be provided with
details of how Defence implemented savings initiatives from the 2022-23 October
Budget.
QoN 101, Consultants, Senator Jacqui Lambie (Jacqui Lambie Network, Tasmania) asked
to be provided with details of consultants from February to June 2023.
Freedom of Information (FOI) Requests
In August 2023 a media organisation sought access under FOI to documentation
relating to the most recent copy of Defence's March 2023 External Workforce Census
results. D
Documents were released on 21 September 2023.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 20 November The Canberra Times published an article by Miriam Webber titled
Health, Defence two biggest consultancy spenders in 2022-23, discussing the overall
reduction in consultancy contracts across the APS, including within Defence.
On 26 September 2023 The Australian published an article titled Defence reliant on
growing contractor army. Journalist Ben Packham reported Defence’s outsourced
workforce has risen to a record number of 37,330 under the Albanese government and
the number of outsourced workers engaged by the department rose by 7 per cent up
to March 2023.
On 12 September 2023 The Australian Financial Review published an article titled Big
four consultants investigated by Defence Department. Journalist Ronald Mizen
reported three of the big-four consulting firms are being investigated over their
conduct while contracted to Defence.
On 22 August 2023 The Australian Financial Review published an article ‘We’re value
for money’: KPMG boss hits back over Defence bill. Edmund Tadros reported KPMG’s
boss says it was regrettable the consulting giant improperly shared sensitive Defence
information, and called on his troops to “deliver high quality work and value for
money” as he rejected overcharging allegations.
On 9 August 2023 The Australian published an article titled Corporate camouflage:
KPMG’s insider army guy. Journalist Ben Packham reported KPMG’s lead partner
responsible for Defence has a second job as an Army Reserve brigadier that grants him
insider access to Defence information.
On 7 August 2023 the ABC published an article titled KPMG consultants overcharging
Defence while raking in billions. Journalist Angus Grigg reported whistleblowers say
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 6
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
Defence was charged for work never done and jobs not needed, and the use of
consultants in government is wasting money and damaging accountability.
Division:
Budgets and Financial Services
PDR No:
SB23-001096
Prepared by:
Cleared by Division Head:
Tara Gould
Sam Volker
Assistant Secretary
First Assistant Secretary
Budgeting and Reporting
Budgets and Financial Services
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 11 December 2023
Date: 15 December 2023
Cleared by Deputy Secretary:
Steven Groves
Date: 18 December 2023
Chief Finance Officer
Defence Finance Group
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates
Senator Jacqui Lambie
Question Number: 88
Date question was tabled: Not yet tabled
Question:
1. How many consultants (I.e. not APS, or labour hire contract workers) were working in the
agency between 17 February 2023 to 27 October 2023?
- What was the nature of work these consultants performed on behalf of the agency?
- Were any consultants used to augment work ordinarily conducted by APS employees?
2. Please advise the previous role (the role immediately prior to taking up their current SES
role) for each Senior Executive Service officer.
3. From which companies were all consultants engaged by the Department of Defence?
- Please tabulate this information.
- What was the value for each consultancy procured by the agency?
4. Have any consultants at the agency been given authority to act as a delegate for the
Commonwealth since 17 February 2023?
- If yes:
a. How many and at what level?
b. What was the nature of the delegations?
Answer:
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 7
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
Not yet tabled.
2023-24 Supplementary Budget Estimates
Senator Jane Hume
Question Number: 143
Date question was tabled: Not yet tabled
Question:
In relation to the measure in the 2022-23 October Budget, Savings from External Labour, and
Savings from Advertising, Travel and Legal Expenses.
1. What was the value of savings that the Department/agency was requested to deliver for
the 2022-23 year in aggregate?
2. Has the Department/agency identified the savings they will make across the following
areas to achieve this cut:
i.External labour hire
i.Consultancy
i.Advertising campaigns
i.Travel
i.Legal expenses
3. Can the Department/agency provide a breakdown of the funding reductions they have
made in totality, and in each of the above areas, and what they relate to?
4. Has the Department/agency been informed of the cut that will be made to their funding in
the next financial year, or the rest of the forward estimates?
5. Can the Department/agency confirm the total new number of contracts (ongoing and
terminating) and total cost of these contracts issued on AusTender since 30 June 2022 which
relate to the following areas:
i.External labour hire
i.Consultancy
i.Advertising campaigns
i.Travel
i.Legal expenses
6. Please provide a breakdown of the value of contracts across each area, and identify the
categories on AusTender which are used to determine the Departments identification of the
contracts.
7. Is the Department/agency on track to meet the saving target?
8. Has the Department/agency sought an exemption or alternation from/to the savings
target?
9. If so, why and was it approved?
Answer:
1. Refer to Defence October Portfolio Budget Statements 2022-23, Table 2, page 13.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 8
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
2. Defence has been allocated savings across Group and Services based on external
workforce (contractor) usage.
3. Refer to Question 2. Groups and Services internal budgets were reduced and areas are
expected to manage within revised budgets.
4. Refer to Defence Portfolio Budget Statements (PBS) 2023-24, Table 2, page 14.
5. As at 13 November 2023, summary of new contracts since 30 June 2022:
Category
AusTender Category
No. of
Value
Contracts
External Labour Hire
N/A
-
-
Consultancy
Consultancy
146
$76,149,898
Advertising Campaigns
Advertising
43
$80,136,518
Promotional or advertising
printing
Newspaper advertising
Travel
Travel agents
19
$1,062,310
Travel facilitation
Legal Expenses
Legal Services
540
$85,565,542
Total
748
$242,914,268
6. Relevant AusTender Categories are identified in the above table in response to
Question 5.
7. Yes.
8. No.
9. N/A.
2023-24 Budget Estimates
Senator Jacqui Lambie
Question Number: 101
Date question was tabled: 14 July 2023
Question
1. How many consultants (I.e. not APS, or labour hire contract workers) were working in the
agency between 18 February 2023, and 2 June February 2023?
- What was the nature of work these consultants performed on behalf of the agency?
- Were any consultants used to augment work ordinarily conducted by APS employees?
2. How much money did the agency spend on consultants between 18 February 2023, and 2
June February 2023?
3. From which companies were all consultants engaged by the Department of Defence?
- Please tabulate this information.
- What was the value for each consultancy procured by the agency?
4. Have any consultants at the agency been given authority to act as a delegate for the
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
Page 9
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
Commonwealth since 18 February 2023?
- If yes:
a. How many and at what level?
b. What was the nature of the delegations?
Answer
1. As per the March 2023 External Workforce Census, 361 full-time equivalent.
- Consultants are engaged for the provision of professional, independent advice, and other
strategic services involving the development of intellectual output which represents the
independent view of the Service Provider and assists with entity decision-making.
- Consultants augment the work of APS employees through the provision of specialist skills
and advice.
2.
Annual consultancy expenditure is reported in the Annual Report. Contracts entered into
are available on AusTender.
3. Contracts may extend over multiple time periods and reflect the contract value, not the
expense incurred.
Consultants Contracts published – 18 February to 2 June 2023
Supplier Name
Value (AUD)
BASTION INSIGHTS
396,484.00
KPMG AUSTRALIA
945,450.00
G H D PTY LTD
335,390.00
SAMMUT CONSULTING
252,319.98
PROXIMITY LEGAL
176,020.00
JONES LANG LASALLE ADVISORY SERVICES PTY LTD
32,780.00
EQUATOR CORPORATION
113,803.70
BECA PTY LTD
35,000.00
AERO PM PTY. LTD.
384,500.00
MCCONAGHY, CRAIG KEITH
106,000.00
SME GATEWAY PTY LTD
100,000.00
GREEN BUILDING COUNC
22,110.00
AECOM AUSTRALIA PTY LTD
190,000.00
SPARKE HELMORE
73,666.45
ERNST & YOUNG
250,000.00
THE COHEN GROUP LLC
119,000.00
SEA TO SUMMIT PTY LTD
11,033.00
SPARKE HELMORE
89,607.65
ODENSE MARITIME TECHNOLOGY A/S
137,307.63
SERVEGATE AUSTRALIA PTY LTD
258,960.00
CPM REVIEWS PTY LTD
21,660.00
CONVERGE INTERNATIONAL PTY LTD
10,029.25
PL SOLUTIONS LTD.
385,000.00
THE TRUSTEE FOR FOCAL POINT CONSULT
12,899.70
G H D PTY LTD
3,005,272.08
GHD PTY LTD
385,000.00
AECOM AUSTRALIA PTY LTD
102,784.00
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Additional Estimates February 2024
PDR No: SB23-001096
Last updated: 30 January 2024
External Workforce - Contractors and Consultants
Key witnesses: Steven Groves
THE RAND CORPORATION (AUSTRALIA) PTY LTD
109,306.00
DASSAULT SYSTEMES AUSTRALIA PTY LTD
110,000.00
STEPHEN MERCHANT CONSULTING
39,600.00
GHD PTY LTD
80,764.00
AECOM
57,887.50
ERNST & YOUNG
1,429,230.00
SHEOAK INTERNATIONAL PTY LTD
231,000.00
TOTAL
10,009,864.94
4. No.
Prepared By:
Cleared By:
Name: Tara Gould
Name: Sam Volker
Position: Assistant Secretary Budgeting &
Position: First Assistant Secretary Budgets
Reporting
& Financial Services
Return to Index
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
ADF Recruitment and Retention
Handling Note:
Chief of Personnel, Lieutenant General Natasha Fox, to lead.
Deputy Secretary Defence People, Justine Greig, to support.
Key Messages
The Government has directed Defence to prioritise improving recruitment and
retention outcomes for ADF personnel.
Improved recruiting and retention is occurring through:
widening the recruitment aperture to increase opportunity for potentially suitable
applicants to join the ADF;
streamlining the recruiting system to increase the number of people joining the
ADF;
improving the recruiting processes to enable faster recruiting; and
drawing out retention initiatives that encourage longer service.
The ADF is currently 6.9 per cent below its required strength. Separation rates are
falling; however, inflow rates remain below the required level.
Talking Points
Workforce Figures and Growth
As at 1 January 2024 the permanent ADF workforce was 56,652.
In addition, there are 626 in the Gap Year program and a further 1,293 reserve
personnel undertaking full time service.
The total permanent and full time service personnel is currently 58,572.
Outflow from the permanent ADF is reducing. The current separation rate is
10.1 per cent, declining by 1.5 per cent over the last 12 months. Whilst reducing, it
currently remains 0.4 per cent above the long-term average rate of 9.7 per cent.
Inflow into the permanent ADF is currently insufficient to maintain strength. As at
1 January 2024, the total (all avenues) inflow level was 48 per cent of the year-to-date
requirement.
Recruiting and Retention Initiatives
In response to the Defence Strategic Review, and as part of the 2023-24 Budget, the
Government agreed to progress the following initiatives in support of workforce growth
and retention:
A two-year pilot program for an ADF Continuation Bonus, whereby eligible ADF
personnel committing to a further three years of service could receive a $50,000 bonus
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
payment – a government investment of approximately $395 million. The eligibility
period for the ADF Continuation Bonus commenced from 1 July 2023.
A Defence Housing Support Review was undertaken between August and December
2023.
The Review engaged with key stakeholders to address five key questions around
the provision of housing support to ADF members:
Is provision of Defence housing support fit for the future?
What improvements can be made to improve the existing Defence housing
policy (Service Residence, Rental Allowance and Living-In Accommodation)?
How can Defence improve housing affordability for current ADF members
and their families, and those transitioning to civilian life?
How can Defence best incentivise home ownership for ADF members?
How can Defence’s housing support offer be improved to become a
positive attraction and retention element in the Employee Value
Proposition?
The contracted provider, Grosvenor Performance Group Pty Ltd, delivered their
Defence Housing Support Review report on 20 December 2023.
Defence is reviewing the report. Advice will be provided to Government in 2024.
An ADF Remuneration Package Review commenced in June 2023 and will conclude in
February 2024. The Review will provide Defence with outcomes from an assessment of
the current salary structure framework and include options for a future framework,
should that be necessary.
In October 2022 the Secretary and the Chief of the Defence Force directed the
implementation of six ‘immediate action’ retention initiatives aimed at reducing
workforce irritants and regaining workforce confidence:
greater access to professional development;
revision of ADF higher duties allowance;
travel policy allowance changes;
expanded remote locality leave to allow an additional trip per year;
expanded family health benefits; and
development of an enterprise-level employee value proposition framework.
The implementation costs for these six immediate actions in 2023-24 is estimated
to be between $100 million and $110 million.
Other initiatives aimed at uplifting the Employee Value Proposition include:
expansion of the Defence Assisted Study Scheme and Studybank scheme;
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
better housing flexibility and choice for ADF members with additional housing
options now available;
additional and more flexible access to parental leave, easier access to carer’s
leave and more flexibility in how members access their long service leave;
a new allowance framework, the Military Factor Framework (Phase One
implemented from 25 May 2023);
a new categorisation framework and a change to categorisation terminologies
(effective from 1 July 2023);
a new location framework (effective from 1 July 2023);
an additional five days of basic recreation leave (effective from 1 July 2023) and
flexibility in how members use their leave (rolling implementation from
1 July 2023); and
an increase to the permanent trained force annual salary rates of $2,000
(pro-rata for reserves and trainees) to support any potential impacts from ADF
Employment Offer Modernisation Program initiatives.
If pressed: What is Defence currently doing to address ADF recruiting priorities?
Initiatives to increase recruiting outcomes in the short-term include increasing:
the number of events and engagements Defence Force Recruiting attends,
particularly in schools;
maintaining the virtual engagements and processes that were effective through
COVID-19;
communicating across a variety of media channels how Defence employment can
address the contemporary needs of young Australians; and
candidate care and contact through the recruiting process.
Defence is also reviewing policy and risk settings to better meet recruitment needs by
2024.
If pressed: Who is eligible for the ADF Continuation Bonus?
Eligibility criteria for the bonus includes:
being a permanent ADF member;
nearing completion of the initial service obligation imposed on entry to the ADF;
having completed, or will complete, a minimum four years of service; and
agreeing to recommit to three years of full-time effective service.
Under the two-year pilot program, the eligibility period for reaching the end of initial
service obligation is between 1 July 2023 and 30 June 2025. First payments for eligible
personnel commenced in January 2024.
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
If pressed: Why are junior ranks being targeted for the ADF Continuation Bonus? What about
the existing non-commissioned officers (Corporal and Sergeant equivalents)
The ADF Continuation Bonus is a retention bonus targeted at the point where
separation is most likely to occur. For the majority of ADF members, this is the point at
which their initial service obligations ends.
This is a two year pilot designed to encourage people at junior ranks who are
approaching the completion of their initial service obligation to commit to serve for a
further period. Subject to a successful evaluation of the two-year pilot, the program is
planned to continue for several years, with regular reviews to ensure it remains both
relevant and targeted at the points of highest separation.
The bonus extends the period of service for three years. Some junior
non-commissioned officers will be eligible for the bonus. The bonus is intended to
extend the initial service period to a point where junior non-commissioned officers may
become eligible for promotion.
By increasing the number of personnel remaining in service at a point where separation
rates are typically high, the hollow rank structures will progressively reduce over time.
If pressed: Are there other retention bonuses paid to ADF members?
Defence currently offers various bonus schemes, in addition to the ADF Continuation
Bonus, to retain personnel, develop and sustain key capability outcomes.
Current examples of the bonuses and capability payments paid include:
Navy’s Submarine Capability Assurance Payment;
Army’s Capability Retention Scheme; and
Air Force’s Military Skills Instructor Bonus.
Defence bonuses and capability payments are designed to extend the service of
members in key occupations, including but not limited to: cyber, intelligence,
communications, submariner and aviation.
In 2022-23, Defence invested $180 million in retention bonuses through payments to
approximately 5,000 ADF members. Of these, around 90 per cent are for other rank
personnel (Warrant Officer Class One to Private equivalent).
If pressed about Defence Force Recruiting Campaigns:
A new ‘ADF Careers’ brand campaign is currently in development and is expected to
launch in the second half of 2024. The campaign will focus on the five warfighting
domains of maritime, land, air, space and cyber.
The campaign is designed to attract young Australians looking for a career that gives
them a sense of purpose and the opportunity to contribute towards Australia’s
National Defence.
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
Background
The former Government agreed to a workforce growth of 18,500 in Defence from
2024-25 to 2039-40. This would bring the total permanent workforce to over 100,000.
Approximately $38 billion was funded and allocated to support workforce growth of
12,500 – comprised of 10,449 ADF Average Funded Strength and 2,051 APS Average
Staffing Level. The remaining 6,000 workforce growth is to be assessed and allocated as
part of the implementation of Government’s response to the Defence Strategic Review.
Defence Strategic Review
The Government agreed to the Defence Strategic Review’s four recommendations
relating to recruitment and retention.
Defence is developing options to streamline recruitment framework. Options
would focus on broadening the pool of potential applicants, reducing recruitment
times and aligning service recruitment requirements to military employment,
especially in technical and specialist trades such as cyber, engineering and space.
Options will be developed by Quarter 2, 2024.
By Quarter 2, 2024, options will be developed that will change the policy and risk
settings to improve recruitment outcomes.
ADF personnel management has been centralised into a single integrated system,
headed by a recently appointed Chief of Personnel, reporting directly to the Chief
of the Defence Force.
A comprehensive strategic review of the ADF Reserves, including consideration of
the reintroduction of a Ready Reserve Scheme, will be conducted by 2025.
ADF Recruiting Contract
Defence Force Recruiting is a collaborative partnership between Defence and Adecco
Australia, a specialist commercial recruiting company. Defence Force Recruiting
undertakes marketing, recruiting and the enlistment/appointment of all ab-initio
candidates into the ADF with a customer-facing name of ‘ADF Careers’.
Adecco Australia commenced transition into the delivery of recruiting services from
1 November 2022 and assumed complete responsibility of services from 1 July 2023.
The new arrangements work towards delivering 100 per cent of ADF recruitment in 100
days from application to letter of offer, supported by candidate-centric behaviours
(noting the 100-day recruiting timeline is not contractually mandated until June 2025).
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 9 January 2024 Sky News posted an article by Patrick Hannaford titled Questions
raised after Prime Minister Anthony Albanese appears unaware of major change to
defence force recruitment, highlighting the ADF recruitment challenges and focusing
on potential engagement of non-Australian citizens.
On 6 December 2023 The Canberra Times posted an article by Karen Barlow titled
Hastie challenges Marles to drive army recruitment Bob Hawke-style, highlighting the
recruitment challenges Defence is currently facing.
On 19 October 2023 The Australian posted an article by Ben Packham titled Shrinking
military 'threatens capability'. The article highlights the decreasing workforce figures
included in the Defence Annual Report.
Division:
Workforce and People Strategy
PDR No:
SB23-001097
Prepared by:
Cleared by Division Head:
Commodore Virginia Hayward
Leisa Craig
Director General
Workforce and People Strategy
Workforce Strategy
Mob: Ph: s22
Mob:
s22
Ph:
s47E(d)
Date: 7 February 2024
Date: 7 February 2024
Consultation:
Rear Admiral Robert Plath, Head Recruiting
Date: 11 December 2023
and Retention
Mob: s22
Ph: s47E(d)
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001097
Last updated: 7 February 2024 Recruitment and Retention
Key witness: Lieutenant General Natasha Fox
Cleared by DSR:
Ciril Karo
Date: 18 December 2023
First Assistant Secretary
Defence Strategic Review Implementation
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 8 February 2024
Justine Greig
Deputy Secretary
Defence People Group
Lieutenant General Natasha Fox
Chief of Personnel
Defence People Group
Prepared By:
Cleared By:
Name: Commodore Virginia Hayward
Name: Lieutenant General Natasha Fox
Position: Director General
Position: Chief of Personnel
Return to Index
Division: Workforce and People Strategy
Group/Service: Defence People Group
Phone: s47E(d)
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
IGADF Afghanistan Inquiry
Handling Note:
Chief of the Defence Force, General Angus Campbell, AO, DSC to lead on command
accountability and Leahy Law questions.
Associate Secretary, Matt Yannopoulos PSM to lead on compensation questions.
Chief Defence Counsel, Adrian D’Amico, to support compensation questions.
Head Afghanistan Inquiry Response Task Force, Rear Admiral Brett Wolski, to lead on
Afghanistan Inquiry Reform Program questions.
Key Messages
Defence, through the Afghanistan Inquiry Reform Program, has undertaken a
substantial body of work to address the findings and recommendations of the
Inspector-General of the Australian Defence Force Afghanistan Inquiry and embed
sustainable, enduring reform across the organisation.
At this time, Defence has implemented actions to close 124 of the 143 Inquiry
recommendations.
Requests to release letters relating to the Deputy Prime Minister’s and the Chief of the
Defence Force’s considerations on command accountability are subject to a Public
Interest Immunity claim.
The United States Leahy Law was never triggered. Defence and the United States
consider this matter closed.
Support services are available to individuals who are involved in, or affected by, the
Afghanistan Inquiry whether they are current or former serving ADF members or their
families.
Any person with information regarding allegations of war crimes should refer those
issues to the Office of the Special Investigator or the Australian Federal Police.
Talking Points
Compensation
The issue of compensation is highly complex and comes with a number of significant
practical and logistic issues.
The Afghanistan Inquiry report made 15 recommendations to pay compensation to
alleged victims and their families where there is credible evidence involving allegations
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
s22
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Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
of property damage, assault and unlawful killing, without awaiting the establishment of
criminal liability.
The Australian Government has agreed to a pathway forward to establish a
compensation scheme within Defence, under regulation. Work is continuing to finalise
the details of the scheme.
Command Accountability
In response to recommendations from the Inspector-General of the Australian Defence
Force Afghanistan Inquiry, the Chief of the Defence Force considered the command
accountability of current and former ADF members who held command positions
during the periods in which the Inspector-General found credible information of
incidents of alleged unlawful conduct. He subsequently provided the relevant
information to the then Minister for Defence, for his consideration.
The Chief of the Defence Force wrote to the individuals involved in this process,
providing an update.
These letters and associated information is the subject of a Public Interest
Immunity claim as disclosure would or could unreasonably harm the privacy of
individuals and the integrity of the ongoing decision-making process.
These letters have previously been sought through Freedom of Information
processes. The decision to refuse access is now subject to an external review by
the Administrative Appeals Tribunal.
The Deputy Prime Minister is now considering command accountability. Should he
consider that an honour or award should be cancelled, he will make a recommendation
to the Governor-General for his determination.
If pressed: What is the difference between command accountability and criminal
responsibility?
ADF commanders at all levels have a legal responsibility for ensuring forces under their
command comply with the Law of Armed Conflict and Rules of Engagement.
Commanders can be held criminally responsible for being directly, indirectly or
knowingly concerned in or party to the commission of a war crime.
Separate from command responsibility, command accountability can exist regardless of
individual criminal liability. Commanders are held accountable for the actions of their
subordinates. This is described in Defence doctrine such as the ‘ADF Command and
Control Manual’ and ‘Leadership Doctrine’.
Command accountability action may be considered where it is found that a commander
is morally responsible for the actions of their subordinates, regardless of the
commander’s involvement in the specific acts.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
With respect to the Afghanistan Inquiry, the Inspector-General found alleged criminal
behaviour was ‘conceived, committed, continued and concealed’ at the patrol
commander level.
The Inquiry also found, above patrol commander level, commanders did not know and
were not recklessly indifferent to whether their subordinates were allegedly
committing war crimes and did not fail to take reasonable steps to discover the
behaviour.
Nonetheless, the Inquiry found commanders bear moral responsibility and
accountability for what happened under their command, and recommended the review
of honours and awards.
If pressed: Why did the Government not direct the Defence Honours and Awards Appeals
Tribunal to undertake a review?
A recommendation to cancel an honour or award is not a decision reviewable by the
Defence Honours and Awards Appeals Tribunal.
The Defence Honours and Awards Appeals Tribunal is an independent statutory body
established under Part VIIIC of the Defence Act 1903 (the Act) to consider Defence
honours and awards matters. The functions of the Tribunal are to review reviewable
decisions (under section 110V of the Act), and if directed by the Minister (under section
110W of the Act), to hold inquiries into specified matters concerning Defence honours
or awards.
R v David McBride
Former Australian Army legal officer David McBride entered guilty pleas to three
charges on 17 November 2023 in the ACT Supreme Court.
A sentencing hearing is scheduled to take place on 12 March 2024.
Mr McBride was initially charged with five offences (subsequently amended to three
offences) relating to unauthorised disclosure of information, theft of Commonwealth
property, and breaching the Defence Act 1903.
These charges are separate from matters being investigated by the Office of the Special
Investigator.
As the matter is still before the courts, it is not appropriate to comment further.
Leahy Law
The United States has legislative requirements under Leahy Law to ensure funding is
not used for training, equipment or other assistance for a foreign force unit where
there is credible information of gross violations of human rights.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Defence was officially notified by the US Embassy on 12 March 2021 that it could be
subject to Leahy Law due to the findings of the Afghanistan Inquiry report. Between
March 2021 and April 2022, the Chief of the Defence Force informed the then Minister
for Defence of the United States’ notification and Defence’s response.
Assurances were provided to the United States that Defence was implementing the
recommendations resulting from the Afghanistan Inquiry. The matter was closed by the
United States on 17 March 2022.
If pressed: Were any individuals subject to Leahy Law consideration or removed from their
positions?
Defence ensured members of the ADF were not in positions that would enliven Leahy
Law.
No personnel were involuntarily separated from the ADF because of Leahy Law
considerations.
If pressed: Was any training between the Special Forces of the two nations affected?
There has been no discernible change to training between Australia and the United
States because of Leahy Law.
Criminal Investigations
The Office of the Special Investigator and Australian Federal Police are working
together to investigate allegations of criminal offences under Australian law arising
from or related to breaches of the law of armed conflict by ADF members in
Afghanistan between 2005 and 2016.
The Office of the Special Investigator and the Australian Federal Police can investigate
matters, which are beyond those addressed by the Inspector-General of the Australian
Defence Force’s Afghanistan Inquiry, but within the Office of the Special Investigator’s
mandate. Matters subject to investigation are a decision for the Office of the Special
Investigator in conjunction with the Australian Federal Police.
The work undertaken by the Office of the Special Investigator and the Australian
Federal Police is a criminal investigation independent of Defence.
Handling Note: Further questions should be referred to the Office of the Special Investigator
within the Attorney-General’s portfolio.
Defence supports the work of the Office of the Special Investigator through the
provision of records in response to requests for information and subject matter expert
advice to ensure accuracy in the interpretation of Defence-related information.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Afghanistan Inquiry Reform Program
Released on 30 July 2021, the Afghanistan Inquiry Reform Plan set out Defence’s
strategy for responding to the Afghanistan Inquiry.
Work delivered though the Afghanistan Inquiry Reform Program is not limited to, and
goes beyond, addressing Afghanistan Inquiry recommendations. This has enabled
Defence to respond to the broader root causes of the matters identified in the
Afghanistan Inquiry report.
In line with the Deputy Prime Minister’s direction, Defence addressed all Inquiry
recommendations (that could be addressed) by 1 November 2023.
124 of 143 recommendations are now closed.
Of the remaining 19 recommendations, four relating to individuals’ honours and
awards remain on hold pending the outcome of Office of the Special Investigator
investigations and any resultant legal activity.
Work is continuing on the 15 recommendations pertaining to compensation following
formal policy approval from the Government for a new regulation under the Defence
Act 1903 to establish the Afghanistan Inquiry Compensation Scheme. Defence is
working towards its establishment by Quarter One 2024.
Within the broader Afghanistan Inquiry Reform Program, 71 of 72 reform activities are
closed with one remaining on hold pending the outcome of the Office of the Special
Investigator investigations and any resultant legal activity.
The Afghanistan Inquiry Reform Program is due to formally close in February 2024. To
account for its cessation, Defence is preparing a Closure Report, intended for public
release.
Key achievements include:
The revision of several doctrinal publications to incorporate lessons from the
Afghanistan Inquiry and enhance the training received by all ADF members. These
include the Law of Armed Conflict, Ethics, Military Working Dogs and Internment
and Detention doctrine.
Several policies have been implemented to provide greater controls over
deployed forces, and better support and increased accountability for deployed
commanders. These include an enhanced respite policy, clear ‘throwdowns’
policy, policy on the management of deployed commanders and embedded
persons, and ‘Appointment to Command’ certificates to provide greater clarity of
expectations to commanders.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
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Response Task Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Development of a comprehensive system for the improved management of
allegations of prescribed operational incidents, leading to enhanced awareness of
and access to alternative reporting mechanisms beyond the chain of command.
Improved data management practices to better control and use data to detect
anomalies in operational reports and manage deployed personnel.
Afghanistan Inquiry Implementation Oversight Panel Final Report
The independent Afghanistan Inquiry Implementation Oversight Panel (the Panel) was
appointed on 12 November 2020.
It consisted of: Dr Vivienne Thom AM, Professor Rufus Black, and Mr Robert Cornall AO.
The Panel’s role was to assure the Minister for Defence of the effectiveness and
thoroughness of Defence’s response to the Afghanistan Inquiry Report.
The Panel provided its final report to the Deputy Prime Minister on
8 November 2023, prior to conclusion of its tenure on 9 November 2023.
The final report is under consideration by the Deputy Prime Minister.
Heston Russell matters
If pressed: Did Defence support Heston Russell in his defamation proceedings against the
ABC?
Justice Lee made a decision on 16 October 2023 regarding the defamation claim
brought by Heston Russell against the ABC and a number of named journalists, finding
in favour of Mr Russell and ordering the ABC to pay $390,000 compensatory damages
plus interest.
As this matter was a civil defamation case brought by Mr Russell, and the
Commonwealth was not a party to the proceedings, it is inappropriate to comment on
the specifics.
If pressed: About Heston Russell’s call for a ‘Veterans Protection Act’ legislating Protected
Identity status to veterans accused of crimes?
The DPM responded to the petition on 13 December 2023.
Defence Protected Identity status is a Defence policy afforded to some current serving
ADF members.
Current and former serving ADF personnel affected by the Afghanistan Inquiry continue
to be supported by their chain of command, a range of welfare support services, or
through the Afghanistan Inquiry Legal Assistance Scheme.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
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Response Task Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
If pressed: Are former ADF members afforded Protected Identity status?
Defence Protected Identity status, also known as PID status, is a Defence policy
afforded to some current serving ADF members. It is not based on specific legislation
but the policy is set out in the Defence Security Principles Framework.
Protected Identity status is to protect current sensitive Defence capabilities and effects,
our operations, the partners we operate with, as well as to safeguard the security of
individuals and their families.
Defence Protected Identity status applies to current serving members of Special
Operations Command and Special Forces qualified members who are likely to return to
a position within Special Operations Command. Once personnel fall outside these
categories, they no longer hold Defence Protected Identity status.
Personnel within Special Operations Command who hold public facing positions are not
afforded Defence Protected Identity status. Former members of the ADF are not
covered by Protected Identity status.
Supporting Information
Questions on Notice
Budget Estimates: 24 October 2023
QoN No. 58, ABC alleged war crimes of Heston Russell, Senator Malcolm Roberts
(Pauline Hanson’s One Nation Party, Queensland) asked if Defence clarified to the ABC
that former November Platoon member Heston Russell was not in Afghanistan at the
time the ABC alleged war crimes had occurred, and if Defence accepts defamation is a
law.
QoN No. 59, Protocol for cancellation of individual honours and awards, Senator
Malcolm Roberts (Pauline Hanson’s One Nation Party, Queensland) asked a series of
questions about procedural fairness in relation to Defence honours and awards as well
as the functions of the Defence Honours and Awards Appeals Tribunal.
QoN no. 74, Activity by Commander of Joint Task Force 633 14 January 2011 and 17
January 2011, Senator Jacqui Lambie (The Jacqui Lambie Network, Tasmania) asked
about then Major General Angus Campbell’s visits to Afghanistan as Commander Joint
Task Force 633 in 2011.
QoN no. 76, Chief of the Defence Force award of the Distinguished Service Cross,
Senator Jacqui Lambie (The Jacqui Lambie Network, Tasmania) asked about the Chief of
the Defence Force General Angus Campbell’s Distinguished Service Cross and the
Defence honours and awards decision-making process.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
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s22
Response Task Force
Phone:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
QoN no. 179, Allegations of war crimes, Senator David Shoebridge (The Australian
Greens, New South Wales) asked if General Campbell was aware of reports of
allegations of war crimes during his tenure as Commander Joint Task Force 633.
Freedom of Information (FOI) Requests
Multiple requests have been received from media organisations and individuals seeking
access to the Chief of the Defence Force’s command accountability considerations for
subject individuals, and for information relating to the Chief of the Defence Force’s
offer to return his distinguished service cross. P
Partially redacted ministerial submissions
were released relating to command accountability. No documents were found relating
to the Chief of the Defence Force’s offer to return his distinguished service cross.
Multiple requests have been received from individuals seeking specific access to
operational documents relating to specific incidents in Afghanistan. N
No documents
have been released.
In June 2023 multiple requests from media organisations and individuals sought access
to correspondence and briefings relating to the United States Leahy Law. R
Redacted
copies of ministerial briefings were provided, copies of correspondence between the
United States Embassy and the Chief of the Defence Force were not. Documents were
released in early August 2023.
Multiple requests have been received from media organisations seeking access to the
Afghanistan Inquiry Implementation Oversight Panel’s quarterly reports. P
Partially
redacted information has been released. In December 2023, requests were received
from an individual for the Afghanistan Inquiry Implementation Oversight Panel’s final
report and all correspondence between Defence and the Afghanistan Inquiry
Implementation Oversight Panel. A
A decision is pending.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
There continues to be significant media interest in the progression of the first war
crime charge. Recent reporting included The Australian and The Canberra Times (dated
29 January 2024) regarding the charged individual’s bail hearing.
Division: Afghanistan Inquiry Response Task Force
PDR No:
SB23-001098
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
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s22
Response Task Force
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Prepared by:
Cleared by Division Head:
Rear Admiral Brett Wolski
Rear Admiral Brett Wolski
Head Afghanistan Inquiry Response Task
Head Afghanistan Inquiry Response Task
Force
Force
Afghanistan Inquiry Response Task Force
Afghanistan Inquiry Response Task Force
Mob:
s22
Ph:
s47E(d)
s47E(d)
Mob:
s22
Ph:
s47E(d)
s47E(d)
Date: 15 December 2023
Date: 15 December 2023
Consultation: Chief Counsel, Adrian D’Amico.
Cleared by CFO / DPG / DSR: N/A
Cleared by Associate Secretary:
Matt Yannopoulos PSM
Date: 19 December 2023
Associate Secretary
Associate Secretary Group
Questions on notice referred to within the brief:
Supplementary Budget Estimates
Senator Malcolm Roberts
Question Number: 58
Date question was tabled: Yet to be tabled.
Question
1. Did Defence provide any clarification to the Australian Broadcasting Corporation (ABC) in
relation to the fact that Heston Russell as a part of November platoon was not in
Afghanistan at the time that the ABC alleged war crimes had been committed?
2. In estimates hearings Defence maintained that they have an interest in the law being
upheld. Does Defence accept that defamation is a law?
Answer
Yet to be tabled.
Senator Malcolm Roberts
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Question Number: 59
Date question was tabled: Yet to be tabled.
Question
1. In relation to the review of honours and awards the Brereton Report (p.174) states
that the cancellation of individual decorations is “likely to require procedural fairness
in each individual case”. Provide what specific protocols in regards to procedural
fairness have been in put in place or recommended by General Campbell to the
defence minister in relation to the stripping of awards.
2. The appropriate place for the review of honours and awards affording procedural
fairness is a Defence Honours and Awards Appeals Tribunal review which can be
ordered under Section 110W Defence Act 1903. Has General Campbell recommended
this review to Government?
3. Why has Defence not engaged the Defence Honours and Awards Appeals Tribunal in
relation to its current recommendations for removing awards?
4.
Did Defence make any recommendations to government involving the Defence
Honours and Awards Appeals Tribunal in relation to the previously proposed stripping
of the Meritorious Unit Citation?
Answer
Yet to be tabled.
Senator Jacqui Lambie
Question Number: 74
Date question was tabled: Yet to be tabled.
Question
1. During his tenure as the Commander of Joint Task Force 633 from the 14 January
2011 to the 17 January 2011 then Major General CAMPBELL made 34 visits totalling
112 days from the Al Minhad base in the United Arab Emirates to Afghanistan. On
how many occasions during that period was he engaged in “acts in the course of
armed combat or actual operations against an enemy” and if any, where, when and
what were they? Which units was he with?
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
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/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
2. On how many occasions during that period (14/01/2011 – 17/01/2012) was then
Major General CAMPBELL “physically present in a specific action involving direct
conflict between opposing forces ...” and, if any, where, when and what were they.
Which units was he with?
Answer
Yet to be tabled.
Senator Jacqui Lambie
Question Number: 76
Date question was tabled: 15 December 2023
Question
If General CAMPBELL accepts that he was never “in action” and, therefore, he was unlawfully
awarded the DSC, couldn’t he write to the Minister for Defence advising the Minister of that
and recommend that the Minister write to the Governor-General recommending that
General CAMPBELL’s DSC be revoked?
Answer
Award recipients are not involved in the nomination or decision-making process. The onus is
not on the award recipient to assess the merits or validity of its awarding.
Senator David Shoebridge
Question Number: 179
Date question was tabled: 15 December 2023.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001098
Last updated: 31 January 2024
IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Question
Senator SHOEBRIDGE: So, General, during your time as commander of Joint Taskforce 633,
were you aware of reports of possible war crimes occurring in your command?
Gen. Campbell: I was aware that on occasions allegations were raised, unsubstantiated,
across the Afghan theatre. I do not have specific memory of within the Australian area of
operation, but I'll accept that, as much as elsewhere, it was a feature of the operating
environment.
Senator SHOEBRIDGE: And you'll no doubt reply on notice as to what response you made,
given your command role, to the allegations of war crimes—
Gen. Campbell: Senator, I'm—
Senator SHOEBRIDGE: So, no response.
Gen. Campbell: I'm saying that I'm aware allegations are made. I'm not saying that they were
made to me. I don't have an awareness now, 12 years later. If that is the case, and if the
records show that allegations were made to me, then I'll be able to respond to you, taking
your question on notice. If allegations aren't raised to me then I won't be able to respond to
you because there won't have been an allegation raised to me.
Senator SHOEBRIDGE: You see, allegations of war crimes stick in your mind—I would hope.
Answer
Justice Brereton identified credible information regarding allegations of unlawful
killings by Australian military personnel in the Afghanistan theatre between 2005 and
2016 in his Afghanistan Inquiry Report delivered in November 2020.
Records indicate during the period 14 January 2011 to 17 January 2012,
Headquarters 633 was made aware of the following allegations:
− a detainee was bitten by a dog at point of capture;
− a detainee may have been potentially mishandled; and
− mishandling of human remains.
All allegations were investigated and none were substantiated.
Prepared By:
Cleared By:
Name: Rear Admiral Brett Wolski
Name: Rear Admiral Brett Wolski
Position: Head Afghanistan Inquiry Response Task
Position: Head Afghanistan Inquiry
Force
Response Task Force
Division: Afghanistan Inquiry Response Task Force
Group/Service: Afghanistan Inquiry Return to Index
Phone:
s47E(d)
/
s22
Response Task Force
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
Royal Commission into Defence and Veteran Suicide
Handling Note:
Deputy Secretary Defence People, Justine Greig, to lead.
Surgeon General of the ADF, Rear Admiral Sonya Bennett, to support on matters
regarding mental health and suicide in the ADF.
Head of Royal Commission Defence and Veteran Suicide Taskforce, Air Vice-Marshal
Barbara Courtney, to support on matters regarding Defence’s engagement with the
Royal Commission.
Key Messages
The Royal Commission into Defence and Veteran Suicide (the Royal Commission) is an
opportunity to learn and strengthen our approach to supporting the wellbeing of ADF
personnel.
Defence remains committed to supporting the Royal Commission as they continue
their important work.
Defence thanks ADF members and their families who have told their stories to the
Royal Commission. Their lived experience helps us determine how we can improve
support to members and their families in the future.
Defence and the Department of Veterans’ Affairs have implemented the
recommendations of the Interim Report of the Royal Commission that are their joint
responsibilities (Recommendations 9 to 13).
The health and wellbeing of all Defence personnel is a priority. The wellbeing of the
Defence personnel directly engaged with the Royal Commission is a particular focus.
Talking Points
Defence’s support to the Royal Commission
Defence has a dedicated Royal Commission into Defence and Veteran Suicide Taskforce
(the Taskforce) with experienced staff. They provide a broad range of support across
legal, information management, policy, governance and coordination, communications,
wellbeing, planning, and Group and Service liaison functions.
The Taskforce delivers two key functions:
responding to the high volume of complex requests from the Royal Commission;
and
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
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Suicide Taskforce
Phone:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
assisting Defence personnel, especially Commonwealth witnesses, to appear
before the Royal Commission with legal, administrative and wellbeing support.
The Taskforce also provides information to the broader Defence community (ADF, APS,
contractors and families of serving members) on how to engage with the Royal
Commission and access wellbeing support.
Defence engages regularly with the Royal Commission to provide information and
documents in a timely manner, in accordance with the Royal Commission’s requests.
Defence has provided over 177,000 documents (3 million pages), facilitated 27 base
visits and provided over 110 official Defence witnesses to assist the Royal Commission
in their examination of this complex topic.
Defence or its officials have provided over 3,500 written responses to questions.
If pressed: Does Defence support the Royal Commission’s proposal to create an enduring
entity to monitor the implementation of their recommendations?
Defence contributed to the whole-of-government response to the Royal Commission’s
consultation paper regarding the proposed new entity.
It would be inappropriate for Defence to form a view on whether or not a new entity
should be recommended.
If pressed: What support services are being offered to Defence personnel?
Support services are widely available through local Garrison Health Centres, the All
Hours ADF support line, the Defence Family Helpline, the Employee Assistance Program
(for Reserves and APS employees) and ADF Chaplaincy services.
The Royal Commission also provides counselling and support services for those who
engage with them, including before, during and after a person participates in a hearing
or private session.
Royal Commission into Defence and Veteran Suicide Interim Report
If pressed: How did Defence respond to recommendations 9 to 13 of the Royal Commission’s
Interim Report?
Defence, in partnership with the Department of Veterans’ Affairs, has implemented
joint recommendations 9 to 13. The Minister for Veterans’ Affairs and the Minister for
Defence Personnel has informed the Royal Commission on the status of the
implementation of the Interim Report recommendations.
Recommendations 9 to 13 cover a range of initiatives to help improve access to
information for current and former serving ADF members and their families.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
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Suicide Taskforce
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
The Government’s response to Recommendations 9 to 13 was informed by a
comprehensive co-design process conducted in 2022 with members of the
Defence and veteran community.
These initiatives are aligned across Defence and the Department of Veterans’
Affairs to ensure applicants have a consistent experience when accessing
information.
An Information Access Unit was established in each department. These dedicated
teams are a single point of contact and source of advice for applicants requesting
information.
Guidelines on information access mechanisms were published by both
departments to make it easier to understand how to seek records and to explain
how redactions may be applied to these.
Both departments’ websites were revised and simplified to make content easier
to find, including the supporting education material on information access.
These improvements have ensured applicants have a better understanding of the
information access process and the support available to them.
Both departments continue to embed trauma-informed practice principles and training,
which will remain a key focus.
Background
Financial Implications for Defence
The Taskforce to support the functions of the Royal Commission is funded from within
the existing Defence resources.
ADF Suicide Rates
The Defence Suicide Database, which records the deaths of current serving members,
has recorded 168 full-time serving ADF members who are suspected or confirmed to
have died by suicide, including nine women, between 1 January 2000 and
1 December 2023.
As at 1 December 2023 there have been four suspected deaths by suicide of full-time
serving ADF members in 2023. There were 10 suspected deaths by suicide of full-time
serving ADF members in 2022.
The Australian Institute of Health and Welfare report,
Serving and ex-serving Australian
Defence Force members who have served since 1985: suicide monitoring 1997 to 2021,
shows that in comparison to the Australian population, the age-adjusted rate of suicide
from 1997–2021 was:
49 per cent lower for full-time serving males;
45 per cent lower for Reservist males;
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
s22
Suicide Taskforce
Phone:
s47E(d)
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
26 per cent higher for ex-serving males; and
107 per cent (two times more likely) higher for ex-serving females.
Due to the small number of suicide deaths among females in permanent
and Reserve service, suicide rates are not reported for these subgroups.
Of the sub-populations studied in this report, the male involuntary medical separation
cohort has the highest rate of death by suicide. Compared with the Australian male
population, suicide rates between 2003 and 2021 for ex-serving males were:
similar to those who separated for voluntary reasons with no statistically
significant difference found.
54 per cent higher for those who separated for other involuntary reasons.
178 per cent higher (or 2.78 times) for those who separated for involuntary
medical reasons.
similar to those who separated for contractual or administrative reasons, with no
statistically significant difference found.
Between 2003 and 2021 the suicide rates for ex-serving females by reason for
separation were statistically similar for voluntary separation, involuntary medical
separation and other involuntary separation.
Details of the Royal Commission into Defence and Veteran Suicide
On 8 July 2021 the Governor-General established the Royal Commission.
Mr Nick Kaldas APM (Chair), the Hon James Douglas QC and Dr Peggy Brown AO were
appointed as Commissioners.
There have been 11 public hearings since November 2021 held in Brisbane, Sydney
(twice), Canberra, Townsville, Hobart, Darwin, Wagga Wagga, Perth, Adelaide and
Melbourne. Hearing Block 12 will be held in Sydney from 4 - 27 March 2024. Senior
Defence leaders and Commonwealth Ministers are expected to attend.
The hearings have focused on a range of topics including accountability, culture,
stigma, deployments, welfare, support to families, medical care, recruitment and
discharge.
The Royal Commission published an interim report on 11 August 2022 which the
Government responded to on 26 September 2022.
The Royal Commission published a consultation paper on 15 November 2023 proposing
a new entity be established to oversee the Commonwealth’s implementation of their
final report recommendations. The Royal Commission is considering recommending
such an entity which will also continue to oversee Defence and the Department of
Veteran’s Affairs, with an aim to improve the wellbeing of Defence members, veterans
and their families.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
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Suicide Taskforce
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
Following a request from the Royal Commissioners, the Government agreed to a three-
month extension to complete its inquiries. The final report is due on 9 September 2024.
The Royal Commission is independent of both Defence and the Department of
Veteran’s Affairs, and is administered by the Attorney-General’s Department.
Questions on Notice
Parliamentary Questions on Notice
On 29 August 2023 Parliamentary QoN 2380, Senator Jacquie Lambie (Jacqui Lambie
Network,Tasmania), asked for Defence staffing information and costs relating to the
Royal Commission into Defence and Veteran Suicide.
On 23 September 2022 P
Parliamentary QoN 623, Senator the Hon Michaelia Cash
(Liberal Party of Australia, Western Australia), asked for details on an AusTender
contract notice that related to costs associated with the Defence support to Hearing
Block 5 in Townsville.
Freedom of Information (FOI) Requests
On 15 October 2022 a media organisation sought access for ‘All briefing documents
provided by Air Vice-Marshal Barbara Courtney AM, Head Royal Commission Defence
and Veteran Suicide Taskforce to Minister of Defence and/or Minister of Veterans
Affairs, regarding defence and veteran suicides’. D
Documents were released on
2 December 2022.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 8 December 2023 The Mandarin reported on the Government’s decision to grant
the Royal Commission a three month extension in an article by Mellisa Coade titled
Royal Commission into Defence and Veteran Suicide given three more months to get
job done. The article included comments from Commissioner Kaldas and quotes from
Julie-Ann Finney’s petition to extend the Royal Commission.
Division:
Royal Commission into Defence and Veteran Suicide Taskforce
PDR No:
SB23-001099
Prepared by:
Cleared by Division Head:
Air Vice-Marshal Barbara Courtney
Air Vice-Marshal Barbara Courtney
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
s22
Suicide Taskforce
Phone:
s47E(d)
/
s22
Page 5
5 of 7
7
OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
Head of Royal Commission into Defence and Head of Royal Commission into Defence and
Veteran Suicide Taskforce
Veteran Suicide Taskforce
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 12 December 2023
Date: 12 December 2023
Consultation: N/A
Cleared by Deputy Secretary:
Justine Greig PSM
Date: 19 December 2023
Deputy Secretary
Defence People Group
Questions on notice referred to within the brief:
Parliamentary Question on Notice
Senator Jacquie Lambie
Question Number: 2380
Date question was tabled: 17 November 2023
Question
1. How many APS lawyers employed by the Department of Defence were assigned to the
Royal Commission into Defence and Veteran Suicide from its establishment to 30 June 2023.
2. How many externally engaged lawyers were engaged by the Department of Defence for
the Royal Commission into Defence and Veteran Suicide from its establishment to 30 June
2023.
3. How many non-legal staff employed by the Department of Defence were assigned to the
Royal Commission into Defence and Veteran Suicide from its establishment to 30 June 2023.
4. How many externally engaged non-legal resources were engaged by the Department of
Defence for the Royal Commission into Defence and Veteran Suicide from its establishment
to 30 June 2023.
5. What was the cost for the provision of all the above from the establishment of the Royal
Commission into Defence and Veteran Suicide to 30 June 2023.
Answer
1-4. The table below identifies the workforce within the Taskforce) on 30 June 2022 and
2023.
Q
Position
30 June 2022
30 June 2023
(Headcount)
(Headcount)
1
Australian Public Service lawyers
3
2
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
s22
Suicide Taskforce
Phone:
s47E(d)
/
s22
Page 6
6 of 7
7
OFFICIAL
OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001099
Last updated: 19 December 2023
Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sonya Bennett; Air Vice-Marshal Barbara Courtney
2
Externally engaged lawyers
27
29
3
Non-legal staff
91
87
4
Externally engaged non-legal
41
26
resources
5. The cost of engaging these individuals was $11.8 million in 2021-22and $18.3 million in
2022-23.
Parliamentary Question on Notice
Senator Michaelia Cash
Question Number: 623
Date question was tabled: 3 November 2022
Question
With reference to contract notice CN3884957 published by the Department of Defence on
the AusTender website on 20 June 2022 relating to venue hire:
1. To what event did this venue hire relate, and precisely where was the event held.
2. Can an itemised list of all costs relating to the event be provided.
3. Can a guest list for the event be provided, including, without limitation, details of any
ministers, ministerial staff or APS staff who attended.
4. Can an itemised list be provided for:
a. any food served; and,
b. any beverages served, including the names and vintages of any wines or
champagnes.
5. Were any catering services procured for the purposes of the event, for example waiters,
kitchenhands, or cleaning staff; if so, can full details be provided.
6. Was any entertainment provided at the event; if so, can full details be provided.
7. Was any audio visual equipment or were any services procured for the purposes of the
event; if so, can full details be provided.
8. Were any decorations purchased for the purposes of the event; if so, can an itemised list
be provided.
9. Can any photographs of the event be provided.
10. Can copies of any presentations delivered at the event be provided.
Answer
Please see attachment A.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig PSM
Position: Head of Royal Commission into Defence and Position: Deputy Secretary
Veteran Suicide Taskforce
Group/Service: Defence People Group
Division: Royal Commission into Defence and Veteran Phone:
s47E(d)
/
s22
Suicide Taskforce
Phone:
s47E(d)
/
s22
Page 7
7 of 7
7
OFFICIAL
ent A
ons
ns
ns
on
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A
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Defence FOI 680/23/24
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is not
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by
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is not
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by
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450
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u
Return to Index
st of c
eo
eo
eo
ised li
Item
Miscellan
Catering
Venue hire
AV
Miscellan
Catering
Venue Hire
AV
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Defence FOI 680/23/24
A
A
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Return to Index
–
m
u
u
eo
eo
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ir
wo &Thr
h
ting Roo
ue
en
Venue Hire
Mee
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AV
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A
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$1
$2
sit
o
e
th
Return to Index
ent dep
3 and
5.
under
38
g balance
in
38
per c
78
78
38
38
Venue hire
Catering
Venue hire
Catering
AV
Catering
Venue hire
AV
Venue hire
A 50
was paid
CN
remain
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e
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OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Foreign Manufactured Devices
Handling Note:
Deputy Secretary Security and Estate, Celia Perkins, to lead.
First Assistant Secretary Defence Security, Peter West, to support.
Key Messages
Phase one of Defence’s security audit of supply chains was completed and delivered to
Government in October 2023. Defence is currently proceeding with phase two, which
tests a new Supply Chain Security Policy, accompanied by supporting processes and
tools, through a number of pilot activities.
On 14 April 2023 the Deputy Prime Minister directed Defence undertake a security
audit of its supply chains to ensure Defence does not use devices, products, or
contractors of concern and that its current procurement policies and practices are fit
for purpose. This audit included hardware and software used in supply chains.
On 9 February 2023 the Deputy Prime Minister directed Defence to undertake an
assessment and remove CCTV devices of concern. This was completed by 30 June
2023.
Defence ceased operating all DJI drones in line with the 5 May 2023 Secretary and
Chief of the Defence Force directive.
The inherent cyber vulnerabilities of DJI’s Chinese-made products has been known to
Defence since 2017. Before the May 2023 directive, Defence used DJI products,
including drones and Aeroscope drone detection technology, only after conducting a
cyber-risk assessment and applying risk mitigation.
Talking Points
Supply Chain Security Audit
Phase one of the supply chain audit made recommendations to strengthen supply
chain security, including that a specific Defence Supply Chain Security Policy be
implemented.
Defence is piloting the draft Supply Chain Security Policy, and related procedures, to
assess its suitability and understand the cost and impact of the policy on supply chains
that support and enable Defence capability.
Defence is engaging closely with internal and external stakeholders and other
government agencies to ensure consistent and mutually reinforcing supply chain
security measures are implemented across Government and with international
partners.
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
CCTV Audit
On 9 February 2023 the Deputy Prime Minister directed Defence to undertake an
assessment and remove CCTV devices of concern. Defence conducted a physical audit
of the Defence estate to identify and register all CCTV devices. This audit was
completed on 4 April 2023.
The audit found an additional 435 devices in 59 CCTV systems. None were connected to
Defence networks.
On 30 June 2023 Defence completed the removal of all CCTV devices produced by
manufacturers of concern from the Defence estate.
Defence has reviewed its processes to ensure all future CCTV devices will be updated
into the Garrison Estate Management System.
To prevent future use of CCTV devices of concern, the Defence Chief Security Officer
has issued a directive banning their use without Chief Security Officer approval.
DJI Drones
The ADF has used a variety of commercial off-the-shelf drone products, including some
manufactured by DJI, to train for piloting Multi-Rotor Uncrewed Aerial Systems and to
collect public affairs imagery.
The ADF operated several hundred DJI Phantom Multi-Rotor Uncrewed Aerial Systems
to provide Defence members and employees with basic operations experience and to
increase their understanding of Uncrewed Aerial Systems.
On 9 August 2017 Defence suspended the use of DJI products pending a formal
assessment of the cyber risks presented by these systems. This suspension was lifted
after additional protocols and safeguards were applied, including keeping devices
disconnected from the internet.
Defence ceased operation of all DJI drones per the Secretary and Chief of Defence
Force direction of 5 May 2023.
If pressed: Is the ADF aware the United States Department of Defense has banned the use of
DJI products?
Defence understands DJI products are included in the United States Department of
Commerce ‘entity list’, which identifies entities that may pose a national security threat
to the United States.
Defence is aware of the United States Department of Defense policy to not use DJI
products due to potential security risks.
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Background
Supply Chain Security Audit
On 14 April 2023 the Deputy Prime Minister tasked Defence to undertake an audit to
identify devices or products with potential links to manufacturers of concern.
Phase one of Defence’s security audit of supply chains was completed and delivered to
the Deputy Prime Minister in October 2023. Defence is progressing phase two of the
audit, on which it plans to report in May 2024.
CCTV
Defence commenced removing HIKVISION security cameras in 2018.
On 26 November 2022 Defence analysed its Garrison Estate Management System data
and identified 41 devices from HIKVISION and Dahua remained. These were removed.
A further physical audit identified 2,883 devices not registered in the Garrison Estate
Management System. There are a number of reasons for this, including:
historically, groups and services managed facilities independently;
a number of sites have been added to the Defence Estate since the review was
undertaken; and
the installation of CCTV devices has occurred outside estate management
processes.
The audit produced a complete digital record of all CCTV devices.
Details of replacement and new CCTV systems will be entered into the Garrison Estate
Management System.
The audit, decommission and removal of devices cost $405,363. Procuring and
installing replacement devices cost $1,017,053. This work is complete.
Supporting Information
Questions on Notice
Budget Estimates: 31 May 2023
QoN No. 33, Estate device removal, Senator James Paterson (Liberal, Victoria) asked
about a whole of Government policy for these devices to be removed.
Senate: 30 March 2023
QoN No. 1743, Technology manufactured or sold by DJI, Senator James Paterson
(Liberal, Victoria) asked whether or not the Department uses any technology
manufactured or sold by DJI.
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Senate: 27 February 2023
QoN No. 1466, Hikvision and Dahua Devices, Senator James Paterson (Liberal, Victoria)
asked to be provided with the number of HIKVISION and Dahua devices in use by
Defence.
Senate: 29 November 2022
QoN No. 1089, Hikvision and/or Dahua manufactured devices, Senator James Paterson
(Liberal, Victoria) asked to be provided with the number of HIKVISION and Dahua
devices in use by Defence.
Freedom of Information (FOI) Requests
No requests made.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
There has been limited media reporting on this topic since 2023-24 Budget Estimates.
On 5 July 2023 the ABC News published an article titled DJI drones used widely across
government departments despite defence, Border Force bans. Journalist Jake Evans
reported that DJI drones are held by almost every government department. The
company was blacklisted in the United States over security concerns, and alleged links
to human rights abuses.
On 18 April 2023 Inside Imaging published an article titled DJI's role in Australian
Defence under scrutiny. The article reported on the history of DJI done use in the ADF.
On 17 April 2023 The Australian published an article titled Call for audit as Chinese
drones join ADF war games. Journalist Ellen Whinnett wrote that the ADF were using
Chinese made DJI Drones, which had been blacklisted by the United States citing
concerns about links to the People’s Liberation Army.
On 15 February 2023 The Canberra Times published an in-depth article titled Chinese
'spy cams' operating across 17 Defence sites. Journalist Sarah Basford Canales wrote
that ‘Chinese-linked’ surveillance cameras remained in operation across Defence sites
as recently as December 2022.
Division:
Defence Security Division
PDR No:
SB23-001100
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Prepared by:
Prepared by:
Simon Buckley
Peter West
Assistant Secretary
First Assistant Secretary
Security Policy and Services
Defence Security Division
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 14 December 2023
Date: 14 December 2023
Consultation: N/A
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary:
Celia Perkins
Date: 18 December 2023
Deputy Secretary
Security and Estate Group
Questions on notice referred to within the brief:
Budget Estimates: 31 May 2023
Senator James Paterson
Question Number: 33
Date question was tabled: 31 May 2023
Question
Senator PATERSON: I have some questions about DJI drones if the relevant officials are
available. On 30 March I submitted a question on notice about this, which was due for
response by 1 May but has not been received yet. I wonder if officials have that answer to
hand.
Senator McAllister: Was this through the parliament or through the committee?
Senator PATERSON: It was through the parliament.
Senator McAllister: Sometimes our accounting for these two streams of questioning is
different.
Senator PATERSON: Understood.
Ms Perkins: I can certainly answer questions on DJI drones. I'd start by saying that the way we
manage drones is quite a complex set of different kinds of capabilities. I'll talk from a security
perspective. I don't have visibility of the question on notice that you're referring to but we
will take that on notice for you.
Senator PATERSON: Do you know how many DJI drones Defence is operating?
Ms Perkins: Defence is currently operating no DJI drones.
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Senator PATERSON: That's a good technical answer but how many DJI drones does Defence
have?
Ms Perkins: I don't have a number for you. We could take that on notice. As I said, we would
offer for the committee that we believe there were some hundreds being used for a variety
of uses across Army, Navy, Air Force, the Defence Science and Technology Group and some
of the cadet elements.
Senator PATERSON: If you don't have visibility of the number, who would have visibility of
that?
Ms Perkins: I think what would be best is for us to take that on notice. In my evidence there,
there are currently none. After we looked at the DJI drone issue, the secretary and CDF
issued a directive to seize their operation. We've sent that out. I know that we have looked at
where they are and how they were being managed and we've asked everyone to stop using
them. Because they are a small consumable device, they can be locally purchased and people
have been using them, for instance, in cadet units.
Senator PATERSON: I will look forward to that full detail on notice. But, just quickly, you said
you're not familiar with the question on notice, so it obviously has gone to someone else to
provide the answer. If not you or your team, who would be looking after it?
Ms Perkins: Can we get back to you on that?
Answer
A cease use order has been issued for DJI drones. Prior to this direction, Defence had
acquired approximately 770 DJI Drones.
Senate: 30 March 2023
Senator James Paterson
Question Number: 1743
Date question was tabled: 30 March 2023
Question
1. Does your department, or any agency within your portfolio use any technology
manufactured or sold by DJI, including but not limited to drones, gimbals, cameras or
accessories.
2. If DJI technology is in use, which technology is used, which department or agency uses
them, and how many units do they use.
Answer
The Deputy Prime Minister has directed a supply chain security and resilience audit be
undertaken across Defence. The Department has issued a cease use order on all DJI products.
Senate: 27 February 2023
Senator James Patterson
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Question Number: 1466
Date question was tabled: 27 February 2023
Question
Noting that the Government has confirmed its intention to remove all Hikvision and Dahua
devices from all departmental or agency sites:
a. have all affected departments and agencies within your portfolio commenced
removing or replacing the devices;
b. if yes, when did this activity commence;
c. if no, when will it commence; and
d. when is it expected to be completed.
Answer
The Minister representing the Minister for Defence has provided the following answer
to the Senator’s question:
a. Yes.
b. Initial activity commenced in 2018.
c. N/A.
d. The program to fully remove and replace all items will be completed by 30 June 2023.
Senate: 29 November 2022
Senator James Patterson
Question Number: 1089
Date question was tabled: 29 November 2022
Question
1. Does your department, or any agency within your portfolio currently have any
installed devices at departmental or agency facilities provided or manufactured
by Hikvision or Dahua, including but not limited to security cameras, intercom
systems, or access control systems.
2. If Hikvision or Dahua devices are in use, how many units and at how many sites.
Answer
1. Yes.
2. The Department of Defence is aware of one system at one site. This system is in
the process of being removed.
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001100
Last updated: 14 December 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
3. The Department of Defence is undertaking a comprehensive physical assessment of all
Defence sites by 30 April 2023. Any further devices identified will be removed as a priority.
Prepared By:
Cleared By:
Name: Simon Buckley
Name: Peter West
Position: Assistant Secretary Security Policy and Services
Position: First Assistant Secretary
Division: Defence Security
Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
SAMS Legislation
Handling Note:
Deputy Secretary, Security and Estate Group, Celia Perkins, to lead.
First Assistant Secretary, Defence Security, Peter West, to support.
Key Messages
Defence interests, assets, activities, information and people (including industry and
research partners, service providers and contractors) are targets for Foreign
Intelligence Services in Australia and overseas.
To respond to this threat, Defence has worked with other Commonwealth agencies to
develop the Defence Amendment (Safeguarding Australia’s Military Secrets) Bill, which
was introduced into Parliament on 14 September 2023 by the Deputy Prime Minister.
The Bill will strengthen existing laws that protect Australia’s national secrets.
Defence will continue to cooperate closely with intelligence and law enforcement
agencies to prevent any compromise of Defence information.
Talking Points
Defence takes the threat from Foreign Intelligence Services seriously, and has layered
security policies and procedures in place to protect our personnel, information,
capabilities and assets.
In 2022 there were a number of reports of former military personnel from Australia,
Canada, the United Kingdom and the United States being approached to provide
military training to China.
At the direction of the Deputy Prime Minister, Defence conducted an inquiry into the
adequacy of current policies and controls to prevent this type of training. This review
identified the opportunity to strengthen existing legislation.
As a result of the inquiry, the Government introduced the Defence Amendment
(Safeguarding Australia’s Military Secrets) Bill to strengthen existing laws that
protect Australia’s national secrets.
The Bill will regulate work that former Defence members can perform for, or on behalf
of, foreign military organisations or government entities by introducing a foreign work
authorisation.
The Bill also regulates training conducted by any Australian or permanent resident of
Australia who seeks to share with foreign countries any sensitive Defence information
related to the export of controlled technologies and military tactics, techniques and
procedures.
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
Who will the Defence Amendment (Safeguarding Australia’s Military Secrets) Bill impact?
If passed, the Bill will apply to former ADF members, former APS employees of Defence
and the Australian Submarine Agency, and members of the ADF Reserves who render
continuous full-time service.
Under the Bill, contractors and consultants are not considered ‘Defence staff
members’.
The Bill would also extend to any Australian citizen or permanent resident, including
contractors and consultants, providing training on certain controlled items, or on
military tactics, techniques or procedures, to a foreign military or foreign government.
Defence industry and contractors would not be affected if the training is part of a
contract with the Commonwealth or an approved export.
If pressed: Will veterans still be able to work overseas?
The Bill does not intend to prevent veterans from working overseas and they will
continue to be supported when seeking overseas job opportunities when they leave
the ADF.
If pressed: What will the application process be?
Details of the application process for a foreign work authorisation are being finalised
and will be released soon.
The complexity of each application will depend on an individual’s circumstances and
the work they are seeking to undertake.
If pressed: Has Defence consulted during the development of the Defence Amendment
(Safeguarding Australia’s Military Secrets) Bill?
Defence developed the Bill in consultation with other Commonwealth departments,
veteran groups, unions and industry groups.
On 14 September 2023 the Bill was referred to the Parliamentary Joint Committee on
Intelligence and Security for inquiry and report.
Submissions to the Parliamentary Joint Committee on Intelligence and Security closed
on 16 November 2023. The Committee received 10 submissions, including one from
Defence.
Defence has also attended briefings with the Parliamentary Joint Committee on
Intelligence and Security on matters associated with the Bill.
If pressed: What did the Defence inquiry find?
Defence cannot comment in detail on the recommendations of the inquiry report due
to its classification. However, in addition to amending the Defence Act 1903, the
enquiry made eight recommendations related to:
strengthening internal Defence training and employment security policies;
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Additional Estimates February 2024
PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
expanding outreach with the veteran community to ensure awareness of
enduring obligations; and
establishing channels for former Defence personnel to report security incidents
or seek personal security advice.
All of the eight recommendations have been actioned by Defence and closed.
If pressed: How does Defence protect against the Foreign Intelligence Service threat?
Defence has layered security policies and procedures to protect its personnel,
information, capabilities and assets from Foreign Intelligence Services’ collection
activities.
Defence is working with national security agencies to provide information on this threat
to Defence personnel, and encourages both current and former Defence members to
report any contact of concern.
If pressed: How will this Bill impact former Defence members’ employment opportunities?
Defence is not seeking to prevent former Defence personnel from undertaking
overseas employment. The focus of the Bill is to prevent individuals from unwittingly or
deliberately engaging in activities that would harm Australia’s national security.
Defence does not track the employment of former Defence personnel. Defence
understands that a significant portion of former Defence personnel that work overseas
are in roles working for a Five-Eyes country or a foreign entity engaged under an
Australian Government contract. These individuals would be exempt from this Bill.
It is expected that the broader benefits from AUKUS export control reforms, of which
this Bill is part, will create new employment opportunities for former Defence
personnel, exempt from the foreign work authorisation process.
Defence recognises the potential impact on employment for individuals requiring
authorisation under this Bill and will seek to process foreign work authorisation
requests as quickly as possible.
Defence will continue to monitor the impact of the Bill and will provide
recommendations to Government of any adjustments to the legislative instruments as
necessary.
If pressed: How will universities be impacted by this legislation?
The Bill has provisions that would apply to all Australians and permanent residents
wishing to provide training to a foreign military or government in relation to items on
the Defence and Strategic Goods List: Part 1 (Munitions List) or military tactics,
techniques and procedures.
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Additional Estimates February 2024
PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
Background
Defence Inquiry Recommendations
After investigating the adequacy of controls on providing certain assistance to foreign
militaries, on 14 December 2022 Defence provided its findings to the Deputy Prime
Minister. All recommendations were endorsed and Defence was directed to implement
the recommendations as a priority.
On 23 October 2023 Defence provided the Deputy Prime Minister’s Office with a final
report on its implementation of the inquiry recommendations.
Timeline
16 November 2023
Public submissions close for the Parliamentary Joint Committee on
Intelligence and Security review of the Bill.
30 September 2023 Implementation of the inquiry recommendations are formally closed.
14 September 2023 The Deputy Prime Minister introduced the Defence Amendment
(Safeguarding Australia’s Military Secrets) Bill to Parliament.
14 December 2022
Defence provided its inquiry report to the Office of the Deputy Prime
Minister.
19 October 2022
The Deputy Prime Minister directed Defence to investigate claims
former ADF personnel may have been approached to provide military
training to foreign agencies.
Supporting Information
Questions on Notice
Senate: 11 April 2023
QoN No. 1897, Senator David Shoebridge (Greens, New South Wales) asked for
information regarding personnel training other countries.
2022-23 Supplementary Budget Estimates: 9 November 2022
QoN No. 4, Question on Notice No. 4, Senator James Paterson (Liberal, Victoria) asked
when Defence became aware of issues with ex-ADF personnel training.
Freedom of Information (FOI) Requests
On 18 August 2023 the Office of the Information Commissioner notified Defence that
lawyers acting on behalf of an individual have applied for an external review for access
to the report commissioned by the Deputy Prime Minister in November 2022 into the
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
adequacy of policies and procedures concerning the employment of former ADF
personnel. D
Decision pending.
On 24 February 2023 lawyers acting on behalf of an individual sought access to a copy
of the report commissioned by the Deputy Prime Minister in November 2022 into the
adequacy of its policies and procedures concerning the employment of former ADF
personnel. A
Access to the documentation was denied.
On 15 February 2023 lawyers acting on behalf of an individual sought access to all
documents pertaining to the request for information or assistance made by the United
States to Australia on 23 June 2016 in relation to former United States marine,
Mr Daniel Edmund Duggan, to which Australia responded on 14 March 2018. A
Access to
the documentation was denied under Section 7(2A)(a)(vi) of the Freedom of
Information Act 1982, as documents requested were considered exempt intelligence
agency documents.
Recent Ministerial Comments
On 14 September 2023 the Deputy Prime Minister introduced the Defence
Amendment (Safeguarding Australia’s Military Secrets) Bill 2023.
Relevant Media Reporting
On 13 and 14 September 2023 The Age, The Australian Financial Review, Nine News,
The Australian, The Sydney Morning Herald, and The Saturday Paper reported on
legislation to be introduced into parliament by the Deputy Prime Minister.
On 12 September 2023, The West Australian and Kyabram Free Press reported on
amendments to national security laws to be introduced to parliament on
14 September 2023.
On 11 September 2023, in an article for The Australian, Ellen Whinnett reported that
Mr Duggan wanted to find out why he was initially deemed an “extreme high-risk
restricted” prisoner.
On 31 July 2023, in an article for The Australian, Ellen Whinnett reported that the
Office of the Inspector-General of Intelligence and Security was investigating
interactions between the Australian Security Intelligence Organisation and Mr Duggan,
and whether Australian and United States intelligence agencies had known for over a
decade that Mr Duggan was training Chinese pilots.
On 25 July 2023 The Blayney Chronicle reported that Mr Duggan would fight
extradition to the United States extradition bid.
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
Division:
Defence Security Division
PDR No:
SB23-001101
Prepared by:
Cleared by Division Head:
Simon Buckley, Assistant Secretary
Peter West, First Assistant Secretary
Security Policy and Services
Defence Security Division
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Date: 7 December 2023
Date: 7 December 2023
Cleared by Deputy Secretary:
Celia Perkins
Date: 11 December 2023
Deputy Secretary
Security and Estate Group
Questions on notice referred to within the brief:
Senate: 11 April 2023
Senator David Shoebridge
Question Number: 1897
Date question was tabled: 19 June 2023
Question
With reference to former ADF personnel training other countries:
1. Are there any rules in place regarding former defence personnel and the nature of work
they can undertake, including who/which countries they may work for, particularly in relation
to using the skills and training they gained through their service.
2. In November 2022, the Minister for Defence instructed the Department of Defence to
examine the adequacy of current Defence policies and procedures relating to former defence
personnel providing military-related training to China:
a. what is the status of this investigation; what is the timeline for reporting and will the
findings be made public; and
b. have any steps been taken to strengthen policy and legislative measures in relation to
regulation around former defence personnel following those revelations.
3. Is there currently any way of tracking the whereabouts of former defence personnel,
including whether or not they are working for foreign governments or entities, including on a
contract basis.
4. Are there any rules or laws currently in place in Australia that would prevent former
defence personnel from working for countries that are known to abuse human rights.
5. Are there any rules or laws currently in place in Australia that would prevent a former
Australian air-force fighter pilot from taking a consultancy job training fighter pilots in Saudi
Arabia.
6. Have any current or former ADF pilots trained military personnel in Saudi Arabia; if so,
when and how many.
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
Answer
1. Yes. Former Defence personnel continue to be bound by ongoing obligations of secrecy
and confidentiality which may limit the scope of post-separation work.
2a. Defence provided the classified Inquiry Report to the Deputy Prime Minister on
14 December 2022. As the Inquiry Report is classified, it will not be released.
2b. Yes. Defence is implementing the Inquiry recommendations. This includes strengthening
internal Defence policies and developing legislation to enhance safeguards around sensitive
Defence information.
3. Defence does not track former personnel. Former Defence employees are required to
understand and comply with their enduring obligations to maintain our nation’s secrets
beyond their employment with Defence.
4. No. See answer to question 1.5. Australian laws that limit the scope of such work include:
Section 83.3 Criminal Code (Provision of Military Style Training involving Foreign Government
Principal); Section 119.4 Criminal Code (Preparations for Incursions into Foreign Countries for
Purpose of Engaging in Hostile Activities) and Sections 122.2-122.4 Criminal Code (Secrecy of
Information).
6. See answer to question 3
2022-23 Supplementary Budget Estimates: 9 November 2022
Senator James Peterson
Question Number: 4
Date question was tabled: 16 December 2022
Question
CHAIR: Has the department been made aware from allies or other countries of this
behaviour?
Mr West: We are aware of the press reporting out of the UK and the fact that they have
highlighted these security risks, but it wouldn't be appropriate to comment on the details of
the investigation and any cooperation with allies.
CHAIR: But you are aware, okay. And was this something that the department was made
aware of before it made it to the media?
Ms Perkins: Yes, Chair.
Senator PATERSON: I acknowledge the Deputy Prime Minister's statement this morning and
the sensitivity of these issues. I also acknowledge that the opposition has been offered a
briefing on this, and I'm appreciative of that, on behalf of opposition members. But I do just
want to ask some follow-up questions, given the chair has opened up this issue for
questioning, and I'm grateful that you've been candid in your responses to him. Just on that
last question that you answered from him, to be clear, the department was aware of this
issue before the press reports in the Australian?
Ms Perkins: Yes, Senator.
Senator PATERSON: When did the department first hear about this issue?
Ms Perkins: I might take that on notice, Senator, both to be precise but also to engage with
other security agencies on how much they're prepared to share.
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001101
Last updated: 7 December 2023
SAMS Legislation
Key witnesses: Celia Perkins, Peter West
Answer
Defence first became aware of this issue as a result of a security report submitted on
29 June 2021.
Prepared By:
Cleared By:
Simon Buckley
Peter West
Assistant Secretary Security Policy and Services
First Assistant Secretary, Defence Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
myClearance Remediation
Handling Note:
Deputy Secretary Security and Estate, Celia Perkins, to lead.
First Assistant Secretary Defence Security, Peter West, to support.
Key Messages
The Australian Government Security Vetting Agency (AGSVA) is the
whole-of-government security clearance provider, and conducts security vetting on
behalf of more than 1,000 agencies across the Commonwealth, state and territory
governments and industry.
myClearance is a digital vetting capability delivered in November 2022 to provide a
more secure, automated and streamlined vetting process able to meet increasing
security clearance demand from across government, Defence and defence industry.
During implementation, some issues arose which caused delays to vetting.
Defence has now largely resolved the issues with myClearance and the system is
processing a record number of clearances.
AGSVA is focused on optimising the myClearance system to meet future vetting
demand and ensuring vetting benchmarks are consistently met at all clearance levels.
The Australian National Audit Office is undertaking an audit into Defence’s
procurement and implementation of the myClearance system. The Australian National
Audit Office has advised the interim report is expected to be delivered to Defence in
January 2024, with tabling due in April 2024.
Talking Points
During the myClearance implementation, technical issues emerged which caused
interruptions and delays to vetting processes.
Following nine major stabilisation updates and over 37 minor system hotfixes, system
issues are now largely resolved.
AGSVA modelling predicts all clearance levels will be delivered within vetting timeframe
benchmarks by Quarter 2 of 2024.
Defence continues to use a prioritisation process to ensure AGSVA can finalise
clearances for staff performing critical roles as a priority.
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
How many clearances have been progressed under the new system?
Between 28 November 2022 and 5 December 2023 AGSVA finalised 79,885 clearances
in myClearance.
What impact have myClearance issues had on vetting timelines?
Current clearance timeframes are:
Key Performance
2023-24 as at
Days over
Clearance level
Indicator
5 December 2023
Benchmark
Baseline
20 days
22 days
+2
Negative Vetting Level 1
70 days
82 days
+12
Negative Vetting Level 2
100 days
118 days
+18
Positive Vetting
180 days
167 days
-13
Why did the project have issues
Defence Audit Branch reviewed myClearance implementation in July 2023, identifying
inadequate governance and oversight, multiple lines of reporting that lacked a single
point of truth, and a go-live decision process that was not well-supported. The audit
made three classified recommendations, which have been actioned under a formal
Management Response Action Plan.
In March 2023 an independent review of myClearance remediation was completed by
Stephen Merchant (former Deputy Secretary) to ensure remediation activities were
appropriately targeted and supported. This review made 10 recommendations, all of
which were implemented by Defence.
Did the problems with myClearance put personal information at risk?
No. The issues with myClearance do not relate to the security aspects of the
information on the system.
myClearance uses Two-Factor Authentication, substantially uplifting security from the
previous vetting system.
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
What is the cost of myClearance?
The budget for the myClearance project was $307.3 million. This included:
$123.9 million for acquisition;
$14.7 million in contingency; and
$168.6 million for sustainment.
What will be the cost of fixing myClearance?
myClearance remediation work has been conducted as part of the project warranty
phase using existing project funding.
Are myClearance delays impacting the Australian Signals Directorate REDSPICE program?
AGSVA has a Memorandum of Understanding with the Australian Signals Directorate to
track and prioritise processing of REDSPICE clearances.
Some REDSPICE-related clearance applicants have experienced delays in gaining their
clearances due to myClearance issues, but AGSVA continues to work with the
Australian Signals Directorate to prioritise these cases.
For REDSPICE Baseline, Negative Vetting Level 1 and Positive Vetting clearance levels,
AGSVA is currently meeting benchmark timeframe targets.
Background
AGSVA’s vetting system and work processes were no longer fit-for-purpose and
required modernisation to meet both growth in demand and the increasingly complex
security threat environment.
The Vetting Transformation Project delivered a new core vetting system transforming
how AGSVA delivers security vetting services through a contemporary vetting process
enabled by a modern digital, integrated and scalable ICT system called myClearance.
The myClearance system launched on 28 November 2022.
Following the launch of the new system, in mid-December 2022, AGSVA identified
issues with the transfer of cases to the Australian Security Intelligence Organisation and
problems with the data transferred to myClearance. As a result of these issues, the
Australian Security Intelligence Organisation’s case processing slowed significantly, and
users experienced difficulties logging into myClearance, or had problems with the
accuracy of their data.
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
Supporting Information
Questions on Notice
Budget Estimates: 15 February 2023
QoN 35, Pending clearance level, Senator Claire Chandler (Liberal, Tasmania) asked for
an update on the number of open cases across clearance levels and employment types.
QoN 64, AGSVA and myClearance portal, Senator the Hon Linda Reynolds (Liberal,
Western Australia) asked a series of questions around the implementation of
myClearance.
Freedom of Information (FOI) Requests
From 1 May 2023 to 5 December 2023 AGSVA received 12 requests for access to
information from applicants seeking information contained in their Personal Security
File. O
Of these, two requests were released in full, three request were partial releases,
three requests were denied due to there being procedural fairness process in progress,
one request for an intelligence agency document was denied, two requests had no
relevant documents found, and one request was for a publically available document.
AGSVA received one request for access to information from a journalist seeking access
to the ‘Assessment of the Remediation Plan for the myClearance system’ report. TThis
document was partially released.
Recent Ministerial Comments
No recent comments.
Relevant Media Reporting
On 24 August 2023, Defence Connect published an article by Robert Dougherty titled
Defence industry in ‘holding pattern’ on security clearance backlog, reporting on the
progress of mandatory security clearances being approved for sensitive Defence
contracts.
On 6 July 2023, InnovationAus.com published an article by Justin Hendry titled Audit
office to review govt tech misfires, reporting on the audit of myClearance by the
Australian National Audit Office.
On 20 June 2023, The Australian Strategic Policy Institute published an article by Chris
Taylor titled Classifications and clearances are the bricks and mortar of national
security, reporting on the importance of classifications and clearances.
On 2 June 2023, InnovationAus.com published an article by Brandon How titled Gig
Guide: Defence data chief off to ANZ.
Stephen Merchant (a former Defence Deputy
Secretary of Intelligence and Security) conducted a review of myClearance.
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
On 9 May 2023, InnovationAus.com published an article by Brandon How titled $130m
Accenture vetting system rollout still facing issues,
reporting on the myClearance
system still facing issues.
On 8 May 2023, The Canberra Times published an article by Sarah Basford Canales
titled Public Eye: Is ChatGPT after your APS job?, which reported on Positive Vetting
responsibility being handed to the Top Secret Privileged Access Authority, and
referenced issues with myClearance.
On 10 April 2023, The Canberra Times published an article by Sarah Basford Canales
titled Paperless public service not yet a reality, security clearance delays, COVID and
floods kept APS staff busy, which reported on the Office of National Intelligence’s
experience with myClearance.
Division:
Defence Security Division
PDR No:
SB23-001102
Prepared by:
Cleared by Division Head:
Mardi Jarvis
Peter West
Assistant Secretary Vetting
First Assistant Secretary
Defence Security Division
Defence Security Division
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Date: 14 December 2023
Date: 14 December 2023
Consultation: N/A
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary:
Celia Perkins
Date: 18 December 2023
Deputy Secretary
Security and Estate Group
Additional Estimates: 15 February 2023
Senator Claire Chandler
Question Number: 35
Date QoN was tabled: 17 May 2023
Question
Senator CHANDLER: I have a short tranche of questions on security clearance processing.
The department confirmed, through my question on notice, that as at 1 November 2022
there were 38,915 open cases for clearance applications. Could you please provide an update
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
on the number of open cases across baseline, negative vetting 1, negative vetting 2 and
positive vetting?
Ms Perkins: I'll just try and find that number. The current open case number is 43,449 cases.
Senator CHANDLER: More? And against each clearance level? Ms Perkins: I would have to
take that on notice.
Senator CHANDLER: I'm guessing you'll have to take this on notice as well, but can you break
down the open cases against employment type?
Ms Perkins: Yes, Senator.
Answer
1. Open cases as at 12 May 2023:
Clearance Level
Total Cases
Baseline
16,341
Negative Vetting Level 1
24,469
Negative Vetting Level 2
8,035
Positive Vetting
3,730
Total applications in process
52,575
2. Breakdown of open cases by employment type as at 12 May 2023:
Parliamentary
Defence
Other
Defence
ADF
Staff
APS
Government
Industry
Percentage of all
0.45%
12.77%
23.46%
25.76%
37.56%
clearances
Additional Estimates: 15 February 2023
Senator the Hon Linda Reynolds
Question Number: 64
Date QoN was tabled: 18 May 2023
Question
1. How did the AGSVA Transformation Project liaise with end users to ensure that the
myClearance portal was a suitable replacement for the Security Officer’s Dashboard?
a. Please detail the pre-deployment testing that was undertaken.
2. Why does the myClearance portal lack critical resources for Chief Security Officers and
Security Officers such as the ability to list and download all clearance holders under their
sponsorship?
3. Why wasn’t the Security Officer’s Dashboard kept active, in the case that myClearance
fails for any reason?
4. Whilst the Vetting timeframe KPI’s are generally being achieved as per 20, 70,
100 business days (Baseline, NV1, NV2) can you please explain why is there a queue of up
to 8 weeks before an applicant is allocated to a Vetting officer?
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
5. What is AGSVA doing to increase the size of its workforce, given the backlog and the
continued growth of new applications?
6. When will additional Vetting Companies be appointed to provide sufficient resources to
overcome the vetting backlog?
7. What was the tender process and on what basis were Accenture awarded the contract?
a. Are their contractors based in Australia or offshore? If any are offshore, what
percentage?
8. What steps are AGSVA taking to accredit the security clearances of foreign specialist
contractors who have been chosen to work in Australia on the AUKUS program?
a. What is the process for this and processing times?
b. Are there plans for AGSVA to recognise existing clearances for highly skilled AUKUS
partner nation workers?
Answer
1. Security Officers were identified as an important user group. They were consulted as part
of the project requirements gathering phase to inform system design. Selected security
officers were also involved in user acceptance testing.
a. The myClearance project undertook a range of testing during development
including user acceptance testing pre-deployment, as well as business verification
testing following release.
2. MyClearance was designed to increase the security of the system. System controls were
designed around access to aggregated data to provide stronger protections for clearance
subject’s personal data. The project is continuing to consult with users, including security
officers, regarding final functionality requirement at Full Operation Capability.
3. The Security Officer’s Dashboard was not kept active as the data source it uses can no
longer be updated and is increasingly out of date and inaccurate.
4. AGSVA has experienced record demand that resulted in non-Positive Vetting clearances
exceeding vetting timeframes. Issues with the implementation of myClearance have
exacerbated these delays.
5. AGSVA’s workforce has grown to meet demand. AGSVA is modelling future workforce
requirements and future vetting demand.
6. AGSVA‘s External Security Vetting Service contract is structured for flexibility to support
surges in clearance demand and AGSVA is accessing this capacity as required. Certain
elements of the vetting process can only be performed by Commonwealth entities and
officers.
7. An open procurement process was used to select the prime system integrator. Evaluation
was performed against criteria developed from the project’s requirements. Accenture
was identified as the preferred tenderer.
a. All contractors engaged on the Vetting Transformation project are Australia
based.
8. All AGSVA clearances are provided in accordance with the Australian Government
Protective Security Policy Framework. AGSVA has a prioritisation process to facilitate
high-priority clearances across Government and industry. Since 2021, AGSVA has had a
dedicated industry liaison function to support industry requirements.
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Additional Estimates February 2024
PDR No: SB23-001102
Last updated: 1 February 2024
myClearance Remediation
Key witnesses: Celia Perkins, Peter West
a. All AGSVA clearances are provided in accordance with the process established in
the Australian Government Protective Security Policy Framework.
b. Australia has international agreements in place to recognise security clearances
from partner nations while an individual is employed by that nation.
Prepared By:
Cleared By:
Name: Mardi Jarvis
Name: Peter West
Position: Assistant Secretary Vetting
Position: First Assistant Secretary Defence
Division: Defence Security
Security
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB23-001103
Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
Defence Industry Development Strategy
Handling Note:
Deputy Secretary, Strategy, Policy, and Industry, Hugh Jeffrey, to lead.
First Assistant Secretary, Defence Industry Policy, David Nockels, to support.
Key Messages
The Government will release the Defence Industry Development Strategy in early 2024.
This will be a critical step in responding to the recommendations of the Defence
Strategic Review.
This Defence Industry Development Strategy will establish the framework and
principles for the direction of defence industry policy in what will be an important
decade in Australia’s national security.
Talking Points
Australia needs a sovereign defence industrial base to grow our self-reliance, and
leverage our allies’ and partners’ technology and industrial bases for mutual benefit.
The Defence Industry Development Strategy will set out:
the strategic rationale for a sovereign defence industrial base;
targeted and detailed sovereign industrial capability priorities;
a plan to grow industry’s workforce to deliver a viable industrial base and
increase Australia’s defence exports;
reforms to Defence procurement to support the development of Australian
defence industry and respond to the Defence Strategic Review;
mechanisms to improve security within defence businesses; and
a detailed implementation plan.
If pressed: What is the alignment between 2016 Defence Industry Policy Statement and
Defence Industry Development Strategy?
The Defence Industry Development Strategy aligns with the 2016 Defence Industry
Policy Statement. The Defence Industry Development Strategy will evolve the strategic
approach to defence industry policy to reflect the changing strategic drivers and
lessons learnt since the release of the 2016 Defence Industry Policy Statement.
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
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PDR No: SB23-001103
Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
The 2016 Defence Industry Policy Statement recognised industry as a fundamental
input to capability and acknowledged Defence is reliant on a robust, resilient and
internationally competitive Australian defence industrial base. This industrial base is
fundamental to Defence capability and Australia’s national power.
Defence cannot succeed in its mission without an Australian industrial base that is
able to provide and deliver capability into our supply chains, and deliver strategic
effect.
If pressed: Has the Defence Industry Development Strategy included Public Consultations?
Over 120 organisations from across Australia were consulted.
Defence undertook a mix of face-to-face and virtual consultations with state and
territory governments, primes, small and medium enterprises, universities and peak
industry groups.
The key themes discussed as part of the consultations included:
attracting and retaining a skilled workforce;
growing the capacity of our industrial base in areas of priority; and
harnessing Australian innovation.
If pressed: What is the cost of developing the Defence Industry Development Strategy?
The Defence Industry Development Strategy is being developed by Defence staff.
Defence engaged an external service provider to assist with the initial industry
consultation.
The total expenditure for the contract was $204,849.95 (GST inclusive), including
travel.
If pressed: Why did you not go out for broad public consultation?
The consultations were designed to elicit feedback on Defence’s industry policy to
inform the development of the Defence Industry Development Strategy.
Consultations included representatives from key stakeholder groups.
If pressed: What has the consultation told you so far?
A range of themes have been identified from the consultation, including industry
requests for:
more clarity from Defence on its industrial capability priorities;
certainty on future demand;
shorter timeframes for, and simplification of, procurement processes; and
consistent communication in a language industry can understand (i.e. using
industry terms rather than Defence terms).
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
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PDR No: SB23-001103
Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
If pressed: Is there funding in the Defence Industry Development Strategy for programs to
develop industry, and what will happen to existing grant programs?
The Defence Industry Development Strategy will seek to leverage existing funding
wherever possible for programs to support industry.
It is important to make sure there is support for defence industry, but it would be
premature to speculate about implications for existing grant programs.
Background
One of the Government’s 2022 election commitments was to implement a new
Defence Industry Development Strategy.
The 24 April 2023 Defence Strategic Review media release announced the
Government’s implementation of several key recommendations from the Defence
Strategic Review. It noted that, in order to build a defence industry needed to support
the ADF, the Government will release a Defence Industry Development Strategy by the
end of 2023.
On 27 November 2023 during a speech to an Australian Industry Defence Network
event, the Minister for Defence Industry advised the Defence Industry Development
Strategy will be released “early next year”.
On 21 June 2023 the Senate Foreign Affairs, Defence and Trade Legislation Committee
resolved to inquire into the performance of Defence in supporting the capability and
capacity of Australia’s defence industry. The committee has received 45 submissions
for this inquiry. The committee intends to table its final report by the final sitting day of
March 2024.
Supporting Information
Questions on Notice
2023-24 Supplementary Budget Estimates: 25 October 2023
QoN 116, Defence Industry Development Strategy, Senator the Hon David Fawcett
(Liberal, South Australia) asked a range of questions on the release and development of
the Strategy including timing, lead area, key assumptions, consultation, funding and
preliminary findings.
2022-23 October Budget Estimates: 28 November 2022
QoN 74, Defence Industry Strategy, Senator the Hon David Fawcett (Liberal, South
Australia) asked a range of questions on the development of the Defence Industry
Development Strategy including timing, lead area, consultation, funding and links to
the Defence Strategic Review.
QoN 75, D
Defence Industry Package, Senator the Hon David Fawcett (Liberal, South
Australia) asked if there are going to be any expenditure to Defence Industry Package
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
Phone:
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Phone:
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PDR No: SB23-001103
Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
related programs and if so will the cuts make the current skills shortage in the Defence
industry worse.
Freedom of Information (FOI) Requests
On 30 October 2023 a media organisation requested Defence’s finalised estimates
briefing pack for the 25 October 2023 Supplementary Budget Estimates. TThe decision
to release documents is pending.
On 31 May 2023, an individual made a request seeking access to the Department’s
May Senate Estimates briefing pack. D
Documents were released on 7 August 2023.
Recent Ministerial Comments
On 14 June 2023 the Minister for Defence Industry made a speech highlighting that
procurement reform would be a critical part of the Defence Industry Development
Statement.
On 24 April 2023 the Deputy Prime Minister and the Minister for Defence Industry
announced the Government would release a Defence Industry Development Statement
towards the end of 2023. Media Release/Press Conference.
On 4 April 2023 the Assistant Minister for Defence made a statement highlighting that
the third critical element of the Government’s defence reform agenda is the Defence
Industry Development Strategy.
On 27 February 2023 the Deputy Prime Minister made a statement highlighting the
Government’s commitment to delivering a new Strategy at the Defence Industry
Dinner 2023.
Relevant Media Reporting
On 4 December 2023 the Asia-Pacific Defence Reporter published an article noting the
release of a new report titled “Developing Australia’s Defence Industrial Base”
commissioned by the Australian Industry Defence Network and the Sovereign
Australian Prime Alliance.
On 28 November 2023 The Australian published an article by Ben Packham stating “yet
another delay to [the Government’s] Defence agenda” noting the Minister for Defence
Industry’s statement the previous day to an Australian Industry Defence Network event
that the Defence Industry Development Strategy will be released “early next year”.
On 14 November 2023 The Mandarin published an article by Mark Jeffries assessing
defence industry against the recommendations of the Defence Strategic Review, and
opining that the current domestic industry and policy settings were misaligned with the
Defence Strategic Review.
On 6 October 2023 The Australian Financial Review published an article by Andrew
Tillett which quoted Brent Clark of Australian Industry Defence Network as stating “we
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
Phone:
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Phone:
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Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
understood the government wanted to do the Defence Strategic Review and industry
was tolerant of that, but at what point is the government going to start issuing
contracts…”.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB23-001103
Prepared by:
Cleared by Division Head:
s47E(d)
David Nockels
Acting Assistant Secretary
First Assistant Secretary
Defence Industry Domestic Policy
Defence Industry Policy Division
Mob:
s22
Ph:
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Mob:
s22
Ph:
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Date: 8 December 2023
Date: 11 December 2023
Cleared by Deputy Secretary:
Susan Bodell
Date: 19 December 2023
Acting Deputy Secretary
Strategy, Policy, and Industry Group
Questions on notice referred to within the brief:
2023-24 Supplementary Budget Estimates: 25 October 2023
Senator the Hon David Fawcett
Question Number: 116
Date question was tabled: 25 October 2023
Question:
1.
The Labor Government committed to have a ‘Defence Industry Development Strategy’
and the Minister for Defence Industry has previously stated the DIDS would be
delivered “towards the end of this year”
a.
When will the strategy be released?
b.
Who is leading the development of the strategy?
i.
What are the reasons behind this assignment?
ii.
What are their terms of reference and schedule, and are they keeping to them?
c.
What are the key assumptions about the role of Defence industry and expected
outcomes for DIDs?
d.
What consultation to date has the Department completed or is still planned with
Defence Industry stakeholders?
i.
If so, how long will the consultation period be, is it still open?
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
Phone:
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&
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Phone:
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Key witnesses: Hugh Jeffrey; David Nockels
ii.
Can you provide updated information about who has been consulted, and also
the nature of the consultation (beyond just numbers of parties consulted)?
e.
What are the costs for developing the strategy, is it tracking within budget?
f.
Have any external consultants or advisers been procured to work on the
strategy?
g.
What is the value of those contracts?
2.
When the strategy is eventually released, what timeframes are being considered to
implement recommendations?
3.
What are some current and provisional findings and recommendations of the strategy,
what has been achieved since the strategy development process commenced?
Answer:
Not yet tabled.
2022-23 October Budget Estimates: 28 November 2022
Senator the Hon David Fawcett
Question Number: 74
Date question was tabled: 21 December 2022
Question
With reference to the Defence Industry Development Strategy. Defence Industry
Development Strategy | Policies | Australian Labor Party (alp.org.au)
1. The Labor Government committed to have a ‘Defence Industry Development Strategy’,
will there be one?
a. If not, why not?
b. If so, when will it start?
c. When will it end?
d. What are the reasons behind the start & end dates?
2. Who will lead the development of the strategy?
a. What are the reasons behind who will lead the development?
3. How will it be developed?
a. What are the reasons of how it will be developed?
4. Does the Department plan to do any consultation?
a. If so, how long will the consultation be?
b. Who will the Department consult with?
c. And why?
5. Are there any costs for developing the strategy?
a. Has the costs been accounted for in the budget?
6. Are there going to be any overlap between the ‘Defence Industry Development Strategy’
and ‘Defence Strategic Review’?
Answer
The Government is developing a new Defence Industry Development Strategy, in line with its
election commitment. The Strategy will establish the framework for, and articulate the
principles and direction of, defence industry policy, and will be informed by the Defence
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
Phone:
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Phone:
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Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
Strategic Review. The development of the Strategy is currently underway by the Department
of Defence and has already included consultations with industry and industry associations. It
is being prepared from within Departmental resources.
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
Phone:
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Phone:
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PDR No: SB23-001103
Last updated: 19 December 2023 Defence Industry Development Strategy
Key witnesses: Hugh Jeffrey; David Nockels
Senator the Hon David Fawcett
Question Number: 75
Date question was tabled: 16 December 2022
Question
With reference to the Incoming Government Brief; Part 5.1.8, page 84. $151.6 million for a
Defence Industry Package from 2021-22 to the end of the forward estimates. It includes
funding for the following programs: School Pathways, Skilling Australia’s Defence Industry
Grants, Defence Industry Internships, and Sovereign Industrial Capability Priority Grants;
1. Are there going to be any expenditure cuts to below Defence Industry Package related
programs?
a. School Pathways
b. Skilling Australia’s Defence Industry Grants
c. Defence Industry Internships
d. Sovereign Industry Capability Priority Grants
e. If so, which programs?
2. Does the Department believe that those cuts will make the current skills shortage issue in
the Defence industry worse?
Answer
No decision has been taken to reduce funding.
Prepared By:
Cleared By:
Name: Dr Kathryn Cameron
Name: Susan Bodell
Position: Assistant Secretary Defence Industry
Position: Acting Deputy Secretary
Domestic Policy
Group/Service: Strategy, Policy, and Industry
Division: Defence Industry Policy
Phone:
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&
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Phone:
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Additional Estimates February 2024
PDR No: SB23-001104
Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Current ADF Operations
Handling Note:
Vice Admiral David Johnston, Vice Chief of the Defence Force, to lead on current ADF
operations.
Air Vice-Marshal Stephen Chappell, Head of Military Strategic Commitments, to
support.
Key Messages
Defence’s operations contribute to ensuring Australia is willing and able to shape our
environment, deter actions against our interests, and, when required, respond with
military force.
As of 6 February 2024, around 600 Australian Defence Force (ADF) personnel were
deployed on 22 named operations across Australia, the immediate region, and the
globe.
The total cost of named operations between 1 July 2023 and 31 January 2024 was
$139,808,801.
Talking Points
Operation MANITOU
Operation MANITOU is the ADF operation to support international efforts promoting
maritime security, stability and prosperity in the Middle East and East Africa regions.
Defence provides personnel to the Combined Maritime Forces, which includes
deployment with a Canadian-led Combined Task Force and Operation PROSPERITY
GUARDIAN.
Operation PROSPERITY GUARDIAN is part of the Combined Maritime Forces and is a
separate operation to the United States-led coalition defensive strikes against the
Houthis in Yemen.
On 28 November 2023, the Commander of the Combined Maritime Forces,
Vice Admiral Charles B Cooper, wrote to the Chief of Navy requesting ADF support
for Operation PROSPERITY GUARDIAN.
On 21 December 2023, the Chief of the Defence Force wrote to the Commander
of Combined Maritime Forces offering an additional six ADF personnel to
Combined Maritime Forces to support Operation PROSPERITY GUARDIAN.
On 21 December 2023, the Deputy Prime Minister announced Australia will triple our
contribution to the Combined Maritime Forces.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
As of February 2024 Defence’s commitment to Operation MANITOU is up to 16
ADF personnel.
Australia’s support to maritime security operations in the Red Sea is detailed in the Red Sea
brief.
In January 2024, the United States and United Kingdom established a separate coalition,
with support from Australia, Canada, the Netherlands, Bahrain, and New Zealand, to
conduct strikes against Houthi targets in Yemen.
Since 11 January 2024, Australia has provided non-operational support through
the deployment of a Liaison Officer.
Operation BEECH
• Defence initiated Operation BEECH to support departures of Australians and their families,
and other approved foreign nationals from Israel following a request on 13 October 2023
from the Foreign Minister to the Deputy Prime Minister. Defence has been assisting the
Department of Foreign Affairs and Trade-led departure of Australian citizens and approved
foreign nationals from Tel Aviv, Israel
Since 7 October 2023, the ADF has conducted five military-assisted departures from
Tel Aviv, Israel to Dubai, United Arab Emirates under Operation BEECH at the request of the
Department of Foreign Affairs and Trade.
Defence transported approximately 394 Australians and approved foreign nationals
from Israel on Defence aircraft between 15 and 19 October.
Two flights took place on 15 October 2023 and on 16, 18 and 19 October 2023 (local Israel
time) a single flight occurred on each day.
Over the period 20 to 21 October, the ADF also assisted 97 people who had previously
been assisted by the Australian Government to Dubai, to return to Australia. The
passengers travelled in an Air Force aircraft that was returning to Australia.
The ADF remains postured to provide additional support if required.
Defence support for the Crises Response in Israel is detailed in the Hamas-Israel Conflict
brief.
Operation KUDU
Operation KUDU is the operation for ADF support to Ukraine. The operation includes
training Ukrainian soldiers in the United Kingdom and the deployment of a Royal Australian
Air Force E-7A Wedgetail aircraft to Germany for approximately six months to help protect a
vital gateway of international humanitarian and military assistance to Ukraine.
For information on Defence support to Ukraine, including military assistance, refer to the
Ukraine brief.
Operation LILIA
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Established in November 2021 Operation LILIA is the ADF operation to support the
whole-of-government response to the Solomon Islands Government request for
assistance in stabilising public unrest. Under Operation LILIA, ADF personnel provide
ongoing support, including logistical and health services, to the Australian Federal
Police-led Solomons International Assistance Force.
In November 2023, Operation LILIA numbers temporarily increased to enable the
Defence contribution to the whole-of-government support to the Solomon Islands
Government conduct of the 2023 Pacific Games.
Operation ORENDA (Mali)
ADF support to the Multidimensional Integrated Stabilization Mission in Mali under
Operation ORENDA ceased on 31 December 2023.
On 30 June 2023, following a request from the transitional government of Mali, the United
Nations Security Council terminated the mandate for the United Nations Multidimensional
Integrated Stabilisation Mission in Mali.
A new mandate was adopted directing the mission to drawdown by
December 2023.
The United Nations Multidimensional Integrated Stabilisation Mission in Mali
formally ended on 31 December 2023.
Since 2019, Australia supported the United Nations Multidimensional Integrated
Stabilisation Mission in Mali by providing one ADF representative under Operation ORENDA.
The member was stationed in the United Nations Multidimensional Integrated
Stabilisation Mission in Mali Headquarters in the Mali Capital of Bamako.
Operation RENDER SAFE
Operation RENDER SAFE is the ADF-led operation supporting Pacific nations for ongoing
removal of explosive remnants of war.
In July 2023, the ADF supported the Government of Nauru with the safe disposal of a 500lb
bomb discovered at an industrial site in Aiwo District, Nauru.
At the request of the Government of Nauru, the ADF rapidly deployed Explosive
Ordinance Disposal technicians and health personnel under Operation RENDER
SAFE to support the assessment and safe disposal of the bomb.
The Australian team worked closely with the Government of Nauru the Nauru
Police Force to co-develop plans for rendering safe disarmament and disposal.
The ADF returned to Nauru in August 2023 for a scheduled reconnaissance to locate and
assess other explosive remnants of war and to plan future disposal. The New Zealand
Defence Force, Royal Solomon Islands Police Force, and United States Marine Corps also
participated in the activity. Members of United States Army, French Armed Forces in New
Caledonia and Republic of Korea Armed Forces joined as observers.
In December 2023, the ADF supported the Government of Nauru with the safe disposal of
another 500lb bomb discovered at an industrial site in the Aiwo District. The ADF delivered a
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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/
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Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
similar rapid deployment and cooperative disarmament and disposal approach as the
July 2023 support.
Operation RESOLUTE
Operation RESOLUTE is the ADF contribution to the whole-of-government effort to protect
Australia’s borders and offshore maritime interests.
The ADF contributes forces under Operation RESOLUTE to Maritime Border Command, a
multi-agency taskforce within the Australian Border Force, which utilises assets to conduct
civil maritime security operations.
Maritime Border Command protects Australia's maritime domain from security threats,
including illegal maritime arrivals, prohibited imports and exports, maritime terrorism, illegal
exploitation of natural resources, compromises to biosecurity, illegal activities in protected
areas, marine pollution and piracy, robbery and violence at sea.
ADF assets assigned to Operation RESOLUTE are controlled by Maritime Border Command
and are under the command of a two-star naval officer seconded to the Australian Border
Force.
ADF personnel may be on Operation RESOLUTE, either at sea, in the air or on the land.
The following ADF elements may be allocated to Operation RESOLUTE:
Air Force maritime patrol aircraft to provide aerial surveillance of Australia's
north-west and northern approaches.
Navy patrol boats operate daily throughout Australia's maritime areas.
Army Regional Force Surveillance Unit patrols which conduct land based security
operations.
A transit security element made up of Navy and Army personnel who embark in
the patrol boats.
Large hull vessels on an as required basis.
Defence surges resources in response to Operation SOVEREIGN BORDERS
requirements.
Operation ARGOS
Questions relating to HMAS Toowoomba’s unsafe and unprofessional interaction with
the People’s Liberation Army Navy while undertaking Operation ARGOS should be
responded to by the Vice Chief of the Defence Force or the Head of Military Strategic
Commitments Division.
ADF activities in the South China Sea
Detail on ADF activities in the South China Sea are provided in the China and South
China Sea brief.
Background
A description of each operation is in the table below.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Operation
Overview
Personnel
Expenditure ii as at Expenditure
Name
deployed i
31 January 2024
2022-23
ACCORDION
ADF support to Middle East
41
51,950,583 102,353,686
operations
ARGOS
United Nations sanctions
57
1,519,149
1,674,243
enforcement against the
Democratic People’s Republic of
Korea.
ASLAN
United Nations mission South
15
1,126,891
1,897,723
Sudan
AUGURY-
Global Counter Terrorism
47
3,212,731
2,641,637
GLOBAL
BANNISTER
5
431,062
343,887
BEECH
ADF support to WoG response to
9
15,030,552
Recently
Hamas-Israel conflict.
commenced
DYURRA
Dedicated ADF space operation
0
Nil to date
Nil to date
integrating space capabilities,
services and effects into wider
operations
FORTITUDE
United Nations Disengagement
0
6,031
871
Observer Force, Syria
GATEWAY
Preservation of regional security
11
100,760
369,094
and stability in South-East Asia
KUDU
Training Ukrainian soldiers in the
150
5,368,204
2,727,727
United Kingdom and
E-7A Deployment
LILIA
Solomon Islands – security
30
10,647,645
13,295,839
support
LINESMEN
Inter-Korean peace process
1
468,545
911,708
MANITOU
Maritime security – Middle East,
13
445,823
1,576,270
West Indian Ocean
MAZURKA
Peacekeeping, Sinai, Egypt
28
2,344,695
2,226,373
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Operation
Overview
Personnel
Expenditure ii as at Expenditure
Name
deployed i
31 January 2024
2022-23
OKRA
Defeat Daesh in Iraq and Syria
5
1,297,893
12,249,110
ORENDA
United Nations Peacekeeping,
Mission
17,000
45,366
Mali
Ceased iii
PALADIN
United Nations Peacekeeping,
13
660,338
985,850
Israel, Lebanon, Syria
RENDER SAFE
Pacific, removal of explosive
0
135,552
479,109
remnants of war
RESOLUTE
Border protection, maritime
276
43,995,104 118,868,318
interests
SOLANIA
Pacific, maritime surveillance
0
661,061
3,109,929
SOUTHERN
Australian Antarctic Program
16
75,324
253,932
DISCOVERY
STEADFAST
Iraq, NATO capacity building
2
313,848
221,119
Total
625
139,808,801 266,231,294
Notes
i.
Personnel numbers are accurate as at 6 February 2024. Numbers may vary due to operational
requirements.
ii.
Expenditure is accurate as at 31 January 2024.
iii.
This mission ceased on 31 December 2023.
iv.
All figures are in AUD
Supporting Information
Questions on Notice
Parliamentary Question on Notice - Senate: 15 December 2023
QoN No. 2963, Senator David Shoebridge (Greens, New South Wales) asked a
question concerning whether there were any ADF personnel on secondment or
embedded, or in other ways involved with the Israeli Defense Force.
Freedom of Information (FOI) Requests
On 20 June 2022 a media organisation asked for information regarding ‘…a copy of
any document or directive which covers the rules governing ADF personnel involved
in unmanned aerial system units in the UK and US, including but not limited to rules
of engagement and geographical limits.’ TThe decision to not release documents was
made on 14 July 2022.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
On 9 March 2022 a media organisation asked for information regarding ‘…any
reports, briefs, emails, or cables detailing the latest figure of ADF personnel
embedded into allied United States and United Kingdom unmanned aerial system
units.’ A
A single table listing numbers of ADF personnel deployed was released on 4
April 2022.
Recent Ministerial Comments
Operation BEECH:
On 16 October 2023 the Deputy Prime Minister, Minister for Foreign Affairs and
Minister for Government Services released a joint statement announcing Defence
support for assisted-departures for Australians.
Operation KUDU:
On 10 July 2023 the Deputy Prime Minister released a joint media statement
announcing the deployment of an E-7A Wedgetail from Australia to help protect a
vital gateway of assistance to Ukraine .
Relevant Media Reporting
Operation ARGOS:
On 14 October 2023 SOFREP published an article titled Australian Navy Bolsters Indo-
Pacific Security with New Deployment. The article discusses HMAS Brisbane and
Toowoomba with Operation ARGOS being a key component of the deployment.
Operation ASLAN:
On 29 March 2023 the National Tribune published an article titled Change of
command for Sudan contingent. The article covers Colonel Richard Watson handing
over command of Operation ASLAN to Colonel David Hughes.
Operation BEECH:
On 16 October 2023 The Advertiser published an article titled Warning as fears
spread to Lebanon. The Foreign Minister confirms multiple mercy flights for
Australians stranded in Israel, with a mix of charter and military RAAF flights.
On 15 October 2023 The West Australian (and syndicated papers) published an
article titled More charter and RAAF flights in bid to rescue Australians from Israel.
DFAT confirms announcement of several new charter and Air Force flights for
Australians wishing to leave Israel.
Operation GATEWAY:
On 23 August 2023 The Malay Mail published an article titled Regional security:
Malaysia, Australia reaffirm commitment to Five Power Defence Arrangements,
which noted Operation GATEWAY’s contribution to regional security.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
On 16 March 2023 the American Military News published an article titled Australian
military pilots offered counselling after Chinese jet encounters. Journalist Chris
Kirkman reports on the support provided to Australian pilots after they encounter
Chinese military jets.
Operation KUDU (Ukraine Support):
On 9 January 2024 The Canberra times published an article titled More Australians to
help in Ukraine military training with the latest rotation of 90 ADF personnel
departing Australia for the United Kingdom.
On 23 September 2023 Mena FN published an article titled During Training in UK,
Ukrainian Soldiers Prepare For Operations In Dense Forests. The article discusses
Australia’s training support to Ukraine.
On 11 July 2023 Al-Jazeera published an article titled Australia to deploy surveillance
aircraft to assist Ukraine, reporting on the deployment of an E-7A Wedgetail aircraft
to provide protection to a vital humanitarian and military supply line to Ukraine. The
aircraft will operate from Germany for a duration of six months.
On 27 March 2023 the National Tribune published an article titled Weather tests
troops on Operation Kudu. The article reports on the weather conditions being
experienced by Australian soldiers training recruits from the Armed Forces of
Ukraine.
On 19 March 2023 MenaFN published an article titled Soldiers Of Armed Forces Of
Ukraine Undergo Live-Fire Training In UK. The article highlights the training of
Ukrainian soldiers by ADF instructors.
Operation RENDER SAFE:
On 11 December 2023 Defence Connect published an article titled ADF deploys EOD
specialists to Nauru to work with the Nauru authorities to remove a WW2 500lb
bomb.
30 August 2023, the Daily Mail published an article titled Australian experts help
clear unexploded bombs on Nauru. The article states that Defence and police forces
from Australia, New Zealand, the United States, the Solomon Islands, France and
South Korea have joined the initiative to help train and improve safety and
awareness about unexploded ordnance.
Operation RESOLUTE:
On 2 December 2023 ABC news published an article titled Force of the north about
the NORFORCE support to Operation RESOLUTE and the Role they pay in protecting
Australia’s northern coastline.
On 7 November 2023 The National Tribune reprinted the Defence News story
Remaining vigilant in the Top End, reporting that soldiers attached to Joint Task
Force 639 have been patrolling some of Australia’s most inaccessible shorelines as
part of Operation Resolute.
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001104
Last updated: 12 February 2024 Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
On 28 September 2023 Daily FT reported that Sri Lanka and Australia mark 10 years
of Operation Sovereign Borders.
On 16 February 2023 The Australian published an article titled SOS to navy: get ready
for boats surge. Journalists Simon Benson and Joe Kelly cover comments made by
Vice Admiral David Johnston at Senate Estimates regarding a formal request from
the commander of Operation SOVEREIGN BORDERS for extra defence assets to
patrol Australia's northern maritime approaches.
Operation SOLANIA:
On 30 August 2023 APDR published an article titled Defence supports Pacific
partners to combat to fight illegal fishing, reporting that the ADF had conducted 17
missions and patrolled 686,000 square kilometres in an operation to combat illegal
fishing in the Pacific.
Division:
Vice Chief of the Defence Force Executive
PDR No:
SB23-001104
Prepared by:
Cleared by:
Air Vice-Marshal Stephen Chappell
Vice Admiral David Johnston, RAN
Head Military Strategic Commitments
Vice Chief of Defence Force
Mob: s22
Ph: s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 12 February 2024
Date: 12 February 2024
Consultation:
Date: February 2024
Commodore Peter Leavy, RAN
Ph: s47E(d)
Chief of Staff
Headquarters Joint Operations Command
Cleared by AS DFG:
Michael Cosgrove, Assistant Secretary
Budgeting and Reporting
Cleared by Band 3/3*:
Date: 12 February 2024
Vice Admiral David Johnston, RAN
Vice Chief of Defence Force
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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OFFICIAL
Defence FOI 680/23/24
OFFICIAL
Additional Estimates February 2024
PDR No: SB23-001104
Last updated: 12 February 2024
Current ADF Operations
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell
Questions on notice referred to within the brief:
Parliamentary Question on Notice - Senate: 15 December 2023
Senator David Shoebridge
Portfolio question number: 2963
Date question was tabled: Not yet tabled
Questions
Please provide details of Australian Defence Force (ADF) personnel on secondment or
embedded or in other ways involved with the Israeli Defence Force, broken down by:
a. the total number of ADF personnel in each of the calendar years from 2017-23,
up to 6 October 2023; and the number on and from 7 October 2023;
b. the substantive ADF roles and/or position descriptions of all such ADF
personnel;
c. the roles and or position descriptions in the Israeli Defence Force of all such
ADF personnel; and
d. please also provide the number of ADF personnel stationed in Israel, broken
down by:
i.
the total number of ADF personnel in each of the calendar years from
2017-23, up to 6 October 2023; and the number on and from 7 October 2023;
and
ii.
the substantive ADF roles and or position descriptions of all such ADF
personnel.
Answer
Not yet tabled
Prepared By:
Cleared By:
Name: Air Vice-Marshal Stephen Chappell
Name: Vice Admiral David Johnston
Position: Head Military Strategic Commitments
Position: Vice Chief of the Defence Force
Return to Index
Branch/Division: VCDF
Group: Vice Chief of the Defence Force Executive
Phone:
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Phone:
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OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
Red Sea
Handling Note:
Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead on Australia’s
support to the United States-led coalition in the Red Sea.
Vice Chief of the Defence Force, Vice Admiral David Johnston, to lead on current ADF
operations.
Key Messages
Australia has joined the international community in unreservedly condemning the
illegal and unjustifiable Houthi attacks on commercial shipping in the Red Sea and
in the Gulf of Aden.
Australia is supporting the United States and United Kingdom-led defensive strikes
against Houthi targets in Yemen.
Australia is contributing up to 16 personnel to the Combined Maritime Forces,
including Operation PROSPERITY GUARDIAN.
Talking Points
Australia’s contribution to Operation PROSPERITY GUARDIAN
On 21 December 2023 the Deputy Prime Minister announced Australia will be tripling
our contribution to the Combined Maritime Forces.
While our focus is – and must remain – the Indo-Pacific, we continue to support the
global rules-based order, including in the Middle East and surrounding region.
Operation PROSPERITY GUARDIAN is part of the Combined Maritime Forces and is a
separate operation to defensive strikes against Houthi targets in Yemen by the United
States-led coalition.
Australia has conducted maritime security operations in the Middle East since 1990.
If pressed: How many ADF are deployed to Operation PROSPERITY GUARDIAN?
Some 13 ADF personnel are currently embedded with Combined Maritime Forces and
subordinate Combined Task Force headquarters, under Operation MANITOU.
The additional personnel announced by the Deputy Prime Minister on
21 December 2023 had all arrived by 22 January 2024.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
If pressed: Did the United States ask Australia to provide a ship to Operation PROSPERITY
GUARDIAN?
On 28 November 2023 the Commander of the Combined Maritime Forces,
Vice Admiral Charles B. Cooper, wrote to the Chief of Navy requesting Australia
consider contributing “surface and/or air patrols… and/or personnel to the operations
staff”.
After further discussions with the United States on its operational needs, Defence
provided advice to the Government.
On 21 December 2023 the Deputy Prime Minister announced that Australia would
triple its contribution to the Combined Maritime Forces to support the
United States-led Operation PROSPERITY GUARDIAN to help deter further Houthi
attacks.
Australia’s contribution to the United States-led Coalition against Houthis in Yemen
Australia joins the international community in unreservedly condemning Houthi attacks
on commercial shipping in the Red Sea and in the Gulf of Aden.
These attacks constitute a threat to the safety of seafarers of all nations,
navigational rights and freedoms, international trade and maritime security.
Australia alongside the Netherlands, Canada, Bahrain, New Zealand and Denmark has
provided support for the United States and the United Kingdom in defensive strikes
against Houthi targets in Yemen since 12 January 2024.
Australia’s support includes public support, and Defence personnel in a
non-operational capacity.
On 23 January 2024 New Zealand announced it would provide six personnel to
the United States-led coalition.
On 29 January 2024 Denmark announced it would provide a frigate to the United
States-led coalition.
These precision strikes were intended to disrupt and degrade Houthi capabilities used
to threaten global trade and the lives of mariners in a vital international waterway.
Australia remains committed to, and firmly aligned with the broad consensus of
upholding the rules-based order in the maritime domain and the central principle of
freedom of navigation.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
If pressed: What is the legal basis for Australia’s contribution to the United States-United
Kingdom led strikes against Houthi targets in Yemen?
Australia’s non-operational support to the United States-led coalition against Houthi
targets in Yemen is underpinned by a robust legal basis of collective self-defence under
s.51 of the United Nations Charter, on the basis that the Government of Yemen is
unable to prevent the Houthis from launching attacks from within their territory.
The Department of Foreign Affairs and Trade and the Attorney General’s Department
provided legal advice on Australia’s non-operational support to the United States-led
operations.
If pressed: Was Australia asked to provide military assets to support the United States and
United Kingdom-led strikes?
The United States has asked Australia and other partners to express our support for the
defensive actions, which we are doing.
The United States indicated a Defence personnel contribution would be welcome.
If p
pressed: Do the statements released on 4, 12, and 23 January 2024 (AEST) commit Australia
to further military actions against the Houthis?
While our focus is – and must remain on – the Indo-Pacific, we will continue to work
with our international partners to uphold international rules and norms across the
globe, with contributions that effectively support the operations and are in line with
our national interests.
If p
pressed: have any ADF personnel been injured by the drone strike in Jordan against United
States soldiers?
Australia is aware of a drone attack in Jordan on 28 January 2024.
Defence can confirm that no ADF personnel in the Middle East region have been
injured by the recent drone strike.
Australia joins the international community in unreservedly condemning the actions of
the Iran-backed militant groups involved.
Background
Operation PROSPERITY GUARDIAN
On 21 December 2023 the Chief of the Defence Force wrote to the Commander of
Combined Maritime Forces offering an additional six ADF personnel to the Combined
Maritime Forces to support Operation PROSPERITY GUARDIAN.
On 21 December 2023 the Deputy Prime Minister announced that Australia would
triple its contribution to the Combined Maritime Forces to support the United States-
led Operation PROSPERITY GUARDIAN to help deter further Houthi attacks.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
On 19 December 2023 the Chief of the Defence Force joined other representatives
from member states of the Combined Maritime Forces in a teleconference hosted by
the United States Secretary of Defense, Mr Lloyd Austin, who sought support to the
actions of the United States in the Red Sea. The Chief of the Defence Force said
Australia will continue to support efforts globally and noted Australia would consider
the United States’ request for further support.
On 19 December 2023 Australia and 43 countries joined the joint statement on Houthi
attacks in the Red Sea.
On 18 December 2023 Secretary Austin announced the establishment of Operation
PROSPERITY GUARDIAN, organised under the Combined Maritime Forces to help
defend against Houthi threats in the Red Sea.
On 5 December 2023 Commander United States Central Command,
General Michael Kurilla requested framework nations to contribute to the operation
during a teleconference with Chief of Joint Operations, Lieutenant General Gregory
Bilton.
On 1 December 2023 the United Nations Security Council condemned Houthi attacks in
the Red Sea and underscored the importance of the freedom of navigation. The
statement called on the immediate end of attacks and the release of the M/V Galaxy
Leader and its crew.
On 28 November 2023 Commander of the Combined Maritime Forces,
Vice Admiral Charles B. Cooper, wrote to the Chief of Navy requesting ADF support for
Operation PROSPERITY GUARDIAN.
On 19 November 2023 Houthi forces landed a helicopter on board the M/V Galaxy
Leader, a Bahamas-flagged, Japanese-operated vessel, seized the vessel, and kidnapped
the multinational crew.
United States-led Coalition against Houthis in Yemen
On 4 February 2024 the Deputy Prime Minister released a joint statement with Bahrain,
Denmark, Canada, the Netherlands, New Zealand, United Kingdom and United States
on additional strikes against the Houthis in Yemen.
On 4 February 2024 the United States and the United Kingdom, with support from
Australia, Bahrain, Denmark, Canada, the Netherlands, and New Zealand conducted
strikes on Houthi targets in Yemen (third joint strike).
On 23 January 2024 the Deputy Prime Minister released a joint statement with Bahrain,
Canada, the Netherlands, New Zealand, United Kingdom and United States on
additional strikes against the Houthis in Yemen.
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
s22
Phone:
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OFFICIAL
Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
On 23 January 2024 the United States and the United Kingdom with support from
Australia, Bahrain, Canada, the Netherlands, and New Zealand conducted strikes on
Houthi targets in Yemen (second joint strike).
On 12 January 2024 the Prime Minister released a joint statement with Bahrain,
Canada, Denmark, Germany, the Netherlands, New Zealand, Republic of Korea, the
United Kingdom and the United States on strikes against the Houthis in Yemen.
On 12 January 2024 the United States and the United Kingdom with support from
Australia Bahrain, Canada, the Netherlands, and New Zealand conducted strikes on
Houthi targets in Yemen (first joint strike).
On 11 January 2024, during his call with the Chief of the Defence Force, the United
States Chairman of the Joint Chiefs of Staff, General Charles Q. Brown Junior, thanked
Australia for our support and personnel contribution, and welcomed any further
contribution noting our focus in the Indo-Pacific.
On 4 January 2024 the Prime Minister released a joint statement warning the Houthis
would bear responsibility of the consequences should they continue to threaten lives,
the global economy and the free flow of commerce in the region’s critical waterways.
Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands,
New Zealand, Singapore, United Kingdom and United States released the
statement.
Iran-backed drone strikes on United States soldiers
On 8 February 2024 a United States drone strike in Baghdad killed three members of the
Kataib Hezbollah militia in response to the attacks on United States service members.
On 3 February 2024 the United States struck over 85 targets in Iraq and Syria in response
to the attacks on United States service members.
On 28 January 2024 the Islamic Resistance in Iraq attacked a United States base in north-
eastern Jordan, killing three United States military personnel and injuring others.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
No FOIs requested.
Recent Ministerial Comments
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
On 4 February 2024, the Deputy Prime Minister released a joint statement with
Bahrain, Denmark, Canada, the Netherlands, New Zealand, the United Kingdom and
the United States on additional strikes against the Houthi Attacks in the Red Sea.
On 23 January 2024 the Deputy Prime Minister released a joint statement with Bahrain,
Canada, the Netherlands, New Zealand, the United Kingdom and the United States on
additional strikes against the Houthi Attacks in the Red Sea.
On 12 January 2024 the Prime Minister released a joint statement with Bahrain,
Canada, Denmark, Germany, the Netherlands, New Zealand, Republic of Korea, United
Kingdom and United States on strikes against the Houthis in Yemen.
On 4 January 2024 the Prime Minister released a joint statement with Bahrain,
Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands, New Zealand,
Singapore, United Kingdom and United States warning the Houthis against further
attacks on commercial vessels transiting the Red Sea.
Relevant Media Reporting
On 29 January 2024 the ABC reported the MV Bahijah en route to Jordan was ordered
by the Department of Agriculture to return to Australia 15 days into its voyage due to
the deteriorating situation in the Red Sea.
On 28 January 2024 the Australian Financial Review reported attacks on ships in the
Red Sea could result in significant delays for Australian imports.
On 25 January 2024 Sky News reported the Houthis had been targeting ships hauling
cargo for United States Defense and State Departments through the Red Sea in
response to Western pressure and bombardments.
On 16 January 2024 Sky News reported the Houthis had escalated Red Sea attacks in
response to the United Kingdom and the United States strikes.
On 12 January 2024 it was reported that Australia had provided support to the joint
United States and United Kingdom strikes.
On 21 December 2023 the ABC reported that Australia would send personnel to the
Red Sea, but no warship.
Division:
Strategy, Policy, and Industry Group
PDR No:
SB24-000199
Prepared by:
Cleared by Division Head:
s47E(d)
Bernard Philip
Director
First Assistant Secretary
United Nations, Middle East and Africa
International Policy Division
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000199
Last updated: 12 February 2024
Red Sea
Key witness: Hugh Jeffrey; Vice Admiral David Johnston
Mob:
s22
Ph:
s47E(d)
Mob:
s22
Ph:
s47E(d)
Date: 9 February 2024
Date: 9 February 2024
Cleared by Deputy Secretary:
Hugh Jeffrey
Date: 12 February 2024
Deputy Secretary
Strategy, Policy, and Industry Group
Prepared By:
Cleared By:
Name: s47E(d)
Name: Hugh Jeffrey
Position: Director United Nations, Middle East
Position: Deputy Secretary
and Africa
Group: Strategy, Policy, and Industry
Branch/Division: International Policy Division
Phone:
s47E(d)
/
s22
Phone:
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/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
Deputy Commander 7th Brigade
Handling Note:
Chief of the Defence Force, General Angus Campbell AO DSC, to lead.
First Assistant Secretary Pacific, Susan Bodell to support on the appointment and
bilateral relationship.
Chief of Army, Lieutenant General Simon Stuart AO DSC to support on Army, 7th
Brigade and personnel.
First Assistant Defence Security, Peter West to support on security checks/clearance.
Head of the Afghanistan Inquiry Response Task Force, Rear Admiral Brett Wolski to
support on command accountability.
Key Messages
Australia takes the allegations made in recent media reporting seriously.
Defence encourages those who are making allegations in the media to engage with
the appropriate authorities to have the matters investigated.
Defence recognises there were short comings in the process of the appointment of
Colonel Penioni (Ben) Naliva. This is being addressed.
The ADF is providing welfare support to the officer and his family and we will
continue to work with the Fijian Government.
Talking Points
Defence takes all allegations of wrongdoing seriously.
We encourage anyone with allegations of wrongdoing to contact the appropriate
authorities.
Defence recognises there were shortcomings with the process of the appointment of
Colonel Naliva. This is being addressed.
This includes, in this case, the appointing officer not having a full view of all the
information.
Defence is currently conducting a holistic check, across all relevant arms of
government, to ensure a full view of relevant information, before the current
questions concerning Colonel Naliva can be resolved.
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
Defence is concurrently strengthening the processes for appointing international
seconded officers into the ADF, so as to ensure the checks are consistent with
other ADF appointments.
Defence acknowledges these allegations raise concerns of command credibility.
Defence conducts a fit and proper persons check on all ADF personnel who seek
senior leadership appointments, and the same process must apply to
international seconded officers.
Defence did not conduct our own independent fit and proper persons check on
Colonel Naliva.
Defence is updating this process to ensure all of our internationally seconded
officers meet the same stringent requirements applied to our own officers.
The ADF is providing welfare support to Colonel Naliva and his family.
It is important to note these allegations have only been made in the media, and
Colonel Naliva has not had the opportunity to defend himself through proper
legal processes.
The Government of Fiji has provided repeated assurances that Colonel Naliva has
passed all required security checks in Fiji.
If pressed: Have you personally been in contact with Commander Republic of Fiji Military
Forces?
Yes, I have had a phone call with Major General Jone Kalouniwai.
If pressed: Will Defence now conduct a check on Colonel Naliva?
Defence is currently conducting checks across government to ensure we have a full
view of all information relevant to Colonel Naliva.
Until these checks have occurred it would be inappropriate to comment further.
If pressed: Can Defence provide assurances that there are no other international embeds
currently in the ADF who also wouldn’t pass the fit and proper person check?
We are strengthening the processes for appointments. Once complete we will review
all current and future appointments under this framework.
In total, there are 16 seconded officers from Pacific Island countries in the ADF.
Of the 16 seconded officers from Pacific Island countries, there are a total of four
Defence Cooperation Program seconded officers embedded in command level
positions in the ADF that Pacific Division has responsibility for.
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
These four officers include two from Fiji (a Colonel in 7th Brigade and a Captain in
Navy Headquarters), one from Papua New Guinea (a Colonel in 3rd Brigade) and
one from Tonga (a Captain in 1st Brigade).
If pressed: Is Colonel Naliva being held to a different standard than his ADF counterparts?
All seconded international military officers are subject to Australian laws and are
required to adhere to the same Defence Values and Behaviours expected of ADF
officers.
Colonel Naliva has acknowledged the conditions of his secondment in Australia
under the auspices of the Defence Cooperation Program.
If pressed: Who appointed Colonel Naliva as Deputy Commander 7th Brigade?
As Chief of the Defence Force, I am ultimately responsible for all Command
appointments in the ADF.
There was a process for the appointment of Colonel Naliva to the position of
Deputy Commander 7th Brigade; however, it is clear there were shortcomings as
I did not have full view of this process and all of the information.
If pressed: Was Defence aware of the al egations against Colonel Naliva prior to his
appointment?
The allegations have been in the public domain since at least 2011, and parts of
Defence were aware of the allegations prior to the appointment.
If pressed: What checks were undertaken prior to his appointment?
The Government of Fiji provided assurances Colonel Naliva passed all required security
checks in Fiji. They confirmed Colonel Naliva has not been investigated for, convicted or
charged of any crimes under Fijian law.
Colonel Naliva has acknowledged the conditions of his secondment in Australia under
the auspices of the Defence Cooperation Program. All foreign embedded personnel are
required to hold an appropriate security clearance at the relevant level prior to
accessing Australian classified or sensitive information.
Where the engagement is outside the scope of a security information agreement,
Australia may conduct a security clearance process in accordance with the
Protective Security Policy Framework.
If pressed: Does Colonel Naliva have a security clearance? Or access to sensitive/classified
information?
Defence does not comment on individual security clearances.
The Australian Army has taken steps to ensure security of classified information, and
has briefed him on security protocols and requirements.
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
Phone:
s47E(d)
/
s22
Phone:
s47E(d)
/
s22
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
If pressed: What duties is Colonel Naliva currently conducting as Deputy Commander 7th
Brigade?
Colonel Naliva was directed to work from home on 2 February 2024 for welfare
reasons.
The duties of the Deputy Commander are determined by the Brigade Commander.
Colonel Naliva does not have legal authority over ADF personnel.
Seconded international officers do not have legal authority over ADF personnel.
They use influence and engagement in their roles to contribute to their units.
Army is providing welfare support to Colonel Naliva and his family.
If pressed: Has Australia complied with its obligations under the United Nations Convention
against Torture?
Defence takes Australia’s international law obligations seriously.
The Convention against Torture requires Australia to undertake a ‘preliminary
examination’ of any allegations of torture to determine whether a further investigation
is required. This obligation was met in 2016 when the Department of Foreign Affairs
and Trade advised the Australian Federal Police of the allegations against
Colonel Naliva.
We are not aware of any new allegations against Colonel Naliva that would trigger the
obligation to undertake a further examination.
If pressed: Whether al eged actions by a Fijian military officer could enliven Leahy Law
considerations in Australia?
Leahy Law is a consideration of the United States Government.
Background
Colonel Naliva
In October 2022 Australia and Fiji agreed to pursue command level secondments into
the ADF under the Vuvale partnership.
In November 2022 Colonel Naliva was nominated by the Republic of Fiji Military Forces
to attend the Defence Strategic Studies Course in 2023 to be a senior embedded officer
to the ADF, beginning in 2024.
In April 2023 Australia formally offered two command level secondments to the Fijian
military, including the position of Deputy Commander 7th Brigade.
The Republic of Fiji Military Forces nominated Colonel Naliva for the position. He was
appointed under the auspices of the Defence Cooperation Program as a seconded
international officer, managed by Pacific Division in the Strategy, Policy, and Industry
Group.
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
Defence received assurances from the Government of Fiji that Colonel Naliva passed all
the required Fiji Police and Fiji national security checks prior to his appointment as
Deputy Commander.
Colonel Naliva has not been convicted or charged of any crimes under Fijian law
in relation to these allegations at this time.
Colonel Naliva applied for and was granted an Australian visa to take up his
appointment as Deputy Commander 7th Brigade, and to take undertake study at the
Australian War College in 2023.
Colonel Naliva completed the Defence and Strategic Studies Course at the Australian
War College in 2023. Colonel Naliva also graduated from the Royal Military College
Duntroon in 1997.
Colonel Naliva has previously deployed on a number of United Nations peacekeeping
missions as an officer in the Republic of Fiji Military Forces, including to Lebanon,
Timor-Leste, South Sudan and Iraq.
Leahy Laws
The United States ‘Leahy Law’ (pronounced ‘Lay-ee’) prohibits the use of United States
funds to provide training, equipment or other assistance to ‘any unit of the security
forces of a foreign country’ where the United States Secretary of Defense has credible
information that such unit has committed a gross violation of human rights, including
credible information concerning an individual in that unit.
The Leahy vetting team at the relevant United States Embassy conducts this vetting
process.
Supporting Information
Questions on Notice
No QoNs asked.
Freedom of Information (FOI) Requests
On 12 February 2024, an individual made a request seeking access to documents
relating to the appointment of Colonel Naliva. Defence is currently reviewing the
request.
Recent Ministerial Comments
The Assistant Minister for Defence responded to questions in an interview on ABC RN
Drive regarding the appointment of Colonel Naliva on 30 January 2024.
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
Relevant Media Reporting
On 12 February 2024, The Australian published reporting by Stephen Rice highlighting a
prominent lawyer’s recommendation that these allegations should be investigated by
the Australian Federal Police.
On 9 February 2024, The Australian published reporting by Stephen Rice that
highlighted that ‘the ball is in Australia’s court’ in respect to Colonel Naliva’s
appointment.
On 9 February 2024, the Fiji Sun reported that Major General Kalouniwai had written to
Australia’s Chief of the Defence Force.
On 8 February 2024, the Fiji Sun reported on Minister Tikoduadua’s comments on
Colonel Naliva’s appointment into the ADF.
On 5 February 2024, Radio New Zealand reported that the Republic of Fiji Military
Forces would stand by its appointment of Colonel Naliva.
On 5 February 2024, the Fiji Times published quotes from the Republic of Fiji’s Military
Forces Commander, Major General Kalouniwai, on Colonel Naliva’s appointment.
On 5 February 2024 the ABC published a radio broadcast highlighting Amnesty
International’s concerns about the appointment of Colonel Naliva.
On 3 February 2024 The Australian published reporting by Stephen Rice that asserted
foreign military personnel should be required by law to undergo vetting prior to joining
the ADF.
On 2 February 2024 The Australian published reporting by Stephen Rice that highlights
comments by Senator Jacqui Lambie on allegations made against Colonel Naliva.
On 31 January 2024 Defence Connect published reporting by Robert Dougherty on
allegations made against Colonel Naliva.
On 31 January 2024 The Australian, in an editorial, called for accountability and clear
explanation for the appointment of Colonel Naliva.
On 31 January 2024 The Australian published reporting by Stephen Rice that Defence
principally relied on the assurances of the Fijian Government for the appointment of
Colonel Naliva.
On 1 February 2024 The Australian published reporting by Stephen Rice that highlights
an interview of Sm Speight, one of the accusers of Colonel Naliva, from his home in
New Zealand. He expresses his concern and disappointment at the appointment of
Colonel Naliva.
On 30 January 2024 The Australian published reporting by Stephen Rice on the
appointment of ‘accused torturer’ Colonel Naliva as Deputy Commander 7th Brigade.
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
Phone:
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Phone:
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Defence FOI 680/23/24
Additional Estimates February 2024
PDR No: SB24-000209
Last updated: 12 February 2024 Deputy Commander 7th Brigade
Key witnesses: General Angus Campbell; Susan Bodell; Lieutenant General Simon Stuart; Peter West;
Rear Admiral Brett Wolski
Division:
Strategy, Policy, and Industry Group
PDR No:
SB24-000209
Prepared by:
Cleared by Division Head:
Brigadier Nerolie McDonald
Susan Bodell
Director General
First Assistant Secretary
Pacific and Timor Leste
Pacific
Mob:
s22
Ph:
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Mob:
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Ph:
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Date: 12 February 2024
Date: 12 February 2024
Consultation:
Security and Estate Group, Army
Headquarters, Afghanistan Inquiry
Taskforce, International Policy Division,
Office of the Chief of Personnel, Defence
Legal, Office of Chief of Defence Force
Cleared by Deputy Secretary:
Hugh Jeffery
Date: 12 February 2024
Deputy Secretary
Strategy, Policy, and Industry Group
Prepared By:
Cleared By:
Name: Brigadier Nerolie McDonald
Name: Hugh Jeffery
Position: Director General Pacific and Timor Leste
Position: Deputy Secretary
Division: Pacific
Group/Service: Strategy, Policy, and Return to Index
Industry
Phone:
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Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates: February 2024
PDR No: SB24-000215
Last updated: 09 February 2024
Uncrewed Aerial Systems
Key witness: Vice Admiral David Johnston
Uncrewed Aerial Systems
Handling Note:
Vice Chief of Defence Force, Vice Admiral David Johnston to lead.
Questions on capability already in service or being trialled are to be directed to the
respective Service Chiefs or Heads of Capability.
Key Messages
Defence has operated numerous drone technologies for many years, also known as
remotely piloted aerial systems, during many Defence operations.
The Defence Strategic Review made clear that new technology and asymmetric
advantage are operational priorities for Defence. Uncrewed systems provide
opportunities for quicker technology refreshes and to scale capability when needed.
Defence is prioritising the acquisition of uncrewed systems for use in maritime, land
and air domains. Uncrewed Aerial Systems already in service conduct non-lethal
intelligence, surveillance and reconnaissance to contribute to the ADF’s capability. To
supplement these Defence has a number of evaluation and acquisition programs in
progress to provide varied capability options for the ADF focused on the
requirements for Australia’s area of military interest.
Defence is also trialling a variety of low-cost, expendable systems that can be
produced at scale in addition to highly advanced, extremely capable systems able to
operate in a variety of environments. These trials will inform investment decisions.
Systems to counter uncrewed capabilities exist in Defence platforms. Emergent
technologies are being considered, including to ensure policy and legal
considerations are addressed.
The capability priorities and plan needed to implement the Defence Strategic Review
will be considered by Government and finalised in the context of the 2024-25 Budget
and 2024 National Defence Strategy.
Is the ADF behind in drone development?
Defence has operated numerous drone technologies for many years, also known as
remotely piloted aerial systems during many Defence operations. These include the
Heron (Israel Aerospace Industries), Shadow (AAI Corporation), Black Hornet
(FLIR Unmanned Aerial Systems), WASP (AeroVironment), and Scaneagle (Insitu)
remotely piloted aerial systems.
Defence is trialling a variety of smaller, low-cost, expendable systems that can be
produced at scale to inform investment decisions, in addition to highly advanced,
extremely capable systems able to operate in a range of operational environments.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force
Phone:
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OFFICIAL
Supplementary Budget Estimates: February 2024
PDR No: SB24-000215
Last updated: 09 February 2024
Uncrewed Aerial Systems
Key witness: Vice Admiral David Johnston
These asymmetric capabilities will be capable of a wider range of tasks from
intelligence, surveillance, reconnaissance and electronic warfare through to delivery of
lethal effects.
Defence is prioritising the rapid and flexible acquisition of asymmetric capabilities:
In November 2023 the Advanced Strategic Capabilities Accelerator issued the
Defence Sovereign Uncrewed Aerial Systems challenge. On 30 January 2024 the
Minister for Defence Industry announced that over $1.2 million had been
invested in contracts to 11 companies, allowing for acceleration of generational
developments in uncrewed systems to replace existing capabilities already in
service with Defence. Companies will deliver production plans and prototypes
from March 2024 with a demonstration in April 2024.
In late 2023 a successful AUKUS trial of autonomous ground robotic vehicles in
South Australia observed how autonomous vehicles responded when subject to
electronic warfare to ensure capability resilience and enhance interoperability.
In December 2023 the Defence Ministers of the three AUKUS countries
announced that resilient and autonomous artificial intelligence technologies
would be integrated into national programs in 2024.
To supplement existing Uncrewed Systems already in service, Defence has additional
evaluation programs in train that appropriately reflect our operational circumstances
and environment and deliver on Defence Strategic Review priorities:
Uncrewed undersea warfare exercises allow Defence to lift its capacity to rapidly
translate disruptive new technology into capability, in close partnership with
Australian industry, as recommended in the Defence Strategic Review. On
3 November 2023 Defence conducted Exercise AUTONOMOUS WARRIOR, testing
a range of autonomous technologies above, below and on the ocean’s surface at
Jervis Bay. The exercise provided a controlled environment to continue
developing trusted autonomy and to ensure these systems complement Navy’s
submarine and surface fleet.
On 19 September 2023 the Government the approved acquisition of the fourth
MQ-4C Triton plus its associated support and mission systems.
The collaborative partnership between Defence and Anduril Australia will
produce three Extra-Large Autonomous Underwater Vehicle prototypes, known
as Ghost Shark, by the end of 2025.
Defence continues to assess the MQ-28A Ghost Bat through systematic testing in both
live and digital environments, with a capability demonstration with the United States
planned for late 2025. The MQ-28A Ghost Bat is a developmental program that
explores new collaborative combat aircraft technology.
Air Force, in the collaboration with Defence Science and Technology Group, have
developed Wanderer, a low-cost, long range, autonomous UAS. If assessed as suitable,
Wanderer would require an industry partner(s) to enable scaled production.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force
Phone:
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OFFICIAL
Supplementary Budget Estimates: February 2024
PDR No: SB24-000215
Last updated: 09 February 2024
Uncrewed Aerial Systems
Key witness: Vice Admiral David Johnston
Army is also trialling small ground robots and autonomous and remote sensor and
weapons platforms. These are small, low-cost systems and largely disposable. Army has
converted a number of armoured personnel carriers (M113) to Optionally Crewed
Combat Vehicles and conducted weapon firings in an uncrewed mode, both from static
positions and on the move. This is continuing to expand into counter-drones in 2024.
What is Defence doing to protect against drone attacks?
Defence requires a range of systems to counter the various threats presented by
Uncrewed Systems. Defence fields a variety of counter-drone detection and monitoring
systems across airbases, ports and barracks, in conjunction with other Government
agencies. These systems provide early warning and identification of potential threats
allowing appropriate response actions to be taken in accordance with Australian law.
Defensive systems that target crewed systems can also be used against uncrewed
systems. Defence fields many pre-existing capabilities that can identify uncrewed
systems, interfere with their control systems or deceive their sensors, and neutralise or
destroy them.
There is a suite of capabilities currently in-service. Additional enhancements to these
systems and new capabilities are being expedited through advanced testing. Additional
investment in many of these systems remains classified for national security reasons.
Defence has:
invested in electronic warfare, such as Electronic Counter Measures on vehicles,
to provide protection for ADF personnel; and
prioritised Australia’s integrated air and missile defence capabilities in response
to the Defence Strategic Review’s recommendations.
Land systems
Defence will provide options for Government consideration of Counter-Uncrewed
Aerial Systems capabilities that are being developed under LAND 156 for domestic and
deployed use.
Defence will acquire capable counter-drone capabilities to be fitted to new armoured
vehicles.
In 2024 Army will conduct live-fire trials of sovereign counter-drone systems. This
includes passive systems and combinations of hard-kill systems. The trials will include
capabilities identified at the annual Army Innovation Day 2023 where six vendors
successfully pitched their products and are now contracted to progress their
technology with Army.
What is Defence doing to shift the mindset for procurement?
Defence is undertaking significant procurement reform to reduce the time and
complexity of industry engagement, solicitation and source selection process, reducing
time and cost for both industry and Defence, focussing on delivering capability faster to
the warfighter.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force
Phone:
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Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates: February 2024
PDR No: SB24-000215
Last updated: 09 February 2024
Uncrewed Aerial Systems
Key witness: Vice Admiral David Johnston
In line with the Government’s response to the Defence Strategic Review Defence is
progressing the development and testing of a range of new capabilities across the
maritime, land, and air domains that are more rapidly procured and replaceable when
compared to traditional systems.
On 30 January 2024 the Minister for Defence Industry made an announcement
regarding aerial drone development, through the Advanced Strategic Capabilities
Accelerator, is a key example of Defence’s mindset shift to adapt to Australia’s
changing strategic circumstances and implement Defence Strategic Review initiatives.
How is Defence engaging with Australian industry for the development of drone capabilities?
In response to Government direction, Defence is accelerating the delivery of the next
generation of uncrewed systems with a focus on enhancing opportunities for Australian
industry involvement:
Several acquisition projects related to autonomous vehicles totalling around
$4 – 6 billion, including Ghost Bat and Triton.
Research and Development programs of approximately $60 million domestically
and $10 million internationally from partnerships and industry.
Defence Science, Technology and Research Shot program funding is aligned to
Autonomous Systems and drone technologies and is in the order of $1-2 million.
On 31 July 2023 the Advanced Strategic Capabilities Accelerator released its first
challenge, seeking to stimulate industry collaboration to achieve a sovereign, very small
Uncrewed Aerial System appropriate for training, surveying, photographic, and
Intelligence, Surveillance, and Reconnaissance purposes.
The first challenge capability requirements have been agreed to in consultation
with Defence and other Commonwealth agencies including the Australian Border
Force, Australian Federal Police and the Australian Criminal Intelligence
Commission.
In November 2023 the Advanced Strategic Capabilities Accelerator issued an Invitation
to Register Interest to build a sovereign drone, with selected respondents entering
short-term development contracts to deliver production plans and prototypes from
March 2024.
In December 2023 selected respondents signed short-term development
contracts to deliver individual production plans and prototypes from March 2024,
followed by demonstration of their prototype.
Army is working with Australian industry to develop a prototype counter-drone
capability. This capability will enable land vehicles with a remote weapons station to
track and destroy drones.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force
Phone:
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Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates: February 2024
PDR No: SB24-000215
Last updated: 09 February 2024
Uncrewed Aerial Systems
Key witness: Vice Admiral David Johnston
The Advanced Strategic Capabilities Accelerator established a Technical Advisory Group
with experienced representatives from across Defence and other Commonwealth
agencies to develop the shortlist of companies to approach to respond to this
Invitation.
The purchase of an additional Triton will enhance operations from Australia's northern
bases and will enhance Australia’s surveillance of the Northern approaches of Australia.
Exercise Autonomous Warrior
On questions related to Exercise AUTONOMOUS WARRIOR, refer to the Chief of Navy.
AUKUS Pillar II
On questions related to AUKUS Advanced Capabilities, refer to the Deputy Secretary
Strategy, Policy and Industry.
Background
Counter-Drones
The Chief of Navy is the Capability Manager for undersea autonomous vehicle
capabilities.
The Chief of Army is the Capability Manager for Counter-Uncrewed Aerial Systems for
smaller drones.
The Chief of Air Force is the Capability Manager for the targeting of larger drones as
part of Integrated Air and Missile Defence.
Supporting Information
Questions on Notice:
No QoNs asked.
Freedom of Information (FOI) Requests:
No FOIs requested
Recent Ministerial Comments:
On 9 February 2024, the Minister for Defence Industry announced an additional $399
million for the ongoing development of the MQ-28A Ghost Bat.
On 1 February 2024 the Deputy Prime Minister and the Minister for Foreign Affairs
met their New Zealand counterparts on AUKUS Pillar II: Australia working towards
'seamless' military with NZ
On 1 December 2023, at the second AUKUS Defence Ministers’ Meeting, the Deputy
Prime Minister reviewed the ‘exceptional progress’ made since announcement of the
Optimal Pathway and the significant work underway in enhancing our shared
capabilities under Pillar II of AUKUS.
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force
Phone:
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Defence FOI 680/23/24
OFFICIAL
Supplementary Budget Estimates: February 2024
PDR No: SB24-000215
Last updated: 09 February 2024
Uncrewed Aerial Systems
Key witness: Vice Admiral David Johnston
Relevant Media Reporting
On 9 February 2024 The Australian Financial Review published an article, in which
Andrew Tillett reported Too old, too slow: Marles’ mission to shakeup Defence.
On 1 February 2024 Sky News Regional reported Australian Army behind game on
killer drones.
On 31 January and 1 February 2024 multiple articles were published in The Australian
regarding out of date drones being used by the ADF. We can’t keep droning on about
doing little and Eight-year wait for anti-drone solution as radical ideas take flight.
In November 2023 Australian media reported positively following Exercise
AUTONOMOUS WARRIOR. Defence tests autonomous and uncrewed systems and
ADF personnel have taken the 'Devil Ray' unmanned surface vessel for a spin
On 7 October 2023 Greg Sheridan claimed that the acquisition of a fourth Triton
drone is a ‘stupid decision’. The Seinfeld Defence.
Division:
Force Design Division
PDR No:
SB24-000215
Prepared by:
Cleared by Group/Service Head:
Major General Anthony Rawlins
Vice Admiral David Johnston
Head Force Design
Vice Chief of the Defence Force
Mob: s22
Ph: s47E(d)
Mob: s22
Ph: s47E(d)
Date: 29 January 2024
Date: 8 February 2024
Consultation:
Advanced Strategic Capabilities Accelerator
AUKUS Advanced Capabilities
Cleared by DSR:
Date: 7 February 2024
Major General Matthew Pearse
Head Plans and Capability Integration
Defence Strategic Review Implementation
Taskforce
Mob: s22
Ph: s47E(d)
Prepared By:
Cleared By:
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Return to Index
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force
Phone:
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Phone:
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