ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
         2021-22 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, Chris Deeble, to 
lead on the Report’s overall outcomes and the process for production of the Report. 

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 and/or Capability Manager will lead project-specific 
questions.
Key Messages

The Australian National Audit Office released the 2021-22 Major Projects Report, 
developed jointly with the Department of Defence, 9 February 2023.

The report confirms that within the 2021-22 review period, the 21 projects, valued at 
$59 billion, have performed strongly and steadily against the measures of scope and 
cost.

Schedule performance continues to be an area for improvement, however, the 
Report did not identify performance issues that Defence was not already alert to and 
managing.

The Joint Committee of Public Accounts and Audit published on 29 June 2023 Report 
469: Inquiry into the Defence 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 that the Major Projects 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, currently under development for tabling in 
Parliament in November 2023, considers 20 Defence major projects.
Talking Points
2021-22 Project Performance

The 2021-22 Major Projects Report confirms that none of the 21 projects had a real 
cost increase in the 2021-22 financial year.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
         2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.

The 2021-22 Major Projects Report confirms that 10 out of 14 projects with reported 
and published Final Operational Capability forecast dates reported no in-year schedule 
variation.
Why has Defence chosen not to publish some information in this report?

Defence has not published some detailed project performance information on some 
projects, due to national security concerns.

Defence supplied the Australian National Audit Office with all information deemed ‘not 
for publication’ so they could conduct an assurance review.

Defence understands the importance of transparency and accountability with regards 
to spending public money. Defence notes transparency must be achieved through 
processes that protects 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.

During the preparation of the 2021-22 Major Projects Report, Defence provided the 
Australian National Audit Office with full project schedule information as required. 
While the Australian National Audit Office considers that inclusion of ‘not for 
publication’ information prevents it from being able to report a longitudinal analysis of 
schedule performance; the reporting of schedule performance remains a matter for 
them.
Has there been a ‘cost blowout’ for these projects?

Budget variations occur as a result of changes to scope or real cost, scope transfers 
between projects, and foreign exchange adjustments endorsed by 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 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 were withheld on security grounds. Additionally, four projects did 
not have forecast dates to be published 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 Government as at 
30 June 2022.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.

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 key achievements for Defence including 
the:

Maritime Operational Support Capability declared Initial Operational Capability 
for the first Supply-class replenishment ship, HMAS Supply, and commissioned 
the second ship HMAS Stalwart in the Royal Australian Navy.

gifting of two Guardian Class Patrol Boats to the Pacific Island Countries of the 
Federated States of Micronesia and the Cook Islands.

first Arafura Class Offshore Patrol Vessel NUSHIP Arafura, launched on 
16 December 2021.
Treatment of Defence Security Information

The need to balance transparency, accountability and security is necessitating a change 
in mindset and practice in the communication of Defence capability given the current 
strategic environment.

Defence and the Government will carefully consider future public reporting and ensure 
it is transparent and in the national interest.
Background JCPPA 496 Audit Recommendations

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 in the Report has not 
been prepared in accordance with the Guidelines of the Parliamentary Joint Committee 
for 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. Discussion at a public hearing on 
19 May 2023 in relation to the inquiry 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 Major Projects Report.

On 29 June 2023, the Chair of the Joint Committee of Public Accounts and Audit 
released Report 496: Inquiry into the Defence Projects Report 2020-21 and 2021-22 and 
Procurement of Hunter Class Frigates. Defence is considering the recommendations 
(due for Defence clearance 16 October 2023).
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.

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 respect to 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 Australian National Audit Office 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 under DEFGRAM 603/2022 released 
19 December 2022. The JCPPA and ANAO believe further definitional work 
should have been completed. VCDF Group is working to close this aspect of 
the recommendation and Integrity Division is to provide a response as to 
the mechanism for closing recommendations.

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.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.

Defence and the Australian National Audit Office are working together to introduce 
incremental improvements, consistent with the guidance from the Joint Committee for 
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 
currently under development for tabling in Parliament in November 2023.
2021-22 and 2022-23 Treatment of Defence Security Information

In accordance with the Joint Committee for 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 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, which has resulted in the Australian National Audit Office not publishing a 
complete analysis of schedule performance and including commentary to suggest that 
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 for the reader’s understanding.

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.

While the information is not published, the Australian National Audit Office has review 
the material.
Supporting Information
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
s47E(d)
/ 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
Questions on Notice
Joint Committee on Public Accounts and Audit 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

No FOIs requested.
Recent Ministerial Comments

No recent comments.
Relevant Media Reporting

On 5 September 2023, The Mandarin reported that the Auditor-General called for 
more accountability and integrity in the public sector.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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/ 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
Division:
Strategy, Planning and Independent Assurance Division
PDR No: 
SB23-000708
Prepared by:
Cleared by Division Head:
Myles Mahood
Suzanne Kerrigan
Acting Assistant Secretary 
Acting First Assistant Secretary
Project and Portfolio Management Office
Strategy, Planning and Independent 
Assurance Division
Mob:  
s22
Ph: 
s47E(d)
s22
s47E(d)
Date: 5 September 2023
Mob:  
Ph: 
Date: 6 September 2023
Consultation:  
Date:  29 August 2023  
Major General Anthony Rawlins
Mob:  
s22
Ph: 
s47E(d)
Head Force Design
Force Design Division
Cleared by CFO / DPG / DSR:
N/A
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 7 September 2023
Chris Deeble
Deputy Secretary,
Capability Acquisition Sustainment Group
Questions on notice referred to within the brief:
Joint Committee on Public Accounts and Audit 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
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-
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
Joint Committee on Public Accounts and Audit 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?
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
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s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
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.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
Joint Committee on Public Accounts and Audit 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 
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 
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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 
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.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
Joint Committee on Public Accounts and Audit 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
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.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
Joint Committee on Public Accounts and Audit 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
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
x
Offshore Patrol Vessel (SEA 1180 Phase 1)
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.
x
Collins Class Communications and Electronic Warfare Program (SEA 1439 Phase 5B2)
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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.
x
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.
x
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.
x
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.
x
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:
x
Increased rate of Defence and industry engagement, building on the Ministerial calls 
with industry leaders and industry groups.
x
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.
x
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 
payments up to two weeks earlier; maintaining cash flow in the economy, and 
protecting jobs.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
x
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:
x
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.
x
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.
x
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.
x
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.
x
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 
restrictions and the transitioning of production related work to Australia earlier than 
planned to mitigate this impact.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
x
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.
x
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:
x
Providing a coordination mechanism across the Australian Government for proposals 
from defence industry to support response efforts to COVID-19;
x
Proactively providing information to defence industry and industry bodies on Defence 
and Whole-of-Government response efforts and opportunities;
x
Engaging with the States and Territories to allow for defence industry activity to 
continue across Australia; and
x
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.
Joint Committee on Public Accounts and Audit 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
Question
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
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/ 
s22
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 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 
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
until project closure. Final Materiel Release milestone has been delayed more than eight 
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.
Joint Committee on Public Accounts and Audit 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:
x
The Future Submarine program was cancelled as a consequence of the AUKUS 
decision on 16 September 2021.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
x
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 
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.
x
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.
x
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.
x
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.
x
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.
x
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.
x
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.
x
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.
Joint Committee on Public Accounts and Audit 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.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
31. Does Defence undertake any compliance on lessons learned activities?
Answer
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.
Joint Committee on Public Accounts and Audit 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.
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
33. Defence provides full transparency to the ANAO of project information during its review 
and analysis. The current Joint Committee of Public Accounts and Audit MPR Guidelines 
require Defence to include detailed public information on projects via the format of the 
Project Data Summary Sheets. 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
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
Prepared By:
Cleared By: 
Name: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000708
Last updated: 7 September 2023
                2021-22 Major Projects Report
Key witnesses: Chris Deeble; Vice Admiral David Johnston.
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 
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: Myles Mahood
Name: Chris Deeble
Position: Acting Assistant Secretary Independent Project and 
Position: Deputy Secretary 
Portfolio Management Office
Group/Service: Capability Acquisition Sustainment 
Division: Strategy, Planning and Independent Assurance Division
Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  
Projects of Concern 
Handling Note:  
Deputy Secretary Capability Acquisition and Sustainment, Mr Chris Deeble to lead on the 
broad status of projects on the Projects of Concern list.  
 
Deputy Secretary Naval Shipbuilding and Sustainment Group, Mr Jim McDowell, and Head 
Patrol Boats and Specialist Ships, Rear Admiral Wendy Malcolm to lead on questions 
associated with acquisition of the Offshore Patrol Vessel. 
 
Head Joint Aviation Systems Division Major General Jeremy King to lead on questions 
associated with acquisition and sustainment issues for MRH90 Taipan. 
 
Head Air Defence and Space Systems Division, Air Vice-Marshal David Scheul, to lead on 
questions associated with acquisition of the Civil Military Air Traffic Management System 
(CMATS) and Satellite Ground Station – East and Wideband Satellite Communications 
(SATCOM) Network Management. 
 
Key Messages 

There are currently four Projects of Concern.

Multi-Role Helicopter (AIR 9000 Phase 2, 4 and 6) – elevated in November 
2011.  

Civil-Military Air Traffic Management System (AIR 5431 Phase 3) – elevated in 
October 2022.  

Satellite Ground Station – East and Wideband Satellite Communications 
(SATCOM) Network Management (JOINT 2008 Phase 5B2) – elevated in May 
2023. 

Offshore Patrol Vessel (OPV) (SEA 1180 Phase 1) – elevated in October 2023. 

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, with a noticeable impact 
on the level and vigilance of senior management attention to projects and 
sustainment products experiencing performance issues and challenges.
Talking Points 
What projects are currently on the Projects of Concern list? 

The current Projects of Concern are:  

Multi-Role Helicopter (AIR 9000 Phase 2, 4 and 6) – elevated in November 2011.  

Civil-Military Air Traffic Management System (AIR 5431 Phase 3) – elevated in 
October 2022.  
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
 Mob: s22
 
s47E(d)
 Mob: s22
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  

Satellite Ground Station – East and Wideband Satellite Communications 
(SATCOM) Network Management (JOINT 2008 Phase 5B2) – elevated in 
May 2023.

Offshore Patrol Vessel (OPV) (SEA 1180 Phase 1) – elevated in October 2023.
Multi-Role Helicopter  

This project was declared a Project of Concern in November 2011 due to poor engine 
reliability, technical issues and low availability rates impacting operational capability.
Protracted remediation activities and increased oversight associated with listing the 
MRH90 as a Project of Concern were unable to resolve many issues.

Project closure is on track to be achieved in Quarter 4, 2023.

On 29 September 2023, the Government announced the MRH90 would not return to 
flying operations. Defence is progressing removal of the platform from both the Project 
of Concern and Product of Interest list.  
Civil-Military Air Traffic Management System  

The Civil-Military Air Traffic Management System (CMATS) project (AIR 5431 Phase 3) 
was declared a Project of Concern in October 2022 due to significant schedule, 
technical and cost challenges. 

This project will provide the Defence element of a single national CMATS; and is being 
progressed jointly under the OneSKY Australia program with Airservices Australia. 

OneSKY is the most complex transformation of air traffic management in Australian 
aviation history, with CMATS the central and critical path element to Civil-Military 
harmonisation, establishing more flexible use of airspace where appropriate. 

Defence, Airservices Australia and Thales Australia have worked collaboratively to 
develop a Project of Concern remediation plan which aims to establish a more viable 
deployment strategy, establish a credible integrated master schedule and improve 
project governance and management efficiencies.  

Three Projects of Concern Summits for the CMATS have been held (2 December 2022, 
31 March 2023 and 19 September 2023).  
Satellite Ground Station – East and Wideband Satellite Communications (SATCOM) Network 
Management  

Satellite Ground Station – East and Wideband SATCOM Network Management System 
project (Joint Project 2008 Phase 5B2) was elevated to the Projects of Concern list in  
May 2023, due to ongoing schedule delays with software development of the network 
management system. 

This project will improve the operational performance and integrity of Defence’s 
satellite-communications network through:  

the procurement of Satellite Ground Station-East located at Kapooka Military 
Area, New South Wales; and  
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
 Mob: s22
 
s47E(d)
 Mob: s22
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  

an integrated Wideband SATCOM Network Management System to meet the 
increasing needs of the ADF and whole-of-government for satellite 
communications capacity. 

Northrop Grumman Australia is the Prime Systems Integrator for the Satellite Ground 
Station – East and Wideband SATCOM Network Management System.  

Elevation of the Satellite Ground Station – East and Wideband SATCOM Network 
Management System project to a Project of Concern was the most appropriate option 
for addressing the significant schedule challenges facing the project. 

To assist in remediation planning, Defence has increased the frequency of senior 
management engagement and is working closely with Northrop Grumman Australia to 
address the complex software development and integration issues that have resulted in 
delays and establish a realistic delivery schedule for the Project.  
Offshore Patrol Vessel  

Offshore Patrol Vessel (SEA 1180 Phase 1) was elevated to the Projects of Concern list 
on 20 October 2023 due to significant delays in delivery of vessels and the associated 
support system. 

The project will acquire 12 new vessels based on an existing design to replace and 
improve upon the capability delivered by the 13 Armidale Class Patrol Boats. 

Luerssen were chosen as the prime contractor. Two ships are under construction at 
Osborne Naval Shipyard, with the remaining 10 ships to be built at the Henderson 
Maritime Precinct. Five ships are currently under construction at Henderson.  

The first Offshore Patrol Vessel  due to be delivered in December 2021 was 
contractually extended by six months to June 2022 as a result of agreed COVID-19 
related delays, and now is scheduled to be delivered in Quarter 1, 2024. Subsequent 
Offshore Patrol Vessels are also incurring significant schedule delays. There is a high risk 
the support system will not be delivered prior to the completion of the first Offshore 
Patrol Vessel. 

Defence conducted an Independent Assurance Review which identified concern 
regarding the ongoing schedule delays, a risk the project would incur additional cost to 
resolve the existing issues, and Luerssen was facing significant financial and commercial 
pressures. The board recommended Defence consider listing the project as either a 
Project of Interest or Project of Concern.  

Defence is working closely with industry partners and Luerssen to develop a 
remediation plan that expedites the delivery of the ships currently under construction 
at Osborne, and establishes a credible integrated master schedule for the remaining 
vessels and support systems. 
 
 
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  
If asked: What is the Projects of Concern list? 

The Projects of Concern regime is a proven process for managing the remediation of 
underperforming projects. This is done by implementing an agreed plan to resolve 
significant commercial, technical, cost and/or schedule difficulties and increasing senior 
management and ministerial oversight.  
If asked: Who determines what project should be added to the Projects of Concern list? 

Entry to the Projects of Concern list, and exit from it, is decided by the Minister for 
Defence Industry. The decision is based on a set of principles to provide a basis to 
recommend that a project be placed on the list.  
What measures are being implemented to assure oversight over Defence’s Projects of Concern 
process? 

Since October 2022, monthly performance reports on Projects of Concern and Projects 
of Interest (as part of broader acquisition and sustainment performance reporting) and 
their remediation activities have been provided to the Deputy Prime Minister and 
Minister for Defence Industry.  

A revised policy on the Projects and Products of Interest and Concern regime was 
published on 28 February 2023. This includes more vigilant line management oversight 
of performance and the identification, management and mitigation of risk in project 
and product delivery; and the implementation of the requirement for agreed 
remediation plans. 

There is now a tiered process of placing projects and products with significant risks, 
issues, or challenges on a Group Watch List and possible subsequent elevation to the 
Projects of Interest or Projects of Concern lists.  

For more significant risks, issues or significant actual or anticipated breaches of project 
parameters (scope/capability, schedule, budget), consideration is given by the Group 
Head to placing the project or product on the Project/Product of Interest List, or 
recommending to the Minister of Defence Industry that the project or product be 
placed on the Project/Product of Concern List.  
 
 
 
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
 Mob: s22
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  
Supporting Information 
Questions on Notice  
Senate Estimates Question, 18 November 2022 
QoN 75 (Portfolio Question Number 46, 2022), Senator Jim Molan (Australian Liberal 
Party, New South Wales) asked several performance reporting questions. TTabled 16 
December 2022. 
Freedom of Information (FOI) Requests  
˜
On 10 October 2022, a media organisation made a request seeking ‘the latest copies of 
the Projects of Concern and Projects of Interest reports’. D
Documents were released 
23 November 2022 (FOI 195/22/23). 
Recent Ministerial Comments  
˜
On 2 December 2022, the Ministerial Media Release, Projects of concern summit held 
in Canberra, was published regarding the summit held that day that focussed on the 
discussion of the Civil Military Air Traffic Management System (CMATS). 
˜
On 27 October 2022, the Ministerial Media Release, Update on Projects of Concern, 
published by the Minister for Defence Industry, announced the removal of the 
Deployable Defence Air Traffic Management and Control System and the elevation of 
the CMATS to the Project of Concern list. 
˜
On 10 October 2022, the Deputy Prime Minister and Minister for Defence Industry 
issued a Joint Media Release, Quality of Defence spending top priority for Albanese 
Government. 
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, 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, about the Civil-Military Air Traffic Management 
System (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 same 
day, about the Civil-Military Air Traffic Management System (OneSKY-CMATS) project. 
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  
 
 
Division:  
Strategy, Planning and Independent Assurance Division 
PDR No:  
SB23-000959 
Prepared by: 
Cleared by Division Head:  
Myles Mahood, Acting Assistant Secretary 
Suzanne Kerrigan, Acting First Assistant 
Independent Project and Portfolio 
Secretary,  
Management Office, Strategy, Planning and 
Strategy, Planning and Independent 
Independent Assurance Division 
Assurance Division 
Mob:  
s22
 
Ph: 
s47E(d)
 
Mob:  
s22
 
Ph: 
s47E(d)
 
Date: 11 October 2023 
Date: 20 October 2023   
Consultation:   
 
Head of Air Force Capability 
Date:  27 September 2023   
Air Vice Marshal Wendy Blyth 
Mob:  
s22
 
Ph: 
s47E(d)
 
 
 
Commander Defence Space Command 
Date:  27 September 2023 
Air Vice-Marshal Catherine Roberts 
Mob:  
s22
 
Ph: 
s47E(d)
 
 
 
Head Navy Capability 
Date:  11 October 2023 
RADM Stephen Hughes 
Mob:  
s22
 
Ph: 
s47E(d)
 
Cleared by CFO / DPG / DSR: 
N/A 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
 
Chris Deeble, Deputy Secretary 
Date: 23 October 2023   
Capability Acquisition and Sustainment Group 
 
 
 
Jim McDowell, Deputy Secretary  
Date: 16 October 2023 
Naval Shipbuilding and Sustainment Group  
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
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s47E(d)
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  
Questions on notice referred to within the brief: 
Senate Estimates Question, 18 November 2022 
Program Governance  
Senator Jim Molan    
 
Question 75, Portfolio Question Number 46 
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 
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 
 
 
 
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
 Mob: s22
 
s47E(d)
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000959  
Last updated: 23 October 2023 
 
 
 
 
 
    Projects of Concern  
Key witnesses: Mr Chris Deeble, Mr Jim McDowell, Rear Admiral Wendy Malcolm, Major General Jeremy King, 
Air Vice-Marshal David Scheul  
Answer, 16 December 2022  
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 CMATS 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 CMATS project (AIR 5431 Phase 3). 
 
Prepared By: 
Cleared By:  
 
Myles Mahood 
Chris Deeble 
Acting Assistant Secretary Independent Project and Portfolio 
Deputy Secretary  
Management Office 
Capability Acquisition Sustainment Group 
Strategy, Planning and Independent Assurance Division 
s47E(d)
 Mob: s22
 
s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
Implementation of Government Priorities to Improve Project Reporting and 
Performance
Handling Note: Deputy Secretary, Capability Acquisition and Sustainment, Chris Deeble to 
lead on reform measures.
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 is progressing all six measures. Already, there is a noticeable improvement 
in senior management’s vigilance and oversight of projects and sustainment products 
that had experienced performance issues and challenges. 
Talking Points
Measure 1 – Establishing an independent projects and portfolio management office within 
Defence.

The Strategy, Planning and Independent Assurance Division was established on 
6 March 2023. 

Within this Division, the Independent Project and Portfolio Management Office 
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 offer 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 (as Minister for Defence) and Minister for Defence Industry.

Since October 2022, monthly performance reports on Projects of Concern and Projects 
of Interest (as part of broader acquisition and sustainment performance reporting) and 
their remediation activities have been provided to the Deputy Prime Minister and 
Minister for Defence Industry. 

The reporting covers: Capability Acquisition and Sustainment Group; Naval Shipbuilding 
and Sustainment Group; Security and Estate Group; Guided Weapons and Explosive 
Ordnance Group; Chief Information Officer Group; Defence Science and Technology 
Group; and Defence Intelligence Group.
Prepared By:
Cleared By: 
Name: Suzanne Kerrigan
Name: Chris Deeble
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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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
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. It 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.

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 of Interest or Projects of Concern lists. 

For more substantial risks, issues or significant deviations (actual or anticipated) from 
project parameters (in, for instance, scope, schedule or budget), Group Heads may 
place projects or products on the Project/Product of Interest List or recommend to the 
Minister for Defence Industry it be placed on the Project/Product of Concern List. 
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. 

Defence seeks to foster a stronger culture of trust, sharing issues and concerns, and 
support from senior managers. While positive steps have been taken, this is ongoing 
and long-term work. 
Measure 5 – Providing troubled projects with extra resources and skills.

The revised policy reinforces the willingness of senior managers to assist and the 
availability of specialist resources and skills, including from the Independent Assurance 
Review team.

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.

Three Projects of Concern Summits have been held (2 December 2022, 
31 March 2023 and 19 September 2023).
Prepared By:
Cleared By: 
Name: Suzanne Kerrigan
Name: Chris Deeble
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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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
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. 

QoN 46, Defence spending, budgets and delays, Senator Jim Molan (New South Wales) 
asked several performance reporting questions.
Freedom of Information (FOI) Requests 

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments 

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, about the Civil-Military Air Traffic Management 
System (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 
Civil-Military Air Traffic Management System (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 Civil-Military Air Traffic Management System (OneSKY-CMATS) project.
Relevant Media Reporting 

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: 
SB23-000709
Prepared by:
Cleared by Division Head:
Suzanne Kerrigan
Suzanne Kerrigan
Acting First Assistant Secretary
Acting First Assistant Secretary
Prepared By:
Cleared By: 
Name: Suzanne Kerrigan
Name: Chris Deeble
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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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
Strategy, Planning and Independent 
Strategy, Planning and Independent 
Assurance Division
Assurance Division
Mob: s22
 Ph: s47E(d)
  
Mob: s22
 Ph: s47E(d)
  
Date: 29 August 2023
Date: 29 August 2023
Consultation: N/A
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary:
Date: 7 September 2023  
Chris Deeble 
Deputy Secretary
Capability Acquisition and Sustainment Group
Questions on notice referred to within the brief:
Supplementary Estimates
Senator Linda White  
Question Number: 8
Date question was tabled: 16 December 2022
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.
Prepared By:
Cleared By: 
Name: Suzanne Kerrigan
Name: Chris Deeble
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)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
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 
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.
Senate Estimates Question, 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 
Prepared By:
Cleared By: 
Name: Suzanne Kerrigan
Name: Chris Deeble
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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/ 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
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
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 
Prepared By:
Cleared By: 
Name: Suzanne Kerrigan
Name: Chris Deeble
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)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000709
Last updated: 7 September 2023
       
             Implementation of Government Priorities 
Key witness: Chris Deeble
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
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)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.
Nuclear-Powered Submarines
Handling Note: 

Secretary of Defence, Greg Moriarty, to refer questions to the Australian Submarine 
Agency. 

Questions regarding the Nuclear-Powered Submarines Regulator should be referred 
to Associate Secretary, Matt Yannopoulos. 
Key Messages

The acquisition of conventionally-armed nuclear-powered submarines is the single 
biggest leap in our military capability since the Second World War 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 6 May 2023, the Government announced its intention to establish a new 
independent statutory regulator, the Australian Nuclear-Powered Submarine Safety 
Regulator.

The Associate Secretary Group is leading the development of legislation that will 
implement Government’s approach.
AUKUS submarine proposals in United States’ Congress 
[Handling Note: Refer question to the Australian Submarine Agency]]

Congress is an important part of our work with the United States to ensure we have the 
necessary frameworks to enable AUKUS cooperation. 

We appreciate bipartisan Congressional support for AUKUS to date.

We are pleased to see the legislative proposals to enable AUKUS submarine 
cooperation are being considered by Congress. 

We acknowledge the ongoing US legislative process to debate and implement 
these proposals.
Program Funding
[Handling Note: Refer question to the Australian Submarine Agency]]

Over the Forward Estimates, the Government will invest $9 billion in the program. 

Over the decade (to 2032-33) we currently estimate funding for this program to be in 
the rough order of $50–58 billion.
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.

This includes funding to support the industrial base, workforce and infrastructure; 
the rotational presence of the United States and United Kingdom; and, Virginia 
class submarine-related acquisition and sustainment costs.

The Agency funding breakdown across the Forward Estimates and the decade are: 

$1.7 billion over the Forward Estimates (from 2023-24 to 2026-27).

$4.2 billion over the decade (from 2023-24 to 2032-33).

This funding was provided from the Defence Integrated Investment Program.
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 operations and 
sustainment; and

intermediate- and high-level waste, including spent fuel, that will be produced 
once Australia’s submarines reach end-of-life. 

No decision has been made on the location for the disposal of any form of radioactive 
waste from conventionally-armed, nuclear-powered submarines.
Submarine Rotational Force - West
[Handling Note: Refer question to the Australian Submarine Agency]]

Submarine Rotational Force – West, at HMAS Stirling, will build Australia’s ability to 
safely own, operate, maintain and sustain its own future nuclear-powered submarine 
capability, while having the added strategic benefit of facilitating a flexible and 
enhanced United States and United Kingdom presence in the Indo-Pacific.

Phase 1a involves more frequent and longer visits of United States and United Kingdom 
nuclear-powered submarines to HMAS Stirling, which will build Australia’s capacity to 
host and support a rotational presence under Submarine Rotational Force - West for 
Phase 1b, which will commence from as early as 2027.
If pressed: How many United States personnel will be in Perth for Submarine Rotational 
Force - West?

United States personnel will commence working 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. 
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.
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 
nuclear-powered submarines – both for visiting and rotational submarines and for 
Australia’s own 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; and supporting infrastructure outside of HMAS Stirling. 
Industry and Workforce
[Handling Note: Refer question to the Australian Submarine Agency]]

The Australian nuclear-powered submarine capability will create around 20,000 direct 
jobs over the next 30 years. At its peak, the program will support up to 8,500 direct 
jobs across the industrial workforce. 
Submarine Construction Yard
[Handling Note: Refer question to the Australian Submarine Agency]]

Planning and requirements development for the Osborne submarine construction yard 
is progressing, with the earliest enabling works – a carpark and pedestrian bridge – 
commencing later this year.

A grade separated road and utility relocation works will progress throughout 2024, to 
enable the broader development of the submarine construction yard from 2025 
onwards.

The Government’s appointed submarine construction yard design and delivery partner, 
Australian Naval Infrastructure Pty Ltd, is progressing the necessary state and federal 
approvals that will support the construction and operation of the submarine 
construction yard. 
Land Exchange
[Handling Note: Refer question to the Australian Submarine Agency]]

The Commonwealth and South Australian Government remain committed to finalising 
negotiations for the terms of the land transfer between Commonwealth and the South 
Australian Government. As part of this agreement the Commonwealth intends to:

exchange Defence owned land at Smithfield and Keswick to support South 
Australian urban renewal projects, in consideration for the land required at 
Osborne; and

collaborate with the South Australian Government on a potential land exchange 
at Cultana to support the Port Bonython hydrogen export hub projects, as well as 
appropriate easement and access arrangements.
Non-proliferation
[Handling Note: Refer question to the Australian Submarine Agency]]
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.

As a non-nuclear-weapon 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 agreements with the International Atomic Energy Agency.
Background
Timeline of Significant Events

1 July 2023 – the Deputy Prime Minister issued a media release launching the 
Australian Submarine Agency.

15 March 2023 – Federal 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 
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 
that an AUKUS memorandum and letters relating to AUKUS Pillar One between the 
Nuclear Powered Submarine Taskforce and state Government be tabled.

QoN 18, Key Streams for AUKUS, 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.
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.

QoN 92, AUKUS readiness, 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, Workforce demand and skill requirements, Senator the Hon Linda Reynolds 
(Liberal, Western Australia) asked for details regarding the department’s plans for 
acquiring the skilled workforce needed to support the program.
Supplementary Budget Estimates: 15 February 2023

QoN 10, ADM Richardson, 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, ADM Consultants - Senator Jordon Steele-John (Australian Greens, Western 
Australia) asked questions focusing on US Defence consultants.

QoN 45, Nuclear capability, Senator Jordon Steele-John (Australian Greens, Western 
Australia) sought assurances on nuclear weapons and Australia’s non-proliferation 
obligations.

QoN 22, AUKUS Report, Senator the Hon. Simon Birmingham (Liberal, South Australia) 
asked when the Optimal Pathway was provided to the government. 
Freedom of Information (FOI) Requests 

On 19 July 2023 an individual sought access to documentation created since 13 March 
2023 on potential sites for a high-level nuclear waste storage facility associated with 
the AUKUS plan. C
Closed on 1 September 2023, no documents released to the applicant. 

On 1 August 2023 an individual sought access to documentation between Defence or 
the ASA and ARPANSA in relation to the regulation of the nuclear submarine program. 
Notice of practical refusal was on 4 Aug. No response was received. C
Closed on 
18 August 2023, no documents released to the applicant.

On 5 August 2023 an individual sought access to documentation relating to the costs 
associated with AUKUS travel, itineraries and costs of VADM Mead’s overseas trips. ASA 
identified nine documents in scope of the request. The request is due to the applicant 
on 19 September 2023. D
Decision pending. 

On 10 August 2023 an individual sought access to personal documentation relating to 
correspondences between four current Department of Defence employees on the 
individual’s recruitment or potential recruitment. C
Closed. The applicant withdrew the 
request on 10 August 2023. 

On 23 August 2023 an individual sought access to documentation related to contract 
notice CN3988242 (awarded to Aecom Australia Pty Ltd). ASA stakeholders involved 
have identified 4 documents in scope of the request. The request is due to the 
applicant on 22 September 2023. D
Decision pending.
Recent Ministerial Comments 
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.

TBC
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.

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, writing 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.
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
 PDR No: SB23-000735
Last updated: 13 September 2023
  Nuclear-Powered Submarines
Key witnesses: Greg Moriarty; Matt Yannopoulos.
Division:
Australian Submarine Agency
PDR No: 
SB23-000735
Prepared by:
Cleared by Division Head: 
Megan Lees
Vice Admiral Jonathan Mead
Chief Operating Officer
Director General
Australian Submarine Agency 
Australian Submarine Agency 
Date: 8 September 2023
Ph: s47E(d)
Date: 11 September 2023 
Consultation: 
John Reid, Head Regulator Legislation and 
Date: 30 August 2023 
Associated Instruments, Associate Secretary  Mob:  
s22
Ph: 
s47E(d)
Group
Prepared By:
Cleared By: 
Name: Megan Lees
Name: Vice Admiral Jonathan Mead
Position: Chief Operating Officer
Position: Director General
Division: Chief Operating Officer Division
Group/Service: Australian Submarine Agency
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
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 need 
and capability.

Deputy Secretary, Naval Shipbuilding and Sustainment Group, Jim McDowell to lead 
on the performance of sustainment, capability upgrade insertion, and Life of Type 
Extension project preparation.

First Assistant Secretary Submarines, John Chandler, to lead 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 service life 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 includes (Portfolio Budget Statement 
2023-24):
Ͳ
Collins sustainment (CN10): $737.3 million;
Ͳ
Life of Type Extension (CN62): $187.3 million and SEA01450 Phase 1 Collins Life 
of Type Extension: $56.0 million; and
Ͳ
Projects: $146.9 million (six Collins related major projects).
Talking Points
What is the current plan for the Life of Type Extension?

The service life extension planned for all six Collins class submarines will involve a 
combination of ongoing sustainment, selected capability enhancements and a Life of 
Type Extension project (SEA1450).

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 the service life extension 
Full-Cycle Dockings. 

The first submarine to require a service life extension is HMAS Farncomb from 
mid-2026.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
What work will be delivered through 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.
What is the risk profile of the Collins service life 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 Collins class availability being met?

Recent Collins class submarine availability is marginally below agreed targets due to the 
impacts of COVID-19, the repair of damage in HMAS Waller from a one-off fire, and to 
allow time for capability enhancements.

Defence regained agreed availability targets in early 2023. Even during the pandemic, 
Defence was able to remain above 90 per cent of the key availability benchmark, 
proving the resilience of the current sustainment system. 

Submarine availability, measured against ‘Coles Benchmark’ Material Readiness Day 
(MRD) targets:
Financial Year 
Financial Year 
Financial Year 
Financial Year 
Financial Year 
2018-19
2019-20
2020-21
2021-22
2022-23
111 per cent
123 per cent
106 per cent
92 per cent
92 per cent
Is Defence equipping Collins class submarines with Tomahawk?

Defence is engaging with the United States Navy to explore the feasibility of fitting the 
Collins class submarines with Tomahawk cruise missiles.
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.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.

At 1 August 2023, the total ASC in-service support contract workforce headcount was 
1,562 and the ASC Life of Type Extension project full-time-equivalent workforce was 
183 (which is included in the overall headcount).
Australian Submarine Agency 

At the appropriate time, the ASA will assume responsibility for the ongoing materiel 
delivery of Australia’s Collins class submarine capability to Navy, including for effective 
ongoing sustainment, selected capability upgrades and Life of Type Extension project. 

The Royal Australian Navy will continue operating both conventional and 
nuclear-powered Australian submarines.
Navy Submarine Workforce

Defence acknowledges current challenges with ADF recruiting and retention, 
particularly in light of the growth required to support the ‘Optimal Pathway’ to 
Australia’s future nuclear-powered submarine fleet.

Defence is undertaking significant work to overcome these challenges, including 
releasing the Navy recruitment campaign ‘live a story worth telling’ under the ADF 
Careers brand; transforming the ADF People System, and implementing a range ADF 
retention initiatives, including Navy’s ‘Stay Onboard – People First’ retention campaign.

Navy has established a specialist submarine workforce and training team – working in 
close partnership with the Chief of Personnel, Australian Submarine Agency, 
Commander Australian Fleet and AUKUS partners – to deliver the right number of 
qualified submariners, with the requisite training and experience, at the right time for 
our current and future submarine capabilities.

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 are reviewed annually 
by the Chiefs of Service Committee, providing a whole-of-ADF process to prioritise and 
guide remediation efforts.
Background 

Following the Government’s announcement (14 March 2023) on the Optimal Pathway 
to acquire nuclear powered submarines, the successful execution of the Collins class 
service life 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 that are 
being funded under separate Government approvals.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
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/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
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/ 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.

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.
Timeline of Significant Events
Date
Action
The former Government announced the Collins class submarine 
18 April 2022
periscope upgrade (optronics) during a press conference at 
Osborne in South Australia.
The former Government announced the Life of Type Extension 
16 September 2021
project will be conducted on all six Collins submarines at Osborne in 
South Australia.
Government first pass approval for the Collins Life of Type 
June 2021
Extension project.
Supporting Information
Questions on Notice 
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. 
2022-23 October Budget Estimates: 9 November 2022

QoN 8, ASC workforce, Senator the Hon David Fawcett (Liberal, South Australia) asked 
about ASC’s workforce for Collins sustainment and the Life of Type Extension project.

QoN 20, Collins Life of Type Extension AIC, Senator the Hon David Fawcett, (Liberal, 
South Australia) asked about Australian industry involvement in the Collins Life of Type 
Extension project.

QoN 99, Collins Life of Type Extension, Senator Linda White (Labor, Victoria) asked 
about the current status of the Collins Life of Type Extension project.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
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/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
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Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
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 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 22 August 2023, in an article for The Australian titled All at sea when it comes to 
dire state of defence͕ Greg Sheridan discusses equipping Collins class with Tomahawk 
missiles, following the Government announcement to fit Tomahawk to the Hobart 
class. 

On 21 August 2023, writing for The Mandarin titled Tomahawks for Hobart class 
destroyers confirmed, Collins class sub capability still at sea͕ Julian Bajkowski 
references the feasibility study being undertaken into equipping Collins class with 
Tomahawk. 

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 Biggs titled Forging a 
truly national submarine capability͕describing 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. 
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
Division:
Submarines
PDR No: 
SB23-000710
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: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 21 August 2023
Date: 23 August 2023 
Commodore Micheal Jacobson
Rear Admiral Stephen Hughes
Director General
Head Navy Capability
Submarines 
Mob:  
s22
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 21 August 2023
Date: 30 August 2023 
Consultation: 
Australian Submarine Agency
Date: 23 August 2023 
Commodore Stephen Dalton
Mob:  
s22
 
Ph: 
s47E(d)
Assistant Director General 
Nuclear Submarine Capability
Cleared by CFO:
Leonie Neiberding
Date: 1 September 2023
Assistant Secretary Finance
Navy
Cleared by Deputy Secretary:
Jim McDowell
Date: 5 September 2023 
Deputy Secretary
Naval Shipbuilding and Sustainment
Cleared by Deputy Secretary (or equivalent 
Band 3/3*):
Vice Admiral Mark Hammond
Chief of Navy
Questions on notice referred to within the brief:
2023-24 Budget Estimates
Senator the Hon David Fawcett
Question Number: 48
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
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 
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
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 
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
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.
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. 
x Communications Information Systems
x Electronic Warfare
x Marine Engineering
x Maritime Warfare Officer and 
x Weapons Electrical Engineer. 
The critical category list is reviewed annually by the Chiefs of Service Committee.
2023-24 Budget Estimates
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
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
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/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
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.
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.
2022-23 October Budget Estimates
Senator the Hon David Fawcett
Question Number: 8
Date Question was tabled: 16 December 2022
Question
Senator FAWCETT: I will give you two more questions to take on notice. Firstly, I asked you 
before about changes to the ASC workforce. Can you take on notice, and come back to us 
and let us know, how stable their workforce is and whether it has grown as a result of LOTE 
or whether they're struggling to attract key skills, particularly in the engineering space.
Mr Dalton: Mr Whiley addressed some of that on Monday night, but we will take it on notice.
Senator FAWCETT: You can give me a link to his evidence, then, or you can provide it on 
notice, which would be great. And you have very satisfactorily distracted me from my second 
question, so I will think of that and I will come back to you!
Answer
Mr Whiley (CEO and Managing Director of ASC) provided a response that covered part of this 
question at the Finance and Public Administration Committee Senate Estimates on Monday, 
7 November 2022. It is recorded over pages 130 and 131 of the Committee Hansard.
Mr Whiley testified that ASC’s workforce has increased by approximately 10 to 15 percent. 
Mr Whiley noted that 138 of the workers brought into ASC through the Sovereign 
Shipbuilding Talent Pool were being utilised across the Collins work scope. The Department 
can advise that some of the 138 are working directly on Collins LOTE activities, with the 
remainder working on more routine Collins-related tasks in order to free up experienced ASC 
engineers to work on LOTE activities.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
2022-23 October Budget Estimates
Australian industry involvement in the Collins Life of Type Extension project
Senator the Hon David Fawcett
Question Number: 20
Date Question was tabled: 16 December 2022
Question
Senator FAWCETT: Mr Dalton, coming back again to Collins and LOTE, you'd be aware that 
since the Coles review, one of the key successes is the whole enterprise for the Collins and 
the engagement of Australian industry whether that's through reverse engineering the 
Hedemora and support from companies like MacTaggart Scott with periscopes et cetera. 
Having that local industry that has supported ASC and Navy very effectively—that essentially, 
I think, is our baseline. In relation to the much talked figure of about 90 per cent of Australian 
industry support for the through-life support of Collins—whether that's in dollar terms or 
percentage terms of the number of contracts; I'm not quite sure how defence has defined 
that in the past—could you, on notice, baseline that for us and the current work in LOTE? 
And then forecasting forward, as we replace the power train, as we replace periscopes et 
cetera with products that come from overseas, my concern is that we will potentially end up 
where we were with Collins in that we'll be relying on overseas maintenance, contracts and 
IP and then, down the track, have to re-create an Australian capability. So I'd like your 
planning, at this stage, for where we will be at the end of LOTE in terms of the number of 
contracts or percentage value that is still with Australian industry versus gone overseas, 
including the OEM in that mix. Mr Dalton: We'll take that on notice and I can assure you that 
over 90 per cent of the platform based Collins sustainment is work that's done in Australia. 
We're not anticipating a significant change in terms of the platform support pre- and post-
LOTE.
Answer
Based on the current contractual reporting obligations of the Collins class submarine industry 
partners, 92.77 per cent of the ongoing platform sustainment budget is spent in Australia. 
Defence does not anticipate this platform sustainment spend percentage changing 
substantively post LOTE.
2022-23 October Budget Estimates
Collins Life-of-Type Extension
Senator Linda White
Question Number: 99
Date Question was tabled: 16 January 2023
Question
Senator Linda White asked the Department of Defence the following question, upon notice, 
on 29 November 2022- 
1. What is the current status of the life-of-type extension (LOTE) of the Collins class 
submarines?
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
a. Has Government approved life-of-type extension0 for all six Collins class 
submarines? If so, when did Defence first recommend to government that all six 
submarines be extended and when did Government approve that request?
b. What is the current cost estimate for the LOTE project? If possible, please 
breakdown the headline cost between overarching project setup and 
management costs and the anticipated costs of the actual LOTE work on the 
submarines. 
c. What is Defence’s current assessment of the risks associated with the LOTE 
project? Has there been any change in Defence’s assessment of the level of risk 
associated with the LOTE project since 2013? 
2. In May 2016, the Study into the Business of Sustaining Australia’s Strategic Collins class 
Submarine Capability (aka the Coles Review) stated that: “In undertaking the assessment 
for Part B, the Review Team was advised by the Enterprise on a number of key 
assumptions, including considerations relating to the SEA1000 program. These key 
assumptions are […] life-of-type extensions for three Collins submarines (for their full 
cycles) have been assumed. The number of submarines to undergo an extension could be 
reduced or increased to match the introduction of the new submarines into service”. Is 
this an accurate summary of Defence’s planning assumptions at the time? 
3. On 8 November 2018, the then Chief of Navy, Vice Admiral Noonan, was quoted in the 
media as saying that: “If it needs to be more than three submarines, that’s the advice I’ll 
provide to government. And if it needs to be all six Collins class submarines, that’s the 
advice I’ll take to government.” 
a. At that point in time, was Defence’s planning assumption still based on life-of-type 
extension for three Collins submarines or had the planning assumption changed? 
b. If it changed, please describe Defence’s planning assumption at the time on the 
number of Collins submarines that would require extension as well as when and 
why the planning assumption had changed. 
4. On 27 October 2021, Vice Admiral Noonan told Senate Estimates that: “The life-of-type 
extension for the Collins class submarines was always going to happen with at least five 
boats. The decision to LOTE all six boats will ensure that, had we proceeded with the 
Attack class, we would have had a very capable Collins class submarine into the 2040s. 
That has not changed.” Was Vice Admiral Noonan correct when he said that the LOTE was 
“always going to happen with at least five boats”? 
a. If yes, on what date did Defence determine it was “always” going to be at least 
five boats and how does Defence reconcile this comment with Vice Admiral 
Noonan’s prior comments as well as the planning assumptions outlined in the 
Coles Review? 
b. If no, is it the case that Defence’s assumptions around the number of Collins that 
could be subject to LOTE changed over time? When did these planning 
assumptions change and what were the drivers of that change? 
5. What are the risks that the LOTE of one or more of the six Collins boats is unsuccessful 
and/or takes longer than currently anticipated? a. What does Defence consider the key 
risks to successful LOTE to be? Where possible, please give specific examples of the types 
of risks. 
6. Will LOTE completely alleviate the potential for a submarine capability gap or does that 
still remain a risk? 
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
a. Is there, for example, the risk of pressure hull or other critical issues being 
discovered that cannot be overcome or mitigated? 
b. Does availability of the Collins fleet still remain a concern after LOTE? If so, please 
describe what the risks might be to availability as the fleet continues to age. 
7. In Defence’s assessment, has the cancellation of the Attack class increased the risk of a 
submarine capability gap? 
a. If yes, in Defence’s assessment, would an earlier decision on the cancellation of 
the Attack class have helped prevent this capability gap?
Answer
1a, b and c. The former Government provided first pass approval to extend the life of all six 
Collins class submarines (SEA1450 Phase 1) in June 2021 (the first Government approval 
point in the project’s life). The Government considered this project based on advice and 
recommendations made by the Department to the Minister for Defence. The 
Department has been developing options to extend the life of the Collins class submarine 
since 2011. Consideration of the number of submarines to be extended commenced 
with at least three – the actual number to be extended was refined over time as the 
replacement submarine program took shape. At the time of first pass approval, the total 
cost estimate was within the $4.3 to $6.4 billion public cost envelope. The detailed 
executable life extension cost developed with industry post first pass will be considered 
by Government at second pass. The work done by the Department since 2011 has 
demonstrated that extending the life of the Collins class submarines is feasible. The 
Department 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.
2, 3 and 4. The window to decide to replace the Collins class submarine without extending its 
life effectively closed in 2011. The commencement of the Attack class submarine 
program in 2016 allowed the Department to develop a submarine capability continuity 
model based on a range of factors, including potential exit from and entry into service 
dates for Collins and Attack class submarines. This enabled the Department to adapt 
planning assumptions, such as the number of Collins to be life-extended, over a range of 
contingencies, including as these changed over time. 
5. The Department assesses the risk of extending the life of the Collins class submarines to 
be significant, but manageable. The core work package to extend the life of each Collins 
class submarine is planned to be inserted during scheduled full-cycle dockings 
commencing from mid-2026. Further work to extend the life of each Collins class 
submarine is planned for insertion in subsequent mid-cycle and intermediate dockings. 
Within the planned docking periods, life extension work has risk associated with scope, 
cost and schedule. The Department is working closely with ASC to manage the planned 
activities within the approved resources and docking windows.
6. Extending the life of the Collins class submarines is one of several strategies to mitigate 
the emergence of a potential capability gap. The life-of-type extension program will carry 
the Collins class submarines through the 2030s and well into the 2040s with a manageable 
level of risk. The Government will consider the range of mitigations that may be required 
in light of the nuclear-powered submarine optimal pathway being delivered in the first 
quarter of 2023.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000710
Last updated: 6 September 2023
Collins class submarines
Key witnesses: Vice Admiral Mark Hammond; Jim McDowell; John Chandler.
a. The Department considers the risks of managing each Collins class submarine to its 
extended planned withdrawal date to be significant, but manageable. This includes risks 
associated with the pressure hull and other critical systems.
b. Yes, the availability of Collins class submarines will remain an enduring focus for as long as 
the boats remain in service. As the boats age, age-related risks to submarine availability 
will increase.
7. No. The decision to cancel the Attack class submarine program occurred following the 
United States agreeing to share submarine nuclear propulsion technology with Australia 
and the former Government’s subsequent decision to pursue a nuclear-powered 
submarine program. The work of the Nuclear Powered Submarine Taskforce will 
determine which platform Australia will acquire. The optimal pathway will inform when 
Australia can acquire it, mitigate any potential capability gap, how Australia can continue 
to meet its non-proliferation obligations, and cost.
Prepared By:
Cleared By: 
Name: John Chandler, First Assistant Secretary Submarines
Name: Jim McDowell, Deputy Secretary NSS
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
Name: Rear Admiral Stephen Hughes, Head Navy Capability
Name: Vice Admiral Mark Hammond, Chief of Navy
Phone: / 
s47E(d)
s22
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
Hunter Class Frigates 
Handling Note: Sheryl Lutz, First Assistant Secretary Major Surface Combatants and Combat 
Systems, to lead on Hunter class frigate – design and construction. 
 
Key Messages 

The Government’s response to the independent analysis of Navy’s surface 
combatant fleet capability will determine any impact to the Hunter class frigate 
program. Defence will not pre-empt the Government’s response to this analysis. 

The Hunter class frigates, to replace the Anzac class frigates, are intended to be built 
at the Osborne South Naval Shipyard in South Australia. Construction is planned to 
be undertaken over the period 2024 to 2044.  

The Hunter class will provide the ADF with high levels of lethality and deterrence in a 
time of increasing global uncertainty. It has the capability to conduct a variety of 
missions independently or as a task group, with sufficient range and endurance to 
operate effectively throughout the region. 

The Hunter class frigate project is the foundation project for continuous naval 
shipbuilding in Australia, with construction to commence in mid-2024 (s47C
 
.  

Total project acquisition cost is estimated to be $45.15 billion (Portfolio Budget 
Statement 2023-24), with a current approved budget of $7.18 billion (Portfolio 
Budget Statement 2023-24) which covers the ‘design and production’ phase, 
ordering of long-lead time equipment including the first three combat systems, and 
infrastructure. 

Lifting Australian industry capability is a key objective of the project with an aim of 
over 58 per cent of the total value of the prime contract invested in Australia over 
the life of the project. 
Talking Points 
2022 Hunter class frigate review and 2023 Surface Combatant review 

The independent review of the Hunter class frigate program by the Surface Ship 
Advisory Committee commenced in September 2022 and the review team completed 
their report in 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’s report was considered by the Defence Strategic Review.  

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. The analysis commenced immediately and was conducted by United States 
Vice Admiral William Hilarides (Retd), Ms Rosemary Huxtable AO PSM, and 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
Vice Admiral Stuart Mayer AO CSC. The analysis was delivered to Government on 29 
September 2023. 
Why does Australia need the Hunter class frigate? 

The Hunter class 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. 
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 (Portfolio Budget Statement 2023-24), 
which includes $986 million (including contingency funding) for infrastructure. The 
contract value for this phase with BAE Systems Maritime Australia is currently 
$2.98 billion. 

The Hunter class frigates program received the BAE Systems Maritime Australia Board 
cleared Batch One offer on 29 June 2023, and is in a pre-negotiation phase. 

Pending the Government’s response to the independent analysis of Navy’s surface 
combatant fleet capability, Defence will seek Government approval for construction of 
the first three ships to commence by June 2024. 
Australian National Audit Office findings: 
Why has the project not been effective in delivering project milestones and appears to have 
created additional milestones in order to pay the prime contractor? 

The current approved design and productionisation phase is a cost-plus-fixed-fee 
contract. This type of contract was selected given the high-risk nature of the project at 
this stage.  

Since the head contract signature in December 2018, contract changes have been 
executed to align the payment of fees to specific milestones instead of the original 
quarterly milestones.  
Why did Defence not assess value for money during the tender process? 

Defence ensures all procurement advice to Government on major and complex 
acquisition projects includes the basis and rationale for proposed decisions, including 
the consideration of value for money. 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 

In accordance with due process, Defence provided advice to Government to allow the 
Government to make a decision in connection with the appointment of a preferred 
tenderer to enter into the design and productionisation phase. 

The Department has reviewed Hunter class procurement up to and including the 
second pass advice provided to Government. The review is currently being considered 
by the Secretary and the Chief of the Defence Force. 

The Department has agreed to the recommendations of the Auditor-General and has 
proceeded to implement changes to processes as a result of those recommendations 
and the other areas for improvement. 

Any recommendations or lessons learnt coming from the review directed by the 
Secretary in connection with improvements to Defence procurement processes will be 
applied to future major capital acquisition projects. 

The Hunter class frigates are a multi-stage procurement that will span at least three 
decades, with an approval pathway requiring multiple returns to Government. 
Throughout this process, Defence will provide assessments that include value for 
money. 
Can Defence afford the nine ship program within the current estimate cost? 

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 Government, is under extreme 
pressure. 

It is important to note that $45.15 billion is a cost estimate. Approval has not been 
sought for the funding to acquire nine Hunter class frigates. What has been approved is 
the selection of 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 three batches. 
Why was Defence not able to locate certain key records? 

Defence acknowledges and understands it must maintain appropriate records and 
employs a compliant record management system. 

Additional Defence-wide reforms in connection with records management and 
processes and systems have been proposed. 

In connection with the Hunter class frigate program, all personnel were required to 
complete the new Introduction to Records Management training course by 31 August 
2023. 

The first internal audit of Defence records management practices in the Hunter project 
was completed as planned on 31 July 2023. 
Why has there been a cost blowout? 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 

The ANAO reported that the cost of the head contract has increased, without 
acknowledging that Defence always expected the cost to grow, with the main increases 
to include the support system, land-based test site and the interim arrangement blocks 
required to keep the skilled workforce employed as a result of the Type 26 delays.  

The ANAO noted the current contract price remains within the original Public 
Governance, Performance and Accountability Act 2013 section 23 approval made in 
2018. The Government has not approved an increase to the budget for the currently 
approved design and productionisation stage. 

Defence reported on the cost increases in the Major Projects Report 2020-21 and 
2021-22. 
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 Project Report to include an inquiry into the 
procurement of the Hunter class frigates following the tabling of the Australian 
National Audit Office’s performance audit on Defence’s procurement and management 
of the Hunter class frigates. 

On 19 May 2023 Defence officials appeared at a Joint Committee on Public Accounts 
and Audit public hearing. As stated then, Defence is reviewing the audit office report in 
order to determine what occurred, and ensure we learn lessons from this and update 
processes as required. This will take time given the size of the report and the departure 
of many officials from the Department.  

Since that hearing the Secretary has directed a further review of the circumstances that 
led to the decisions and practices referred to in the ANAO Report. The Secretary and 
the Chief of the Defence Force are considering the findings of that review. 

It is expected that the JCPAA will reconvene a public hearing late in 2023. 
Background  
Schedule 

When the project was approved in June 2018, 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.  

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.  

The Future Frigates – Design and Construction Hunter class frigate (SEA 5000 Phase 1) 
is listed as a Project of Interest.  
Sustainment 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 

The Hunter class frigate fleet will be sustained using 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 frigates’ 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 the 
Head contract was signed by BAE Systems Maritime Australia.  

The Preliminary Design Review was held on 10-14 July 2023.  

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 the first ship. 

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) and a cost 
estimate for nine ships. The project is in a pre-negotiation phase, pending 
Government’s response to the independent analysis of Navy’s surface combatant fleet 
capability.  
Supporting Information 
Questions on Notice  
2022-23 Supplementary Budget Estimates (15 February 2023)  
˜
In  QoN 37, Senator the Hon Simon Birmingham (South Australia) sought details 
regarding the terms of reference for the Hunter review. 
2022-23 October Budget Estimates  (30 & 31 May 2023) 
˜
/Ŷ QoN 12, Senator Jordon Steele-John (Western Australia) sought details regarding 
Rear Admiral David Gale’s involvement as a consultant on the Future Frigate program. 
˜
In  QoN 86, Senator Nita Green (Queensland) sought details regarding integration of 
Australian design requirements into the Type 26 Frigate. 
Joint Committee of Public Accounts and Audit (11 May 2023) 
˜
In IIQ23-000033, IQ23-000034, IQ23-000035, IQ23-000036, IQ23-000037 and 
IQ23-000075, Mr Hill asked a number of questions in connection with the Hunter ANAO 
Audit.  
˜
In IIQ23-000038 and IQ23-000040 Senator Reynolds asked a number of questions in 
connection with the Hunter ANAO Audit. 
˜
In IIQ23-000039, the JCPAA Committee asked a number of questions in connection with 
the Hunter ANAO Audit. 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
Freedom of Information (FOI) Requests  
˜
No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.   
Recent Ministerial Comments  
˜
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. 
˜
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 5 September 2023, Andrew Tillet wrote for the Australian Financial Review that 
Senator David Shoebridge had referred the Hunter class frigate contract to the National 
Anti-Corruption Commission, in an article titled Bungled navy warship referred to anti-
corruption watchdog  
˜
Since the release of the Joint Committee of Public Accounts and Audit review on 
10 May 2023 and hearing on 19 May 2023, Australian media has reported extensively 
on the Australian National Audit Office’s report on Defence’s procurement of Hunter 
class frigates. Articles include The future of the RAN’s surface combatant force 
˜
(Australian Strategic Policy Institute); The $45 billion Hunter Frigates Project has been a 
comedy of errors from day one (The Australian); Senator Fawcett grills bureaucrats and 
governments on defence procurement (auManufacturing); Frigate probe launched 
(The Courier Mail); New parliamentary probe targets wasted warship money (The West 
Australian); and, BAE Systems won $45bn contract to build Hunter-class frigates 
without effective tender process(The Australian). 
 
Division: 
Major Surface Combatants and Combat Systems 
PDR No:  
SB23-000713 
Prepared by: 
Cleared by Division Head:  
Commodore Scott Lockey 
Sheryl Lutz 
Director General 
First Assistant Secretary 
Hunter Class Frigate Branch 
Major Surface Combatants and Combat 
 
Systems  
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
Mob:  
s22
 
Ph: 
s47E(d)
 
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Date: 25 August 2023 
Date: 20 October 2023  
Consultation:  
 
Navy Capability Division 
Date: 4 September 2023  
Rear Admiral Stephen Hughes 
Mob:  
s22
Head Navy Capability 
 
IAT Secretariat 
Date: 30 August 2023  
Victoria Bergman 
Assistant Secretary 
Mob:  
s22
 
Ph: 
s47E(d)
 
 
Cleared by DSR: 
 
Amy Hawkins 
Date: 1 September 2023 
First Assistant Secretary Policy and Engagement 
Cleared by DFG: 
 
Leonie Neiberding 
Date: 1 September 2023 
Assistant Secretary Finance-Navy  
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
 
Jim McDowell 
Date: 6 September 2023  
Deputy Secretary 
Naval Shipbuilding and Sustainment Group  
 
 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
Questions on notice referred to within the brief:  
 
2022-23 Supplementary Budget Estimates 
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.   
 
 
2022-23 October Budget Estimates 
Senator Jordon Steele-John 
Question Number: 12 
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— 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
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. 
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 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
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. 
 
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 STIL 
Provide advice on nuclear-powered 
submarine shipyards and infrastructure 
 
2022-23 October Budget Estimates 
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? 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
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? 
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. 
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 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
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. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Question No. 1 
Date question was tabled: 18 June 2023 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on 
19 May 2023: 
CHAIR: The final Tender Evaluation Plan said clearly that value for money was going to be a 
matter for government; it was not an assessment that officials were going to undertake—
which seems peculiar. I have never heard before, in my almost seven years on the audit 
committee looking at numerous procurement audits, that all of a sudden officials would write 
a Tender Evaluation Plan that just wished away value for money and said, 'We won't worry 
about that; government will decide that in some mysterious cabinet process'. Can you point 
to any other Tender Evaluation Plan where the department just said, 'We won't worry about 
that; government will worry about money'? Or was this unique?  
Mr Yannopoulos: I would have to take it on notice to be absolute, but I am not aware of 
another circumstance.  
 
Answer: 
The Department of Defence has provided the following answer to the question:  
No, this situation appears to have been unique. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Question No. 2 
Date question was tabled: 18 June 2023 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on 
19 May 2023:  
Rear Adm. Malcolm: I do believe there was sufficient commentary in the Auditor-General's 
report. I think it is important to note here that we certainly acknowledge and welcome the 
Auditor-General's report. We have had that now for a couple of weeks. Whilst we have 
worked closely with the ANAO over the last year—so it's a very extensive report—we only 
received the final report in the last couple of weeks. It is over 100 pages long. It's very 
comprehensive. It's very detailed. There are many matters that we should consider carefully 
and deeply. I want to make the point that none of the officials that are here today were 
involved in that decision-making and tender selection process. We're very keen to 
understand what the committee would like further. It's unlikely we can talk about what was 
going through people's minds at that time, or specifically regarding your questions about why 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
or why not the TEP was changed. I note that we are very keen to help the committee 
understand that. We wish to understand that. We wish to learn and improve our processes. 
That's something that we take very seriously, as officials.  
CHAIR: Could you take on notice the specific questions, to the extent that you can, about the 
costs; we don't need to deal with that here. We will obviously come back to this. Given the 
seriousness of the report, we want to have an initial hearing. Can you explain why the French 
FREMM project was removed from pass 1 and who made that decision?  
Rear Adm. Malcolm: I will need to take that on notice.  
 
Answer: 
The Department of Defence has provided the following answer to the question:  
French FREMM: Rationale for including the BAE Type 26 rather than the French FREMM was 
provided in the Sponsor’s paper to the Defence Capability and Investment Committee. The 
Minutes of this meeting recorded the final outcome and not the discussion leading to the 
outcome. None of the senior personnel currently serving in the Department were present at 
that meeting.  
Costs: The submission included comparisons of affordability over the forward estimates and 
through the acquisition phase compared to the IIP provision. For each option the total whole 
of life costs provided included capital costs, comparison to the IIP capital provision and the 
future sustainment provision. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Question No. 3 
Date question was tabled: 18 June 2023 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on  
19 May 2023:  
CHAIR: BAE's design, which ultimately won, was evaluated as better than the other two 
proposals. Did that proposal meet the 23 high-level capability requirements?  
Rear Adm. Malcolm: I'll take that on notice. I say that based on what I am able to share out of 
the cabinet submission. I don't want to overstep the mark there.  
CHAIR: Ms Lutz was nodding in response to my question. Did you have something to add?  
Ms Lutz: You will see in the table that is in the ANAO report as to whether it meets the 
requirements or not. One of those criteria was the tender admission system. It states that 
BAE Systems meets requirements.  
CHAIR: All 23 high-level capability requirements?  
Ms Lutz: If it met the requirements of the tender admission system, that was the high-level 
capability requirements.  
CHAIR: Could you take that on notice so that I can get a specific response about all 23 
requirements.  
Ms Lutz: Okay.  
 
Answer: 
The Department of Defence has provided the following answer to the question:  
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
The Hansard has incorrectly recorded Ms Lutz as saying ‘tender admission system’ rather 
than ‘tendered mission system’.  
One of the 10 evaluation criteria that all three tenders were assessed against was titled 
‘tendered mission system’. This criterion assessed the level of compliance of each design with 
the 23 high level capability requirements. The BAE offer was assessed as ‘Meets 
Requirements, Medium Risk’ following completion of the offer definition phase. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Question No. 4 
Date question was tabled: 18 June 2023 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on  
19 May 2023:  
CHAIR: I am responding to your interjection. That's a fact. The former government did that. 
We are talking about why the advice appeared to be deficient. In January 2023, the Surface 
Ships Advisory Committee advised that when the previous government selected the Type 26 
as the reference design it was yet to be fully designed, built and tested. It was assessed as 
'extreme risk' in BAE's own tender response. They are pretty strong words: 'extreme risk'. 
How was that supported as compliant with the tender requirements?  
Rear Adm. Malcolm: I am not sure that I can talk directly to how it was seen to be 
compliant,Chair. I make the comment that, in putting up our advice to government a number 
of things were laid out, including cost and risk and other factors. It included capability, 
efficiency, effectiveness, economic value—all those things. That was certainly done, including 
things like the 10 per cent efficiency dividend that was laid out for—  
CHAIR: Hang on. A '10 per cent efficiency dividend'; is that what we are calling it now?  
Rear Adm. Malcolm: Whatever the 10 per cent was. I would note that we're still trying to 
understand that.  
CHAIR: We're still trying to understand how Defence put advice up to government that they 
could buy something for 10 per cent less.  
Rear Adm. Malcolm: What I am telling you, Chair, is that the officials at this table need to 
better understand what occurred in that respect.  
CHAIR: I don't envy your position. I understand that.  
Rear Adm. Malcolm: I am committed to assisting the committee on that basis. That 
submission was put. The comments around extreme risk—all of that was laid out for 
government. Government took a decision with all that information. It's important to note 
that was all provided for assessment. CHAIR: That's fine. Could you take on notice and explain 
to us how the extreme risk side of things was compliant with the tender requirements. You 
are telling us that government was informed of the extreme risk in the second-pass advice?  
Rear Adm. Malcolm: Yes, Chair.  
 
Answer: 
The Department of Defence has provided the following answer to the question:  
For each evaluation criteria a compliance assessment and risk assessment was completed. 
Compliance was assessed on whether the tender response met, exceeded, was marginal or 
did not meet the specified requirement. Risk related to the assessment of the successful 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
implementation of the tendered solution. Hence the compliance is the critical element and 
the risk indicates areas that would need to be managed and mitigated to enable success. 
Defence assessed overall risk as high for all of the tender responses. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Question No. 5 
Date question was tabled: 18 June 2023 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on  
19 May 2023:  
CHAIR: How were the 'minimum change to the reference ship' tender evaluation criteria 
assessed for the Type 26 versus the Australian requirements?  
Rear Adm. Malcolm: I would need to take that on notice, Chair.  
 
Answer: 
The Department of Defence has provided the following answer to the question:  
Compliance to meet the Australian requirements, referred to as minimum change, was 
determined by the assessment against the high-level capability requirements. All tendered 
ships required modification to incorporate the Australian requirements. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Senator Linda Reynolds 
Question No. 6 
Date question was tabled: 18 June 2023 
 
Question: 
Senator the Honourable Linda Reynolds asked the Department of Defence the following 
question, upon notice, on 19 May 2023:  
Senator REYNOLDS: We could schedule in time, if it works in with your time frame, to give 
you an opportunity to do what you need to do through that process. Para 40 says: The 
February 2022 Independent Assurance Review (IAR) was not assured that there was a clear 
path to realising the policy objective… This was about personnel and skills. Who did the 
independent assurance review? Does anyone know, offhand?  
Rear Adm. Malcolm: We'd need to take that on notice unless it's in the report.  
 
Answer: 
The Department of Defence has provided the following answer to the question:  
An Independent Assurance Review of SEA 5000 Phase 1 – Hunter Class Frigate commenced in 
late 2021 and was conducted by Dr Ralph Neumann (Lead Reviewer) and Mr Ian Sharp 
(Reviewer). 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Question No. 7 
Date question was tabled: 18 June 2023 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on  
19 May 2023:  
CHAIR: Is it normal procedure to reduce a percentage of the production cost without the 
tenderer's agreement? One of the things that also stunned me in the paperwork that went to 
government was that it appears that a price was put in and the Department of Defence, for 
reasons that it's not been able to explain, knocked 10 per cent off the price in sending the bill 
up to government.  
Rear Adm. Malcolm: Again, we don't have an understanding of why that occurred. I would 
note that it is not normal practice. We will take on notice to answer that question.  
 
Answer: 
The Department of Defence has provided the following answer:  
No. The 10 per cent reduction was applied across all three tenderers to the cost estimate for 
construction only. 
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
The Committee 
Additional Questions 1-27 
Date question was tabled: 18 June 2023 
 
Question: 
Committee asked the Department of Defence the following additional questions, upon 
notice, on 30 May 2023:  
1. How has the Department addressed the two recommendations made by the Auditor-
General regarding record keeping and advice to government?  
2. The report states that entities have a duty under the PGPA Act to promote the proper use 
and management of public resources in accordance with the Act, including by complying with 
the CPRs. Does the Department agree with the report’s suggestion that further training and 
oversight is required of Defence officials advising on major capital acquisition projects?  
3. Has Defence considered or planned training for Defence officials involved in major projects 
to address the ANAO’s findings?  
4. Will the Department consider the other suggestion that more active engagement is 
needed with Finance to ensure procurement is compliant with the Commonwealth’s 
procurement framework?  
5. How will the Department improve its advisory process to provide complete and timely 
advice to Government?  
6. What steps will be taken to address the unilateral application of a 10% reduction to 
tendered build costs by Defence without negotiation with tenderers?  
7. Will there be any changes to the governance structure or oversight mechanisms within the 
Department to ensure these issues are not repeated in future projects?  
8. What steps will the Department take to ensure that key records, including the rationale for 
the procurement approach, are retained in future processes?  
9. What lessons have been learnt from this project to ensure that an effective tender process 
is conducted for ship design for future projects?  
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
Page 1
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
10. Was value for money a key consideration in the tender process? a. Did Defence engage 
with the Department of Finance on the appropriateness of this process?  
11. Defence why did you exclude the whole-of-life cost estimates for the tenderers from the 
advice provided to government?  
12. Why did Defence choose to not compare the maturity of design across the tenderers in 
the advice provided to government?  
13. Was Finance consulted throughout the procurement process?  
14. Defence, please advise why the contract management plan was created so long [3.6 
years] after the contract was signed?  
15. What are the potential financial pressures faced by Defence on the Hunter Frigate 
project?  
16. Can you provide an update on the current cost estimates for the Hunter Class Frigate 
project and any significant cost overruns that have been experienced?  
17. How does the Department plan to address the 18-month delay and additional costs in the 
Hunter Class Frigate project?  
18. How does Defence plan to mitigate the risks and issues identified in the Independent 
Assurance Reviews, particularly regarding insufficient resources and expertise in the project 
team?  
19. What is the impact of the reported unaffordability of the Hunter Class Frigate project on 
the broader Defence budget and allocation of resources?  
20. What are the implications for Australia’s naval capabilities?  
21. How does the Department plan to address the significant underspend of: a. $134.7 
million against the management services scope? b. $328.1 million against the design and 
productionisation scope?  
22. How will these underspends be allocated or reinvested in the project?  
23. What provisions are in the Department’s contract with BAE to hold them accountable for 
underspend and delays?  
24. What are the lessons learnt from this underspend that will inform future decision-making 
and management?  
25. How will Defence ensure the Hunter Class Frigate project complies with the Australian 
Industry Capability targets to effectively transfer relevant defence personnel and skills to 
Australia?  
26. What actions will be taken in response to the Defence Strategic Review’s findings on the 
Hunter Class Frigate project?  
27. How will the Hunter Class Frigate project be aligned with the Defence Strategic Review?  
 
Answer:  
The Department of Defence has provided the following answer to the Committee’s 
questions:  
1. A management action plan has been developed in response to the ANAO report, and an 
internal review has been established to identify lessons learnt and updates to processes, 
where required.  
2. Defence agrees that training is always beneficial to reinforce the requirements of the CPRs.  
3. No.  
4. Yes  
5. Defence will provide advice to Government and Ministers in accordance with the Cabinet 
processes and any other direction given by the Government of the day.  
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
Page 1
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
6. The reduction has not occurred in other tender evaluations. For the Hunter project, 
Defence has not entered into a contract for ship construction and will not do so until the cost 
has been negotiated and agreed with BAE Systems and the Government has approved the 
procurement.  
7. Defence considers that current governance arrangements for major capital acquisitions are 
appropriate.  
8. The ANAO did not find any shortcomings with Defence’s record keeping within the Hunter 
Class Frigate project post contract signature. Defence recognises that the ANAO 
recommendation relates to historic record keeping. In 2021, the Department released a new  
Defence Data Strategy 2021-2023. This strategy underpins Records Management within the 
Department and is being followed by the project.  
9. An internal review is underway to determine lessons learnt and process improvements.  
10. Yes.  
 
Yes.  
11. Whole-of-life costs were not excluded. Given that all of the ships under consideration 
included modifications to accommodate Australia’s unique requirements, a rough order of 
magnitude sustainment estimate was sought but was unsuitable for evaluation given the 
level of uncertainty as the design changes for each of the options had not been commenced. 
The sustainment provision was used as a fair substitute in offering a whole-of-life cost 
estimate.  
12. The design maturity was considered and a comparative assessment included in the 
submission.  
13. Yes.  
14. The contract management plan was created in December 2018 and underwent multiple 
updates until it was approved in August 2022. The Capability Acquisition and Sustainment 
Group has long standing and well documented business processes for the management of 
Defence contracts. While it is considered good practice to have a Contract Management Plan 
tailored to specific contracts, the absence of a specific SEA 5000 Contract Management Plan 
did not prevent the SEA 5000 project office from exercising appropriate governance practices 
during the first few years of the contract.  
15. Similar to many aspects of Defence operations and in other parts of society, cost 
increases are being experienced for labour, materials, transport, shipping and storage.  
16. No. The Government will be provided with an updated cost estimate once the formal 
offer from BAE systems has been received for the first batch of ships, negotiations have been 
conducted, and the formal submission put to the Government. The current and only 
approved phase of the project, Design and Productionisation, will be delivered within the 
approved budget.  
17. Government in June 2021 and the cut steel date adjusted from December 2022 to June 
2024. The project is on track to commence production against the new agreed date of no 
later than June 2024.  
18. The issue of expertise in the project team has been addressed in the combat systems area 
by the CSI Collaboration Agreement between Defence, BAE Systems, Lockheed Martin 
Australia and Saab Australia. The resource issue is being addressed by having a high 
probabilistic schedule based on a realistic resource availability given global pressures.  
19. The Government’s response to the Independent Analysis Team’s report will determine 
the resource allocation for Australia’s surface combatant capabilities. The Defence Integrated 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
Page 1
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
Investment Program will be rebuilt in order to deliver the highest priority capabilities detailed 
in the Government’s response to the Defence Strategic Review.  
20. The Government’s response to the Independent Analysis Team’s report will determine 
the implications for Australia’s surface combatant capabilities.  
21. The reported underspend was at a point in time. The Design and Productionisation stage 
of the project is currently forecast to be delivered within the approved budget.  
The reported underspend was at a point in time. The Design and Productionisation stage of 
the project is currently forecast to be delivered within the approved budget.  
22. The reported underspends were at a point in time. The Design and Productionisation 
stage of the project is currently forecast to be delivered within the approved budget.  
23. Profit is at risk in the current design and productionisation contract for milestones missed 
from July 2022 onwards.  
24. In a ‘cost plus fixed fee’ contract, underspends and overspends are inevitable. Such 
contracts are typically used when there is uncertainty in the schedule and/or a risk profile for 
which an alternative contract type such as target cost incentive model is inappropriate. 
Defence considers that the current commercial arrangement (cost plus fixed fee) is 
appropriate for the Design and Productionisation stage of the project.  
25. BAE is meeting their AIC target that was put in place when the Head Contract was 
executed in February 2019. This is monitored at the monthly business review and quarterly 
progress meetings. The transfer of skills will be monitored to ensure the required design and 
construction skills are in place in accordance with the Sovereign Capability and Option Deed.  
26. and 27. The Defence Strategic Review recommended the conduct of an independent 
analysis of Navy’s surface combatant fleet capability. The Government accepted this 
recommendation and an Independent Analysis Team has been established. The Hunter class 
frigate project will be considered as part of the Independent Analysis Team’s review.  
 
Joint Committee of Public Accounts and Audit (11 May 2023) 
Mr Julian Hill MP 
Additional Questions 1-4 
Date question was tabled: 16 October 2023 
 
Question: 
Mr Julian Hill MP asked the Department of Defence the following question, upon notice, on  
28 August 2023:  
1. What progress has Defence made on its internal investigations and inquiries in light of the 
report it referred to in the public hearing?  
2. Has Defence found the missing minutes from the 15 March 2018 Defence Committee 
yet?  
3. Does Defence intend to make a further submission addressing its procurement of the 
Hunter Class Frigates noting the Committee expanded the terms of reference of its 
inquiry to include these issues after Defence provided its initial submission, and if so 
when?   
 
Independent assurance and other external reviews 
The Committee is aware that a number of external reviews and assurance activities have 
been undertaken as part of or in relation to the Hunter Class Design and Productionisation 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
Page 1
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000713  
Last updated: 19 October 2023 
    Hunter Class Frigates 
Key witness: Sheryl Lutz 
program. Some have been publicly mentioned or can be discerned from AusTender and other 
sources including Systems Requirement Review (SRR), Mission System Systems Definition 
Review, Mission System Systems Definition Review, Support System Systems Definition 
Review, System Readiness Review, Prototype Readiness Review, Integrated Baseline Review 
1, Integrated Baseline Review 2 and Ship Acquisition Surface Combatants Engineering Team’s 
report.  
4. In a table or other sensible format please provide details of all independent reviews and 
assurance reviews that have been conducted for each review:  
x What was the title?  
x What was the scope and purpose?  
x What date was it commissioned and completed on?  
x Who undertook it and what did it cost?  
x Which were part of the Head Contract’s Key Milestones, and which were separately 
commissioned?  
x Please briefly summarise the key findings of each review.  
x Please advise the security classification of each review and advise if there are any 
concerns with providing a copy in confidence to the Committee Secretariat for 
review. 
 
Answer: 
The Department of Defence has provided the following answer to the above questions: 
1. Defence recognises the important oversight role that the Committee provides.  Defence 
has completed the first stage of its review and will look to update the Committee at its 
next scheduled hearing. 
2. No. 
3. Defence intends to provide a supplementary submission on its procurement of the 
Hunter class frigates to the Committee’s inquiry.  
4.   Excluding the publically available ANAO Report, a total of eleven external reviews and 
assurance activities have been undertaken in relation to the Hunter class frigate project 
between May 2019 and February 2023. The details of these cannot be provided in this 
response due to classifications ranging from Official: Sensitive to Protected: Cabinet. 
 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Scott Lockey 
Name: Jim McDowell  
Position: Director General Hunter Class Frigate  
Position: Deputy Secretary  
Division: Major Surface Combatants and Combat Systems 
Group/Service: Naval Shipbuilding and Sustainment 
Phone:  
s22
 
Phone: s22
Page 2
20 of 20 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Surface Ship Advisory Committee (SSAC) 
Supplemental Review of the Hunter Class Frigate Program (SEA 5000)  
Terms of Reference 

Authorisation 
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Purpose 
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Context 
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ƚŚĞĐƵƌƌĞŶƚĨůĞĞƚŽĨEĐůĂƐƐĨƌŝŐĂƚĞƐ͘dŚĞĨƵƚƵƌĞĨƌŝŐĂƚĞƉƌŽŐƌĂŵŝƐƐĐŽƉĞĚƚŽ
ĚĞůŝǀĞƌŶŝŶĞŐĞŶĞƌĂůͲƉƵƌƉŽƐĞĨƌŝŐĂƚĞƐŽƉƚŝŵŝƐĞĚĨŽƌĂŶƚŝͲƐƵďŵĂƌŝŶĞǁĂƌĨĂƌĞ͘/ŶϮϬϭϴ͕
ĨŽůůŽǁŝŶŐĂĐŽŵƉĞƚŝƚŝǀĞĞǀĂůƵĂƚŝŽŶƉƌŽĐĞƐƐ͕ƚŚĞƚŚĞŶ'ŽǀĞƌŶŵĞŶƚƐĞůĞĐƚĞĚƚŚĞh<͛Ɛ
dLJƉĞϮϲ'ůŽďĂůŽŵďĂƚ^ŚŝƉ͕ŵŽĚŝĨŝĞĚƚŽŵĞĞƚƵƐƚƌĂůŝĂŶƌĞƋƵŝƌĞŵĞŶƚƐ͕ĂƐƚŚĞ
ƌĞĨĞƌĞŶĐĞƐŚŝƉĚĞƐŝŐŶĨŽƌƚŚĞ,&͘dŚĞ'ŽǀĞƌŶŵĞŶƚĂĐĐĞƉƚĞĚĂƚƚŚĞƚŝŵĞƚŚĂƚƚŚĞ
,&ƉƌŽŐƌĂŵǁĂƐĞdžƉŽƐĞĚƚŽĂŶƵŵďĞƌŽĨŚŝŐŚƌŝƐŬƐ͘
ϲ͘
dŚĞ,&ƉƌŽŐƌĂŵŝƐĂĐŽƌŶĞƌƐƚŽŶĞƉƌŽŐƌĂŵĨŽƌĐŽŶƚŝŶƵŽƵƐŶĂǀĂůƐŚŝƉďƵŝůĚŝŶŐĂƐ
ŽƵƚůŝŶĞĚŝŶƚŚĞ2016 Defence White PaperĂŶĚƚŚĞ2017 Naval Shipbuilding Plan ĂŶĚ
'ŽǀĞƌŶŵĞŶƚŚĂƐŝĚĞŶƚŝĨŝĞĚƚŚĂƚŽŶĞŽĨƚŚĞŵĂŝŶŽďũĞĐƚŝǀĞƐŽĨƚŚĞƉƌŽŐƌĂŵŝƐƚŽ

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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
ŵĂdžŝŵŝƐĞƵƐƚƌĂůŝĂŶ/ŶĚƵƐƚƌLJĂƉĂďŝůŝƚLJ;/ͿĂŶĚŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌƵƐƚƌĂůŝĂŶŝŶĚƵƐƚƌLJ
ĐŽŶƚĞŶƚ͘dŚĞ,ĞĂĚŽŶƚƌĂĐƚƐĞƚƐĂŵŝŶŝŵƵŵƵƐƚƌĂůŝĂŶĐŽŶƚĞŶƚŽĨϱϴƉĞƌĐĞŶƚĂĐƌŽƐƐ
ƚŚĞĞŶƚŝƌĞ,&ƉƌŽŐƌĂŵ͘dŚĞĐƵƌƌĞŶƚ;ΘWͿĐŽŶƚƌĂĐƚŚĂƐĂƌĞƋƵŝƌĞŵĞŶƚƚŽĂĐŚŝĞǀĞĂ
ŵŝŶŝŵƵŵŽĨϱϰƉĞƌĐĞŶƚƵƐƚƌĂůŝĂŶĐŽŶƚĞŶƚ͘
ϳ͘
dŚĞ,&ƉƌŽŐƌĂŵŝƐĂŵƵůƚŝͲďŝůůŝŽŶĚŽůůĂƌƉƌŽŐƌĂŵ͘dŚĞƚŽƚĂůĂĐƋƵŝƐŝƚŝŽŶĐŽƐƚĞƐƚŝŵĂƚĞ
ŝƐϰϰďŝůůŝŽŶ͘dŚĞ'ŽǀĞƌŶŵĞŶƚŚĂƐĂƉƉƌŽǀĞĚĂŶŝŶŝƚŝĂůďƵĚŐĞƚŽĨΨϳďŝůůŝŽŶĨŽƌƚŚĞ
ĚĞƐŝŐŶĂŶĚƉƌŽĚƵĐƚŝŽŶŝƐĂƚŝŽŶĐŽŶƚƌĂĐƚ;ǁŚŝĐŚĐŽǀĞƌƐĚĞƐŝŐŶĂĐƚŝǀŝƚLJƚŽŝŶĐŽƌƉŽƌĂƚĞ
ƵƐƚƌĂůŝĂŶƌĞƋƵŝƌĞŵĞŶƚƐ͖ƉƌŽĚƵĐƚŝŽŶŝƐĂƚŝŽŶŽĨƚŚĞĚĞƐŝŐŶĨŽƌƚŚĞŶĞǁƐŚŝƉLJĂƌĚĂƚ
KƐďŽƌŶĞŝŶ^ŽƵƚŚƵƐƚƌĂůŝĂ͖ƉƌŽƚŽƚLJƉŝŶŐŽĨƐŚŝƉďůŽĐŬƐĂƚKƐďŽƌŶĞ͖ĂŶĚůŽŶŐͲůĞĂĚŝƚĞŵƐ
ĨŽƌƚŚĞĨŝƌƐƚƚŚƌĞĞƐŚŝƉƐͿ͕ŝŶŝƚŝĂůĨĂĐŝůŝƚŝĞƐĐŽŶƐƚƌƵĐƚŝŽŶ͕ƉƵƌĐŚĂƐĞŽĨ'ŽǀĞƌŶŵĞŶƚ
ĨƵƌŶŝƐŚĞĚĞƋƵŝƉŵĞŶƚĨŽƌƚŚĞĨŝƌƐƚƚŚƌĞĞƐŚŝƉƐ͕ĂŶĚĂƌĂŶŐĞŽĨƐĐŝĞŶĐĞĂŶĚƚĞĐŚŶŽůŽŐLJ
ĂĐƚŝǀŝƚŝĞƐ͘
ϴ͘
KŶĞĐĞŵďĞƌϭϰ͕ϮϬϭϴ͕ƚŚĞƚŚĞŶ'ŽǀĞƌŶŵĞŶƚƐŝŐŶĞĚƚŚĞ,ĞĂĚŽŶƚƌĂĐƚǁŝƚŚ
^^ŚŝƉďƵŝůĚŝŶŐWƚLJ>ƚĚ͕ĂǁŚŽůůLJŽǁŶĞĚƐƵďƐŝĚŝĂƌLJŽĨ^LJƐƚĞŵƐƵƐƚƌĂůŝĂ>ƚĚ͘
^^ŚŝƉďƵŝůĚŝŶŐŶŽǁƚƌĂĚĞƐĂƐ^LJƐƚĞŵƐDĂƌŝƚŝŵĞƵƐƚƌĂůŝĂ;^DͿ͘tŚŝůƐƚ
^DŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞĚĞƐŝŐŶĂŶĚƉƌŽĚƵĐƚŝŽŶŽĨƚŚĞ,ƵŶƚĞƌůĂƐƐ&ƌŝŐĂƚĞƐ͕ƚŚĞ
'ŽǀĞƌŶŵĞŶƚŝƐƐĞƉĂƌĂƚĞůLJĐŽŶƚƌĂĐƚŝŶŐĨŽƌŵĂũŽƌĂƐƉĞĐƚƐŽĨƚŚĞƉƌŽŐƌĂŵ;ƉƌŝŵĂƌŝůLJƚŚĞ
ŵĂũŽƌŝƚLJŽĨƚŚĞ,&ŽŵďĂƚ^LJƐƚĞŵĚĞƐŝŐŶ͕ĞƋƵŝƉŵĞŶƚĂŶĚŝŶƚĞŐƌĂƚŝŽŶͿĂŶĚŝƐ
ƌĞƐƉŽŶƐŝďůĞĨŽƌŵĂŶĂŐŝŶŐͬĚĞůŝǀĞƌŝŶŐƚŚŽƐĞĂƐƉĞĐƚƐĂƐ'ŽǀĞƌŶŵĞŶƚ&ƵƌŶŝƐŚĞĚ΀'&;džͿ΁͘
ϵ͘
ƵƚƐƚĞĞůŽŶƐŚŝƉϭ;ǁŚŝĐŚŝƐŶŽƚLJĞƚĐŽŶƚƌĂĐƚĞĚͿǁĂƐĞdžƉĞĐƚĞĚƚŽŽĐĐƵƌďLJƚŚĞĞŶĚŽĨ
ϮϬϮϮǁŝƚŚĚĞůŝǀĞƌLJĂŶƚŝĐŝƉĂƚĞĚďLJƚŚĞĞŶĚŽĨϮϬϮϵĂŶĚ/ŶŝƚŝĂůKƉĞƌĂƚŝŶŐĂƉĂďŝůŝƚLJŝŶ
ϮϬϯϭ͘ƵƚƐƚĞĞůŚĂƐŶŽǁƐůŝƉƉĞĚƵŶƚŝůŶŽůĂƚĞƌƚŚĂŶŵŝĚͲϮϬϮϰǁŝƚŚĚĞůŝǀĞƌLJŶŽǁ
ĞdžƉĞĐƚĞĚďLJƚŚĞĞŶĚŽĨϮϬϯϭĂŶĚ/KŝŶϮϬϯϯ͘
ϭϬ͘
dŽĚĂƚĞ͕ƚŚĞ,&ƉƌŽŐƌĂŵŚĂƐďĞĞŶƚŚĞƐƵďũĞĐƚŽĨĂŶƵŵďĞƌŽĨŝŶĚĞƉĞŶĚĞŶƚĂƐƐƵƌĂŶĐĞ
ƌĞǀŝĞǁƐ͕ĂƌĞǀŝĞǁďLJWĂƌƚŶĞƌƐŝŶWĞƌĨŽƌŵĂŶĐĞŝŶEŽǀĞŵďĞƌϮϬϮϭ͕ĂŶĚŝƐĐƵƌƌĞŶƚůLJƚŚĞ
ƐƵďũĞĐƚŽĨĂŶEKƉĞƌĨŽƌŵĂŶĐĞĂƵĚŝƚĞdžƉĞĐƚĞĚƚŽďĞƚĂďůĞĚŝŶDĂƌĐŚϮϬϮϯ͘
Objectives and Scope 
ϭϭ͘
dŚĞďƌŽĂĚŽďũĞĐƚŝǀĞƐŽĨƚŚŝƐZĞǀŝĞǁĂƌĞƚŽŝŶǀĞƐƚŝŐĂƚĞƚŚĞĐƵƌƌĞŶƚƉƌŽŐƌĂŵ
ŵĂŶĂŐĞŵĞŶƚŝŶĨŽƌŵĂƚŝŽŶŽŶĐŽƐƚ͕ƐĐŚĞĚƵůĞĂŶĚƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ,&ƉƌŽŐƌĂŵ
;ŐŝǀĞŶƚŚĞĚĞůĂLJƐĞdžƉĞƌŝĞŶĐĞĚƚŽĚĂƚĞͿĂŶĚĂƐƐĞƐƐ͕ƵƐŝŶŐƚŚĞ^^͛ƐŬŶŽǁůĞĚŐĞĂŶĚ
ĞdžƉĞƌŝĞŶĐĞ͕ŝĨƚŚĞƉƌŽĐĞƐƐĞƐƉƵƚŝŶƉůĂĐĞĂŶĚĂĐƚŝŽŶƐƚĂŬĞŶďLJĞĨĞŶĐĞĂŶĚ
DĂƌŝƚŝŵĞ^LJƐƚĞŵƐƵƐƚƌĂůŝĂƚŽƌĞƐĞƚƚŚĞƉƌŽŐƌĂŵƐŚŽƵůĚďĞĞĨĨĞĐƚŝǀĞŐŽŝŶŐĨŽƌǁĂƌĚ͘
DĂƚƚĞƌƐǁŚŝĐŚŵĂLJďĞĐŽŶƐŝĚĞƌĞĚďLJƚŚĞZĞǀŝĞǁŝŶĐůƵĚĞ͗
x ƚŚĞ^^͛ƐǀŝĞǁŽŶƚŚĞĐƵƌƌĞŶƚŬĞLJƌŝƐŬƐƚŽƚŚĞƉƌŽŐƌĂŵĂƐŝĚĞŶƚŝĨŝĞĚŝŶƚŚĞƌŝƚŝĐĂů
/ƐƐƵĞƐ>ŝƐƚ;/>ͿĂŶĚǀŝƐŝƚƌĞƉŽƌƚƐƉƌĞǀŝŽƵƐůLJƉƌŽǀŝĚĞĚďLJƚŚĞ^^ƵŶĚĞƌŝƚƐdKZ͖
x ƚŚĞƐŬŝůůƐ͕ƚĞĐŚŶŝƋƵĞƐĂŶĚƐLJƐƚĞŵƐďĞŝŶŐƵƐĞĚƚŽĚĞǀĞůŽƉĐŽƐƚĂŶĚƐĐŚĞĚƵůĞ
ĞƐƚŝŵĂƚĞƐ͖
x ƚŚĞůŝŬĞůŝŚŽŽĚŽĨĂĐŚŝĞǀŝŶŐƚŚĞƚŚƌĞĞŬĞLJŵŝůĞƐƚŽŶĞƐŽĨƉƌĞůŝŵŝŶĂƌLJĚĞƐŝŐŶƌĞǀŝĞǁ
ŝŶ:ƵůLJϮϬϮϯ͕ĐƵƚƐƚĞĞůďLJŵŝĚͲϮϬϮϰ͕ĂŶĚĚĞůŝǀĞƌLJŽĨƚŚĞƐŚŝƉϭďLJƚŚĞĞŶĚŽĨϮϬϯϭ͖
ĂŶĚ
x ŽƚŚĞƌĨĂĐƚŽƌƐͬƌŝƐŬƐƚŚĂƚƚŚĞ^^ďĞůŝĞǀĞŵĂLJďĞŶĞĞĚĨƵƌƚŚĞƌĂƚƚĞŶƚŝŽŶďLJ,&
ŶƚĞƌƉƌŝƐĞƐĞŶŝŽƌŵĂŶĂŐĞŵĞŶƚ͘

---

ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
ϭϮ͘
dŚĞZĞǀŝĞǁŝƐƚŽŵĂŬĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐƚŽŝŵƉƌŽǀĞƚŚĞƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞ,&
ƉƌŽŐƌĂŵĂŶĚŝĚĞŶƚŝĨLJƚŚĞƌŝƐŬƐƚŽƚŚĞĨƵƚƵƌĞĐŽŵƉůĞƚŝŽŶŽĨƚŚĞƉƌŽŐƌĂŵǁŝƚŚƉƌŽƉŽƐĞĚ
ƐƚƌĂƚĞŐŝĞƐƚŽŵŝƚŝŐĂƚĞƚŚŽƐĞƌŝƐŬƐ͘
Timing 
ϭϯ͘
dŚĞZĞǀŝĞǁŝƐƚŽƌĞƉŽƌƚďLJĞĐĞŵďĞƌϮϬϮϮƚŽĞŶĂďůĞŝƚƐŽƵƚĐŽŵĞƐƚŽďĞĐŽŶƐŝĚĞƌĞĚŝŶ
ƚŚĞĞĨĞŶĐĞ^ƚƌĂƚĞŐŝĐZĞǀŝĞǁ͘
ϭϰ͘
dŽĞŶĂďůĞƚŚŝƐƚŝŵĞůŝŶĞ͕ƚŚĞ^^ǁŝůůƉƌŽǀŝĚĞĂůŝƐƚŽĨŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵĞƐƚĞĚĨƌŽŵ
ĞĨĞŶĐĞĂŶĚ/ŶĚƵƐƚƌLJƚŽƐƵƉƉŽƌƚƚŚĞŝƌZĞǀŝĞǁ͘
Ă͘ LJƚŚĞĞŶĚŽĨ^ĞƉƚĞŵďĞƌϮϬϮϮ͕ĞĨĞŶĐĞĂŶĚ/ŶĚƵƐƚƌLJƉĂƌƚŝĐŝƉĂŶƚƐǁŝůůƉƵůů
ƚŚĂƚŝŶĨŽƌŵĂƚŝŽŶƚŽŐĞƚŚĞƌĂŶĚƉƌŽǀŝĚĞŝƚƚŽƚŚĞ^^͘
ď͘ dŚĞ^^ǁŝůůƌĞǀŝĞǁƚŚĞŝŶĨŽƌŵĂƚŝŽŶƉƌŽǀŝĚĞĚĂŶĚƌĞƋƵĞƐƚŵĞĞƚŝŶŐƐ;ǀŝĂ
ǀŝĚĐŽŶŽƌƉŚŽŶĞͿĂƐŶĞĞĚĞĚĚƵƌŝŶŐƚŚĞĨŝƌƐƚϯǁĞĞŬƐŽĨKĐƚŽďĞƌ͘
Đ͘ ƵƌŝŶŐƚŚĞůĂƐƚǁĞĞŬŽĨKĐƚŽďĞƌĂŶĚĨŝƌƐƚǁĞĞŬŽĨEŽǀĞŵďĞƌ͕ƚŚĞ^^ǁŝůů
ŵĞĞƚĨĂĐĞƚŽĨĂĐĞǁŝƚŚƚŚĞƉĂƌƚŝĐŝƉĂŶƚƐĚƵƌŝŶŐƚŚĞ^^͛ƐŶŽƌŵĂůƋƵĂƌƚĞƌůLJ
ǀŝƐŝƚ͘
Ě͘ dŚĞ^^;ŽƌƐŽŵĞŵĞŵďĞƌƐƚŚĞƌĞŽĨͿŵĂLJĞdžƚĞŶĚŝƚƐƋƵĂƌƚĞƌůLJǀŝƐŝƚĨƵƌƚŚĞƌ
ŝŶƚŽƚŚĞŵŽŶƚŚŽĨEŽǀĞŵďĞƌƚŽĂůůŽǁĨŽƌĨƵƌƚŚĞƌĞŶŐĂŐĞŵĞŶƚǁŝƚŚƚŚĞ
ƉĂƌƚŝĐŝƉĂŶƚƐ͘
Ğ͘ ƵƌŝŶŐůĂƚĞEŽǀĞŵďĞƌ͕ĞĂƌůLJĞĐĞŵďĞƌϮϬϮϮ͕ƚŚĞ^^ǁŝůůƉƌŽǀŝĚĞƚŚĞ
ĞůŝǀĞƌĂďůĞŝĚĞŶƚŝĨŝĞĚŝŶƉĂƌĂŐƌĂƉŚϭϱďĞůŽǁĂŶĚďLJƚŚĞĞŶĚŽĨĞĐĞŵďĞƌ͕
ƚŚĞ^^ǁŝůůƉƌŽǀŝĚĞƚŚĞĞůŝǀĞƌĂďůĞŝĚĞŶƚŝĨŝĞĚŝŶƉĂƌĂŐƌĂƉŚϭϲďĞůŽǁ͘
Ĩ͘ &ƵƌƚŚĞƌŵĞĞƚŝŶŐƐǁŝƚŚƚŚĞ^^ĂƐĚŝƐĐƵƐƐĞĚŝŶƉĂƌĂŐƌĂƉŚϭϳďĞůŽǁŵĂLJďĞ
ĐŽŶĚƵĐƚĞĚĂƐŶĞĞĚĞĚŝŶĞĂƌůLJϮϬϮϯ͘
Deliverables 
ϭϱ͘
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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.

Future questions regarding nuclear-powered submarine infrastructure at Osborne and 
HMAS Stirling should be directed 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, which is currently supporting the Hunter class frigate program. 

Australia’s SSN-AUKUS submarines will be constructed at a new, purpose-built shipyard 
at Osborne, with enabling works commencing later this year at the future submarine 
construction yard 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 nuclear-powered submarines – for 
visiting and rotational submarines, and for Australia’s own nuclear-powered 
submarines. 

Defence and the Department of Finance continue to work with Australian Naval 
Infrastructure and the Western Australian Government to develop options for large 
vessel infrastructure at Henderson, for consideration in 2024. 
Talking Points

Henderson’s critical role in Australia’s naval shipbuilding and maintenance needs to 
continue, but Government intervention is required to consolidate activities. The 
Government agreed to the Defence Strategic Review recommendation that industry 
consolidation options for the Henderson shipyard be examined urgently.

A key part of the Government’s response to the Defence Strategic Review was 
establishing an independent analysis team to examine the Royal Australian Navy’s 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
Page 1
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
surface combatant fleet and to report to Government by the end of September 2023. 
The analysis was delivered to Government on 29 September 2023.
South Australia

Through Australian Naval Infrastructure, the Government is investing more than 
$555 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 Nuclear-Powered Submarine 
Task Force to support its future infrastructure needs.

On 25 March 2022, the former Government announced it would lease, through 
Australian Naval Infrastructure, additional land north of the Osborne precinct to 
secure it for potential use as part of a future nuclear-powered submarine 
construction yard. 

The lease with Renewal SA is for 45.5 hectares of land. The lease commenced on 
1 July 2022 for one year and has two further one-year extension options. The cost 
of the lease is commercial-in-confidence. 

Enabling works, starting in 2023, will include above and in-ground utility 
relocation, construction of a new access road and other supporting 
infrastructure.

Under the Cooperation Agreement signed by the Deputy Prime Minister and the 
Premier for South Australia, the Commonwealth and South Australian Government will 
progress a land exchange for the future nuclear-powered submarine construction yard, 
and a skills and training academy at Osborne.

This will include exchanging Defence-owned land at Smithfield and Keswick to 
support South Australian urban renewal projects. 
Western Australia

Infrastructure investment of up to $8 billion over the next decade at HMAS Stirling to 
support the nuclear-powered submarine program is forecast to create around 3,000 
direct jobs and will include: 

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 its intention to invest up to 
$4.3 billion in large vessel infrastructure at Henderson, Western Australia to support 
continuous naval shipbuilding.

Defence-funded scoping studies were completed in February 2023 and further 
capability options are being developed s47C
 
. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
Page 2
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall

The Defence Strategic Review has effectively postponed decisions on the future 
makeup of the Royal Australian Navy, pending the outcome of the Surface Combatant 
Fleet review – due for completion by the end of September 2023.
Supporting Information
Questions on Notice
2023-24 Budget Estimates: 30 & 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.
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. 
Supplementary Estimates: 15 February 2023 

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 are there any other studies or plans on infrastructure 
deficiencies or updates on Henderson and the Australian Marine Complex. 

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.
Budget Estimates: 25 November 2022 (Finance Portfolio)

QoN F061, Update on Large Vessel Dry Berth - Henderson, Western Australia, Senator 
the Hon Simon Birmingham (Liberal, South Australia) asked for an update on the large 
ship infrastructure.

QoN F062, Funding – Large Vessel Dry Berth – Henderson, Western Australia, Senator 
the Hon Simon Birmingham (Liberal, South Australia) asked for information about 
funding for the large ship infrastructure.
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 all that is funded under the 
Western Australian Governments’ $89 million in fast-tracked infrastructure projects in 
the Henderson precinct; and a list of how $47 million was spent in 2021-22, and 
$65 million in 2022-23 is forecast to be spent by Defence on projects in the Henderson 
precinct.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall

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 Western Australian Naval Infrastructure, funding for the large 
vessel dry berth and Australian Naval Infrastructure’s involvement in the project.

QoN 68, Henderson Infrastructure, Senator the Hon Simon Birmingham (Liberal, 
South Australia) asked for information about funding for the large ship infrastructure 
and Australian Naval Infrastructure.
Freedom of Information (FOI) Requests

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Recent Ministerial Comments

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.

On 18 November 2022, the Deputy Prime Minister responded to questions from radio 
host Gareth Parker during an interview with 6PR Breakfast regarding decisions about 
the large ship infrastructure in Western Australia.
Nuclear-Powered Submarine Taskforce:

On 1 February 2023, the Deputy Prime Minister was interviewed by Karl Stefanovic and 
Sarah Abo on Today about the Optimal Pathway announcement and AUKUS partners’ 
industrial bases.

On 30 January 2023, at a Paris press conference, the Deputy Prime Minister and 
Minister for Foreign Affairs fielded queries about AUKUS and an interim conventional 
submarine capability.

On 25 January 2023, the Prime Minister was interviewed about nuclear submarine 
acquisition costs.

On 24 January 2023, the Deputy Prime Minister was interviewed by the Sydney 
Morning Herald about plans for the upcoming announcement of the nuclear-powered 
submarine.

On 23 January 2023, the Minister for Foreign Affairs published an opinion piece 
affirming Australia’s commitment to the Nuclear Non-Proliferation Treaty.

On 19 January 2023, the Minister for Foreign Affairs was interviewed on 
Australia-China relations, where she stated that AUKUS is about working closely with 
allies.

On 08 December 2022, the Deputy Prime Minister held a doorstop interview in 
Washington D.C to discuss the outcomes of AUSMIN, the AUKUS Defence Ministers’ 
Meeting and the intent to operationalise the Australia–United States Alliance. 

On 08 December 2022, the AUKUS Defense Ministerial Joint Statement was released 
following the AUKUS Defence Ministers’ Meeting.

On 06 December 2022, the Deputy Prime Minister and the Minister for Foreign Affairs 
held a joint press conference with the United States Secretary of State and United 
States Secretary of Defense following the AUSMIN forum.

On 29 November 2022, the Deputy Prime Minister published an opinion piece in The 
Canberra Times on the strategic imperatives of the AUKUS partnership. 

On 8 November 2022, the Deputy Prime Minister addressed the Submarine Institute of 
Australia conference where he first used the term “impactful projection” when 
describing the importance of nuclear-powered submarines.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Relevant Media Reporting 

On 18 October 2023, The Western Australian published an article titled Paul Papalia 
casts doubt on future of $4.3b Henderson dry dock project labelling it a ‘hollow 
announcement’. Journalist Josh Zimmerman stated that the Henderson dry dock will 
not be going forward as the current government has not committed to a decision. It 
mentions that a nuclear dock will need to be built but over the longer term, but that it 
is a separate entity to the non-nuclear rated berthing facility. 

On 28 August 2023, The Geraldton Guardian published an opinion piece by Chris 
Rodwell of the Western Australian Chamber of Commerce and Industry titled, As we 
approach a crossroads, WA can deliver for Australia. The article said that Western 
Australia should deliver on commitments and opportunities raised by the Defence 
Strategic Review but needs clarity and funding from the Australian Government.

On 9 August 2023, The Australian published an article titled Shipbuilding moves to 
cutting edge. Journalists Nigel Pittaway wrote that the digital Osbourne Naval 
Shipyard in Adelaide today is a far cry from the shipyards of the past. Although 
fabrication of modern naval vessels still relies on a highly-skilled workforce, the yard is 
among the most digitally-advanced of its kind in the world.

On 4 August 2023, The Strategist published an article titled Planning Defence projects 
for a new submarine era. Journalist Raelene Lockhorst wrote that significant 
investment in the Osborne shipyard is planned to manage the Collins life-of-type 
extension from 2026 to 2038 and the production of new submarines from the late 
2030s to 2055. The article also makes mention the significant planning and time that 
will be required in establishing a new east coast nuclear submarine base.

On 21 May 2023, The West Australian published an article titled, Alboversary: What 
Anthony Albanese’s first year as Prime Minister has done for Australia. Journalists 
Katina Curtis, Kimberley Caines and Dan Jervis-Bardy wrote that Labor promised $270b 
in Defence spending and that the Commonwealth needs to step in to make Henderson 
dry dock happen in WA.

On 24 April 2023, South Western Times published an article titled, Defence Strategic 
Review calls on Commonwealth and State Governments to strengthen WA’s air bases. 
Journalist Kimberley Caines wrote that the Henderson shipyard currently faces 
“significant challenges” around shipbuilding, workforce and the relationship between 
all parties involved.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
Page 6
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
Division:
Naval Shipbuilding and Sustainment Group
PDR No: 
SB23-000714
Prepared by:
Cleared by Group/Service Head:
s47E(d)
Jim McDowell
Executive Program Director
Deputy Secretary
Large Vessel Infrastructure
Naval Shipbuilding and Sustainment Group
Mob:  
s22
Ph: 
s47E(d)
 
Mob:  
s22
Ph: 
s47E(d)
Date: 4 September 2023
Date: 6 September 2023
Consultation: Australian Submarine Agency
Date: 5 September 2023
Rear Admiral Matt Buckley CSC
Mob:  
s22
Ph: 
s47E(d)
Cleared by DSR: 
Date: 5 September 2023
Major General Christopher Field, Deputy 
Ph: s47E(d)
DSR Task Force - ADF Integration
Cleared by: Stacie Hall 
Date: 12 September 2023
First Assistant Secretary Naval Shipbuilding and 
Sustainment Enterprise Headquarters
Questions on notice referred to within the brief:
2023-24 Budget Estimates: 30 & 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 atract private sector investments and
partnerships to further develop naval shipbuilding capabilities at Henderson?
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 atHenderson?
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?
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
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 theIntegrated 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 longterm
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.
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.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
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
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.
2023 Supplementary Estimates
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. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
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
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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
2023 Supplementary Estimates
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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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 
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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
October 2022 Budget Estimates 
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 
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 
proposals?
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
Key witness: Stacie Hall
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 
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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              Naval Shipbuilding and Sustainment Infrastructure
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 
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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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Supplementary Budget Estimates: October 2023 
PDR No: SB23-000714
Last updated: 6 September 2023
              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: s47E(d)
Name: Stacie Hall
Position: Executive Program Director Large Vessel Infrastructure
Position: First Assistant Secretary Enterprise Headquarters
Division: Naval Shipbuilding and Sustainment Enterprise HQ 
Group: Naval Shipbuilding and Sustainment Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
OFFICIAL
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
 
 Naval Shipbuilding Expert Advisory Panel Administration   
Handling Note:  

Greg Moriarty, Secretary of Defence to lead.  

Matt Yannopoulos, Associate Secretary to provide 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 regarding acquisition of nuclear-powered submarines and other issues 
relevant to naval acquisition and sustainment. 

The Panel’s six members were appointed for three years in February 2021 by the 
former Prime Minister.  

Remuneration for the Panel reflects 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 Government decision-making is presented 
to Cabinet and therefore confidential. 
What are the general costs related to the Naval Shipbuilding Expert Advisory Panel? 

Contracts for the six Panel members are published on AusTender and reflect a total 
‘not to exceed amount’ of $6.13 million (including GST) over the life of the contracts, 
including services, reimbursables and support provided to the Surface Combatant Fleet 
Review.  

Expenditure against the six contracts from 1 February 2021 to 31 August 2023 for 
services and reimbursables was approximately $3.72 million (GST exclusive). This 
amount includes the Shipbuilding Masterclass and support to the Surface Combatant 
Fleet Review. 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
s47E(d)
/ 
s22
 
Phone:  
s47E(d)
/ s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
 
What activities do the Naval Shipbuilding Expert Advisory Panel members undertake? 

The Panel’s intent is to conduct five in-country visits to Australia per calendar year.  

In 2022, the Panel conducted five visits to Australia (Adelaide, Canberra, Perth and 
Sydney) in February, May, July, October, and December, and met with Defence 
Portfolio Ministers, defence primes and subcontractors, and senior Government 
representatives. 

The Panel has conducted four visits to date in 2023 (February, April, July, and October). 
The remaining in-country visit is scheduled for December 2023.  

Former Naval Shipbuilding Advisory Board members and current Panel members have 
provided evidence at Senate Estimates on five occasions, mostly recently in June 2021. 
Does the dominance of the Naval Shipbuilding Expert Advisory Panel by United States citizens 
reflect a US bias?  

Membership of the Panel is focused 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.  

As the public might reasonably expect, we leverage this experience 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 given 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 are regularly reviewed. 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
s47E(d)
/ 
s22
 
Phone:  
s47E(d)
/ s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  

Relevant foreign government approvals are also in place to support these 
engagements. 
Background  
Transition from Naval Shipbuilding Advisory Board to 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 former 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 reimbursables between January 2017 and December 2020 was 
approximately $6 million. 
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 via an individual 
consultancy contract.  

Reporting of Panel member contracts on AusTender reflects the maximum contract 
value and includes services and reimbursables.  
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 from each Australia and the 
United Kingdom.  

The current Panel members are: 
Ͳ
Chair: Vice Admiral William Hilarides, United States Navy (Retd), former 
Commander, United States Naval Sea Systems Command (United States citizen); 
Ͳ
Rear Admiral Thomas Eccles, United States Navy (Retd), Chief Executive Officer, 
Trident Maritime Systems (United States citizen); 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
s47E(d)
/ 
s22
 
Phone:  
s47E(d)
/ s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
Ͳ
Mr Howard Fireman, former Senior Vice President and Chief Digital Officer, 
American Bureau of Shipping (United States citizen);  
Ͳ
Ms Gloria Valdez, former Deputy Assistant Secretary of the US Navy for 
shipbuilding (United States citizen).  
Ͳ
Mr Murray Easton, former Chair of Babcock Facilities Management (British 
citizen); and 
Ͳ
Mr Ron Finlay AM, Principal and Chief Executive of Finlay Consulting (Australian 
citizen). 
Advice to Government  

The Panel’s advice to 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 
In Q
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 
In Q
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 (Retd) covering his time as a member of the Naval Shipbuilding 
Advisory Board.  
In Q
QoN 41, former US government officials,  Senator Jordon Steele-John (Greens, 
Western Australia), asked for information on what advice panel members were 
providing to the Department 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 (Retd).  
In Q
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  
˜
No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.   
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
s47E(d)
/ 
s22
 
Phone:  
s47E(d)
/ s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
Recent Ministerial Comments  
˜
On 28 April 2023, during an interview with Andy Park for the ABC’s Radio National 
Drive Program, in response to a question about the remuneration of retired United 
States Navy Admirals consulting the Department of Defence, the Minister for Defence 
Industry mentioned that one of these was the Chair of the Naval Shipbuilding Expert 
Advisory Panel, Vice Admiral William Hilarides, United States Navy (Retd).  
˜
On 25 April 2023, during an interview with Madeleine Morris for ABC News Breakfast, 
when asked about Vice Admiral William Hilarides, United States Navy (Retd) leading the 
Surface Combatant Fleet Review, the Minister for Defence Industry noted his role as 
Chair of the Naval Shipbuilding Expert Advisory Panel.  
Relevant Media Reporting   
˜
Media reporting on the Naval Shipbuilding Expert Advisory Panel has focused almost 
exclusively on the remuneration of panel members and potential conflicts of interest.  
˜
In the Australian on 17 August 2023, Ben Packham and David Ross reported that the 
Department of 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 (Retd), “has been paid almost $2.5m for serving on Australian 
shipbuilding advisory panels since 2016”.  
˜
In ABC online coverage on 27 April 2023, Andrew Greene reported that several retired 
US military officers (including Vice Admiral William Hilarides, United States Navy (Retd)) 
were contracted by Defence as consultants and commented on their remuneration.  
˜
In The Sydney Morning Herald on 27 April 2023, Matthew Knott reported that various 
retired senior US military officers have been paid up to $7500 a day for advice on major 
defence projects. Knott reports that Vice Admiral William Hilarides, United States Navy 
(Retd), would be hired to lead a snap review of the RAN’s surface fleet” and reports he 
had previously been paid “up to $US1.6 million since 2016” and charged $US4000 a 
day.  
˜
In The Australian on 26 April 2023, Cameron Stewart reported that Vice Admiral 
William Hilarides, United States Navy (Retd), “won a lucrative Australian contract as the 
head of a review that will determine the future size and structure of the Royal 
Australian Navy”. Stewart further reported past remuneration for Vice Admiral 
Hilarides of $US1.3 million since 2016 and charges of $US4000 a day for consulting.  
˜
In ABC online coverage on 25 April 2023, Andrew Greene reported that Vice Admiral 
William Hilarides, United States Navy (Retd), former Secretary of the Department of 
Finance Ms Rosemary Huxtable and former Australian fleet commander Vice Admiral 
Mayer, Royal Australian Navy would conduct an analysis into the Navy’s Surface 
Combatant Fleet and commented on the remuneration that Vice Admiral Hilarides 
receives. The Minister for Defence Industry is quoted as saying that Vice Admiral 
William Hilarides, is the current chair of the Naval Shipbuilding Expert Advisory Panel.  
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
s47E(d)
/ 
s22
 
Phone:  
s47E(d)
/ s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
˜
In the Washington Post on 25 April 2023, Nate Jones and Craig Whitlock reported that 
several retired US military officials have provided consultancy services to foreign 
governments. The authors reported that Vice Admiral William Hilarides, United States 
Navy (Retd), is “the second-highest earner” (of this group) who, since 2016, has earned 
up to $1.6 million from consulting contracts with the Australian Government and 
reported he will lead the Surface Combatant Fleet Review. 
˜
In the Washington Post on 7 March 2023, Nate Jones and Craig Whitlock reported on 
former United States Navy officers consulting the Australian Government on 
shipbuilding programs, the work of Admiral John Richardson, United States Navy 
(Retd), and mentions Naval Shipbuilding Expert Advisory Panel members Vice Admiral 
William Hilarides, United States Navy (Retd), and Rear Admiral Thomas Eccles, United 
States Navy (Retd), including their purported remuneration.  
 
Division: 
Associate Secretary Group  
PDR No:  
SB23-000715 
Prepared by: 
Cleared by Division Head: (Band 2/2* level)  
Victoria Bergmann, Assistant Secretary 
Victoria Bergmann, Assistant Secretary 
Naval Shipbuilding Expert Advisory Panel 
Naval Shipbuilding Expert Advisory Panel 
Secretariat, Associate Secretary Group  
Secretariat, Associate Secretary Group  
Mob:  
s22
 
 
Ph: 
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Mob:  
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Ph: 
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Date: 23 August 2023 
Date: 23 August 2023 
 
Consultation: N/A  
Cleared by CFO  
Date: 1 September 2023 
Jen Makunde 
Acting Assistant Secretary Finance – Enabling Groups  
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 1 September 2023  
Matt Yannopoulos, 
Associate Secretary, Associate Secretary Group 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
Questions on notice referred to within the brief: 
2022-23 Supplementary Budget estimates  
Senator Jordon Steele-John 
Question Number: 9 
Date question was tabled: 15 February 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.  
 
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.  
 
 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
2022-23 October Budget estimates 
Senator Jordon Steele-John 
Question Number: 39 
Date question was tabled: 9 November 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? 
 
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. 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
2022-23 October Budget estimates 
Senator Jordon Steele-John 
Question Number: 41 
Date question was tabled: 9 November 2022  
 
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.  
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.  
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
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 
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. 
Prepared By: 
Cleared By:  
 
Name: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000715 
Last updated: 1 September 2023   
Naval Shipbuilding Expert Advisory Panel Administration 
Key witnesses: Greg Moriarty; Matt Yannopoulos  
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 
Senator David Shoebridge  
Question Number: 46 
Date question was tabled: 9 November 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: Victoria Bergmann  
Name: Matt Yannopoulos  
Position: Assistant Secretary, Naval Shipbuilding Expert Advisory 
Position: Associate Secretary  
Panel Secretariat  
Group/Service: Associate Secretary Group  
Branch: Naval Shipbuilding Expert Advisory Panel Secretariat  
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
MRH90 Taipan Incident 
Handling Note: Chief of Army, Lieutenant General Simon Stuart, to lead on the MRH90 
Taipan Incident. 
 
Key Messages 

An Australian Army MRH90 Taipan helicopter impacted waters near Lindeman Island, 
Queensland on the night of 28 July 2023 while participating in Exercise  
TALISMAN SABRE 2023.  

Defence is continuing to support the families of the aircrew: Captain Danniel Lyon, 
Lieutenant Maxwell Nugent, Warrant Officer Class Two Joseph Laycock and Corporal  
Alexander Naggs. 

Defence continues the recovery operation of the MRH90 Taipan helicopter, with the 
assistance of a commercial operator.  

On 29 September 2023, Government announced that the MRH90 fleet will not 
return to flying operations before the planned withdrawal in December 2024. 

The Defence Flight Safety Bureau is investigating the incident. It is too early in the 
investigation process to make any judgements about the potential cause of this 
tragic accident. 
Talking Points 
MRH90 Incident 

On the evening of Friday 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.  

On-board were Captain Danniel Lyon, Lieutenant Maxwell Nugent, Warrant Officer 
Class Two Joseph Laycock and Corporal Alexander Naggs from the 6th Aviation 
Regiment.  

Defence offers its deepest condolences to the families of these four soldiers. Defence is 
supporting the families of the aircrew and continues to keep them updated. 

Search and recovery operations have recovered a range of aircraft debris and major 
sections of the fuselage. The debris field is consistent with a catastrophic, high speed 
impact. 

The Defence Flight Safety Bureau is investigating the incident. The investigation is 
expected to take up to 12 months and is currently in its early stages. 

The Defence Flight Safety Bureau’s obligation is to conduct a thorough and objective 
investigation.  
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
If pressed: What is the status of the recovery operation? 

Defence is continuing the recovery operation of the MRH90 Taipan helicopter.  

The recovery operation has been conducted in an exceptionally challenging 
environment and requires specialist equipment not available within the ADF. 

Defence has engaged a commercial contractor to assist with the completion of the 
recovery operation. 

The commercial operator is working closely with the ADF in support of investigations 
led by the Queensland Police Service and Defence Flight Safety Bureau. 
If pressed: What else has been recovered? 

During the course of the recovery operation, HMAS Huon, Australian Defence Vessel 
Reliant and Royal Australian Navy Clearance Divers recovered items including personal 
effects and wreckage from the MRH90 Taipan, along with the voice and flight data 
recorder. 

The Queensland Coroner has directed the release of the recovered wreckage to 
Defence. The wreckage is being transported to a controlled site to support the Defence 
Flight Safety Bureau investigation into the accident. 
If pressed: Has the voice and flight data recorder been downloaded? 

The voice and flight data recorder has been downloaded and is being analysed as part 
of the investigation by the Defence Flight Safety Bureau, with the assistance of the 
aircraft manufacturer. 
If pressed: The process of the investigation 

The Defence Flight Safety Bureau is responsible for investigating all military aircraft 
accidents.  

The purpose of the investigation is to determine what happened from an aviation 
safety perspective and make recommendations that reduce the probability of 
reoccurrence.  

An aviation safety investigation does not seek to apportion blame or determine liability.  

The Australian Transport Safety Bureau will also support the Defence Flight Safety 
Bureau in the course of the investigation. 

Defence is committed to a thorough investigation into the incident, and it will take as 
long as required. 

Defence will support other investigations including a Coronial Inquest, an Inspector 
General of the Australian Defence Force Inquiry and a Comcare Investigation. 
If pressed: Has the preliminary report into the incident in vicinity of Lindeman Island on 
28 July 2023 been released? 

Defence has received a preliminary report into the July 2023 MRH90 incident as part of 
the Defence Flight Safety Bureau investigation process. 
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 

The preliminary report makes it clear that it is too early in the investigation process to 
make any judgements about the potential cause of this tragic accident. The root cause 
of the accident remains unknown. 

The investigation into this tragic incident is multifaceted, and this is one step in what 
will be a long and complex investigation. 

It is premature and imprudent to draw any conclusions of the causal factors of the 
accident based on any preliminary analysis or reporting. 

The investigation is expected to take up to 12 months and is currently in its early 
stages.  

Defence continues to support families, friends and the broader Defence community 
through the investigation process. 
If pressed: Has the interim report been released on the incident at Jervis Bay on  
22 March 2023? 

Defence received an interim safety investigation report into the March 2023 ditching of 
an MRH90 in Jervis Bay, New South Wales. 

The report confirms that the aircraft suffered a failure of the left-hand engine. The 
engine failure was consistent with a known engine fault mode, for which a 
recommended (though not mandatory) modification was available. 

While an interim report has been provided, the investigation is ongoing, and it would 
be inappropriate to release further details at this time. 
If pressed: Why did Defence resume flying the MRH90 following the incident at Jervis Bay on 
22 March 2023? 

MRH90 flying operations were suspended immediately following the ditching.  

Flying operations resumed in April 2023, after extensive risk analysis and the 
implementation of additional controls to mitigate risk. 

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 
fol owing the incident at Lindeman Island on 28 July 2023? 

The MRH90 fleet would not have returned to flying operations until the safety 
investigation had progressed sufficiently to understand what may have contributed to 
the incident. The investigation is in its early stages and could take 12 months or more 
to complete. 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
If pressed: What were the costs for MRH90? 

The cost to procure the MRH90 was $3.650 billion. 

The cost of operating the MRH90 is extraordinarily high and unsustainable. At 
approximately $300 million per year, this represents a per hour expense of 
approximately $58,000. 
If pressed: What is the capability impact to the MRH90 early withdrawal? 

The MRH90 has made important contributions to Defence operations since 2007, 
carrying out amphibious, land combat, special operations and training roles. 

Defence is focussed on introducing the new fleet of 40 UH-60M Black Hawk helicopters 
which will replace the MRH90. The United States has already made a tremendous 
contribution, supporting the agreed rapid delivery of the first three Black Hawks to 
Australia.  

Flying operations for the Black Hawks commenced last month (September). 

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. 

Together, these capable helicopters will continue to provide a robust and ready 
aviation capability to the Australian people. 
If pressed: How wil  the early withdrawal of the MRH90 affected Defence’s ability to respond to 
a high-risk weather season? 

Army remains postured to contribute to Defence Assistance to the Civil Community 
during the 2023-24 high-risk weather season with its expanded fleet of CH-47F Chinook 
cargo helicopters and AW139 utility helicopters, both operated by the 5th Aviation 
Regiment. 
If pressed: What is the workforce impact from the MRH90 early withdrawal? 

Our industry partner supporting the MRH90 is Airbus Australia Pacific.  

Defence has developed a proactive plan to support the skilled workforce transition 
from the MRH90 to Army’s current and future fleet of helicopters over the next two 
years.  

Defence is working with Airbus and other key Industry partners that support Army 
Aviation to identify follow-on opportunities for the skilled MRH90 industry workforce to 
retain their skills and experience throughout this period.  
 
 
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
If pressed: Has NATO Helicopter Industries (NHI) stated there are no unsafe conditions for the 
MRH90 fleet to continue operating? 

Defence is aware that the original equipment manufacturer for the MRH90 Taipan, 
NATO Helicopter Industries, has issued a statement based on its initial investigation 
findings.  

In Defence’s view, it is too early to draw any conclusions of the causal factors of the 
incident based on preliminary analysis. 
If pressed: The broader Army Battlefield Aviation Program, including AH-64E Apache, UH-60M 
Black Hawk, Small UAS and Army Aviation disposition: 

Refer to SB23-000719, PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Battlefield Aviation Program.  
Supporting Information 
Questions on Notice  
Senate Question Time: 9 August 2023 
˜
QoN 2332, Report into MRH90 incident at Jervis Bay, Senator Jacqui Lambie (Jacqui 
Lambie Network, Tasmania) asked the Minister representing the Minister for Defence 
for details with respect to the crash of an MRH90 into Jervis Bay; and in respect of the 
MRH90 accident during Exercise TALISMAN SABRE 2023, what impact would a 
permanent grounding of the MRH90 have on the ADF’s planned response to the 
upcoming bushfire season. 
Senate Question Time: 20 April 2023 
˜
QoN 2004, MRH-90, Senator David Shoebridge (Greens, New South Wales) asked the 
Minister representing the Minister for Defence questions relating to the MRH-90 
Taipan helicopter fleet and the investigation into the recent ditching incident at Jervis 
Bay, NSW.  
Freedom of Information (FOI) Requests 
˜
On 21 September 2023, a media outlet sought access under Freedom of Information 
for transcripts of the Voice and Flight Data Recorder from the MRH90 that crashed on 
28 July 2023. A decision is pending.  
˜
On 4 September 2023, Sam Brennan on behalf of Senator David Shoebridge, sought 
access under Freedom of Information to documentation in relation to MRH90 flight 
test reports and standardisation manuals. A decision is pending. 
˜
On 24 August 2023, a media outlet sought access under Freedom of Information to 
documentation relating to Airworthiness directives for the MRH90 fleet. A decision is 
pending. 
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
˜
On 10 August 2023, an activist sought access under Freedom of Information to 
documentation in relation to incident and safety reports for the MRH90. A decision is 
pending. 
˜
On 10 August 2023, an activist sought access under Freedom of Information to 
documentation in relation to MRH90 engine failure in 2010. A decision is pending. 
˜
On 10 August 2023, an activist sought access under Freedom of Information to 
documentation in relation to MRH90 tail rotor issue in 2019. A decision is pending. 
˜
On 9 August 2023, a media outlet sought access under Freedom of Information to 
documentation relating to the MRH90 incident in March 2023. A decision is pending. 
˜
On 9 August 2023, an activist sought access under Freedom of Information to 
documentation in relation to incident and safety reports for the MRH90. A decision is 
pending. 
˜
On 8 August 2023, an anonymous individual sought access under Freedom of 
Information to documentation relating to the MRH90 incident in  
March 2023. A decision is pending. 
˜
On 4 August 2023, a media outlet sought access under Freedom of Information to 
documentation relating to the MRH90 incident in March 2023. No documents to be 
released; decision sent to applicant on 12 October 2023. 
Recent Ministerial Comments 
˜
On 29 September 2023, through a joint media release with the Minister for Defence 
Industry, 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 held a press conference at Parliament 
House, to update on the MRH90 incident during Exercise TALISMAN SABRE 2023. 
˜
On 30 July 2023, the Deputy Prime Minister held a joint press conference with the 
Chief of the Defence Force in Townsville, to update on the MRH90 incident during 
Exercise TALISMAN SABRE 2023. 
˜
On 29 July 2023, the Deputy Prime Minister held a joint press conference with the 
Chief of the Defence Force and Exercise TALISMAN SABRE 2023 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 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
Relevant Media Reporting  
˜
Australian media has reported extensively on the Deputy Prime Minister’s 
announcement that the MRH90 Taipan would not return to flying operations before 
their planned withdrawal date of December 2024.  
˜
Australian media has reported extensively on the incident involving an MRH90 
impacting waters near Lindeman Island, Queensland on 28 July 2023 while participating 
in Exercise TALISMAN SABRE 2023; the incident involving an MRH90 at Jervis Bay on 
22 March 2023; and the acquisition of the UH-60M Black Hawk Utility Helicopter to 
replace the MRH90 Multi-Role Helicopter. 
˜
On 10 August 2023, The NT News published an article, Taipan papers hidden, reporting 
on Senator David Shoebridge’s push for the release of safety documents relating to the 
MRH90. 
˜
On 18 April 2023, ABC News published an article, Army insiders claim troubled Taipan 
helicopter fleet did not receive crucial software upgrades. Defence correspondent 
Andrew Greene reported that several military figures had told the ABC a simple 
software upgrade may have prevented the emergency ditching of a MRH90 in Jervis 
Bay. 
 
Division: 
Army 
PDR No:  
SB23-000711 
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: 23 October 2023 
Date: 23 October 2023   
Consultation:   
 
Major General Jeremy King 
Date: 06 September 2023   
Rotary, Aerospace and Surveillance Systems 
Ph:  
s47E(d)
Division 
Head Joint Aviation Systems Division 
 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 23 October 2023   
Lieutenant General Simon Stuart, 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 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
Questions on notice referred to within the brief: 
 
Senate Question Time: 9 August 2023 
Senator Jacqui Lambie 
Question Number: 2332 
Date question was tabled: 9 August 2023 
 
Question 
Senator Jacqui Lambie asked the Minister representing the Minister for Defence, upon 
notice, on 09 August 2023: 
1. With respect to the crash of an MRH-90 into Jervis Bay: 
a. on what date did Defence receive an interim report into the accident; 
b. what where the interim findings; 
c. what information was utilised to remove the grounding order for the aircraft; and 
d. has a final report into the accident been received by Defence; if so, on what date; 
and what were the final findings. 
2. In respect of the tragic MRH-90 accident during Talisman Sabre, what impact would a 
permanent grounding of the MRH-90 have on the ADF’s planned response to the 
upcoming bushfire season. 
 
Answer 
Not yet tabled. 
 
Senate Question Time: 20 April 2023 
Senator David Shoebridge 
Question Number: 2004 
Date question was tabled: 20 April 2023 
 
Question 
Senator David Shoebridge asked the Minister representing the Minister for Defence, upon 
notice, on 20 April 2023: 
1. Has Defence installed a software upgrade on helicopters in the MRH90 Taipan fleet, and if 
yes:  
a. when was the software upgrade made available to Defence;  
b. when was this installed;  
c. how many helicopters had the software upgrade installed;  
d. what did the software upgrade do; and  
e. what was the cost of installing the software upgrade, and was this cost on a per-
helicopter basis.  
2. If Defence did not install a software upgrade on any of the MRH fleet, why not.  
3. Did Defence receive warnings that the software upgrade was necessary to prevent possible 
engine failures in the MRH90; and if yes, who or what entity issued these warnings and when. 
4. If the software upgrade was not installed across the full fleet of helicopters, what were the 
reasons for not installing across the entire fleet.  
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
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s22
 
 
Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000711  
Last updated: 23 October 2023 
 
MRH90 Taipan Incident 
Key witness: Lieutenant General Simon Stuart 
5. Were all pilots and mechanics operating MRH90s advised that the helicopter's turboshaft 
engines are not meant to be switched on and off repeatedly during an operation and are 
instead supposed to be powered up at the start, then shut down at the end.  
6. When will the investigation into the March 2023 emergency ditching of an MRH-90 in 
Jervis Bay be concluded.  
7. Will the findings of the investigation be made public, and if not, why not.  
8. Has the investigation made any findings in relation to the software upgrade and whether 
its installation may have prevented the emergency ditching of an MRH-90 in Jervis Bay in 
March 2023.  
9. Was the software upgrade installed on the Taipan helicopter involved in the emergency 
ditching in Jervis Bay in March 2023, prior to that incident.  
10. What were the "risk mitigations", as stated by Defence, which were put in place to allow 
the Taipan helicopters to return to normal flying operations on April 6 following a short 
grounding.  
11. Has the software upgrade now been installed on all of Australia's MRH90 Taipan 
helicopters; and if not, why not.  
12. Will Defence be releasing the 2016 Houston review into the Tiger and Taipan fleets; and if 
not, why not. 
 
Answer 
1. Defence is conducting an internal investigation into the incident and will respond to these 
questions when the investigation is complete.  
Prepared By: 
Cleared By:  
 
Name: Brigadier David Hafner 
Name: Lieutenant General Simon Stuart 
Position: Deputy Commander Aviation Command 
Position: Chief of Army 
Division: Headquarters Aviation Command 
Group/Service: Army 
Phone: / 
s47E(d)
s22
 
 
Phone:  
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/  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000717
Last updated: 7 September 2023       LAND 400 Phase 3 - Land Combat Vehicle System (Infantry Fighting Vehicle)
Key witness: Major General Richard Vagg; Sarah Myers.
LAND 400 Phase 3 - Land Combat Vehicle System (Infantry Fighting Vehicle)
Handling Note: 

Head Land Capability, Major General Richard Vagg to lead on LAND 400 Phase 3 – 
Infantry Fighting Vehicle capability.

Acting Head Armoured Vehicles, Sarah Myers to lead on LAND 400 Phase 3 – Infantry 
Fighting Vehicle tender 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 an enemy that threatens 
Australia or its immediate littoral region. Australia’s ability to conduct close combat is 
a crucial element of our overall deterrent posture. 

The Government has accepted the recommendation of the Defence Strategic Review 
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. 

Defence conducted a competitive and robust tender process, including extensive test 
and evaluation of both tenderers’ vehicles, with the Hanwha Redback Infantry 
Fighting Vehicle determined as best meeting Defence’s requirements and providing a 
value for money outcome.

Defence has commenced negotiations with Hanwha Defense Australia and will return 
to Government for project second pass approval in Quarter 4 2023 prior to executing 
the contract.

LAND 400 Phase 3 remains a live tender and the Commonwealth is undertaking 
contract negotiations with the down-selected preferred tenderer, Hanwha Defense 
Australia. It is therefore important to ensure probity processes remain in effect until 
final Government approval and the contract is executed.
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 successfully sustain mounted 
combat operations against emerging and future threats as part of the Integrated Force.

The tender process was competitive with the Hanwha Redback best meeting Defence’s 
requirements and providing a value for money outcome.
Prepared By:
Cleared By: 
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured Fighting Vehicles
Position: Deputy Secretary 
Division: Armoured Fighting Vehicles Branch
Group/Service: Capability Acquisition and Sustainment
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Supplementary Budget Estimates October 2023
PDR No: SB23-000717
Last updated: 7 September 2023       LAND 400 Phase 3 - Land Combat Vehicle System (Infantry Fighting Vehicle)
Key witness: Major General Richard Vagg; Sarah Myers.

The introduction of the Infantry Fighting Vehicle will be accelerated to ensure delivery 
is synchronised with Army’s Long Range Fires and Landing Craft capabilities. 
If pressed: Why did we select the Hanwha Redback? 

Defence has conducted a robust tender process including extensive test and evaluation 
of both tenderers’ vehicles which has provided evidence and confidence in the 
down-selection of the Redback Infantry Fighting Vehicle. 

The tender process was competitive with the Hanwha Redback best meeting Defence’s 
unique requirements.

This is a value-for-money investment in a world-class capability that will serve the 
Australian Army for the next 30 years.
If pressed: When will a contract be signed?

Defence remains in negotiations with Hanwha Defense Australia and will return to 
Government for project second pass approval in Quarter 4 2023, prior to executing the 
contract.
If pressed: What are the implications of this decision on the Boxer Heavy Weapon Carrier 
initiative with Germany?

The decision on the Infantry Fighting Vehicle project is not linked to the Australian and 
German Boxer Heavy Weapon Carrier in-principle arrangement. The two are 
completely separate programs. 
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 and must be replaced as a core component of the Combined 
Arms Fighting System.

The Infantry Fighting Vehicles will be fitted with an Active Protection System to counter 
anti-tank missiles and other projectiles. The vehicles will also be armed with Spike LR2 
Anti-Tank Guided Missiles.

A competitive and robust tender evaluation process was conducted over 2018 to 2021, 
comprising of a two year Risk Mitigation Activity that included extensive test and 
evaluation of both tenderers’ platforms.
Australian Industry Capability

The Government announced that, subject to negotiations and Government approval, 
the new vehicles will be built in Australia at the Hanwha facilities currently under 
construction at Avalon, Geelong, 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 Fighting Vehicles
Position: Deputy Secretary 
Division: Armoured Fighting Vehicles Branch
Group/Service: Capability Acquisition and Sustainment
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Supplementary Budget Estimates October 2023
PDR No: SB23-000717
Last updated: 7 September 2023       LAND 400 Phase 3 - Land Combat Vehicle System (Infantry Fighting Vehicle)
Key witness: Major General Richard Vagg; Sarah Myers.

Hanwha Defense Australia has identified approximately 100 Australian companies to be 
involved in this project. 

The acquisition contract is expected to develop significant Australian industrial 
capability. Australian contract expenditure is subject to negotiations, and is expected to 
be around 60 per cent. This will be confirmed at Government approval, prior to 
contract signature.
Budget

The total acquisition project budget is expected to be within $5 to $7 billion, subject to 
the finalisation of negotiations and Government approval.

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
The Minister for Defence Industry announced Hanwha Defense 
Australia’s Redback Infantry Fighting Vehicle has been down-
27 July 2023
selected as the preferred tenderer to deliver 129 Infantry Fighting 
Vehicles to the Australian Army.
The Prime Minister and Deputy Prime Minister released the public 
24 April 2023
version of the Defence Strategic Review and the Government’s 
response to the Review. 
The Minister for Defence Industry announced that Government 
25 November 2022
would consider the findings of the Defence Strategic Review prior to 
making a decision on the project.
The final evaluation stage of the tender concluded with approval of 
December 2021 
the Source Evaluation Report.
The Risk Mitigation Activity concluded with the submission of the 
8 October 2021
shortlisted tenderers’ final offers.
Defence signed contracts with both shortlisted tenderers to 
11 October 2019
commence the Risk Mitigation Activity.
Hanwha Defense Australia and Rheinmetall Defence Australia 
16 September 2019
announced as shortlisted tenderers to proceed to the Risk 
Mitigation Activity.
Prepared By:
Cleared By: 
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured Fighting Vehicles
Position: Deputy Secretary 
Division: Armoured Fighting Vehicles Branch
Group/Service: Capability Acquisition and Sustainment
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000717
Last updated: 7 September 2023       LAND 400 Phase 3 - Land Combat Vehicle System (Infantry Fighting Vehicle)
Key witness: Major General Richard Vagg; Sarah Myers.
Date
Action
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 

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments 

On 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.

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.

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 that 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 31 July 2023, the Asia-Pacific Defence Reporter published an article titled Selection 
of Redback IFV confirms the importance of test & trials. The article speculates on the 
Risk Mitigation Activity outcomes and what may have contributed to Hanwha Defense 
Prepared By:
Cleared By: 
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured Fighting Vehicles
Position: Deputy Secretary 
Division: Armoured Fighting Vehicles Branch
Group/Service: Capability Acquisition and Sustainment
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000717
Last updated: 7 September 2023       LAND 400 Phase 3 - Land Combat Vehicle System (Infantry Fighting Vehicle)
Key witness: Major General Richard Vagg; Sarah Myers.
Australia being announced as the preferred tenderer over Rheinmetall Defence 
Australia.

On 27 July 2023, Australian media reported extensively on the announcement of 
Hanwha Defense Australia as the down-selected preferred tenderer for LAND 400 
Phase 3, including an ABC News article titled South Korea clinches multi-billion-dollar 
Australian Army vehicle contract. 

On 26 July 2023, The Australian published an article titled South Korea wins key 
infantry vehicle deal speculating that Hanwha Defense Australia was expected to be 
awarded the contract to supply the Army with Infantry Fighting Vehicles. It speculates 
that this decision will jeopardise the German Boxer export opportunity and that 
Rheinmetall’s Brisbane factory will likely close in 2026. It also speculates that 
Rheinmetall’s Lynx vehicle had a fundamental vibration issue suggesting this is why 
they would not be selected as preferred tenderer.
Division:
Armoured Vehicle Division
PDR No: 
SB23-000717
Prepared by:
Cleared by Division Head: 
Sarah Myers
Major General Jason Blain
Assistant Secretary Armoured Fighting 
Head Armoured Vehicle
Vehicles Branch
Mob:  
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Ph: 
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Mob  
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Ph: 
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Date: 30 August 2023
Date: 1 September 2023
Consultation: N/A
Cleared by DSR: N/A
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 7 September 2023
Chris Deeble, Deputy Secretary Capability Acquisition 
and Sustainment Group
Prepared By:
Cleared By: 
Name: Sarah Myers
Name: Chris Deeble
Position: Assistant Secretary Armoured Fighting Vehicles
Position: Deputy Secretary 
Division: Armoured Fighting Vehicles Branch
Group/Service: Capability Acquisition and Sustainment
Phone: / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000718  
Last updated: 24 October 2023 
Protected Mobility Vehicle - Light (Hawkei) 
Key witness: Major General Andrew Bottrell 
Protected Mobility Vehicle – Light (Hawkei) 
Handling Note: Major General Andrew Bottrell, Head Land Systems, to lead. 
 
Key Messages 

The Protected Mobility Vehicle-Light (Hawkei) has been co-developed by Defence 
and Thales Australia specifically to meet ADF requirements.

The Hawkei provides a high level of protection for soldiers against blast and ballistic 
threats with superior off-road mobility to enable it to operate in high-risk areas. 

On 11 November 2022, Thales Australia advised Defence it had identified a new issue 
impacting the Hawkei brakes, with the root cause still yet to be identified. 

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 the critical spare parts shortages
Talking Points 
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 can be properly investigated.  

As the safety of the Australian public, personnel and equipment is paramount, Defence 
accepted this recommendation. 
Why has Hawkei been added to the Projects of Interest list? 

In July 2023, the Hawkei Project was elevated to a Project of Interest due to Thales 
Australia’s inability to resolve the brake issue, and lift the operating restrictions across 
the wider ADF fleet. This has created significant risk to the Final Operating Capability 
milestone. 

There is also a critical shortage of Hawkei spare parts due to global supply chain 
challenges. 
If pressed: on restrictions on the use of Hawkei vehicles 

Thales reported the findings of its investigation to Defence.  

Thales identified corrosion within the Anti-lock Braking System modulator component 
Hawkei. Thales 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 will 
develop a remediation program for endorsement by Defence.  
Prepared By: 
Cleared By:  
 
Name: Brigadier John-Paul Ouvrier 
Name: Chris Deeble 
Position: Director General Land Vehicle Systems 
Position: Deputy Secretary  
Division: Land Systems Division 
Group/Service: Capability Acquisition and Sustainment 
Phone:  
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Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000718  
Last updated: 24 October 2023 
Protected Mobility Vehicle - Light (Hawkei) 
Key witness: Major General Andrew Bottrell 

Defence has paused accepting vehicles from Thales and suspended the roll out of 
vehicles to Defence units. 

Thales is working collaboratively with Defence to resolve the braking issue. 

An interim solution is being implemented that will enable the in-service fleet of Hawkei 
vehicles to be used without restriction. 

The issue is not related to the original braking issue involving the Anti-lock Braking 
System, 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’s to Ukraine would further impact the vehicle’s availability in Australia 
and risk further delays to Final Operating Capability.  

In addition to spare parts shortages, work is still being undertaken by Thales to uplift 
the vehicles to the final contracted baseline. 
Why are there Hawkei vehicles parked at Thales’ facility in Bendigo? 

About 500 vehicles remain with Thales at Bendigo either to complete work in order to 
bring them to the final contracted baseline before acceptance by the Government; or 
accepted vehicles awaiting introduction into service. 

This work must be completed before they can be delivered to units and is 
commonplace in developmental programs of this scale and complexity.  

Defence has also ceased acceptance of Hawkei vehicles from Thales until the root 
cause of the Anti-lock Braking System fault is identified and an acceptable remediation 
plan presented. 
Why has the project been delayed? 

Initial Operational Capability was pushed back from December 2019 to December 2020 
due to vehicle reliability, design maturity and production issues caused by Steyr Motors 
entering voluntary administration. 

The Hawkei Project (LAND 121 Phase 4) experienced initial challenges 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. 
Prepared By: 
Cleared By:  
 
Name: Brigadier John-Paul Ouvrier 
Name: Chris Deeble 
Position: Director General Land Vehicle Systems 
Position: Deputy Secretary  
Division: Land Systems Division 
Group/Service: Capability Acquisition and Sustainment 
Phone:  
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Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000718  
Last updated: 24 October 2023 
Protected Mobility Vehicle - Light (Hawkei) 
Key witness: Major General Andrew Bottrell 

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. 

Collectively, these delays mean that Final Operating Capability has been further 
delayed. 

Thales Australia’s inability to resolve the current brake issue is creating significant risk 
to the achievement of Final Operating Capability. 
Is Thales liable for liquidated damages due to delays? 

There are sufficient contractual mechanisms available to ensure Thales delivers the 
required capability to Defence.  

It would not be appropriate to make further comment on a commercial matter 
between Defence and Thales. 
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 $1.963 billion (as in the 
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, comparable to the Bushmaster, with superior off-road mobility. 

Thales was approved to commence full-rate production on 30 September 2020. This 
was completed in August 2022. 

Thales’ vehicle production effort is now focussed on completing the ‘uplift’ of 
manufactured vehicles to the final production baseline.  

As at 23 October2023, 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.

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. 
 
 
Prepared By: 
Cleared By:  
 
Name: Brigadier John-Paul Ouvrier 
Name: Chris Deeble 
Position: Director General Land Vehicle Systems 
Position: Deputy Secretary  
Division: Land Systems Division 
Group/Service: Capability Acquisition and Sustainment 
Phone:  
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Phone:  
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000718  
Last updated: 24 October 2023 
Protected Mobility Vehicle - Light (Hawkei) 
Key witness: Major General Andrew Bottrell 
 
 
Supporting Information 
Questions on Notice  
2022-23 October Budget Estimates: 9 November 2022 
˜
QoN 60, Senator Claire Chandler (Liberal, Tasmania) asked questions relating to an 
article in The Australian concerning speed limits, public road bans and the braking fault 
identified with in Hawkei vehicles.
Freedom of Information (FOI) Requests  
˜
No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.   
Recent Ministerial Comments  
˜
No recent comments. 
Relevant Media Reporting   
˜
On 29 March 2023, The Australian published an article in which journalist, Ben 
Packham, reported a Ukrainian Defence Ministry adviser had urged Australia to donate 
Abrams tanks and ‘Hawkeis’. 
˜
On 15 November 2022, The Australian published an article in which journalist, Ben 
Packham, reported on speed limits and public road bans applied by Defence to the 
Hawkei four-wheel drive vehicle after a braking fault was identified. 
˜
On 15 September 2022, ABC News published an article in which journalist, Tyrone 
Dalton, reported on comments by the Ukrainian ambassador to Australia about  
Ukraine’s use of Australian-made Bushmasters. Dalton adds that Bendigo-based 
manufacturer, Thales, say they are working hard to secure export orders for both 
Bushmaster and Hawkei protected mobility vehicles.  
˜
On 24 August 2022, ABC News published an article in which journalist, Shannon 
Schubert, reported Thales were making 29 of its Bendigo defence manufacturing staff 
redundant.  
˜
On 16 June 2022, The Bendigo Advertiser published an article in which journalist, Tom 
O’Callaghan, reported Defence expects the last Bendigo-built ‘Hawkeis’ to be ready by 
June 2023. 
 
Division: 
Capability Acquisition and Sustainment Group Land Systems 
Prepared By: 
Cleared By:  
 
Name: Brigadier John-Paul Ouvrier 
Name: Chris Deeble 
Position: Director General Land Vehicle Systems 
Position: Deputy Secretary  
Division: Land Systems Division 
Group/Service: Capability Acquisition and Sustainment 
Phone:  
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Phone:  
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000718  
Last updated: 24 October 2023 
Protected Mobility Vehicle - Light (Hawkei) 
Key witness: Major General Andrew Bottrell 
PDR No:  
SB23-000718 
Prepared by: 
Cleared by Division Head:  
Brigadier John-Paul Ouvrier 
Major General Andrew Bottrell 
Land Systems 
Head Land Systems 
Land Systems Division  
Land Systems Division  
Capability Acquisition and Sustainment 
Capability Acquisition and Sustainment 
Group  
Group  
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Mob:  
s22
 
Date: 20 October 2023 
Date: 20 October 2023 
Consultation: N/A 
 
Cleared by CFO / DPG / DSR: N/A 
 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 24 October 2023 
Chris Deeble 
Deputy Secretary 
Capability Acquisition and Sustainment Group 
 
܈ I confirm that all information in this brief is suitable 
for public release
Questions on Notice referred to within this brief:  
 
Budget Estimates  
Senator Claire Chandler 
Question Number: 60 
Date question was tabled: 16 December 2023 
 
Question  
With reference to reporting in The Australian, 15 November 2022, concerning speed limits, 
public road bans and the braking fault identified with the Hawkei four-wheel drive vehicle:  
1. The fault was identified on 11 November 2022. Please confirm the nature of the quality 
assurance inspection, how often such inspections are carried out, and the process for 
identifying faults.  
2. Please provide details of the identified fault, any attendant risks, and the risk mitigation 
and rectification program, including costs and implications for the introduction of further 
vehicles into service.  
3. What are the risks and impacts of the fault, the risk management and rectification program 
for vehicles in service with the Australian Defence Force (ADF)? What costs and further risks 
are associated with removing vehicles from service, or imposition of speed limits, road bans 
and other aspects of the risk management and rectification program?  
Prepared By: 
Cleared By:  
 
Name: Brigadier John-Paul Ouvrier 
Name: Chris Deeble 
Position: Director General Land Vehicle Systems 
Position: Deputy Secretary  
Division: Land Systems Division 
Group/Service: Capability Acquisition and Sustainment 
Phone:  
s22
 
Phone:  
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/  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000718  
Last updated: 24 October 2023 
Protected Mobility Vehicle - Light (Hawkei) 
Key witness: Major General Andrew Bottrell 
4. When will the fault risk management and rectification process be completed? What 
progress has been made? What is the expected total cost of the fault, risk management and 
rectification?  
5. In addition to the braking fault, were any other faults or risks identified with the vehicles 
during the inspection? If yes, what risk mitigation or remedial action has been 
recommended?  
6. Had any similar, or other, faults or risks been identified with the vehicles during prior 
quality assurance inspections? If yes, how have these been resolved?  
7. Has the Department of Defence (Department) been briefed by the ADF in relation to the 
impacts and implications of the identified fault, risk management and rectification process on 
capability and operations? Please provide details. 
 
Answer 
1. These inspections occur during final production work on vehicles to verify that each vehicle 
meets Defence’s contracted performance and quality requirements to ensure the vehicle is 
safe to operate and fit for purpose.  
2. The brake system fault is characterised as the incorrect operation of the Anti-lock Braking 
System. Based on the information provided by Thales, Defence has assessed the potential 
safety risk as High and put in place restrictions on the use of the Hawkei vehicle until Thales 
has identified the root cause of the fault and advised Defence of an approved rectification 
procedure. The costs and timeline for rectification will not be known until Thales has 
confirmed the root cause and fault remediation program.  
3. The fault may affect the performance of the brake system and in some circumstances may 
also affect the directional stability of the vehicle during braking.  
Defence has a comprehensive risk framework for assessing the potential impact of a fault, 
and determining appropriate vehicle operating restrictions to mitigate risks. These 
restrictions will remain in place while Defence and Thales work together to identify the root 
cause, and then implement a remediation plan across the Hawkei fleet.  
The current restrictions on the Hawkei will impact some training activities; however, Defence 
does not envisage a requirement to remove the vehicles from service while the root cause is 
being assessed.  
4. The timeline and cost for any required rectification will not be known until Thales has 
confirmed the root cause of the fault and advised Defence of an approved rectification 
procedure.  
5. No.  
6. Not to the knowledge of Defence. While reliability issues were identified, and remediated, 
during earlier reliability trials, Defence is not aware of any other faults or risks being 
identified during quality assurance inspections.  
7. The Capability Acquisition and Sustainment Group and Army (the Capability Manager) are 
working collaboratively to manage the issue. The key impact identified to date relates to the 
training of ADF personnel.  
 
 
 
Prepared By: 
Cleared By:  
 
Name: Brigadier John-Paul Ouvrier 
Name: Chris Deeble 
Position: Director General Land Vehicle Systems 
Position: Deputy Secretary  
Division: Land Systems Division 
Group/Service: Capability Acquisition and Sustainment 
Phone:  
s22
 
Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart
Land Combat Vehicles
Handling Note: Chief of Army, Lieutenant General Simon Stuart to lead on Land Combat 
Vehicles.
Key Messages

Government’s investment in Land Combat Vehicles is crucial to delivering a relevant 
and credible combat system as part of the Integrated Force. This system ensures the 
best probability of mission success that protects soldiers in an increasingly lethal 
operating environment. 

Important improvements in Land Combat Vehicle capability have already been 
delivered through the Boxer Combat Reconnaissance Vehicle.

The Government accepted the recommendation of the Defence Strategic Review to 
procure the infantry fighting vehicle under LAND 400 Phase 3, but reduced numbers 
from up to 450 (three mechanised battalions) to 129 (one mechanised battalion).

Hanwha Defense Australia have been down-selected as the preferred tenderer to 
provide the Redback Infantry Fighting Vehicle under LAND 400 Phase 3, subject to 
successful negotiations and Government Second Pass consideration.
Talking Points
The importance of Land Combat Vehicles to an effective Integrated Force

Land Combat Vehicles provide unique options to the ADF and are a crucial element of a 
robust, combat-capable Integrated Force.

Australia’s ability to conduct close combat is a crucial element of our overall 
deterrent posture. This capability means Australia can respond decisively to 
threats if required.

Land Combat Vehicles contribute to Indo-Pacific collective security requirements 
by the provision of mobility, protection, networked communications, sensors, 
and firepower. 

Land Combat Vehicles enable land-based interoperability with comparable 
United States capabilities.

Land Combat Vehicles support key tactical tasks such as seizing and holding land, 
sea and air bases, moving personnel through difficult terrain and protecting 
elements such as long-range strike units.

Investing in Land Combat Vehicle modernisation will ensure that Army remains 
competitive at a time when regional military modernisation and technology advances 
erode our advantage.
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
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Phone: s47E(d)
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart
LAND 200 Phase 2 Combat Reconnaissance Vehicle (Boxer)

The Combat Reconnaissance Vehicle (Boxer) is in service domestically and has export 
potential.

The Boxer Combat Reconnaissance Vehicle achieved Initial Operational Capability 
on schedule. 25 Block I vehicles are in service with 2/14 Light Horse Regiment and 
one squadron of personnel are currently trained on the platform.

Boxer Block I successfully completed collective field training, including live fire, at 
Wide Bay Training Area, Queensland in March 2023 and participated in Exercise 
Talisman Sabre 2023.

Block I deployed to Singapore as part of Indo-Pacific Endeavour in 2022, 
demonstrating its ability to be amphibiously deployed within the Indo-Pacific 
region.

The build of the first Australian Boxer has commenced with full rate production 
expected to commence by end 2024.

Rheinmetall Defence Australia is using suppliers from across Australia to assist in the 
design, build, test and support of the vehicles and related training systems. Rheinmetall 
Defence Australia’s Military Vehicle Centre of Excellence facility is located in Redbank, 
Queensland.
Boxer Heavy Weapons Carrier In-Principle Arrangement

The German Ministry of Defence is seeking to rapidly develop a Heavy Weapons Carrier 
capability to support the establishment of a medium force component within the 
German Army. The German Ministry of Defence approached Defence to expedite 
delivery of this capability by leveraging Rheinmetall Defence Australia’s established 
supply chain and production facility in Queensland. 

On 10 July 2023, it was announced that an in-principle arrangement for the supply of 
over 100 Boxer Heavy Weapon Carrier vehicles had been signed by Australia’s 
Ambassador to Germany, Philip Green, and Germany’s State Secretary of the Federal 
Ministry of Defence, Banedikt Zimmer. 

Negotiations between the Commonwealth and the German Ministry of Defence are 
ongoing.
If pressed: How will possible export to Germany affect Phase 2?

Defence’s Boxer Combat Reconnaissance Vehicle contract schedule will be prioritised 
ahead of the Heavy Weapon Carrier vehicles, and there will be no financial 
disadvantage to the Commonwealth.
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
/ 
s47E(d)
Phone: s47E(d)
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart
LAND 400 Phase 3 Infantry Fighting Vehicles (Hanwha Defense Australia Redback - down-
selected preferred tenderer capability)

The Government has accepted the advice of the Defence Strategic Review to reduce 
the number of vehicles being sought under LAND 400 Phase 3 from up to 450 (three 
mechanised battalions) to 129 (one mechanised battalion). 

This will provide one mechanised battalion, including training, repair and attrition 
stock. There will be two variants procured including the ‘infantry role’ and ‘command 
and control/joint fires role’. 

Government has down-selected Hanwha Defense Australia as the preferred tenderer 
for the acquisition and support of 129 Redback Infantry Fighting Vehicle, subject to 
successful negotiations and a final Government decision. Hanwha Defense Australia 
intend to manufacture the Redback in Geelong, Victoria. 

LAND 400 Phase 3 is currently conducting final negotiations with Hanwha Defense 
Australia ahead of Government Second Pass consideration.

The Infantry Fighting Vehicle is a core component of the Land Combat System. It 
provides firepower, protection, and mobility to Integrated ADF ground forces as they 
close within direct fire range of enemy positions.

A wide range of potential adversaries can obtain damaging direct fire weapons 
such as anti-tank rockets and large calibre rifles. No other vehicle in the 
Australian inventory can protect our troops against these threats to the level 
provided by the Infantry Fighting Vehicle.

The Infantry Fighting Vehicle will provide the necessary protection for Australian 
soldiers, contribute to deterrence as the core of Australia’s credible land combat 
force, and give Army the ability to fight and win in a broad range of 
environments, including littoral.
If pressed: Has the Government decided on a successful tenderer for LAND 400 Phase 3?

Hanwha Defense Australia has been down-selected as the preferred tenderer to deliver 
the Redback Infantry Fighting Vehicle, subject to the successful completion of 
negotiations and Government Second Pass consideration.
If pressed: Will Infantry Fighting Vehicles still be built in Australia?

Hanwha Defense Australia intend to build the Redback at the Hanwha Armoured 
Vehicle Centre of Excellence in Geelong, Victoria.  
If pressed: Where will the Infantry Fighting Vehicles be based?

On 28 September 2023 the Government announced structure and posture changes for 
Army. As a result of those changes, the Infantry Fighting Vehicle capability will be based 
in Townsville within the 3rd Armoured Combat Brigade. 
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
/ 
s47E(d)
Phone: s47E(d)
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart
LAND 907 Phase 2 Main Battle Tank Upgrade (M1A2 Systems Enhancement Package v.3 
Abrams)

LAND 907 Phase 2 aims to deliver 75 upgraded Abrams tanks as part of a relevant and 
credible Land Combat System. Initial Operational Capability is scheduled for 2025. 
LAND 8160 Phase 1 Combat Engineer Vehicles

LAND 8160 Phase 1 aims to deliver 52 Combat Engineer Vehicles as part of a relevant 
and credible Land Combat System. Initial Operational Capability is scheduled for 2025. 
Background 
LAND 400 Phase 2 – Combat Reconnaissance Vehicle (Boxer)

The Combat Reconnaissance Vehicle is an armoured 8x8 wheeled vehicle that has been 
selected to be Army’s next Combat Reconnaissance Vehicle as part of a relevant and 
credible Land Combat System. 

Modern Combat Reconnaissance Vehicles will allow the Integrated Force to engage in 
sustained close combat due to their firepower, mobility, protection and networking 
capabilities.

Combat Reconnaissance Vehicles can conduct persistent reconnaissance, degrading 
enemy situational awareness and provide friendly forces with the information and 
direct fire support to maintain combat superiority. 

An interim deployable fleet of 25 vehicles, Block I, have been delivered to Army. The 
full capability of 186 Block II vehicles are currently in production and scheduled for 
delivery by 2027. 

Block I consists of 12 30mm turreted Combat Reconnaissance Vehicles and 13 Multi-
Purpose Vehicles fitted with a remote weapon station. 

The 25 Block I vehicles will not be upgraded or replaced to Block II capability, but will 
operate alongside the Boxer Block II fleet.
LAND 400 Phase 3 – Infantry Fighting Vehicle (preferred vehicle – Hanwha Redback)

The Government has accepted the recommendation of the Defence Strategic Review 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 to the original scope 
of up to 450 Infantry Fighting Vehicles.

The Infantry Fighting Vehicles are the final major component of the modernisation of 
the ADF’s Combined Arms Fighting System.

The in-service Infantry Fighting Vehicle that protects our soldiers today is a 
Vietnam era Armoured Personnel Carrier—the M113. Army cannot effectively 
conduct integrated land combat using this in-service platform.
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
/ 
s47E(d)
Phone: s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart

Government announced on 27 July 2023 that Hanwha Defense Australia had 
been down-selected as the preferred tenderer to deliver the Redback Infantry 
Fighting Vehicle, subject to Government Second Pass consideration. 

A Request for Tender was released in August 2018 to acquire and establish 
the support for up to 450 Infantry Fighting Vehicles.

Hanwha Defense Australia and Rheinmetall Defence Australia were 
shortlisted for participation in the Stage 2 Risk Mitigation Activity on 
16 September 2019.

The Source Evaluation Report was finalised in December 2021.

Government released its response to the Defence Strategic Review on 
24 April 2023.

Updated pricing for 129 Infantry Fighting Vehicles was received by the 
Government on 30 June 2023.

The project remains a live tender and contract negotiations are on-going 
with the down-selected preferred tenderer, Hanwha Defense Australia. It is 
therefore important to ensure probity processes remain in effect until 
Government approval and contract signature.
LAND 907 Phase 2 Main Battle Tank Upgrade 

LAND 907 Phase 2 will acquire the United States Army Abrams Main Battle Tank M1A2 
System Enhancement Package, Version 3. The Main Battle Tank is a unique contributor 
to the ADF’s combat power. It provides a combination of firepower, mobility, 
protection and connectivity to the modern Australian soldier. 

The Abrams Main Battle Tank is unique amongst Armoured Fighting Vehicles; it alone is 
designed and optimised to specifically enter, fight and endure alongside soldiers in 
close combat. 

The Abrams Main Battle Tank is tasked with mounted close combat, primarily through 
the application of precise and overwhelming direct fire, combined with heavy armour 
protection, rapid cross country movement and networked communications. 

This project received Second Pass approval in December 2021 and is managed as a 
combined project with LAND 8160 Phase 1.

As the capability is being acquired under the Foreign Military Sales program, 
opportunities for Australian industry involvement will primarily reside in 
sustainment, including training systems and the future support system. Defence 
will partner with Australian industry to support this capability where appropriate, 
and where value for money can be achieved.
LAND 8160 Phase 1 Combat Engineer Vehicles

The LAND 8160 Phase 1 Combat Engineer Vehicle capability delivers vehicles that 
rapidly open safe lanes through obstacles while under fire. These vehicles operate 
alongside the Abrams Main Battle Tank and Infantry Fighting Vehicle in close combat. 
They have similar mobility and protection to that of a tank. 
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
/ 
s47E(d)
Phone: s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart

The capability is based on two primary vehicles; the Joint Assault Bridge and Assault 
Breacher Vehicle. The Combat Engineer Vehicle is able to bridge gaps (such as rivers or 
ditches), reduce barriers and open safe lanes through a variety of obstacles including 
minefields, improvised explosive devices and rubble.

This project received Second Pass approval in December 2021 and is managed as a 
combined project with LAND 907 Phase 2.
Supporting Information
Questions on Notice 

No QoNs asked.
Freedom of Information (FOI) Requests 

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments 

On 27 July 2023, the Minister for Defence Industry announced that Hanwha Defense 
Australia had been down-selected as the preferred tenderer to deliver the Redback 
Infantry Fighting Vehicle, subject to Government Second Pass consideration. 

On 10 July 2023, the Deputy Prime Minister issued a joint media release on the signing 
of an in-principle agreement for Australia to supply more than 100 Boxer Heavy 
Weapon Carrier vehicles to Germany, built in Brisbane.
Relevant Media Reporting 

On 27 July 2023, the ABC published an article by journalist Andrew Greene regarding 
the announcement of Hanwha as the preferred tenderer. It noted the decision will 
strengthen security ties with a key Indo-Pacific nation, but will be received poorly in 
Germany. 
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
/ 
s47E(d)
Phone: s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000716
Last updated: 10 October 2023
Land Combat Vehicles
Key witness: Lieutenant General Simon Stuart
Division:
Land Capability Division
PDR No: 
SB23-000716
Prepared by:
Cleared by Division Head: 
Brigadier Colin Bassett
Major General Richard Vagg
Director General Platforms
Head Land Capability
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 1 September 2023
Date:  1 September 2023
Consultation:  
Capability Acquisition and Sustainment 
Date: 24 August 2023
Group
Mob:  
s22
Ph: 
s47E(d)
Sarah Myers
Assistant Secretary 
 
Armoured Fighting Vehicles
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 6 September 2023  
Lieutenant General Simon Stuart
Chief of Army
Army
Prepared By:
Cleared By: 
Name: Brigadier Colin Bassett
Name: Lieutenant General Simon Stuart
Position: Director General Platforms
Position: Chief of Army
Division: Land Capability Division
Group/Service: Army
Phone:  
s22
/ 
s47E(d)
Phone: s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
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. 
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.

The Integrated Force posture and structure of Army’s battlefield aviation capability is 
informed by operational effectiveness, supportability and sustainment 
considerations.

The Government accepted the recommendation outlined in the Defence Strategic 
Review that Army should posture the majority of battlefield aviation capability in 
Townsville, including basing the 1st Aviation Regiment in Townsville.

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).

Army Aviation is the largest employer within the Australian helicopter industry in 
scale and value.

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.
Talking Points

The Battlefield Aviation Program includes all land manoeuvre helicopters, special 
operations helicopter capabilities, tactical Uncrewed Aerial Systems and supporting 
supply and maintenance systems.

The Battlefield Aviation Program is applying a programmatic approach to: 

improve aviation command and control;

replace problematic aircrafts with proven and mature platforms;

establish robust and resilient supply and support systems;

optimise the fleet disposition to create sufficient mass and density; and 
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King

increase the safety, efficiency and effectiveness of the aviation system.

Projects LAND4507 Multi-Role Helicopter (MRH90) Rapid Replacement and LAND4503 
Tiger Armed Reconnaissance Helicopter Replacement provide an opportunity for 
Defence to remediate platform and disposition challenges. 

In early 2023, the Government announced its decision to replace the MRH90 with the 
UH-60M Black Hawk Utility Helicopter, with Defence receiving delivery of the first three 
UH-60M Black Hawk aircrafts in August 2023.

The Armed Reconnaissance Helicopter capability is expected to meet Defence 
requirements until its withdrawal from service by 2028, with project LAND4503 on 
track to deliver the first AH-64E Apache Attack Helicopters in 2025.

The CH-47F Chinook exemplifies a mature, proven, reliable and affordable helicopter 
and associated support system. 

Defence’s decision to expand the original CH-47F Chinook fleet from 10 to 14 was seen 
as a pragmatic, cost effective and sustainable response to increasing demands being 
placed on the battlefield lift capability.

The additional CH-47F Chinook aircrafts are being modified to meet unique aspects of 
Australia’s operating context, including equipping them for amphibious operations.

Army is leasing fixed and rotary wing aircrafts to mitigate the underperformance of the 
MRH90 and Armed Reconnaissance Helicopter, and deliver domestic tasking support.

Army is investing heavily in Uncrewed Aerial Systems to provide enhanced situational 
awareness for better decision making and reduce the exposure of Australian soldiers to 
danger. 

Defence is committed to building a sustainable, affordable and reliable industrial base 
in Australia to support Army’s Aviation capabilities. 

The highly skilled and experienced Australian helicopter industry workforce will 
continue to be in high demand by Army Aviation. 
If asked about the MRH90 incident on 22 March 2023 in the vicinity of Jervis Bay, New South 
Wales, the MRH90 incident on 28 July 2023 in vicinity of Lindeman Island, Queensland, or 
modifications to the MRH90 platform:

Refer to SB23-000711, PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - MRH90 Taipan Incident.
If pressed: What opportunities are there for Industry?

There are opportunities for Australian industry participation in the AH-64E Apache and 
UH-60M Black Hawk projects through the provision of logistic support, warehousing 
services, training development, engineering services and maintenance, repair and 
overhaul.

Army’s Uncrewed Aerial Systems investments are providing opportunities for Australian 
industry. 
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King

For example, the selection of Australian developed and prototyped CM234 
Spitfire Camera Gimbal from Melbourne-based Ascent Vision Technologies as 
part of the LAND129 Phase 3 Tactical Uncrewed Aerial Systems project. 
If pressed: Basing and operating locations for Army Aviation Capabilities?

Basing the UH-60M Black Hawk fleet out of Oakey, Queensland and Holsworthy, New 
South Wales will maximise the efficiency and readiness of Army’s aviation capability.

Basing UH-60M Black Hawks in these locations will strengthen industry support 
and leverage the existing arrangements for Navy’s Seahawk helicopters. 

Placing UH-60M Black Hawks in close proximity to Navy’s Landing Helicopter Dock 
vessels in Sydney will support rapid deployments. 

Battlefield aviation capability will be supported by two industry nodes centred on 
Townsville (AH-64E Apache and CH47 Chinook) and Sydney/Nowra/Southeast 
Queensland (UH-60M Black Hawk). This was the recommendation of several reviews 
into Defence’s battlefield aviation capability and is strongly supported by the Defence 
Strategic Review. 

On 3 July 2023, as part of LAND 4503 Armed Reconnaissance Helicopter Replacement 
Project, the Government announced its decision to relocate the 1st Aviation Regiment 
from Darwin to Townsville, coinciding with the introduction into service of the AH-64E 
Apache. 

Locating 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 Aviation to generate, sustain and deploy a stronger and more resilient 
helicopter capability for Defence. 
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 Northern Territory 
throughout the next decade.  

The Government has announced a series of initiatives to strengthen Australia’s 
Northern Defence bases. This will generate significant investment in the Northern 
Territory. 

The acceleration of Army’s Littoral Manoeuvre capability with the restructure and re-
posture of Army is expected to result in an increase in Army’s presence in Darwin long-
term.
If pressed: Why is the Government is replacing the MRH90 with UH-60M Black Hawks?

MRH90 has been managed as a Project of Concern since 2011. MRH90 does not deliver 
the capability and capacity required to meet the ADF’s needs.
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King

The UH-60M Black Hawk is the best option available to meet Defence’s Utility 
Helicopter capability requirements. It is combat proven in comparable roles worldwide, 
and represents the largest single battlefield utility helicopter variant in the world. 
If asked: What is the divestment or disposal plan for the Australian MRH90 fleet?

On 29 September 2023, Government announced that the MRH90 fleet would not 
return to flying operations before its planned withdrawal in December 2024.

Defence is reviewing the end of service strategy for the MRH90 platform. Final disposal 
outcomes are yet to be determined. 
If pressed: Is Army procuring a UH-60M Black Hawk with floatation capability?

Army is not procuring a UH-60M Black Hawk with flotation capability. 

Army treats the risk of overwater flight with mitigation methods, including carrying life 
rafts, individual flotation life support ensembles for crew and helicopter underwater 
escape training for crew and passengers. 

Army will continuously monitor new product developments to assure the level of safety 
in-service, in collaboration with other UH-60M Black Hawk users.  
If pressed: If the Armed Reconnaissance Helicopter Tiger is performing satisfactorily for 
Army’s needs, why does it need to be replaced?

Army needs a capable and credible crewed armed reconnaissance capability with the 
capacity to become the hub of a crewed-uncrewed system. A supported pathway to 
transition to Next Generation rotorcrafts is also required.

AH-64E Apache provides the networking capability to ‘orchestrate’ the battle and will 
align Army with other nations’ crewed-uncrewed teaming capabilities, providing the 
additional intelligence, surveillance, reconnaissance and networking capabilities 
required.
If pressed: Why does Army not 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 provides the critical step change in capability enabling teaming of 
crewed-uncrewed aerial systems. 
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. No other Australian Army helicopter is designed for marine environment 
use, yet all operate from ships without issue. Maintenance programs are designed to 
accommodate operating from ships.
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
If pressed: What is the status of LAND129 Phase 4B Small Uncrewed Aerial Systems?

LAND129 Phase 4B has completed its tender evaluation of suitable Small Uncrewed 
Aerial Systems to replace the in-service Wasp AE.

LAND129 Phase 4B remains subject to Government consideration and decision. 
Government approval for LAND129 Phase 4B is scheduled for late 2023.
Supporting Information
Questions on Notice 
Senate: 9 August 2023
 QoN 2332, Senator Jacqui Lambie (Jacqui Lambie Network, TAS) asked the Minister 
representing the Minister for Defence, with respect to the crash of an MRH90 into 
Jervis Bay and the MRH90 incident during Talisman Sabre, what impact would a 
permanent grounding of the MRH90 have on the ADF’s planned response to the 
upcoming bushfire season.
Senate: 20 April 2023
 QoN 2004, Senator David Shoebridge (Greens, New South Wales) asked the Minister 
representing the Minister for Defence questions relating to the MRH90 Taipan 
helicopter fleet and the investigation into the recent ditching incident at Jervis Bay, 
New South Wales.
Freedom of Information (FOI) Requests
 On 4 August 2023, a media outlet sought access under Freedom of Information to 
documentation relating to the MRH90 incident in March 2023. A
A decision is pending.
 On 8 August 2023, an individual sought access under Freedom of Information to 
documentation relating to the MRH90 incident in March 2023. A
A decision is pending.
 On 9 August 2023, an individual sought access under Freedom of Information to 
documentation in relation incident and safety reports for the MRH90. A
A decision is 
pending.
 On 9 August 2023, a media outlet sought access under Freedom of Information to 
documentation relating to the MRH90 incident in March 2023. A
A decision is pending.
 On 10 August 2023, an individual sought access under Freedom of Information to 
documentation in relation incident and safety reports for the MRH90. A
A decision is 
pending.
 On 10 August 2023, an individual sought access under Freedom of Information to 
documentation in relation to MRH90 engine failure in 2010. A
A decision is pending.
 On 10 August 2023, an individual sought access under Freedom of Information to 
documentation in relation to MRH90 tail rotor issue in 2019. A
A decision is pending.
 On 24 August 2023, a media outlet sought access under Freedom of Information to 
documentation relating to Airworthiness directives for the MRH90 fleet. A
A decision is 
pending.
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
 On 4 September 2023, Sam Brennan on behalf of Senator David Shoebridge, sought 
access under Freedom of Information to documentation relating to MRH90 flight test 
reports and standardisation manuals. A
A decision is pending.
 On 21 September 2023, a media outlet sought access under Freedom of Information 
for transcripts of the Voice and Flight Data Recorder from the MRH90 that crashed on 
28 July 2023. A
A decision is pending.
Recent Ministerial Comments 
 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:

The incident involving an MRH90 impacting waters near Lindeman Island, 
Queensland on 28 July 2023 while participating in Exercise Talisman Sabre 
2023;

The incident involving an MRH90 at Jervis Bay on 22 March 2023; and

The acquisition of the UH-60M Black Hawk Utility Helicopter to replace the 
MRH90͘
 On 8 August 2023, The Daily Telegraph published an article in which journalist, Greg 
Stolz reported on Senator David Shoebridge’s push for the release of safety documents 
relating to the MRH90. 
 On 18 April 2023, ABC News published an article in which Defence correspondent 
Andrew Greene reported that several military figures had told the ABC a simple 
software upgrade may have prevented the emergency ditching of a MRH90 in Jervis 
Bay.
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Division:
Army
PDR No: 
SB23-000719
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: 6 September 2023
Date: 4 September 2023  
Consultation:  Rotary, Aerospace and 
Surveillance Systems Division
Date: 24 August 2023  
Major General Jeremy King
Ph: s47E(d)
Head Joint Aviation Systems Division
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Lieutenant General Simon Stuart
Date: 6 September 2023  
Chief of Army
Questions on notice referred to within the brief:
Senate Question Time: 9 August 2023
Senator Jacqui Lambie
Question Number: 2332
Date question was tabled: 9 August 2023
Question
Senator Jacqui Lambie asked the Minister representing the Minister for Defence, upon 
notice, on 9 August 2023:
1. With respect to the crash of an MRH-90 into Jervis Bay:
a. on what date did Defence receive an interim report into the accident;
b. what where the interim findings;
c. what information was utilised to remove the grounding order for the aircraft; and
d. has a final report into the accident been received by Defence; if so, on what date; 
and what were the final findings.
2. In respect of the tragic MRH-90 accident during Talisman Sabre, what impact would a 
permanent grounding of the MRH-90 have on the ADF’s planned response to the 
upcoming bushfire season.
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
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000719
Last updated: 9 October 2023
      Battlefield Aviation Program
Key witnesses: Lieutenant General Simon Stuart; Major General Jeremy King
Senate: 20 April 2023
Senator David Shoebridge
Question Number: 2004
Date question was tabled: 1 June 2023
Question
1. Has Defence installed a software upgrade on helicopters in the MRH90 Taipan fleet, and 
if yes: 
a. when was the software upgrade made available to Defence; 
b. when was this installed; 
c. how many helicopters had the software upgrade installed; 
d. what did the software upgrade do; and 
e. what was the cost of installing the software upgrade, and was this cost on a per-
helicopter basis. 
2. If Defence did not install a software upgrade on any of the MRH fleet, why not. 
3. Did Defence receive warnings that the software upgrade was necessary to prevent 
possible engine failures in the MRH90; and if yes, who or what entity issued these 
warnings and when. 
4. If the software upgrade was not installed across the full fleet of helicopters, what were 
the reasons for not installing across the entire fleet. 
5. Were all pilots and mechanics operating MRH90s advised that the helicopter's turboshaft 
engines are not meant to be switched on and off repeatedly during an operation and are 
instead supposed to be powered up at the start, then shut down at the end. 
6. When will the investigation into the March 2023 emergency ditching of an MRH-90 in 
Jervis Bay be concluded. 
7. Will the findings of the investigation be made public, and if not, why not. 
8. Has the investigation made any findings in relation to the software upgrade and whether 
its installation may have prevented the emergency ditching of an MRH-90 in Jervis Bay in 
March 2023. 
9. Was the software upgrade installed on the Taipan helicopter involved in the emergency 
ditching in Jervis Bay in March 2023, prior to that incident. 
10. What were the "risk mitigations", as stated by Defence, which were put in place to allow 
the Taipan helicopters to return to normal flying operations on April 6 following a short 
grounding. 
11. Has the software upgrade now been installed on all of Australia's MRH90 Taipan 
helicopters; and if not, why not. 
12. Will Defence be releasing the 2016 Houston review into the Tiger and Taipan fleets; and if 
not, why not.
Answer
1. Defence is conducting an internal investigation into the incident and will respond to these 
questions when the investigation is complete. 
Prepared By:
Cleared By: 
Name: Brigadier David Hafner
Name: Lieutenant General Simon Stuart
Position: Deputy Commander Aviation Command
Position: Chief of Army
Division: Headquarters Aviation Command
Group/Service: Army
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 
Ghost Bat 
Handling Note:  
˜
Air Marshal Robert Chipman, Chief of Air Force, to lead on key messages and capability. 
˜
Air Vice-Marshal Graham Edwards, Head of Aerospace Systems Division, to lead 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. This capability has been 
classified as a collaborative combat aircraft. 
 The Collaborative Combat Aircraft capability comprises the aircraft, sensors and 
payloads, datalinks and software to drive intelligent behaviours for specific combat 
roles. These systems are designed to operate across the Integrated Force and coalition 
partners. 
 Government has approved more than $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 seven Block 1 aircraft and one ground control 
station, with another Block 1 aircraft in production. 
 The payloads integrated into MQ-28A are Infrared Search and Track and Radar sensors. 
 The project continues to leverage a digital twin – a virtual representation that mimics 
the physical system.  
 The digital twin enables the program to run 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 32.1 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 data fusion was 
successfully tested on its maiden test flight after 7,000 hours of digital twin testing. 
This capability would otherwise have taken up to six months of live testing to validate.  
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 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 
 Air Force intends to continue assessment of the MQ-28A Ghost Bat through systematic 
testing in both live and digital environments.  
 Developmental programs like the MQ-28A Ghost Bat build a stronger sovereign 
Defence industry and increase Australia’s resilience. More than 200 small and medium 
Australian companies have contributed to the MQ-28A Ghost Bat program. 
 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, which enables sharing of classified information and 
technology to collaborate on Collaborative Combat Aircraft platforms, payloads, 
sensors and other system infrastructure (including teaming behaviours and datalinks).
 
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. 
What has Defence invested in the MQ-28A Ghost Bat program? 

Government has approved more than $600 million to support the MQ-28A Ghost Bat 
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. 
If pressed: How much does a MQ-28A Ghost Bat cost? 

Boeing Defence Australia is aiming for the cost of each MQ-28A to be one-tenth of the 
cost of a fifth generation fighter aircraft. Defence will continue to monitor costs as the 
project matures to inform future decisions. 

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 aircraft? 

Boeing Defence Australia and Air Force are executing a flight test program to expand 
the aircraft flight envelope (operating altitude and airspeed). 
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 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 

Digital testing (utilising representative mission systems) is being conducted with 
Air Force and with Defence Science and Technology Group’s involvement. 

Specific details of the test program, teaming and autonomous capabilities, and mission 
payload systems testing are commercial-in-confidence and sensitive. 
How many MQ-28A Ghost Bats will you order?  

There have been no decisions on future production, force mix, or follow-on 
development. 
Will the MQ-28A Ghost Bat build/construction/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 program has created over 600 jobs (predominately high technology) and expanded 
opportunities across the supply chain.  

The application of advanced software programming in avionics and autonomy for both 
the MQ-28A Ghost Bat and in manufacturing robotics is a major opportunity for 
Australian industry to grow a significant sovereign capability. 
Is the MQ-28A Ghost Bat ethical? 

The MQ-28A Ghost Bat 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 levels of artificial intelligence while ensuring new systems 
meet ethical requirements. 

All MQ-28A Ghost Bat operations will comply with the same Law of Armed Conflict, 
regulations and standards that apply to crewed platforms. 
Is the MQ-28A Ghost Bat safe? 

As it does for crewed platforms, Defence will take a risk-based approach to issuing 
operating permits and airworthiness certification, including ensuring appropriate 
controls are in place should the aircraft face inflight emergencies. 
What was the incident that occurred during testing in late 2021? 
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 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 

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. 
What comes next for the MQ-28A Ghost Bat? 

Defence continues to analyse capability maturity, and is developing concepts of 
operation with the crewed platforms the MQ-28A Ghost Bat is designed to team with. 
This is being conducted in collaboration with the United States.  
Background  

Under DEF6014, Defence contracted Boeing Defence Australia to develop the  
MQ-28A Ghost Bat capability.  

Defence invested $40 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 to procure additional  
MQ-28A aircraft under DEF6014 Phase 2.  
Supporting Information 
Questions on Notice  
Senate: 28 September 2022 
˜
QoN 837, MQ-28A Ghost Bat, Senator the Hon Simon Birmingham (Liberal,  
South Australia) asked to be updated on the MQ-28A Ghost Bat program, including 
project risks and opportunities to Industry, and requested copies of any briefings and 
reports provided to the Government post 22 May 2022. 
Freedom of Information (FOI) Requests  
˜
No FOIs requested. 
Recent Ministerial Comments  
˜
The Deputy Prime Minister has made general reference to ‘drones’ during public 
speeches and media statements, without specific reference to the MQ-28A Ghost Bat, 
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 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 
Defence’s co-development program with Boeing Defence Australia or collaboration 
with military partners.  
Relevant Media Reporting   
˜
While not reported on, Defence has released information to the media about the 
landing incident that occurred in late 2021. 
˜
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 autonomous air vehicle, 
instructing them 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 turning 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:  
SB23-000960 
Prepared by: 
Cleared by Division Head: (Band 2/2* level) 
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: 18 August 2023 
Date: 19 October 2023   
Consultation:  
 
Capability Acquisition and Sustainment 
Date: 30 August 2023   
Group 
Mob:  
s22
 
Ph: 
s47E(d)
 
Air Vice-Marshal Graham Edwards 
Head of Aerospace Systems Division  
 
Cleared by CFO / DPG / DSR: 
Date: 28 August 2023 
Major General Matt Pearse 
Head Plans and Capability Integration 
Defence Strategic Review Implementation Task 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 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 19 October 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 
Position: Director General Air Combat Capability 
Position: Chief of Air Force 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000960  
Last updated: 29 September 2023 
    PARLIAMENTARY: SSCFADT - Supplementary Budget Estimates 
October 2023 - Ghost Bat  
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards 
Questions on notice referred to within the brief: 
Senate 
Senator Simon Birmingham 
Question Number: 837 
Date question was tabled: 8 November 2022 
 
Question 
Senator BIRMINGHAM: What is the status of the production, ADF acquisition and 
implementation of the MQ-28 Ghost Bat program (Program)? 
Senator BIRMINGHAM: What issues/risks have been identified with the Program during the 
current year? 
Senator BIRMINGHAM: What opportunities for Australian defence industry have been 
identified to further commercialise and apply technology, developed by the Program, or the 
MQ-28 itself, and what is the status of these opportunities? 
Senator BIRMINGHAM: What briefings and reports have been provided to the Minister, and 
the Government, relating to these matters, since 22 May 2022, and please provide them. 
 
Answer 
Production of MQ-28A prototypes for testing has continued, as has development of the 
production system, tooling, and robotics at the Boeing site. Under DEF6014 Phase 2, Defence 
has committed to procure up to ten MQ-28A air vehicles and associated support systems. 
The DEF6014 Phase 2 program remains on track to deliver the contracted MQ-28A capability. 
The MQ-28 program will deliver substantial benefits to Australian industry with over 70% of 
the program value being Australian Industry Content.  
Defence routinely briefs the Government on this matter. The release of information 
regarding the MQ-28A Ghost Bat into the public domain may adversely affect Defence and 
commercial sensitivities.  
 
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 
Division: Air Combat Capability 
Group/Service: Air Force 
Phone:  
s22
 
Phone: s22
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Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
Space Capability
Handling Note: Commander Defence Space Command, Air Vice-Marshal Catherine Roberts 
to lead.  
Key Messages

The Government agreed to the Defence Strategic Review’s recommendation for the 
transition of Defence Space Command to the Joint Capabilities Group to advance space 
capability delivery, and to develop a space workforce, including career pathways. 

Defence is developing options to optimise space capability for Government’s 
consideration as part of the 2024 Budget. 

Defence relies heavily on access to space systems and services for its capabilities and 
operations, including communications; command and control; intelligence, surveillance 
and reconnaissance; and position, navigation and timing.

Space is increasingly contested, degraded and operationally limited. Defence must be 
positioned to shape, deter and respond to threats to, from, and through space.

Australia’s unique geographical position allows Defence to contribute significantly to 
collective space domain awareness, shared with our partner forces. 

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.
Talking Points
 Space is critical to the effective employment of military power, and central to 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. 
 The general public also depends on access to space-based systems for everyday 
activities including telecommunications, transport, financial services, traffic 
management, emergency response, and environmental monitoring. 
 If Australia were to lose access to space-based systems the results would be 
catastrophic for the general public and for Defence’s operational effectiveness and 
capability.
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
Defence Strategic Review
 As part of the Defence Strategic Review, Government agreed to three space-related 
recommendations: 

Space Command should be moved into Joint Capabilities Group from 1 July 2023.

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.

A centralised space domain capability development and management function 
should be established.

Government agreed in-principle to this recommendation. 

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, will transfer 
to the Joint Capabilities Division in Defence from 1 November 2023.

A method should be established for building and sustaining a trained Defence 
space workforce, including a defined career path for space professionals. 

Government agreed in-principle to this recommendation. 

Defence has developed the Defence Space Strategic Workforce Plan 
2022-35 that defines and identifies the future workforce needed to assure 
Australia’s access to space, and highlights areas of workforce risk.

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.
 Defence is coordinating closely with partner forces to ensure alignment of approaches 
to shape, deter and respond to threats to, from and through the space domain.
If pressed: Space Capability Priorities
 Defence is continuing to examine options to achieve Government’s direction to 
develop space capabilities, for consideration as part of the 2024 Budget process.
 As part of this process, Defence is reviewing options that would meet Government’s 
direction to balance domestic production and Australian industry content with the 
speed of acquiring capabilities. 
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
If pressed: National Space Mission for Earth Observation (NSMEO)
 The Chief of Defence Intelligence is the Defence lead on National Space Mission for 
Earth Observation (NSMEO).
 Defence supported the National Space Mission for Earth Observation in partnership 
with the Australian Space Agency before Government terminated the program on 
29 March 2023.
 Defence will consider further space-based Australian industry content investments 
when needed in accordance with Defence Strategic Review objectives.
If pressed: Joint Project 9102 – Australian Defence Satellite Communications System
 Satellite communications are fundamental to Defence operations. There are 89 current 
or planned Defence Integrated Investment Program projects, worth $246 billion, reliant 
on satellite communications. 
 Joint Project 9102 is a multi-phase program initially delivering regional sovereign 
satellite capability under Phase 1, and assured global satellite communications under 
Phase 2 and Phase 3. 

Joint Project 9102 Phase 1 will deliver Australia’s first sovereign-controlled 
satellite communications system over the Indian and Pacific Ocean Regions.
o
See brief 17, JP9102 Phase 1 – SATCOM System.

Joint Project 9102 Phases 2 and 3 are in the early strategy and concept phase and 
will cover elements within the program assuring access to global satellite 
communication capabilities. Phase 2 is due to commence in practice in 2027, and 
Phase 3 is due to commence in 2036. 

Joint Project 9102 Phase 2A is a sub-project brought forward to maintain 
Australia’s critical space infrastructure.
If pressed: United States’ partnership
 Enhanced Space Cooperation was introduced as a new Force Posture Initiative at this 
year’s Australia-United States Ministerial Consultations, to enable closer cooperation in 
the critical operational space domain. 
 Australia and the United States intend to increase space integration and cooperation in 
existing operations and exercises.  

On 20 April 2023 the Enhanced Space Cooperation Memorandum of 
Understanding was signed between Australia and the United States.
 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 and Germany. 
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
 The Combined Space Operations initiative seeks to ensure that space is safe, secure 
and accessible to all, and to begin to establish international norms for responsible 
behaviours in space.
If pressed: Is Australia hosting a Deep Space Advanced Radar Capability site?
 The Deep Space Advanced Radar Capability is a United States Space Force-proposed 
capability designed to provide Space Domain Awareness of objects in deep space. To 
achieve global coverage, the United States has proposed sites in Australia, the 
United States and the United Kingdom. The Government has authorised Defence to 
analyse the risk, policy, cost and capability implications of hosting a site in Australia.
Background 
 Defence Space Command’s mission is to prepare space power to secure Australia's 
interests in peace and war. The Command 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 

force assignment of space specialists to the Chief of Joint Operations and the 
integrated force.
 Since establishment in January 2022, Defence Space Command has achieved:

the development and release of the Defence Space Strategy;

an in-depth review of space capability projects;

the development of the Defence Space Strategic Workforce Plan; 

the establishment of the Theatre Joint Force Space Component within 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.
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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OFFICIAL
Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
Work with Allies and Partners Forces 
 Defence remains engaged with international partners, including through the Combined 
Space Operations initiative with France and Germany. The Combined Space Operations 
initiative ensures space remains safe, secure and accessible, and establishes 
international norms for responsible behaviours in space.
 Australia is in a unique geographical position to contribute significantly to collective 
space domain awareness with partner forces. 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.
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 domain. 
Actions can range from non-kinetic effects (such as electronic attack for jamming 
communications) to kinetic weapons (such as Direct Ascent Anti-Satellite missiles). 
 Both China and Russia have demonstrated the advanced space capabilities that could 
be used to attack other nations’ satellite capabilities. There has been no demonstrated 
intent to disable Australian space capabilities.
 Demonstrating dual-use capability with potential military applications, 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. 
Supporting Information
Questions on Notice

No QoNs asked.
Freedom of Information (FOI) Requests 

In 2022, an individual requested access to the, ‘latest copies of the projects of concern 
and projects of interest reports.’ O
On 23 November 2022, a redacted version of the 
August 2022 Project and Product of Concern and Interest Dashboard Report, which lists 
Joint Project 2008 Phase 5B2 as a Project of Interest, was released.
Recent Ministerial Comments 

No recent comments.
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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OFFICIAL
Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
Relevant Media Reporting 

On 24 August 2023, the Australian Strategic Policy Institute published a report in which 
analyst Malcolm Davis commented on the potential for space-related sites and industry 
hubs in northern Australia, recent developments of Australia’s space industry, the 
impact of the Government’s termination of the National Space Mission for Earth 
Observation program, and the argument for establishing sovereign launch sites. 

On 3 August 2023, ABC TV’s 7.30 program featured a report on the Government’s 
termination of the National Space Mission for Earth Observation program. The program 
featured commentary from Bec Shrimpton (Australian Strategic Policy Institute), 
Adam Gilmour (Gilmour Space Technologies) and Professor Adam Duffy (Swinburne 
University) arguing for government funding for Australian space industry; and 
Matt Pearson (Fleet) arguing instead for commercial investment.

On 1 August 2023, the Australian Strategic Policy Institute published an article in which 
analyst, Malcom Davis commented on Australia’s collaboration with the United States 
coming out of the Australia-United States Ministerial meeting. 
Group:
Joint Capabilities Group
PDR No: 
SB23-000967
Prepared by:
Cleared by Division Head:
Ms Jacinta Carroll
Air Vice-Marshal Catherine Roberts
Assistant Secretary Space Strategic Plans
Commander Defence Space Command 
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 21 September 2023
Date: 9 October 2023  
Consultation: 
Capability & Acquisition Sustainment Group
Date:  25 September 2023
Mr Michael Hunt
Mob: s22
       Ph: s47E(d)
Acting Assistant Secretary Space Systems
Consultation: 
Date:  28 September 2023
Strategy Policy & Industry
Mob: s22
       Ph: s47E(d)
Mr Andrew Hodgkinson
Assistant Secretary Strategic Capabilities
Cleared by DSR:
Date:  2 October 2023
Major General Matthew Pearse
Head Plans and Capability Integration
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates: October 2023
                PDR No: SB23-000967
Last updated: 9 October 2023                                                                           
                           Space Capability
Key witness: Air Vice-Marshal Catherine Roberts
Cleared by Group Head:
Date: 9 October 2023  
Lieutenant General John Frewen 
Chief of Joint Capabilities
Ph: s22
Prepared By:
Cleared By: 
Name: Ms Jacinta Carroll
Name: Lieutenant General John Frewen
Position: Assistant Secretary Space Strategic Plans
Position: Chief of Joint Capabilities
Division: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Estimates: October 2023
PDR No: SB23-000690
Last updated: 04 October 2023 
        Joint Project 9102 Phase 1 
Key witness: Air Vice-Marshal Catherine Roberts; Air Vice-Marshal David Scheul
Joint Project 9102 Australian Defence Satellite Communications System Phase 1
Handling Note:  

Commander Defence Space Command, Air Vice-Marshal Catherine Roberts to lead on 
Space Domain matters.

Head Air Defence and Space Systems Division, Air Vice-Marshal David Scheul to lead on 
project status, including contracts, tenders, and industry engagement activities such as 
Offer Definition and Improvement Activities. 
Key Messages

Joint Project 9102 Australian Defence Satellite Communications System Phase 1 will 
assure satellite communication to Defence and whole-of-government in a contested, 
degraded and operationally-limited space environment.

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 national and partner requirements to enable the integrated force. 

Joint Project 9102 Phase 1 delivers a geostationary, sovereign-owned satellite 
communication capability, providing coverage over the Indo-Pacific region, including 
the primary area of military interest identified by the Defence Strategic Report and 
agreed to by Government.

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, which commenced 
2 May 2023.
Talking Points

Lockheed Martin Australia is the preferred tenderer for Joint Project 9102 Phase 1 to 
deliver a new Australian Defence Satellite Communication 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. 
Prepared By:
Cleared By: 
Name: Air Commodore Peter Thompson
Name: Lieutenant General John Frewen
Branch: Director-General Space Capability 
Position: Chief of Joint Capabilities
Command: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Estimates: October 2023
PDR No: SB23-000690
Last updated: 04 October 2023 
        Joint Project 9102 Phase 1 
Key witness: Air Vice-Marshal Catherine Roberts; Air Vice-Marshal David Scheul

To mitigate satellite communication capacity risks, Defence is extending existing 
agreements and remediating current capabilities. Commercial services will continue to 
complement military systems.

Defence is seeking to expedite Joint Project 9102 Phase 1 within a prudent risk 
envelope, acknowledging the need for accelerated capability acquisition as directed by 
Government in response to the Defence Strategic Review.
If pressed: What will Joint Project 9102 Phase 1 deliver?

Joint Project 9102 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 Communication Management System, including Satellite Communications 
Operations Centres.

Defence will enable the integrated force to project military capability 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? 

Joint Project 9102 Phase 1 is planned to launch large communications satellites – 
weighing thousands of kilograms – 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 s47E(d) , and Initial Operational Capability in s47E(d). 
Prepared By:
Cleared By: 
Name: Air Commodore Peter Thompson
Name: Lieutenant General John Frewen
Branch: Director-General Space Capability 
Position: Chief of Joint Capabilities
Command: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Estimates: October 2023
PDR No: SB23-000690
Last updated: 04 October 2023 
        Joint Project 9102 Phase 1 
Key witness: Air Vice-Marshal Catherine Roberts; Air Vice-Marshal David Scheul

The decision to progress the high-risk schedule was driven by the increasing threat 
profile, the increasing ADF satellite communication capacity requirement, and the 
decline of current satellite communication capabilities. 

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 Joint Project 9102 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.  

The planned Initial Operational Capability and Final Operational Capability milestones 
approved at First Pass are no longer achievable.

Second pass consideration is scheduled for s47E(d)
. Initial Operational 
Capability is now forecasted in s47E(d) and Final Operational Capability in s47E(d). 
If pressed: How has the project progressed since the Request for Tender release?
x
In November 2022 Defence completed the tender evaluation and finalised the 
Initial Source Evaluation Report. 
x
On 3 April 2023 Defence announced Lockheed Martin Australia as the preferred 
tenderer.
x
On 1 May 2023 Defence debriefed the declined tenderers (Airbus Australia Pacific, 
Optus Satellite, and Northrup Grumman Australia). 
x
On 9 June 2023 Defence notified Boeing Defence Australia their tender was not 
formally declined at this time; however, they may stand down their bid team. 
s47E(d)
x
In 
 Defence is expected to receive Second Pass approval with support 
from Offer Definition and Improvement Activities.
x
Additionally, Defence is working with Lockheed Martin Australia to identify options to 
mitigate project risk and expedite capability delivery.
If pressed: Why is the Joint Project 9102 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. 
Prepared By:
Cleared By: 
Name: Air Commodore Peter Thompson
Name: Lieutenant General John Frewen
Branch: Director-General Space Capability 
Position: Chief of Joint Capabilities
Command: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Estimates: October 2023
PDR No: SB23-000690
Last updated: 04 October 2023 
        Joint Project 9102 Phase 1 
Key witness: Air Vice-Marshal Catherine Roberts; Air Vice-Marshal David Scheul

Joint Project 9102 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.

Remediation actions are ongoing. 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. 

Joint Project 9102 Phase 1 is a Project of Interest due to its strategic importance, 
complexity, identified risks and high profile.

The commercial strategy for Joint Project 9102 Phase 1 was to conduct a worldwide 
open Request for Tender to select a single prime contractor for acquiring and 
sustaining Joint Project 9102 Phase 1 scope based on a whole-of-life value for money 
proposition. The Request for Tender comprised an overarching Conditions of Tender, 
and a draft Acquisition and Support Contract, tailored from Australian Standard for 
Defence Contracting Strategic Materiel and Support templates. 

On 22 April 2021 the worldwide Request for Tender was released with a closing date of 
25 October 2021. COVID-19 impacts necessitated an extension to 10 January 2022.

On 3 April 2023 Lockheed Martin Australia was announced as the preferred tenderer 
for Joint Project 9102 Phase 1. Offer Definition and Improvement Activities commenced 
on the 2 May 2023 and is on track to support a revised Second Pass in s47E(d)
. 
Prepared By:
Cleared By: 
Name: Air Commodore Peter Thompson
Name: Lieutenant General John Frewen
Branch: Director-General Space Capability 
Position: Chief of Joint Capabilities
Command: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Estimates: October 2023
PDR No: SB23-000690
Last updated: 04 October 2023 
        Joint Project 9102 Phase 1 
Key witness: Air Vice-Marshal Catherine Roberts; Air Vice-Marshal David Scheul
Supporting Information
Questions on Notice 

No QoNs asked.
Freedom of Information (FOI) Requests 

No FOI Requests.
Recent Ministerial 

No recent comments.
Relevant Media Reporting 

On 1 September 2023 the Asia Pacific Defence Reporter published an article, in which 
journalist, Geoff Slocombe, reported on the role of Defence Space Command, the 
Defence Strategic Review, and how Defence is pursuing a space architecture that is 
distributed and diversified. Printed article. 

On 18 August 2023 the Australian Broadcasting Corporation published an article, in 
which journalist, Andrew Greene wrote of how China use satellites to monitor ADF 
exercises like Talisman Sabre. He interviewed a representative from EOS Space 
Systems, who noted that "Australia by contrast doesn't own any military satellites and 
certainly doesn't have any capability to collect the sort of imagery that China's been 
collecting over Sydney Harbour this week."

On 1 August 2023 the Australian Strategic Policy Institute published an article, in which 
journalist, Malcom Davis reported on the outcomes of the AUSMIN meeting in 
Brisbane, where government leaders cited the importance of the Space Domain. 

On 3 April 2023 Australian media reported extensively on Lockheed Martin winning the 
tender to build Australia’s first sovereign military satellites, including reporting by The 
Mandarin, The Australian and InnovationAus.com
Prepared By:
Cleared By: 
Name: Air Commodore Peter Thompson
Name: Lieutenant General John Frewen
Branch: Director-General Space Capability 
Position: Chief of Joint Capabilities
Command: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Estimates: October 2023
PDR No: SB23-000690
Last updated: 04 October 2023 
        Joint Project 9102 Phase 1 
Key witness: Air Vice-Marshal Catherine Roberts; Air Vice-Marshal David Scheul
Group:
Joint Capabilities Group
PDR No: 
SB23-000690
Prepared by:
Cleared by Command Head:
Air Commodore Peter Thompson 
Air Vice-Marshal Catherine Roberts
Director General Space Capability 
Commander Defence Space Command
Mob: s22
Mob:  
s22
Date: 15 September 2023
Date: 3 October 2023
Consultation:  
Date:  28 September 2023  
Capability Acquisition and Sustainment 
Mob:  
s22
Ph: 
s47E(d)
Group
Air Vice-Marshal David Scheul 
Head Air Defence and Space Systems 
Division
Cleared by DSR:
Date: 2 October 2023
Major General Matthew Pearse
Head Plans and Capability Integration
Cleared by DFG:
Date: 22 September 2023
Ms Emma McCarthy
Assistant Secretary 
Finance – Specialist Groups
Cleared by Group Head:
Date:  4 October 2023  
Lieutenant General John Frewen
Chief of Joint Capabilities
Ph: s47E(d)
Prepared By:
Cleared By: 
Name: Air Commodore Peter Thompson
Name: Lieutenant General John Frewen
Branch: Director-General Space Capability 
Position: Chief of Joint Capabilities
Command: Defence Space Command
Group: Joint Capabilities Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000712
Last updated: 7 September 2023
            C130J Hercules
Key witnesses: Air Marshal Robert Chipman; Air Vice Marshal Graham Edwards
 C130J Hercules
Handling Note: 

Air Marshal Robert Chipman, Chief of Air Force, to lead on Key Messages and 
Capability.

Air Vice-Marshal Graham Edwards, Head Aerospace Systems Division, to lead on 
Project Acquisition and Sustainment.
Key Messages

Defence is replacing and expanding the medium air mobility fleet of Lockheed Martin 
C-130J aircraft with a fleet of new Lockheed Martin C-130J-30 Hercules.

Defence is acquiring 20 aircraft, aircraft sub-systems, training devices, supplies and 
support services to be delivered through a combination of Foreign Military Sales and 
Direct Commercial Sales.

The new aircraft will begin to arrive from late 2027.
Talking Points
When was the announcement made?

Defence published a media release in July 2023 stating, ‘The Albanese Government will 
purchase 20 new C-130J Hercules aircraft for the Royal Australian Air Force for 
$9.8 billion’.
What aircraft types were considered to replace the C-130J aircraft?

Aircraft types considered were the Lockheed Martin C-130J-30 Hercules, 
Airbus A400M, Kawasaki C2 and the Embraer C-390.
Why was the C-130J-30 Hercules aircraft selected?

Defence identified the Lockheed Martin C-130J-30 Hercules aircraft was the only option 
that meets all capability requirements and assures Defence’s medium air mobility 
capability without introducing substantial cost, schedule and capability risk.

This aircraft is a certified, proven, mature, interoperable, off-the-shelf military 
capability and represents the lowest risk pathway to meeting Defence’s medium air 
mobility requirements. 

The replacement C-130J-30 Hercules aircraft will be capable of receiving fuel in-flight.
What is the cost?

The C-130J -30 procurement is being conducted through Foreign Military Sales. Initial 
costings were requested for 24 aircraft.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000712
Last updated: 7 September 2023
            C130J Hercules
Key witnesses: Air Marshal Robert Chipman; Air Vice Marshal Graham Edwards

The cost for the acquisition of 24 aircraft, aircraft sub-systems, all simulators, fleet 
spares, supplies and support services is estimated to be $9.8 billion (including $1.32 
billion in contingency). The aircraft will be acquired through a Foreign Military Sales 
case and Direct Commercial Sales.

Negotiations with the United States Government are in progress to reduce the cost 
commensurate with the acquisition of 20 aircraft instead of 24.

Revised costings for 20 aircraft are expected in Quarter 2 2024.

Defence will present a breakdown of facilities, infrastructure and sustainment costs for 
Government approval in 2025.

Costings for the KC-130J Air-to-Air Refuelling variant and gunship variant have not been 
requested.
Why did the number change from 24 to 20 aircraft?

Government approved the final number of 20 C-130J-30 Hercules aircraft in 2023. 
20 aircraft meets Defence’s overall air mobility needs as part of the Defence fleet of 
light, medium, heavy and air refuelling aircraft.
When is delivery expected for the new C-130J-30 Hercules aircraft?

Aircraft delivery will be timed to coincide with the existing fleet drawdown and is 
expected to commence from late-2027 and finish in the early 2030s.
What is the disposal plan?

The disposal plan is under development.
Why are facilities a separate Government submission to the aircraft acquisition? 

Separating the facilities and infrastructure elements from the aircraft acquisition 
reduces risk to the overall project schedule by securing aircraft production slots and 
allowing commencement of workforce growth while facilities and infrastructure 
proposals can be developed.
Background 

Defence initiated the AIR7404 Phase 1 Medium Air Mobility Aircraft project (AIR7404 
Phase 1) in April 2021 to replace the existing C-130J capability. Defence conducted 
internal workshops and capability concept development through May – June 2021.

Defence initiated this project to ensure there is no capability gap as the existing 
C-130J fleet is withdrawn from service as aircraft reach their life limits.

Initiating the project in this timeframe allows time to develop suitable infrastructure 
(i.e. airfield works, squadron buildings, hangars, etc), guarantee production line spots 
and gradually build workforce for the increased fleet size.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000712
Last updated: 7 September 2023
            C130J Hercules
Key witnesses: Air Marshal Robert Chipman; Air Vice Marshal Graham Edwards

Defence identified four options as potential replacement candidates, including the 
Embraer C-390, Kawasaki C2, Airbus A400M and the Lockheed Martin C-130J-30 
Hercules aircraft.

Analysis of the four options considered a range of elements, including a number of 
lessons learned from previous aircraft acquisitions that included platform and 
sustainment system maturity, existing Australian standard certification of aircraft, 
systems produced at scale and systems already in service with the United States and 
key interoperability partners.

The Lockheed Martin C-130J-30 Hercules variant was the only option that meets 
capability needs, addresses previous lessons and assures a medium air mobility 
capability without incurring substantial cost, schedule and capability risk.
Australian Industry Content

AIR7404 Phase 1 will maximise Australian Industry Capability through infrastructure 
redevelopment at RAAF Richmond, delivery and sustainment of training services and 
the sustainment of the replacement fleet with respect to maintenance (including 
Maintenance, Repair and Overhaul opportunities), logistics and engineering services.

AIR7404 Phase 1 has released a Request for Proposal to Industry for the sustainment of 
the expanded replacement C-130J fleet. Government approval of the sustainment for 
the expanded replacement fleet will be sought in Financial Year 2025-26.
Supporting Information
Questions on Notice 
2022-23 October Budget Estimates: 9 November 22

In Q
QoN 39, Senator David Fawcett (Liberal Party, South Australia) asked whether the 
C-130J needed to refuel before returning from Antarctica and whether Defence still has 
the internal fuel tanks used by the C-130H when previously operating to Antarctica.
Freedom of Information (FOI) Requests

No FOI’s requested.
Recent Ministerial Comments

On 24 July 2023, the Deputy Prime Minister and Minister for Defence Industry 
announced the purchase of 20 new C-130J-30 Hercules aircraft for the Royal Australian 
Air Force for $9.8 billion
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000712
Last updated: 7 September 2023
            C130J Hercules
Key witnesses: Air Marshal Robert Chipman; Air Vice Marshal Graham Edwards
Relevant Media Reporting

In July 2023, various media articles were published after the Deputy Prime Minister and 
Minister for Defence Industry announced Australia to acquire 20 new C-130J Hercules 
aircraft. The articles discussed the acquisition of the 20 new C-130J-30 Hercules aircraft 
from Lockheed Martin at a cost of $9.8 billion (US$6.6 billion), with the first aircraft due 
in 2027 to replace and expand the existing fleet operated by the Royal Australian Air 
Force.
Several articles were published at the time of the Avalon Airshow including:

On 28 February 2023 C-130J Hercules: proven air mobility capability for Australia now 
and the future | The Australian Whenever Australia needs to deliver air mobility effects 
in arduous circumstances, the C-130J Hercules is the platform of choice.

On 28 February 2023 the Australian published an article titled Secrecy surrounds 
planned $9bn purchase of transport aircraft | The Australian. Journalist, Kym Bergman, 
wrote the RAAF is planning to spend at least $9 billion for a fleet of turboprop 
transport aircraft and refuses to detail how many will be purchased, and the time of 
their delivery.

On 10 March 2023 the Australian Defence Magazine reported that Lockheed Martin 
submits proposal for C-130J-30 Super Hercules sustainment under which it would head 
a consortium of companies to sustain the RAAF’s current and future fleets of C-130J-30 
Super Hercules tactical airlifters.

On 5 April 2023, The Australian published an article titled FracRisk tool keeps Hercules 
aloft longer. Journalist, Gregor Ferguson, reported that a Defence Science and 
Technology Group tool is being used in the safe life management of the current C-130J 
fleet as it gets older. The FracRisk tool was not used in the structural life limit 
determination for the current C-130J fleet.

Following the Defence media release on 1 November 2022, announcing that the 
C-130J-30 Hercules would be the only option that Defence will progress for 
Government approval. The United States Government media release on 
2 November 2022 announced the possible sale of 24 aircraft and support systems for 
US $6.35 billion, with numerous media outlets publishing articles regarding AIR7404 
Phase 1 and the proposed procurement of an expanded replacement C-130J-30 
Hercules fleet. 

On 2 November 2022, Breaking Defense Indo-Pacific published an article titled 
Australia stays with C-130, but size, timing of buy uncertain. Journalist Colin Clark 
writes that Marcus Hellyer from the Australian Strategic Policy Institute is quoted as 
observing that the C-130J down select announcement shows greater transparency by 
Defence in announcing what options it is taking to Government.

On 3 November 2022 the Australian Financial Review published an article titled RAAF 
to get 24 new Hercules aircraft in $10 billion deal. Journalist, Andrew Tillet, wrote of 
the lack of a public tender and competitive evaluation process to support the C-130J 
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000712
Last updated: 7 September 2023
            C130J Hercules
Key witnesses: Air Marshal Robert Chipman; Air Vice Marshal Graham Edwards
down select decision and the proximity of the decision to the Defence Strategic 
Review.

On 4 November 2022, The Australian published an article titled Defence review: 
Former RAAF director-general queries $10bn aircraft spend on ageing C-130J cargo 
planes. Journalist, Ben Packham, who communicated the views of AIRCDRE John Oddie 
(Retd) who is suggesting the ‘Brazilian made Embraer C-390 Millennium offered better 
reliability, range, payload and speed at 30 per cent of the cost of the C-130J’.

On 8 December 2022, the Australian Defence Magazine published an article entitled Air 
Force doubles down on C-130J selection. Journalist, Nigel Pittaway, questioned the 
thoroughness of the Defence assessment of the available medium air mobility options, 
a lack of detail regarding the 22 requirements Defence used in the assessment and 
incorrectly inferred that Australian companies would find it difficult to obtain 
sustainment contracts under a Foreign Military Sales purchase – even though the 
sustainment of the expanded replacement fleet is to be contracted directly with 
Australian Industry.
Division:
Air Force
PDR No: 
SB23-000712
Prepared by:
Cleared by Division Head:
Air Commodore David Titheridge
Air Vice-Marshal Wendy Blyth
Director General Air Capability Enablers 
Head of Air Force Capability
Air Force
Air Force
Mob: s22
Mob: s22
Date: 17 August 2023
Date: 29 August 2023 
Consultation:  
Date: 24 August 2023
Air Vice-Marshal Graeme Edwards
Mob: s22
   Ph: s47E(d)
Head of Aerospace Systems Division
Capability Acquisition and Sustainment 
Group
Cleared by CFO:
Date: 20 September 2023
Lynette Daly
Assistance Secretary, Finance  - Air Force
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 5 September 2023  
Air Marshal Robert Chipman
Chief of Air Force 
Air Force
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000712
Last updated: 7 September 2023
            C130J Hercules
Key witnesses: Air Marshal Robert Chipman; Air Vice Marshal Graham Edwards
Questions on notice referred to within the brief:
2022-23 Budget Estimates
Senator David Fawcett
Question Number: 39
Date question was tabled: 16 December 2023
Question
Senator FAWCETT: Could I speak to somebody about C-130Js, please. I noticed the media 
release from Defence on 1 November saying that Defence will only bring forward the C-130J 
as an option to government for next year. Firstly, can I assume that that is subject to the DSR, 
the strategic review? Air Marshal Chipman: That would be correct. All decisions will be 
subject to the DSR outcomes, yes. Senator FAWCETT: Lockheed Martin's rep at the Dubai 
Airshow, nearly a year ago now, said that RAAF had reached out about 20 C-130Js and six KC-
130Js, being the air-to-air refuelling aircraft. Is that correct? Are they part of the fleet that's 
being considered? Air Marshal Chipman: We have not sought information on KC-130J air-to-
air refuelling capability, no. Senator FAWCETT: Are there any plans to deploy the aircraft to 
the Antarctic, given the tasking load that is on the C-17s that normally fly those six missions 
each year? Air Marshal Chipman: We haven't got a specific task in line at the moment for C-
130J to go to Antarctica, but the aircraft would be capable of that mission, and it has been 
bought for the purpose of being a utility transport aircraft. Senator FAWCETT: So it can 
deploy to the Antarctic. Does it need to refuel there before returning? Air Marshal Chipman: 
I'd have to take that question on notice. Senator FAWCETT: There has been some discussion 
that it would need internal fuel tanks. I think we used to have them for the C-130H. Is that 
correct? Air Marshal Chipman: We have previously operated C-130H to Antarctica, but I'd 
have to get more details on the specifics of that mission. Senator FAWCETT: Do we still have 
those fuel tanks? Air Marshal Chipman: I'll have to take that on notice. 
Answer
The C-130J has the range with external fuel tanks to deploy to Antarctica, but would need 
refuelling before returning. 
The previous C-130H internal fuel tanks are no longer available.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 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.

The delivery of the final nine F-35A Lightning II aircraft may be delayed until software 
testing and installation is complete. There is no impact to aircraft build delivery.

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 will be put to Government for 
approval in Quarter 1, 2024. This will ensure the F-35A Lightning II is able to realise a 
range of enhanced sensors, electronic warfare and weapon capabilities from 2026.

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
Position: Director General Air Combat Capability
Position: Chief of Air Force
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 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 on 2023-24 Portfolio Budget Statements Price Basis as at 
31 August 2023)
Total Approved $16.456 billion
Project Budget 
(including $2.804 billion contingency)
Detailed Acquisition Measures
Life to Date Spend
$11.833 billion  (30 June 2023)
2023-24 Budget Estimate
$870 million*
2023-24 Year to Date Expenditure
$69.550 million (31 August 2023)
2024-25 Budget Estimate
$661 million
Detailed Sustainment Measures (2023-24 Budget is at 2023-24 Portfolio Budget 
Statements Price Basis)
2023-24 Budget Estimate 
$484.44 million
2023-24 Year to Date Expenditure 
$70.701 million (31 August 2023)
2024-25 Budget Estimate
$0 million (2A/B) $508.48 million (CAF30)
* 2023-24 Budget as at 2023-24 Portfolio Budget Statements and does not include transfer of scope and budget 
of $4 million to AIR6000 Phase 6
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 
delivered 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:

Preserving technical relevance – achieved by maintaining through life system 
upgrades and modifications via the Project AIR6000 Phase 6, with 
complementary investments in F-35A Lightning II weapons. 
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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards

Building capacity – continue maturing the F-35A Lightning II logistics and support 
infrastructure to grow the operational capacity of the F-35A Lightning II force.

Continuing development of 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 activities.
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 is the 
most lethal and survivable air combat capability available. The combination of an 
advanced fifth generation combat aircraft integrated with other ADF and allied 
capabilities across the five war fighting domains, operated by a well-trained, highly 
skilled workforce, provides Australia a capability edge against current regional threats. 

Australia intends to maintain its air combat capability edge against emerging regional 
threats by investing in F-35A modernisation aligned with the F-35 Joint Program Office 
Follow-on Modernisation Plan. 

Australia has deployed and operated 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 due to developmental 
issues experienced with the latest version of aircraft software. Lot 15 aircraft are the 
first to incorporate Technical Refresh 3, an upgrade to the F-35’s computational power 
necessary to support future Block 4 capabilities as part of the F-35 modernisation 
program. Defence is working with the F-35 Lightning II Joint Project Office to finalise 
the delivery schedule.
What is the state of the F-35A Lightning II workforce?

The Air Force faces challenges across workforce attraction, generation and retention. 
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.
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.

In 2021, Defence received approval from Government for the next tranche of 
F-35A Lightning II sustainment funding (2025-26 to 2031-32), totalling $4.765 billion 
based on revised cost estimates.

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.
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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
How is Australia’s involvement in the global F-35 Lightning II Program helping Australian 
Industry?

More than 70 Australian companies have shared in excess of $4.0 billion worth of 
contracts as part of the global F-35A Lightning II Program, an increase on the 2020 
figure of $2.7 billion (as of June 2023).

Funding for the new Joint Strike Fighter Industry Support Program increased from 
$4 million at program launch in December 2020, to $64 million on 8 December 2021. 
The Industry Support Program will continue through AIR6000 Phase 6 F-35A Lightning II 
Through Life Upgrades.

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. The construction contract is expected to be approved in 
2024. The establishment of the coating facility will ensure Australia’s F-35A Lightning II 
capability continues to provide appropriate levels of lethality and survivability. 
Defence Strategic Review Recommendations for F-35A Lightning II

The Government agreed in principle with the Defence Strategic Review 
recommendation the Long Range Anti-Ship Missile and Joint Strike Missile capabilities 
should be integrated 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 be included in the integration of the Joint Strike Missile onto the 
F-35A Lightning II. Both these capabilities will require the F-35A Lightning II Block 4 
hardware and software configuration.
Does Defence need to reassess the sustainment strategy for F-35 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-35. The report specifically 
relates to the United States Department of Defense.

The Joint Program Office is working with the services and partners to improve 
sustainment across the F-35 enterprise, with initiatives including global repair, 
transportation and warehousing. Defence welcomes this initiative.

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 would activate regional capabilities and provide critical support for 
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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
partners operating in the Asia Pacific and supplement United States-based repair 
venues.

The Asia Pacific regional depot at Williamtown will support Australia’s fleet of F-35A 
Lightning II aircraft, delivering maintenance, repair, overhaul and upgrade. The depot’s 
capacity is increasing in line with capability needs for Australia’s growing fleet.
F-35A Program Cost Increases

A May 2023 United States Government Accounting Office report identified that the 
total cost of F-35 procurement has grown for the United States. These cost increases 
are unique to the United States and are not shared by Australia. 

The report identified the driver for United States’ cost increases was due to 
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. In 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 Upgrades.
F-35 Engine and Cooling Improvements

The May 2023 United States Government Accounting Office report raised concern 
about oversight of F-35 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-35 program, Australia has helped 
fund initial engineering analysis that will inform propulsion modification options. 

The United States F-35 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. These modifications will be presented to Government 
for consideration as part of the ongoing F-35 modernisation program.
Background 

Initial Operating Capability, declared on 28 December 2020, was defined as one 
operationally-ready squadron and one unit providing a sovereign training capability.

Final Operating Capability, defined as three operational squadrons and one training 
unit, is scheduled for December 2023.

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.

Defence will seek Government approval for the remaining AIR6000 projects as part of 
the 2024 National Defence Strategy.
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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards

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. The following table details the cost of aircraft by Lot.
Lot
Number of aircraft/Status
Average cost/Lot
Low Rate Initial Production six (delivered 2014)
two aircraft delivered
USD $123 million
Low Rate Initial Production 10 (delivered 2018)
eight aircraft delivered
USD $95 million
Low Rate Initial Production 11 (delivered 2019)
eight aircraft delivered
USD $91 million
Lot 12 (delivery year 2020)
15 aircraft delivered
USD $81 million
Lot 13 (delivery year 2021)
15 aircraft delivered
USD $79 million
Lot 14 (delivery year 2022)
15 aircraft delivered
USD $78 million
Lot 15 (delivery year 2023)
nine aircraft on contract
USD $83 million
Lot 15 contract details announced in the United States

The cost of Australia’s remaining nine Lot 15 aircraft increased slightly from Lot 14 due 
to global inflation and a substantial increase in software and hardware capabilities 
compared to previous Lots. 
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 
public accident findings relating to other nations’ use of F-35A Lightning II capability.

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-35 
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-35 operations.
Supporting Information
Questions on Notice

No QoNs asked.
Freedom of Information (FOI) Requests 

No FOIs requested.
Recent Ministerial 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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards

No recent comments.
Relevant Media Reporting 

On 11 October 2023, ‘The Australian’ reported that Air Force pilots are concerned 
about F-35 crashes and equipment failures, and that the F-35 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. The journalist Charles Miranda reports that while delivery of Air Force’s 
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.

On 13 June 2023, Defense News article reported that the Technology Refresh 3 
schedule had slipped considerably. ABC journalist Andrew Greene posted a paragraph 
from the article on Twitter.

On 30 May 2023, the United States Government Accountability Office published a 
report outlining that the F-35A Lightning II program continues to experience schedule 
delays, cost growth, and late deliveries.

On 30 March 2023, The Drive published an article by journalist Joseph Trevithick, 
reporting planned engine upgrades for all the variants of the F-35A Lightning II 
Joint Strike Fighter are seen as critical by the United States military.

On 29 March 2023, BNN Bloomberg published an article reporting about half of the 
Pentagon’s F-35A Lightning II fighter jets are considered mission-capable, well below 
the target of 65 per cent. 

On 28 March 2023, Aviation Week published an article by journalist Brian Everstine, 
reporting on F-35 engine replacement options.

On 7 March 2023, a Defense News articlereported that Lockheed Martin had resumed 
acceptance flights of newly built F-35A Lightning II Joint Strike Fighters, nearly three 
months after an engine problem grounded new jetsand halted deliveries.

On 6 March 2023, Breaking Defense published an article by journalist Michael Marrow, 
reporting that the value of the agreement between the F-35A Lightning II Joint Program 
Office and Pratt & Whitney for F135 engines could reach USD$8 billion.

International media reported that numerous newer F-35A Lighting II 
Joint Strike Fighters had been grounded in response to a 15 December 2022 incident, 
in which a hovering fighter crashed on a Texas runway and its pilot ejected. 
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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000721
Last updated: 6 September 2023
F-35A Lightning II (Joint Strike Fighter)
Key witnesses: Air Marshal Robert Chipman; Air Vice-Marshal Graham Edwards
Division:
Air Force
PDR No: 
SB23-000721
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
Mob: s22
Date: 17 August 2023
Date: 19 October 2023
Consultation: 
Date: 29 September 2023 
Air Vice-Marshal Graham Edwards
Mob:  
s22
 
Ph: 
s47E(d)
Head of Aerospace Systems Division
Capability Acquisition and Sustainment 
Group
Cleared by CFO / DSR:
Major General Matthew Pearse
Date: 23 August 2023
ADF Integration Lead
Defence Strategic Review Implementation Task Force
Lynette Daly
Date: 20 September 2023
Assistant Secretary Finance – Air Force
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 19 October 2023
Air Marshal Robert Chipman
Chief of 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
Division: Air Combat Capability
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
Special Purpose Aircraft
Handling Note: Air Marshal Robert Chipman, Chief of Air Force, to lead on Special Purpose 
Aircraft.
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.

It may be provided for use by others in extenuating circumstances or emergencies, 
where the Prime Minister or Deputy Prime Minister consider it appropriate.

The Guidelines for the Use of Special Purpose Aircraft have been reviewed by 
Defence following consultation with the Department of Finance and the Australian 
Federal Police. The revised Guidelines have recently been presented to the Office of 
the Deputy Prime Minister for consideration.

The Schedule of Special Purpose flights from the period 1 January 2021 to 
30 June 2023 has been published on the Defence website.

Defence is leasing two new replacement 737-8 Boeing Business Jets to ensure 
continuity of the medium capacity Special Purpose Aircraft. 
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 supports tasking requests received from Government House and the 
Government.

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.

The Governor-General approves his own flights. The Prime Minister approves his own 
flights, those of official guests of the Government and international flights of other 
entitled passengers. The Deputy Prime Minister, as Minister for Defence, approves the 
domestic flights of all other entitled passengers. 

The Deputy Prime Minister, as the Minister for Defence, may also approve international 
flights for Defence officials, as established in correspondence between the 
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
Prime Minister and Minister for Defence on 29 June 1998. Once approved, the 2023 
Guidelines for the Use of Special Purpose Aircraft will ratify this longstanding norm.

Defence coordinates with the Prime Minister’s Office, the Department of the Prime 
Minister and Cabinet, the Office of the Official Secretary to the Governor-General and 
the Office of the Deputy Prime Minister to manage Special Purpose Aircraft allocation 
and tasking.
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. 
What were the findings of the Australian Federal Police security review?

The Australian Federal Police are best placed to provide detail; however, the 
recommendations included removing some specific details from the Schedule of Special 
Purpose Flights based on identified security vulnerabilities.

These recommendations were endorsed by the Security Coordination Group in 
March 2023, which comprised officials from the Department of Prime Minister and 
Cabinet, Attorney-General’s Department, Australian Security Intelligence Organisation, 
Department of Home Affairs, Royal Australian Air Force, Department of Defence and 
the Australian Federal Police. 
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 new format 
received in-principal approval by the Office of the Deputy Prime Minister. This new 
format ensures security considerations are balanced with the priorities of 
accountability and transparency in using public assets. 

The new Schedule format published on the Defence website reports on the use of 
Special Purpose Aircraft. This is the first public release of information since the last 
Schedule that covered the period July–December 2020, which was approved by the 
Minister for Defence and tabled in Parliament on 3 August 2021. 

The pause in publishing Schedules since the July–December 2020 iteration was to allow 
time to review the Guidelines for the Use of Special Purpose Aircraft, which included 
the Australian Federal Police-led security review. 

Publication was also delayed as a software replacement was needed to generate the 
Schedule of Special Purpose Flights in a new format that complied with the 
recommendations of the Security Coordination Group. 
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
Why has Defence been so slow to respond to Freedom of Information requests on the use of 
Special Purpose Aircraft?

While the revised Guidelines for the Use of Special Purpose Aircraft have not been 
released, Defence is under obligations from the Information Commissioner to release 
detail on the use of Special Purpose Aircraft. Defence has published data in a new 
format that complies with the recommendations of the Security Coordination Group.
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.
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. 

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.
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 efficient and secure transport 
options and reduced transit times from point-to-point. 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 13 passengers and two ‘medium’ 737-8 Boeing 
Business Jets, capable of carrying 26 passengers. These aircraft are operated by 
Number 34 Squadron located at Defence Establishment Fairbairn, Canberra. 

The support contractor for all five platforms is Northrop Grumman Australia.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman

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. The KC-30A 
modification costs included:

Air-to-air refuelling tanker element – $167 million; and

Government Transport and Communications element – $135 million.

Aircraft flying costs comprise fuel and oil, tyres, oxygen, spares and servicing by 
contractors. When tasked, additional costs incurred comprise aircraft flying costs, 
aircraft handling at civil airports and catering. Defence revises the ‘additional cost’ per 
hour of Special Purpose Aircraft every financial year. These costs are calculated yearly 
in Quarter 4, and applied in the Schedule of Special Purpose Flights.

The current additional cost to operate the Falcon 7X or 737 Boeing Business Jet is 
$4,135 per hour, based on 2021-22 costs. Defence is currently revising this 
additional cost to reflect current operating costs.

The latest Schedule of Special Purpose Flights was published on 19 August 2023. It can 
be found on the Defence website.

The hours flown by Special Purpose Aircraft has increased by approximately 29 per cent 
since the 2022 Federal Election when compared to pre-COVID levels.

The five-year average rate of effort from 2014-15 to 2018-19 (pre-COVID) was 
3,248 hours per annum.

The rate of effort for 2022-23 (post 2022 Federal Election) was 4,183.4 hours. 

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.

Consistent with past practice, Defence also leases additional aircraft to support federal 
election campaigns. In 2022, this comprised of two Fokker F-70s, one Embraer 135 and 
one B200 King Air. 

Air Force also provided two C-130J Hercules aircraft during the initial days of the 2022 
election campaign until charter arrangements could be finalised. These aircraft 
facilitated media transport.
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.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman

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 more 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.
Government Transport and Communications

The Government Transport and Communications KC-30A aircraft provides large 
capacity, long-range international transport when not used in its primary air-to-air 
refuelling role.

The Government Transport and Communications KC-30A aircraft is operated by 
Number 33 Squadron located at RAAF Base Amberley.

The Government Transport and Communications KC-30A aircraft has the capability to 
be refuelled in-flight. At the request of Air Force, an opportunity to demonstrate this 
capability for Government was successfully achieved and resulted in training benefits 
for Air Force. 

In-flight refuelling extends the range of the Government Transport and 
Communications KC-30A aircraft. The extended flight times this capability brings 
requires additional aircrew to be sourced from their primary air-to-air refuelling roles at 
Number 33 Squadron.
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 to the Deputy Prime Minister, as 
Minister for Defence, for compiling the Schedule of Special Purpose Flights.

The last Special Purpose Aircraft Schedule to be tabled in Parliament covered the 
period 1 July – 31 December 2020 and utilised the reporting format dictated by the 
2013 Guidelines. 

On 19 August 2023, Defence published on its website quarterly Schedules in a new 
format that comply with the recommendations of the Security Coordination Group. 
These received in principle approval by the Office of the Deputy Prime Minister, and 
cover the period 1 January 2021 to 30 June 2023.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
Supporting Information
Questions on Notice 
2022-23 October Budget Estimates: 9 November 2022
 In Q
QoN 34, Senator Raff Ciccone (Labor, Victoria) asked for information regarding lease 
commencement and end dates for the Special Purpose Aircraft fleet and Ministerial 
approvals for the new Special Purpose Aircraft.
Freedom of Information (FOI) Requests
 In October 2023, a media organisation sought access under freedom of information to 
documentation between Defence and the Minister’s Office regarding VIP flight 
disclosure and internal documents regarding VIP flight disclosure. D
Decision pending.
 In September 2023, a media organisation sought access under freedom of information 
to documentation relating to copies of food, drink, beverage menus and wine lists 
provided for Department of Defence RAAF 34 Squadron domestic and international 
“Special Purpose Flights” from May 23, 2022. Including any related 
correspondence/emails between 34 Squadron and the Prime Minister’s Office, and 
transportation or meal requirements of any animals.  Decision Pending.
 In September 2023, an individual sought access under freedom of information to 
documentation relating to flight manifests for all Royal Australian Air Force 
No. 34 Squadron Special Purpose (VIP) flights for which either the Hon. Anthony 
Albanese MP, or alternatively staff of the Hon. Anthony Albanese MP, were listed as 
passengers. The period of the documents being sought is from 15 August 2022 to 14 
October 2022. D
Decision pending.
 In September 2023, an individual sought access under freedom of information to 
documentation relating to flight manifests for all Royal Australian Air Force No. 34 
Squadron Special Purpose (VIP) flights for which either the Hon. Anthony Albanese MP, 
or alternatively staff of the Hon. Anthony Albanese MP, were listed as passengers. The 
period of the documents being sought is from 15 November 2022 to 14 December 
2022. D
Decision pending.
 In September 2023, an individual sought access under freedom of information to 
documentation relating to flight manifests for all Royal Australian Air Force No. 34 
Squadron Special Purpose (VIP) flights for which either the Hon. Anthony Albanese MP, 
or alternatively staff of the Hon. Anthony Albanese MP, were listed as passengers. The 
period of the documents being sought is from 1 February 2023 to 28 February 2023. 
Decision pending. 
 In September 2023, an individual sought access under freedom of information to 
documentation relating to flight manifests for all Royal Australian Air Force No. 34 
Squadron Special Purpose (VIP) flights for which either the Hon. Anthony Albanese MP, 
or alternatively staff of the Hon. Anthony Albanese MP, were listed as passengers. The 
period of the documents being sought is from 21 May 2022 to 14 June 2022. D
Decision 
pending.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
 In September 2023, a media organisation sought access under freedom of information 
to documentation relating to the global annual cost of the RAAF VIP squadron for 
politicians and dignitaries. D
Decision pending.
 In September 2023, a media organisation sought access under freedom of information 
to documentation relating to correspondence between the DPM’s media advisers and 
the Department regarding the issue of RAAF VIP Flights.  Decision pending.
 In September 2023, a media organisation sought access under freedom of information 
to documentation relating to correspondence with IPEA regarding VIP flights and the 
reasons for withholding details of the flights, including internal documents discussing 
reasons for the refusal to provide the documents. D
Decision pending.
 In September 2023, a media organisation sought access under freedom of information 
to documentation relating to the transportation of Toto the PMs female cavoodle on 
any RAAF VIP flight. D
Decision pending.
 In September 2023, an individual sought access under freedom of information to 
documentation relating to SPA Manifests carrying the PM to/from New Zealand in the 
month of July 2023 and to/from Western Australian in the month of August 2023; SPA 
Manifest carrying the DPM to/from the Solomon Islands in the month of June 2023 and 
to/from Western Australian in the month of July 2023. D
Decision pending.
 In September 2023, a media organisation sought access under freedom of information 
to documentation relating to Mr Richard Marles preferred menu on RAAF VIP flights 
and special requests or preferred drinks menu. D
Decision pending.
 In August 2023, a media organisation sought access under freedom of information to 
documentation relating to emails from Defence or the PMO or other parties to IPEA 
detailing Scott Morrison's special purpose flights between September 3, 2021 and 
September 6, 2021. Decision pending. D
Decision pending.
 In August 2023, a media organisation sought access under freedom of information to 
documentation detailing Scott Morrison's special purpose flight to on 
September 3, 2021 and September 6, 2021. D
Decision pending.
 In August 2023, an individual sought access under freedom of information to 
documentation relating to SPA flights that provide the cost per flight, the departure 
and arrival locations or the date of the flight for date ranges provided in the response 
to FOI 702/22/23 (01 January 2021 – 31 March 2021; 01 April 2021 – 30 June 2021; 
01 July 2021 – 30 September 2021; 01 October 2021 – 31 December 2021. If costs and 
alike cannot be provided, then the policy change request is to be provided. D
Decision 
pending.
 In August 2023, a media organisation sought access under freedom of information to 
documentation relating to SPA flights carrying ministers, assistant ministers, prime 
ministers, the Governor-General and departmental support staff for all 2022 and 2023 
up to June 30, 2023.  Decision pending.
 In August 2023, an individual sought access under freedom of information to 
documentation relating to costs, departure / arrival destinations associated with flights 
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
undertaken by the Prime Minister and Deputy Prime Minister from June 2022 to 
August 2023. D
Decision pending.
 In August 2023, an individual sought access under freedom of information to 
documentation relating SPA flights on which the Prime Minister or alternatively staff of 
the Prime Minister were listed as passengers. D
Decision pending.
 In August 2023, a media organisation sought access under freedom of information to 
documentation relating to communications between the Department and Prime 
Ministers and Deputy Prime Ministers Office about SPA flights and any decision to 
release SPA Schedules between August 2022 and August 2023. and SPA travel. D
Decision 
pending.
 In August 2023, an individual sought access under freedom of information to 
documentation relating to the Prime Minister's SPA travel to Alice Springs on 
24 January 2023 ([FOI – Closed matter. Documents and decision were released to the 
individual 9 August 2023). D
Decision pending.
 In June 2023, an individual sought access under freedom of information for 
documentation relating to a schedule of all RAAF Special Purpose Aircraft flights 
carrying MPs Tanya Plibersek and Murray Watt from 22/05/2022 to 
22/05/2023.D
Decision pending. 
 In May 2023, a right to know request was made under freedom of information for 
documentation relating to the Prime Minister's SPA travel to Alice Springs in January 
2023 regarding catering requests received and references to the Australian Open, 
television or streaming services or a commitment in Melbourne. D
Document and 
decision released to the applicant on 9 August 2023 – C
Closed. 
 In May 2023 an individual sought access under freedom of information to 
documentation relating to Prelim Reports into the review of the 2013 SPA Guidelines. 
Documents released and decision provided to applicant on 17 August 2023 – Closed. 
The Office of the Information Commissioner (OAIC) received a request from the 
individual on 20 July 2023 for an external review. Defence provided a response to the 
IC on 21 August 2023, awaiting advice from the OAIC on whether the applicant will 
proceed with the external review.
 In March 2023, a media organisation sought access to any order or direction to 
Defence, either from within Defence or from another Department or Minister, to 
review the Guidelines for the Use of Special Purpose Aircraft between June 2022 and 
March 2023. N
No documents found, decision released to applicant on 17 April 2023 – 
Closed.
 In March 2023, a media organisation sought access under freedom of information to 
any communication from previous Minister for Defence or Prime Minister, or their 
offices, to Defence advising the biennial publication of Special Purpose Aircraft be no 
longer tabled in parliament between 2020-2021. N
No documents found, decision 
released to applicant on 19 April 2023 – Closed.
 In March 2023, a media organisation sought access under freedom of information to 
Special Purpose Aircraft flights carrying all Members of Parliament during January-June 
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
2021, July-December 2021, January-June 2022 and July-December 2022, excluding 
flight not carry Federal MPs, including all names of MPs but not staffers. D
Documents 
released and decision provided to applicant on 17 August 2023 - Closed.
 In February 2023, an individual sought access under to documentation relating to the 
Special Purpose Aircraft (VIP) Flight Manifests for any flight in the term of the 47th 
Parliament that contained the names for 33 Senators. N
No documents released, original 
decision was to defer release. D
Decision was provided to the individual 10 March 2023. 
Applicant sought a review into the original decision. TThe individual withdrew the 
request on 25 August 2023. Varied decision made under s55G – External Review.
 In February 2023, a media organisation sought access under freedom of information to 
documentation relation to a schedule of all RAAF Special Purpose Aircraft flights 
carrying ministers, assistant ministers, prime ministers and any departmental support 
staff for all 2022 and 2023 up to February 02. N
No documents released, original decision 
was to defer release. Decision was provided to the individual 10 March 2023. In March 
2023, the applicant sought a review into the original decision. D
Documents released and 
decision provided to applicant on 21 August 2023 – Internal Review.
Recent Ministerial Comments 
 On 10 September 2023, in an interview with Sky News, Sunday Agenda, the Deputy 
Prime Minister discussed releasing information relating to use of Special Purpose 
Aircraft within the bounds of national security advice received. 
Relevant Media Reporting 
 On 6 September 2023 the Liberal Party of Australia issued a media release titled 
Transparency turbulence for Labor Government. The media release outlined the Order 
to Produce issued at Question Time on 5 September 2023, and discussed expectations 
of transparency on the use of Special Purpose Aircraft.
 On 6 September 2023 the Daily Telegraph published an article by Ellen Ransley titled 
Marles pushed on $3.6m flights. The article outlines that the Deputy Prime Minister is 
under pressure to provide details of special purpose flights after released schedules 
reveal he had taken more than 700 hours of flights. 
 On 5 September 2023 ABC News published an online article titled Government 
expected to face grilling over Qantas, Richard Marles's flights in Question Time 
foreshadowing topics anticipated to dominate Question Time. 
 On 5 September 2023 The Daily Mail published an article titled Richard Marles: Golf-
loving Deputy Prime Minister ordered to handover documents revealing $3.6million in 
secret taxpayer-funded flights. Details that the Deputy Prime Minister has been given 
nine days to hand over documents revealing the dates and cost of every flight he took 
on Special Purpose Aircraft in the past year.
 On 5 September 2023 various morning news programs covered the previous day’s 
Question Time exchanges on Special Purpose Aircraft, including Sky News Credlin 
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
program, Sunrise program with guest Sam Maiden, Sky News Australia First Edition and 
ABC News Breakfast.
 On 27 March 2023, RiotAct published an article titled Canberra-based 737BBJ 
Government VIP aircraft fleet to be refreshed. Journalist Andrew McLaughlin reported 
the Federal Government’s two 737 Boeing Business Jet Special Purpose Aircraft would 
be replaced and referenced Defence documents tendered to Senate Estimates.
Division:
Air Force
PDR No: 
SB23-000720
Prepared by:
Cleared by Division Head: 
Air Commodore David Titheridge 
Air Vice-Marshal Wendy Blyth
Director General 
Head of Air Force Capability
Air Capability Enablers – Air Force
Air Force
Mob:  
s22
 
Ph: 
s47E(d)
Mob: s22
   Ph: s47E(d)
Date: 17 August 2023
Date: 29 August 2023 
Consultation: 
Date: 24 August 2023 
Capability and Sustainment Group
Mob:  
s22
 
Ph: 
s47E(d)
Air Vice-Marshal Graham Edwards
Head Aerospace Systems Division
Cleared by CFO:
Date: 20 September 2023
Lynette Daly
Assistant Secretary Finance – Air Force
Consultation: 
Date: 15 August 2023
Headquarters Air Mobility Group
Mob:  
s22
 
Ph: 
s47E(d)
Air Commodore Bradley Clarke
Commander Air Mobility Group
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 19 October 2023 
Air Marshal Robert Chipman
Chief of Air Force 
Air Force
Questions on notice referred to within the brief:
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000720
Last updated: 8 September 2023
        
             Special Purpose Aircraft
Key witness: Air Marshal Robert Chipman
Senate Estimates
Senator Raff Ciccone
Question Number: 34
Date question was tabled: 9 November 2022
Question
CHAIR: And when you say 'government', as in the minister of the day or the department 
secretary?
Air Vice-Marshal Phillips: The previous government.
CHAIR: And which minister signed off on that?
Air Vice-Marshal Phillips: I will have to take that on notice as to who made that 
determination.
CHAIR: If you could, that would be great.
Answer
In December 2021, former Prime Minister Scott Morrison advised via letter to the then 
Minister for Defence Peter Dutton and the then Minister for Finance Senator Birmingham of 
his agreement to the lease of two new Boeing 737-8 BBJ aircraft to ensure continuity of 
provision of the medium capacity Special Purpose Aircraft when the lease on the existing BBJ 
expires in 2024.
Prepared By:
Cleared By: 
Name: Air Commodore David Titheridge
Name: Air Marshal Robert Chipman
Position: Director General Air Capability Enablers
Position: Chief of Air Force
Division: Air Force
Group/Service: Air Force
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
AUKUS Advanced Capabilities
Handling Note: 

Deputy Secretary Strategy, Policy, and Industry, Hugh Jeffrey, to lead on key 
messages and strategic context for AUKUS Advanced Capabilities. 

First Assistant Secretary AUKUS Advanced Capabilities, Stephen Moore, to lead on 
capability progress, resourcing, industry, academia and enabling environment. 

Director-General Australian Submarines Agency, Vice Admiral Johnathan Mead, to 
lead on nuclear-powered submarines. 
Key Messages

AUKUS is a technology and capability 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. This 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 Australian Government has directed that AUKUS Advanced Capabilities be one of 
Defence’s six immediate priorities in response to the Defence Strategic Review.

In line with Government direction in response to the Defence Strategic Review, 
Defence has appointed a senior official (Stephen Moore) whose sole responsibility 
and focus is AUKUS Advanced Capabilities.
Talking Points
Strategic Context

AUKUS Advanced Capabilities harnesses technological advances that will enable 
Australia’s capability edge and support strategic deterrence in the region. 

It increases our collective ability to continue to preserve an international rules-
based order where the sovereignty of all states – large and small – is respected. 

It builds on the longstanding, trusted relationships between Australia, the United 
Kingdom and the United States. 

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; artificial 
intelligence; and autonomy. 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.

These capabilities will:

build resilience and increase survivability for our defence personnel;

convey and protect critical information to enhance operational 
decision-making; and

enable Australia to operate seamlessly with the United Kingdom and United 
States. 
Capability Progress
[Handling note: Stephen Moore can talk to capability progress in more detail.]

Working together, AUKUS partners are making progress on capability development that 
would otherwise have taken our individual nations longer to achieve. 

On 28 April 2023 we achieved several world firsts during an AUKUS artificial 
intelligence trial in the United Kingdom, including the:

live retraining of artificial intelligence models during missions; and

interchange and use of artificial intelligence models on Australian, United 
Kingdom and United States un-crewed vehicles. 

This trial forms part of a series of demonstrations announced by Ministers at the 
AUKUS Defence Ministers’ Meeting on 7 December 2022 in Washington.

Public disclosure of capability progress will be coordinated with the United 
Kingdom and the United States.

Many AUKUS capabilities under development are sensitive and disclosure could 
compromise their effectiveness in future operations. 
Innovation and relationship with the Advanced Strategic Capabilities Accelerator

AUKUS partners are adjusting our domestic innovation frameworks to better accelerate 
capability development. 

In Australia, the Advanced Strategic Capabilities Accelerator will be a key 
contributor to this effort. 

Australia’s Advanced Strategic Capabilities Accelerator will work closely with 
partner institutions such as the United Kingdom’s Defence and Security 
Accelerator, and, in the United States, the Defense Advanced Research Projects 
Agency and the Defense Innovation Unit, to facilitate discrete AUKUS Advanced 
Capabilities efforts.

Please direct any questions relating to the Advanced Strategic Capabilities 
Accelerator to Defence Science and Technology Group. 
Institutionalisation

AUKUS partners have established trilateral institutional structures to embed 
governance and oversight of AUKUS programs. 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.

In Australia, Defence has ensured appropriate governance structures and processes are 
in place to manage program risks involved in developing cutting-edge technologies and 
the complexity of AUKUS projects. 
Enabling Environment

AUKUS Advanced Capabilities is driving reform of the enabling environment for 
capability development. 

Achieving alignment among three different systems has the potential to be of 
significant benefit to Australian businesses and research institutions engaging in 
defence collaboration, research, co-development, or sales activities with the United 
States and the United Kingdom.

Success could deliver as much impact for the AUKUS partners as the capabilities 
themselves. 

In particular, Australia welcomes the United States Congress’ consideration of 
legislative reform to streamline defence cooperation and expand export control 
exemptions for AUKUS. 

Defence remains closely engaged with the United States Government as this 
legislation progresses through Congress.

Please direct questions in relation to technology transfer to the First Assistant 
Secretary Industry Policy, David Nockels. 
Industry Engagement

AUKUS partners share a collective vision for an engaged trilateral industrial base that is 
efficiently and collaboratively solving operational problems.

To support this, AUKUS partners are increasing industry and academic engagement 
within and across our national systems at both classified and unclassified levels. 

Defence conducted a classified briefing for representatives of Australian defence 
industry, and the states and territories, in Canberra on 4 August 2023. 

Defence expects to conduct and participate in further national and trilateral 
briefings as part of our strategy of targeted engagements.

AUKUS partners had an AUKUS Advanced Capabilities presence at Defence and Security 
Equipment International in London, 12-15 September 2023; and the Association of the 
United States Army Annual Meeting and Exposition in Washington, 9-11 October 2023.

Defence will also have a presence at the Indo-Pacific International Maritime 
Exposition in Sydney, 7-9 November 2023. 
If pressed: will additional partners be able to join AUKUS? 

AUKUS partners are focused on embedding and institutionalising a sustainable trilateral 
partnership that meets the strategic needs of our three nations.
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.

In due course, we will identify areas of discrete cooperation where working together 
with likeminded partners would deliver mutual strategic capability benefit. 

At this stage, no countries have been invited to participate. 
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 
the Integrated Investment Program, to align with the intent and 
recommendations of the Defence Strategic Review.

Through this work, Defence is conducting further cost and workforce estimation to 
accurately identify future AUKUS Advanced Capabilities resourcing requirements.
If pressed: Will AUKUS impact Australia’s sovereignty? 

No. As always, 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 we could achieve alone. 
If pressed: Why were the six capability areas chosen? 

The six capability areas were selected after a comprehensive trilateral assessment and 
consultation process.

The assessment process involved a robust study of potential initiatives, focusing 
on their alignment with Defence’s strategic objectives, capability requirements, 
and their suitability for trilateral cooperation.
If pressed: What does AUKUS mean for our partners in the region? 

The Association of Southeast Asian Nations and its security architecture remains central 
to Australia’s engagement in the Indo-Pacific.

AUKUS complements this and other international partnerships – the Five Eyes, the 
Quad, the Five Power Defence Arrangements, and Australia’s deep and close ties with 
our Pacific family.
If pressed: How were the Australian defence industry representatives chosen for the classified 
industry briefing on 4 August 2023?

Due to the classified nature of the briefing, attendance was limited to those companies 
with Defence Industry Security Program membership, and personnel holding the 
appropriate security clearance. 

Companies were selected based on their potential to contribute to one or more of the 
AUKUS Advanced Capabilities.
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.

Selected companies were invited to send one representative.
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, at that 
time, for the Government of the day.
If pressed: Will the United States base or test hypersonic missiles in Australia as part of AUKUS 
Advanced Capabilities? 

Defence has large land-based weapons test ranges that offer size, low population 
density in remote and secure environments. 

These test ranges can be of interest to close partners as they can offer safe 
testing and development of defence capabilities. 

Access to such areas is by agreement with the Government, and is only granted 
when the proposed activity aligns with Australia’s interests. 
Supporting Information
Questions on Notice 
Budget Estimates: 30 May 2023
 QoN 24, AUKUS external parties, Senator James Paterson (Liberal, Victoria) asked about 
the external parties that Australian officials have met in relation to AUKUS Advanced 
Capabilities, and the meaning of the dedicated senior level focus for AUKUS Advanced 
Capabilities mentioned in the Defence Strategic Review. 
Budget Estimates: 9 November 2022
QoN 26, AUKUS workforce allocations, Senator James Paterson (Liberal, Victoria) asked 
about the number of APS officers and consultants working on AUKUS Advanced 
Capabilities.
QoN 45, AUKUS, Senator Jim Molan (Liberal, New South Wales) asked about the 
continuation of AUKUS under the Albanese Government - governance, objectives and 
resourcing.
Freedom of Information (FOI) Requests 
 In July 2023, an individual sought access under FOI to documentation relating to plans 
or discussions about how the AUKUS alliance might proceed in the event that 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. 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
Recent Ministerial Comments 
 On 24 April 2023, at a press conference following the release of the Defence Strategic 
Review, the Deputy Prime Minister stated it was a priority “to provide for a much 
quicker transition of new, innovative technologies into service… particularly with 
respect to operationalising pillar two of the AUKUS arrangement.”
 On 9 February 2023, the Deputy Prime Minister delivered a speech on securing 
Australia’s sovereignty which included references to AUKUS promoting and 
strengthening our sovereignty.
 On 14 November 2022, the Deputy Prime Minister delivered an address to the Sydney 
Institute which reinforced that AUKUS was about building Australian capability to 
expand our strategic space, which “gives Australia more agency and sovereignty… to 
determine our future.” 
Relevant Media Reporting
 In The Australian on 10 August 2023, Afp reported that the United States was 
considering using Australia as a testing ground for hypersonic weapons under the 
AUKUS pact. 
 In ABC News on 27 July 2023, Nick Sas, Emily Clark and Tim Swanston reported on 
comments by the United States Secretary of State that the “door is open” for New 
Zealand to join AUKUS. In response, the New Zealand Foreign Minister noted the 
nation was exploring opportunities in relation to AUKUS Advanced Capabilities. 
 In The Guardian on 20 July 2023, Daniel Hurst summarised recent developments in 
legislation before the United States Congress to ease export controls on AUKUS-related 
military equipment. 
 In the Asia News Network on 10 May 2023, Muhammad Faizal Bin Abdul Rahman ran 
an opinion piece encouraging greater exploration of the benefits and risks of AUKUS 
Advanced Capabilities for Southeast Asia. 
 In the Canadian Broadcasting Cooperation (and a large number of international media 
outlets) on 9 May 2023, Murray Brewster reported on the Canadian defence minister’s 
comments that Canada was highly interested furthering cooperation with close allies 
on advanced technologies. 
 On 28 April 2023, a number of Australian and international media outlets amplified the 
Defence media release on the artificial intelligence trial in the United Kingdom.
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
Division: 
Strategy, Policy, and Industry Group
PDR No: 
SB23-000722
Prepared by:
Cleared by Division Head: 
Annie Brusic
Stephen Moore
Acting Assistant Secretary AUKUS Initiatives,  First Assistant Secretary AUKUS Advanced 
AUKUS Advanced Capabilities Division
Capabilities
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 21 August 2023
Date: 21 August 2023 
Consultation: 
Jacinta Hudson
Date: 18 August 2023 
Acting Assistant Secretary Defence Industry 
Mob:  
s22
Ph: 
s47E(d)
Defence Industry Policy Division
Roland Walker
Date: 18 August 2023 
Acting Assistant Secretary Defence 
Capability and Innovation 
Mob:  
s22
Ph: 
s47E(d)
Advanced Strategic Capabilities Accelerator
Alexandra Stevenson
Date: 18 August 2023 
Assistant Secretary Quad and AUKUS Policy 
Mob:  
s22
Ph: 
s47E(d)
Department of Prime Minister and Cabinet
Cleared by Defence Strategic Review Task 
Force:
s47E(d)
Date: 18 August 2023
Defence Strategic Review Policy and 
Engagement Division
Cleared by Deputy Secretary:
Hugh Jeffrey
Date: 1 September 2023 
Deputy Secretary, Strategy, Policy, and 
Industry 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
Questions on notice referred to within the brief:
2023-24 Budget Estimates
Senator James Patterson
Question Number: 24
Date question was tabled: 14 July 2023
Question
Senator PATERSON: Would you consider providing on notice, in an appropriate way, the 
external parties that Australian officials have met with in relation to these AUKUS 2 priorities? 
I will let you consider what you can provide on notice. Moving on, in the DSR there was a 
sentence in relation to advanced capabilities: 'This requires 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.
2022-23 October Budget Estimates
Senator James P
Patterson
Question Number: 26
Date question was tabled: 16 December 2022
Question
Senator PATERSON: How many departmental staff have been allocated to work on AUKUS?
Vice Adm. Mead: I will speak specifically on the Nuclear Powered Submarine Program. As you 
know, there is another pillar, pillar 2, on advanced capabilities.
Senator PATERSON: I am interested in those answers, but I am also interested in the other 
non-submarine components of AUKUS. You answer, but then anyone can add to that, please.
Vice Adm. Mead: In the submarine area there are currently 343 people associated with the 
task force. They are not entirely Department of Defence people; we have a number of 
cross-agency. It's a whole-of-government task force from Attorney-General's Department, 
Prime Minister and Cabinet, Department of Foreign Affairs and Trade, Education and also the 
other nuclear agencies: the Australian Nuclear Science and Technology Organisation; the 
Australian regulatory organisation, ARPANSA; the waste organisation; and a number of other 
government bodies.
Senator PATERSON: Thank you. Does anyone have an answer on the total?
Mr Jeffrey: The Strategy, Policy and Industry Group has carriage of AUKUS Pillar 2—that is, 
advanced capabilities—in the Department of Defence. The specific numbers, though, are 
more difficult to isolate because there's not a specific task force. You have the whole group 
and, in addition to me, AUKUS sits within Strategic Policy Division, and within that there's a 
branch that has specific carriage of ensuring that we're preparing for trilateral meetings of 
the advanced capabilities group. But, of course, advanced capabilities cut across a whole 
range of different areas in the Department of Defence. So, in taking this work forward, 
Senator, I engage very closely with the vice chiefs of defence forces group, I engage closely 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
with the Chief Defence Scientist and her group and, indeed, I engage with all the capability 
managers who would take these items forward.
Senator PATERSON: Thank you for that context. I appreciate it's not a simple answer. Perhaps 
you could come back on notice with your best estimate of the Average Staffing Level working 
on it.
Mr Jeffrey: I'd be happy to do so.
Senator PATERSON: Thank you. I'm also interested—and perhaps taking this on notice is 
going to be a more efficient use of our time—in the number of consultants working on it who 
are external to APS, who've been brought in.
Mr Jeffrey: With respect to pillar 2, we have not brought in any consultants at this point.
Senator PATERSON: Okay.
Vice Adm. Mead: Senator, we can get you a list of consultants that we have engaged with 
over the past 13 months.
Answer
The AUKUS Initiatives Branch, which engages closely with stakeholders across the Defence 
portfolio and Government to identify and implement trilaterally-agreed advanced capabilities 
lines of effort, has an Average Staffing Level allocation of 14 ongoing Australian Public Service 
officers. Support for advanced capabilities lines of effort from capability managers and other 
Defence stakeholders, including the Defence Science and Technology Group and Vice Chief of 
the Defence Force Group, is provided utilising existing resources.
Consultants the Nuclear Powered Submarine Taskforce has engaged with over the past 
13 months:

Bectech

Brinny Deep LLC

Burdeshaw Associates LLC 

Delen Consulting Pty Ltd

Deloitte Consulting Pty Ltd

Elysium

Frazer-Nash Consultancy

Gibbs & Cox (Australia) Pty Ltd

Gilding Consulting

Human Performance Engineering

Power Initiatives

Nous Group Pty Ltd

Neil Orme Consulting

PriceWaterhouseCoopers Consulting

Siyeva Consulting

Trautman International Services, LL

The Boston Consulting Group Pty Ltd

The Rand Corporation (Australia)

Wilson Psychology Pty Ltd
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
2022-23 October Budget Estimates
Senator Jim Molan
Question Number: 45
Date question was tabled: 16 December 2022
Question 
1. What involvement has the Department of Defence (Department) had in the ongoing 
governance of Australia’s relationship and contribution to AUKUS?
a. How many Departmental staff have been allocated to work on AUKUS?
b. Have additional staff been hired to work on AUKUS, or is it staffed by existing 
workforce?
c. What level of external (non-APS) consultant and other resourcing has been 
procured by the Department to support AUKUS?
d. What costs have been associated with the Department’s involvement in AUKUS 
governance, outcomes and other priorities?
e. How many meetings, workshops and other engagements have been attended by 
Departmental staff (APS and external consultants) in relation to AUKUS?
2. Which AUKUS priorities, tasks, ongoing actions and other commitments have 
Departmental staff and consultants been involved with, and what have been the related 
costs and expenses (including travel and related expenses) involved? Please provide 
details
3. Please provide details of which trilateral joint steering groups and other working groups 
and committees Departmental staff have been involved with, including whether as 
members or observers.
4. Have there been any changes to AUKUS terms of reference or agreement, or any of the 
terms of reference or charters or other governing documents for any of the trilateral joint 
steering groups or other working groups implementing AUKUS?
a. Please provide details
b. Why have changes been made, and were changes prompted by Australia, the 
United Kingdom or the United States?
c. What change of personnel has occurred since 22 May 2022 associated with any 
working groups?
d. What consideration has been given to the worsening strategic environment 
Australia faces?
5. Have there been any new AUKUS steering groups or working groups established since 22 
May 2022?
6. Have any AUKUS steering groups or working groups been discontinued since 22 May 
2022?
7. Have any of the outcomes or objectives of AUKUS been changed or removed, or new 
outcomes or objectives added?
a. Please provide details
b. Why have changes been made, and were changes prompted by Australia, the 
United Kingdom or the United States?
c. What consideration has been given to the worsening strategic environment 
Australia faces?
8. What role is the Department playing in advising on or assisting Australia and its AUKUS 
partners to ensure that regulations within the United States, United Kingdom and 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
Australia do not hinder the implementation of AUKUS priorities and outcomes (eg. 
International Traffic in Arms Regulations and export control regulations in the United 
States)? Please provide details.
9. Are there any risk registers or reports on the risks and constraints that have been 
identified for any aspects of implementing AUKUS, if yes, have any of the AUKUS 
workstreams/steering groups/working groups identified any risks or barriers to progress 
(eg. risks of unanticipated costs and timing delays to achieve outcomes)? Please provide 
details
10. Has the Secretary been briefed by the Department, or by the Department of Prime 
Minister & Cabinet or the Department of Foreign Affairs & Trade, on any aspect of AUKUS 
since 22 May 2022?
a. Have any material risks been identified in any such briefs?
b. What advice or recommendations have been provided to address those risks?
c. Please provide details
11. Has the Minister for Defence been briefed on any of the foregoing relating to AUKUS, by 
the Department, or by the Prime Minister, the Minister for Foreign Affairs (or any other 
Minister of the Government)?
a. Have any material risks been identified in any such briefs?
b. What advice or recommendations have been provided to address those risks?
c. Please provide details
12. What briefs and correspondence have been sent by, or received by, the Minister for 
Defence, the Secretary, or the Department from government/administration Ministers, 
Secretaries or other senior officials from the United States or United Kingdom? Please 
provide details.
13. Please provide details of any reports or briefings received by the Minister for Defence, or 
the Secretary, relating to progress of AUKUS initiatives, and if any delays or additional 
costs associated with progress have been identified.
14. Given the rapidly worsening strategic environment Australia is facing, what is the 
Department’s strategic plan to secure Australia, its people and its interests, through 
AUKUS, and other initiatives? Please provide details.
Answer
There are two pillars of the AUKUS partnership – nuclear-powered submarines and advanced 
capabilities – with separate governance arrangements both within the Department of 
Defence and trilaterally. Classified Memorandum of Understanding outline governance and 
objectives for each pillar. These Memorandums of Understanding have not changed. 
The Nuclear Powered Submarine Joint Steering Group has met on ten occasions (five in 
person; five virtual). In addition to the Joint Steering Group, nine working groups have been 
established covering strategy and policy; workforce and training; program and trilateral 
contributions; capability requirements and interoperability; stewardship; security; industrial 
base; technical base; non-proliferation and safeguards and communications. These working 
groups meet regularly to identify the optimal pathway for Australia to acquire nuclear-
powered submarines.
The Nuclear Powered Submarine Taskforce works closely with our AUKUS partners, 
Australian nuclear agencies and stakeholders across the Defence portfolio and Government. 
The Taskforce includes secondees from the Departments of the Prime Minister and Cabinet; 
Foreign Affairs and Trade; Attorney Generals and Education. In addition, there are secondees 
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000722
Last updated: 6 September 2023
  
  AUKUS Advanced Capabilities
Key witnesses: Hugh Jeffrey; Stephen Moore; Vice Admiral Johnathan Mead.
from the Australian Security Intelligence Organisation, Australian Nuclear Science and 
Technology Organisation, Australian Radiation Protection and Nuclear Safety Agency, and the 
Australian Radioactive Waste Agency. As at 7 November 2022, the Taskforce had a workforce 
that included 202 Australian Public Service (APS) officers and 73 Australian Defence Force 
members. The Taskforce has also engaged experts to assist with analysis of the optimal 
pathway. 
The AUKUS Initiatives Branch within the Strategy, Policy, and Industry Group coordinates 
Australia’s involvement in the Advanced Capabilities Pillar of AUKUS. This includes working 
closely with stakeholders across the Defence portfolio and Government to identify and 
implement trilaterally-agreed lines of effort. The AUKUS Initiatives Branch consists of 14 
ongoing APS officers. Support from capability managers and other Defence stakeholders, 
including the Defence Science and Technology Group and Vice Chief of the Defence Group, is 
provided utilising existing resources.
The AUKUS Advanced Capabilities Joint Steering Group has met on nine occasions 
(five in-person; four virtual). In addition to the Joint Steering Group, eight working groups 
have been established covering each of the six capability areas of focus (hypersonic and 
counter-hypersonic, advanced cyber, undersea warfare, electronic warfare, artificial 
intelligence and autonomy, and quantum technologies) and two enabling areas (information 
sharing and innovation). These working groups meet regularly to progress lines of effort.
Defence routinely briefs Ministers, Government and senior departmental officials on both 
pillars of AUKUS, including regarding risks and opportunities. These briefs contain sensitive 
material that may adversely impact Defence, if released publicly.
Prepared By:
Cleared By: 
Name: Annie Brusic
Name: Hugh Jeffrey
Position: Acting Assistant Secretary AUKUS Initiatives
Position: Deputy Secretary
Division: AUKUS Advanced Capabilities
Group: Strategy, Policy, and Industry
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.
Guided Weapons and Explosive Ordnance Enterprise
Handling Note: 

Air Marshal Leon Phillips, Chief of Guided Weapons and Explosive Ordnance Group to 
lead on the Guided Weapons and Explosive Ordnance Enterprise.

Service Chiefs to lead on questions relating to Service-specific guided weapons and 
explosive ordnance acquisitions.
Key Messages

The Defence Strategic Review 2023 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. 

The ADF must be able to hold an adversary at risk further from our shores.

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.

We are confident we can begin manufacturing missiles in Australia by 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 Systems.
Talking Points
Guided Weapons and Explosive Ordnance Enterprise 

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, including s47C
 
; 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
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, include 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.
Investment in the Guided Weapons and Explosive Ordnance Enterprise

The Government has committed $2.5 billion over the forward estimates to accelerate 
the Guided Weapons and Explosive Ordnance Enterprise, an increase of more than 
$1.5 billion. 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 previous 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, but no additional budget allocation was made.

Defence has been directed by Government 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.

$1,138.4 million (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 

The Defence Strategic Review recommends options for increasing guided weapons and 
explosive ordnance stocks, including by establishing domestic manufacturing. The 
Government has agreed to this recommendation with Defence to provide options by 
Quarter 2, 2024. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.

Defence is currently 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.

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, with an initial focus on potential co-production of Guided 
Multiple Launch Rocket Systems by 2025.
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.

The principals agreed to deepen 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 potential co-production of 
Guided Multiple Launch Rocket Systems by 2025. 

The principals reaffirmed their commitment to:
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.

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 SM-2 missiles.

Chief of Guided Weapons and Explosive Ordnance has since travelled to the United 
States and engaged United States Government and industry partners to progress these 
commitments.
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: 9 November 2022
 In  QoN 5, Guided weapons contract, Senator Nita Green (Queensland) asked for the 
timeline around deed signature for Guided Weapons and Explosive Ordnance 
Enterprise Strategic Partners. 
 In  QoN 43, Missiles, former  Senator  Jim Molan (New South Wales) asked a series of 
questions about missiles, capability and missile production in Australia.  
 In  QoN 50, Munitions stockpile, Senator David Van (Victoria) asked about munitions 
stockpiles. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.
 In  QoN 101, Weapons Stock Holdings, Senator  Linda White (Victoria) asked about 
weapon stock holdings.
Freedom of Information (FOI) Requests 
 No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments 
 On 21 August 2023 the Deputy Prime Minister and Minister for Defence Industry issued 
a joint media releaseŽŶAustralia investing in powerful new high-tech missiles.
 On 19 August 2023 the Deputy Prime Minister and Minister for Defence Industry issued 
a joint media releaseŽŶAustralia accelerating long-range precision strike capability 
acquisition.
 On 19 August 2023 the Deputy Prime Minister and Minister for Foreign Affairs issued a 
joint media releaseŽŶƚŚĞAustralia-United States Ministerial Consultations 2023.
Relevant Media Reporting 
 Australian media has reported extensively on the acquisitions of Tomahawk and High 
Mobility Artillery Rocket Systems following the recent media releases.
 Australian Manufacturing 22 Aug 23 Australia announces $1.7 billion missiles 
acquisition, considers options for domestic manufacturing
The Australian government has made a $1.7 billion investment to equip the Australian 
Defence Force with some of the most powerful and technologically advanced weapons 
systems in the service’s history.
 The West Australian 21 Aug 23 Australia to spend $1.3bn on high-tech missiles
 Australian and foreign media has reported extensively on the outcomes from the 
July 2023 Australia-United States Ministerial Consultations 2023.
 The Sydney Morning Herald 29 Jul 23 Missile program takes off
 The Australian 29 Jul 23 US support aimed at guided missiles
 The Australian 29 Jul 23 AUSMIN reflects powerful ties
 Under the weapons deal, finalised on Friday between Defence Minister Richard Marles 
and his US counterpart, Lloyd Austin, US missiles will be manufactured, maintained, 
repaired and stored in Australia, for use in any potential Indo-Pacific conflict.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.
Division:
Capability Development Division
PDR No: 
SB23-000723
Prepared by:
Cleared by Division Head: 
s47E(d)
Andrew Byrne
Executive Director 
First Assistant Secretary 
Guided Weapons and Explosive Ordnance 
Guided Weapons and Explosive Ordnance, 
Strategy & Plans
Capability Development Division
Mob:  
s22
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 22 August 2023
Date: 29 August 2023 
Consultation: Delivery Division
Air Vice-Marshal Gerry van Leeuwen
Date: 29 August 2023 
Head Guided Weapons and Explosive 
Mob:  
s22
 
Ph: 
s47E(d)
Ordnance
Cleared by DSR:
Date: 21 August 2023
Amy Hawkins, First Assistant Secretary DSR Policy and 
Engagement
Cleared by CFO:
Ariana Kornek
Date: 24 August 2023
Assistant Secretary Finance – Army, Defence Finance 
Group.
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 5 September 2023 
Air Marshal Leon Phillips
Chief Guided Weapons and Explosive Ordnance, Guided 
Weapons and Explosive Ordnance Group
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.
Questions on notice referred to within the brief:
2022-23 October Budget Estimates
Senator Nita Green
Question Number: 5
Date question was tabled: 16 December 2022
Question
Senator GREEN: I'll come back to that in a moment. I have some questions on that work. But 
to be clear around the time though, the announcement around the strategic partners 
happened on 5 April 2022, is that right?
Mr Byrne: Correct.
Senator GREEN: What has happened with regard to the strategic partners so far? Has a 
contract been signed?
Major Gen. Bottrell: Initially we signed a deed which was essentially a cooperative 
development phase. That allowed other things to occur, firstly for us to start a number of 
work packages. Andrew can talk to those work packages, which talk to future manufacturing 
options, so the work to analyse what is feasible. Essentially, it needed to be right for us. It 
needed to be right for what the US government needed. It needed to be right for industry as 
well. That has been a complex undertaking. That has been done under that cooperative 
development phase and will continue once our heads of agreement contract agreement is 
signed.
Senator GREEN: When was the deed signed?
Major Gen. Bottrell: I would have to take that on notice. I may have the detail, otherwise I 
will have to come back to you with that deed. Subsequent to that we are working on a 
strategic partners heads of agreement, which we are working to have signed by late 
November or early December this year. 
Answer
The Collaborative Development Process Deeds with Raytheon Australia and Lockheed Martin 
Australia were signed on 8 April 2022.
2022-23 October Budget Estimates
Senator Jim Molan
Question Number: 43
Date question was tabled: 16 December 2022
Question
1. Has the Department of Defence been briefed on Australian Defence Force (ADF) missile 
and long-range strike capabilities? Have those briefings assessed the lethality and 
durability of missile munitions, and stock replacement? Has the Department been briefed 
on how long it would take to exhaust, and replace, our current missile stocks in a conflict 
scenario? What level of stock reproduction, and net production, is necessary to keep 
Australia defended? What is the plan to address these risks? Please provide details
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.
2. Has the Department been briefed on the supply chain and production capacity of the full 
cycle of missile delivery (manufacturing, chemical, mineral and fuel components, 
infrastructure)?
3. Has the Department been briefed on offshore, allied and other markets that our missile 
supply chains are dependent on? Have you been briefed on sovereign onshore 
production and supply chain industrial capacity, and its preparedness to sustain missile 
production in the event of conflict scenarios?
4. More specifically, has the Department been briefed on what manufacturing, chemical, 
mineral, and fuel component production and supply Australia's missile capability 
currently relies on, and what are the risks regional conflict scenarios and other scenarios 
(eg. sanctions, blockades and other trade disruptions) pose to availability of these 
components? What sovereign and onshore sources and production and supply options 
currently exist and could persist?
Answer
1. Yes. Details requested are classified.
2. Yes.
3. Yes.
4. Yes. Details of production and supply options are classified.
2022-23 October Budget Estimates
Senator David Van
Question Number: 50
Date question was tabled: 16 December 2022
Question
1. What is our projected or planned munitions stockpile in Australia. Do we have a 
projection of general armaments and how long it will last?
2. Has the department done any modelling to calculate how long these reserves will last 
for? If so, Can the department provide this modelling?
Answer
1. Defence monitors the strategic environment and assesses the requirements for 
munitions.
2. Yes. Outcomes of Departmental modelling are classified. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000723
Last updated: 5 September 2023
Guided Weapons and Explosive Ordnance Enterprise
Key witness: Air Marshal Leon Phillips; Service Chiefs.
2022-23 October Budget Estimates
Senator Linda White
Question Number: 101
Date question was tabled: 16 December 2022
Question
With respect to the Guided Weapons and Explosive Ordnance (GWEO) Enterprise announced 
by the former Government on 31 March 2021, Mr Dutton said that the then-Government 
would "ensure we have adequate supply of weapon stock holdings":
1. Does Defence assess that it currently has adequate supply of weapon stock holdings?
2. What additional stock holdings were secured by the former Government following the 
GWEO Enterprise announcement?
a. If additional stock were secured, when were those decisions taken, what funding was 
allocated and when were they announced?
3. Does Defence have any concerns with respect to the storage and maintenance facilities 
for:
a. guided weapons stock holdings
b. explosive ordnance stock holdings
4. Did the former Government approve the construction any storage facilities for guided 
weapons and explosive ordnance following its 31 March 2021 announcement?
a. If yes, were the approved facilities sufficient for the storage of known stock holding and 
on-order guided weapons and ordnance?
Answer
1. Information about Defence’s weapon stockholdings is classified.
2. Stock is considered secured once orders are confirmed by the supplier. Since March 
2021, Defence has secured additional stock of BLU-111 Aerial Bomb, Advanced Anti-
Radiation Guided Missiles, and Hellfire Air to Ground Missiles.
a. In December 2021, the previous Government approved the acquisition of these 
additional stocks, as part of the approval for the acquisition of four priority weapons 
(BLU-111 Aerial Bomb, Mk-48 Heavy Weight Torpedoes, Advanced Anti-Radiation 
Guided Missile, and Hellfire Air to Ground Missiles). The funding allocation for the four 
priority weapons was $276.6 million. Government approval of these acquisitions was 
not publically announced.
3. a. and b. Defence has no current concerns about the capacity of the guided weapons and 
explosive ordnance (GWEO) storage network, which is sufficient for Defence’s existing 
GWEO inventory. However, the network will need to expand significantly over the coming 
years to accommodate a growing GWEO inventory. Defence is in the process of 
expanding the storage network now and is developing plans for further expansion.
4. No.
a. Not applicable. See response to question 4.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Air Marshal Leon Phillips
Position: Executive Director Guided Weapons and Explosive 
Position: Chief of Guided Weapons and Explosive 
Ordnance Strategy & Plans
Ordnance
Division: Capability Development Division
Group/Service: Guided Weapons and Explosive 
Phone: s22
Ordnance Group
Phone: s22
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
Advanced Strategic Capabilities Accelerator
Handling Note: Chief Defence Scientist, Professor Tanya Monro AC to lead. 
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. 

By remaining an independently branded division within Defence, the Advanced 
Strategic Capabilities Accelerator will be closely connected with Defence strategic 
priorities, integrate with military and acquisition experts and have access to 
corporate support functions to rapidly address Defence’s capability problems. 

The Advanced Strategic Capabilities Accelerator will take a strategically directed, 
mission-based approach to pull asymmetric innovations into capabilities that have 
identified transition pathways into acquisition. 

By the end of 2023, the Advanced Strategic Capabilities Accelerator will announce 
the first problem statements which will lead to initial missions. 

The Advanced Strategic Capabilities Accelerator has an Innovation Incubation 
Program, with the first call to industry released on 31 July 2023 to build a sovereign 
small uncrewed aerial system capability. 
Talking Points 

Australia is in an evolving and challenging strategic environment, made increasingly 
uncertain by rapid technological development.  

The Defence Strategic Review concluded that we need more support for innovation, 
faster acquisition and better links between Defence and industry to deliver the 
capabilities the ADF needs. 

To meet this challenge, we need to harness the Australian innovation system to deliver 
military capability advantages quickly, tangibly and enduringly. 

Defence must draw imaginative ideas and practical solutions from traditional and non-
traditional sources, from research organisations, start-ups and small businesses. 

The Advanced Strategic Capabilities Accelerator is taking a strategically directed, 
mission-based approach to pull asymmetric innovations into capabilities with identified 
transition pathways into acquisition.  
Prepared By: 
Cleared By:  
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 

This will accelerate the transition of innovation into capability solutions that are 
acquired by Defence, with an urgency driven by the deteriorating strategic 
environment. 

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. 

The Advanced Strategic Capabilities Accelerator will focus on asymmetric capabilities 
under Defence’s six innovation, science and technology priority areas. These are: 
directed energy, hypersonics, information warfare, long-range fires, quantum 
technology and trusted autonomy.  

Missions will align to the 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 established two other programs:  

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.  

The first call for submissions was released on 31 July 2023. 

An Emerging and Disruptive Technologies Program. This will support the 
monitoring, investigation and research of 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 of in-
train activities within the existing programs. This will ensure the existing Australian 
innovation ecosystem continues to build the sovereign capabilities required to deliver 
solutions addressing Defence's capability priorities. 
 
 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
Missions 

A mission focus will provide clear priorities and demand to industry.  

In November 2023, the Advanced Strategic Capabilites Accelerator roadshow will take 
place for in-person discussions with industry and other stakeholders.  

By the end of 2023, the Advanced Strategic Capabilities Accelerator will announce its 
initial mission topics.  
Innovation Incubation Program 

On 31 July 2023, the Advanced Strategic Capabilities Accelerator invited submissions 
for the first activity to be delivered under the Innovation Incubation Program. 

Small uncrewed aerial systems were the first area of focus for the program.  

The Innovation Incubation Program is focused on uncovering opportunities to rapidly 
adapt, test and acquire new technology for military purposes, addressing capability 
priorities for the ADF. 
Existing Defence Innovation Programs  
˜
The Defence Innovation Hub and the Next Generation Technologies Fund ceased 
operating on 1 July 2023. 
˜
Existing activities funded under the Defence Innovation Hub and Next Generation 
Technologies Fund have transitioned into the Advanced Strategic Capabilities 
Accelerator. 
˜
Both programs have existing contracts and contracts currently in negotiation. These will 
be managed in accordance with agreed contract terms. Defence has advised the 
affected stakeholders. 
Link to the Defence Strategic Review  

The Government has identified the capacity to rapidly translate disruptive new 
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 the next decade to establish the Advanced 
Strategic Capabilities Accelerator as a key element of the Defence innovation, science 
and technology program.  

By remaining in Defence, the Advanced Strategic Capabilities Accelerator is 
closely connected to the Defence Strategic Priorities and corporate support 
functions. 

Close integration to the Australian Defence Force 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 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
will include a review and consideration of its operating model within Defence in 
2027-28.   
Intersection with AUKUS 

The Advanced Strategic Capabilities Accelerator supports the outcomes of the Defence 
Strategic Review, and Australia’s contribution to the AUKUS partnership, by helping 
accelerate discrete AUKUS Advanced Capabilities lines of effort. 

The Advanced Strategic Capabilities Accelerator 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.  
Budget 
˜
The government is investing $3.4 billion over the decade for the Advanced Strategic 
Capabilities Accelerator.   
˜
Former Defence 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.  
˜
Investment in innovation, science and technology within Defence for the 2022-23 
Financial Year is 2.4 per cent of overall 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.   
˜
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. 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
Working with partners 
˜
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 then pull these innovations into capability solutions. 
˜
The Advanced Strategic Capabilities Accelerator will work closely with partner 
institutions such as the Defence and Security Accelerator (United Kingdom), the 
Defense Advanced Research Projects Agency (United States), and the Defense 
Innovation Unit (United States) to enable and accelerate capability development. 
˜
The establishment of the Advanced Strategic Capabilities Accelerator is an Australian 
approach for the Australian context, and suited to our unique security needs. 
Asymmetry 
˜
Asymmetric warfare refers to military actions that pit strength against weakness, at 
times in a non-traditional and unconventional manner, against which an adversary may 
have no effective response.  
˜
In relation to cost imposition or denial, asymmetric refers to the application of 
dissimilar capabilities, tactics or strategies to circumvent an opponent’s strengths, 
causing them to suffer disproportional cost in time, space or material. 
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  
Senate: 28 September 2022 
˜
QoN 820, Advanced Strategic Research Agency pre-election commitment, Senator the 
Hon Simon Birmingham (Liberal, South Australia) asked for an update on the progress 
on establishing an Advanced Strategic Research Agency. 
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 2 priorities.  
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
˜
QoN 80, Prioritising Australian industry, Senator Gerard Rennick (Liberal, Queensland) 
asked for and 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.
Freedom of Information (FOI) Requests  
˜
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. 
˜
The request was refused under section 24A of the FOI Act due to no documents 
existing within scope (requests may be refused if documents cannot be found, do 
not exist or have not been received). 
Recent Ministerial Comments  
˜
On 14 September 2023, the Minister for Defence Industry addressed the Australian 
Strategic Policy Institute conference on ‘Disruption and Deterrence’, which included an 
update on the Advanced Strategic Capabilities Accelerator and a Question and Answers 
session where it was discussed how ASCA demonstrates a commitment to cultural 
change in the way Defence will approach procurement into the future – Address to the 
2023 ASPI Conference 'Disruption and Deterrence' | Defence Ministers Question and 
Answers session – Q&A Session, Australian Strategic Policy Institute Conference | 
Defence Ministers 
˜
On 1 July 2023, the Minister for Defence Industry announced the launch of the 
Advanced Strategic Capabilities Accelerator – The Advanced Strategic Capabilities 
Accelerator is up and running to drive Defence innovation  
˜
On 28 April 2023the Government announced the most significant reshaping of 
Defence innovation in decades to boost national security and follow up interviews: 
DPM Interview ABC News Radio (+52 stations), MINDI Interview with Andy Park, ABC 
Radio National Drive, MINDI - ABC News Radio - The Drum,DPM Radio Interview, ABC 
AMand Sky News - DPM News Conference 
Relevant Media Reporting   
˜
On 11 October 2023, Defence Connect, Prof. Emily Hilder (Interim Head of the 
Advanced Strategic Capabilities Accelerator) talks about how the Advanced Strategic 
Capabilities Accelerator is facilitating innovation in Defence and the Commonwealth’s 
priority areas for defence technological transformation. – PODCAST: Facilitating 
defence industry innovation, with Professor Emily Hilder - Defence Connect 
˜
On 10 October 2023, InnovationAus, James Riley, reports on the release of policy and 
position papers from some of Australia’s leading thinkers on innovation and research 
translation, including Prof. Emily Hilder (Interim Head Advanced Strategic Capabilities 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
Accelerator)  – Capability Papers: Bill Shorten to open LIVE program 
(innovationaus.com) 
˜
On 02 October 2023, The Canberra Times, Miah Hammond-Errey, asks if the Advanced 
Strategic Capabilities Accelerator’s aim is at odds with Defence and public Service 
culture – Miah Hammond-Errey | Is Australia's defence force, and the public service, 
too conservative? | The Canberra Times | Canberra, ACT 
˜
On 27 September 2023, the Australian Strategic Policy Institute, Grant Lewis, discussed 
the challenges with achieving true innovation and the risks that are required – Defence 
innovation entails accepting failure | The Strategist (aspistrategist.org.au) 
˜
There has been widespread media coverage on Electro Optic Systems demonstration of 
the ‘laser drone killer’ weapon system. Selected articles from the past 90 days below: 
˜
07 September 2023, Asia Pacific Defence Reporter – EOS demos counter-drone 
capability - APDR (asiapacificdefencereporter.com) 
˜
06 September 2023, Australian Defence Magazine – EOS demonstrates counter-
drone capability - Australian Defence Magazine 
˜
05 September 2023, AU Manufacturing, Peter Roberts – EOS demonstrates its 
laser 'drone killer' weapon - Australian Manufacturing Forum 
(aumanufacturing.com.au) 
˜
There has been widespread media coverage on the Advanced Strategic Capabilities 
Accelerator release of a Request for Information for sovereign uncrewed aerial 
systems. Selected articles from the past 90 days below: 
˜
05 September 2023, The North West Star, John Hanscombe – The Echidna: 
Persistence pays off as the big one is bagged | The North West Star | Mt Isa, 
QLD 
˜
01 September 2023, Defence Technology Review, Ian Bostock – Defence seeks 
sovereign small UAS capability (streem.com.au) 
˜
10 August 2023, AusManufacturing.com.au, Peter Roberts –  Defence calls for 
high volume local drone production 
˜
On 04 September 2023, AU Manufacturing noted the roles of Head Advanced Strategic 
Capabilities Accelerator and the Assistant Secretary Capability Transition – Advanced 
Strategic Capabilities Accelerator were being recruited: Defence innovation accelerator 
says - find me a leader to challenge the status quo 
˜
On 02 September 2023, the ABC reported on directed-energy weapon testing, a focus 
area for AUKUS Pillar II and Advanced Strategic Capabilities Accelerator: Drone-killing 
laser gives glimpse into future AUKUS projects 
˜
On 24 August 2023, Australian Strategic Policy Institute discussed the opportunities for 
the Advanced Strategic Capabilities Accelerator and challenges with previous 
innovation programs: Accelerating defence innovation into ADF service 
Prepared By: 
Cleared By:  
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
˜
On 18 August 2023, Australian Defence Magazine, published that Defence wants new 
capabilities to operate and control the electromagnetic spectrum as part of the 
Modernisation of Maritime Electronic Warfare project. The article mentions the 
Advanced Strategic Capabilities Accelerator will help keep the technology at the cutting 
edge  – Defence looks to modernise maritime electronic warfare capabilities - 
Australian Defence Magazine 
˜
On 18 August 2023, in The Australian Financial Review, Alexandra Cain, wrote that the 
Advanced Strategic Capabilities Accelerator was different to the United States Defense 
Advanced Research Projects Agency in that it’s an accelerator, not a research agency. 
Defence tech companies DefendTex and Quantx are selling new devices to allied 
defence forces (afr.com) 
 
Division: 
Advanced Strategic Capabilities Accelerator  
PDR No:  
SB23-000751 
Prepared by: 
Cleared by Division Head:  
Dr Clare Murphy 
Professor Emily Hilder 
Assistant Secretary 
Interim Head 
Advanced Strategic Capabilities Accelerator  
Advanced Strategic Capabilities Accelerator 
Mob:  
s22
 
Ph: 
s47E(d)
 
Mob:  
s22
 
Ph: 
s47E(d)
 
Date: 29 September 2023  
Date: 11 October 2023 
Consultation:   
 
Strategic Industry & Policy 
Date: 4 September 2023 
Stephen Moore 
Mob:  
s22
 
Ph: 
s47E(d)
 
First Assistant Secretary  
 
AUKUS Advanced Capabilities   
Cleared by DSR: 
Date: 4 September 2023 
Mr Ciril Karo 
First Assistant Secretary  
Implementation, Defence Strategic Review 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 12 October 2023   
Professor Tanya Monro AC 
Chief Defence Scientist 
Defence Science and Technology Group  
 
 
 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
Questions on notice referred to within the brief: 
 
Senate Estimates 
Senator James Paterson  
Question Number: 24 
Date question was tabled: 30 May 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. 
 
Senate Estimates 
Senator Gerard Rennick 
Question Number: 80 
Date question was tabled: 30 May 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” 
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?  
 
 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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Supplementary Budget Estimates October 2023  
PDR No: SB23-000751  
Last updated: 18 October 2023 
Advanced Strategic Capabilities Accelerator 
Key witness: Professor Tanya Monro AC 
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.  
 
Senate  
Senator the Hon Simon Birmingham 
Question Number: 820 
Date question was tabled: 28 September 2022 
 
Question 
1. What progress has been made on Labor’s pre-election commitment to establishing an 
Advanced Strategic Research Agency to fund research in future national security 
technology and technology sharing? 
2. How much ongoing funding is required to found Advanced Strategic Research Agency and 
to support its functions? 
3. Where will Advanced Strategic Research Agency be formed and what leadership, 
governance, oversight will it be subject to? 
4. What performance indicators and outcomes are sought and how will these be measured. 
5. What briefings and reports have been provided to Government, relating to these matters, 
since 22 May 2022, and please provide them. 
 
Answer 
Defence is currently developing options for Government’s consideration in how best to 
establish an Advanced Strategic Research Agency to meet strategic intent and maximise the 
opportunity to develop Australian leap-ahead military capability. Advice provided to 
Government is subject to Cabinet consideration and not able to be publically disclosed. 
 
 
Prepared By: 
Cleared By:  
 
Name: Dr Clare Murphy   
Name: Professor Emily Hilder 
Position: Assistant Secretary Defence Capability & Innovation 
Position: Interim Head Advanced Strategic Capabilities 
Division: Advanced Strategic Capabilities Accelerator  
Accelerator 
Phone:s47E(d)
 /s22
 
Group/Service: Defence Science & Technology Group 
Phone:  
s47E(d)
s22
 
 
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000742
Last updated: 09 October 2023
     2023-24 Portfolio Budget Statements
Key witness: Steven Groves
2023-24 Portfolio Budget Statements
Handling Note: Chief Finance Officer, Steven Groves, to lead.
Key Messages

The 2023-24 Portfolio Budget Statements outline key decisions related to 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, provisioning an 
additional $30 billion in the Contingency Reserve over the medium term.
Key Facts and Figures
 The Defence portfolio appropriation is split across three organisations: Defence, the 
Australian Signals Directorate and the Australian Submarines Agency. The breakdown 
of appropriation is in the following table:
Table 1: Defence and Australian Signals Directorate funding over the forward estimates 
($m)
2023-24
2024-25
2025-26
2026-27
Total 
Budget
Forward
Forward
Forward
Budget 
Estimate
Estimate
Estimate
Estimate
and FEs
Defence Funding
50,086.4
51,890.8
54,505.8
57,582.3 214,065.3
ASD Funding
2,472.4
2,523.3
2,304.4
2,233.7
9,533.8
Defence & ASD Funding ($m)
52,558.8
54,414.1
56,810.2
59,816.0 223,599.1
Percentage of GDP
2.04%
2.06%
2.04%
2.05%
Talking Points
 The Defence budget increases over the forward estimates in line with 
Government-agreed indexation.
 The Government will provide Defence with $50.1 billion in 2023-24 and $214.1 billion 
over the forward estimates.
 Defence has absorbed the cost of the Australian Submarine Agency over the forward 
estimates, including funding provided to other agencies to support the Australian 
Submarine Agency. Defence has also contributed $631.9 million over the forward 
estimates to whole-of-government savings initiatives. 
 Table 2 in the 2023-24 Portfolio Budget Statements (below) provides a breakdown of 
the variation to Defence funding since the October 2022-23 Budget. 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
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 October 2023
PDR No: SB23-000742
Last updated: 09 October 2023
     2023-24 Portfolio Budget Statements
Key witness: Steven Groves
Table 2: Defence 2023-24 Budget Measures
2023-24 
2024-25 
2025-26 
2026-27 
Budget 
Forw ard 
Forw ard 
Forw ard 
Estim ate 
Estim ate 
Estim ate 
Estim ate 
Total
Program
$m
$m
$m
$m
$m
Budget Measures
Paym ent Measures
Enhancing Pacif ic Engagement [a]
2.1
– – – – – 
Cyber Security - additional f unding
2.11
3.9 – – – 
3.9 
Advanced Strategic Capabilities Accelerator [b]
2.13
– – – – – 
Adequate Funding f or Oversight of  our Intelligence Agencies [c]
2.14
-0.3 -0.5 -0.6 -0.6 -2.1 
Extension of  the Def ence Industry Pathw ays Program [d]
2.15
– – – – – 
Nuclear-Pow ered Submarine Program - initial implementation [e]
Various
nf p
nf p
nf p
nf p
nfp
Of f ice of  the Special Investigator Operations and Dow nstream Impacts 
Funding – extension [c]
Various
-63.0 
-66.4 – – 
-129.4 
Securing a Unique and Critical Def ence Capability [f]
Various
nf p
nf p
nf p
nf p
nfp
Recognising the Australian Def ence Force’s Unique Service to the Nation [g]
Various
– – – – – 
Additional Assistance to Ukraine [h]
Various
– – – – – 
Total Departm ental Budget Measures
-59.4 
-66.9 
-0.6 
-0.6 
-127.6 
Other Departm ental Budget Adjustm ents
Operation ACCORDION [i]
1.2
117.1 
-0.0 – – 
117.1 
Operation RESOLUTE
1.3
77.5 – – – 
77.5 
Transf er of  projects to the Australian Signals Directorate
2.9
-158.2
-224.7
-260.2
-120.7
-763.8
Savings f rom External Labour, and savings f rom Advertising, Travel and 
Legal Expenses
Various
-154.3 -158.8 -163.7 -155.1 -631.9
Foreign Exchange
Various
491.3 541.4 528.9 503.7 
2,065.4 
Increased support f or the Jaw un Program [j]
Various
-0.1 
-0.1 – – 
-0.2 
Other Budget Adjustments [k]
Various
nf p
nf p
nf p
nf p
nfp
Other Adm inistered Budget Adjustm ents
Def ence Home Ow nership Assistance Scheme
2.22
17.3 26.8 39.1 53.8 
137.1 
Total Other Departm ental Budget Adjustm ents
373.3 157.7 105.0 227.9 863.9 
Total Other Adm inistered Budget Adjustm ents
17.3 
26.8 
39.1 
53.8 
137.1 
Total Other Budget Adjustm ents
390.6
184.6
144.1
281.7
1,001.0
Total Departm ental Funding
313.9
90.9
104.4
227.3
736.4
Total Adm inistered Funding
17.3 26.8 39.1 53.8 
137.1 
Total Defence Funding
331.2
117.7
143.5
281.1
873.4
Notes
a. This measure provides $923.9 million over the period 2023-24 to 2026-27 w hich is being absorbed by Def ence.
b. This measure provides $748.4 million over the period 2023-24 to 2026-27 w hich is being absorbed by Def ence.
c. This measure is a transf er to the Attorney-General's Portf olio.
d. This measure provides $11.4 million over the period 2023-24 to 2025-26 w hich is being absorbed by Def ence.
e. This measure is a transf er to various agencies and is not f or publication (nf p) due to commercial sensitivities.
f . This measure is a transf er to the Department of  Finance and is not f or publication (nf p) due to commercial sensitivities.
g. This measure provides $397.4 million over the period 2023-24 to 2024-25 w hich is being absorbed by Def ence.
h. This measure provides $189.6 million over the period 2022-23 to 2023-24 w hich is being absorbed by Def ence.
i. Budget estimates show n as 0.0 are amounts greater than $0 but less than $50,000.
j. This is a transf er to the National Indigenous Australians Agency and the Australian Public Service Commission.
k. This budget adjustment is not f or publication (nf p) due to national security.
 Further information on Defence 2023-24 Budget measures are at Attachment A.
Background
Defence 2023-24 Budget Summary
 In 2023-24, planned Defence expenditure (exclusive of the Australian Signals 
Directorate) includes:

$17.7 billion (34.6 per cent of the Defence budget) for capability acquisition:

$12.4 billion for military equipment;

$4.2 billion for facilities and infrastructure;

$900 million for ICT; and

$200 million for other capital equipment (such as minor military equipment 
and other plant and equipment).
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
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 October 2023
PDR No: SB23-000742
Last updated: 09 October 2023
     2023-24 Portfolio Budget Statements
Key witness: Steven Groves

$15.4 billion (30.1 per cent of the Defence budget) for sustainment:

$10.7 billion for military capability sustainment;

$3.0 billion for facilities sustainment;

$1.6 billion for ICT sustainment; and

$100 million for other sustainment.

$14.9 billion (29.2 per cent of the Defence budget) for employees:

$12.2 billion for military employees;

$2.2 billion for civilian employees; and

$400 million for other employee costs (e.g. Comcare premiums and 
recruitment).

$2.9 billion (5.7 per cent of the Defence budget) for operating activities and 
services including business travel and consumable items.

$200 million for military operations.
Supporting Information
Questions on Notice

No QoNs asked. 
Freedom of Information (FOI) Requests

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments

On 9 May 2023, Defence portfolio Ministers released a statement about Government’s 
immediate investments to respond to the Defence Strategic Review.  

On 9 May 2023, the Deputy Prime Minister and Minister for Defence and the Minister 
for Defence Industry released a statement detailing further investments to support 
veterans and families, including $328.1 million invested into support measures. 
Relevant Media Reporting

Writing for The Guardian on 9 May 2023, Daniel Hurst published an article titled 
Federal budget squirrels away $30bn to lift defence funding over decade, reporting 
that Defence funding as a share of the economy is expected to grow from 2.04% now 
to 2.3% in a decade’s time. 

On 9 May 2023, in the Australian Financial Review, Andrew Tillett writes Submarine bill 
swells as defence spending shoots past $50b, detailing military spending revealed by 
budget papers.   
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
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 October 2023
PDR No: SB23-000742
Last updated: 09 October 2023
     2023-24 Portfolio Budget Statements
Key witness: Steven Groves
Division:
Budgets and Financial Services
PDR No: 
SB23-000742
Prepared by:
Cleared by Division Head:
Michael Cosgrove
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: 1 September 2023
Date: 5 September 2023
Consultation: NA
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 6 September 2023  
Graham Weber
Acting Chief Finance Officer
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
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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ATTACHMENT A
PBS 2023-24 Measures
Enhancing Pacific Engagement
This measure bolsters Australia’s competitiveness, security and relationships with the Pacific 
at a time of global uncertainty. Defence’s contribution to this measure will be met from 
within Defence’s existing resources. This comprises:
x
Infrastructure Supplement for the maintenance and sustainment of Pacific 
security infrastructure projects largely impacted by COVID-19 border restrictions 
and global supply chain disruptions.
x
Pacific Maritime Security Program Supplement including ongoing support for 
ongoing maintenance and sustainment of the pacific maritime capability.
x
Support for Regional Defence Forces to reinforce regional partnerships secure 
access and develop sovereign air transport and surveillance capabilities within the 
Pacific. This also includes the training of Pacific Defence force personnel to 
support their plans for growth, recruitment and training.
Cyber Security – additional funding
This measure provides $3.9 million of new funding in 2023-24 to support the transition out of 
the Cyber Hubs program. This funding is for the decommissioning of cyber hubs services and 
off-boarding client entities.
Advanced Strategic Capabilities Accelerator 
This measure provides $748.4 million over 2023-24 and the Forward Estimates period to 
2026-27 for the Advanced Strategic Capabilities Accelerator. This will establish a new 
research and development entity within Defence to fund pivotal research on breakthrough 
technologies for national security, bringing Australia in line with AUKUS partners.
The establishment of ASCA will significantly enhance Defence's ability to transition innovation 
into enhanced Defence capabilities at the urgency required by the strategic environment.
This measure will be funded by repurposing $591.0 million from the uncommitted 
components of the Defence Innovation Hub, the Next Generation Technology Fund and the 
Capability Acceleration Fund. A further $157.4 million will be absorbed from within Defence’s 
existing departmental resources.
Adequate Funding for Oversight of our Intelligence Agencies 
Defence to provide $2.1 million over 2023-24 and the Forward Estimates period to 2026-27 
to the Attorney-General’s Portfolio for oversight of intelligence agencies.

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Extension of the Defence Industry Pathways Program
Defence will absorb $11.4 million over three years to extend the Defence Industry Pathways 
Program within the shipbuilding sector of Western Australia.
The program is a 12 month skills development program through which 150 participants (50 
participants per year). It will support the pipeline of talent into the defence shipbuilding and 
sustainment industry by providing participants with a broad understanding of the sector, and 
a pathway leading to the skills required by Australia’s defence industry in the future.
Nuclear-Powered Submarine Program – initial implementation
Defence to provide funding to a range of agencies to support the delivery of Nuclear 
Powered Submarines. Estimates for this measure are not for publication due to commercial 
sensitivities.
Office of the Special Investigator Operations and Downstream Impacts Funding – extension
Defence to provide $129.4 million over 2023-24 and 2024-25 to the Attorney-General’s 
Portfolio to fund work of the Office of the Special Investigator’s investigation and prosecution 
of potential war crimes in Afghanistan.
s47E(d)
Recognising the Australian Defence Force’s Unique Service to the Nation
This measure provides $397.4 million over 2023-24 and 2024-25 for a Recruitment and 
Retention Package including:
x
$395.4 million over two years from 2023-24 to pilot a $50,000 continuation 
bonus to Australian Defence Force (ADF) members nearing the completion of the 
initial minimum period of service arrangements. Defence is funding this from 
within existing Departmental resources.
x
$2.0 million to undertake a housing feasibility review in 2023-24 to determine 
ways to reduce the housing burden on ADF members. Defence is funding the 
review from within its existing Departmental resources.

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Additional Assistance to Ukraine
This measure provides $189.6 million of military assistance to Ukraine from 2022-23 to 
2023-24 which includes provision of:
x 30 Bushmaster and associated transportation cost.
x 155-milimeter artillery ammunitions as a part of a joint initiative between France and 
Australia.
x unmanned aerial vehicle and associated support equipment.
x training to the Ukrainian Armed Forces.
Other Departmental Budget Adjustments
Operation ACCORDION
This is an increase to Defence funding of $117.1 million in 2023-24 to continue Operation 
ACCORDION. This funding will be provided on a no-win/no-loss basis. There is a slight 
decrease to Defence funding of $48,000 in 2024-25 for costs that are no longer required.
Operation RESOLUTE
This is an increase to Defence funding of $77.5 million in 2023-24 to continue Operation 
RESOLUTE. This funding will be provided on a no-win/no-loss basis.
Transfer of projects to the Australian Signals Directorate
This is a transfer of $763.8 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.
Savings from External Labour, and savings from Advertising, Travel and Legal Expenses
This is Defence’s contribution to a whole-of-government savings measure that will reduce 
Defence’s appropriation by $631.9 million over 2023-24 and the Forward Estimates period to 
2026-27 to achieve savings from external labour, advertising, travel and legal expenses.
Foreign Exchange
This is an increase in funding of $491.3 million in 2023-24 and $2.1 billion over the Forward 
Estimates to 2026-27 due to a change in foreign exchange parameters.
Increased support for the Jawun Program
This is a transfer of $0.2 million over 2023-24 and 2024-25 to the National Indigenous 
Australians Agency and the Australian Public Service Commission to provide increased 
support for the Jawun Program.
Other Departmental Budget Adjustments
There are a number of items included in Other Budget Adjustments. Total figures for this 
category are not for publication (NFP) due to national security reasons associated with some 
elements.

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Administered Budget Adjustments
This is an administered budget adjustment providing $137.1 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.
PAES 2022-23 Measures and Departmental Budget Adjustments
Australian Defence Force Deployments
Defence will receive $37.4 million in 2022-23 for three additional no-win/no-loss operations. 
$12.2 million for Operation KUDU, $13.8 million for Operation LILIA and $11.4 million for 
Operation VANUATU ASSIST.
Operation KUDU
x Operation Kudu is the ADF’s commitment to the training of Armed Forces of Ukraine 
recruits in the United Kingdom (UK).
x A contingent of up to 70 ADF personnel are deployed on Operation KUDU to assist 
with the UK-led and based training program.
x The Australian contingent is working alongside partner nations as part of the UK-led 
training program to build additional capacity for Ukraine to defend their homeland 
and will focus on basic infantry tactics for urban and wooded environments.
Operation LILIA
x Operation LILIA is the ADF’s contribution to supporting the Australian Government’s 
response of assisting the Solomon Islands Government to stabilise public unrest.
x The ADF contributes to the Australian Government’s response in support of the Royal 
Solomon Islands Police Force to restore peace and stability in the Solomon Islands.
x Op LILIA has been declared as a Non-Warlike operation.
Operation VANUATU ASSIST
x Operation VANUATU ASSIST is the ADF’s contribution to supporting the Australian 
Government’s response of best supporting the Ni-Vanuatu people impacted by 
Tropical Cyclone Judy and Tropical Cyclone Kevin.
x A contingent of a 600 person team has delivered more than 100 tonnes of 
humanitarian aid, including food, shelter and medical supplies to Vanuatu.
x In addition to humanitarian aid, support to Vanuatu included hydrographic 
reconnaissance, route clearance, emergency medical evacuations, transport of local 
government officials, and clean-up and remediation of local infrastructure, including 
Vila Central Hospital, two schools and the Maternity and Child Health Clinic.
x Operation VANUATU ASSIST was ceased on 21 April 2023.

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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
Integrated Investment Program
Handling Note: 

Vice Chief of the Defence Force, Vice Admiral David Johnston, to lead on Integrated 
Investment Program. 

Associate Secretary, Matt Yannopoulos, to support.
Key Messages

In line with the recommendations of the Defence Strategic Review, a biennial 
National Defence Strategy will be released in 2024 and will encompass a 
comprehensive plan for Defence policy, planning, capabilities and resourcing, 
including reprioritisation of the Integrated Investment Program.

The Government and Defence are committed to providing the appropriate level of 
information and transparency to the public and industry while preserving Defence’s 
commercial position and safeguarding national security.

The Government agreed to increase Defence funding over the coming decade to 
deliver the Defence Strategic Review priorities and capabilities.

The rebuild and reprioritisation of the Integrated Investment Portfolio is underway, 
with Government consideration planned as part of consideration of the 
2024 National Defence Strategy.

The six priority capabilities identified in the Review have been accelerated.
Talking Points
How much money is in the Integrated Investment Program?

Approximately $270 billion in investment is captured in the Integrated Investment 
Program over the next decade.

The Government announced their expectation to grow Defence spending over the 
decade to deliver the agreed priorities and capabilities recommended in the Defence 
Strategic Review. Approximately $19 billion has been allocated to six immediate 
priorities over the forward estimates:

$9 billion for the Nuclear-Powered Submarine Program through AUKUS;

$4.1 billion for long-range strike capabilities, including;

Increasing the number of High Mobility Artillery Rocket Systems through 
the acceleration and expansion of LAND 8113 Phase 2-4 in accordance with 
the corresponding Defence Strategic Review recommendation agreed by 
Government; and
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos

The purchase of more than 200 world-class long-range Tomahawk missiles, 
and 60 Anti-Radiation Guided Missiles to target enemy radar systems;

$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 2.
What is the Integrated Investment Program funding by domain?

In the May 2023 Budget, the approximate investment over the decade to 2029-30 for 
each domain isϭ: 

Maritime – 29 per cent;

Air – 22per cent;

Land – 20per cent;

Cyber – 6per cent;

Space – 3per cent; and

Enterprise Enabler capabilities, including, but not limited to, information and 
communications technology, facilities and infrastructure, innovation and science 
and technology – 20per cent.
What are some examples of high profile projects within the Integrated Investment Program 
and how is their funding managed?

AIR 7404 Phase 1 – Medium Air Mobility Aircraft 

Defence will acquire 20 C-130J-30 Hercules aircraft to replace and expand the 12 
C- 130J Hercules aircraft currently operated by the Royal Australian Air Force.

Defence will secure the aircraft via Foreign Military Sales with the United States. 
Australian industry will have opportunities to construct infrastructure and to 
sustain the aircraft.

Separating the aircraft purchase from infrastructure and sustainment 
requirements has enabled quicker delivery of the aircraft.

Defence planned to acquire up to 24 aircraft. To meet requirements of the 
Defence Strategic Review, Government announced in July 2023 that it will instead 
purchase 20 aircraft. 

The adjustment to the number of aircraft purchased means funds 
previously allocated to AIR 7404 Phase 1 will now be used to help 
accelerate other projects prioritised to deliver a focused ADF.
1 Based on May 2023-24 PBS 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
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos

LAND 400 Phase 3 – Infantry Fighting Vehicles

The Defence Strategic Review recommended a reduction to the planned number 
of infantry fighting vehicles to be acquired under LAND 400 Phase 3. The 
Government agreed to this recommendation.

In terms of impact on the Integrated Investment Program, the reduction in 
number means:

Defence will now use funds previously allocated to LAND 400 Phase 3 to 
help accelerate other projects prioritised to deliver a focused ADF.

Defence is expecting to deliver the infantry fighting vehicles around the 
same time as the new high mobility artillery rocket missile systems and 
Army Landing Craft – reflecting the Review’s call for Army to be focussed on 
littoral manoeuvre operations from Australia.

Hanwha Defense Australia has been selected as the preferred tenderer to 
deliver 129 infantry fighting vehicles.
Background 
How is the Integrated Investment Program managed?

The Integrated Investment Program is managed as part of Defence’s force design 
processes, which identify emerging risks, opportunities and new technologies, then 
develops options to adjust capability investments within the Defence budget.

The Integrated Investment Program includes investments approved by Government as 
well as unapproved capability acquisition proposals for which Defence plans to seek 
Government authority within the following decade.

Defence provides biannual updates to Government as the agreed method to seek 
adjustments to the Integrated Investment Program. These updates are considered 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 or caveated as Sensitive: Cabinet. Government determines which decisions 
are announced publicly.
What findings have come from the Australian National Audit Office (ANAO) audit of the 
Integrated Investment Program?

The Auditor-General has examined the effectiveness of Defence’s management of the 
Integrated Investment Program since it was introduced in 2016. 

In November 2022, the Auditor-General tabled a report in Parliament on Defence’s 
Administration of the Integrated Investment Program which focused on Defence’s 
governance frameworks and public reporting on the Integrated Investment Program.

The Auditor-General noted that Defence has a largely effective governance, 
control and approval framework for the management of the Integrated 
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
Investment Program, and 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 are being addressed 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.

In order 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 consideration. The recommendation 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 there is appropriate 
transparency and accountability for performance of the Integrated Investment 
Program.
Supporting Information
Questions on Notice
Senate Estimates: 30 May 2023 

QoN 2 and 3 ^ĞŶĂƚŽƌ Simon Birmingham (Liberals, South Australia) asked about the 
fourteen projects that had been cancelled or deferred as part of the Review. 
 QoN 16 and 17 Senator David Fawcett (Liberals, South Australia) asked about rescoped 
projects and associated costings.
Freedom of Information (FOI) Requests 
 In April 2022 a media organisation sought documentation relating to Defence advice 
regarding savings measures to fund REDSPICE. TThe documents were not released.
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
Recent Ministerial Comments 
 On 27 July 2023, the Government announced the selection of Hanwha Defense 
Australia as the preferred tenderer to deliver 129 infantry fighting vehicles to the 
Australian Army, as part of a major transformation of the Army in response to 
Australia’s changing strategic environment. Delivering next generation infantry fighting 
vehicles for Australia | Defence Ministers.
 On 9 May 2023, the Government announced that over the next four years, more than 
$19 billion will be invested to implement the immediate priorities identified in 
response to the Defence Strategic Review. Investing in Australia's national defence | 
Defence Ministers. 
Relevant Media Reporting 
 On 5 January 2023, Australian media reported extensively on the Government’s 
acquisition of High Mobility Artillery Rocket System from the United States, following 
its success in Ukraine and the Deputy Prime Minister’s announcement.
 Key media reporting following the 2022-23 October Budget:
­
Andrew Tillett, Australian Financial Review, reported that Defence is now 
budgeted to spend $2.8 billion on Defence projects. 
­
Cameron Stewart, The Australian, reported the “true test of the Labor 
Government’s commitment to national security will come early next year, when it 
responds to both the Defence Strategic Review and the report of the Nuclear 
Submarine Taskforce, both of which are due by March.”
­
Ben Packham, The Australian, reported on “Defence spending static despite 
threats”.
 Since 10 October 2022, Australian media has reported extensively on the quality of 
Defence spending being a top priority for the Albanese Government, including the 
below:
­
Andrew Tillett, Australian Financial Review, reported on a “$6.5 billion blowout on 
18 defence projects”, “warning expensive promises to buy nuclear-powered 
submarines and recruit almost 20,000 defence personnel remain unfunded.” The 
Government will establish a “new independent projects and portfolio 
management office within Defence, require monthly updates on troublesome 
projects for ministers and introduce ‘early warning’ criteria to ensure projects 
come under greater scrutiny as soon as they hit problems.”
­
Ben Packham, The Australian, reported a new Defence budget analysis will 
“identify 18 major projects worth nearly $70 billion suffering blowouts, and 28 
that are running seriously behind schedule.” The article includes comments from 
the Deputy Prime Minister regarding Defence spending: “Given the current 
strategic circumstances we face we need to be better focused on the quality of 
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
the spend within Defence to ensure we are providing our ADF personnel with the 
best capability.”
­
Andrew Greene, ABC, reported on budget pressures within the Defence portfolio 
and key areas of concern with large military projects. The article highlights in 
March the “budget projected defence spending as a proportion of GDP would rise 
from 2.0 per cent in 2021-22 to 2.2 per cent over the decade, with spending on 
defence to rise above $80 billion a year by 2032. According to Labor, the Defence 
costs don't include future requirements which were unfunded by the previous 
government, including AUKUS and an increase in the number of ADF personnel.”
­
On 17 November 2022, the Deputy Prime Minister confirmed in an interview that 
the Defence Strategic Review is looking at the Integrated Investment Program to 
ensure the schedule of procurement is fit for purpose.
­
On 16 December 2022, the Australian Bureau of Statistics released a statement 
regarding Defence industry supporting 61,600 Australian jobs.
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
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Date: 4 September 2023
Date: 6 September 2023
Cleared by CFO / DPG / DSR:
Date: 6 September 2023
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DSR Taskforce
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 6 September 2023  
Vice Admiral David Johnston
Vice Chief of the Defence Force  
Questions on notice referred to within the brief:
2023-24 Budget Estimates 30 May 2023
Project Deferrals
Senator Simon Birmingham
Spoken Question
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
Senator BIRMINGHAM: Thank you. Can we detail the seven projects that have been cancelled 
and their contribution to the $6 billion?
Vice Adm. Johnston: A small number of the 51 projects that I mentioned are classified, but, of 
the unclassified ones, the cancelled projects were the Fishermans Bend wind tunnels and 
propulsion laboratories; the Puckapunyal combined arms museum; the RAAF Williams, Point 
Cook redevelopment and relocation; the RAAF Williams, Laverton redevelopment; a 
simplification of compensation structures; and the additional Protected Mobile Fires, which is 
the second regiment of the self-propelled howitzers.
Senator BIRMINGHAM: Thank you. And the seven that have been deferred?
Vice Adm. Johnston: The delays: Irwin Barracks redevelopment and Leeuwin Barracks 
relocation; a Russell Offices midterm refresh-
Senator BIRMINGHAM: Sorry to interrupt, Vice Chief. Is it possible, as you're going through 
each of the deferrals, to indicate when they have been deferred to or how long the deferral 
is?
Vice Adm. Johnston: I don't have that data, Senator. I'd have to take that on notice to give it 
to you. I just have the names of the projects.
Answer
Refer to Question on Notice 20.
2023-24 Budget Estimates 30 May 2023
Project cancellations, deferrals and rescoping
Senator Simon Birmingham
Spoken Question
Senator BIRMINGHAM: Can we break down across those three different categories, as you've 
divided them, in terms of the $6 billion of savings over the forward estimates, how much 
relates to the cancelled projects, how much to the deferred projects and how much from 
rescoping?
Vice Adm. Johnston: I'll take that on notice.
Senator BIRMINGHAM: Have you got any indication?
Vice Adm. Johnston: No.
Senator BIRMINGHAM: What are the biggest contributors?
Vice Adm. Johnston: Some of the large ones are Land 400 phase 3, the infantry fighting 
vehicles, with the reduction in the number of vehicles; and the second regiment of the self-
propelled howitzers. They're examples of some of the larger quantums.
Senator BIRMINGHAM: And what's the order of magnitude for those?
Vice Adm. Johnston: I'd take that on notice.
Answer
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
Refer to Question on Notice 20.
2023-24 Budget Estimates 30 May 2023
Rescoped projects
Senator David Fawcett
Spoken Question
Senator FAWCETT: VCDF, this question is for you then. I go back to the submission by 
Defence to the parliamentary works committee, looking at LEAP phase 2. I'm quoting here 
from the Defence submission: 'The provision of high-quality living and accommodation to 
ADF members in line with community standards has a direct impact on the ability of the ADF 
to attract and retain personnel in a competitive employment market.' Given that the DSR also 
says that a priority is on making investments to address both recruitment and retention, what 
is the response from Defence to taking away accommodation that would, by Defence's own 
definition, assist in recruitment and retention? How do you balance those things?
Vice Adm. Johnston: You're right: it is a balance of all of those elements. The DSR clearly 
prioritises some of the capabilities that we believe need to be in the hands of Defence Force 
people to be able to execute their jobs well. That's important to them being able to perform 
at the level they would expect themselves. For the projects that I listed out, where there 
were cancellations and deferments—and you're referring explicitly to one live-in 
accommodation area—we recognise that we need to meet the duality of that. People need 
to have the right accommodation to live in, the right support for their families and other 
people measures associated with it. This is about forming a balance between capability in 
hand that they need to do their jobs to the level that we expect and making sure that we 
provide suitable means for them in those other parts of that make employment in the ADF 
what we would wish it to be.
Senator FAWCETT: In your answer on notice, if you could put the dollar value against projects 
that have been deferred or descoped, to get an indication that relative assessment, that 
would be useful.
Vice Adm. Johnston: Can I confirm that you are referring to all the projects on the list?
Senator FAWCETT: Yes.
Answer
Refer to Question on Notice 20.
2023-24 Budget Estimates 30 May 2023
Rescoping involvement and costing
Senator David Fawcett
Spoken Question
Senator FAWCETT: In that case, VCDF, again through that whole list, could you give us an idea 
of what the rescoping involves and what the dollar value of that is that has been saved to put 
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
towards other priorities? And particularly where there is a direct conflict, in the case of things 
like retention and recruitment against a measure, understanding what you are doing, or what 
defence writ large is doing, to actually ameliorate the risk that is caused by those measures.
Vice Adm. Johnston: The assurance I'd give you is that as we looked at those projects that 
were being reduced or deferred, we very much had in mind the priorities around the DSR 
including that people and other measures were part of the filter by which we evaluated those 
prospects. We'll get you the list.
Answer
The Defence Strategic Review observed that the Defence budget “is carrying significant 
pressures across acquisition, sustainment, workforce and operating categories”. It also 
observed that “Defence’s Budget across the Forward Estimates was over-programmed by 
24 per cent for capability acquisitions”.
The Government has directed Defence to reprioritise $7.8 billion of projects over the 
Forward Estimates to fund the initial six priority areas for immediate action. Defence 
identified projects for either rescope, deferral, or cancellation and provided advice to 
Government. These projects were primarily at the pre-contractual stage. This reflected the 
Defence Strategic Review’s recommendations to prioritise investment in our northern 
infrastructure, alongside the other areas of immediate action in the Government’s response. 
The projects listed at Attachment A amount to savings of approximately $6 billion over the 
Forward Estimates. Additional funding will be released through the rebuild and 
reprioritisation of the Integrated Investment Program, and reinvested into priority defence 
projects, programs and activities, as recommended by the Review.
The list of projects identified by Defence can be found at Attachment A.
Attachment A – List of projects
DEFENCE STRATEGIC REVIEW - OFFSETS
***BACKGROUND ONLY – NOT FOR ATTRIBUTION***
The below is a list of projects which will either be rescoped, delayed or cancelled.
Project
Description
Rescope
EST J0132 Phase 0
Sydney Living-In Accommodation
EST z007 Phase 0
Shoalwater Bay Mid Term Refresh
EST z024 Phase 0
Victoria Barracks Melbourne Redevelopment
EST z026 Phase 0
RAAF Richmond Redevelopment
EST z041 Phase 0
Victoria Barracks Sydney Redevelopment
EST z047 Phase 0
General Ranges and Training Area Redevelopments
EST z051 Phase 0
Gallipoli Barracks Mid Term Refresh
EST z052 Phase 0
Simpson Barracks Watsonia Redevelopment  
EST z054 Phase 0
RAAF East Sale Mid Term Refresh
EST z072 Phase 1
Puckapunyal Redevelopment
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000743
Last updated: 6 September 2023                         
           
Integrated Investment Program
Key witnesses: Vice Admiral David Johnston; Matt Yannopoulos
EST 2033 z033 Phase 0
ADF Reserves and Cadets Redevelopment Project
EST z122 Phase 0
RAAF Pearce Mid Term Refresh
ICT 2302 Phase 1
Applications Program
ICT 2500 Phase 1
Consolidation of Workforce Planning
AIR 5428 Phase 3
Air Mission Training System
AIR 5438 Phase 2
Lead-in Fighter Capability Assurance Program Phase 2
AIR 6016 Phase 0
Joint Terminal Attack Controller Training Capability
AIR 6510 Phase 1
Deployable Defence Air Traffic Management and Control System
LAND 400 Phase 3
Land Combat Vehicle System
LAND 8115 Phase 1
Mortar Ammunition Replacement
SEA 129 Phase 5
Maritime Unmanned Aerial Systems Continuous Development
Deferral
EST C8964 Phase 1
Irwin Barracks Redevelopment and Leeuwin Barracks Relocation
EST z038 Phase 0
Russell Offices Mid Term Refresh
EST z040 Phase 0
Borneo Barracks Redevelopment
EST z042 Phase 0
Randwick Barracks Redevelopment
EST z119 Phase 0
Kokoda Barracks Canungra Mid Term Refresh
ICT 2249 Phase 1
Garrison and Estate Management System
Cancel
EST T6 Phase 0
Fishermans Bend – Wind Tunnels and Propulsion Laboratories
EST T8 Phase 1
Puckapunyal Combined Arms Museum
EST z003 Phase 1
RAAF Williams Point Cook Redevelopment and Relocation of Units 
from RAAF Williams Laverton
EST z014 Phase 1
RAAF Williams Laverton Redevelopment
JP 3520 Phase 1
Simplification of Compensation Structures
LAND 8116 Phase 2
Additional Protected Mobile Fires Platforms
Classified projects are not listed. 
Prepared By:
Cleared By: 
Name: Major General Anthony Rawlins
Name: Vice Admiral David Johnston
Position: Head Force Design
Position: Vice Chief of the Defence Force
Division: Force Design
Group: Vice Chief of the Defence Force Group
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Attachment A
Major Ministerial announcements (by Domain)
Date
Minister
Announcement 
Domain
The Government announced Victoria’s Point Wilson Wharf 
23 Oct 
The Hon Richard 
has reopened to support the aacceleration of guided 
Enterprise 
2023
Marles MP
weapons and explosive ordnance stocks for the ADF: read 
and Enabler
announcement
20 Oct 
The Hon Pat 
Government agreement to sell an additional  
Land
2023
Conroy MP
14 Bushmasters to Fiji: read announcement 
The Government announced a $
$220 million investment in 
6 Oct 
The Hon Pat 
Enterprise 
munitions production at factories in Mulwala, NSW and 
2023
Conroy MP
and Enabler
Benalla in Victoria: read announcement 
As part of Government’s commitment to strengthen 
4 Oct 
The Hon Pat 
sovereign defence industry, submissions to 2024 Australian 
Enterprise 
2023
Conroy MP
Defence Export Catalogue submissions open: read 
and Enabler
announcement
The Hon Richard 
4 Oct 
Marles MP 
Papua New Guinea has taken ownership of its fourth 
Sea
2023
The Hon Matt 
Guardian-class Patrol Boat: read announcement
Keogh MP
The Hon Richard 
The Government provided an update on the A
Army 
29 Sep 
Marles MP 
helicopter fleet – M
MRH-90 Taipan would not return to flying 
Land
2023
The Hon Pat 
operations; n
new fleet of UH-60M Black Hawk helicopters 
Conroy MP
into service is the focus: read announcement 
The Hon Richard 
The Government announced it has received the 
29 Sep 
Marles MP
independent analysis into Navy's surface combatant fleet: 
Sea
2023
The Hon Pat 
read announcement
Conroy MP
28 Sep 
The Hon Richard 
Changes to Army’s structure in response to DSR 
Land
2023
Marles MP
recommendations: read announcement
The Government held the third P
Projects of Concern Summit 
27 Sep 
The Hon Pat 
since coming into office, on the Civil Military Air Traffic 
Enterprise 
2023
Conroy MP
Management System (OneSKY-CMATS) project   read 
and Enabler
announcement
Boost to m
maritime patrol and response aircraft fleet with 
Government approval to acquire aa fourth MQ-4C Triton 
19 Sep 
The Hon Pat 
Remotely Piloted Aircraft System, and P
P-8A Poseidon ffleet 
Air
2023
Conroy MP
upgrades, with a ccombined value over $1.5 billion: read 
announcement
The Government announced the introduction of the 
14 Sep 
The Hon Pat 
Safeguarding Australia’s Military Secrets Bill, to strengthen 
Enterprise 
2023
Conroy MP
current laws and enhance the Government’s ability to 
and Enabler
protect Australia’s national secrets. read announcement 

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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Attachment A
Date
Minister
Announcement 
Domain
The Government announced a new round of ggrants focused 
8 Sep 
The Hon Pat 
Enterprise 
on b
building a sovereign Defence industry, directed towards 
2023
Conroy MP
and Enabler
strategic priorities outlined in the DSR: read announcement 
The Hon Richard 
Marles MP
The Government announced an investment of 
1 Sep 
$128.5 million over four years to fund the eextra 4,000 
Sea
2023
with Education 
Minister the Hon 
university places for AUKUS workforce:  read more 
Jason Clare MP
29 Aug 
The Hon Richard 
The Government committed $765 million to deliver the 
Air
2023
Marles MP
Joint Air Battle Management System: read announcement
The Government announced a rreview of the Defence Trade 
29 Aug 
The Hon Richard 
Controls Act 2012, which regulates the supply of military 
Enterprise 
2023
Marles MP
and dual-use technology overseas and the brokering of 
and Enabler
defence goods and technology: read announcement
22 Aug 
The Hon Pat 
The Government announced a $124m u
upgrade to the 
Enterprise 
2023
Conroy MP
airfield at HMAS Albatross: read announcement
and Enabler
The Hon Richard 
The Government is purchasing more than 200 TTomahawk 
cruise missiles for approx. $1.3b, and more than 
21 Aug 
Marles MP
60 Advanced Anti-Radiation Guided Missile – Extended 
Land
2023
The Hon Pat 
Range missiles for $431m, from the U
United States: read 
Conroy MP
announcement
The Hon Richard 
The Government is more than doubling the number of H
High 
19 Aug 
Marles MP
Mobility Artillery Rocket System launchers being acquired 
Land
2023
The Hon Pat 
with an investment of $1.6b: read announcement
Conroy MP
The Government has selected Hanwha Defense Australia as 
27 July 
The Hon Pat 
the preferred tenderer to deliver 12
29 infantry fighting 
Land
2023
Conroy MP
vehicles to the Australian Army for $
$5-7b: read 
announcement
The Hon Richard 
The Government will purchase 2
20 new C-130J Hercules 
aircraft for the Royal Australian Air Force for $9.8b. This will 
24 Jul 
Marles MP 
provide the Air Force with state of the art C-130 Hercules to 
Air
2023
The Hon Pat 
meet the air transport needs of the future: read 
Conroy MP
announcement
The Hon Pat 
Conroy MP
The Government signed a $32.2m agreement with NQ 
Enterprise 
6 Jul 2023
Spark Pty Ltd for work to begin on northern Australia’s ffirst 
The Hon Matt 
and Enabler
collaborative defence industry hub: read announcement
Thistlethwaite MP
Government is investing nearly $700 million in Townsville to 
The Hon Richard 
1 Jul 2023
support the new AH-64E Apache helicopters, where they 
Air
Marles MP
will be based from 2025: read announcement

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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Attachment A
Date
Minister
Announcement 
Domain
The Australian Government has signed a $160m contract 
17 May 
The Hon Pat 
with Thales Australia to deliver an additional 78 B
Bushmaster 
Land
2023
Conroy MP
protected mobility vehicles for the Australian Defence 
Force: read announcement
The Albanese Government’s Budget invests nearly $150m 
16 May 
The Hon Richard 
to start delivering the sskills and workforce we need to 
Sea
2023
Marles MP
deliver A
Australia’s nuclear-powered submarine program 
through AUKUS: read announcement
The Hon Richard 
Over the next four years, the Albanese Government will 
6 May 
Marles MP 
invest more than $19b to implement the immediate 
Enterprise 
2023
The Hon Pat 
priorities identified in response to the D
Defence Strategic 
and Enabler
Conroy MP
Review: read announcement
The Government has appointed the head of the G
Guided 
5 May 
The Hon Pat 
Weapons and Explosive Ordnance Enterprise to accelerate 
Enterprise 
2023
Conroy MP
the establishment of a local long-range guided weapons 
and Enabler
and munitions manufacturing industry: read announcement
The Government signed a contract with Rheinmetall 
5 May 
The Hon Pat 
Defence Australia to equip Anzac Class frigates and Hobart 
Sea
2023
Conroy MP
Class destroyers with  Multi-Ammunition Soft-Kill System: 
read announcement
The Government signed a $46m contract with L3Harris 
4 May 
The Hon Pat 
Micreo to deliver up to 80 new eexplosive ordnance disposal 
Land
2023
Conroy MP
robots: read announcement
The Government entered into an agreement to acquire an 
27 Apr 
The Hon Richard 
ownership interest in Australian d
defence radar systems 
Air
2023
Marles MP
manufacturer,  CEA Technologies: read announcement
The Hon Richard 
Marles MP
The Government will bolster investment in A
Australia’s 
27 Apr 
The Hon Pat 
Enterprise 
northern bases, committing $3.8b over the next four 
2023
Conroy MP
and Enabler
years: read announcement
The Hon Matt 
Thistlethwaite MP
The Hon Richard 
The Government is committing $4.1b to acquire more llong-
26 Apr 
Marles MP
Enterprise 
range strike systems and manufacture longer-range 
2023
The Hon Pat 
and Enabler
munitions: read announcement
Conroy MP
The Hon Pat 
6 Mar 
Conroy MP
The Government welcomed the arrival of the first O
Ocius 
Sea
2023
The Hon Matt 
BlueBottle Uncrewed Surface Vessels: read announcement
Thistlethwaite MP

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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
Attachment A
Date
Minister
Announcement 
Domain
The Government signed an A
Australian Industry Capability 
1 Mar 
The Hon Pat 
Deed for the Apache Program with Boeing (US): read 
Air
2023
Conroy MP
announcement
The Government will invest $64m in the D
Defence 
21 Feb 
The Hon Matt 
Enterprise 
Renewable Energy and Energy Security Program: read 
2023
Thistlethwaite MP
and Enabler
announcement
The Government is upgrading the EA-18G Growler 
6 Feb 
The Hon Pat 
capability through P
Project AIR 5349 Phase 6 - Advanced 
Air
2023
Conroy MP
Growler: read announcement
The Hon Richard 
5 Jan 
Marles MP
The Government is increasing the ADF’s gguided weapons 
Enterprise 
2023
The Hon Pat 
and explosive ordnance stocks: read announcement
and Enabler
Conroy MP
The Government signed a FFacility Services Deed worth 
2 Nov 
The Hon Pat 
more than $100m with BAE Systems Australia to expand the 
Sea
2022
Conroy MP
F-35A depot maintenance capability at Newcastle Airport: 
read announcement
ADF signed a contract with Babcock Pty Ltd to equip the 
21 Oct 
The Hon Pat 
Enterprise 
ADF with an enhanced h
high-frequency communications 
2022
Conroy MP
and Enabler
system: read announcement
The Government signed a $155m contract with BAE 
13 Oct 
The Hon Pat 
Systems to optimise the R
RAN Hobart Class Destroyers: read 
Sea
2022
Conroy MP
announcement
The Government signed a $4.35m contract with Asension to 
20 Aug 
The Hon Pat 
deliver a sspace-based tactical sensor system for use by the 
Space
2022
Conroy MP
ADF: read announcement
Defence announced a $60m contract with Boeing Defence 
4 Aug 
The Hon Pat 
Enterprise 
Australia to maintain the P
P-8A Poseidon fleet: read 
2022
Conroy MP
and Enabler
announcement
Canberra-based company CEA Technologies is building four 
21 Jul 
The Hon Pat 
new A
Air Defence radars as part of the Australian 
Air
2022
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
2022
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
2022
Conroy MP
announcement

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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
      PDR No: SB23-000744
Last updated: 6 September 2023
  Key Facts and Figures
Key witness: Steven Groves.
Key Facts and Figures
Handling Note: Chief Finance Officer, Steven Groves, to lead on this topic.
Key Messages

Defence’s appropriation in the Portfolio Budget Statements 2023-24, excluding the 
Australian Signals Directorate, is $50.1 billion in 2023-24 and $214.1 billion over the 
Forward Estimates.

Defence and the Australian Signals Directorate’s combined appropriation in the 
Portfolio Budget Statement 2023-24 is $52.6 billion in 2023 24 and $223.6 billion 
over the Forward Estimates.

Across 2023-24 the Defence workforce is budgeted to grow to 77,386 (ADF and APS, 
excluding Reserves). This includes an agreed increase of 660 Average Staffing Level as 
a result of the conversion of external labour to APS.

The Defence Estate includes approximately 1,100 owned or leased properties and 
26,000 owned or leased buildings domestically and internationally.

The Government is committed to increasing Defence’s funding above its current 
trajectory over the medium term to implement the Defence Strategic Review, 
including the delivery of the conventionally-armed, nuclear-powered submarine 
program.
Talking Points

The Defence budget provides funding to:

deliver an ongoing commitment to Defence operations around the globe, 
ensuring safety and security at home and secure maritime borders;

shape, deter and respond with credible military support; and

deliver the Integrated Investment Program in line with the Defence Strategic 
Review.

Government investment in Defence capability continues to support enhanced ADF 
capabilities and defence industry, and deliver economic benefits and support to the 
broader Australian economy.

Benefits of this investment include job creation, infrastructure development, 
innovation pathways, export opportunities, skills acquisition and supply chain 
integration for small to medium-sized enterprises.

The Defence budget remains under pressure due to increased acquisition and 
sustainment costs, increased project complexity and shortage of labour driven by low 
unemployment.
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
Position: Assistant Secretary Budget & Reporting
Position: Chief Finance Officer
Division: Budget and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
      PDR No: SB23-000744
Last updated: 6 September 2023
  Key Facts and Figures
Key witness: Steven Groves.
Table 1: Defence Departmental Appropriation (including Australian Signals Directorate) 
2017-18 to 2021-22:
2017-18 
2018-19 
2019-20 
2020-21  
2021-22  
Actual $m
Actual $m
Actual $m
Actual $m
Actual $m
Defence 
(Including the 
34,926.0
37,239.3
39,249.0
42,238.9
45,487.2
Australian Signals 
Directorate)
Table 2: Defence Departmental Appropriation (including Australian Signals Directorate) 
across the Forward Estimates (Portfolio Budget Statement 2
2023-24 price basis):
2022-23
2023-24
2024-25
2025-26
2026-27 
Estimated
Budget 
Budget 
Budget 
Previous 
Actual $m
Estimate $m
Estimate $m
Estimate $m
Estimate $m
Defence
47,419.4
50,086.4
51,890.8
54,505.8
57,582.3
Australian Signals 
1,711.8
2,472.4
2,523.3
2,304.4
2,233.7
Directorate
Total
49,131.2
52,558.8
54,414.1
56,810.2
59,816.0
Table 3: Split of Defence spending by major category at 2023-24 Budget:
Acquisition
Sustainment
Workforce
Operating
Operations
Funding ($b)
17.7
15.4
14.9
2.9
0.2
Per cent of 
Defence 
34.6
30.1
29.2
5.7
0.4
appropriation
Background
Defence Budget as at Portfolio Budget Statement 2023-24

The variation in Defence’s appropriation since the publication of the October Portfolio 
Budget Statement 2022-23 is primarily due to a change in foreign exchange 
parameters, delivery of election commitments, funding for new Budget measures and 
whole-of-government savings.
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
Position: Assistant Secretary Budget & Reporting
Position: Chief Finance Officer
Division: Budget and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
      PDR No: SB23-000744
Last updated: 6 September 2023
  Key Facts and Figures
Key witness: Steven Groves.

2023-24 Defence planned expenditure (exclusive of the Australian Signals Directorate 
and the Australian Submarine Agency) as at the Portfolio Budget Statement 2023-24 
includes:

$17.7 billion (34.6 per cent of the Defence budget) for capability acquisition:

$12.4 billion for military equipment;

$4.2 billion for facilities and infrastructure;

$0.9 billion for ICT; and

$0.2 billion for other capital equipment (such as minor military equipment 
and other plant and equipment).

$15.4 billion (30.1 per cent of the Defence budget) for sustainment:

$10.7 billion for military capability sustainment;

$3.0 billion for facilities sustainment;

$1.6 billion for ICT sustainment; and

$0.1 billion for other sustainment.

$14.9 billion (29.2 per cent of the Defence budget) for employees:

$12.2 billion for military employees;

$2.2 billion for civilian employees; and

$0.4 billion for other employee costs (e.g. Comcare premium and 
recruitment).

$2.9 billion (5.7 per cent of the Defence budget) for operating activities and 
services including business travel and consumable items.

$0.2 billion (0.4 per cent of the Defence budget) for military operations.
Defence Major Operations

As a part of our ongoing commitment to security and stability at home and around the 
globe, the Government continues to fund major operations. The estimated net 
additional cost of major operations in 2023-24 is $196.6 million. Major operations 
received additional funding under no-win/no-loss arrangements. 
Delivering Capability in line with the Defence Strategic Review

The Government is committed to increase Defence funding above its current trajectory 
over the medium term to implement the Defence Strategic Review, including the 
delivery of the conventionally-armed, nuclear-powered submarine program through 
AUKUS.

In the 2023-24 Budget, the Government will invest $19 billion over the forward 
estimates to give effect to key priority areas for immediate action, as highlighted in 
response to the Defence Strategic Review.
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
Position: Assistant Secretary Budget & Reporting
Position: Chief Finance Officer
Division: Budget and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
      PDR No: SB23-000744
Last updated: 6 September 2023
  Key Facts and Figures
Key witness: Steven Groves.
Workforce

Table 4 details the size of the Defence APS workforce from 2018-19 to 2023-24.
Table 4: Defence APS Workforce Achievement (as at 1 August 2023):
Average Staffing 
Average Staffing 
Variation
Level Allocation
Level Achievement
from Allocation
2023-241
17,445
17,167
(278)
2022-23
16,991
16,497
(494)
2021-22
16,595
15,821
(774)
2020-21
16,313
16,454
141
2019-20
16,271
16,129
(142)
2018-19
16,373
15,925
(448)
Note 1:  Year to Date Average Staffing Level as at 1 August 2023.
Defence Estate

The Defence Estate is the largest land holding of the Government with around 1,100 
owned or leased properties and 26,000 owned or leased buildings domestically and 
internationally.

Defence future investment into the Enterprise Estate and Infrastructure Program is 
approximately $39.9 billion from 2023-24 to 2032-33.
Supporting Information
Questions on Notice
 No QoNs asked. 
Freedom of Information (FOI) Requests
 No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs, which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments
 On 10 May 2023, the Strategist published an article in which analyst, David Uren looked 
into the funding for Australia’s nuclear-powered submarines.
 On 9 May 2023, the Deputy Prime Minister and Minister for Defence published a 
media release in relation to implementing the Defence Strategic Review.
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
Position: Assistant Secretary Budget & Reporting
Position: Chief Finance Officer
Division: Budget and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
      PDR No: SB23-000744
Last updated: 6 September 2023
  Key Facts and Figures
Key witness: Steven Groves.
Relevant Media Reporting
 On 9 May 2023, the Guardian published an article in which journalist, Daniel Hurst 
wrote about $30 billion in the contingency reserve for defence funding in the next 
decade.
 On 9 May 2023, the Australian Financial Review published an article in which journalist, 
Andrew Tillett wrote about an increase in defence spending as a percentage of Gross 
Domestic Product due to the AUKUS agreement.
Division:
Budgets & Financial Services
PDR No: 
SB23-000744
Prepared by:
Cleared by Division Head:
Michael Cosgrove
Sam Volker
Assistant Secretary
First Assistant Secretary
Budgeting and Reporting Branch
Budgets and Financial Services
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 1 September 2023
Date: 5 September 2023  
Consultation:  N/A
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 6 September 2023  
Graham Weber
Acting Chief Finance Officer
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Steven Groves
Position: Assistant Secretary Budget & Reporting
Position: Chief Finance Officer
Division: Budget and Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton
Defence Strategic Review Implementation
Handling Note: Deputy Secretary, Defence Strategic Review Implementation Task Force, 
Tom Hamilton to lead. 
Key Messages

Good early progress is being made as part of ongoing work to implement 
Government’s directions in response to Defence Strategic Review. 

The Defence Strategic Review Implementation Task Force is working across Defence 
and whole-of-government to support delivery of Government‘s directions.

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, that works seamlessly to deliver enhanced and joined-
up combat power.

Defence’s capabilities are being reprioritised in line with Government-agreed 
recommendations of the Defence Strategic Review. 
Talking Points
What are the priorities for implementation?

The Government has directed that 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.
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton

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.

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 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 special 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 $450million 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.

An audit is underway to baseline Defence’s estate and infrastructure, and 
improvements are being made to support operating from northern bases, including a 
$700 million investment for Apache Helicopter basing at Royal Australian Air Force Base 
Townsville.
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton

Defence has launched the ADF Careers platform – a modernised ADF recruitment 
system – to underpin the growth and retention of a highly-skilled Defence workforce.

Government has also directed deeper engagement and collaboration with our 
international partners to maintain peace, prosperity and security in the region. 

In August, Australia hosted Exercise Malabar for the first time, which brought 
together partners from India, Japan and the United States. 

August also saw 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, 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 progressing well.

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.  

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 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?

Defence established the Defence Strategic Review Implementation Task Force (the 
Task Force) to ensure delivery of the Government’s direction on the Defence Strategic 
Review.

The Secretary and Chief of the Defence Force have also assigned responsibilities for the 
implementation of the Government’s directions to the relevant officers at the Band 3 
and 3 Star level.
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton

This was an ambitious review with many directions being progressed concurrently. 
Measures have been put in place to monitor and respond to risk as they arise.
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 for oversight and 
leadership of implementing the 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 May2023 (six meetings to date).

The External Advisory Panel has met monthly since first meeting on 10 May 2023, 
and will operate for an initial period of 18 months.

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: External Advisory Panel membership and remuneration 

The National Security Committee of Cabinet selected and appointed the members of 
the External Advisory Panel in consultation with Defence.

With the exception of His Excellency Professor the Hon Stephen Smith, the External 
Advisory Panel members are contracted and remunerated commensurate with their 
extensive, relevant experience.

His Excellency Professor the Hon Stephen Smith is a Commonwealth employee and will 
not be remunerated for his role in the External Advisory Panel. 
What is the cost of the DSR?

The Government’s National Defence Statement 2023 confirms that 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: C
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 rescoping other Defence projects or activities that are not 
aligned with Defence Strategic Review intent. 

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
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton
What projects has Defence delayed, re-scoped or cancelled in response to the Defence 
Strategic Review?

The Government will make decisions to reprioritise or cancel Defence projects that are 
no longer suited to our strategic circumstances.

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.
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 in the Contingency Reserve will take Defence funding to above 
2.3 per cent of Gross Domestic Product by 2032-33. This equates to 
approximately $30.5 billion in additional funding across the decade.
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 that current acquisition processes are not fit for 
purpose. The 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).

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.
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton
Supporting Information
Questions on Notice 
2023-24 Budget Estimates: 30 and 31 May 2023
 In Q
QoN 43, Senator David Shoebridge (Greens, New South Wales) asked Defence if the 
Office of National Intelligence review was provided to the authors of the Defence 
Strategic Review.
 In Q
QoN 63, Senator Simon Birmingham (Liberal Party, South Australia) asked Defence if 
there was a separate Terms of Reference for the reviewers of Navy’s surface fleet.

In Q
QoN 64, Senator Simon Birmingham (Liberal Party, South Australia) asked Defence to 
provide a breakdown of the costs associated with the Surface Fleet Review. 
Freedom of Information (FOI) Requests 
 In June 2023, an individual sought access under FOI to documents related to the 
consent of non-Senior Executive Service officers for their names to be published in the 
Defence Strategic Review. N
No documents were found to be in scope of the request. 
 In June2023, a media organisation sought access under FOI to documents detailing 
perceived conflicts of interest by members of the Defence Strategic Review team, 
including how these should be managed. A
Access to the documents was not granted 
under section 47F of the Freedom of Information Act 1982 (public interest – personal 
privacy).
 In May 2023, an individual sought access under FOI to obtain electronic access to 
submissions made to the Defence Strategic Review. A
Access to the documents was not 
granted under section 24 of the Freedom of Information Act 1982 (diversion of 
resources). 
Recent Ministerial Comments 
 On 28 August 2023, the Deputy Prime Minister and Assistant Minister for Defence 
announced the appointment of Jan Mason and Jim Miller as the independent leads of 
the Defence Estate Audit. 
 On 21August 2023, the Deputy Prime Minister and Minister for Defence Industry 
announced Australia’s purchase of more than 200 Tomahawk cruise missiles from the 
United States for the Royal Australian Navy’s Hobart Class destroyers. 
 On 27 July 2023, the Minister for Defence Industry announced Hanwha Defense 
Australia as the preferred tenderer to deliver 129 infantry fighting vehicles to the 
Australian Army (LAND 400 Phase 3). 
 On 24 July 2023, the Deputy Prime Minister and Minister for Defence Industry 
announced the purchase of 20 new C130J aircraft of $9.8 billion. 
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton

On 19 July 2023, the Minister for Defence Personnel said on 3AW radio that the ADF 
was looking to expand by around 20,000 people through to 2040.

On 24 April 2023, the Prime Minister, Deputy Prime Minister and Minister for Defence 
Industry announced the National Defence Strategy will be released in 2024 and is a 
document that will have more granular articulation of a range of the programs that will 
be pursued going forward. 
Relevant Media Reporting 
 In The Australian on 7 October 2023, Greg Sheridan critically analysed Defence 
Strategic Review progress to date and claims the Government is not serious about 
capability change. 
 In The Age on 7 October 2023, Matthew Knott discussed Defence shipbuilding industry 
and attempts to pre-empt Independent Analysis Team contents. 
 In The Age on 5 October 2023, Matthew Knott claimed he had been briefed on findings 
in the Independent Analysis Team and elaborated on potential financial implications for 
Government. 

In the AFR on 5 October 2023, Andrew Tillett discussed 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:
Defence Strategic Review Implementation Task Force
PDR No: 
SB23-000724
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: s22
    Ph: s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 9 October 2023
Date: 6 September 2023
Consultation: Nil.
Cleared by Deputy Secretary:
Tom Hamilton
Date: 9 October 2023
Deputy Secretary
Defence Strategic Review Implementation Task Force
Questions on notice referred to within the brief:
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton
2023-24 Budget Estimates
Senator David Shoebridge
Question Number: 43
Date question was tabled: 14 July 2023
Question
Senator SHOEBRIDGE: Secretary, given how critical climate risk is, was the ONI review 
provided to the authors of the Defence strategic review report?
Mr Moriarty: I'll take that on notice.
Answer
The Independent leads had access to a range of material to perform their analysis at both a 
classified and unclassified level.
2023-24 Budget Estimates
Senator Simon Birmingham
Question Number: 63
Date question was tabled: 14 July 2023
Question
Senator BIRMINGHAM: Are there separately defined terms of reference or is it purely a case 
of pointing the reviewers to the DSR and the government response?
Mr Hamilton: We have provided the independent analysis team with more detailed terms of 
reference based on the content of the Defence Strategic Review, including material that was 
in the original classified Defence Strategic Review.
Senator BIRMINGHAM: By the second part of that answer, you're indicating that there's 
classified material in those terms of reference. Is there a public version of them or not?
Mr Hamilton: There isn't at the moment, but let's just check to see what is in the public 
domain.
Answer
There is no public version of the Terms of Reference for the review of Navy's Surface 
Combatant Fleet Capability at this time.
2023-24 Budget Estimates
Senator Simon Birmingham
Question Number: 64
Date question was tabled: 14 July 2023
Question
Senator BIRMINGHAM: Can I turn to the surface fleet review. I was absent for a while 
yesterday attending other events, so, if any of this was covered, I apologise, but I don't think 
it was. Are there terms of reference published for the surface fleet review?
….
Senator BIRMINGHAM: Adelaide's a great place to host any event, even one that's foreign to 
us. To come back to the serious matters here, what's the total budget for the review?
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton
Mr Hamilton: My understanding is the cost is estimated at just over $1 million, but let me 
check to see if I have some more information on that. I think that's right.
Senator BIRMINGHAM: Are you able to break that down at all in terms of cost elements, 
reviewers, any additional consultancy or contracting advice or the like?
Mr Hamilton: I will see if I have that.
Mr Moriarty: I think that comprises the team members' costs, modelling costs, somebody to 
assist the team with pulling together the report. Some of it includes services and 
reimbursables. I think that's all I've got at the moment.
Senator BIRMINGHAM: If you can provide details of the costs and break them down further 
on notice, that would be great.
Answer
As at 21 June 2023, the estimated cost for contractors supporting the independent review of 
Navy’s surface combatant fleet is $2.34 million (GST inclusive) comprising $0.55 million for 
the Independent Analysis Team and $1.79 million for consulting advice.
2022-23 Supplementary Budget Estimates
Senator Simon Birmingham
Question Number: 1
Date question was tabled: 6 April 2023
Question
Senator BIRMINGHAM: So everyone received it yesterday. What briefings were provided to 
the Prime Minister and the minister yesterday on the content of the DSR? 
….
Mr Moriarty: I do know that Sir Angus, on behalf of himself and Professor Stephen Smith, 
who is unable to be here because of his duties representing us in London, presented the 
report to the Prime Minister and the Deputy Prime Minister. 
Senator BIRMINGHAM: Presented the report. Was there a period of time in which Sir Angus 
briefed them? 
Mr Moriarty: I'm not aware. 
Senator BIRMINGHAM: Minister, are you aware? 
Senator Wong: Sorry? I missed the question.
Senator BIRMINGHAM: As to whether they were actually briefed on the content of the 
report—or was it literally just a photo-op handing-over ceremony?
Senator Wong: By whom? I was not part of that. I don't know what discussions took place 
yesterday. 
Senator BIRMINGHAM: Could you take it on notice? 
Senator Wong: Sure. What's the question? Did Sir Angus brief — 
Senator BIRMINGHAM: The Prime Minister and/or the defence minister? If so, for how long? 
I'm trying to understand whether this was just a pic op or whether a proper briefing and 
discussion took place.
Answer
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000724
Last updated: 7 September 2023
      
             Defence Strategic Review Implementation
Key witness: Tom Hamilton
On 14 February 2023, Sir Angus Houston, AK, AFC (Retd) presented the Defence Strategic 
Review report to Government, on behalf of himself and His Excellency the Hon. Professor 
Stephen Smith, as the Independent Leads of the Review. 
During development of the Report, the Independent Leads briefed Government on their 
progress as required.
2022-23 Supplementary Budget Estimates
Senator Jacquie Lambie
Question Number: 9
Date question was tabled: 19 April 2023
Question
Senator LAMBIE: I am wondering if the members of the FADT committee could have an 
opportunity to do what we've done in the past: to go into the secret room if they want to 
review that document. That's worked very well in the past. No matter what sort of document 
it was, we could review that document and then come back later to that secret room if we 
had any questions. I would think that that would eliminate any doubt in here. I was 
wondering if we would be able to have that opportunity in the future. 
Senator Wong: That's a question about whether the government will allow this committee to 
look at the classified document? 
Senator LAMBIE: Yes. I'll just leave that with you. 
Senator Wong: I'll take that on notice. We received it yesterday. I've no doubt at the 
appropriate time there'll be briefings of the opposition and the committee in relation to the 
government's response. I understand the Deputy Prime Minister indicated yesterday the 
government will take some weeks to consider the review before we announce a non-
classified version of it along with our response to it, so he did say that yesterday.
Answer
Government is considering the Defence Strategic Review and its recommendations. Briefings 
for parliamentarians is a matter for government.
Prepared By: 
Cleared By: 
Name: Joanne Anderson
Name: Tom Hamilton
Position: Assistant Secretary DSR Implementation 
Position: Deputy Secretary
Division: Defence Strategic Review Implementation Task Force
Group/Service: Defence Strategic Review 
Phone: /  
s47E(d)
s22
 
Implementation Task Force
Phone:  
s47E(d)
/ 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000776
Last updated: 13 October 2023
Re-posture and Restructure of Army
Key witnesses: Lieutenant General Simon Stuart, Major General Richard Vagg.
Re-posture and Restructure of Army
Handling Note: 

Chief of Army, Lieutenant General Simon Stuart, to lead on re-posture and 
restructure of Army, with support from Head Land Capability, Major General Richard 
Vagg.
Key Messages

The Army mission and purpose is clear, enduring and essential to national defence – 
to generate land power for the Integrated Force in peace and war.

In response to the Defence Strategic Review, the Government directed Army be 
transformed and optimised for littoral manoeuvre operations by sea, land and air 
from Australia, with enhanced long-range fires.

The Defence Strategic Review noted land domain force structure design priorities 
must result in significant changes to Army force posture and structure. To realise 
these priorities, Army is shifting to a ‘focused’ force structure featuring combat 
brigades with defined roles and the relocation of some capabilities to northern 
Australia.

Initial changes to Army’s structure were implemented with effect from 1 July 2023. 
Further changes to Army’s structure and posture were directed and announced by 
Government on 28 September 2023.

Changes to unit structures and locations will be implemented through normal 
posting cycles. Defence acknowledges the impact these necessary changes will have 
on families and is working to minimise the impact through a phased approach, 
including engagement with state and local authorities.
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. 
Its headquarters will remain in Brisbane and it will command the following brigades:

The  1st Brigade – based in Darwin, will be a light combat brigade.

The  3rd Brigade – based in Townsville, will be an armoured combat brigade.

The  7th Brigade – based in Brisbane, will be a motorised combat brigade.

The  10th Brigade – based in Adelaide, will be raised as a long-range fires brigade 
(to be raised in Forces Command and transition to 1st (Australian) Division).

The 2nd (Australian) Division commands all security and response brigades in Australia, 
and will maintain largely part-time brigades around Australia. The Regional Force 
Surveillance Group will remain focused on security in northern Australia.

Forces Command will focus on the delivery of improved training and preparedness, 
scalable response options and the integration of new capabilities. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Brigadier Damien McLachlan
Position: Strategic Writer
Position: Acting Head Land Capability
Division: Army Land Capability Division
Group/Service: Army
Phone: s22
Phone: | 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000776
Last updated: 13 October 2023
Re-posture and Restructure of Army
Key witnesses: Lieutenant General Simon Stuart, Major General Richard Vagg.

The Army Aviation and Special Operations Command will continue on their current 
modernisation pathways.

The 5th Battalion and the 7th Battalion will be re-linked to become 5th/7th Battalion, 
the Royal Australian Regiment, and will be based in Darwin as part of the 1st Brigade.

The 1st Armoured Regiment will become an experimental unit, redesigned to deliver 
and integrate emerging technologies. It will remain in Adelaide as part of 9th Brigade.

Army equipment  will relocate 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 minor 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 (HIMARS) and 
Integrated Air and Missile Defence capabilities (NASAMS).
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 occur from 2025.

Soldiers affected by the changes will be offered a range of posting and career options 
to support them through the transition period.

Many soldiers may have the opportunity to gain skills in new capabilities or through 
other career opportunities across the ADF.

Defence Member and Family Support can assist with support during relocation and 
connection with community groups and local area resources.
Changes for the Northern Territory 

Army’s presence in the Northern Territory will remain steady over time.

The 1st Brigade will continue on its present transformation path to become a light 
combat brigade, structured for littoral manoeuvre operations including supporting the 
deployment of land-based long-range fires.

The Brigade will grow by around 100 personnel, with some personnel from 
7th Battalion, the Royal Australian Regiment, moving to Darwin from 2025 to form the 
5th/7th Battalion, the Royal Australian Regiment.

Attack helicopters will be relocated from Darwin to Townsville. Defence is developing 
options to establish a littoral manoeuvre capability in Darwin.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Brigadier Damien McLachlan
Position: Strategic Writer
Position: Acting Head Land Capability
Division: Army Land Capability Division
Group/Service: Army
Phone: s22
Phone:  
s47E(d)
| 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000776
Last updated: 13 October 2023
Re-posture and Restructure of Army
Key witnesses: Lieutenant General Simon Stuart, Major General Richard Vagg.
Changes for North Queensland

Army’s presence in Townsville will grow in personnel as a result of the relocation of 
armoured vehicles and attack helicopters.

3rd Brigade will continue to be equipped with all components of the combined arms 
fighting system including tanks, combat reconnaissance vehicles, infantry fighting 
vehicles and self-propelled artillery. 3rd Brigade will also continue to generate key 
components of Army’s amphibious forces.

Each infantry battalion in Townsville has a specific role, delivering complementary 
effects as part of the Integrated Force. The 3rd Battalion, Royal Australian Regiment, 
will receive the new Redback Infantry Fighting Vehicle from 2026, transitioning to a 
mechanised battalion.

Army’s Regional Force Surveillance Unit presence in Far North Queensland will not 
change.
Changes for South East Queensland

Army’s presence in Brisbane will not change significantly.

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 deliver Government direction, expand the 
ADF’s long-range strike capability and more effectively leverage South Australia’s 
Defence industry, science and technology and innovation ecosystem.

The 9th Brigade will remain a composite part-time/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 restructured and 
re-rolled as an innovation and experimental 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 fast track 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 elsewhere in Army 
as it assumes its new role.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Brigadier Damien McLachlan
Position: Strategic Writer
Position: Acting Head Land Capability
Division: Army Land Capability Division
Group/Service: Army
Phone: s22
Phone:  
s47E(d)
| 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000776
Last updated: 13 October 2023
Re-posture and Restructure of Army
Key witnesses: Lieutenant General Simon Stuart, Major General Richard Vagg.

Army will raise a new Fires Brigade – the 10th Brigade – in 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.

Army’s presence in Adelaide will initially decrease, and then increase as new long-range 
strike units come online. Personnel numbers in Adelaide will return to approximately 
current levels from around 2028.

Adelaide will host the 9th Brigade and 10th Brigade, and will remain a key hub for the 
Royal Australian Air Force and Defence Science and Technology Group, and a focus for 
Defence industry and Australia’s innovation ecosystem.
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 Defence 
Strategic Review recommendations by transitioning from a balanced force structure to 
a focused force structure featuring combat brigades with defined 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.

Continuing to serve in their location by transitioning to another service category.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Brigadier Damien McLachlan
Position: Strategic Writer
Position: Acting Head Land Capability
Division: Army Land Capability Division
Group/Service: Army
Phone: s22
Phone:  
s47E(d)
| 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000776
Last updated: 13 October 2023
Re-posture and Restructure of Army
Key witnesses: Lieutenant General Simon Stuart, Major General Richard Vagg.
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 
more 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.

The number of personnel in Townsville will remain below the current housing provision 
for at least three years. Army is aware of broader economic pressures surrounding 
housing, and, 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? 

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 infantry fighting vehicles and protected mobile fires be allocated? 

Self-propelled howitzers (Protected Mobile Fires) 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, as well as 
proximity to science and technology and Defence industry, which will support 
introduction into service and continued enhancement of this new capability.
Supporting Information
Questions on Notice 

No QoNs asked.
Freedom of Information (FOI) Requests
 No FOIs requested.
Recent Ministerial Comments 
 On 28 September 2023, the Deputy Prime Minister issued a media release announcing 
that the Government is implementing key recommendations of the Defence Strategic 
Review, restructuring and re-posturing Army in accordance with the land domain force 
structure design priorities outlined in the Review.
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Brigadier Damien McLachlan
Position: Strategic Writer
Position: Acting Head Land Capability
Division: Army Land Capability Division
Group/Service: Army
Phone: s22
Phone:  
s47E(d)
| 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000776
Last updated: 13 October 2023
Re-posture and Restructure of Army
Key witnesses: Lieutenant General Simon Stuart, Major General Richard Vagg.
Relevant Media Reporting 
 There has been significant and ongoing media coverage in relation to this decision in all 
major publications.
 On 11 October 2023, Jane’s Defence Weekly journalist Julian Kerr reported: “Australia 
unveils new order of battle to strengthen defence in the north.”
 On 28 September 2023, ABC News journalist, Andrew Greene, reported “Townsville 
emerges as new ‘capital’ of Army in Defence Force shake up.”
 On 28 September 2023, The North West Star reported “Australian troops head north in 
major army restructure.”
Division:
Army
PDR No: 
SB23-000776
Prepared by:
Cleared by Division Head: 
s47E(d)
Brigadier Damien McLachlan
Strategic Writer, Land Capability Division
Acting Head Land Capability
Mob: s22
Mob:  
s22
 
Ph: 
s47E(d)
Date: 10 October 2023
Date: 11 October 2023
Consultation:
N/A
Cleared by DSR:
Date: 12 October 2023
Major General Matthew Pearse
Head Plans and Capability integration
Defence Strategic Review Implementation Task Force
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 13 October 2023  
Major General Cheryl Pearce, Deputy Chief of Army
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Brigadier Damien McLachlan
Position: Strategic Writer
Position: Acting Head Land Capability
Division: Army Land Capability Division
Group/Service: Army
Phone: s22
Phone:  
s47E(d)
| 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000730
Last updated: 30 August 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 on the 2024 National Defence Strategy.
Key Messages

The Australian Government, through the National Defence Statement 2023, has 
directed Defence to develop Australia’s inaugural National Defence Strategy in 2024, 
which will be updated biennially.

The 2024 National Defence Strategy will encompass 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.

The Policy and Engagement Division of the Defence Strategic Review Implementation 
Task Force is leading the development of the 2024 National Defence Strategy. 
Talking Points

As directed by Government in the National Defence Statement 2023, Defence will 
move away from periodic White Papers to a National Defence Strategy that will be 
developed on a biennial basis. The first National Defence Strategy will be delivered in 
2024.

The 2024 National Defence Strategy will present to Government a fundamental 
reform of Australia’s defence strategy, planning, force generation, force posture, 
force structure, force preparedness, force employment, and international 
engagement, aligned with the intent and recommendations of the Defence 
Strategic Review.

The Defence Strategic Review found a shift away from intermittent White Papers to a 
biennial National Defence Strategy would allow Defence policy to keep pace with the 
rapidly evolving strategic environment, to respond effectively to the Government’s 
priorities and to provide clarity of process and approach to Defence and defence 
industry.

Deputy Secretary, Defence Strategic Review Implementation, as the responsible officer 
for the 2024 National Defence Strategy, has established the Policy and Engagement 
Division to lead the strategy’s development.

The Policy and Engagement Division is undertaking consultation across Defence and 
whole-of-government to inform the development of the 2024 National Defence 
Strategy. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Tom Hamilton
Position: Director Strategy and Policy
Position: Deputy Secretary
Division: Defence Strategic Review Policy and Engagement
Group/Service: Defence Strategic Review 
Phone:  
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/ 
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Implementation Task Force
Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000730
Last updated: 30 August 2023
              2024 National Defence Strategy
Key witness: Tom Hamilton

Defence has established a Band 3 Interdepartmental Committee, supported by a 
Band 2 committee, to ensure whole-of-government equities are considered as 
part of the development of the 2024 National Defence Strategy.

Defence has also established a Band 2/2 Star internal Defence committee.

As 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. 

A public version of the 2024 National Defence Strategy will be released in 2024 
following consideration by the Government.
Background 

On 14 February 2023 the Defence Strategic Review was handed to the Government by 
its Independent Leads, His Excellency the Hon Stephen Smith and Air Chief Marshal Sir 
Angus Houston AK AFC (Retd).

On 24 April 2023 the Government released the public version of the Defence Strategic 
Review, the Government’s response to the 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 produce a National Defence Strategy on a biennial 
basis, the first of which will be delivered in 2024.
Supporting Information
Questions on Notice 
 No QoNs asked.
Freedom of Information (FOI) Requests
 No FOIs requested.
Recent Ministerial Comments  
 On 24 August 2023 the Minister for Defence Industry made a statement remarking the 
Defence Strategic Review commits the Government to shift to a National Defence 
Strategy that will deliver a focused approached to Defence planning necessary for our 
strategic circumstances, interwoven within a broader national strategy of whole-of-
government statecraft and diplomacy in our region. 
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Tom Hamilton
Position: Director Strategy and Policy
Position: Deputy Secretary
Division: Defence Strategic Review Policy and Engagement
Group/Service: Defence Strategic Review 
Phone:  
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Implementation Task Force
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000730
Last updated: 30 August 2023
              2024 National Defence Strategy
Key witness: Tom Hamilton
Relevant Media Reporting
 On 17 August 2023, in The Strategist, Malcolm Davis wrote that the lead-up to the 
2024 National Defence Strategy is a crucial period for Defence that includes the release 
of Navy’s surface fleet requirements. He also wrote that the 2024 National Defence 
Strategy represents an opportunity for the ADF to embrace a new approach to power 
projection that fully exploits the unconstrained environments of the oceans, the air and 
space domains and the undersea domain.
 On 16 June 2023, in The Strategist, Courtney Stewart and Gregory MacCallion wrote 
that the 2024 National Defence Strategy should clarify Australia’s approach to 
deterrence.
Division: 
DSR Policy and Engagement
PDR No: 
SB23-000730
Prepared by:
Cleared by Division Head: (Band 2/2* level)
s47E(d)
Amy Hawkins
Director 
First Assistant Secretary 
Strategy and Policy
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: 28 August 2023
Date: 28 August 2023
Consultation:  N/A
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 30 August 2023  
Tom Hamilton
Deputy Secretary
Defence Strategic Review Implementation Task Force
Prepared By:
Cleared By: 
Name: s47E(d)
Name: Tom Hamilton
Position: Director Strategy and Policy
Position: Deputy Secretary
Division: Defence Strategic Review Policy and Engagement
Group/Service: Defence Strategic Review 
Phone:  
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/ 
s22
Implementation Task Force
Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton
DSR Surface Fleet Review
Handling Note:
 Secretary of Defence, Greg Moriarty and Chief of the Defence Force, GeneralAngus 
Campbell, AO, DSC to co-lead on the topic. 
 Tom Hamilton, Deputy Secretary, Defence Strategic Review Implementation 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.

The level of remuneration for members of the Independent Analysis Team is 
appropriate given their seniority and experience, and in recognition that the advice 
they are providing is on one of the nation’s largest and most strategically important 
endeavours.
Talking Points
What activities did the Independent Analysis Team undertake?

In line with its Terms of Reference, the Independent Analysis Team reviewed the 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 consisted of three eminent individuals, supported by a 
Strategic Advisor. Collectively, they have extensive experience in naval ship design, 
construction and delivery, maritime operation, force design, complex procurement, 
and national level project management.

The Independent Analysis Team members included:

Chair: Vice Admiral William Hilarides, United States Navy (Retd), 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).
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone: / 
s47E(d)
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Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton

The Strategic Advisor was Jim McDowell, former Chief Executive Officer of Nova 
Systems until 28 July 2023. Mr McDowell completed his Strategic Adviser role on 
28 July 2023. Following this, he commenced as the Deputy Secretary, Naval 
Shipbuilding and Sustainment on 31 July 2023.
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 leads.
What contracts are in place to support the independent analysis and how much will it cost?

As at 31 August 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 $2.15 million (GST exclusive), 
including services and reimbursable costs.

At Budget Estimates in May 2023, original costs were estimated to be $1.2 million (GST 
inclusive) ($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 $2.34 million (GST inclusive) ($2.13 million GST exclusive) 
and to reflect updated estimates as at 21June 2023 for the Independent Analysis Team 
members and strategic writer, and include estimates for the Strategic Advisor and 
research analysis provider.

As at 31 August 2023, the estimated value of engagements for the Independent 
Analysis Team members, including services and reimbursable costs, is approximately 
$0.51 million(GST exclusive). This includes existing contracts for two members 
(Vice Admiral Hilarides and Ms Rosemary Huxtable), and one member                         
(Vice Admiral Mayer) who is engaged as a reservist. 

The estimated value for the strategic advisor is $119,000 (GST exclusive), strategic 
modeller is $652,966 (GST exclusive), the strategic writer is $219,000 (GST exclusive) 
and research and analysis provider $645,539 (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. 
How much have you spent on contractors and consultants supporting the independent 
analysis?

As at 31 August 2023 total expenditure for the Independent Analysis Team members’ 
services and reimbursables was approximately $0.29 million (GST exclusive).

A further $0.49 million (GST exclusive) has been spent on other contractor/consultant 
support.
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
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/  
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Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton
Description
Estimated contract value 
Total expenditure as at 
(GST exclusive)
31 August 23 (GST exclusive)
Independent Analysis Team 
$0.51 million
$0.29 million
members
Other contractor or consultant 
$1.64 million
$0.49 million
support
Total
$2.15 million
$0.78 million
How are confidentiality and conflicts of interest being managed for the Independent Analysis 
Team members?

Appropriate security, confidentiality and conflict of interest arrangements are in place 
and are reviewed regularly.

Relevant foreign government approvals are also in place to support these 
engagements.
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 
weekly Protected and fortnightly classified meetings, with additional meetings held 
with Defence Strategic Review 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/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, Independent Analysis Team members         
(Ms Rosemary Huxtable and Vice Admiral Mayer) undertook site visits to South 
Australian and Western Australian shipyards (Ms Rosemary Huxtable) to observe 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.
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
s47E(d)
/  
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Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton

The Independent Analysis Team received and considered an additional 16 unsolicited 
proposals from over 12 companies, of which some provided multiple proposals. As they 
are commercial-in-confidence, these cannot be discussed.

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 has Defence supported the independent analysis?

Defence supported the Independent Analysis Team by coordinating briefings from 
senior officials; providing intelligence and capability assessments; and facilitating 
operational analysis and external consultation.

Secretariat functions and costs associated with supporting Team’s operation are 
managed by Defence.
What is the status of the Report?

The report was provided to the Deputy Prime Minister on 29 September 2023.

s47C

s47C
 
 
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.
Why have you engaged 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, 
United States Navy (Retd), has extensive experience in shipbuilding and submarine 
programs.

Vice Admiral Hilarides, United States Navy (Retd), also has a thorough understanding of 
Australia’s naval requirements and programs, and 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. 
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
s47E(d)
/  
s22
Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton
Why are you paying United States advisors and other Independent Analysis Team members 
so much and is it value for money?

Remuneration for these individuals is appropriate, given their seniority and experience, 
and in recognition that they are conducting analysis of one of the nation’s largest and 
most strategically important endeavours.

Collectively, they have extensive experience in naval ship design, construction and 
delivery, maritime operations, force design, complex procurement, and national level 
project management.

Chair of the Independent Analysis Team, Vice Admiral Hilarides, United States Navy 
(Ret’d), has extensive experience in shipbuilding and submarine programs.

Vice Admiral Hilarides, United States Navy (Ret’d), also has a thorough understanding 
of Australia’s naval requirements and programs, and 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. 
Timeline of Significant Events.
Date
Action
29 September 2023
Independent Analysis Report submitted to the Deputy Prime Minister.
Independent Analysis Team conducted a Defence Industry Engagement 
9 June 2023
Session.
Government publicly released the Defence Strategic Review and advised of 
24 April 2023
the independent analysis of Navy’s surface combatant fleet. 
22 March 2023
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
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.
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
s47E(d)
/  
s22
Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton
Freedom of Information (FOI) Requests

On 2 October 2023, Andrew Tillett made a request seeking access to submissions 
lodged by 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.
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 
and will respond to them 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.

The Prime Minister, Deputy Prime Minister and Minister for Defence Industry outlined 
the independent analysis into Navy’s surface combatant fleet at the launch of the 
Defence Strategic Review on 24 April 2023.
Relevant Media Reporting

On 5 October 2023, The Age published an article by Matthew Knott titled Navy 
firepower boost: Review wants more destroyers, fewer frigates, discussing the plan 
considered by Government.  

On 25 August 2023, Asia Pacific Defence Reporter published an article by 
Kym Bergmann titled RAN Surface Fleet – Where is the money coming from? 
questioning if the Review will be made public. 

On 14 August 2023, the Australian Strategic Policy Institute published a report by 
former Chief of Navy, Vice Admiral David Shackleton (Retd) titled The future of the 
RAN’s surface combatant force, discussing fleet composition. 

On 8 August 2023, the Australian Strategic Policy Institute published a report by 
Peter Dean titled Corvettes and the RAN surface fleet debate providing a rebuttal to 
Rowan Moffitt’s report. 

On 3 August 2023, the Australian Strategic Policy Institute published a report by former 
Deputy Chief of Navy, Rear Admiral Rowan Moffitt (Retd) titled Corvettes are not an 
option for Australia commenting on Anzacs as “underarmed” and misjudgement of the 
Hobart class as “destroyers though they are frigates”. 

On 28 July 2023, the Australian Strategic Policy Institute published a report by 
Peter Dean titled To corvette or to not corvette: the defence strategic review and the 
Tier 2 surface combatant questioning “what is a Tier 2 combatant”.
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
s47E(d)
/  
s22
Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton

On 8 June 2023, the Australian Strategic Policy Institute published a report by 
Richard Dunley titled Weighing the risks in naval ship procurement, recommending the 
Review consider the balance of risk in acquisition and sustainment. 

On 25 May 2023, The Australian reported Do we have a viable military strategy by 
Marcus Hellyer, regarding the costing and financial viability of a new fleet. 

On 16 May 2023, Defence Connect published Industry makes renewed calls for 
expanded capabilities by Stephen Kuper, regarding “Defence industry is holding 
governments feet to the fire” to meet the requirements of the Indo-Pacific Theatre. 

On 9 May 2023, Defence Connect published With another surface fleet review, what 
sort of fleet do we need by Stephen Kuper, discussing the strategic environment, fleet 
composition and the Defence Strategic Review, and recommending reducing the 
constabulary fleet. 

On 1 May 2023, the Australian Strategic Policy Institute published a report by Jennifer 
Parker titled ’National defence’ and the navy commenting on acquisition of nuclear 
submarines warranting a rethink of the surface fleet. 

On 27 April 2023, The Sydney Morning Herald reported that various retired senior 
United States military officers have been paid up to $7,500 a day for advice. Australia 
pays former US officials $7k a day for advice

On 27 April 2023, ABC News reported that several retired US military officers are 
contracted by Defence and commented on their remuneration. Retired US admirals 
charging Australian taxpayers thousands of dollars per day as defence consultants

On 25 April 2023, The Australian reported that Vice Admiral Hilarides, United States 
Navy (Retd) “won a lucrative Australian contract as the head of a review that will 
determine the future size and structure of the Royal Australia Navy”. Defence Strategic 
Review: US admiral William Hilarides wins plum job of reviewing Australian fleet

On 25 April 2023, ABC News reported that members of the Independent Analysis Team 
will conduct the analysis into the surface fleet and comments on the remuneration of 
Vice Admiral Hilarides, United States Navy (Retd). Retired US Admiral who has 
previously advised Australia on shipbuilding to lead fresh review on navy’s warship fleet
Division:
Associate Secretary
PDR No: 
SB23-000738
Prepared by:
Cleared by Division Head: 
Victoria Bergmann
Ciril Karo
Assistant Secretary 
First Assistant Secretary 
Naval Shipbuilding Expert Advisory Panel
DSR Implementation
Mob:  
s22
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 18 October 2023
Date:   October 2023
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
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/  
s22
Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton
Consultation: N/A
Cleared by DFG:
Date: October 2023
Steven Groves Chief Finance Officer
 Defence Finance Group
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 19 October 2023 
Tom Hamilton
Deputy Secretary 
Defence Strategic Review Implementation
Questions on notice referred to within this brief:
2023-24 Budget Estimates
Senator the Hon Simon Birmingham
Question Number: 63
Date question was tabled: 31 May 2023
Question
Senator BIRMINGHAM: Are there separately defined terms of reference or is it purely a case 
of pointing the reviewers to the Defence Strategic Review and the government response?
Mr Hamilton: We have provided the independent analysis team with more detailed terms of 
reference based on the content of the Defence Strategic Review, including material that was 
in the original classified Defence Strategic Review.
Senator BIRMINGHAM: By the second part of that answer, you're indicating that there's 
classified material in those terms of reference. Is there a public version of them or not?
Mr Hamilton: There isn't at the moment, but let's just check to see what is in the public 
domain.
Answer
There is no public version of the Terms of Reference for the review of Navy's Surface 
Combatant Fleet Capability.
2023-24 Budget Estimates
Senator the Hon Simon Birmingham
Question Number: 64
Date question was tabled: 31 May 2023
Question
Senator BIRMINGHAM: Can I turn to the surface fleet review. I was absent for a while 
yesterday attending other events, so, if any of this was covered, I apologise, but I don't think 
it was. Are there terms of reference published for the surface fleet review?
Senator BIRMINGHAM: Adelaide's a great place to host any event, even one that's foreign to 
us. To come back to the serious matters here, what's the total budget for the review?
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
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Supplementary Estimates October 2023                                                                                         PDR No: SB23-000738
Last updated: 19 October 2023
                                                   Surface Fleet Review
Key witnesses: Greg Moriarty; General Angus Campbell; Tom Hamilton
Mr Hamilton: My understanding is the cost is estimated at just over $1 million, but let me 
check to see if I have some more information on that. I think that's right.
Senator BIRMINGHAM: Are you able to break that down at all in terms of cost elements, 
reviewers, any additional consultancy or contracting advice or the like?
Mr Hamilton: I will see if I have that.
Mr Moriarty: I think that comprises the team members' costs, modelling costs, somebody to 
assist the team with pulling together the report. Some of it includes services and 
reimbursables. I think that's all I've got at the moment.
Senator BIRMINGHAM: If you can provide details of the costs and break them down further 
on notice, that would be great.
Answer
As at 21 June 2023, the estimated cost for contractors supporting the independent review of 
Navy’s surface combatant fleet is $2.34 million (GST inclusive) comprising $0.55 million for 
the Independent Analysis Team and $1.79 million for consulting advice (including strategic 
advice, modelling, capability analysis, report drafting support and reimbursables).
Prepared By:
Cleared By: 
Name: Victoria Bergmann
Name: Tom Hamilton
Position: Assistant Secretary Naval Shipbuilding Expert 
Position: Deputy Secretary Defence Strategic Review 
Advisory Panel Secretariat
Implementation
Division: Associate Secretary Group
Group/Service: Associate Secretary Group
Phone:  
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/  
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Phone:  
s47E(d)
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000734  
Last updated: 23 October 2023 
 
 
 
 
         Northern Bases Resilience 
Key witnesses: Celia Perkins; Pat Sowry 
 
Northern Bases Resilience 
Handling Note:  

Deputy Secretary, Security and Estate, Celia Perkins to lead on northern bases 
resilience. 

Acting First Assistant, Secretary Infrastructure, Pat Sowry to lead on matters relating 
to specific base upgrades.  
 
Key Messages 

The Government agreed in-principle to the Defence Strategic Review (DSR) 
recommendation that upgrades and development of our northern network of bases, 
ports and barracks should commence immediately.  

Defence is on track to achieve the $3.8 billion investment to the network of northern 
bases announced by the Deputy Prime Minister in April 2023. 

Defence is accelerating works in northern Australia as a matter of priority. 

Base resilience is embedded in all infrastructure projects according to the need and 
priorities of that base. 
Talking Points 

A key priority area identified in the DSR is improving the ability of the Australian 
Defence Force to operate from Australia’s northern bases. 

In May 2023, following the release of the DSR, the Government announced $3.8 billion 
in northern base infrastructure across the next four years which includes: 

$2 billion for critical airbases stretching from RAAF Base Learmonth, Cocos 
Keeling Islands, and throughout Darwin and north Queensland;  

$1 billion for upgrades to land, communications and joint estate capabilities; and 

$600 million in maritime estate investments including HMAS Coonawarra, 
HMAS Cairns and Harold E Holt Communications Station. 

$200 million towards the acceleration of other projects 
Proposed expenditure 

The 2023–24 Defence Portfolio Budget Statement outlines an investment of $1.3 billion 
across northern base infrastructure. 

Over the Forward Estimates, expenditure in northern base infrastructure is set to 
achieve approximately $4.5 billion. 
Prepared By: 
Cleared By:  
 
Name: Charles Mangion 
Name: Dan Fankhauser 
Position: Acting Assistant Secretary, Estate Planning 
Position: First Assistant Secretary Defence Estate Audit 
Division: Infrastructure 
Group/Service: Security and Estate  
Phone: s47E(d)
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000734  
Last updated: 23 October 2023 
 
 
 
 
         Northern Bases Resilience 
Key witnesses: Celia Perkins; Pat Sowry 
 

As part of approved funding in the Forward Estimates (2023–24 to 2026–27) key bases 
and facilities will be upgraded including:  

RAAF Tindal will receive $1.2 billion to support current and new capabilities such 
as the MQ-4C Triton; 

Cocos (Keeling) Islands will receive $508 million for airfield upgrades to enable  
P-8A Poseidon maritime surveillance operations from our remote island 
territories and throughout the northern Indian Ocean; and 

$298 million will be spent at HMAS Cairns. 
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.   

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 
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  
˜
No FOIs requested. 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Charles Mangion 
Name: Dan Fankhauser 
Position: Acting Assistant Secretary, Estate Planning 
Position: First Assistant Secretary Defence Estate Audit 
Division: Infrastructure 
Group/Service: Security and Estate  
Phone: s47E(d)
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000734  
Last updated: 23 October 2023 
 
 
 
 
         Northern Bases Resilience 
Key witnesses: Celia Perkins; Pat Sowry 
 
Recent Ministerial Comments   
˜
The Deputy Prime Minister and Minister for Defence and the Assistant Minister for 
Defence released a Joint Ministerial Media Release on 27 April 2023, titled 
Strengthening Australia’s Northern Bases. 
Relevant Media Reporting  
˜
On 18 August 2023, in Defence Connect, Michael Shoebridge wrote that the recent 
TALISMAN SABRE exercise provided critical lessons on the limitations of Australian 
facilities and supply chains to support military operations. Talisman Sabre 2023: Big 
lessons from a large exercise - Defence Connect 
˜
On 5 August 2023, in the Newcastle Herald, Bradley Perrett called for more urgency in 
upgrading our northern airbases. ‘Urgent' upgrades haven't started 
˜
On 29 July 2023, in the Western Australian, Katina Curtis highlighted the strategic 
importance of strengthening Defence bases in Western Australia’s north. How this map 
shows why WA is nation's first line of defence 
˜
On 21 July2023, in the Sydney Morning Herald, Latika Bourke reported on Air Marshal 
Rob Chipman’s statement that he is not confident the military could defence its 
northern bases if attacked. Regional security: RAAF chief Air Marshal Robert Chipman 
admits Australia can’t guarantee it can defend its military bases (smh.com.au) 
˜
On 20 July 2023, in the Interpreter, Luke Gosling wrote on the Australian Government’s 
rational for hardening northern bases. The north’s defence of Australia | Lowy Institute 
˜
On 5 July 2023, in Defence Connect, Stephen Kuper questioned if it was time to shift 
the posture of Australia’s bases from passive to active players in their own defence. 
Active measures: Is it time to shift our northern bases from passive to active 
defenders? - Defence Connect 
˜
Australian media has also reported extensively on Cocos (Keeling) Islands, and concerns 
of locals about Defence plans to extend the runway to take larger military aircraft. 
˜
On 2 September 2023, on ABC news, Sinead Mangan reported that local residents have 
concerns over Defence upgrades to the Cocos Islands runway. $500m Defence upgrade 
of Cocos Islands runway has locals worried for their futures - ABC News 
 
 
Prepared By: 
Cleared By:  
 
Name: Charles Mangion 
Name: Dan Fankhauser 
Position: Acting Assistant Secretary, Estate Planning 
Position: First Assistant Secretary Defence Estate Audit 
Division: Infrastructure 
Group/Service: Security and Estate  
Phone: s47E(d)
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000734  
Last updated: 23 October 2023 
 
 
 
 
         Northern Bases Resilience 
Key witnesses: Celia Perkins; Pat Sowry 
 
Division:   
Infrastructure 
PDR No:  
SB23-000734 
Prepared by: 
Cleared by Division Head: (Band 2/2* level) 
Charles Mangion 
Dan Fankhauser 
Acting Assistant Secretary 
First Assistant Secretary Defence Estate 
Estate Planning 
Audit 
Ph: s47E(d)
 
Mob: s22
 
Date: 5 September 2023 
Date: 23 October 2023    
Consultation:   
 
Air Commodore David Houghton, OAM 
Date:  29 August 2023   
Director-General Logistics 
Mob: s22
   Ph: s47E(d)
 
Air Force 
Cleared by Defence Finance Group: 
Date: 5 September 2023  
Jennifer Makunde 
Acting Assistant Secretary Finance 
Finance Enabling Groups 
Mob:  
s22
  Ph: s47E(d)
 
 
Cleared by Deputy Secretary: 
Date: 23 October 2023   
Celia Perkins, Deputy Secretary Security and Estate 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Charles Mangion 
Name: Dan Fankhauser 
Position: Acting Assistant Secretary, Estate Planning 
Position: First Assistant Secretary Defence Estate Audit 
Division: Infrastructure 
Group/Service: Security and Estate  
Phone: s47E(d)
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000739  
Last updated: 20 October 2023 
 
 
 
 
 
  Defence Estate Audit 
Key witnesses: Celia Perkins; Dan Fankhauser 
Defence Estate Audit 
Handling Note:  

Deputy Secretary Security and Estate, Celia Perkins and to lead on matters relating to 
the Defence Estate Audit. 

First Assistant Secretary, Defence Estate Audit, Dan Fankhauser to support on 
matters relating to the Defence Estate Audit.  
 
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, Mr Jim Miller and Ms Jan Mason, have been appointed to 
oversee the conduct and delivery of the audit. 

The audit report is due to Government by the end of 2023.
Talking Points 

In response to the Defence Strategic Review, an enterprise-wide audit is being 
undertaken to baseline Defence estate and infrastructure, including protective security 
and work health and safety. 

The audit will make recommendations 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.   

Two independent leads, Mr Miller and Ms Mason have been appointed to oversee the 
delivery of the audit.  

Mr Miller is the current Chair of the Infrastructure Victoria Board; and  

Ms Mason is a former Managing Director of Defence Housing Australia.  

Both leads bring a wealth of experience from their previous roles across the public and 
private sectors. 

Given its scale and scope, the audit will form 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: Are the independent co-leads conducting site visits? 

To date, the independent co-leads have visited a number of Defence bases and facilities 
across multiple states and territories, with more planned before the end of 2023.  
 
 
Prepared By: 
Cleared By:  
 
Name: 
 
Name: Dan Fankhauser 
s47E(d
Position: Executive Officer 
Position: First Assistant Secretary Defence Estate Audit 
)
Division: Defence Estate Audit 
Group/Service: Security and Estate Group 
Phone: s47E(d)
 / 
 
Phone: 
/ 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000739  
Last updated: 20 October 2023 
 
 
 
 
 
  Defence Estate Audit 
Key witnesses: Celia Perkins; Dan Fankhauser 
If pressed: Why are the Terms of Reference not publically available? 

The Deputy Prime Minister agreed the audit Terms of Reference on 1 August 2023.   

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.   

Defence has launched a webpage dedicated to the Defence Estate Audit on our 
website.  
If pressed: Will the report be made publically available?  

This will be subject to further Government consideration. 
If pressed: Will the report recommend base closures? 

The audit will assess whether Defence’s estate holdings reflect its contemporary needs, 
particularly in high-density urban areas and in light of the Government’s direction to 
prioritise investment in Australia’s northern network of bases, ports and barracks. 
If pressed: Will Defence sites be made available for affordable housing? 

Not all Defence sites are suited for residential development. The audit will consider 
alternate use options for sites which are underutilised or present commercial 
opportunities to reinvest in Defence capability. 

Opportunities to achieve other Government policy priorities, including social and 
economic outcomes, will be considered. 
If pressed: Will Defence sites be handed over for community use? 

Any disposal of surplus Defence land will be managed in accordance with the 
Commonwealth Property Disposal Policy. Surplus land is normally sold on the open 
market at full market value, unless otherwise agreed by the Minister for Finance. 
If pressed: What consultation have you done with State and Territory Governments?  

Targeted consultations are underway across Commonwealth, state and territory 
governments as part of the audit.  
If pressed:  What external stakeholder consultation have you done? 

The independent co-leads have participated in a number of external stakeholder 
engagements with Commonwealth, State and Territory officials, local government 
representatives, service providers and industry associations.   

Stakeholder engagements occur through a variety of means, including roundtable 
discussions, one-on-one meetings, virtual forums and site visits.   Additional 
consultations are planned over the weeks ahead. 
 
 
 
Prepared By: 
Cleared By:  
 
Name: 
 
Name: Dan Fankhauser 
s47E(d
Position: Executive Officer 
Position: First Assistant Secretary Defence Estate Audit 
)
Division: Defence Estate Audit 
Group/Service: Security and Estate Group 
Phone: s47E(d)
 / 
 
Phone: 
s22
s47E(d)
/ 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000739  
Last updated: 20 October 2023 
 
 
 
 
 
  Defence Estate Audit 
Key witnesses: Celia Perkins; Dan Fankhauser 
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. 

The audit will consider the extent to which heritage obligations impact the practical use 
of the Defence estate, or the realisation of commercial opportunities. 
If pressed: Will the audit take public submissions? 

Formal submissions are not being sought noting public consultation was undertaken as 
part of the Defence Strategic Review.  

The independent co-leads will engage with a wide variety of stakeholders as part of the 
audit process. 
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 unique blend of 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 is $297,000. 

This total value is comprised of a fixed-fee component payable on completion of 
defined milestones, a Goods and Services Tax (GST) element and a provision for 
reimbursable expenses. 

The contracts were published on AusTender on 14 September 2023. 
Background  

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 by the end of 2023.  

On 1 August 2023, the Government approved the appointment of the two independent 
co-leads, Mr Miller Ms Jan Mason. 

The independent co-leads have undertaken a number of site visits across all States and 
Territories, with the exception of Queensland which is scheduled for early November. 

Internal and external stakeholder consultation with other Government departments 
and state and territory representatives remains ongoing. 
 
Prepared By: 
Cleared By:  
 
Name: 
 
Name: Dan Fankhauser 
s47E(d
Position: Executive Officer 
Position: First Assistant Secretary Defence Estate Audit 
)
Division: Defence Estate Audit 
Group/Service: Security and Estate Group 
Phone: s47E(d)
 / 
 
Phone: 
s22
s47E(d)
/ 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000739  
Last updated: 20 October 2023 
 
 
 
 
 
  Defence Estate Audit 
Key witnesses: Celia Perkins; Dan Fankhauser 
Supporting Information 
Questions on Notice  
˜
No QoNs asked.
Freedom of Information (FOI) Requests  
˜
No FOIs requested. 
Recent Ministerial Comments   
˜
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   
˜
In late August 2023, the commencement of the Defence Estate Audit received 
widespread media reporting from various sources. 
˜
On 29 August 2023, in the Australian Financial Review, journalist Campbell Kwan 
identified Defence sites in major capital cities including Victoria Barracks Melbourne, 
Sydney and Brisbane could generate $1.3 billion if sold.  
˜
On 29 August 2023, in the Canberra Times, journalist Dominic Gianni identified 
properties in sough after area of Australia up for consideration as part of the Defence 
Estate Audit.  
˜
On 28 August 2023, in the West Australian, journalist Dominic Giannini wrote that the 
Defence Estate Audit will aim to ensure Australian bases and infrastructure are up to 
scratch. 
˜
On 28 August 2023, in the Australian Financial Review, journalist Ronald Mizen wrote 
that some of Australia’s most prized real estate could soon become available pending 
the outcome of the Defence Estate Audit.  
 
 
Prepared By: 
Cleared By:  
 
Name: 
 
Name: Dan Fankhauser 
s47E(d
Position: Executive Officer 
Position: First Assistant Secretary Defence Estate Audit 
)
Division: Defence Estate Audit 
Group/Service: Security and Estate Group 
Phone: s47E(d)
 / 
 
Phone: 
s22
s47E(d)
/ 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000739  
Last updated: 20 October 2023 
 
 
 
 
 
  Defence Estate Audit 
Key witnesses: Celia Perkins; Dan Fankhauser 
Division:   
Defence Estate Audit 
PDR No:  
SB23-000739 
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: 28 August 2023  
Date: 30 August 2023   
Cleared by DSR: 
Date: 28 August 2023 
Amy Hawkins 
First Assistant Secretary Policy and Engagement 
Defence Strategic Review Implementation   
Cleared by Deputy Secretary: 
Date: 20 October 2023  
Celia Perkins, Deputy Secretary Security and Estate  
 
 
Prepared By: 
Cleared By:  
 
Name: 
 
Name: Dan Fankhauser 
s47E(d
Position: Executive Officer 
Position: First Assistant Secretary Defence Estate Audit 
)
Division: Defence Estate Audit 
Group/Service: Security and Estate Group 
Phone: s47E(d)
 / 
 
Phone: 
s22
s47E(d)
/ 
 
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Supplementary Budget Estimates October 2023 
 PDR No: SB23-000852 
Last updated: 12 October 2023 
 
 
 
 
 
 Reforming Defence Legislation 
Key witnesses: Mr Matt Yannopoulos; Mr Adrian D’Amico 
Reforming Defence Legislation 
Handling Note: 
˜ Associate Secretary, Matt Yannopoulos to lead. 
˜ Chief Counsel, Adrian D’Amico to support. 
 
Key Messages 
 The Government has agreed that Defence should develop potential reform to the 
Defence Act 1903 and related legislation to better position Defence as an agile, 
integrated, war-fighting enterprise. 
 Its introduction follows conclusion of a public consultation and a targeted stakeholder 
engagement program run throughout 2023.
Talking Points 
If pressed: Why do we need to reform now? 

Defence requires an agile, scalable and future-focused legal framework to effectively 
shape Australia’s strategic environment, deter actions against the national interest and, 
when required, respond swiftly with military force. 

The Defence Act 1903 and related legislation needs to be modernised to allow Defence 
to keep pace with advanced and emerging capabilities and new technologies, and to 
respond to current and future strategic challenges. 

A range of factors are impacting the effectiveness of our existing laws, including: 

increasing strategic competition and uncertainty; 

the changing character of warfare; 

rapid advancement of new and emerging technologies; 

impacts of globalisation and the associated changes to and expansion of 
traditional geographic boundaries. 
If pressed: How do these reforms relate to other Government priorities and reform initiatives? 

These reforms are focused on enabling Defence as a fully integrated war-fighting 
enterprise, to ensure that Defence is better positioned to defend our national interests 
and to meet the challenges of a rapidly changing strategic environment. 

The reforms will complement and empower key Australian Government defence 
priorities and the ongoing development and integration of new and emerging 
technologies and advanced capabilities. 

The reforms will enhance Australia’s sovereignty and contribute to broader 
Government objectives and efforts around cultivating a sovereign industrial base. 
Prepared By: 
Cleared By:  
 
Name:  
s47E(d)
Name: Matt Yannopoulos 
Position: Director, Legislation and Legal Reform 
Position: Associate Secretary 
Division: Defence Legal 
Group/Service: Associate Secretary Group 
Phone: /  
s47E(d)
s22
 
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Supplementary Budget Estimates October 2023 
 PDR No: SB23-000852 
Last updated: 12 October 2023 
 
 
 
 
 
 Reforming Defence Legislation 
Key witnesses: Mr Matt Yannopoulos; Mr Adrian D’Amico 

Implementing the reforms will provide a more robust domestic legal foundation for 
Australia’s defence and security, supporting greater interoperability between Defence 
and its domestic and international partners. 
If pressed: Will the 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 Committee’s report was tabled on 31 March 2023. 

On 8 August 2023 the Government released its response to the Committee’s report. 
The response included agreement to establish a new Joint Statutory Committee on 
Defence and work is underway separately to determine these implementation details. 
If pressed: Will there be any impacts on defence industry? 

The aim of the reforms is to recognise defence industry as an important and integral 
part of the defence workforce. We want to make it easier for defence industry to 
provide the important support services to Defence. 
If pressed: Will the reforms affect ADF members and veterans? 

ADF members will be able to train more effectively (more closely in line with how they 
will fight), exercise with international counterparts more effectively, and be able to 
have and use more advanced equipment and technologies supported by a robust legal 
framework. This will impart greater confidence in the conduct and upskilling of our war-
fighters and Australia’s military capabilities. 

Veteran’s compensation and entitlements are not within the scope of these reforms. 
Defence continues to participate in the Royal Commission into Defence and Veteran 
Suicide and will consider any recommendations in due course. 
If pressed: Will the reforms affect First Nations communities? 

We do not anticipate any specific impact on First Nations communities. With the 
support of the National Indigenous Australians Agency, we have undertaken targeted 
consultation to ensure the interests of Indigenous Australians are considered in the 
reforms. 
If pressed: How wil  Defence progress the reforms? 

Defence has established a dedicated team co-led by Mr Adrian D’Amico, Chief Counsel 
and Major General Gavin Duncan, DSC, AM to drive the reforms. 

The team consists of APS staff, permanent and reserve ADF personnel and contractors 
working in a variety of full and part-time capacities. 

The number of people working on the project will fluctuate over the development and 
delivery of the reforms, to meet project work demands. 
 
Prepared By: 
Cleared By:  
 
Name:  
s47E(d)
Name: Matt Yannopoulos 
Position: Director, Legislation and Legal Reform 
Position: Associate Secretary 
Division: Defence Legal 
Group/Service: Associate Secretary Group 
Phone: /  
s47E(d)
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Phone: / 
s47E(d)
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Supplementary Budget Estimates October 2023 
 PDR No: SB23-000852 
Last updated: 12 October 2023 
 
 
 
 
 
 Reforming Defence Legislation 
Key witnesses: Mr Matt Yannopoulos; Mr Adrian D’Amico 
If pressed: Has public consultation been undertaken? 

Defence conducted a 6-week period of public consultation, from 9 March to  
21 April 2023. This provided an initial call for input on the scope and direction of the 
reforms. 

Defence continues to offer opportunities for interested stakeholders to shape the 
reforms as they mature. 

Defence continues to engage in targeted consultation with groups who have a unique 
interest in the reforms, including industry partners, First Nations community groups, 
veteran groups, and State and Territory governments. 
If pressed: Will the reforms override State and Territory laws/international law? 

The initial scope of the reforms is outlined in the public consultation paper, and 
continues to mature as we consider the feedback provided in the public submissions 
and through targeted consultation. 
If pressed: Will the reforms consider the security risks posed by climate change? 

The proposed reforms look beyond the strategic risks posed in the next decade. They 
seek to create a flexible, focused, fit-for-purpose framework that can adapt to changes 
in our strategic environment, including those posed by climate change. 
Background 

Government has agreed that Defence will develop legislation to reform the  
Defence Act 1903 and related legislation to better position Defence as an agile, 
integrated, war-fighting enterprise. On 9 March 2023, the Government announced the 
reforms through the release of a public consultation paper and requests for public 
submissions. 

The proposed reforms will ensure that the domestic legal framework is focussed, 
flexible and fit for purpose by: 

supporting the full range of activities needed to generate, sustain and use 
Defence capabilities in order to defend Australia and its national interests; 

providing a more comprehensive approach to defence security, shifting the focus 
from the security of Defence premises to the security of both tangible and 
intangible defence capabilities; and 

enhancing interoperability between Defence and Australia’s international 
partners, allowing Defence to learn, collaborate and achieve far more collectively 
than it could on its own.  

The Bill’s development continues to be informed by a program of targeted engagement 
and the review of public submissions. 
 
 
Prepared By: 
Cleared By:  
 
Name:  
s47E(d)
Name: Matt Yannopoulos 
Position: Director, Legislation and Legal Reform 
Position: Associate Secretary 
Division: Defence Legal 
Group/Service: Associate Secretary Group 
Phone: /  
s47E(d)
s22
 
Phone: / 
s47E(d)
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023 
 PDR No: SB23-000852 
Last updated: 12 October 2023 
 
 
 
 
 
 Reforming Defence Legislation 
Key witnesses: Mr Matt Yannopoulos; Mr Adrian D’Amico 
Supporting Information 
Questions on Notice 
˜
No QoNs asked. 
Freedom of Information (FOI) Requests 
˜
No FOI requests made. 
Recent Ministerial Comments 
˜
On 9 March 2023, the Assistant Minister for Defence was interviewed on ABC News 
Afternoon Briefing where he responded to questions following the release of the public 
consultation paper.  
˜
On 9 March 2023, the Assistant Minister for Defence published a media release 
following the announcement of the public consultation paper. 
Relevant Media Reporting  
˜
Nil 
 
Division: 
Defence Legal 
PDR No:  
SB23-000852 
Prepared by: 
Cleared by Division Head: (Band 2/2* level)  
s47E(d)
 
Adrian D’Amico 
Director 
Chief Counsel 
Legislation and Legal Reform 
Defence Legal 
Office of General Counsel - Defence 
 
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Mob:  
s22
 
Ph: 
s47E(d)
 
Date: 4 September 2023 
Date: 10 October 2023 
Consultation: N/A 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 3 October 2023   
Matt Yannopoulos 
Associate Secretary 
Associate Secretary Group 
 
Prepared By: 
Cleared By:  
 
Name:  
s47E(d)
Name: Matt Yannopoulos 
Position: Director, Legislation and Legal Reform 
Position: Associate Secretary 
Division: Defence Legal 
Group/Service: Associate Secretary Group 
Phone: /  
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 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 Division, Bernard Philip to support.
Key Messages

The Alliance with the United States is unprecedented in scale, scope and significance. 

It fundamentally strengthens, rather than detracts from, Australian sovereignty. It 
affords us access to capability, technology and intelligence we could not acquire on our 
own. 

Our partnership is underpinned by a shared vision for a secure and resilient Indo-Pacific 
and deep levels of defence engagement, including on operations and exercises; 
capability innovation; industry collaboration; intelligence; and science and technology. 

As demonstrated by the productive Australia-United States Ministerial Consultations in 
July 2023, Australia and the United States are evolving the Alliance to effectively 
respond to the deteriorating security landscape.
Talking Points
Does Enhanced Force Posture Cooperation with the United States dilute Australian 
sovereignty?
 No. The Australia-United States Alliance fundamentally strengthens, rather than 
detracts from, our sovereignty.

It affords us access to capability, technology and intelligence we could not 
acquire on our own. 

It expands Australia’s strategic options, makes us less vulnerable to coercive 
action and enables our pursuit of national security interests far beyond what we 
could achieve alone.
 The Force Posture Agreement recognises the mutual benefits to Australia and the 
United States from access to facilities and areas in Australia by the United States Armed 
Forces.
 This access and use is on a rotational basis, mutually determined, and at Australia’s 
invitation – with full respect for Australian and United States’ sovereignty. 
If pressed: Will Australia have sovereign command of its future Virginia-class nuclear-powered 
submarines?
 Please direct any questions relating to nuclear powered submarines to the Australian 
Submarine Agency.
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
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/ 
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip.
Does force posture cooperation heighten the risk of an attack on Australia?
 For over ten years, force posture cooperation with the United States has enhanced our 
capacity to deter aggression, counter coercion, and respond to the full range of 
contingencies in the Indo-Pacific.
 It bolsters the capability of the ADF and benefits our partners by anchoring the United 
States in our region. 
Is Enhanced Force Posture Cooperation a response to China? 
 Australia-United States force posture cooperation is not focused on any one country.
 It helps maintain a secure and resilient region, strengthens interoperability with our 
ally, contributes to effective deterrence, and provides a platform for regional 
engagement.

It is a longstanding bilateral program first announced in November 2011.
How does Australia know if United States assets that rotate through Australia under the 
Force Posture Agreement are nuclear-armed [United States SSNs and B-52 and 
B-2 bombers]? 
 A nuclear-capable military platform is not necessarily armed with nuclear weapons. 
 The United States does not station nuclear weapons in Australia. Stationing of nuclear 
weapons in Australia is prohibited by the Nuclear Non-Proliferation Treaty and the 
South Pacific Nuclear Free Zone Treaty, to which Australia remains committed. Visits by 
United States strategic assets are consistent with our obligations under these treaties.
 Neither of these treaties prohibit dual-capable foreign aircraft being present at 
Australia’s airfields or transiting Australia’s airspace. 
 Successive Australian Governments have understood and respected the longstanding 
United States policy of neither confirming nor denying the presence of nuclear 
weapons in this context. 
 Australia will continue to fully comply with our international obligations and the 
United States understands and respects Australia’s international obligations regarding 
nuclear weapons.
Will United States long-range missiles be forward deployed in Australia?
 Activities under the United States Force Posture Initiatives are a decision for the 
government of the day and managed in accordance with the Force Posture Agreement.
 If pressed: There are no United States long-range missiles deployed in Australia.
What did Australia achieve at Australia-United States Ministerial Consultations 2023?
 At Australia-United States Ministerial Consultations on 29 July 2023 in Brisbane, 
Australia and the United States advanced defence cooperation under the Alliance. 
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
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/ 
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip.
 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;

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; and

declaring Enhanced Space Cooperation as a new Force Posture Initiative, enabling 
increased cooperation in this critical operational domain.

Australia and the United States have a long history of cooperation in space, 
including the Space Surveillance Telescope and C-Band Radar.

The addition of space as a new Force Posture Initiative signals our 
commitment to expand and strengthen our cooperation in new ways, 
including in space domain awareness and our ability to deter and respond.

We are also working towards enhancing information sharing, technology 
sharing, combined training and personnel exchanges, and combined space 
operations. 
 The Consultations also:

agreed to make it easier to transfer technology, share information, collaborate, 
innovate, and operate together, no matter the scenario; 

examined export control regimes to streamline the flow of defence trade;

deepened 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

continued synchronising Indo-Pacific engagement, including through growing the 
United States Coast Guard presence in the Pacific.
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
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/ 
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip.
Supporting Information
Questions on Notice 
2023-24 Budget Estimates: 30 - 31 May 2023
 In QQoN 81, AAUKUS ports, Senator Jordon Steele-John (Greens, Western Australia) 
asked a series of questions regarding:

maintenance of future Australian nuclear-propelled submarines;

the alignment of United States B-52 Bombers rotating to Royal Australian Air 
Force Tindal and the Treaty of Rarotonga;

whether the Government would prevent nuclear-capable or armed B-52s to 
visit Royal Australian Air Force Tindal;

the transit and stationing of United States nuclear weapons in Australia;

United States declaratory policy on carriage of nuclear weapons; and

whether the government would only permit non-nuclear capable United States 
aircraft in Australia. 
Freedom of Information (FOI) Requests

On 4 August 2023, an individual sought access to documents concerning the Deputy 
Prime Minister’s bilateral meetings with United States Secretary of Defense Austin in 
Australia surrounding Australia-United States Ministerial Consultations. D
Defence is 
currently preparing a response.

On 7 July 2023, an individual sought confirmation Australia participated in the Five Eyes 
informal forum held in 2023 relating to data collected on Unidentified Aerial 
Phenomena, as well as any documents. TThe documents were not released under 
section 24A of the FOI Act. 

On 1 April 2023, an individual sought access to documents by the Australian Defence 
Attaché to the United States in Washington DC relating to unidentified aerial objects 
shot down by the United States Air Force in February 2023. TThe documents were not 
released under section 24A of the FOI Act. 
Recent Ministerial Comments

On 10 August 2023, the Deputy Prime Minister delivered a speech on the Alliance at 
the Australian-American Leadership Dialogue in Canberra. 

On 29 July 2023, the Deputy Prime Minister, Foreign Minister and their United States 
counterparts conducted a joint press conference regarding Australia-United States 
Ministerial Consultations. 

On 29 July 2023, the Deputy Prime Minister, the Foreign Minister and their United 
States counterparts delivered a joint statement on Australia-United States Ministerial 
Consultations.
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
/ 
s22
Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip.

On 22 July 2023, the Deputy Prime Minister delivered a speech on the Alliance at the 
commissioning of the United States Ship Canberra in Sydney. 

On 19 July 2023, the Deputy Prime Minister and Foreign Minister issued a joint media 
release in advance of Australia-United States Ministerial Consultations.
Relevant Media Reporting

In The Australian on 11 August 2023, Joe Kelly reported on comments made by 
Congressman Mike Gallagher at the Australian-American Leadership Dialogue that 
long-range precision missiles should be forward-deployed throughout the Indo-Pacific 
under AUKUS.

In ABC news on 30 July 2023, Stephen Dziedzic reported on Australia-United States 
Ministerial Consultations, highlighting that US military analysts will embed in Australia’s 
Defence Intelligence Organisation to monitor China’s military footprint in the region.

In The Sydney Morning Herald on 30 July, Matthew Knott reported on 
Australia-United States Ministerial Consultations, highlighting agreement to work 
together on a plan for Australia to begin manufacturing Guided Multiple Launch Rocket 
Systems by 2025, deepen cooperation on space and fortify Australia’s northern bases.

In ABC news on 29 July 2023, Stephen Dziedzic reported on Australia-United States 
Ministerial Consultations, highlighting increasing force posture cooperation and 
production of Guided Multiple Launch Rocket Systems in Australia as key outcomes.

In The Guardian on 22 July 2023, the Australian Associated Press reported on the 
commissioning of United States Ship Canberra as the first United States warship to be 
commissioned in a foreign port.
Division:
Strategy, Policy, and Industry Group
PDR No: 
SB23-000727
Prepared by:
Cleared by Division Head:
Sally Timbs
Bernard Philip
Assistant Secretary
First Assistant Secretary
United States Alliance Management Branch
International Policy Division
Mob: s22
Mob: s22
Ph: s47E(d)
Ph: s47E(d)
Date: 16 August 2023
Date: 3 October 2023 
Consultation: 
s47E(d)
Mob:  
s22
Executive Director
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip.
Strategy and Plans
Ph: s47E(d)
Guided Weapons and Explosive Ordnance
Capability Development Division
Date: 24 August 2023
Consultation: 
Mob: s22
Alanna Mackay
Ph: s47E(d)
Assistant Secretary
Date: 16 August 2023 
Strategic Policy and Guidance
Strategic Policy Division
Consultation:
Mob: s22
Kylie Wright
Ph: s47E(d)
Assistant Secretary 
Date: 16 August 2023 
Defence Industry
Defence Industry Policy Division
Consultation: 
Mob: s22
    
Cameron Heath
Ph: s47E(d)
Assistant Secretary
Date: 16 August 2023
Intelligence Policy and Priorities Branch
Defence Intelligence Group
Cleared by Deputy Secretary 
Hugh Jeffrey
Date: 1 September 2023 
Deputy Secretary
Strategy, Policy, and Industry Group
Questions on notice referred to within the brief:
2023-24 Budget Estimates
Senator Jordan Steele-John
Question Number: 81
Date question was tabled: 14 July 2023
Question
Will the facilities at the AMC Henderson be used for maintenance work on the nuclear 
submarines, both the Virginia Class and the forthcoming SSN-AUKUS?
In the Rarotonga Treaty, stationing is defined as "emplantation, emplacement, transportation 
on land or inland waters, stockpiling, storage, installation and deployment. Does the 
government consider the basing of 6 B-52s at Tindal to amount to stationing?
Will the government confirm that the B-52s at Tindal will not be nuclear-armed nor nuclear-
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
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Supplementary Budget Estimates October 2023
PDR No: SB23-000727
Last updated: 03 October 2023
United States
Key witnesses: Hugh Jeffrey; Bernard Philip.
capable?
Will the government reject the transit of nuclear weapons in Australian airspace, territories 
and waters?
AUKUS will open Australian ports to routine deployments from American and UK nuclear 
capable submarines. The US Navy has a policy of 'nuclear ambiguity' and refuses to confirm 
or deny whether a vessel is carrying nuclear arms. Australians deserve to know whether we 
are hosting and facilitating nuclear weapons - will you require visiting vessels to openly 
declare their weapons status or will you fully cede Australian sovereignty and responsibility?
As a demonstration of Australia's commitment to reducing the threat of nuclear war, will the 
government commit that any B52 deployment on Australian soil will only permit non- nuclear 
capable aircraft?
Answer
Defence and the Australian Submarine Agency are continuing to work through the 
maintenance arrangements in consultation with our AUKUS partners.
No. The United States does not station nuclear weapons in Australia. Stationing of nuclear 
weapons in Australia is prohibited by the Nuclear Non-Proliferation Treaty and the South 
Pacific Nuclear Free Zone Treaty, to which Australia remains committed. B-52 and B-2 
bombers are not based at RAAF Base Tindal, but visit Australia on a rotational basis. Visits by 
United States strategic assets are consistent with our obligations under these treaties.
Australia will continue to fully comply with our international obligations and the United States 
understands and respects Australia’s international obligations regarding nuclear weapons.
Prepared By:
Cleared By: 
Name: Sally Timbs
Name: Hugh Jeffrey
Position: Assistant Secretary
Position: Deputy Secretary 
Branch: United States Alliance Management
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
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Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        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. 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 dangerous military conduct that can 
endanger the safety of ADF personnel and increase the risk of miscalculation. 
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 hosted a delegation from the People’s Liberation Army in Canberra on 
22 March 2023 for a Defence Coordination Dialogue. 

Deputy Secretary, Strategy, Policy, and Industry, Mr Hugh Jeffrey met 
Major General Yao from the People’s Liberation Army on 2 August 2023 in 
Jakarta. 

The Deputy Prime Minister has also met his counterparts, most recently General  
Li Shangfu, China’s Minister for National Defense, at the Shangri-La Dialogue in June. 
 
 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
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Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 

We are clear-eyed that the relationship will remain challenging. We have serious 
concerns about China’s conduct in a range of areas. But there is value in ensuring lines 
of communication remain open.  
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. 
Why did the Army band perform at an event for the 96th Anniversary of the People’s 
Liberation Army? 

The Australian Army Band plays at a number of official events, including foreign 
embassy events, throughout the year. 
History of Australia-China Defence Engagement 

Prior to the talks in March 2023, our regular schedule of defence dialogues with China 
had not occurred since 2019. 

At that time, we held two bilateral defence dialogues 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 between our two 
militaries.  
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 the Financial Year 2022-23, $40,000 was budgeted to facilitate the re-
commencement of defence dialogue.  

Similar funding has been allocated for the Financial Year 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 the Second World War.  

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.  
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 

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.  
If pressed: Chinese spy vessels in Australian waters 

As part of Australia’s broader whole-of-government maritime border protection efforts, 
Defence routinely monitors all maritime traffic in our Exclusive Economic Zone and 
maritime approaches including that of People’s Liberation Army–Navy vessels. 

Australia respects the right of all states under international law to exercise freedom of 
navigation and overflight in international waters and airspace, just as we expect others 
to respect our right to do the same.  
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 which is open, secure and prosperous. 

The ADF undertakes routine port visits, routine maritime surveillance flights, 
cooperative activities with partners, and transits to and between South-East and North 
Asia.  

Our deployments are not directed at 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. 

83 per cent of Australian merchandise trade (by value) is carried by sea.  

Our operations support these freedoms and underpin prosperity by ensuring 
waterways are open for trade. 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 

ADF vessels and aircraft exercise Australia’s rights under international law to freedom 
of navigation and overflight, including in the South China Sea. 
If pressed: South China Sea claims in China’s new standard map 

Australia does not accept China’s assertion of historical rights in the South China Sea, 
which are inconsistent with the United Nations Convention on the Law of the Sea. 
Has the ADF experienced recent unsafe encounters with the People’s Liberation Army? 

The People’s Liberation Army’s expansion in size and operating areas means the ADF is 
operating in closer contact with the People’s Liberation Army more often.  

At times, we have experienced unsafe and unprofessional behaviour by the 
People’s Liberation Army.  

When this occurs, we raise our concerns with China directly, both in Beijing and in 
Canberra, including at ministerial level.  

In response to an unsafe intercept of a Royal Australian Air Force P-8 Poseidon 
maritime surveillance aircraft on 26 May 2022, the Deputy Prime Minister stated 
publicly on 6 June 2022 that this was a ‘very dangerous’ incident, in which the 
Australian P-8 crew ‘responded professionally and in a manner which would make us all 
feel proud.’ 
China Coast Guard’s behaviour towards a Philippine military resupply mission to the Second 
Thomas Shoal on 23 October 2023 

The Australian Government is deeply concerned by unsafe manoeuvres conducted by 
Chinese vessels on 22 October, which resulted in collisions and damage to Philippine 
vessels near Second Thomas Shoal in the South China Sea. 

This behaviour endangers security and creates risks of miscalculation.  

The South China Sea is a vital waterway for the entire international community.  

We want to see a peaceful South China Sea where international law is respected 
and adhered to. 

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.  

We reaffirm the 2016 South China Sea Arbitral Award is final and binding on the parties 
(China and the Philippines). 

It remains as important as ever that the parties abide by the ruling. 

And we respect and uphold international law. 
 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 
If pressed: What defines an ‘unsafe’ incident? 

Defer to Head of Military Strategic Commitments or Vice Chief of the Defence Force. 
Are the Philippines and the United States escalating tensions in the South China Sea? 

We don’t agree with the assertion that the Philippines and the United States are 
escalating tensions. 

The Philippines Government routinely conducts resupply missions to 
Second Thomas Shoal. 

We are concerned by dangerous encounters in the air and at sea. 
What is Australia’s position on the Philippines’ sovereignty over Second Thomas Shoal? 

The 2016 South China Sea Arbitral Award found that Second Thomas Shoal was within 
the Philippines’ Exclusive Economic Zone. 

The Tribunal found that there ‘exists no legal basis for any entitlement by China 
to maritime zones in the area of Second Thomas Shoal’. 

The Arbitral Award is final and binding on the parties (China and the Philippines).   
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 that are vital to the stability and prosperity of the 
region. 
Is the Government’s response to the Defence Strategic Review aimed at China? 

The Government’s response to the Defence Strategic Review is not directed at a 
specific country, but at the maintenance of regional stability. 
Background 

On 22 October 2023, two incidents occurred between China and Philippine vessels 
during the Philippines’ routine resupply mission to the BRP Sierra Madre on 
Second Thomas Shoal. The first incident resulted in a collision between a China Coast 
Guard vessel and Philippine Government-contracted vessel as it ferried supplies to 
Second Thomas Shoal. A second incident resulted in a China maritime militia vessel 
scraping a Philippine Coast Guard vessel. The resupply was partially successful and no 
injuries or major damage to Philippine vessels were reported. In response to the 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 
incidents, the Philippines’ National Task Force for the West Philippine Sea issued a 
statement that condemned '…in the strongest degree the latest dangerous, 
irresponsible, and illegal actions of the CCG and the Chinese Maritime Militia … in 
violation of Philippine’s sovereignty, sovereign rights and jurisdiction and in utter 
blatant disregard of the United Nation Charter, UNCLOS, Convention on the 
International Regulation for Preventing Collisions at Sea (COLREGS) and relevant 
international maritime conventions, and the 2016 Arbitral Award.’ The China Coast 
Guard immediately claimed it was acting lawfully and blamed the Philippine vessel for 
transporting illegal construction materials and claimed it had ‘intruded into the waters 
adjacent … without authorisation.’ 

Head of Mission Manila retweeted the Philippine statement and said: 'Australia is 
concerned by China’s dangerous manoeuvres that damaged vessels and disrupted a PH 
resupply mission in the EEZ. The South China Sea is a vital international waterway for us 
all. We again call for peace, stability & respect for UNCLOS.' The United States 
Ambassador to Manila issued a statement condemning China’s actions, which was 
followed by a United States State Department statement. As at 23 October, a number 
of likemindeds had issued tweets or statements with similar messaging as Head of 
Mission Manila's tweet. These include Canada, the European Union, France, Germany, 
Japan, the Netherlands and the United States. 

On 5 August 2023, a Chinese Coast Guard vessel conducted ‘dangerous manoeuvres’ 
against a Philippines Coast Guard vessel to deter it from resupplying the Sierra Madre 
on Second Thomas Shoal in the South China Sea. The Chinese Coast Guard used water 
cannons against the Philippines Coast Guard vessel. Australia’s Ambassador to the 
Philippines released a statement on Twitter calling China’s actions ‘dangerous and 
destabilising’.  

On 27 July 2023, the Australian Army band performed at an event at the Chinese 
Embassy in Canberra marking the 96th Anniversary of the founding of the People’s 
Liberation Army. The performance included playing China’s national anthem. In a 
statement, Defence noted the band has performed at a number of similar embassy 
events over the course of 2023.  

In July 2023, a Chinese Auxiliary General Intelligence vessel observed Exercise 
TALISMAN SABRE 2023. Chief of Joint Operations, Lieutenant General Greg Bilton, 
acknowledged the Auxiliary General Intelligence’s presence and said “it will stay outside 
of our contiguous zones, so 24 nautical miles beyond, that’s consistent with 
international law – their [the People’s Liberation Army–Navy’s] behaviours on previous 
exercises have been exactly that and I don’t expect that to change.” 

The Deputy Prime Minister met the current Minister of National Defense, General  
Li Shangfu, at the Shangri-La Dialogue on 4 June 2023. 

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. 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
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OFFICIAL 
Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 

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  
˜
No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments  
˜
On 29 July 2023, following the Australia-United States Ministerial Consultations 
(AUSMIN) in Sydney, the Deputy Prime Minister, the Minister for Foreign Affairs, the 
United States’ Secretary of State and the United States’ Secretary of Defence issued a 
joint statement reiterating their strong opposition to destabilising actions in the South 
China Sea. 
˜
On 3 June 2023, the Deputy Prime Minster, the Japanese Minister of Defense, and 
United States’ Secretary of Defense, issued a joint statement from the United States–
Japan–Australia Trilateral Defence Ministers’ Meeting in Singapore expressing concern 
about the situation in the South China Sea and strongly objecting to China’s claims and 
actions that are inconsistent with international law. 
Relevant Media Reporting   
˜
On 23 October 2023, multiple outlets reported on collisions between Philippines’ 
resupply vessels and China Coast Guard vessels in the vicinity of Second Thomas Shoal, 
and statements from each government around the incident.  
˜
On 6 August 2023 In the Australian Financial Review, Jim Gomez reported on the 
actions of a Chinese Coast Guard vessel towards two Philippine Coast Guard vessels at 
the Second Thomas Shoal, which included the Chinese Coast Guard using a powerful 
water cannon and blocking the Philippine Coast Guard from resupplying the Sierra 
Madre.  
˜
On 29 July 2023 in the ABC News, Andrew Greene reported that the Australian Army 
band had performed at China’s embassy on the 96th Anniversary of the founding of the 
People’s Liberation Army. The band played China’s national anthem, and was 
photographed with China’s Ambassador, Xiao Qian.  
˜
On the 24 July 2023 in the ABC News, Andrew Greene reported on a Defence image 
showing a P-8A Poseidon Surveillance aircraft flying over a Chinese Auxiliary General 
Intelligence (AGI) ship as it observed Exercise TALISMAN SABRE 2023. Chief of Joint 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
Page 7 of 8 

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OFFICIAL 
Supplementary 
Budget 
Estimates: 
October 
2023 
 
    PDR 
No: 
SB23-000729 
Last updated: 23 October 2023 
 
 
 
 
 
        China and South China Sea  
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell. 
Operations Lieutenant General Greg Bilton told the ABC the P-8 “located the AGI, we 
hailed the AGI, we got a courteous response as you’d expect in normal interactions in 
international waters.”  
 
Division: 
Strategy, Policy, and Industry Group  
PDR No:  
SB23-000729 
Prepared by: 
Cleared by: 
s47E(d)
 
Tom Menadue 
Director East Asia 
Assistant Secretary North & South Asia 
North & South Asia Branch  
International Policy 
Mob:  
s22
 
Ph: 
s47E(d)
 
Ph:  
s47E(d)
Date: 23 October 2023 
Date: 23 October 2023 
Cleared by CFO / DPG / DSR: N/A 
 
Cleared by Deputy Secretary: 
Date: 23 October 2023 
Hugh Jeffrey 
Deputy Secretary 
Strategy, Policy, and Industry Group  
 
Prepared By: 
Cleared By: 
Name:  
s47E(
Name: Hugh Jeffrey 
Position: Director, East Asia 
Position: Deputy Secretary 
d)
Division: International Policy  
Group: Strategy, Policy, and Industry 
Phone: / 
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
  OFFICIAL 
 
 
 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000732  
Last updated: 23 October 2023 
 
 
 
 
 
            Export Controls 
Key witnesses: Hugh Jeffrey; David Nockels 
 
Export Controls 
 
Handling Note: 
˜
Deputy Secretary, Strategy, Policy and Industry, Hugh Jeffrey to lead on Export 
Controls. 
˜
First Assistant Secretary Defence Industry Policy, David Nockels, to support on Export 
Controls.  
 
Key Messages 
˜
Australia takes its export control obligations seriously as a member of the international 
export control regimes. 
˜
Each export application is assessed on its merits to determine whether it would be 
prejudicial to Australia’s national interests.  
˜
The (legislated) criteria require consideration of 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 is unable to comment on individual exports so as not to disclose 
commercial-in-confidence information.  
Talking Points 
How are export applications assessed? 

Each export application is assessed against Australian export controls laws 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.  

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.    

Permit approvals should not be confused with weapons sales. Permits are required for 
a broad range of goods and technologies. This includes, but is not limited to, munitions, 
Prepared By: 
Cleared By:  
 
Name: Emily Hall 
 
Name: Hugh Jeffrey 
Position: Assistant Secretary, Defence Export Controls 
Position: Deputy Secretary 
Division: Defence Industry Policy 
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
 
Page 1
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000732  
Last updated: 23 October 2023 
 
 
 
 
 
            Export Controls 
Key witnesses: Hugh Jeffrey; David Nockels 
radios, computer and software components and chemicals that have legitimate civilian 
and commercial purposes. 
If pressed: How many permits have been issued to Israel this calendar year?  
 Year to date, as at 23 October 2023, Defence has issued 41 export permits to Israel.  
If pressed: On the number of permits or military aid to Ukraine. 

All exports of gifted military equipment are subject to a robust assessment process in 
line with Australia’s export control legislation. 

Year to date, as at 23 October 2023, Defence has issued 25 export permits to 
Ukraine. 

Since 2021, Defence has issued 60 export permits to Ukraine.  

[Handling Note: Please direct any questions regarding equipment gifted to Ukraine to 
Deputy Secretary Strategy, Policy and Industry, Mr Hugh Jeffrey]. 
If pressed: On exports to Sudan this calendar year. 
 As at 23 October 2023, Defence has issued one permit to Sudan.  
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.   
 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.  
If pressed: What is the approach to export permit transparency? 
 Defence remains committed to transparency measures that protect commercial-in-
confidence information for Australian industry. 
 Our transparency measures reflect the relatively small size of the Australian industry 
sector. Where information is too specific, this may “tip-off” business competitors to 
market opportunities.  

Transparency measures will vary between countries, proportionate to the nature 
and scale of their industry sectors.  
Prepared By: 
Cleared By:  
 
Name: Emily Hall 
 
Name: Hugh Jeffrey 
Position: Assistant Secretary, Defence Export Controls 
Position: Deputy Secretary 
Division: Defence Industry Policy 
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
 
Page 2
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000732  
Last updated: 23 October 2023 
 
 
 
 
 
            Export Controls 
Key witnesses: Hugh Jeffrey; David Nockels 
 Defence publishes export permit statistics on the Defence Export Controls public 
webpage.   

These statistics reflect permit decisions only – not whether the export took place.  
If pressed: About Australia’s export compliance measures offshore. 

Australian export controls legislation does not apply extraterritorially. 

Australia assesses the risk of misuse, including diversion, as part of its permit decision. 

If Australia identifies material risks of misuse or diversion, it will refuse permits. 

Countries that impose extraterritorial measures may decide to approve exports 
that Australia would not. 

If Defence identifies that an export has been diverted or misused, it has a range of 
measures to address the breach including:  

revoking the permit; 

considering non-compliance in deciding whether to issue future permits to those 
entities;  

communicating the risk to other countries to inform their export decisions; and  

referring to enforcement agencies for further investigation. 
Supporting Information 
Questions on Notice  
Senate: 12 July 2023 
˜
In Q
QoN 2231- Defence, Senator Jordon Steele-John (Greens, Western Australia) asked 
for information military exports to Sudan, reviews into exporting arms to Sudan and 
whether the Department could confirm that no Australian exports were being used to 
perpetrate human rights abuses. 
Freedom of Information (FOI) Requests  
˜
On 9 March 2023, an individual sought access under Freedom of Information 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. TThe 
document was released on 6 April 2023. 
˜
On 16 October 2023, an individual sought access under Freedom of Information for 
copies of military export permits to Israel from 1 June 2022 to date. This request is 
currently being considered by the Department. 
Recent Ministerial Comments  
Prepared By: 
Cleared By:  
 
Name: Emily Hall 
 
Name: Hugh Jeffrey 
Position: Assistant Secretary, Defence Export Controls 
Position: Deputy Secretary 
Division: Defence Industry Policy 
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000732  
Last updated: 23 October 2023 
 
 
 
 
 
            Export Controls 
Key witnesses: Hugh Jeffrey; David Nockels 
˜
On 12 July 2023, the Deputy Prime Minister announced the provision of an additional 
30 Bushmaster Protected Mobility Vehicles to Ukraine.  
˜
On 26 June 2023, the Deputy Prime Minister announced a $110 million assistance 
package to Ukraine. This included 70 military vehicles and 105mm artillery ammunition. 
˜
On 24 February 2023, the Deputy Prime Minister announced the provision of additional 
Uncrewed Aerial Systems to Ukraine. 
˜
On 27 October 2022, the Deputy Prime Minister announced the provision of an 
additional 30 Bushmaster Protected Mobility Vehicles to Ukraine. 
˜
On 4 July 2022, the Deputy Prime Minister announced the provision of an additional 20 
Bushmaster Protected Mobility Vehicles and de-mining equipment to Ukraine. 
Relevant Media Reporting  
˜
Australian media has reported on increased military export permits to Saudi Arabia. 
˜
Australian media has reported on the forthcoming review of the Defence Trade 
Controls Act 2012 and possible export control reforms relating to AUKUS.  
˜
In Riotact on 11 September 2023, Andrew McLaughlin linked the review to potentially 
tightening export controls to assure the United States of Australia’s ability to protect 
controlled information through AUKUS.  US Congress misses critical opportunity to pass 
AUKUS legislation. 
˜
In the Guardian Australia on 5 September 2023, Christopher Knaus wrote that Australia 
approved 21 defence export permits to Saudi Arabia in 2022, and reported on concerns 
from Greens Senator Shoebridge and human rights groups Australia’s rise in military 
export approvals to Saudi Arabia labelled ‘disturbing’  
 
 
 
Prepared By: 
Cleared By:  
 
Name: Emily Hall 
 
Name: Hugh Jeffrey 
Position: Assistant Secretary, Defence Export Controls 
Position: Deputy Secretary 
Division: Defence Industry Policy 
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000732  
Last updated: 23 October 2023 
 
 
 
 
 
            Export Controls 
Key witnesses: Hugh Jeffrey; David Nockels 
 
Division: 
Strategy, Policy, and Industry Group 
PDR No:  
SB23-000732 
Prepared by: 
Cleared by Division Head:  
s47E(d)
 
David Nockels 
Director  
First Assistant Secretary 
Defence Export Controls 
Defence Industry Policy 
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Mob:  
s22
 
Ph: 
s47E(d)
 
Date: 23 October 2023 
Date: 23 October 2023   
Cleared by Deputy Secretary: 
Date:  October 2023   
Hugh Jeffrey 
Deputy Secretary  
Strategy, Policy and Industry Group  
 
Prepared By: 
Cleared By:  
 
Name: Emily Hall 
 
Name: Hugh Jeffrey 
Position: Assistant Secretary, Defence Export Controls 
Position: Deputy Secretary 
Division: Defence Industry Policy 
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
s22
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
Ukraine 
Handling Note: Deputy Secretary, Strategy, Policy, and Industry, Mr Hugh Jeffrey to lead on 
Ukraine. 
This Brief has been drafted to reflect an expected Prime Minister announcement on 25 
October 2023. Defence understands further details on the E-7A Wedgetail deployment to 
Europe and a new defence industry package will be announced during the Prime Minister’s 
United States visit.  
 
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. 

The Government calls on Russia to immediately withdraw its forces from Ukrainian 
territory and to end its illegal and immoral invasion. 

Australia’s military assistance to Ukraine now totals approximately $730 million and 
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. 

An E-7A Wedgetail aircraft has arrived in Germany from where it will support 
multi-national efforts to protect a vital gateway of international humanitarian and 
military assistance to Ukraine. 

Australia will provide a package of assistance for Ukraine comprising Australian 
defence industry equipment valued at $20 million.  

The package includes counter drone systems from DroneShield, deployable 3D 
metal printers from Spee3d [pronounced spee-three-d], de-mining equipment 
from Minelab and portable X-ray machines from Micro-X.  

The Government is considering options for further military assistance to Ukraine. We 
will continue to tailor our support to Ukraine’s needs and complement the efforts of 
our partners. 
Talking Points 
If asked: How wil  the E-7A deployment support Ukraine? 

Operating from Ramstein Air Base the aircraft will provide early warning of threats 
against a multinational gateway that is a vital supply line for humanitarian and military 
assistance entering 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 Industry 
Phone:  
s22
s47E(d)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 

The aircraft will integrate with the efforts of our partners, including the United States, 
to support the multi-layered protections already in place. 

The E-7A will not operate inside Ukrainian, Russian or Belarusian airspace. 

The deployment has undergone thorough operational planning and legal risk 
assessments and will adhere to strict operational and legal parameters. 
If asked: How many personnel are on the deployment? 

Up to 100 ADF crew and support personnel have deployed with the aircraft.  
If asked: Will the E7-A enter Ukraine? 

 ADF personnel or assets will not enter Ukraine throughout the deployment and the 
aircraft will not be involved in the current conflict in Ukraine.  

The aircraft is not deployed to provide surveillance assistance to Ukraine. It is focused 
on ensuring that there is early warning in the unlikely event of a threat outside Ukraine, 
impacting an important assistance gateway. 
If asked: What if the plane detects an impending large-scale missile attack on Ukraine? Wil  
Australia notify Ukraine? 

The focus of the deployment is on ensuring that there is early warning in the unlikely 
event of a threat outside Ukraine, impacting an important assistance gateway. 

The aircraft is not deployed to provide surveillance assistance to Ukraine. It is focused 
on ensuring that there is early warning in the unlikely event of a threat outside Ukraine, 
impacting an important assistance gateway. 

Australia has been engaging closely with its relevant partners in the planning and 
coordination of this deployment.  
If pressed: Has this disappointed Ukraine? What has been Ukraine’s reaction? 

The protection afforded to logistics hubs will help ensure ongoing provision of the 
military and humanitarian aid from like-minded partners, including Australia, which is 
so vital to Ukraine’s defence. 
If asked: How much will the deployment of the E-7A Wedgetail cost? 

Funding of this operational deployment will occur in the usual way by Defence.  

It would not be appropriate to go into the details of that arrangement at this time. 
If asked: How has the latest defence industry package been agreed? 

The package has been developed to meet Ukraine’s capability requests and leverages 
expertise and innovation from Australian defence industry companies.  
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)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 

This additional assistance provides Ukrainian personnel access to life-saving equipment 
and tools that offer an advantage on the battlefield. 
If asked: How and when is this defence industry package being delivered? 

The new defence industry package will be transported via surface and air transport and 
has been incorporated into the standing delivery schedule to Ukraine. 
 
 If asked: Has Australia put any restrictions on how the equipment will be used?  

All military equipment provided to the Government of Ukraine is subject to Australia’s 
export control legislation, including international obligations, particularly international 
humanitarian law. 

As you would expect, the military assistance is subject to formal arrangements with the 
Ukrainian Government. It is not appropriate to discuss the detail of those 
arrangements. 
If asked: Will Defence be looking to conduct more defence industry initiatives?  

The Government is considering options for further military assistance to Ukraine, 
including via Australian defence industries’ capabilities. We will continue to tailor our 
support to Ukraine’s needs and complement the efforts of our partners. 
If asked: Has the United States asked Australia to cover any shortfal  in supplying munitions to 
Ukraine given escalated US support to Israel? 

No, we have not received any such requests from the United States.  

President Biden stated on 15 October in an interview that the US is able to support 
both Israel and Ukraine.  

Australia continues to provide 155mm artillery ammunition to Ukraine through our 
partnership with France. 
What has the Department of Defence done to support Ukraine? 

Australia’s military assistance to Ukraine has four key lines of effort and is valued at 
over $730 million. 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.  
 
Gifting equipment from ADF stocks 

A range of equipment has been gifted from ADF stock. This equipment includes:  

Bushmaster Protected Mobility Vehicles; 

M113 Armoured Vehicles (both personnel and logistic variants);  
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)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 

40M Medium Lift Trucks with trailers; 

Special Operations Vehicles; 

155mm M777 howitzers and corresponding 155mm artillery ammunition; 

105mm artillery ammunition; 

anti-armour weapons and ammunition; 

uncrewed aerial systems and other weapons components;  

de-mining equipment (hand-held detectors, blast suits, deep ordnance locator 
and remote initiated firing systems); and 

soldier equipment, such as body armour, helmets, cold weather clothing, radios, 
binoculars, medical kits, combat rations and optical sights). 
 
If asked: What is the status of equipment gifted from ADF Stock? 

Defence is scheduled to complete gifting of equipment from ADF stocks by the end of 
the year, inclusive of the two gifting packages comprising 100 vehicles announced on 
26 June 2023 and 12 July 2023.  
 
Equipment gifted via purchase from Australian defence industry 

Defence has assisted Australia’s defence industry to provide equipment to Ukraine 
directly through supporting commercial arrangements.   

Defence has also procured $52 million of equipment via industry, including numerous 
uncrewed systems. 

Defence is providing 155mm artillery ammunition to Ukraine through a partnership 
with France. 

I am unable to provide details of the amount and delivery schedule due to 
operational security reasons. 
 
Channelling funds to partners to deliver assistance on Australia’s behalf 

Australia has provided: 

$18 million to the United Kingdom to purchase and deliver military assistance to 
Ukraine at the onset of Russia’s invasion; and, 

$24.2 million to NATO to purchase and deliver fuel, medical supplies and 
non-lethal military equipment. 
 
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)
 
Phone: / 
s47E(d)
s22
 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
Training and operational support 

A rotational force of 70 ADF personnel is training Ukrainian ‘citizen soldier’ recruits in 
the United Kingdom throughout 2023 as part of a multi-national effort. 

Over 1,150 Ukrainian recruits have graduated from ADF-delivered training. 
 
What more will we do to support Ukraine? 

Australia is committed to supporting Ukraine. 

We will continue to assess all requests from Ukraine on a case-by-case basis. 

We provide assistance through a number of channels to ensure our support is effective, 

reflecting our capacity and our comparative strengths. 
If pressed: How does Ukraine feel about Australia’s support? 

Ukraine is thankful for the support Australia has provided to date.  

Ukraine and our partners regularly commend Australia for the significant and outsized 
support we have committed, despite our geographic distance.  

Ukraine is fighting for its survival and is seeking as much support as possible from all 
partners, including Australia. 

Defence engages regularly with the Ukrainian Embassy and Vasyl Myroshnychenko, the 
Ukrainian Ambassador. This shapes the options that Defence develops for decision by 
Government. 
If pressed: Is Australia still one of the largest non-North Atlantic Treaty Organization (NATO) 
contributors of military assistance to Ukraine? 

Based on the best publicly available data, Australia remains the second largest 
non-NATO contributor of military assistance to Ukraine, behind Sweden.  
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.  

Defence continues to review options.  
 
 
 
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)
 
Phone: / 
s47E(d)
s22
 
 
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
If pressed: Will Australia provide F/A-18 Classic Hornets to Ukraine? 

The Government is aware of calls to provide F/A-18 Hornets to Ukraine. The 
international community is focussing on providing Ukraine only one fighter aircraft 
platform, namely the F-16. Additionally, the Royal Australia 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. 
 
If pressed: Has Australia delivered on its commitments to support Ukraine? 

Consistent with practice since the commencement of assistance, Defence will not 
publicise the status of delivery for operational security reasons. 

As you would appreciate, delivering items from the other side of the world is an 
immense logistical effort.  
 
If pressed: Australia-France joint proposal for support to Ukraine 

The joint project delivering 155mm ammunition to Ukraine is well underway. 
 
If pressed: What is the legal basis for Australia’s assistance to Ukraine? 

The provision of military assistance is permissible under international law. 
 
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 NATO and other allied nations in Europe. 
 
If pressed: Have any ADF or ex-ADF personnel joined the Ukrainian Armed Forces? 

Questions about Australians travelling to Ukraine should be directed to the Department 
of Home Affairs. 
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)
 
Phone: / 
s47E(d)
s22
 
 
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
If pressed: Are Australian citizens fighting in Ukraine? 

Questions about Australians travelling to Ukraine should be directed to the Department 
of Home Affairs. 

The Department of Foreign Affairs and Trade continues to advise Australians not to 
travel to Ukraine due to the volatile security situation. 
 
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. These are matters 
for the Department of Foreign Affairs and Trade. 
 
If pressed: Is the West prolonging the conflict by providing Ukraine with military assistance? 

The Government rejects the proposition that support to Ukraine provided by Australia 
and like-minded nations is protracting the war.  

Ukraine – like all countries – has the right to make its own strategic choices consistent 
with its interests. 

Deprivation of that right by the use of military force should have no place in the 
modern world. 
Background  

On 24 October 2023, Defence is anticipating that a joint media release between the 
Prime Minister, Deputy Prime Minister and Minister for Defence Industry will be issued, 
outlining details of the $20 million defence industry package, and confirming that the 
E-7A Wedgetail aircraft has deployed to Germany. 

On 10 July 2023, the Prime Minister announced the deployment of an E-7A Wedgetail 
aircraft to Germany in October 2023. The deployment includes up to 100 ADF 
personnel. 

The Prime Minister announced Australia’s latest package of military support on  
12 July 2023 following a meeting with President Zelenskyy at the NATO Summit.  

In mid-January 2023, 70 ADF personnel joined the United Kingdom-led mission (which 
includes other nations such as Canada, New Zealand and the Netherlands) in the United 
Kingdom to deliver training to Ukrainian Armed Forces ‘citizen soldiers’.  
Provision of tanks to Ukraine 

Ukraine’s Minister for Defence has requested that Australia consider sending tanks. As 
of 31 March 2023, several of Australia’s partners (including Germany, the United States 
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)
 
Phone: / 
s47E(d)
s22
 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
of America, Poland, the United Kingdom, Canada, Finland, Spain, Portugal, the 
Netherlands and Denmark) have 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.  

Thales Australia is working with Defence to resolve a braking issue on the Hawkei, 
including developing an interim solution to enable the vehicle to be used for training. 

Australia is currently unable to gift the Hawkei to Ukraine, as the capability support 
system is not mature and it would significantly degrade availability in Australia. 
Requests for F/A-18 Aircraft 

The domestic and international media has reported on calls for Australia to provide 
retired F/A-18 aircraft to Ukraine since April 2023.  

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.  

The United States is focussing on providing Ukraine one aircraft system, the F-16. 
Providing only one system simplifies training and enables operational effectiveness. 
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 from its stock to Ukraine to meet its 
urgent needs. Australia will provide explosive material to France to replenish its 
stockpiles.  

In line with France’s approach, details of this initiative are not being made public.  
 
Supporting Information 
Questions on Notice  
Senate Question Time: 29 March 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 Industry 
Phone:  
s47E(d)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
˜
PQ23-000012, Bushmasters to Ukraine, On 29 March 2023, Senator David Van 
(Independent, Victoria) asked a question during question time about military assistance 
to Ukraine, pressing on delivery timelines. Senator the Hon Don Farrell (ALP, South 
Australia) as the Minister representing the Minister for Defence. The question was 
responded to via a letter from the Minister from Trade and Tourism stating Defence 
continues to deliver on Australia’s military assistance commitments to Ukraine. 
Freedom of Information (FOI) Requests 
˜
No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively. 
Recent Ministerial Comments  
˜
The Deputy Prime Minister has released three joint media statements with the  
Prime Minister and Foreign Minister since the Senate Estimates hearing in May 2023, 
announcing the $100 million dollar military assistance package (26 June 2023), the 
deployment of the E-7A to Germany (10 July 2023) and the gifting of 30 additional 
Bushmasters to Ukraine (12 July 2023). 
Relevant Media Reporting  
˜
The Courier Mail on 10 October 2023 covered former Australian Ambassador to Israel 
Dave Sharma’s comments encouraging Australia to provide diplomatic and material 
support to Israel, while warning that Putin is “hoping that the West would become 
distracted” from supporting Ukraine. 
˜
In the Financial Review on 5 October 2023, Ukrainian Ambassador to Australia Vasyl 
Myroshnyenko asked the government for “funds for direct procurement” of 
Australian-made drones. 
˜
The Australian on 14 September 2023 reported that Australian-made drones, which 
were currently being exhibited at a large weapons expo in London, are being used in 
Ukraine but not by the ADF. 
˜
The Mercury reported on 9 September 2023 on an Australian company’s pioneering 
drone which is being used in Ukraine. 
˜
On 9 September 2023, the Australian reported that that a 24 year old man from 
Brisbane, Ethan McNamara, has been fighting for Ukraine against Russia since 
September 2022.  
˜
The Financial Review covered Russia’s claims that Australian-made drones supplied to 
Ukraine are being used to hit targets in Russia. The article discusses this and Defence’s 
response. 
 
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)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
Division: 
Strategy, Policy, and Industry Group 
PDR No:  
SB23-000726 
Prepared by: 
Cleared by Division Head: 
s47E(d)
 
Tom Mendaue  
Assistant Director Europe Section, Global 
Acting First Assistant Secretary International 
Partners Branch 
Policy  
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Mob:  
s22
 
Ph: 
s47E(d)
 
Date: 19 October 2023 
Date: 19 October 2023 
 
Consultation:  
Kerrie Boulton, Assistant Secretary Defence 
Mob:  
s22
Export Control, Defence Industry Policy, 
Ph:  
s47E(d)
Strategy, Policy, and Industry Group.    
Date: 28 September 2023 
 
Consultation:  
Suzanne Kerrigan, Acting First Assistant 
Mob:  
s22
Secretary, Strategy, Planning and 
Ph:  
s47E(d)
Independent Assurance, Capability 
Acquisition and Sustainment Group.   
Date: 28 September 2023 
 
Consultation:  
Commodore Don Dezentje, Director general  Mob:  
s22
Military Strategy Commitments, Vice Chief 
Ph:  
s47E(d)
of the Defence Force Group.    
Date: 23 October 2023 
Cleared by DFG:  
Date: 29 September 2023 
Tara Gould, Assistant Secretary Finance, 
Financial Compliance, Defence Finance 
Group.  
Cleared by Deputy Secretary: 
Date: 24 October 2023  
Hugh Jeffrey, 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 Industry 
Phone:  
s47E(d)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
Questions on notice referred to within the brief: 
Senate 7 March 2023 
Senator Jacquie Lambie 
YƵĞƐƚŝŽŶEƵŵďĞƌ͗ϭϰϳϵ
ĂƚĞƋƵĞƐƚŝŽŶǁĂƐƚĂďůĞĚ͗ϭ:ƵŶĞϮϬϮϯ

Question 
ϭ͘ZĞŐĂƌĚŝŶŐƚŚĞǁĂƌŝŶhŬƌĂŝŶĞ͕ŚĂƐƚŚĞĞƉĂƌƚŵĞŶƚƌĞĐĞŝǀĞĚĂŶLJƌĞƋƵĞƐƚƐĨƌŽŵhŬƌĂŝŶĞĨŽƌŵŝůŝƚĂƌLJ
ĂŝĚďĞLJŽŶĚǁŚĂƚŝƐĐƵƌƌĞŶƚůLJďĞŝŶŐƉƌŽǀŝĚĞĚ͍;Ğ͘Ő͕͘ŵŽƌĞƚŚĂŶƚŚĞĂŶŶŽƵŶĐĞĚƵŶĐƌĞǁĞĚĂĞƌŝĂů
ƐLJƐƚĞŵƐ͕ƚƌĂŝŶŝŶŐ͕ĂƌƚŝůůĞƌLJƐŚĞůůƐ͕ĂŶĚďƵƐŚŵĂƐƚĞƌƐͿ͘
Ϯ͘,ĂƐƚŚĞŽŵŵŽŶǁĞĂůƚŚĂŐƌĞĞĚƚŽĂůůƌĞƋƵĞƐƚƐĨŽƌƐƵƉƉŽƌƚĨƌŽŵhŬƌĂŝŶĞ͍
ϯ͘,ĂƐƚŚĞĞƉĂƌƚŵĞŶƚƌĞĐĞŝǀĞĚĂŶLJƌĞƋƵĞƐƚƐƚŽƉƌŽǀŝĚĞƚĂŶŬƐƚŽƚŚĞhŬƌĂŝŶŝĂŶǁĂƌĞĨĨŽƌƚ͍
ϰ͘/ƐƚŚĞĞƉĂƌƚŵĞŶƚĐŽŶƐŝĚĞƌŝŶŐƉƌŽǀŝĚŝŶŐDϭϭďƌĂŵƐƚĂŶŬƐƚŽƚŚĞhŬƌĂŝŶŝĂŶǁĂƌĞĨĨŽƌƚ͍
ϱ͘/ƐƚŚĞĞƉĂƌƚŵĞŶƚĐŽŶƐŝĚĞƌŝŶŐĨĂƐƚƚƌĂĐŬŝŶŐƚŚĞĐƵƌƌĞŶƚƉƌŽĐƵƌĞŵĞŶƚŽĨDϭϮďƌĂŵƚĂŶŬƐ͕ĂŶĚ
ƚŚĞŶŐŝĨƚŝŶŐƐŽŵĞŽĨƵƐƚƌĂůŝĂ͛ƐƐŽŽŶƚŽďĞƌĞƉůĂĐĞĚĨůĞĞƚŽĨDϭϭďƌĂŵƚĂŶŬƐƚŽƚŚĞhŬƌĂŝŶŝĂŶ
ǁĂƌĞĨĨŽƌƚ͘
 
Answer
dŚĞĞƉĂƌƚŵĞŶƚŚĂƐƌĞĐĞŝǀĞĚĂŶƵŵďĞƌŽĨƌĞƋƵĞƐƚƐĨŽƌŵŝůŝƚĂƌLJƐƵƉƉŽƌƚĨƌŽŵƚŚĞ'ŽǀĞƌŶŵĞŶƚŽĨ
hŬƌĂŝŶĞ͘dŚĞ'ŽǀĞƌŶŵĞŶƚǁŝůůĐŽŶƚŝŶƵĞƚŽƌĞǀŝĞǁŝƚƐƌĞƐƉŽŶƐĞŽƉƚŝŽŶƐŝŶƌĞůĂƚŝŽŶƚŽƚŚĞĞǀŽůǀŝŶŐ
ƐŝƚƵĂƚŝŽŶŝŶhŬƌĂŝŶĞ͘
 
2022-23 Supplementary Budget Estimates 
Senator the Hon Simon Birmingham 
YƵĞƐƚŝŽŶEƵŵďĞƌ͗ϲϮ
ĂƚĞƋƵĞƐƚŝŽŶǁĂƐƚĂďůĞĚ͗ϮϰƉƌŝůϮϬϮϯ
 
Question 
1. Please provide a table of all Australian assistance to Ukraine, and surrounding countries, 
since the Russian invasion in February 2022. Please include:  
a. Date announced  
b. Dollar value  
c. Detail of assistance  
d. Whether the assistance has been delivered in full or in part or remains committed but 
un-delivered or otherwise.  
2. Please provide the same breakdown requested in Q1 across all portfolios which have 
provided support. 
 
Answer
ϭ͘dŽĚĂƚĞ͕ƵƐƚƌĂůŝĂŚĂƐĐŽŵŵŝƚƚĞĚƚŽƉƌŽǀŝĚŝŶŐŵŽƌĞƚŚĂŶΨϱϭϬŵŝůůŝŽŶŝŶŵŝůŝƚĂƌLJĂƐƐŝƐƚĂŶĐĞƚŽ
hŬƌĂŝŶĞ͘

ƵƐƚƌĂůŝĂ͛ƐŵŝůŝƚĂƌLJƐƵƉƉŽƌƚƉĂĐŬĂŐĞƐƚŽhŬƌĂŝŶĞ͕ŝŶĐůƵĚŝŶŐĚĂƚĞƐŽĨĂŶŶŽƵŶĐĞŵĞŶƚĂŶĚĚŽůůĂƌ
ǀĂůƵĞ͕ĂƌĞƉƵďůŝĐůLJĚĞƚĂŝůĞĚŽŶƚŚĞDŝŶŝƐƚĞƌŝĂůDĞĚŝĂZĞůĞĂƐĞƉĂŐĞŽĨĞĨĞŶĐĞ͛ƐǁĞďƐŝƚĞ͘

&ŽƌŽƉĞƌĂƚŝŽŶĂůƐĞĐƵƌŝƚLJƌĞĂƐŽŶƐĞĨĞŶĐĞǁŝůůŶŽƚĐŽŵŵĞŶƚŽŶƚŚĞĚĞůŝǀĞƌLJƐƚĂƚƵƐŽĨƐƉĞĐŝĨŝĐ
ĐĂƉĂďŝůŝƚŝĞƐƚŽhŬƌĂŝŶĞ͘dŚĞƐĐŚĞĚƵůĞŽĨĚĞůŝǀĞƌLJƌĞŵĂŝŶƐŽŶƚƌĂĐŬ͘

Ϯ͘ĞĨĞŶĐĞŝƐŶŽƚŝŶĂƉŽƐŝƚŝŽŶƚŽĐŽŵŵĞŶƚŽŶƐƵƉƉŽƌƚƉƌŽǀŝĚĞĚďLJŽƚŚĞƌƉŽƌƚĨŽůŝŽƐ͘
 
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)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
2022-23 Supplementary Budget Estimates 
 
Senator David Van 
YƵĞƐƚŝŽŶEƵŵďĞƌ͗ϵϲ
ĂƚĞƋƵĞƐƚŝŽŶǁĂƐƚĂďůĞĚ͗ϮDĂLJϮϬϮϯ
 
Question 
Are Autonomous systems a sovereign priority for Defence?  
Are Australian defence industry companies currently supplying drones to Ukraine? 
Are any of these drones we are sending to Ukraine in service with the ADF? 
Have Defence's awarded autonomous systems contracts to Australian companies in the Last 
2 years? If so which ones?  
Has Defence's awarded autonomous systems contracts to foreign companies in the Last 2 
years? If so which ones?  
,ŽǁŵĂŶLJƵƐƚƌĂůŝĂŶͲŵĂĚĞĚƌŽŶĞƐĂƌĞŝŶƐĞƌǀŝĐĞǁŝƚŚĨŽƌĞŝŐŶŶĂƚŝŽŶƐ͛ĚĞĨĞŶĐĞĨŽƌĐĞƐ͍
 
Answer
ϭ͘ZĞŵŽƚĞůLJŽƉĞƌĂƚĞĚƐLJƐƚĞŵƐ͕ĂƐƵďƐĞƚŽĨĂƵƚŽŶŽŵŽƵƐƐLJƐƚĞŵƐ͕ĂƌĞŽƉĞƌĂƚĞĚďLJĞĨĞŶĐĞ͘dŚĞ
ĚĞǀĞůŽƉŵĞŶƚĂŶĚŵŝůŝƚĂƌLJĂƉƉůŝĐĂƚŝŽŶŽĨĂƵƚŽŶŽŵŽƵƐƐLJƐƚĞŵƐĂƌĞďĞŝŶŐĐŽŶƐŝĚĞƌĞĚĂŵŽŶŐŽƚŚĞƌ
ƉƌŝŽƌŝƚŝĞƐ͘
Ϯ͘ĞĨĞŶĐĞŝƐĂǁĂƌĞƚŚĂƚƐŽŵĞƵƐƚƌĂůŝĂŶĐŽŵƉĂŶŝĞƐŚĂǀĞƐƵƉƉůŝĞĚĚƌŽŶĞƐƚŽhŬƌĂŝŶĞ͘ĞĨĞŶĐĞĚŽĞƐ
ŶŽƚƚƌĂĐŬƚŚĞĐŽŵŵĞƌĐŝĂůĞdžƉŽƌƚŽĨƵƐƚƌĂůŝĂŶŵĂŶƵĨĂĐƚƵƌĞĚĚƌŽŶĞƐ͘
ϯ͘EŽ͕ŶŽŶĞŽĨƚŚĞƵŶͲĐƌĞǁĞĚĂŝƌƐLJƐƚĞŵƐĞĨĞŶĐĞŝƐƐĞŶĚŝŶŐƚŽhŬƌĂŝŶĞĂƌĞŝŶƐĞƌǀŝĐĞǁŝƚŚƚŚĞ&͘
ϰ͘ĞĨĞŶĐĞĚŽĞƐŶŽƚƚƌĂĐŬĐŽŶƚƌĂĐƚƐƌĞůĂƚŝŶŐƚŽ͚ĂƵƚŽŶŽŵŽƵƐƐLJƐƚĞŵƐ͛ƐƉĞĐŝĨŝĐĂůůLJ͘
ϱ͘^ĞĞĂŶƐǁĞƌƚŽƋƵĞƐƚŝŽŶϰĂďŽǀĞ͘
ϲ͘^ĞĞĂŶƐǁĞƌƚŽƋƵĞƐƚŝŽŶϮĂďŽǀĞ͘

2022-23 Budget Estimates (November) 
Senator David Van 
YƵĞƐƚŝŽŶEƵŵďĞƌ͗ϰϵ
ĂƚĞƋƵĞƐƚŝŽŶǁĂƐƚĂďůĞĚ͗ϭϲĞĐĞŵďĞƌϮϬϮϮ
 
Question 
ϭ͘,ĂƐƚŚĞĞƉĂƌƚŵĞŶƚŽĨĞĨĞŶĐĞŵĂĚĞĂŶLJƌĞƋƵĞƐƚƐƚŽƚŚĞ'ŽǀĞƌŶŵĞŶƚ͕ƚŚĞDŝŶŝƐƚĞƌĨŽƌĞĨĞŶĐĞ
ŽƌƚŚĞĞƉĂƌƚŵĞŶƚŽĨ&ŽƌĞŝŐŶĨĨĂŝƌƐĂŶĚdƌĂĚĞƚŽƌĞŽƉĞŶƚŚĞĞŵďĂƐƐLJŝŶ<LJŝǀ͍/ĨƐŽ͕ĐĂŶƚŚĞ
ĞƉĂƌƚŵĞŶƚƉƌŽǀŝĚĞŵĞǁŝƚŚƚŚĞĚĞƚĂŝůƐŽĨƚŚĞƐĞƌĞƋƵĞƐƚƐ͍
Ϯ͘,ĂƐƚŚĞĞƉĂƌƚŵĞŶƚŽĨĞĨĞŶĐĞŵĂĚĞĂŶLJƌĞƋƵĞƐƚƐƚŽƚŚĞ'ŽǀĞƌŶŵĞŶƚ͕ƚŚĞDŝŶŝƐƚĞƌĨŽƌĞĨĞŶĐĞ
ŽƌƚŚĞĞƉĂƌƚŵĞŶƚŽĨ&ŽƌĞŝŐŶĨĨĂŝƌƐĂŶĚdƌĂĚĞƚŽƐĞŶĚĞĨĞŶĐĞĂƚƚĂĐŚĞƐŽƌĞĨĞŶĐĞƉĞƌƐŽŶŶĞů
ŝŶƚŽhŬƌĂŝŶĞ͍/ĨƐŽ͕ĐĂŶƚŚĞĞƉĂƌƚŵĞŶƚƉƌŽǀŝĚĞŵĞǁŝƚŚƚŚĞƐĞƌĞƋƵĞƐƚƐ͍
ϯ͘,ŽǁŵĂŶLJƵƐŚŵĂƐƚĞƌƐŚĂǀĞďĞĞŶĚĞůŝǀĞƌĞĚ͕ĂŶĚĂƌĞŝŶĐŽŵďĂƚŽƌƚŚĞĂƚƌĞ͕ƐŝŶĐĞƚŚĞWƌŝŵĞ
DŝŶŝƐƚĞƌǀŝƐŝƚĞĚhŬƌĂŝŶĞŽŶƚŚĞϰƚŚŽĨ:ƵůLJ͍
ϰ͘dŚĞƌĞŚĂǀĞďĞĞŶƌĞƉŽƌƚƐƚŚĂƚhŬƌĂŝŶĞŚĂƐƌĞƋƵĞƐƚĞĚƚŚĞĂƐƐŝƐƚĂŶĐĞŽĨƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐƚŽĚĞůŝǀĞƌ
ƵƐƚƌĂůŝĂŶƵƐŚŵĂƐƚĞƌƐĂƐƚŚĞĚĞůŝǀĞƌLJƚŝŵĞŚĂƐďĞĞŶƐůŽǁ͕ŝƐƚŚĞĞƉĂƌƚŵĞŶƚĂǁĂƌĞŽĨƚŚŝƐ
ƌĞƋƵĞƐƚ͍Ͳ,ĂƐƚŚĞĞƉĂƌƚŵĞŶƚŽĨĞĨĞŶĐĞĂƚƚĞŵƉƚĞĚƚŽƐƉĞĞĚƵƉƚŚĞĚĞůŝǀĞƌLJŽĨƚŚĞǀĞŚŝĐůĞƐŝŶ
ůŝŐŚƚŽĨƚŚŝƐƌĞƋƵĞƐƚ͍/ĨŶŽƚǁŚLJŶŽƚ͍
ϱ͘ŽĞƐƚŚĞĞƉĂƌƚŵĞŶƚŚĂǀĞĂĚĞůŝǀĞƌLJƚŝŵĞůŝŶĞŽĨƚŚĞƵƐŚŵĂƐƚĞƌƐ͍/ĨƐŽ͕ĐĂŶƚŚĞĞƉĂƌƚŵĞŶƚ
ƉƌŽǀŝĚĞŵĞǁŝƚŚƚŚĞƚŝŵĞůŝŶĞ͍
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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)
 
Phone: / 
s47E(d)
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000726  
Last updated: 24 October 2023 
 
 
 
 
 
 
          Ukraine 
Key witness: Hugh Jeffrey 
Answer
ϭ͘EŽ͘
Ϯ͘EŽ͘
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ϰ͘ĞĨĞŶĐĞĐĂŶŶŽƚĐŽŵŵĞŶƚŽŶĚŝƐĐƵƐƐŝŽŶƐďĞƚǁĞĞŶhŬƌĂŝŶĞĂŶĚƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͘ĞĨĞŶĐĞŝƐ
ƚƌĂŶƐƉŽƌƚŝŶŐŵŝůŝƚĂƌLJĂƐƐŝƐƚĂŶĐĞƚŽƵƌŽƉĞƵƚŝůŝƐŝŶŐŝƚƐƐƚƌĂƚĞŐŝĐĂŝƌůŝĨƚĨůĞĞƚ;Ͳϭϳ'ůŽďĞŵĂƐƚĞƌͿĂŶĚ
ĐŽŶƚƌĂĐƚĞĚŶƚŽŶŽǀEͲϭϮϰĐŽŵŵĞƌĐŝĂůĂŝƌĐƌĂĨƚ͘
ϱ͘ĞĨĞŶĐĞŵĂŝŶƚĂŝŶƐĂƌĞŐƵůĂƌƐĐŚĞĚƵůĞŽĨĚĞůŝǀĞƌLJƚŽĨƵůĨŝůŝƚƐĐŽŵŵŝƚŵĞŶƚƐ͘ƵĞƚŽŽƉĞƌĂƚŝŽŶĂů
ƐĞĐƵƌŝƚLJ͕ĞĨĞŶĐĞǁŝůůŶŽƚĐŽŶĨŝƌŵƚŚĞĞdžĂĐƚĚĂƚĞƐǀĞŚŝĐůĞƐǁŝůůďĞĚĞůŝǀĞƌĞĚŝŶƚŽhŬƌĂŝŶĞ͘
ϲ͘^ĞĞĂŶƐǁĞƌƚŽYϱ͘
 
 
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)
 
Phone: / 
s47E(d)
s22
 
 
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey
 International Armed Conflict Decision Making Inquiry
Handling Note: Deputy Secretary, Strategy, Policy and Industry, Hugh Jeffrey to lead on 
International Armed Conflict Decision Making Inquiry.
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 duly elected Government to 
act on matters of national importance in the interests of the safety and security of 
Australia. This was recognised by the Joint Standing Committee on Foreign Affairs, 
Defence and Trade in its recommendations released in its report on the ‘Inquiry into 
international armed conflict decision making’. 

The Government response to the Joint Standing Committee on Foreign Affairs, 
Defence and Trade final report on the ‘Inquiry into international armed conflict 
decision making’ was tabled in the House of Representatives on 8 August and in the 
Senate on the 9 August 2023. 
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 
that 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 act swiftly in responding to threats to our 
national security, based on the best advice available. 

Existing arrangements allow the Government to act decisively and respond 
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 respond to 
contingencies in a timely fashion and avoid unnecessary escalations.  
Prepared By:
Cleared By: 
Name: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey

There must be an appropriate balance between enabling the Government to respond 
to challenges to our national interests and security, while ensuring the Parliament has 
effective mechanisms to examine and debate those decisions.

It is essential Australian partners and allies feel assured that Australian commitments of 
support can be relied on.  
Government response to Joint Standing Committee on Foreign Affairs, Defence and Trade 
final report on the ‘Inquiry into international armed conflict decision making’. 

The Government response to the Joint Standing Committee 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 stipulations to the report’s seven 
recommendations. 

The recommendations the Government response has agreed to will enhance 
parliamentary oversight and accountability. 
If pressed: Will the Government establish a new parliamentary 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. 

Further work will be required to determine the precise scope, powers and 
functions of the proposed committee. 

This work will be undertaken by Defence and other relevant departments and 
presented to Government for consideration in due course. 
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. 

This executive power flows from Section 61 of the Constitution and is in practice 
exercised collectively by the National Security Committee. 

The Government response has agreed that a Ministerial statement in both Houses of 
Parliament will be made to inform a timely debate if a decision is made to engage in 
major military operations as a party to an armed conflict. 

Parliament also has opportunities to scrutinise Executive 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 decision to deploy the ADF into armed conflict is among the most significant 
decisions that can be made by the Executive. 
Prepared By:
Cleared By: 
Name: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey

This executive power flows from Section 61 of the Constitution and is in practice 
exercised collectively by the National Security Committee.
If pressed further: Legal authority for deployment of the ADF into international armed conflict.

Details regarding legal advice on constitutional law issues should be directed to the 
Attorney-General’s Department. 
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 governments generally do not release legal advice, 
reflecting the importance of the Government receiving frank and fearless advice. 
If pressed further: Disclosure of legal advice.

The Government response includes agreement to tabling a written statement in 
Parliament setting out the objectives of those major military operations, the orders 
made and its legal basis. 
If pressed: Will the Governor-General be consulted?

In the Australian system of responsible and representative government, deploying ADF 
forces into major armed conflicts is a decision for the elected government and not the 
Governor-General. 
If pressed: Implementation of the Government’s response.

Further work will be required to determine the precise scope, powers and functions of 
the new Joint Statutory Committee on Defence.  

This work will be undertaken by Defence and other relevant departments and 
presented to Government for consideration in due course. 

The other measures agreed to in the Government response will be codified through a 
statement published on the Department of the Prime Minister and Cabinet’s website, 
alongside the Cabinet Handbook.

These measures include Ministerial statements to both Houses of Parliament and 
the tabling of publicly-released Defence strategy documents in both Houses of 
Parliament.
If pressed: Government’s decision to ‘not agree’ to the Australian Greens dissenting 
recommendations.

The Government response does not agree with the dissenting recommendations made 
by the Australian Greens. 

The response agrees with the principles of increasing public discussion and scrutiny, 
and agrees with the majority recommendation that the decision to deploy the ADF into 
a major armed conflict remains with the Executive. 
Prepared By:
Cleared By: 
Name: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey
If pressed: The Australian Green’s reintroduction of ‘Defence Amendment (Parliamentary 
Approval of Overseas Service) Bill 2020’ 

The Australian Greens dissenting recommendations include the recommendation to 
pass this bill. 

The Bill was not supported by the Senate Foreign Affairs, Defence and Trade 
Legislation Committee in November 2021 for a range of reasons, which are set 
out in the report of that Committee. 

This Bill did not proceed past the second reading stage in the Senate in March 2023.  
Background 

Since 1985 several draft bills have proposed conferring the authority to go to war from 
the Executive to Parliament. 

Long-standing Westminster convention allows the Executive to exercise the discretion 
to commit forces to operations overseas. In practice, this power is exercised by the 
Prime Minister and the Cabinet. 

On 30 September 2022, at the Deputy Prime Minister’s referral, the Joint Standing 
Committee established an inquiry into international armed conflict decision making. 

The first public hearing for the inquiry was held on 9 December 2022. Defence 
witnesses include the Vice Chief of the Defence Force; Acting Deputy Secretary 
Strategy, Policy and Industry; Head Military Strategic Commitments; Chief Counsel; 
Acting Deputy Chief of Joint Operations and the Director General Military Legal Service. 

The hearing followed a public submission process that closed on 18 November 2022. 
Over 100 submissions were provided to the inquiry, including one from Defence. 

On 31 March 2023, the Joint Standing Committee on Foreign Affairs, Defence and 
Trade released its final inquiry report which made seven recommendations. 

On 8 August 2023, the Deputy Prime Minister publicly announced the Government 
response to the report. The response was tabled in the House of Representatives on 
8 August 2023 and in the Senate on 9 August 2023.

The Government response agreed, agreed-in-principle or broadly agreed with 
stipulations to the report’s seven recommendations. 

This included agreement to the establishment of a new Joint Statutory 
Committee on Defence, noting further work will be required to determine 
implementation details. 

On 8 August 2023 the leader of the Opposition issued a statement of support. The 
Australian Greens issued a statement critical of the Government’s position. The Deputy 
Chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade Defence 
subcommittee, Mr Andrew Wallace MP, issued a statement supportive of the outcome, 
but added that the inquiry should not have taken place.
Prepared By:
Cleared By: 
Name: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey
Supporting Information
Questions on Notice 
Budget Estimates: 30 and 31 May 2023
 QoN 77, ADF in military operations overseas, Senator Lidia Thrope (Independent, 
Victoria) asked a question about the ADF in military operations overseas.
Freedom of Information (FOI) Requests 
 No FOIs requested.
Recent Ministerial Comments 
 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 response was tabled in the House of 
Representatives by the Minister for Employment and Workplace Relations. 
 On 9 August 2023, the Government response was tabled in the Senate by the Assistant 
Minister for Climate Change and Energy. 
Relevant Media Reporting 
 In the Rioact on 14 August 2023, Andrew McLaughlin wrote an article, Government 
agrees to advice of Parliamentary inquiry into how Australia decides to go to war͘/ƚ
outlines the key recommendations and that the Government has agreed in-principle to 
all of them. 
 In the Australian Financial Review on 9 August 2023, Andrew Tillett wrote article, 
Parliament to debate future troop deployments. It notes that a future commitment of 
Australian troops will trigger a parliamentary debate under changes adopted in 
response to the war powers inquiry. 
 In a broadcast on the ABC on 8 August 2023, 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. 
 In the West Australia on 8 August 2023, Andrew Brown wrote an article, Cabinet 
retains the power to send soldiers to war͘It reflects the media release on the 
Government response to the inquiry and includes comments made by the Australian 
Greens. 
 In Reuters on 8 August 2023, Kirsty Needham wrote an article, Australia says Cabinet 
the decision maker on war, not parliament͘ It reflects the media release on the 
Government response to the inquiry.
Prepared By:
Cleared By: 
Name: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey
 In the NT News on 8 August 2023, Clare Armstrong wrote an article, Parliament will 
debate Australia’s entry into future wars and a new committee will oversee the 
nation’s involvement in conflicts͘It reflects the media release on the Government 
response to the inquiry and highlights countries where parliamentary or congressional 
approval is required to go to war. 
 In the Canberra Times on 8 August 2023, Karen Barlow wrote an article, War powers: 
Defence to be overseen by a new parliamentary committee͘It 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. 
Division:  
Strategy, Policy, and Industry Group
PDR No: 
SB23-000733
Prepared by:
Cleared by Division Head: 
Alanna Mackay
Dr Sheridan Kearnan
Assistant Secretary
First Assistant Secretary
Strategic Policy and Guidance
Strategic Policy
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 18 August 2023
Date: 22 August 2023
Consultation:  
Air Commodore Patrick Keane
Date:  18 August 2023
Acting Chief Counsel
Mob:  
s22
 
Ph: 
s47E(d)
Defence Legal
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary:
Date: 1 September 2023  
Hugh Jeffrey
Deputy Secretary
Strategy, Policy and Industry 
Prepared By:
Cleared By: 
Name: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000733
Last updated: 6 September 2023
         International Armed Conflict Decision Making Inquiry
Key witness: Hugh Jeffrey
Questions on notice referred to within the brief:
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: Alanna Mackay
Name: Hugh Jeffrey
Position: Assistant Secretary, Strategic Policy and Guidance  
Position: Deputy Secretary
Division: Strategic Policy
Group/Service: Strategy, Policy and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 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 lead on details of Contractor 
Engagement.
Key Messages

The Defence Strategic Review recognises that investment in Australia’s regional 
partnerships is essential to maintaining peace, security and prosperity in our region. 

We do not disclose the total cost of our Pacific commitments due to national security 
sensitivities.

Australia will continue to work with Pacific partners through regional architecture to 
address shared security challenges and delivering Pacific-led responses for Pacific 
security priorities.
Talking Points
Pacific initiatives in the 2023-24 Budget 

The Government’s National Defence Statement in response to the Defence Strategic 
Review further reinforces our strong and enduring commitment to regional security.

In 2023-24 Defence is spending approximately 82 per cent of the Defence 
Cooperation Program budget in the Pacific region.

The total Defence Cooperation Program budget is approximately $302 million for 
priority countries and regions including Papua New Guinea; Indonesia; 
Timor-Leste; Pacific Island countries; Southeast Asia; Pakistan; and the Middle 
East. 

We continue to work with Pacific Island countries to support their needs, including in 
the infrastructure, skills development and maritime security domains.
Pacific Infrastructure
If pressed: What progress has been made on Pacific infrastructure commitments and at what 
cost? 

The Indo-Pacific Enhanced Engagement Infrastructure program seeks to deliver security 
related infrastructure with partner nations, contributing to building a region that is 
economically stable, strategically secure, capable and politically sovereign.
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell

In Financial Year 2022-23, Pacific infrastructure projects contributed an estimated 
$97 million to Australian companies through the procurement of goods and services, 
and an estimated $28 million to Indo-Pacific small and medium enterprises.

Since 1 July 2018, Defence’s infrastructure projects in the Indo-Pacific have contributed 
an estimated $326 million to Australian companies through the procurement of goods 
and services, and an estimated $105 million to Indo-Pacific small and medium 
enterprises.

Infrastructure projects are supporting around 3,000 jobs in the Pacific (as measured by 
number of inductions) with industry reporting approximately 94 per cent of positions 
have been filled by locals.
Contractor Engagement 
[Handling Note: Susan Bodell to lead on details of Contractor Engagement.]

The Pacific Division currently maintains three separate ‘above the line’ contracts with 
KPMG as a Strategic Partner for support to Defence’s enhanced engagement agenda in 
the Pacific. There is an active contract for:

Indo-Pacific Infrastructure Branch from 2019 to 2023 with a total approximate 
value of $22 million across this period;

Pacific Maritime Branch from 2021 to 2023 with a total approximate value of 
$5.3 million across this period; and

Pacific and Timor-Leste Branch from 2022 to 2023 with a total approximate value 
of $2.2 million across this period.

These contracts provide a range of services, including program management, 
procurement and finance support. All three engagements are due to expire by 
30 November 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 maintains around 160 purchase orders for ‘below the line’ 
contracts with a variety of 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.
Joint Heads of Pacific Security 

The Joint Heads of Pacific Security meeting brings together operational security leaders 
from 25 nations to discuss shared regional security challenges. 

The Republic of Palau hosted up to 70 chiefs of law enforcement, defence, immigration 
and customs in Koror on 23-24 August 2023. Australia provided secretariat support. 
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell

The 2023 meeting addressed interoperability and information sharing. Senior officials 
took part in tabletop exercises and discussed lessons learned from recent humanitarian 
aid and disaster relief responses.

The Joint Heads of Pacific Security meeting enables regional security leaders to address 
shared challenges in the ‘Pacific-way’ – through consensus, respect for sovereignty and 
collective action to deliver results.

The 2023 meeting is the fifth iteration of the Joint Heads of Pacific Security meeting. 
Papua New Guinea - Lombrum Joint Initiative 

Australia and Papua New Guinea announced the commitment to jointly redevelop the 
Lombrum Naval Base in 2018. The value (up to $175 million) of the tender was 
announced publicly on AusTender. 

On 5 December 2022 the Head Contractor for the project, Clough, entered voluntary 
administration and was subsequently acquired by Webuild on 16 February 2023. Works 
have recommenced on-site under amended contract arrangements. 

The project has an estimated completion date of 30 June 2024 (an 18-month delay) 
and a cost increase associated with the delays due to the administration period. The full 
quantum of these costs is currently being assessed. 

Defence remains committed to the delivery of the Lombrum Naval Base 
Redevelopment on Manus Island.  
Fiji – Maritime Essential Services Centre

Australia committed to the development and construction of this new facility to enable 
Fiji’s Maritime Surveillance and Rescue Capability Centre in Lami, Suva. 

The head construction contract was awarded and works commenced in 2022. Defence 
expects construction of the Maritime Essential Services Centre to be completed in 
Quarter 3, 2024. 

Progress to date includes civil earth works, procurement of materials and 
concrete works. 
Solomon Islands – Western Border Outpost and Eastern Border Outpost

Defence is delivering two Australia-Solomon Islands joint projects to construct border 
outposts in Solomon Islands’ Western and Eastern provinces.

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.

Preliminary activities are in progress at the Western Border Outpost with preparatory 
works commencing in April 2023, and main construction works expected to commence 
in Quarter 1, 2024. Initial Operating Capability is expected in 2025. 
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell

Construction for the Eastern Border Outpost is expected to commence in Quarter 2, 
2024, with completion anticipated 18-months post land acquisition.
Solomon Islands - Police Force Explosive Ordnance Disposal Facility (Hells Point)

Hells Point in Honiara is the home and training grounds of the Royal Solomon Islands’ 
Police Force Explosive Ordnance Disposal experts. Solomon Islands has one of the 
largest concentrations of Unexploded Ordnance and Explosive Remnants of War in the 
Pacific.

Construction at Hells Point has been impacted by domestic negotiations. Defence 
remains committed to working with the Solomon Islands Government to deliver 
this project.

Site establishment occurred in January 2023 and preparatory works at the Hells 
Point Explosive Ordnance Disposal Facility commenced in March 2023. 

The project is on hold pending the outcome of a landownership case in the 
Solomon Islands High Court. 

A blast protected High Mobility Engineering Excavator was gifted for use at the 
site. 
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. Consultations have 
occurred in Fiji, Tonga and the Solomon Islands, and will continue in the region 
throughout 2023.
If pressed: Bilateral Security Agreement with Vanuatu.

Signed on 13 December 2022, the Bilateral Security Agreement provides a legal 
framework for the Australia-Vanuatu security partnership and strengthening practical 
cooperation to meet shared security challenges, including on humanitarian assistance 
and disaster relief, policing, defence and maritime security. 

The Bilateral Security Agreement is a treaty-level agreement between Australia 
and Vanuatu on closer security relations and has been published on the 
Department of Foreign Affairs and Trade website.
If pressed: Is Australia militarising the region? 

No, Australia’s defence cooperation with the Pacific is longstanding.

Australia’s position is that security is the shared responsibility of the Pacific region, of 
which we are a part of.
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
If pressed: Creation of Vanuatu and Solomon Islands Defence Forces. 

The creation of any defence force is the sovereign decision of the nation.

Australia will consider any request for security support from our Pacific partners.

Australia will continue to support both countries with their security needs.
If pressed: Is Defence planning to establish a Pacific Regiment?

The ADF and Pacific security forces work closely together and we are continuing to 
increase the ways in which we do so. 

We have established new embed positions and secondments in the ADF for 
Pacific defence personnel.
Supporting Information
Questions on Notice 
Budget Estimates: 16 June 2023
 QoN 88, Pacific Security, Senator the Hon Simon Birmingham (South Australia) asked a 
number of sub-questions relating to implementation of the Australia Pacific Defence 
School and the Pacific Maritime Security Program.
Freedom of Information (FOI) Requests 
 No FOIs requested.
Recent Ministerial Comments 
 On 28 June 2023, the Deputy Prime Minister was interviewed in the Solomon Islands, 
where he commented on Australia’s relationship with the Solomon Islands.
 On 6 June 2023, the Deputy Prime Minister travelled to Vanuatu to open the Pacific 
Fusion Centre.
 On 9 May 2023, a Ministerial Media Release regarding Pacific focussed initiatives in the 
2023-24 Budget was published.
Relevant Media Reporting 
Papua New Guinea - Lombrum Joint Initiative
 On 12 July 2023, in The National, journalist Rebecca Kuku published an article regarding 
a new maritime college planned for Manus.
 On 11 July 2023, in The National, journalist Rebecca Kuku wrote an article on the 
possibility of an uninterrupted power supply for Manus.
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Fiji – Maritime Essential Services Centre
 On 28 February 2023, Fiji Broadcast Corporation News journalist, Jale Daucakacaka, 
wrote an article on the construction of Maritime Essential Services Centre in Lami being 
on track.
Solomon Islands Defence Force
 On 19 July 2023, ABC News journalist, Stephen Dziedzic, reported on Australia’s 
support to the Solomon Islands defence force.
Solomon Islands – Western Border Outpost and Eastern Border Outpost
 On 22 March 2023, Mike Hughes posted an article on Contact regarding surveying for 
the Solomon Islands. 
 In Defence Connect on 20 March 2023, Robert Dougherty reported on the Royal 
Australian Navy collecting data to help establish survey work to begin on Solomon 
Islands eastern border outpost. 
Bilateral Security Agreement with Vanuatu
 On 5 May 2023, ABC News journalist, Stephen Dziedzic, posted an article regarding 
fears that a landmark security agreement between Australian and Vanuatu could stall 
in the Pacific nation’s parliament. 
 In The ASPI Strategist on 4 July 2023, Lucy Albiston and Blake Johnson wrote an article 
about how Pacific treaties must be built with care and nurtured once they’re in place.
Division: 
Strategy, Policy, and Industry Group
PDR No: 
SB23-000728
Prepared by:
Cleared by Division Head:
Lisa Chadderton
Susan Bodell
Acting Assistant Secretary 
First Assistant Secretary
Pacific Regional Policy & Governance Branch
Pacific Division
Pacific Division
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
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Ph: 
s47E(d)
Date: 16 August 2023
Date: 5 September 2023
Cleared by DFG: 
Date: 1 September 2023
Emma McCarthy
Assistant Secretary Finance, Specialist Groups, Defence 
Finance Group.
Cleared by Deputy Secretary:
Date: 1 September 2023  
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
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Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
Hugh Jeffrey
Deputy Secretary
Strategy, Policy and Industry Group
Questions on notice referred to within the brief:
2023-24 Budget Estimates
Senator Simon Birmingham
Question Number: 88
Date question was tabled: 17 July 2023
Question
1. How many Pacific countries are involved in the Australian Pacific Defence School? 
1. How many people have been trained there? 
2. Are there any plans to incorporate Pacific troops into Australia's domestic defence 
program?
3. Are investments in Australian Federal Police partnerships with Pacific nations counted as 
ODA expenditure? 
4. Please provide an update on commitment to boost support for Pacific Maritime Security? 
5. The Government said it would increase funding by $12m a year from 2023-2024 for aerial 
surveillance activities. 
1. Is this investment on track and what preparation and consultation has taken place? 
6. Given the current contract for aerial surveillance is due to expire in December, what is 
the Department's process for launching tenders or contract renewals? 
7. When will this new funding be distributed and contracts tendered? 
8. What are the key KPIs for these contracts? 
1. What penalties will contracts allow for if KPI's are not met? 
9. The Government said it would provide two King Air 200 aircraft for the surveillance. What 
advice was received to reach the decisions of these aircraft? 
1. What is the range and endurance of the King Air 200? 
2. Is the King Air the best and most appropriate aircraft on the market for aerial 
surveillance? 
10. Have Pacific countries indicated agreement that this is the aircraft with the best 
capabilities to conduct such surveillance?
Answer
1. 2 countries. 43 people. 
2. The ADF does not recruit from the Pacific but supports secondments for in-line positions 
from Pacific defence forces and offers opportunities for lateral transfers for individuals 
with recent overseas military skills and experience to fill capability gaps. 
3. This question should be directed to the Australian Federal Police. 
4. This commitment will come into effect as of 1 July 2023. 
5. Defence is on track to commence spending on the Enhanced Aerial Surveillance Program. 
Defence, with the Forum Fisheries Agency (FFA), have consulted with FFA member 
nations that receive aerial surveillance to inform the scope of the future program. 
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
s47E(d)
/ 
s22
Phone: / 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000728
Last updated: 6 September 2023
    Pacific Engagement
Key witnesses: Hugh Jeffrey; Susan Bodell
6. The current aerial surveillance contract has been extended to December 2024. Defence 
will deliver the Enhanced Aerial Surveillance Program through new commercial 
arrangements established through open Request for Tender processes. 
7. The increased funding will commence in the 2024-25 Financial Year. Two requests for 
tenders will be released: 
x
Unmanned Aerial Vehicles (drones) by the end of 2023. 
x
Enhanced Fixed-wing by mid-2024. 
8. KPIs are being developed. 
9. Two King Air 200 aircraft can be tasked by the FFA member nations to conduct aerial 
surveillance. 
1. Maximum range is up to 3,300 km. 
2. Yes. 
10. The FFA member nations continue to be consulted on the operation and future Enhanced 
Aerial Surveillance Program to ensure it meets their requirements.
Prepared By:
Cleared By: 
Name: Lisa Chadderton
Name: Hugh Jeffrey
Position: Acting Assistant Secretary Pacific Regional
Position: Deputy Secretary
Division: Pacific Division
Group/Service: Strategy, Policy, and Industry
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; 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.

Defence supported the Office of National Intelligence to undertake an urgent risk 
assessment of the implications of climate change for national security.

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 its 
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

The Defence Strategic Review recognises climate change as a national security issue 
that will increase challenges for Australia, Defence and the region.

In Australia, the acceleration of major climate events risks overwhelming the 
Government’s capacity to respond effectively and detracting from Defence’s primary 
objective of defending Australia. 
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
& 
s22
Phone:  
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& 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins

Defence supports the Government in implementing its 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 identifies that climate events already place concurrency 
pressures on Defence, which has negatively impacted preparedness.

The Government has agreed-in-principle to the Defence Strategic Review’s 
recommendation that Defence should be the force of last resort for domestic aid to the 
civil 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 in 2022-23.
What is Defence doing to address and mitigate climate change?

Defence’s role, consistent with Government policy, is to:

ensure our capabilities can perform well amidst the impacts of climate change; 

prepare for long-term challenges, including from greater demands for disaster 
relief in a more competitive security environment; and

look for opportunities to reduce our environmental footprint in ways that also 
deliver operational benefits.

The Defence Strategic Review recognises that the clean energy transition will be critical 
for decarbonisation efforts.

Defence will accelerate its transition to clean energy, as directed by the Defence 
Strategic Review, with a plan to be presented to the Government by 2025.

Defence tracks its greenhouse gas emissions and has a variety of initiatives under way, 
including testing alternate fuel sources with lower emissions profiles and changes to 
land management practices. 

For example, Defence is investing an additional $64 million in the Defence Renewable 
Energy and Energy Security Program.

This is a 10-year program enabling the installation of large scale, stationary 
energy projects such as microgrids, clean energy generation and energy storage. 

Defence is also actively working with our international allies and partners in responding 
to climate change.
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
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& 
s22
Phone:  
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& 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins

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 Australian 
Prime Minister and United States President 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. Further, 88 tons of construction waste was recycled.

Defence also supports our region with 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 Assist, 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.

Defence will continue to play an important role in humanitarian assistance.

Defence’s Pacific Support Vessel, Australian Defence Vessel Reliant, will provide 
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 have, primary responsibility 
for providing emergency response services in their respective jurisdictions.
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
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& 
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Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins

The Commonwealth are 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 Commonwealth crisis responses and 
recovery capabilities to support state and territory-led crisis response and recovery 
efforts as an alternative to the ADF. 
If asked: 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

In 2022, the Office of National Intelligence-led national climate assessment was 
delivered to the Office of the Prime Minister.

On 2 February 2023, the most recent Australia–United Kingdom Ministerial 
Consultation was held in Portsmouth, United Kingdom.

On 24 April 2023, the Defence Strategic Review was released by the Prime Minister.

On 11 July 2023, the inaugural Senior Officials Climate Working Group on Climate Risk 
was held virtually with the United States.

On 29 July 2023, the most recent Australia–United States Ministerial Consultation was 
held in Brisbane.
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
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& 
s22
Phone:  
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& 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins
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. 

Defence supported the Office of National Intelligence to undertake this 
assessment by providing input into the assessment that examined climate change 
impacts on Defence.

The assessment has been delivered to the Prime Minister.

The Prime Minister stated at Question Time on 7 August 2023 that: “The Government 
does not release Office of National Intelligence assessments that are provided to the 
National Security Committee. (…) the Government does not release, and we make no 
apologies for not releasing national security advice, which appropriately goes to the 
National Security Committee. That is a position that we have had for a long period of 
time and that will remain the position.” 
Supporting Information
Questions on Notice

No QoNs asked.
Freedom of Information (FOI) Requests

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.
Recent Ministerial Comments 

On 14 September 2023, the Foreign Minister 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.

On 29 July 2023, the Deputy Prime Minister released the Joint Statement on Australia-
U.S. Ministerial Consultations 2023, which includes reference to the first Senior 
Officials’ Working Group on Climate Security Risk formed to strengthen coordination on 
climate security initiatives. 

On 3 February 2023, the Deputy Prime Minister released the Joint Statement on 
Australia-United Kingdom Ministerial Consultations, committing to reducing and 
mitigating the climate impacts of our respective defence activities.
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
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& 
s22
Phone:  
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& 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins
Relevant Media Reporting 

On 13 September 2023, in The Canberra Times, Karen Barlow wrote that former Chief 
of 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, in the Guardian, Daniel Hurst wrote an article which includes 
quotes from Green’s senator David Shoebridge and Independent ACT senator David 
Pocock calling for the release of the Office of National Intelligence climate risk 
assessment. 

On 24 August 2023, in The Canberra Times, Karen Barlow wrote that 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, in The Guardian, Daniel Hurst wrote an article 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.    

On 3 August 2023, in The Guardian, Daniel Hurst published 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.

On 18 June 2023, in The Canberra Times, journalists Chris Barrie, John Blackburn and 
Ian Dunlop wrote an article entitled Defence review reflects a profound failure of 
leadership. Former Chief of Defence Force Admiral Chris Barrie criticised the Defence 
Strategic Review for its response to climate change, the Government for not releasing a 
public version of the Office of National Intelligence climate risk assessment and called 
for a National Assessment that examined climate change in a domestic setting.
Division:
Strategy, Policy. Industry Group
PDR No: 
SB23-000731
Prepared by:
Cleared by Division Head: 
Catherine Bell
Dr Sheridan Kearnan
Acting Assistant Secretary
First Assistant Secretary
National Security and Resilience Branch 
Strategic Policy
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 18 August 2023
Date: 19 October 2023
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
& 
s22
Phone:  
s47E(d)
& 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins
Consultation: 
Date: 17 August 2023
Office of National Intelligence 
Ph: s47E(d)
s47E(d)
 
Consultation: 
Date: 17 August 2023
Department of Home Affairs 
Mob: s22
     
s47E(d)
Acting Senior Director
National Resilience Taskforce  
Consultation: 
Date: 17 August 2023
National Emergency Management Agency
Mob: s22
      Ph: s47E(d)
s47E(d)
Director Policy Sprint  
Consultation: 
Date: 18 August 2023
Department of the Prime Minister and 
Ph: s47E(d)
Cabinet
s47E(d)
Advisor  Defence Industry
Strategy and Space   
Consultation: 
Date: 24 August 2023
International Policy Division 
Mob: s22
      Ph: s47E(d)
 
Sally Timbs
Assistant Secretary 
United States Alliance Management 
Consultation: 
Date: 24 August 2023
Australian Defence Force Headquarters
Mob: s22
      Ph: s47E(d)
 
Commodore Michael Turner
Director General 
Force Exploration   
Consultation: 
Date: 17 August 2023
Associate Secretary Group 
Mob: s22
      Ph: s47E(d)
s47E(d)
Director Strategy
Policy and Engagement
Defence Strategic Review Task Force
Consultation: 
Date: 24 August 2023
Security and Estate Group 
Mob: s22
      
Felix Bowman-Derrick
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
& 
s22
Phone:  
s47E(d)
& 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000731
Last updated: 5 September 2023
    
            Climate Change
Key witnesses: Hugh Jeffrey; Vice Admiral David Johnston; Celia Perkins
Assistant Secretary 
Environment and Engineering
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary:
Date: XX October 2023 
Hugh Jeffrey
Deputy Secretary
Strategy, Policy, and Industry
Prepared By:
Cleared By: 
Name: Catherine Bell
Name: Hugh Jeffrey 
Position: Acting Assistant Secretary National Security and Resilience 
Position: Deputy Secretary
Division: Strategic Policy  
Group: Strategy, Policy, and Industry 
Phone:  
s47E(d)
& 
s22
Phone:  
s47E(d)
& 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
External Workforce - Contractors and Consultants 
Handling Note: Steven Groves, Chief Finance Officer, to lead on external workforce. 
Key Messages

Defence is committed to supporting the Government’s plan to strengthen the public 
service by increasing the proportion of work undertaken by public servants as 
opposed to contractors.

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 has made progress towards this target with a genuine net reduction of 908 
contractors by September 2023, reported in an External Workforce Census – the 
second in 2023 – which was conducted over 11–15 September. This is in line with 
internal targets.

Defence will continue to use specialist and technical expertise – full-time equivalent 
provided through the engagement of an 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 further 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 to 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 of work from contracted positions to APS staff, Defence was 
provided 660 additional Average Staffing Level in 2023-24, increasing to 2,000 Average 
Staffing Level in 2025-26 (ongoing).
What is the size of Defence’s external workforce?

The most recent External Workforce Census in September 2023 reported a total of 
35,924 full-time equivalent engaged as part of the external workforce. Overall, the total 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
external workforce reduced by 1,406 full-time equivalent (4 per cent) compared to the 
March 2023 Census. The reduction largely reflects progress towards the Defence 
contractor reduction targets.

28,856 full-time equivalent, or 80 per cent were engaged through outsourced service 
providers. 

This is an increase of 410 from 28,446 full-time equivalent (76 per cent of the 
total) since the March 2023 census. This result includes 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 reflects:

A genuine decrease of 908 contractors since March 2023

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 is 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 our 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 or 11 per cent. This is on 
track to meet the agreed targets of 2000 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.

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.
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves

Defence has – and will continue – to operate under the workforce policies set by 
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.
What is the moratorium on contracting recently separated Defence personnel? 

Effective from 7 August 2023, a moratorium was issued as a directive from the 
Secretary and Chief of the Defence Force. 

The moratorium directs that any decision by a Defence official to contract an ADF 
member (SERCAT 6 or 7) or APS employee who has separated from Defence within the 
past 12 months into ‘Above the Line’ contractor roles is to be made by exception.

There are a number of employee categories that are exempt from the moratorium. 
These include:

ADF members who have medically transitioned out of the ADF; 

ADF members who are transitioning due to Command Initiated Transfer to the 
Reserves or redundancy; or

APS employees who have retired on medical grounds and are engaged as part of 
a rehabilitation or return-to-work plan.
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 
September 2023 (% 
March 2023 (% change)
March 2022
by Category
change)
Contractors
6,742 (down 21%)
8,523 (up 3%)
8,311 
Outsourced service 
28,856 (up 1%)
28,445 (up 9%)
26,199
providers
Consultants
326 (down 10%)
361 (down 2%)
370
Total
35,924 (down 4%)
37,330 (up 7%)
34,880 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
External Workforce Expenditure over Time
Consultants
2022-23 
2021-22 
2020-21 
2019-20 
($m)
($m)
($m)
($m)
Expenditure on consultancy contracts 
178
170
127
114
(GST inclusive)
Expenditure on consultancy contracts 
162
154
116
104
(GST exclusive)
Expenditure (GST exclusive) as a 
0.34 per 
0.33 per 
0.28 per 
0.26 per 
percentage of Defence expenditure
cent
cent
cent
cent
Contractors
2022-23 
2021-22 
2020-21 
2019-20 
($b)
($b)
($b)
($b)
Expenditure on contractors (GST 
2.572
2.487
1.873
1.520
exclusive)
Expenditure as a percentage of Defence  5.33 per 
5.38 per 
4.50 per 
3.90 per 
expenditure
cent
cent
cent
cent
Outsourced Service Providers
2022-23
2021-22
2020-21
2019-20
($b)
($b)
($b)
($b)
Expenditure on outsourced service 
11.513
13.072
10.955
10.410
providers (GST exclusive)
Expenditure as a percentage of Defence  23.88 per 
28.28 
26.10 
26.40 per 
expenditure
cent
per cent
per cent
cent
‘Big Four’ and Accenture

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). Big Four 
resources included:

655 contractors (down from 884 full-time equivalent)
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves

316 outsourced service providers resources (down from 338 full-time equivalent)

41 consultants (down from 54 full-time equivalent) 

632 KPMG full-time equivalent (down 48 full-time equivalent)

216 Deloitte full-time equivalent (up 43 full-time equivalent)

54 Pricewaterhouse Coopers full-time equivalent (down 199 full-time equivalent); 
and 

110 Ernst & Young full-time equivalent (down 60 full-time equivalent).

In September 2023, in addition to Big Four resources, 323 full-time equivalent from 
Accenture were delivering services to Defence (up from 261 full-time equivalent in 
March 2023) which included: 

304 outsourced service provider resources (up from 232 full-time equivalent); 
and 

19 Contractors (down from 29 full-time equivalent).

The Big Four and Accenture provide many services to Defence, but services 
predominantly relate to project management (532 fulltime equivalent or 40 per cent) 
and IT (442 full-time equivalent or 33 per cent).

For 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).

For the Big Four, expenditure was categorised as contractors (66 per cent), outsourced 
service providers (26 per cent) and consultants (8 per cent).
Major Service Providers

Major service providers must be members of the Defence Support Services panel and 
are 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 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
-
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 Kellogg Brown & Root full-time equivalent (down 67 full-time equivalent); 

975 Nova full-time equivalent (up 67 full-time equivalent); 

715 Jacobs full-time equivalent (up 27 full-time equivalent); and 

1,754 Team Downer full-time equivalent (down 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 
Budget Estimates: 21 June 2023
 QoN 101, Consultants, Senator Jacqui Lambie (Jacqui Lambie Network, Tasmania) asked 
to be provided with details of consultants from February to June 2023. TThe answer to 
this QoN was tabled on 14 July 2023.
Freedom of Information (FOI) Requests 
 In August 2023, a media organisation sought access under FOI to documentation 
relating to most recent copy of Defence's March 2023 External Workforce Census 
results. TThe documents were released on 21 September. 
Recent Ministerial Comments 
 No recent comments.
Relevant Media Reporting 
 On 26 September 2023, The Australian published an article 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 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
outsourced workers engaged by the department rose by 7 per cent in the year 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 the Defence Department. 
 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 21 August 2023, The Age published an article titled AUKUS deal: consultants to get 
$8.5m. Journalist Matthew Knott reported one of the Big Four consultancy firms will 
receive almost $8.5million in taxpayers’ money over the next year to help design a new 
agency to monitor safety issues associated with Australia’s acquisition of nuclear-
powered submarines under the AUKUS pact. 
 On 9 August 2023, The Australian Financial Review published an article titled Defence 
used as source of ‘almost unlimited growth’. Journalist Tess Ikonomou reported 
Australia’s biggest consultancy firms were awarded contracts worth $3.7 billion by the 
ADF during the past decade. 
 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 8 August 2023, The Canberra Times published an article titled New rules will see 
contractors slashed. Journalist Miriam Webber reported that Defence implemented a 
moratorium on entering contracts with former staff within 12 months of them leaving 
the department. 
 On 7 August 2023, the ABC published an article titled KPMG consultants overcharging 
Defence while raking in billions.Journalist Angus Grigg reported whistleblowers say 
Defence was charged for work never done and jobs not needed and the use of 
consultants in government is wasting money and damaging accountability.
 On 7 August 2023, The Canberra Times published an article titled, Defence contractor 
spending hits $26b. Journalist Sarah Basford Canales reported Australia’s Department 
of Defence has racked up a $26 billion bill for contractors and consultants over the last 
financial year, totalling more than half of what all the other federal government 
agencies have spent combined.
 On 1 August 2023, The Australian Financial Review published an article titled, Big 
consulting firms lose $500m in taxpayer work. Journalist Ronald Mizen reported 
government spending on Australia’s top consulting firms was slashed by more than 
$500 million in 2022-23. 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
Division:
Budgets and Financial Services
PDR No: 
SB23-000736
Prepared by:
Cleared by Division Head: 
Michael Cosgrove
Sam Volker
Assistant Secretary 
First Assistant Secretary 
Budgeting and Reporting
Budgets and Financial Services
Mob:  
s22
Ph: 
s47E(d)
Ph: s47E(d)
Date: 16 October 2023
Date: 17 October 2023
Cleared by CFO / DPG / DSR:
N/A
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 17 October 2023 
Steven Groves
Chief Finance Officer
Questions on notice referred to within the brief:
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 
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. 
Prepared By:
Cleared By: 
Name: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000736
Last updated: 17 October 2023
               External Workforce - Contractors and Consultants 
Key witness: Steven Groves
- 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
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: Michael Cosgrove
Name: Sam Volker
Position: Assistant Secretary Budgeting & Reporting
Position: First Assistant Secretary Budgets and Financial Services
Division: Budgets & Financial Services
Group/Service: Defence Finance Group
Phone: s22
Phone: s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.
Recruitment and Retention
Handling Note: 

Deputy Secretary, Defence People, Justine Greig and Chief of Personnel, 
Lieutenant General Natasha Fox to lead on Recruitment and Retention.
Key Messages

Defence is currently facing significant challenges to recruit, retain and grow its ADF 
and APS workforce.

To remain a competitive employer of choice Defence is modernising and introducing 
contemporary practices to support its diverse workforce, including through pay and 
conditions, education and ways of working.

The Government’s response to the Defence Strategic Review recognises investment 
in the growth and retention of a highly-skilled Defence workforce as one of six 
priorities. Action is required to stabilise the current workforce, set conditions for 
growth and achieve targets to deliver capability.

The current workforce growth target is 18,500 for Defence by 2040. While 12,500 of 
this workforce has been funded and allocated to support the 2020 Force Structure 
Plan, the capability priorities outlined in the Defence Strategic Review require a 
reprioritisation of the Integrated Investment Program.

In October 2022 the Secretary and the Chief of the Defence Force directed six 
retention initiatives be implemented including: greater access to professional 
development, recognition 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 an enterprise-level employee value proposition 
framework.

The new Recruiting Services Contract with Adecco Australia commenced on 
1 July 2023, enabling Defence to update and modernise the current ADF recruiting 
system to achieve current and future workforce requirements. 
Talking Points
Workforce Figures and Growth

There is planned workforce growth of 18,500 in Defence from 2024-25 to 2039-40, 
bringing the total permanent workforce to over 100,000. 

An average growth of 1,000 ADF per year is around 1.2% of the planned ADF workforce 
growth (total ADF workforce will be in excess of 75,000).
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/ 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.

Of this, approximately $38 billion has been funded and allocated to support growth of 
12,500 – comprised of 10,449 ADF Average Funded Strength and 2,051 APS Average 
Staffing Level – in support of the 2020 Force Structure Plan. The remaining 6,000 
workforce growth was to be assessed and allocated as part of the Government’s 
response to the Defence Strategic Review. 

Work has commenced to reprioritise the Integrated Investment Program. Once 
finalised, the workforce will be reallocated to align with the six priorities of the Defence 
Strategic Review. 
As at:
1 August 2023
1 September 2023
1 October 2023
ADF workforce 
57,233
57,234
57,218
(headcount)
ADF Change 
-882
-768
-756
rolling 12 months
ADF Separation Rate (%)
11
10.7
10.5
APS Workforce
18,241
18,409
18,579
(headcount)
APS Change
+1,327
+1,332
+1,471
rolling 12 months
APS Separation Rate (%)
11.8
11.7
11.3
Defence Strategic Review

In its response to the Defence Strategic Review the Government identified growing and 
retaining a highly-skilled Defence workforce as an immediate priority. The Government 
response affirmed that people are Defence’s most important capability. 

The Government has agreed to the Defence Strategic Review’s four recommendations 
relating to recruitment and retention.

Options are being developed to change Defence’s recruitment framework to 
improve the eligibility pool of potential applications and to align service 
recruitment requirements to military employment, especially in key technical and 
specialist trades such as cyber, engineering, and space. s47C
 
 

Options are being developed to change the policy and risk settings to achieve 
recruitment targets by 2024. s47C
 

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.
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone: s47E(d)
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.

A comprehensive strategic review of the ADF Reserves, including consideration of 
the reintroduction of a Ready Reserve Scheme, will be conducted by 2025.
Recruiting and Retention Initiatives

Defence is implementing a range of initiatives aimed at uplifting the Employee Value 
Proposition.

Defence commenced the ADF Employment Offer Modernisation Program in 
October 2019 to update and simplify the ADF employment offer. Informed by member 
feedback it focuses on three streams of work: allowances, housing and categorisation. 

Through these work streams we have implemented:

better housing flexibility and choice for ADF members with additional housing 
options now available;

the option of a flexible home location for members posted to sea, more housing 
choices in metropolitan areas, a flexible housing trial to support diverse family 
needs and an extension of the time to access a removal post-transition;

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; and

a Military Salary included in members’ base salary that combines service, reserve, 
trainee and uniform allowances. 

The next suite of initiatives being implemented from May 2023 through to mid-2024 
include:

a new allowance framework, called 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.

Phase Two of the Military Factor Framework implementation will commence in 
mid-2024.

In October 2022 the Secretary and the Chief of the Defence Force directed the 
implementation of six retention initiatives aimed at reducing workforce irritants and 
regaining workforce confidence. The following initiatives have now been implemented:

greater access to professional development;
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone: s47E(d)
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.

recognition 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 immediate actions in 2023-24 is estimated to be between 
$100 million and $110 million.

As part of the 2023-24 Budget the Government agreed to progress the following 
initiatives in support of workforce growth and retention:

an ADF Continuation Bonus, whereby ADF personnel committing to a further 
three years of service could be eligible for a $50,000 bonus payment – a 
Government investment of approximately $395 million that responds to the 
Defence Strategic Review; and

a Defence Housing Feasibility Review, to consider the contemporary and future 
housing needs of Defence and ADF members, review policies relating to Defence 
residences and rental assistance against these needs, review current home 
ownership support benefits and policies, and identify new opportunities to 
encourage and enable home ownership for ADF members ($2 million has been 
allocated in 2023-24). 

After tender evaluation and contract negotiations, Grosvenor was 
determined to provide the best value for money. The total cost is $559,222 
(including GST).

An ADF Remuneration Review is underway and is expected to deliver recommendations 
to the Secretary and Chief of the Defence Force in Quarter 1, 2024 ($3.2 million has 
been allocated in 2023-24). 

Deloitte placed first in terms of value for money as a result of the Tender 
Evaluation Board. The total cost is $1,648,933 (including GST).
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 contract will facilitate Defence achieving the workforce transformation 
outlined in the 2020 Force Structure Plan and 2020 Defence Strategic Update.

The new arrangements work towards delivering 100 per cent of targets 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).
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone: s47E(d)
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.
If pressed: What is Defence currently doing to address ADF recruiting priorities?

Immediate initiatives to increase recruiting outcomes in the short-term include 
increasing:

candidate care and contact through the recruiting process;

the number of events and engagements Defence Force Recruiting attends, 
particularly in schools, following a dramatic decrease in face-to-face 
engagements due to COVID-19;

In 2019-20 Defence Force Recruiting conducted 3,552 events.

Throughout COVID-19, Defence maintained engagement via virtual 
platforms. In 2020-21 Defence conducted 3,377 events and 4,039 in 
2021-22.

In 2022-23 Defence focussed on face-to-face engagements alongside virtual 
events with 3,657 conducted.

From July to December 2023 Defence Force Recruiting has already 
undertaken or is planning to conduct 1,903 events. 
Financial Year
Total Planned 
Cancelled 
Total 
Events
(COVID & Other)
Conducted
2019-20
5,247
1,695
3,552
2020-21
5,055
1,678
3,377
2021-22
5,734
1,695
4,039

maintaining the virtual engagements and processes that were effective through 
COVID-19; and

communicating across a variety of media channels how Defence employment can 
address the contemporary needs of young Australians.

In line with the Defence Strategic Review recommendations Defence is also reviewing 
policy and risk settings to better meet recruitment needs by 2024.

The following table captures results against targets as a raw measure and as a 
percentage for the past three financial years.
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone: s47E(d)
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.
Financial 
2020-21
2021-22
2022-23
2023-24
Year
To Date
Enlistment/ 
87.6% 
79.6% 
75.7% 
13.4% 
Target
(7,056/8,059)
(6,369/8,002) 
(6,570/8,676) 
(1,352/10,115) 
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 
 On 19 October 2023, The Australian posted an article titled Shrinking ADF threatens 
planned capability boost. The article highlights the decreasing workforce figures 
included in the Defence Annual Report.  
 On 9 August 2023, The Mandarin posted an article on Lieutenant General Fox’s 
appointment to Chief of Personnel͕ĐŽǀĞƌŝŶŐĞĨĞŶĐĞrecruiting and retention, including 
a ‘plug on recruiters poaching’ APS personnel.
 On 2 May 2023, The Daily Mail posted an article titled ADF promised $400m for 
retention bonuses. The article mentions that ADF personnel could receive a $50,000 
cash bonus under a federal government push to expand the size of the nation's 
military.
 On 2 May 2023, the National Tribune posted an article titled Albanese Government 
invests in our future Defence Force. The article notes the $50,000 Continuation Bonus 
pay is in response to the Defence Strategic Review.
 On 1 May 2023, The Financial Review published an article titled Troops to get $50K 
bonuses to stay in army life. Journalist Andrew Tillett wrote that bonuses were being 
offered as part of efforts to combat a recruitment and retention crisis confronting the 
military.
 On 15 December 2022, The Canberra Times published an article titled, Is your APS boss 
a dud? Best, worst managers ranked. Journalist Harley Dennett stated the APS census 
revealed Defence officials had the least faith in the competence of their senior leaders 
in 2022. 
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone: s47E(d)
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000737
Last updated: 20 October 2023
       Recruitment and Retention
Key witnesses: Justine Greig; Lieutenant General Natasha Fox.
Division:
Recruiting and Retention
PDR No: 
SB23-000737
Prepared by:
Cleared by Division Head: 
Nadia Cooper
Rear Admiral Robert Plath
Acting Assistant Secretary
Head Recruiting and Retention
Recruiting and Retention
Mob:  
s22
Ph: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 19 October 2023
Date: 19 October 2023
Consultation:  
Colonel Kirk Lloyd
Date:  6 September 2023  
A/Assistant Secretary
Mob:  s22
   Ph: s47E(d)
People Policy and Employment Conditions
Group Captain Chris Ellison
Date:  6 September 2023  
Director Military Recruiting
Mob:  s22
 Ph: s47E(d)
Defence Force Recruiting
Commodore Virginia Hayward
Date:  19 October 2023  
Director General
Mob:  s22
 Ph: s47E(d)
Workforce Planning
Cleared by DSR:
Amy Hawkins
Date:  22 August 2023  
First Assistant Secretary
Policy and Engagement
Defence Strategic Review 
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date:  17 October 2023  
Justine Greig
Deputy Secretary
Defence People
Lieutenant General Natasha Fox
Chief of Personnel
Defence People Group
Prepared By:
Cleared By: 
Name: Nadia Cooper
Name: Justine Greig
Position: Acting Assistant Secretary 
Position: Deputy Secretary
Division: Recruiting and Retention
Group/Service: Defence People
Phone:  
s47E(d)
/ 
s22
Phone: s47E(d)
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              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 115 of the 143 Inquiry 
recommendations.

Matters 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 (pronounced ‘Lay-ee’) was never enacted. Defence and 
the United States consider this matter closed.

Support services are available to participants and other individuals who are involved 
in, or affected by, the Afghanistan Inquiry whether they are current or former serving 
ADF members or their families.
Talking Points
Compensation

The Afghanistan Inquiry report made 15 recommendations to pay compensation to 
alleged victims or their families where there is credible evidence of property damage, 
assault and unlawful killing, without awaiting the establishment of criminal liability.

No feasible options for making payments have been identified so far, but Defence 
continues to work with Commonwealth agencies to explore options that would give 
effect to the recommendations.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone: / 
s47E(d) s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.

Defence, via the Afghanistan Inquiry Reform Program, originally aimed to finalise the 
compensation recommendations by June 2021. Due to the complexities identified, 
Defence continues to work on a pathway to resolution.
If pressed: What are the legal, practical and logistical issues with making payment?

The issue of compensation is complex and comes with a number of legal, practical 
and logistical issues due to the ongoing geopolitical situation in Afghanistan. These 
include:

lack of Australian diplomatic presence in Afghanistan;

difficulties with getting funds into Afghanistan in light of the liquidity crisis and 
problems with the banking sector;

sanctions and policy limitations applicable to any engagement with the Taliban; 
and

it is not safe or practicable to identify and locate individuals to whom 
compensation recommendations relate (noting the Report did not provide 
sufficient identifying details).
Command Accountability

The Deputy Prime Minister is considering command accountability. Should the Deputy 
Prime Minister consider that an honour or award be cancelled, he will make a 
recommendation to the Governor-General for his determination.

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. 

The Chief of the Defence Force wrote to individuals involved providing an update on 
this process. 
-
These letters and associated information is the subject of a Public Interest Immunity 
claim as disclosure would/could unreasonably harm the privacy of individuals and 
the integrity of the ongoing decision making process.

The Chief of the Defence Force provided the Deputy Prime Minister with relevant 
material for consideration.
If pressed: W
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. 
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.

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.

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 n
not recklessly indifferent to whether their subordinates were allegedly 
committing war crimes and d
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. 
Leahy Law (Lay-ee)

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.

Defence was officially notified by the 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.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
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 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 laws 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: Any 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.
If pressed: What identity protections are available for former members of the Special Air 
Services Regiment subject to criminal prosecution and has there been any consideration for 
legislative change?

Defence Protected Identity status (PID status), is a Defence policy afforded to some 
current serving ADF members. It is not based on specific legislation but policy is set out 
in the Defence Security Principles Framework and court suppression orders in litigation 
matters.

Protected Identity status is afforded to protect current sensitive Defence operations, 
capabilities and effects, and Defence partners, as well as to safeguard the security of 
relevant individuals and their families.

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 Protected Identity status.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.

Defence will take steps to protect from public disclosure the identity of its members 
who do have Protected Identity status. 

It is not Defence’s position, nor has it ever been, to publish details of individuals with an 
active Protected Identity status. In the context of civil and criminal court cases, this 
includes the Government, on behalf of Defence, applying for suppression orders to 
prohibit the disclosure of information in certain circumstances. Decisions regarding 
disclosure are a matter for the courts.

No further consideration into legislative change has occurred since the Government 
agreed with the recommendation of the 2019 Comprehensive review of the Legal 
Frameworks of the National Intelligence Community, conducted by Mr Dennis 
Richardson AC, that there was not a need for specific statutory protections for Special 
Forces identities.
Afghanistan Inquiry Reform Program

Released on 30 July 2021, the Afghanistan Inquiry Reform Plan set out the Defence 
strategy for responding to the Afghanistan Inquiry. The Afghanistan Inquiry Reform Plan 
established the Afghanistan Inquiry Reform Program to coordinate and drive this work. 
The Afghanistan Inquiry Reform Program aim to achieve the following two objectives:

Objective One (address the past), delivered through three work packages; and

Objective Two (prevent recurrence), delivered through a fourth work package. 

Work being delivered though the Afghanistan Inquiry Reform Program is not limited to, 
and goes beyond, addressing Afghanistan Inquiry recommendations. This has enabled 
Defence to consider and respond to the broader root causes of the matters identified 
in the Afghanistan Inquiry report. 

Significant progress includes:

The revision of several doctrinal publications to incorporate lessons from the 
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.

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.  
Supporting Information 
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Questions on Notice 
Senate: 27 July 2023
 QoN 2312, Conduct of SAS Soldier, Senator David Shoebridge (Greens, 
New South Wales) asked for details on the appointment of a soldier in charge of the 
Combined Joint Special Operations Task Force for Operation Talisman Sabre. 
House of Representatives: 15 June 2023
 QoN 194, Publication of SAS names, the Hon Barnaby Joyce MP (Nationals,
New South Wales) asked about legislative change to protect the identities of Special Air 
Service Personnel from publication if charged with an alleged war crime. 
Senate: 14 June 2023
 QoN 2179, Leahy Law, Senator David Shoebridge (Greens, New South Wales) asked a 
series of questions about Defence’s actions upon receipt of correspondence from the 
United States relating to Leahy Law, including if Government and/or Parliament was 
briefed. 
Senate Budget Estimates Hearings: 30-31 May 2023
 QoN 2, 8, 22 & 50, Leahy Law, Senator Jacqui Lambie (Jacqui Lambie Network, 
Tasmania) asked for details of soldiers removed from their positions, for the letters the 
Chief of the Defence Force wrote to individuals, details on the United States’ Leahy Law 
and to be provided information on Defence briefings to Government on Leahy Law.
 QoN 12, Awards being removed, Senator Malcolm Roberts (One Nation, Queensland) 
asked to be provided details on the honours or awards subject to command 
accountability considerations. 
 QoN 58, United States engagement of Australian Special Forces, Senator David 
Shoebridge (Greens, New South Wales) asked for what restrictions were placed on 
Australian Special Forces by the United States Leahy Law considerations. 
Senate: 11 April 2023
 QoN 1898, Afghanistan Inquiry Response, Senator David Shoebridge (Greens,
New South Wales) asked a series of questions about compensation and administrative 
actions against 17 serving members. 
Senate Additional Estimates Hearing: 15 February 2023
 QoN 43, Honours and Awards, Senator Jacqui Lambie (Jacqui Lambie Network, 
Tasmania) asked for a copy of the Chief of the Defence Force’s Distinguished Service 
Cross nomination and citation, and the Chief of the Defence Force’s letters to 
personnel subject to command accountability considerations. 
Senate: 16 December 2022
 QoN 1140, Brereton Report Implementation, Senator David Shoebridge (Greens, 
New South Wales) asked a series of questions about the implementation of 
recommendations arising from the Afghanistan Inquiry and action taken by Defence 
against alleged perpetrators of war crimes. 
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Freedom of Information (FOI) Requests
 In June 2023, a media organisation sought access to the tenth quarterly report from 
the Afghanistan Inquiry Implementation Oversight Panel. A
A redacted version of the 
report was released on 12 July 2023. Previous quarterly reports have been partially 
released prior.
 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, ccopies 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 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 released ministerial submissions 
were released relating to command accountability. No documents were found relating 
to the Chief of 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.
Recent Ministerial Comments
 No recent comments.
Relevant Media Reporting 
 None identified.
Division:
Afghanistan Inquiry Response Task Force
PDR No: 
SB23-000740
Prepared by:
Cleared by Division Head: (Band 2/2* level)
Rear Admiral Brett Wolski
Rear Admiral Brett Wolski
Head Afghanistan Inquiry Response Task 
Head Afghanistan Inquiry Response Task 
Force
Force
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 31 August 2023
Date: 31 August 2023
Consultation:  
Date:  22 August 2023  
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Dr Kate Chetty
Mob:  
s22
 
Ph: 
s47E(d)
Director 
Office of the Chief Counsel
Mob:  
s22
 
Ph: 
s47E(d)
Adrian D’Amico
Chief Defence Counsel
Cleared by CFO / DPG / DSR: N/A
Cleared by Deputy Secretary (or equivalent Band 3/3*):
Date: 6 September 2023  
Vice Admiral David Johnston
Vice Chief of the Defence Force
Questions on notice referred to within the brief:
Budget Estimates
Senator Jacqui Lambie
Question Number: 2
Date question was tabled: 14 July 2023
Question
Senator LAMBIE: Do you know whether the Department of Defence has been more broadly 
approached, apart from what you have just told me, by the US government in relation to this 
law?
Lt Gen. Stuart: I'm not aware, no.
Senator LAMBIE: Your predecessor, General Rick Burr, seems to think the US government did. 
Are you aware that General Rick Burr wrote some letters to some soldiers in about February 
last year where he referred to the Leahy law, a law of United States of America, as a reason 
for these soldiers to no longer serve in the Australian Special Air Services Regiment?
Lt Gen. Stuart: I'm not, but I can take that on notice.
Senator LAMBIE: Do you know anything about that, General Campbell? You can feel free to 
say, because I have quite a few questions on this law.
Gen. Campbell: I'd have to take it on notice.
Senator LAMBIE: Is that because you don't know about the law or is that because it's Rick 
Burr and you need to go and speak to him?
Gen. Campbell: A combination of I'd have to talk to the General, I'd have to refer to 
correspondence and I'd just have to brush up on the Leahy law.
Senator LAMBIE: Can you tell me if part or all of that United States law is being used to sack 
Australian soldiers?
Gen. Campbell: I would have to take that on notice.
Senator LAMBIE: You're the CDF, surely you must know whether or not that law is there to 
sack soldiers and if the military is using that law to remove them.
Gen. Campbell: We operate under Australian law, so I'm going to have to take this on notice.
Senator LAMBIE: Do you know if any deals were done in 2018-19 where that law was chucked 
in? And I'll go back to my original question. The law was created to make sure it prohibits US 
forces from working with war criminals, so was this law used as more of a push on those who 
have been accused of war crimes? Was this another reason? Was that used as part of that 
reasoning?
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Gen. Campbell: Senator, I don't know that that is the case. I have to take it on notice.
Answer
Please refer to QoN #22.
Budget Estimates
Senator Jacqui Lambie
Question Number: 8
Date question was tabled: Yet to be tabled.
Question
Senator LAMBIE: I don't believe that is the case whatsoever. Once again, I'm asking you, 
without me going any further today, what time are you giving me those letters today, 
redacted and with the names out of them?
Gen. Campbell: Unless directed otherwise by the government, I am not releasing those 
letters—
Senator LAMBIE: When is the government going to release those letters?
Gen. Campbell: for the integrity of the process and for the privacy of the individuals.
Senator LAMBIE: The only integrity right now is your integrity, which is right up there on the 
Richter scale, I can assure you.
CHAIR: Thank you, Senator Lambie.
Senator LAMBIE: I'm asking once again—Minister, when are those letters going to arrive 
here?
CHAIR: I think the minister was just about to provide you with a response, Senator Lambie.
Senator LAMBIE: Or we're going to have a hard few weeks in the Senate, I can assure you. We 
can stop it every hour every morning.
CHAIR: Thank you, Senator Lambie. Minister.
Senator McAllister: Thanks, Chair. I will take the question on notice, Senator Lambie. You've 
heard and, I think, received written advice from General Campbell about his policy advice in 
relation to those letters and whether or not they are suitable for release. We'll take it on 
notice and consider his advice and the matters that you've raised here and come to a 
decision about what information may be provided.
Answer
Yet to be tabled.
Budget Estimates
Senator Jacqui Lambie
Question Number: 12
Date question was tabled: Yet to be tabled.
Question
Senator ROBERTS: My question was: is one of those awards you're attempting to have 
removed from soldiers the Distinguished Service Cross?
Gen. Campbell: I'm not going to speak to the specifics, for the reasons I have offered to 
Senator Lambie.
Senator ROBERTS: What was that again?
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Gen. Campbell: It is the inevitable hounding of those who have been awarded particular 
awards that I might specify by a whole variety of interest groups seeking, largely, spectacle.
Senator ROBERTS: You're required to produce to this committee any information or 
documents that are requested. There is no privacy, security, freedom of information or other 
legislation that overrides this committee's constitutional powers to gather evidence, and you 
are protected from any potential prosecution as a result of your evidence or producing 
documents to this committee. If anyone seeks to pressure you against producing documents, 
that is also contempt. If you wish to raise a public-interest immunity claim, there are proper 
processes around that, and it is then up to the Senate whether to accept that, not you or the 
minister. Please take on notice to produce the information that I requested. I want 
specifically to know whether one of those awards you are attempting to have removed from 
soldiers is the Distinguished Service Cross.
Gen. Campbell: As I said, I think that for three reasons: one, the privacy of individuals; two, 
the fact that this is a matter still under consideration and for decision by government; and, 
three, the integrity of the process in that it is best held in a fashion that ensures that there 
can be no actual or perceived influence on the process. I am declining to offer information 
that would further move to identify individuals involved in this process.
Senator ROBERTS: As I said a minute ago, if you wish to raise a public—
Senator Lambie interjecting—
CHAIR: Order!
Senator LAMBIE: He wants a number. That's all we're asking for. Stop this—
CHAIR: Senator Lambie, I think the minister was about to provide a response too.
Senator McAllister: Senator Roberts, I heard you ask that the government take this matter on 
notice, and we will do that. It's a similar response to the one I gave to Senator Lambie, which 
was that taking on notice would allow us to consider the matters raised by General Campbell 
which, in his view, militate against the release of the information. We will take it on notice 
and consider those questions.
Answer
Yet to be tabled.
Budget Estimates
Senator Jacqui Lambie
Question Number: 22
Date question was tabled: Yet to be tabled.
Question
Senator LAMBIE: CDF, this morning I asked you about the Leahy law and its application to and 
administration of Australian soldiers. I believe those questions were going to be taken on 
notice. I wanted to clarify something. You don't know anything about this law?
Gen. Campbell: I'm aware of the US law and I'm aware of its application in some of the Indo-
Pacific nations in which the United States works, but I have to take on notice the questions 
you ask with regard to whether or not the Leahy law has been an active component of—I 
think you are asking—the dismissal of soldiers? Was that the question?
Senator LAMBIE: I'm asking whether the Leahy law has had any effect on Australian soldiers 
whether soldiers were dismissed, whether that was used on them to remove them. That's 
what I'm asking.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Gen. Campbell: I will have to take that on notice.
Senator LAMBIE: So you didn't receive advice on 21 March 2021 from the US embassy that 
the IGADF Afghanistan inquiry report directly triggered the Leahy law considerations?
Gen. Campbell: Senator, because your question has come without expectation, I don't have 
any material nor have I done any background on it, so that's what I want to take notice on.
Senator LAMBIE: So you didn't receive any advice from the US embassy?
Gen. Campbell: No. What I am saying is that I need to take notice to be able to understand 
what it is that we have either from, or not, the US embassy or anyone else and what we have 
done with regard to Leahy law issues or not.
Senator LAMBIE: I have received correspondence that states that you, the CDF, received 
advice from the US embassy that the findings within the IGADF report had triggered 
consideration of the Leahy law. CDF, I will ask again: has the Australian Defence Force used 
United States law to take administrative action against Australian soldiers?
Gen. Campbell: Again, I'll have to take it on notice to make sure that I reply correctly and 
completely.
Senator LAMBIE: And that advice will be back by the morning?
Gen. Campbell: I can't guarantee that. It depends on the degree to which that information is 
both comprehensive and readily available, so I'm going to take it on notice.
Senator LAMBIE: Mr Moriarty, you've been in that seat since 4 September 2017. What can 
you tell me about the Leahy law?
Mr Moriarty: I'm aware of the general expression of those laws in the US. I'm not aware of 
the specific detail, nor am I aware that the US embassy has written to the CDF or to the 
defence organisation, and I'm certainly not aware of any impact of those laws on Australian 
soldiers. But I fully support the CDF taking it on notice so that we can give you a proper and 
comprehensive—
Senator LAMBIE: But, Mr Moriarty, you with here this morning. You didn't put your hand up. I 
asked if anyone in here knew about these laws. You didn't say a word, Mr Moriarty.
Mr Moriarty: That's because I don't know a lot about these laws. I have heard of them.
Senator LAMBIE: Why couldn't you have just said: 'Yes, I've heard of the laws. I don't know 
that.' Now we're losing trust here. Can anybody ask whether the Leahy laws were ever 
enacted against any Australian soldiers whatsoever or ever used in conjunction to push their 
law onto us?
Gen. Campbell: I'll have to take it on notice.
Senator LAMBIE: Did you or did you not receive advice from the US embassy on 21 March 
2021?
Gen. Campbell: I will take that on notice.
Answer
Yet to be tabled.
Budget Estimates
Senator Jacqui Lambie
Question Number: 50
Date question was tabled: 14 July 2023
Question
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Senator LAMBIE: These are the questions I would like answered. Did anyone else, other than 
you, receive the advice from the United States embassy in Canberra on 21 March 2021 that 
the IGADF's Afghanistan inquiry had triggered consideration of the Leahy law in the United 
States? Who else knows about this? Did the then defence minister know about this? Does the 
current defence minister know about this? Was the advice from the US embassy that the 
Leahy law was triggered against units, individuals or both? Was it not in the public interest to 
inform Australians that the United States government considered Australia unfit to receive 
assistance from the US defence force or US defence? And what assistance does the ADF 
receive from US defence that triggers consideration of the law? And does the ADF receive 
financial assistance from US defence or the US government more broadly?
Gen. Campbell: Okay.
Senator LAMBIE: I will now move on to the other questions.
Gen. Campbell: Senator, if you would like to go question by question, let's give it a go.
Senator LAMBIE: Sure.
Gen. Campbell: I received a letter from the United States defence attache here in Canberra 
indicating that, after the release of the Brereton report, that report, because it had credible 
information of allegations of what the United States would call gross violations of human 
rights, may—'may'—trigger Leahy law considerations in regard to the relationship between 
the United States armed forces and a partner unit or organisation—in this case, either Special 
Operations Command or the Special Air Service Regiment.
Senator LAMBIE: Was that directed from anybody in the US or anybody from here? I'm just a 
little confused. Where did it all start from?
Gen. Campbell: As I said, I received a letter from the defence attache of the United States 
armed forces based in Canberra to me, indicating that the release of the Brereton report and 
its findings may initiate Leahy law considerations.
Senator LAMBIE: Great. Could you table that letter to the committee, please.
Gen. Campbell: I will have to look to the 'release-ability' of that letter.
Senator LAMBIE: What about the other questions? Did the previous CDF, in the last 
government, know about this letter?
Gen. Campbell: The previous minister, do you mean?
Senator LAMBIE: Sorry—the previous minister.
Gen. Campbell: No, I don't think that this was an issue advised beyond the ADF.
Senator LAMBIE: You didn't think it was important enough to actually—
Gen. Campbell: Senator—
Senator LAMBIE: I'm just wondering—it's actually a pretty big matter.
Gen. Campbell: I will take it on notice, but I have no memory of the minister of the day being 
advised.
Senator LAMBIE: It's a pretty big matter. You don't think the defence minister of the day 
should have been advised that you'd received a letter from the attache?
Gen. Campbell: I think there's a difference between 'may' and 'does'. The defence attaché 
was indicating that it may rather than it does.
Senator LAMBIE: Well, I would still want to know, if I was minister, if that was being flown to 
me from the US, which is supposed to—
Gen. Campbell: So I will take that on notice.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Answer
Correspondence from the United States Embassy regarding the Leahy Law was addressed to 
the CDF.
Between March 2021 and April 2022, Defence regularly informed the then-Minister for 
Defence of the US notification regarding the Leahy Law and Defence’s response. The current 
Government was not briefed on this issue as the matter was closed on 17 March 2022.
It would not be appropriate to provide a copy of the letter, consistent with longstanding 
practice, for reasons including potential harm to Australia’s international relations.
Budget Estimates
Senator David Shoebridge
Question Number: 58
Date question was tabled: Yet to be tabled.
Question
Senator SHOEBRIDGE: The fact is that the ADF ceased engagement with the US Department 
of Defense— or perhaps the other way round. I will start again. The fact is the US 
Department of Defense refused to engage with Australian special forces until you took 
remediation action because of the issue raised in the Brereton report. That was what 
happened, wasn't it?
Gen. Campbell: There was a precautionary period where we looked to our arrangements.
Senator SHOEBRIDGE: For how long was it, because of the issues raised in the 
correspondence from the US embassy, that there was no interaction between Australian 
special forces and the United States military? How long did that last for?
Gen. Campbell: I want to take that on notice.
Senator SHOEBRIDGE: We know that it went from at least March 2021 until into 2022.
Gen. Campbell: I just don't have the details. I have to take it on notice. If you have the details, 
please tell me.
Senator SHOEBRIDGE: I am going to try and help. It went through at least into the first part of 
2022, didn't it?
Gen. Campbell: I don't have the details. As I told Senator Lambie earlier, I could go so far but I 
don't have enough information at this stage to be able to give you an accurate response.
Senator McAllister: To be fair to the witnesses, witnesses are able to take matters on notice.
Senator SHOEBRIDGE: But there could be few more high-profile and concerning issues that 
come across your desk than the United States embassy telling you, as the Chief of Defence 
Force, that because of allegations of gross violations of human rights by members of the 
special forces that they would not cooperate with or engage with special forces. That, surely, 
was a matter that would stick in your mind, General Campbell?
Gen. Campbell: Let's just start with alleged allegations. A lot of serious and important matters 
come across my desk. I am only going to say it once more politely: I do not know the dates; I 
will have to take it on notice.
Senator SHOEBRIDGE: What restrictions were there on the use of Australia's special forces as 
a result of the advice that came to you from the US embassy? What restrictions did that 
mean you had to place on the use of Australia's special forces?
Gen. Campbell: Again, I will have to take that on notice.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
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Phone:  
s47E(d / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Senator SHOEBRIDGE: Are Australian special forces, including the SAS, currently in a position 
to operate with US military forces?
Gen. Campbell: Yes.
Senator SHOEBRIDGE: Is it subject to any restrictions as a result of the Leahy laws?
Gen. Campbell: No.
Senator SHOEBRIDGE: Have you complied with all the requirements that have been sent to 
you by the US Embassy?
Gen. Campbell: I will have to take that on notice. Because of the way you have framed your 
question, I will have to take that on notice.
Senator SHOEBRIDGE: I'll start again. When was it that you were notified that the US 
Department of Defence would again operate in any way with the SAS? When were you told 
that the Leahy concerns had been lifted.
Gen. Campbell: I have answered your question.
Senator SHOEBRIDGE: No, you haven't.
CHAIR: Senator Shoebridge, I guess the point that the general is making, which I was about to 
also mention, is that he has provided a response. He's also made clear that he will be taking 
that particular line of questioning on notice. If there are no other questions, I will have to 
move the call on.
Senator SHOEBRIDGE: Will you take it on notice, General Campbell?
Gen. Campbell: I believe I have already taken on notice about five of the same question asked 
in different ways. I will take it on notice.
Senator SHOEBRIDGE: Don't you find it incredible that you're not able to tell this committee 
for how long Australia's special forces were in the doghouse because of allegations of gross 
violations of human rights to such an extent that our key ally wouldn't work with them? Don't 
you find it remarkable that you can't tell us? You're Chief of Defence.
Gen. Campbell: Have you finished now?
Senator SHOEBRIDGE: I'm waiting for an answer.
Gen. Campbell: Can I reply?
Senator SHOEBRIDGE: It'd be novel if you did.
CHAIR: Senator Shoebridge, please, a bit of order in this place. General?
Gen. Campbell: Senator, you've made a number of assertions in your question. I'll take it on 
notice, as I've said.
Senator SHOEBRIDGE: Will you take on notice what remediation actions were required?
Gen. Campbell: Yes, I'll take that on notice.
Answer
Yet to be tabled.
Senate 27 July 2023
Senator David Shoebridge
Question Number: 2312
Date question was tabled: Yet to be tabled.
Question
1. Why has the former SAS Major (now Colonel) who was commander of its disgraced 2 Squadron 
during the notorious ninth rotation in Afghanistan in 2009 (hereafter “the Officer”) been placed in 
charge of the Combined Joint Special Operations Task Force for Operation Talisman Sabre.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
2. What was the result of the Australian Defence Force's show cause process commenced against 
the Officer in 2021 for his conduct, not limited to, his participation in appallingly unethical 
conduct at the unauthorised Fat Lady's Arms pub set up by Australian troops at Tarin Kowt.
3. Given the United States has previously warned the Australian Defence Force that allegations of 
war crimes against Australian soldiers in Afghanistan could prevent US forces from working with 
Australia's SAS under the US Leahy Laws, was the US informed of the identity of the Officer who 
would be in command of US Special forces troops.
4. Did the US agree to the Officer being in charge of the Combined Joint Special Operations Task 
Force for Operation Talisman Sabre.
5. Was the Chief of Defence aware that the Officer was being placed in charge of the Combined 
Joint Special Operations Task Force for Operation Talisman Sabre.
6. Does the Minister think it appropriate that the Officer was placed in charge of the Combined Joint 
Special Operations Task Force for Operation Talisman Sabre. 
Answer
Yet to be tabled. 
House of Representatives
Hon Barnaby Joyce MP
Question Number: 194
Date question was tabled: 14 August 2023
Question
In respect of the publication of names of members or former members of the Special Air 
Service (SAS) charged with war crimes: 
(1) Has any consideration been given to a legislative change to prevent publication of their 
identities. 
(2) Have any representations been made by the Department of Defence, the Australian 
Defence Force (ADF) or the Department of Veterans’ Affairs (or their respective Ministers) in 
relation to any changes to legislation pertaining to the publication of identities; if so, when 
and what was the nature of those representations. 
(3) Have any views been sought from the Department of Defence, the ADF or the 
Department of Veterans’ Affairs (or their respective Ministers) in relation to changes to 
legislation pertaining to the publication of identities; if so, when and what was the nature of 
the information sought. 
(4) What mechanisms are put in place to ensure the safety of any named SAS member, and 
their families, when they are identified as having partaken in operations that may make them 
a target for reprisal actions. 
Answer
1-3. No.
4. There is not a position, nor has there ever been, to publish details of individuals with an 
active Protected Identity (PID) status. In the event an individual’s PID status was 
compromised, this would be handled in accordance with Defence policies and on the 
circumstances of that matter.
If Defence PID status is not applicable, but another national security requirement to 
protect an individual’s information is identified, Defence will make an application to the 
court to protect such information.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Irrespective of a person’s identity status, protected or not, Defence complies with its 
obligations in accordance with the Privacy Act 1988.
Senate
Senator David Shoebridge
Question Number: 2179
Date question was tabled: Yet to tabled
Question
Regarding the letter to the Chief of the Defence Force (CDF) from the Defence Attaché of the 
United States Armed Forces based in Canberra, indicating that the release of the Brereton 
report and its findings may initiate Leahy law considerations:
1. Following the receipt of the letter, what assistance was offered by the US Government to 
the Australian Government to bring those responsible to justice, as required under the Leahy 
law.
2. On what dates did the CDF and/or any other representative of the ADF meet with the 
Minister for Defence following receipt of the letter regarding the Leahy Law, were minutes of 
those meetings taken; if so, can they be made available to Members of Parliament.
3. Was the then Prime Minister notified that the US had raised Leahy Law considerations; if 
yes, when, and if no, why not.
4. Was the then Opposition Leader notified that the US had raised Leahy Law considerations; 
if yes, when, and if no, why not.
5. Was the then opposition Defence Spokesperson notified that the US had raised Leahy Law 
considerations; if yes, when, and if no, why not.
6. Has the CDF or any other representative of the ADF conducted any other meetings with 
anyone inside or outside government regarding the Leahy Law and its implications for 
Australia's military operations; if yes, with whom and on which dates; were minutes of those 
meetings taken; if so, can they be made available to Members of Parliament.
7. Were any members of the then Opposition briefed on the letter and its implications, 
including the restrictions placed on cooperation between the US and Australian militaries.
8. Were any members of the then Opposition briefed on the Leahy Law at any time following 
the release of the Brereton report.
9. Was the Parliamentary Joint Committee on Intelligence and Security briefed on the letter, 
including restrictions placed on cooperation between the US and Australian militaries.
10. Was the Parliamentary Joint Committee on Intelligence and Security briefed on the Leahy 
Law at any time following the release of the Brereton report.
11. What actions were taken by the Australian Government, including by the Minister for 
Defence and the ADF, to satisfy the United States that it was addressing the concerns that 
triggered the Leahy Law considerations, including bringing to justice those responsible for 
gross violations of human rights.
12. Between which dates was cooperation between the US and Australian militaries 
restricted as a result of Leahy Law considerations.
13. Was the restructure of the SAS announced in 2021 that included placing a colonel in 
charge of the SAS a response to the Leahy concerns raised by the US.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
Answer
Yet to be tabled.
Senate
Senator David Shoebridge
Question Number: 1898
Date question was tabled: 20 July 2023
Question
With reference to the Afghanistan Inquiry response:
1. The Afghanistan Inquiry report made recommendations that compensation be paid swiftly 
to victims and their families in Afghanistan, has the Department progressed a plan for 
delivering compensation.
2. What is the implementation timeline for that plan.
3. Will the plan allow for compensation to be paid in other cases that may come to light, 
beyond those cases for which compensation was recommended by the IGADF report.
4. Will the plan allow for other forms of reparation beyond compensation, as called for by 
civil society groups from Afghanistan and Australia.
5. In late 2020, following the release of the Afghanistan Inquiry report, Army initiated 
administrative action for termination of service against 17 serving individuals where alleged 
failure to meet ADF expectations and values was identified: has the Directory of Military 
Prosecutions taken any action in relation to those 17 individuals; if not, why not.
Answer
1. Defence continues to actively examine options to give effect to the recommendations 
regarding compensation.
2. Defence, via the Afghanistan Inquiry Reform Program, originally aimed to finalise an 
approach to the compensation recommendations by December 2021. However due to the 
geopolitical situation in Afghanistan, the implementation timeframe for the plan has not 
been able to be met. Completion of this recommendation is currently anticipated by 
November 2023.
3. Refer to question one.
4. Refer to question one.
5. No. The Office of the Special Investigator in the Attorney-General’s Portfolio is addressing 
the potential criminal matters raised in the Afghanistan Inquiry report, independently of 
Defence. The decisions made by Army in relation to administrative action are independent of 
any consideration of criminal liability.
2022-23 Supplementary Budget Estimates
Senator Jacqui Lambie
Question Number: 43
Date question was tabled: 31 March 2023
Question
Chief of Defence Force’s Distinguished Service Cross.
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
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Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
1. Would the Department please provide a copy of the nomination (including the citation) for 
the Chief of Defence Forces’ (Angus J Campbell) Distinguished Service Cross. 
2. Would the Department please provide a copy of the decision (including the agreed citation) 
to award the Chief of Defence Force (Angus J Campbell) his Distinguished Service Cross. 
Chief of Defence Force’s letter to service personnel who received various awards in 
Afghanistan. 
1. Would the Department please provide a copy of all letters sent by the Chief of Defence Force 
(General Angus J Campbell), on or around 2nd November 2022, to recipients of awards for 
their command in Afghanistan. a. Specifically, these are letters that ask the recipient to 
consider retention or cancellation of their award in light of the Brereton Report. 
2. Would the Department please also provide a copy of the two annexes provided with each 
letter. a. Specifically, the ‘Acknowledgement’, and the ‘Welfare’ attachments.
Answer
Chief of the Defence Force’s Distinguished Service Cross 
1. Nominations for military honours are handled in confidence. 
2. The agreed citation is publically available at 
https://webarchive.nla.gov.au/awa/20130404134324/http://www.gg.gov.au/queens-
birthday-2012-honours-lists 
3.
Chief of the Defence Force’s letter to service personnel who received various awards in 
Afghanistan 
1a-2a. As the consideration of command accountability is ongoing, and to protect the 
privacy and support the welfare of our people, Defence will not provide this 
information. 
Senate
Senator David Shoebridge
Question Number: 1140
Date question was tabled: 15 February 2023
Question
1. Separate from the process being undertaken by the Office of the Special Investigator (OSI), 
what measures have been taken in relation to the 25 current or former Australian special 
forces personnel who, according to the Brereton Report, were implicated in the alleged 
unlawful killing of 39 individuals and the cruel treatment of two others:
a. has any administrative or other action been taken against these 25 individuals, or any 
other individuals in relation to allegations of war crimes; and
b. have any citations, medals or awards been revoked in regards all or any of these 25 
individuals; if so, please provide details.
2. Separate from the process being undertaken by the OSI, what other measures have been 
taken to address the recommendations in the Brereton Report.
3. Does the Government still maintain that responsibility and accountability for the alleged 
war crimes does not extend to higher headquarters, including in particular Headquarters 
Joint Task Force 633 and Headquarters Joint Operations Command.
4. If the answer to 3 is yes, has there been any accountability or other measures taken in 
relation to senior staff at Headquarters Joint Task Force 633 or Headquarters Joint 
Operations Command; if so what action.
5. What cultural reforms have been made to the ADF to implement the recommendations of 
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
the Brereton Report.
Answer
1a. All allegations of unlawful killings have been referred to the Office of the Special 
Investigator (OSI) through the provision of the Afghanistan Inquiry report to the OSI Special 
Counsel.
Criminal investigations and any potential prosecutions are being conducted independently of 
Defence.
In late 2020, following the release of the Afghanistan Inquiry report, Army initiated 
administrative action, inclusive of a notice to show cause, for termination of service against 
17 serving individuals where alleged failure to meet ADF expectations and values was 
identified. 
The decision-maker determined each notice on a case-by-case basis and all members were 
afforded due process. Army informed each member (or their legal representative) of the 
outcome of their notice. 
By 14 February 2022, administrative action for all 17 members was completed. 
The decisions made in relation to the administrative action were independent of any 
consideration of criminal liability. Professional misconduct does not pre-suppose criminal 
misconduct.
b. No citations, medals or awards have been revoked in regards to any of these 25 
individuals. However, Defence notes that a process is currently underway to review 
command accountability and associated awards. 
2. Since the release of the Afghanistan Inquiry report in November 2020, Defence has 
undertaken a substantial body of work to address the Inspector-General’s findings and 
recommendations and embed genuine, enduring and sustainable reform across the 
enterprise.
On 30 July 2021 Defence released the Afghanistan Inquiry Reform Plan (the Reform Plan) 
setting out the Defence strategy for responding to the Inquiry and establishing the 
Afghanistan Inquiry Reform Program (the Reform Program) to coordinate and drive this work.
Defence has implemented the required action to close 103 of the 143 Inquiry 
recommendations. The Minister for Defence has directed the Chief of the Defence Force to 
come up with a plan to close off the remaining recommendations.
Further information on Defence’s response, including a list of work completed and in 
progress, is available at: https://www.defence.gov.au/about/reviews-inquiries/afghanistan-
inquiry/defence-response 
3. ADF commanders at all levels have a responsibility for ensuring forces under their 
command and control comply with the Law of Armed Conflict and Rules of Engagement.
Command accountability can exist regardless of individual criminal liability. Command 
accountability holds commanders accountable for the actions of their subordinates.
The Afghanistan Inquiry found commanders bear moral responsibility and accountability for 
what happens under their command, and recommended the review of honours and awards 
to commanders.
The Chief of the Defence Force (CDF) is considering the command accountability of current 
and former serving ADF members who held command positions, at a range of ranks, during 
the periods for which the Inspector-General found multiple incidents of alleged unlawful 
conduct. Persons who held command positions, irrespective of rank, are being considered in 
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000740
Last updated: 7 September 2023                                                                                              IGADF Afghanistan Inquiry
Key witnesses: General Angus Campbell; Matt Yannopoulos; Adrian D’Amico; Rear Admiral Brett Wolski.
a consistent manner. These considerations apply to a small group only and any impacted 
personnel have a right of reply.
As the consideration of command accountability is ongoing, and to protect the privacy and 
support the welfare of our people, Defence is not in a position to provide further information 
about specifics at this time.
4. Refer to response to question three. 
5. The Reform Program has two objectives: to address the past and to prevent recurrence. 
There is a considerable amount of cultural reform work underway, details of which are 
available at: https://www.defence.gov.au/about/reviews-inquiries/afghanistan-
inquiry/defence-response. 
Prepared By:
Cleared By: 
Name: Rear Admiral Brett Wolski
Name: Vice Admiral David Johnston
Position: Head Afghanistan Inquiry Response Task Force
Position: Vice Chief of the Defence Force
Phone:  
s47E(d / 
s22
Phone:  
s47E(d / 
s22
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; Air Vice-Marshal Barbara Courtney.
Royal Commission into Defence and Veteran Suicide
Handling Note: 

Deputy Secretary, Defence People Group, Justine Greig, joint lead on matters 
regarding mental health and suicide in the ADF. 

Surgeon General of the ADF, Rear Admiral Sarah Sharkey, joint lead 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 lead 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 to strengthen our approach to supporting the wellbeing 
of ADF personnel.

Defence thanks 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).

Defence, the Department of Veterans’ Affairs and the Attorney-General’s 
Department continue to support the Royal Commission to further understand the 
complex issue of suicide and to reduce the risk to serving and ex-serving members of 
the ADF.
Talking Points
Defence’s engagement with the Royal Commission 
If pressed: How is Defence supporting the work of the Royal Commission?

Defence has a dedicated taskforce with experienced staff in legal, information 
management, policy, governance and coordination, communications, wellbeing, 
planning, and group and service liaison roles.  

The Taskforce delivers two key functions: 

responding to high volume and complex requests from the Royal Commission; 
and
Prepared By:
Cleared By: 
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
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Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; 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 
personnel, APS, contractors, consultants and families of serving members) on how to 
engage with the Royal Commission and how to access wellbeing support.
If pressed: Have there been delays in Defence providing information to the Royal Commission?

Defence engages regularly with the Royal Commission to provide information and 
documents in a timely manner, in accordance with the Royal Commission’s priorities. 

Defence has provided over 3 million pages of written information, facilitated over 30 
base visits and provided over 110 official Defence witnesses to assist the Royal 
Commission in their examination of this complex topic.
If pressed: Will Defence members be penalised for engaging with the Royal Commission?

Defence acknowledged the Royal Commission’s concerns in relation to serving ADF 
members being exposed to legal consequences if they disclose sensitive information 
during their interactions with the Royal Commission. In response, Defence and the 
Royal Commission developed a policy (referred to as the ‘the arrangement’) that 
enables current and former serving members and APS to be considered ‘on duty’ when 
engaging with the Royal Commission. 

Being considered ‘on duty’ when engaging with the Royal Commission means the ADF 
member is undertaking normal business when they speak with the Royal Commission 
and, in particular, provides ADF members legal protections under the Defence Act 1903 
to discuss sensitive information they might not otherwise be permitted to discuss with 
non-Defence personnel. This policy has been co-signed by the Chief of the Defence 
Force, the Secretaries of Defence and the Department of Veterans’ Affairs and the 
Royal Commissioners.

The Chief of the Defence Force has publicly clarified that ADF members will not be 
penalised for engaging with the Royal Commission. Service Chiefs and Senior Enlisted 
personnel conveyed this commitment in a video asking ADF members to ‘tell your 
story’.

In addition, the Royal Commissions Amendment (Enhancing Engagement) Bill 2023 
came into effect on 12 April 2023. The Bill amends the Royal Commissions Act 1902 to 
ensure the confidentiality of certain information given by individuals to the Royal 
Commission about their experiences of suicide, suicidality, poor mental health or 
related systemic issues. 

Commencement of the Bill implemented Recommendation 6(1) of the Interim Report 
of the Royal Commission.
Prepared By:
Cleared By: 
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
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/  
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OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; Air Vice-Marshal Barbara Courtney.
If pressed: Are there any matters that ADF Members cannot disclose to the Royal 
Commission?

Notwithstanding ‘the arrangement’, there remain some matters to which non-
disclosure conditions may apply, for example information regarding on-going 
investigations or inquires. ADF members who are party to these matters are not 
discouraged from engaging with the Royal Commission. Rather, they are encouraged to 
consult with their legal counsel when they engage with the Royal Commission to ensure 
they comply with these conditions.
If pressed: What support services are being offered to Defence personnel?

The health and wellbeing of all Defence personnel is a priority.

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, and this support is available 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 is Defence responding to recommendations 9-13 of the Royal Commission’s 
Interim Report?

Defence welcomed the Interim Report of the Royal Commission and, with the 
Department of Veterans’ Affairs, has implemented the recommendations we have joint 
responsibility for.

Recommendations 9 through to 13 cover a range of initiatives to help improve 
access to information for current and former serving ADF members and their 
families.

The Government’s response to Recommendations 9 through 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 has now been established in each department. These 
are dedicated teams who are a single point of contact and source of advice for 
applicants requesting information.

Guidelines on information access mechanisms have also been published by both 
departments to make it easier to understand how to seek records and to explain 
why records may contain redactions. 

Both departments’ websites have been revised and simplified to make content 
easier to find, including the supporting education material on information access. 
Prepared By:
Cleared By: 
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/  
s22
Page 3
3 of 7
7
OFFICIAL

---

ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; Air Vice-Marshal Barbara Courtney.

These improvements ensure applicants have a better understanding of the 
information access process and the support available to them. 

Both departments are embedding trauma-informed practice principles and 
training which will remain a key focus of the Government’s ongoing response to 
the Interim Report.
Background 
Financial Implications for Defence

The Defence Taskforce to support the functions of the Royal Commission is funded 
from within the existing resources of Defence.
ADF Suicide Rates

The Defence Suicide Database, which records the deaths of current serving members, 
has recorded 166 full-time serving ADF members who are suspected or confirmed to 
have died by suicide, including nine women, between 1 January 2000 and 24 July 2023.

There have been two 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 2019, 
shows that in comparison to the Australian population, the age-adjusted rate of suicide 
from 1997–2019 was: 

49 per cent lower for full-time serving males; 

46 per cent lower for Reserve males; 

27 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.
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 20 November 2023.

The hearings have focussed on a range of topics including accountability, culture, 
stigma, deployments, welfare, support to families, medical care, recruitment and 
discharge.
Prepared By:
Cleared By: 
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/  
s22
Page 4
4 of 7
7
OFFICIAL

---

ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; Air Vice-Marshal Barbara Courtney.

The Royal Commission published an interim report on 11 August 2022, which the 
Government responded to on 26 September 2022. The final report is due on 
17 June 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. 

The Royal Commission determines who they will summon to provide evidence and 
determines the witness schedules.
Supporting Information
Questions on Notice 

Parliamentary QoN 623, Senator Michaelia Cash (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 under FOI 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

On 27 July 2023 the Minister for Veterans’ Affairs and Defence Personnel responded to 
a question regarding Commissioner Kaldas’ remarks criticising Defence for reforms 
taking too long.
Relevant Media Reporting 

On 13 September 2023, the Chair of the Royal Commission into Defence and Veteran 
Suicide, Nick Kaldas, addressed the National Press Club with his remarks receiving wide 
coverage, including in an article by Ben Packham for The Australian titled, Defence 
‘stymieing’ vets suicide inquiry, says Nick Kaldas. 

On 16 August 2023, The Guardian published an article titled, Albanese government 
refuses further one-year extension to royal commission into veteran suicide. Journalist 
Paul Karp referenced delays by Defence and an extension request by the 
Commissioners.
 On 27 July 2023, in a piece widely syndicated in News Corp mastheads, The Mercury 
published an article titled, ’Too much talk’ is failing veterans. Journalist Charles Miranda 
referenced remarks from Commissioner Kaldas criticising the pace and substance of 
Defence reforms aimed at improving personnel health and wellbeing.
Prepared By:
Cleared By: 
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/  
s22
Page 5
5 of 7
7
OFFICIAL

---

ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; Air Vice-Marshal Barbara Courtney.
Division: 
Royal Commission into Defence and Veteran Suicide Taskforce
PDR No: 
SB23-000741
Prepared by:
Cleared by Division Head: 
Air Vice-Marshal Barbara Courtney
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: 22 August 2023
Date: 22 August 2023
Consultation: N/A
Cleared by CFO / DPG / DSR: N/A
Date: N/A
Cleared by Deputy Secretary:
Date: 6 September 2023 
Justine Greig
Deputy Secretary
Defence People Group
Questions on notice referred to within the brief:
Parliamentary Question
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.
Prepared By:
Cleared By: 
Name: Air Vice-Marshal Barbara Courtney
Name: Justine Greig
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/  
s22
Page 6
6 of 7
7
OFFICIAL

---

ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000741
Last updated: 31 August 2023
          Royal Commission into Defence and Veteran Suicide
Key witnesses: Justine Greig; Rear Admiral Sarah Sharkey; Air Vice-Marshal Barbara Courtney.
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
Position: Head of Royal Commission into Defence and Veteran Suicide Taskforce
Position: Deputy Secretary
Division: Royal Commission into Defence and Veteran Suicide Taskforce
Group/Service: Defence People Group
Phone:  
s47E(d)
/ 
s22
Phone:  
s47E(d)
/  
s22
Page 7
7 of 7
7
OFFICIAL

---

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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000745
Last updated: 4 September 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Foreign Manufactured Devices
Handling Note: 

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Key Messages
Supply Chain Security Audit

On 14 April 2023, the Deputy Prime Minister directed Defence to undertake a security 
audit of Defence supply chains to ensure Defence is not using devices, products, or 
contractors of concern; and that current procurement policies and practices are fit for 
purpose. This audit includes hardware and software used in supply chains.

Defence is engaging and planning for the conduct of this audit, recognising the 
extensive, diverse and complex supply chains that support Defence capability. This 
engagement will include domestic and international partners.
CCTV Audit

On 9 February 2023, the Deputy Prime Minister directed Defence to undertake an 
assessment and remove CCTV devices of concern. 

On 30 June 2023, Defence completed the removal of all CCTV devices of concern from 
the Defence estate.
DJI Drones

The use of DJI products and their inherent cyber vulnerabilities has been known to 
Defence since early 2017. A cyber-risk assessment was conducted and the continued 
use of DJI products was only permitted once risk mitigation was applied.

Drones and Aeroscope Units manufactured by DJI were utilised by Defence.

Defence ceased operation of all DJI drones in line with the Secretary and Chief of 
Defence Force direction of 5 May 2023.
Talking Points
Supply Chain Security Audit

Defence supply chains are broad, diverse and complex. The identification or 
designation of manufacturers or technologies of concern engages a range of 
Commonwealth Policy equities across the Attorney-Generals’ Department, Department 
of Foreign Affairs and Trade, Department of Home Affairs, Department of Finance and 
the National Intelligence Community.
Prepared By:
Cleared By: 
Name: Simon Buckley
Name: Mardi Jarvis
Position: Assistant Secretary Security Policy and Services
Position: Acting First Assistant Secretary Defence Security
Division: Defence Security
Group/Service: Security and Estate
Phone:  
s47E(d)
s22
Phone: / 
s47E(d)
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000745
Last updated: 4 September 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West

The Attorney-General’s Department has recently established an inter-departmental 
Technical Advisory Forum under the Government Security Committee to develop 
whole-of-government guidance on technologies of concern. Defence is a member of 
this forum and will work with the Attorney-General’s Department and other agencies 
on the development of advice.

Defence is engaging and planning for the conduct of this audit, recognising the 
extensive, diverse and complex supply chains that support Defence capability.

The audit will include benchmarking Australian policy against the approaches of 
Five-Eyes partners.
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 that were not recorded 
in the Garrison Estate Management System database. Devices by brand and type are:
Devices identified in the physical audit
Brand
Cameras
Other devices Total
Dahua
167
25
192
HIKVISION
162
16
178
Honeywell (rebranded Dahua devices)
65
-
65
Total
394
41
435

None of the identified devices 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. 

On 22 September 2021, the Australian Cyber Security Centre, within Australian Signals 
Directorate, provided Government advice on HIKVISION devices. This advice is provided 
on their website.

No Government advice has been provided on Dahua products.
If pressed: Why isn’t it a requirement for Defence to register all CCTV devices on its estate?

Defence requires all CCTV components to be registered on its Garrison Estate 
Management System. The recent audit has highlighted some inaccurate and 
incomplete data. There are a number of reasons for this:

A number of sites have been added to the Defence Estate since the review was 
undertaken;
Prepared By:
Cleared By: 
Name: Simon Buckley
Name: Mardi Jarvis
Position: Assistant Secretary Security Policy and Services
Position: Acting First Assistant Secretary Defence Security
Division: Defence Security
Group/Service: Security and Estate
Phone:  
s47E(d)
Phone: / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000745
Last updated: 4 September 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West

Installation of CCTV devices has occurred outside Estate management processes; 
and

Some premises were not included in data holdings, e.g. leased buildings, housing, 
commercial premises on bases (i.e. banks, cafes and childcare centres).

Defence has reviewed its processes to ensure all future CCTV devices will be updated 
into the Garrison Estate Management System.
DJI Drones

The ADF uses a variety of commercial off-the-shelf drone products, including some 
manufactured by DJI, as training tools for piloting Multi-Rotor Uncrewed Aerial Systems 
and the collection of public affairs imagery.

The ADF has operated several hundred DJI Phantom Multi-Rotor Uncrewed Aerial 
Systems to expose soldiers, sailors, aviators and public servants to Uncrewed Aerial 
Systems basic operations and increase their Uncrewed Aerial Systems understanding.

These systems improve Uncrewed Aerial Systems situational awareness and knowledge 
of:

basic drone flight;

payload considerations; and

Defence and civil Uncrewed Aerial Systems regulations.

On 9 August 2017, Defence suspended the use of DJI products until a formal 
assessment into the cyber risk presented by these systems could be conducted. This 
suspension was lifted after additional protocols and safeguards were enacted, including 
not connecting the products to the internet and restricting use.

Defence ceased operation of all DJI Drones per the Secretary and Chief of Defence 
Force direction of 5 May 2023.
If pressed: Are DJI drones built to withstand the rigours of the military use?

DJI drones are built for the consumer electronics market. They do not meet reliability 
and durability standards required for military use.
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: Mardi Jarvis
Position: Assistant Secretary Security Policy and Services
Position: Acting First Assistant Secretary Defence Security
Division: Defence Security
Group/Service: Security and Estate
Phone:  
s47E(d)
Phone: / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000745
Last updated: 4 September 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Background

The Attorney-General’s Department has established an inter-departmental Technical 
Advisory Forum, under the Government Security Committee, to develop whole-of-
government guidance on technologies of concern. Defence is a member of this forum.
Supply Chain Security Audit

On 14 April 2023, Defence was tasked by the Deputy Prime Minister to undertake an 
audit to identify devices or products that might be linked to any manufacturers of 
concern. Defence is currently developing advice on the issues and a Terms of Reference 
that will consider the policy and how it operates, including in security approaches of 
Five-Eyes partners; risk mitigation; procurement policy, costs and timeframes.
CCTV

Defence commenced the removal of HIKVISION security cameras in 2018.

On 26 November 2022, Defence analysed its Garrison Estate Management System data 
to identify any devices remaining from HIKVISION and Dahua. The 41 devices from 
these two manufacturers were identified and removed.

The physical audit identified 2,883 devices not registered in the Garrison Estate 
Management System. There are a number of reasons for this:

historically, Groups and Services managed facilities independently;

a number of sites have been added to the Defence Estate since the review was 
undertaken; and

installation of CCTV devices has occurred outside Estate management processes.

The audit produced a complete digital record of all CCTV devices.

A Security Risk Assessment was conducted on devices of concern to determine if they 
could be removed immediately, or if the CCTV system was required to remain in place 
for physical security or safety reasons until replaced. This audit was supported by 
Defence Security and the Chief Information Officer Group.

Defence is issuing an instruction for the replacement CCTV procurements and 
requirement to update the Garrison Estate Management System as a mandatory 
process. A subsequent security related instruction will be released pending whole-of-
government direction on technologies of security concern.

On 30 June 2023, Defence completed the removal of all CCTV devices produced by 
manufacturers of concern from the Defence Estate. 

The cost to complete the audit and to decommission and or remove devices was 
approximately $432,000. 

A procurement activity is currently underway to replace the remaining devices. The 
expected cost is approximately $920,000.
Prepared By:
Cleared By: 
Name: Simon Buckley
Name: Mardi Jarvis
Position: Assistant Secretary Security Policy and Services
Position: Acting First Assistant Secretary Defence Security
Division: Defence Security
Group/Service: Security and Estate
Phone:  
s47E(d)
Phone: / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000745
Last updated: 4 September 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West
Supporting Information
Questions on Notice 
Budget Estimates: 31 May 2023

QoN 33, Estate device removal, Senator James Paterson (Victoria) asked about a 
whole of Government policy for these devices to be removed.
Senate: 30 March 2023

QoN 1743, Technology manufactured or sold by DJI, Senator James Paterson 
(Victoria) asked whether or not the Department uses any technology manufactured 
or sold by DJI.
Senate: 27 February 2023

QoN 1466, Hikvision and Dahua Devices, Senator James Paterson (Victoria) asked to 
be provided with the number of HIKVISION and Dahua devices in use by Defence.
Senate: 29 November 2022

QoN 1089, Hikvision and/or Dahua manufactured devices, Senator James Paterson 
(Victoria) asked to be provided with the number of HIKVISION and Dahua devices in 
use by Defence.
Freedom of Information (FOI) Requests

No requests in addition to the finalised February and May 2023 Senate Estimates 
briefing packs which were released on 5 June and 7 August 2023 respectively.  
Recent Ministerial Comments

No recent comments.
Relevant Media Reporting 
Supply Chain audit media

On 17 April 2023, The Australian published an article, 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.
CCTV Media

On 15 February 2023, The Canberra Times published an in-depth article, 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.
DJI Drones Media
Prepared By:
Cleared By: 
Name: Simon Buckley
Name: Mardi Jarvis
Position: Assistant Secretary Security Policy and Services
Position: Acting First Assistant Secretary Defence Security
Division: Defence Security
Group/Service: Security and Estate
Phone:  
s47E(d)
Phone: / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL
Supplementary Budget Estimates October 2023
PDR No: SB23-000745
Last updated: 4 September 2023
Foreign Manufactured Devices
Key witnesses: Celia Perkins; Peter West

On 5 July 2023, ABC News published the article 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.
Division:
Defence Security Division
PDR No: 
SB23-000745
Prepared by:
Cleared by Division Head: (Band 2/2* level)
Simon Buckley
Mardi Jarvis
Assistant Secretary
Acting First Assistant Secretary
Security Policy and Services
Defence Security
Mob:  
s22
Ph: 
s47E(d)
Mob:  
s22
Ph: 
s47E(d)
Date: 28 August 2023
Date: 29 August 2023  
Consultation:  N/A
Cleared by Deputy Secretary:
Date: 4 September 2023  
Monique Hamilton
Acting Deputy Secretary
Security and Estate
Prepared By:
Cleared By: 
Name: Simon Buckley
Name: Mardi Jarvis
Position: Assistant Secretary Security Policy and Services
Position: Acting First Assistant Secretary Defence Security
Division: Defence Security
Group/Service: Security and Estate
Phone:  
s47E(d)
Phone: / 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 
 
 Attempts to Recruit Former ADF Pilots 
 
Handling Note:  

Deputy Secretary, Security and Estate Group, Celia Perkins, to lead on attemps to 
recruit former ADF pilots. 

First Assistant Secretary, Defence Security, Peter West, to support on attempts to 
recruit former ADF pilots. 
 
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, 
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 this threat seriously and has layered security policies and procedures in 
place to protect our personnel, information, capabilities and assets from Foreign 
Intelligence Services. 

Last year, 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 requirement 
for foreign work authorisations.  
 
 
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
s47E(d)
 
Phone:  
/  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 

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 controlled technologies and military tactics, techniques and 
procedures. 
If pressed: Who will the Defence Amendment (Safeguarding Australia’s Military Secrets) Bill 
impact? 
˜
If passed, the Bill will apply to former ADF members, former APS members of the 
Department of Defence and the Australian Submarine Agency, and members of the 
ADF Reserves who render continuous full-time service.  
˜
The Bill will also impact any Australians and permanent residents providing training on 
certain controlled items, or on military tactics, techniques, or procedures. 
If pressed: Will veterans still be able to work overseas? 
˜
The Bill is not intended to prevent veterans from working overseas and they will 
continue to be supported when seeking post-ADF job opportunities in Australia and 
overseas. 
If pressed: What will the application process be? 
˜
Details of the application process for a foreign work authorisation are yet to be 
finalised. 
˜
The complexity of each application will depend on an individual’s circumstances and 
the work they are seeking to undertake.  
If pressed: Does the Defence Amendment (Safeguarding Australia’s Military Secrets) Bill impact 
contractors and consultants? 
˜
Under the Bill, contractors and consultants are not considered ‘Defence staff 
members’. 
˜
The Bill regulates training that all Australian citizens and permanent residents may 
provide without a foreign work authorisation, and its scope applies to any Australian 
providing training to a foreign government or foreign military. 
˜
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: Has Defence consulted during the development of the Defence Amendment 
(Safeguarding Australia’s Military Secrets) Bill? 

The Bill was developed in consultation with other Commonwealth departments. 

Defence also held a number of briefings with key external stakeholders including 
veteran groups, unions and industry groups: 

Veterans: Ex Service Organisation Round Table (ESORT) and Younger Veterans – 
Contemporary Needs Forum (YVF) were consulted on 8 September 2023; and 
Commando Welfare Trust was consulted on 13 September 2023. 
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
s47E(d)
 
Phone:  
/  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 

Unions: Community and Public Sector Union (CPSU), Australian Manufacturing 
Workers’ Union (AMWU), and Professionals Australia were consulted on 8 
September 2023. 

Industry: Australian Industry and Defence Network (AIDN) and Australian Industry 
Group (AI Group) were consulted on 11 September 2023. 

Other: Australian Defence Association was consulted on 11 September 2023. 

On 14 September 2023, the Bill was referred to the Parliamentary Joint Committee on 
Intelligence and Security for inquiry and report. 

The Parliamentary Joint Committee on Intelligence and Security are accepting public 
submissions into the inquiry until 16 November 2023. 
If pressed: What did the Defence inquiry find? 

The inquiry report is classified and Defence cannot comment in detail on the 
recommendations, but In addition to amending the Defence Act 1903, the inquiry made 
eight other recommendations related to: 

strengthening internal Defence training and employment security policies; 

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 inquiry recommendations are now 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: Security checks prior to and during employment 

The personnel security clearance vetting process evaluates risks related to ‘external 
loyalties, influences and associations’ for all Defence personnel. 

As part of the security vetting process, Defence personnel acknowledge applicable 
Commonwealth laws relating to official secrecy. 

Defence personnel and security clearance holders have an obligation to report any 
approaches or contacts with a foreign national that seem suspicious, unusual or 
persistent in any way, or that become ongoing. 
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
s47E(d)
 
Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 

Outgoing personnel are reminded of their continuing obligations under the 
Crimes Act 1914 and other relevant legislation, prior to cessation of employment. 

Defence service providers or contractors that have access to classified information 
must hold an appropriate security clearance, which requires acknowledgment of the 
applicable laws of the Commonwealth, including official secrecy. 
Background  
Security Vetting Checks 

The vetting assessment regarding ‘external loyalties, influences and associations’ 
examines applicants connections or associations with: 

foreign entities; or 

individuals or groups of a national security concern whose activities are contrary 
to Australia’s national interests.  
Timeline 
14 September 2023  The Deputy Prime Minister introduced the Defence Amendment 
(Safeguarding Australia’s Military Secrets) Bill to Parliament. 
11 May 2023 
Defence provided the Deputy Prime Minister with an interim update 
on the implementation of the inquiry. 
7 February 2023 
The Prime Minister wrote to the Deputy Prime Minister agreeing to 
legislative reform. 
14 December 2022  Defence provided the inquiry report to the Office of the Deputy 
Prime Minister. 
21 October 2022 
Defence provided classified advice to the Office of the Deputy Prime 
Minister on foreign actors targeting former ADF personnel 
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. 
 
 
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
s47E(d)
 
Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 
Supporting Information 
Questions on Notice  
Senate : 11 April 2023 
˜
In QoN 1897, Senator David Shoebridge (Greens, New South Wales) asked for 
information regarding personnel training other countries.   
2022-23 October Budget Estimates: 9 November 2022 
˜
In QoN 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 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. 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. 
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. 
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.  
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 

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, Ellen Whinnett reported for The Australian 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 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. 
˜
On 12 June 2023, The New Daily reported alleged human rights breaches against  
Mr Duggan.  
˜
On 29 May 2023, the Australian Broadcasting Corporation’s 7.30 program reported 
on allegations from Mr Duggan’s wife that Mr Duggan is caught in a ‘political power 
play’.  
˜
On 1 May 2023, The Australian reported on allegations of misconduct made against 
the Australian Security Intelligence Organisation in relation to Mr Duggan’s case, and 
the extradition proceedings against him.  
 
Division: 
Security Division 
PDR No:  
SB22-000746 
Prepared by: 
Cleared by Division Head: (Band 2/2* level) 
Simon Buckley 
Peter West  
Assistant Secretary 
First Assistant Secretary 
Security Policy and Services 
Defence Security 
Mob: s22
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Date: 23 August 2023  
Date:25 September 2023   
 
Consultation: N/A 
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 19 October 2023   
Celia Perkins 
Deputy Secretary 
Security and Estate  
 
 
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
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Phone:  
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 
Questions on notice referred to within the brief: 
Senate Written Question 
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. 
 
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). 
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000746  
Last updated: 19 October 2023 
 
 
 
   Attempts to Recruit Former ADF Pilots 
Key witness/es: Celia Perkins; Peter West   
 
6. See answer to question 3 
 
2022–23 October Budget Estimates 
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. 
 
Answer 
Defence first became aware of this issue as a result of a security report submitted on 29 June 
2021.  
Prepared By: 
Cleared By:  
 
Name: Simon Buckley 
Name: Celia Perkins 
Position: Assistant Secretary, Security Policy and Services 
Position: Deputy Secretary 
Division: Defence Security 
Group/Service: Security and Estate 
Phone:  
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
myClearance Remediation 
Handling Note: 
˜
Celia Perkins, Deputy Secretary Security and Estate, to lead on matters relating to 
vetting. 
˜
Peter West, First Assistant Secretary Defence Security, to support on matters relating 
to vetting. 
 
Key Messages 
˜
The Australian Government Security Vetting Agency is the whole-of-government 
security clearance provider, conducting security vetting on behalf of more than 1,000 
Commonwealth, State and Territory Government agencies and industry. 
˜
myClearance is a digital vetting capability, launched on 28 November 2022, to support 
a secure, automated and streamlined vetting process to meet increasing security 
clearance demand from across government, Defence and defence industry. 
˜
During implementation, some technical issues emerged which caused interruptions 
and delays to the vetting process.  
˜
Defence established a dedicated taskforce with significant resources to resolve these 
issues as quickly as possible. The major technical issues have been resolved and the 
responsibility for completing remaining remediation work has transitioned to the 
Australian Government Security Vetting Agency. 
˜
Work continues to focus on the Australian Government Security Vetting Agency 
returning to benchmark performance as soon as possible, ensuring the myClearance 
system and the Australian Government Security Vetting Agency are optimised to meet 
current and future vetting demand. 
˜
On 25 August 2023, the Assistant Minister for Defence and senior Defence security 
personnel met with key Defence industry representatives to discuss the challenges 
Defence industry faced during the myClearance rollout, to update Defence industry on 
remediation progress and seek Defence industry’s ideas for vetting process 
improvements.  
Talking Points 

During myClearance implementation, technical issues emerged which caused 
interruptions and delays to vetting processes. 

To date, the platform has released six major stabilisation updates and over 27 minor 
system hotfixes. 

Major issues causing interruptions and delays in the vetting process are now 
largely resolved. 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 

Work is now focused on finalising delayed cases as soon as possible, improving user 
functionality, and ensuring the system is optimised to meet vetting demand. 

The Australian Government Security Vetting Agency is currently processing more cases 
per week using myClearance than in the previous vetting system. 

Defence has established a prioritisation process in consultation with Chief Security 
Officers to ensure the Australian Government Security Vetting Agency can finalise 
clearances for staff performing critical roles as a priority. 

An independent review of myClearance remediation was completed by former Deputy 
Secretary Stephen Merchant in March 2023 to ensure remediation activities were 
appropriately targeted and supported. This review made 10 Recommendations, all of 
which were implemented by Defence. 

The Australian National Audit Office (ANAO) has initiated an audit into Defence’s 
procurement and implementation of the myClearance system.  This Audit has 
completed the discovery stage and ANAO has advised  that an interim report is 
expected to be delivered to Defence in November 2023. 
External Security and Vetting Services (ESVS) Contracting Support 

The Australian Government Security Vetting Agency uses a panel of contractors to 
support the vetting process. The current External Security and Vetting Services (ESVS) 
panel deed was established in August 2019 with the deed expiring in August 2024.  

The Australian Government Security Vetting Agency has released an approach to 
market for External Security Vetting Services with a Request for Tender being published 
on Austender on 17 October 2023.   

This ESVS procurement is a joint initiative between several Commonwealth agencies, 
led by the Australian Government Security Vetting Agency.  The resultant panel will be 
established through a Deed of Standing Offer which will include separate Service 
Categories covering vetting service requirements for the Australian Government 
Security Vetting Agency, Australian Submarine Agency, Australian Security Intelligence 
Office and Department of Foreign Affairs and Trade. 
What impact have myClearance issues had on vetting timelines?  

Current clearance timeframes are: 
Key Performance 
2023-24 as at  
Days over 
Clearance level 
Indicator 
10 October 2023 
Benchmark 
Baseline  
20 days 
36 days 
+16 
Negative Vetting Level 
+19 
70 days 
99 days 
1  
Negative Vetting Level 
+39 
100 days 
139 days 
2  
Positive Vetting  
180 days 
193 days 
+13 
 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
How many people are affected by the delays?  

The Australian Government Security Vetting Agency anticipates completing in excess of 
70,000 security clearances in 2023-24.  

Over 28,400 clearances have been completed in 2023-24, and approximately 31,000 
clearances are in analysis. 

The Australian Government Security Vetting Agency completed 63,729 clearance cases 
in 2022-23, with over 36,000 completed in myClearance. 
Do 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.  
Is there a risk to national security from the longer processing times?  

The Australian Government Security Vetting Agency has developed processes to ensure 
clearances for Government or industry personnel performing critical roles can be 
finalised as a priority. 
What is the cost of myClearance?  

The budget for the myClearance project was $307.3 million. This includes: 
-
$123.9 million for acquisition; 
-
$14.7 million in contingency (which has not yet been accessed); 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 and, where necessary, has accessed existing project funding. 
How many clearances have been progressed under the new system?  

Between 28 November 2022 and 10 October 2023, the Australian Government Security 
Vetting Agency finalised 64,455 clearances in myClearance. 
Are myClearance delays impacting the Australian Signals Directorate (ASD) REDSPICE program?  

The Australian Government Security Vetting Agency 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 the Australian Government Security Vetting 
Agency continues to work with ASD to prioritise these cases. 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 

As at 18 October 2023 AGSVA has granted 280 REDSPICE clearances including 41 PVs in 
FY 2023-24. 

For REDSPICE Baselines, NV1s and PVs, AGSVA is currently meeting clearance 
benchmark timeframe targets.  
Background  

The Australian Government Security Vetting Agency’s vetting system and work 
processes were no longer fit-for-purpose and required modernising to meet continued 
demand growth and the increasingly complex security threat environment. 

The Vetting Transformation Project delivered a new core vetting system that 
transforms how the Australian Government Security Vetting Agency 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, the Australian 
Government Security Vetting Agency identified issues with the transfer of cases to the 
Australian Security Intelligence Organisation (ASIO) and problems with the data 
transferred to myClearance. As a result of these issues, ASIO case processing slowed 
significantly, and users experienced difficulties logging into myClearance, or had 
problems with the accuracy of their data.  
Supporting Information 
Questions on Notice  
Supplementary 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. Questions included: 

liaising and testing of the myClearance portal for Security Officers; 

how the Australian Government Security Vetting Agency is increasing its 
workforce to deal with its backlog and growth in applications; 

what the tender process was that awarded Accenture the contract; and 

what steps the Australian Government Security Vetting Agency is taking to 
accredit foreign security clearances in view of the AUKUS program. 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
Freedom of Information (FOI) Requests  
˜
From 1 May 2023 to 12 October 2023, The Australian Government Security Vetting 
Agency received eight requests for access to information from applicants seeking 
information contained in their Personal Security File. O
Of these, one was released in full, 
one was a partial release, one was denied due to there being procedural fairness process 
in progress, two had no relevant documents found, one was publicly available 
information and two remain in process.  
Recent Ministerial Comments 
˜
On 25 August 2023, the Assistant Minister for Defence posted on LinkedIn after 
meeting with senior Defence Security personnel and key Defence industry 
representatives to discuss the challenges Defence industry has faced during the 
myClearance rollout, update Defence industry on remediation progress and seek 
Defence industry’s ideas for vetting process improvements. 
Relevant Media Reporting   
˜
On 24 August 2023, Defence Connect reported on the progress of mandatory security 
clearances being approved for sensitive Defence contracts.  
˜
On 6 July 2023, innovationAus.com reported on the audit of myClearance by the 
Australian National Audit Office. 
˜
On 20 June 2023, The Australian Strategic Policy Institute reported on the importance 
of classifications and clearances. 
˜
On 2 June 2023, innovationAus.com reported on Former Defence Deputy Secretary of 
Intelligence and Security, Stephen Merchant, conducting a review of myClearance. 
˜
On 9 May 2023, innovationAus.comreported on the myClearance system still facing 
issues. 
˜
On 8 May 2023, The Canberra Times 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 reported on Office of National Intelligence’s 
experience with myClearance. 
 
 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
 
Division: 
Defence Security Division 
PDR No:  
SB23-000747 
Prepared by: 
Cleared by Division Head:  
Ross McAllister 
Mardi Jarvis 
Acting Assistant Secretary Vetting 
Acting First Assistant Secretary Defence 
 
Security 
Mob: s22
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Mob: s22
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Date: 30 August 2023  
Date: 30 August 2023  
Cleared by Deputy Secretary (or equivalent Band 3/3*): 
Date: 23 October 2023  
Celia Perkins, Deputy Secretary Security and Estate 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
Questions on notice referred to within the brief: 
2022–23 Supplementary Estimates 
Senator Claire Chandler 
Questions 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 
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 
 
 
 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
2022-23 Supplementary Estimates 
Senator the Hon Linda Reynolds, CSC 
Question Number: 64 
Date Question 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? 
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. 
Prepared By: 
Cleared By:  
 
Name: Mardi Jarvis 
Name: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000747  
Last updated: 23 October 2023 
 
 
 
 
         myClearance Remediation 
Key witnesses: Celia Perkins; Peter West 
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. 
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: Celia Perkins 
Position: Assistant Secretary Vetting 
Position: Deputy Secretary Security and Estate 
Division: Defence Security 
Group/Service: Security and Estate 
Phone: 
 
Phone: 
 
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Supplementary Budget Estimates October 2023
PDR No: SB23-000725
Last updated: 1 September 2023
 Defence Industry Development Strategy
Key witness: Hugh Jeffrey
Defence Industry Development Strategy
Handling Note: Deputy Secretary Strategy, Policy and Industry, Hugh Jeffrey, to lead on the 
Defence Industry Development Strategy.
Key Messages

Later this year the Government will release the Defence Industry Development 
Strategy.

This will be a critical step in responding to the recommendations of the Defence 
Strategic Review. 

The Defence Industry Development Strategy will establish the framework and 
principles for the direction of defence industry policy for what will be an important 
decade in Australia’s national security.
Talking Points

We need a sovereign industrial base to grow our self-reliance and leverage our close 
allies’ and partners’ technology and industrial bases, to their benefit as well as ours.

The Government has said the Defence Industry Development Strategy will set out:

The strategic rationale for a sovereign defence industrial base.

More 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.

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.

The 2016 Defence Industry Policy Statement recognised industry as a 
fundamental input to capability and acknowledged Defence is reliant on a robust, 
resilient, internationally competitive and Australian defence industrial base. This 
industrial base is fundamental to Defence capability and Australia’s national 
power.
Prepared By:
Cleared By: 
Name:  Dr Kate Cameron
Name: Hugh Jeffrey
Position: Assistant Secretary Defence Industry Domestic Policy
Position: Deputy Secretary
Division: Defence Industry Policy
Group/Service: Strategy, Policy & Industry
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Supplementary Budget Estimates October 2023
PDR No: SB23-000725
Last updated: 1 September 2023
 Defence Industry Development Strategy
Key witness: Hugh Jeffrey

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: AUKUS Advanced Capabilities and Defence industry.

Please direct any questions relating to AUKUS to Deputy Secretary, Strategy, Policy and 
Industry Group, Hugh Jeffrey and First Assistant Secretary AUKUS Advanced 
Capabilities, Stephen Moore.
If pressed: Nuclear powered submarines.

Please direct any questions relating to nuclear powered submarines to the Australian 
Submarine Agency.
If pressed: Has the Defence Industry Development Strategy included Public Consultations?

Over 120 organisations from across Australia were consulted. Consultations were held:

with state and territory governments, primes, small and medium enterprises, 
universities and peak industry groups; and

in every state and territory and included a mix of face-to-face and virtual 
engagements.

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.

However, Defence engaged an external service provider to assist with some of the 
initial industry consultation. 

The total expenditure for this 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 have 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;
Prepared By:
Cleared By: 
Name:  Dr Kate Cameron
Name: Hugh Jeffrey
Position: Assistant Secretary Defence Industry Domestic Policy
Position: Deputy Secretary
Division: Defence Industry Policy
Group/Service: Strategy, Policy & Industry
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Supplementary Budget Estimates October 2023
PDR No: SB23-000725
Last updated: 1 September 2023
 Defence Industry Development Strategy
Key witness: Hugh Jeffrey

shorter timeframes for, and simplification of, procurement processes; and

consistent communication in a language industry can understand (i.e. do not talk 
in Defence terms but industry terms).
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 that support industry. 

It will be important to make sure there is support for defence industry but it would be 
premature to speculate about the implications for existing grant programs. 
If pressed: When will the Defence Industry Development Strategy be released? 

The Defence Industry Development Strategy will be released later this year.
If pressed: When is the Defence Industry Development Strategy due to be delivered to 
Government? 

It is not appropriate to answer that question as it forms advice to Government.
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 
implementation of several key recommendations of the Defence Strategic Review. It 
noted that, in order to build defence industry needed to support the ADF, the 
Government will release a Defence Industry Development Strategy by the end of 2023.

On 21 June 2023, the Senate Foreign Affairs, Defence and Trade Legislation Committee 
resolved to inquire into the performance of the Department 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 
Senate Standing Committee on Foreign Affairs, Defence and Trade 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 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 
related programs and if so will the cuts make the current skills shortage in the Defence 
industry worse.
Prepared By:
Cleared By: 
Name:  Dr Kate Cameron
Name: Hugh Jeffrey
Position: Assistant Secretary Defence Industry Domestic Policy
Position: Deputy Secretary
Division: Defence Industry Policy
Group/Service: Strategy, Policy & Industry
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000725
Last updated: 1 September 2023
 Defence Industry Development Strategy
Key witness: Hugh Jeffrey
Freedom of Information (FOI) Requests 

No FOIs requested.
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 that 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 Strategy. 

On 27 February 2023, the Deputy Prime Minister made a statementhighlighting the 
Government’s commitment to delivering a new Strategy at the Defence Industry 
Dinner 2023.
Relevant Media Reporting 

In The Australian Financial Review on 8 August 2023, Jessica Sier published an article 
which stated “The former Shark Tank judge has taken his new defence-focused venture 
capital fund to market, hoping to raise $60million for firms making weapons and other 
defence technologies”. 

The Asia-Pacific Defence Reporter on 30 July 2023 published an article in which NIOA’s 
CEO for Australia and New Zealand, Ben James, has called on “Defence to rally behind 
industry in the wake of revelations contractors face the axe”.

In The Australian on 22 June 2023, Ben Packham published an article noting that the 
Senate Foreign Affairs, Defence and Trade Legislation committee will look at the 
performance of Defence in supporting local defence players to deliver urgently needed 
capabilities, and opportunities to expand the domestic industrial base.

In The Australian on 13 June 2023, Ben Packham published an article stating 
“Australian Industry & Defence Network chief executive Brent Clark said that without a 
commitment to establishing sovereign defence industry capabilities, Australian firms 
would be overlooked by foreign prime contractors who would argue it was too 
expensive and slow to rely on local suppliers”.
Prepared By:
Cleared By: 
Name:  Dr Kate Cameron
Name: Hugh Jeffrey
Position: Assistant Secretary Defence Industry Domestic Policy
Position: Deputy Secretary
Division: Defence Industry Policy
Group/Service: Strategy, Policy & Industry
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000725
Last updated: 1 September 2023
 Defence Industry Development Strategy
Key witness: Hugh Jeffrey
Division:
Strategy, Policy, and Industry Group
PDR No: 
SB23-000725
Prepared by:
Cleared by Division Head: 
Dr Kate Cameron
David Nockels
Assistant Secretary 
First Assistant Secretary 
Defence Industry Domestic Policy
Defence Industry Policy
Mob:  
s22
 
Ph: 
s47E(d)
Mob:  
s22
 
Ph: 
s47E(d)
Date: 17 August 2023
Date: 21 August 2023  
Consultation:  
N/A
Cleared by CFO / DPG / DSR:
N/A
Cleared by Deputy Secretary:
Date: 1 September 2023  
Hugh Jeffrey
Deputy Secretary
Strategy, Policy and Industry Group
Questions on notice referred to within the brief:
Senate Standing Committee on Foreign Affairs, Defence and Trade Budget Estimates 
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? 
Prepared By:
Cleared By: 
Name:  Dr Kate Cameron
Name: Hugh Jeffrey
Position: Assistant Secretary Defence Industry Domestic Policy
Position: Deputy Secretary
Division: Defence Industry Policy
Group/Service: Strategy, Policy & Industry
Phone:  
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Supplementary Budget Estimates October 2023
PDR No: SB23-000725
Last updated: 1 September 2023
 Defence Industry Development Strategy
Key witness: Hugh Jeffrey
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 
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.
Senate Standing Committee on Foreign Affairs, Defence and Trade Budget Estimates 
Senator the Hon David Fawcett 
Question Number: 74
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 Kate Cameron
Name: Hugh Jeffrey
Position: Assistant Secretary Defence Industry Domestic Policy
Position: Deputy Secretary
Division: Defence Industry Policy
Group/Service: Strategy, Policy & Industry
Phone:  
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/ 
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Phone:  
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Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
Current ADF Operations 
Handling Note:  
˜
Head of Military Strategic Commitments, Air Vice-Marshal Stephen Chappell, to lead on 
current ADF operations.  
˜
Vice Chief of the Defence Force, Vice Admiral David Johnston, to support.   
 
Key Messages 
˜
Defence’s operations contribute to ensuring Australia displays the capability and 
willingness to shape our environment, deter actions against our interests, and when 
required, respond with military force. 
˜
As of 30 September 2023, around 556 ADF personnel were deployed on 22 named 
operations across Australia, the immediate region and globally. 
˜
The total cost of named operations as at 30 September 2023 is $36,585,585. 
Talking Points 
Operation BEECH 
x
Operation BEECH is the ADF operation for Defence’s support to the Department of 
Foreign Affairs and Trade led whole of Government response to the Hamas-Israel crisis. 
x
At the request of the Minister for Foreign Affairs, Defence has been assisting the 
Department of Foreign Affairs and Trade led departure of Australian citizens and approved 
foreign nationals from Tel Aviv, Israel.  
x
The ADF remains postured to provide additional support if required.  
x
ADF support for Operation BEECH is detailed in the Israel brief. 
Operation RENDER SAFE:
x
Operation RENDER SAFE is the ADF-led operation supporting Pacific nations in the 
ongoing removal of explosive remnants of war. 
x
In July 2023, the ADF supported the Government of Nauru with the safe disposal of a 
500-pound bomb discovered at an industrial site in the Aiwo District in 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 and the 
Nauru Police Force to co-develop plans for safely disarming and disposing of the 
bomb. 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
Phone:  
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Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
x
In August 2023, the ADF returned to Nauru for 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 the 
United States Marine Corps participated in the activity.  
-
Members of the United States Army, French Armed Forces in New Caledonia and 
Republic of Korea Armed Forces joined as observers. 
Operation KUDU  
x
Operation KUDU is the name of the operation for ADF support to Ukraine. 
x
The operation includes training the Armed Forces of Ukraine (delivered in the United 
Kingdom) and deploying a Royal Australian Air Force E-7A Wedgetail aircraft to Germany for 
approximately six months from October 2023.  
-
The deployment of an E-7A Wedgetail aircraft will help protect a vital gateway of 
international humanitarian and military assistance to Ukraine. 
x
All ADF support to Ukraine, including military assistance is detailed in the Ukraine brief. 
Operation LILIA 
x
Operation LILIA is the ADF contribution to the whole-of-government response to the 
Solomon Islands Government’s request for assistance in stabilising internal security. Since 
November 2021, ADF personnel have provided ongoing support, including logistical and 
health services, to the Solomon Islands International Assistance Force led by the Australian 
Federal Police.  
x
Under Operation LILIA, Defence will contribute to the whole-of-government response to the 
Solomon Islands Government request for security support for the 2023 Pacific Games. 
Operation ORENDA (Mali) 
x
The ADF has supported the United National Multidimensional Integrated Stabilization 
Mission in Mali under Operation ORENDA. 
x
On 30 June 2023, the United Nations Security Council unanimously approved the complete 
withdrawal of United Nations peacekeeping forces in Mali by 31 December 2023. 
x
No ADF personnel are currently deployed in Mali. 
Operation RESOLUTE and Operation SOVEREIGN BORDERS 
x
Operation RESOLUTE is the ADF contribution to the whole-of-government effort to 
protect Australia’s borders and offshore maritime interests under the Joint Agency Task 
Force Operation SOVEREIGN BORDERS. 
x
This includes 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. 
x
Defence calibrates the resources provided to Operation SOVEREIGN BORDERS 
according to operational requirements.  
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
Phone:  
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Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
x
Defence provides personnel, maritime assets, patrol aircraft and other capabilities in 
support of Operation RESOLUTE.  
-
These assets are assigned to the Commander Maritime Border Command, a 
Royal Australian Navy Rear Admiral, who is also a sworn officer in the Australian 
Border Force. 
x
The area of operations for Operation RESOLUTE covers approximately 10 per cent of 
the world's surface. 
x
Operation SOVEREIGN BORDERS is managed under a Joint Agency Task Force through 
the Department of Home Affairs. 
ADF activities in the South China Sea 
x
The ADF continues to operate in the South China Sea as part of Australia's 
long-standing program of international engagement with countries in and around the 
region. 
Operations concluded in 2023 
Operation CARNELIAN 
x
Operation CARNELIAN was the ADF contribution to the Department of Foreign Affairs 
and Trade-led whole-of-government response to the Sudan crisis. 
x
On 2 and 4 May 2023, two Royal Australian Air Force C-130J Hercules contributed to 
international evacuation efforts by safely evacuating 153 people. This comprised 57 
Australians and their family members, and 96 evacuees from other nations. 
x
The operation ceased on 12 May 2023.  
Operation LANTERN 
x
Operation LANTERN was the ADF contribution to security support for the cancelled 
Quad Leaders’ summit in May 2023.  
Operation VANUATU ASSIST 23 
x
Operation VANUATU ASSIST 23 was the ADF contribution to the Department of Foreign 
Affairs and Trade-led whole-of-government response in support of Vanuatu in the wake 
of Tropical Cyclones Judy and Kevin, which passed over the country on 1 and 
3 March 2023 respectively. 
x
Defence support included transport and distribution of humanitarian assistance, clean 
up and remediation of local infrastructure, aerial damage assessments and 
hydrographic surveys. At its peak, Defence support comprised more than 600 
personnel, HMAS Canberra (including helicopters, engineering personnel, landing craft 
and amphibious vehicles) and fixed-wing transport assistance. 
x
Operation VANUATU ASSIST 23 was established on 5 March 2023 and ceased on 
18 April 2023. 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
Operation FLOOD ASSIST 23-1 
x
Operation FLOOD ASSIST 23-1 was established on 6 January 2023 as part of the 
Commonwealth’s whole-of-government response to flooding in the Kimberley region of 
Western Australia. 
x
Support comprised of three fixed-wing transport aircraft and five helicopters to 
relocate flood-affected people and assist with emergency logistics resupply. 
x
Defence also provided general duties personnel and planners to assist the  
Western Australian Department of Fire and Emergency Services with emergency 
response, initial clean-up, damage assessments, emergency resupply and planning.  
x
Approximately 360 personnel were assigned to the operation which was closed on 
28 February 2023. 
Background  
x
Details of each operation is below.  
Operation 
Overview 
Personnel 
Expenditureii (AUD) 
Expenditure 
Deployedi 
as at 30 Sep 23  
2022-23 ($) 
ACCORDION 
ADF support to Middle East 
50 
ϭϵ͕ϮϴϬ͕ϳϬϴ 
102,353,686 
operations 
ARGOS 
UN sanctions enforcement 
4 
ϵϴϰ͕ϭϭϱ 
1,674,243 
against the Democratic 
People’s Republic of Korea.  
ASLAN 
United Nations mission 
14 
ϯϱϱ͕ϬϬϯ 
1,897,723 
South Sudan 
AUGURY-
Global Counter Terrorism 
46 
ϴϰϭ͕ϭϲϵ 
2,641,637 
GLOBAL 
 
BANNISTER 
8 
ϮϱϮ͕ϱϱϰ 
343,887 
BEECH 
ADF support to WoG 
Recently 
Recently 
Recently 
response to Hamas/Israel 
commenced 
commenced 
commenced 
conflict 
DYURRA 
Dedicated ADF space 
0 
Nil to date 
Nil to date  
operation integrating space 
capabilities, services and 
effects into wider 
operations 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
Operation 
Overview 
Personnel 
Expenditureii (AUD) 
Expenditure 
Deployedi 
as at 30 Sep 23  
2022-23 ($) 
FORTITUDE United 
Nations 
1 942
871 
Disengagement Observer 
Force, Syria 
GATEWAY 
Preservation of regional 
0 5,015
369,094 
security and stability in 
South-East Asia  
KUDU 
Training Ukrainian soldiers 
79 1,287,581
2,727,727 
in the UK 
E-7A Deployment 
Approx 100 
Recently 
Recently 
(not 
Commenced 
Commenced 
included in 
total below) 
LILIA 
Solomon Islands – security 
19 1,344,330
13,295,839 
support 
LINESMEN 
Inter-Korean peace process 
4 
276,939
911,708 
MANITOU 
Maritime security – Middle 
5 260,412 
1,576,270 
East, West Indian Ocean 
MAZURKA 
Peacekeeping, Sinai, Egypt 
27 
678,741 
2,226,373 
OKRA 
Defeat Daesh in Iraq and 
5 208,332 
12,249,110 
Syria 
ORENDA United 
Nations 
0iii   
12,700 
45,366 
Peacekeeping, Mali 
PALADIN United 
Nations 
12 198,503 
985,850 
Peacekeeping, Israel, 
Lebanon,  Syria 
RENDER SAFE 
Pacific, removal of 
0 102,687 
479,109 
explosive remnants of war  
RESOLUTE Border 
protection, 
278 10,162,504 
118,868,318 
maritime interests 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
Operation 
Overview 
Personnel 
Expenditureii (AUD) 
Expenditure 
Deployedi 
as at 30 Sep 23  
2022-23 ($) 
SOLANIA Pacific, 
maritime 
0 265,024 
3,109,929 
surveillance 
SOUTHERN 
Australian Antarctic 
0 23,252 
253,932 
DISCOVERY 
Program 
STEADFAST 
Iraq, NATO capacity 
2 45,074 
221,119 
building 
 
Total 
554 
36,585,585 
266,231,294 
i.
Personnel numbers are accurate as at 30 September 2023. Numbers may vary due to operational 
requirements. 
ii.
Expenditure is accurate as at 30 September 2023. 
iii.
Members assigned to Operation ORENDA have been temporarily withdrawn from theatre due to security 
concerns. 
Supporting Information 
Questions on Notice  
Senate Budget Estimates: 31 May 2023 
˜ QoN 32, Costs of Elements of Operation RESOLUTE, Senator James Paterson (Liberal, 
Victoria) asked about the financial breakdown of the various tasks conducted under 
Operation RESOLUTE. 
˜ QoN 52, Costs, Locations and Civilian Casualties relating to Operation AUGURY, Senator 
Jordon Steele-John (Greens, Western Australia) asked about total and financial year 
costs, locations and estimates on civilian casualties. 
Senate Supplementary Estimates: 2 March 2023 
˜ QoN 60, Operation RESOLUTE surge and additional budget, Senator Paul Scarr (Liberal, 
Queensland) asked for details on recent reporting of an Operation RESOLUTE surge 
including any additional budget allocation.  
Senate Supplementary Estimates: 15 February 2023 
˜ QoN 4, Operation OKRA Costs and ADF Attributed Civilian Casualties, Senator Jordon 
Steele-John (Greens, Western Australia) asked about the financial footprint for 
Operation OKRA and estimate on civilian casualties from ADF operations.  
 
 
 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
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 United Kingdom and United States, including but 
not limited to rules of engagement and geographical limits.’ On 14 July 2022 the 
decision was made not to release the documents. 
˜
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.’ O
On 4 April 
2022 a table listing numbers of ADF personnel deployed was released. 
Recent Ministerial Comments  
Operation BEECH: 
˜
On 16 October 2023, The Deputy Prime Minister, Minister for Foreign Affairs and 
Minster for Government Services released a joint statement announcing Defence 
support for assisted-departures for Australians.  
Operation KUDU: 
˜
On 10 July 2023, the Prime Minister, Deputy Prime Minister and Minister for Foreign 
Affairs 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 BEECH: 
˜
On 16 October 2023, The Advertiser reported, 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 16 October 2023, The Newcastle Herald reported, Multiple Aussie evacuation flights 
due to leave Israel. The were fresh hopes for Australians stranded in Israel, after the 
Government announcing further evacuation flights.  
˜
On 15 October 2023, The West Australian (and syndicated papers) reported, 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. 
˜
On 15 October 2023, NCA Newswire reported, Aussies warned to leave. dŚĞĂƌƚŝĐůĞ 
mentions ADF-assisted flights out of Israel while also noting Minister Wong’s advice on 
Lebanon.  
Operation RENDER SAFE: 
˜
On 30 August 2023, the Daily Mail reported Australian experts help clear unexploded 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
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.   
˜
On 21 July 2023, The National Tribune reported Teamwork defuses threat from Nauru 
bomb when Australian Army EOD specialists worked alongside the Government of 
Nauru, concentrating on making the munition safe while Nauru Police Force personnel 
maintained a cordon for public safety. 
˜
On 21 July 2023, Mirage News reported the Australian Army worked with Nauru 
authorities to render a 500 pound unexploded ordnance safe in Aiwo. This was 
reported in other media outlets including The National Tribune. 
Operation KUDU (Ukraine Support):  
˜
On 23 September 2023, Mena FN reported During Training In UK, Ukrainian Soldiers 
Prepare For Operations In Dense Forests. The article discusses Australia’s training 
support to Ukraine.  
˜
On 4 August 2023, The Mercury reported, Standing with Ukraine for as long as it takes. 
The article is a personal piece by the Journalist and emphasises Australia’s 
commitment.  
˜
On 12 July 2023, The Newcastle Herald reported a Williamtown plane to aid Ukraine 
effort where a sophisticated aircraft based at Williamtown will be deployed to Europe 
for six months as Australia steps up its support for Ukraine against Russia's ‘illegal and 
immoral invasion’. 
˜
On 12 July 2023, Sky news reported a “major step forward” as Australia would provide 
an aircraft to support the Ukraine assistance effort with United States Studies Centre 
Senior Fellow Stephen Loosley stating it was a different dimension in terms of a 
technical step-up for Australia. 
˜
On 10 July 2023, it was widely reported that Australia would deploy an E-7A Wedgetail 
from Australia to Germany to help protect a vital gateway of assistance to Ukraine. 
Some media outlets included Sky News, Al Jazeera, The Guardian, Reuters. 
˜
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 SOLANIA: 
˜
On 30 August 2023, APDR reported Defence supports Pacific partners to combat to fight 
illegal fishing. The article reported the ADF has conducted 17 missions and patrolled 
686,000 square kilometres in an operation to combat illegal fishing in the Pacific as part 
of Operation Island Chief 2023.  
˜
On 1 June 2023, The National tribune reported ADF deters illegal fishing in the Pacific 
through Operation Solania stating ADF has successfully completed Operation ^K>E/о
its latest maritime surveillance mission aimed at detecting and deterring illegal fishing 
activities in the waters of Samoa and Tonga.  
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
˜
On 28 January 2023, Mirage news published an article titled Pacific Islands Combat Illegal 
Fishing, Heighten Maritime Awareness. The article covers a workshop attended by officials 
and experts from the Pacific Islands Forum Secretariat; the Pacific Islands Forum Fisheries 
Agency; the Pacific Fusion Centre; along with Pacific Island representatives; Partners in the Blue 
Pacific partners Australia, Canada, Germany, Japan, Republic of Korea, New Zealand, the United 
Kingdom, and the United States; and PBP observers including the European Union, France, and 
India. 
Operation ASLAN:  
˜
On 29 March 2023, the National Tribune reported on a Change of command for Sudan 
contingent. The article covers Colonel Richard Watson handing over command of 
Operation ASLAN to Colonel David Hughes.  
Operation ARGOS:  
˜
On 14 October 2023, SOFREP reported 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. 
˜
On 23 March 2023, The National Tribune published an article titled Eyes in the sky zero 
in on illicit activities that that covers various activities as part of Operation ARGOS. 
Operation GATEWAY:  
˜
On 23 August 2023, The Malay mail reported  Regional security: Malaysia, Australia 
reaffirm commitment to Five Power Defence Arrangements. The article mentions the 
nations’ confirmation of the importance of Operation Gateway, which consistently 
contributes to regional security and stability.  
˜
On 16 March 2023, the American Military News published an article titled Australian 
military pilots offered counselling after Chinese jet encounters͘Journalist Chris Kirkman 
reports on the support provided to Australian pilots after they encounter Chinese 
military jets. 
Operation RESOLUTE:  
˜
On 28 September 2023, Daily FT reported Sri Lanka and Australia mark 10 years of 
Operation Sovereign Border͘ Sri Lanka and Australia marked a decade of Operation 
Sovereign Borders (quotes from RADM Justin Jones). 
˜
On 28 March 2023, 2GB discussed on The Ray Hadley Morning Show, Op RESOLUTE and 
claims OSB has turned back nine boats since the start of the year. 
˜
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. 
 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
Division: 
Vice Chief of the Defence Force Executive 
PDR No:  
SB23-000748 
Prepared by: 
Cleared by:  
Air Vice-Marshal Stephen Chappell      
Vice Admiral David Johnston, RAN       
Head Military Strategic Commitments 
Vice Chief of Defence Force 
Mob:  
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Ph: 
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Mob:  
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Date: 24 October 2023 
Date: 6 September 2023 
Consultation:  
Date: 24 August 2023  
Commodore Peter Leavy 
Ph:  
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Chief of Staff 
Headquarters Joint Operations Command 
Cleared by Deputy Secretary (or equivalent 
Date: 6 September 2023 
Band 3/3*): 
Vice Admiral David Johnston 
Vice Chief of Defence Force 
 
 
Questions on notice referred to within the brief: 
 
2023-24 Budget Estimates  
Senator James Paterson 
Question Number: 32 
Date question was tabled: 14 July 2023 
 
Question 
Senator PATERSON: I imagine you won't be able to answer this here, but on notice could you 
break down what proportion of that $77.5 million and indeed the $84.7 million in the 
previous financial year was due to Operation Sovereign Borders and what was due to other 
operations under Resolute? 
Gen. Campbell: That might be difficult in that all of the force elements that are assigned to 
the patrol boats and aircraft undertake aspects of all of the different civil maritime security 
response challenges. The most reasonable thing would be to say that mostly the scale is 
driven by Operation Sovereign Borders but there are times when other elements of this 
variety of civil maritime security challenges also lift the contribution that we might make. If 
there are periods in which the Australian Border Force might have a vessel that is no longer 
able to undertake its mission, we might have to add one of our own. Similarly, when they 
have all vessels operating, we might reduce. 
Senator PATERSON: Let's see what you can do on notice. Go away and reflect on that, and I'll 
look forward to seeing what you can provide. But you mentioned in a previous answer, CDF, 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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OFFICIAL 
Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
that the tempo or the requirements have been higher in recent months than they have been 
in previous years. What do you attribute that to? 
 
Answer 
Operation RESOLUTE contributes to the whole-of-government maritime surveillance and 
response in the maritime approaches to Australia, this includes Defence’s contribution to 
Operation SOVEREIGN BORDERS. Defence does not report against the individual activities 
within Operation RESOLUTE (e.g. fisheries protection vs immigration). 
Questions specific to Operation SOVEREIGN BORDERS should be referred to Department of 
Home Affairs, as they are best placed to address operational requirements, demands and 
risks for Operation SOVEREIGN BORDERS. 
 
2023-24 Budget Estimates  
Senator Jordon Steele-John 
Question Number: 52 
Date question was tabled: 14 July 2023 
 
Question 
Q1. In financial year 2021-22, what was the cost of Operation AUGURY? 
Q2. Do you have a lifetime cost for the operation? 
Q3. In how many countries across the globe are forces that make up Operation AUGURY 
currently operating in? 
Q4. Since its inception, has Operation AUGURY seen deployments of special forces beyond 
Afghanistan and Iraq? And, if so, to where? 
Q5. Does the department have an estimation of the impact in terms of civilian casualties that 
have come from this operation? 
 
Answer 
Total cost of Operation AUGURY for 2021-22: $4 million. 
Total costs of Operation AUGURY: 
• from inception on 3 July 2014 to 2021-22: $37.1 million 
• estimated cost for Operation AUGURY in 2022-23: $4.3 million. 
The ADF operates in a number of locations across the Middle East and the Indo-Pacific 
Region. 
Yes, personnel have served in the Middle East and the Indo-Pacific Region. 
Defence is not aware of, nor has a record of, civilian casualties that have come from 
Operation AUGURY. 
 
2022-23 Supplementary Estimates  
Senator Paul Scarr 
Question Number: 60 
Date question was tabled: 18 May 2023 
 
Question 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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Budget 
Estimates: 
25 
October 
2023 
      PDR 
No: 
SB23-000748 
Last updated: 24 October 2023 
 
 
 
 
 
             Current ADF Operations 
Key witnesses: Vice Admiral David Johnston; Air Vice-Marshal Stephen Chappell  
- It was recent reported that there was a “surge” in Operation Resolute, the Australian 
Defence Force’s (ADF) contribution to the whole-of-government effort to protect Australia's 
borders through surveillance and response in the maritime approaches to Australia.  
- When was the need for this surge first raised with the ADF?  
- When did the surge first begin?  
- What actions necessitated the increased patrols and surveillance?  
- Has the ADF received any additional Budget allocation for this Operation, above what was 
planned/expected?  
- How many additional surveillance aircraft have been deployed?  
- How many additional patrol boats have been deployed?  
- While operation Resolute is an ongoing operation, when are patrols expected to return to 
previous levels? 
 
Answer 
a) Defence provides resources to protect Australia’s borders and offshore maritime interests 
in response to requirements from the Joint Agency Task Force Operation Sovereign Borders 
as managed by Department of Home Affairs. Support is provided to Operation Sovereign 
Borders through support to Operation Resolute. As such, Defence is permanently ready to 
surge support should risks or intelligence cueing require it. 
b) Defence surged support to Operation Resolute from early February 2023. 
c) Operational questions on the conduct of Operation Sovereign Borders should be addressed 
to the Department of Home Affairs. 
d) As per long standing practice, Operation Resolute is funded through no win no loss 
provisions, as with any other major operation. 
e) Operational questions on the conduct of Operation Sovereign Borders should be 
addressed to the Department of Home Affairs.  
 
2022-23 Supplementary Estimates  
Senator Jordon Steele-John 
Question Number: 4 
Date question was tabled: 4 April 2023 
 
Question 
Q1. What has been the financial footprint of the deployment in dollar terms since 2014? 
Q2. Does the ADF have an estimation of civilian casualties as part of this operation?  
 
Answer 
Q1. Costs for Operation OKRA are publically reported in Defence’s Portfolio Budget 
Statements. 
Q2. No. 
 
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 
 
Branch/Division: Military Strategic Commitments 
Group: Vice Chief of the Defence Force Group 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
 
 Israel 
Handling Note:  
˜
Deputy Secretary, Strategy, Policy, and Industry, Mr Hugh Jeffrey, to lead on Israel. 
˜
Head Military Strategic Commitments, Air Vice-Marshal Stephen Chappell, to lead on 
ADF operations.   
˜
Defence Chief Counsel, Adrian D’Amico, to lead on international law of armed conflict.  
 
Key Messages 

Australia is a longstanding contributor to the security and stability of the Middle East 
through our contributions to regional peacekeeping operations. 

Under Operation BEECH, Defence is supporting the Department of Foreign Affairs 
and Trade (DFAT)-led, Whole-of Government response to the Israel-Hamas conflict.  

In response to a request from the Foreign Minister, Defence deployed two Royal 
Australian Air Force aircraft to assist with the movement out of Israel of Australian 
citizens, their families and approved foreign nationals. One of these aircraft (KC-30) 
has since returned to Australia with 97 evacuees. 

In response to a request from the Foreign Minister, Defence is deploying additional 
aircraft and planning personnel to the region.  This deployment is a precautionary 
measure to support contingency planning associated with the rapidly changing 
security situation in the region. 

All ADF personnel in and around Israel are accounted for and safe.

Talking Points 
Operation BEECH and assisted departures  

On 13 October, Defence initiated Operation BEECH and deployed a Royal Australian Air 
Force KC-30A and a C-17A Globemaster III aircraft to the United Arab Emirates. 

The United Arab Emirates has shown deep commitment to facilitating Australian 
Government repatriations, including providing strong support for flights to move 
in and out of Dubai. 

On 15 October, Defence commenced military assisted departure flights from Israel.  

As at 23 October 2023 (0900 Australian Eastern Daylight Saving Time) Defence has 
successfully conducted five flights carrying 394 passengers from Tel Aviv’s Ben Gurion 
International Airport to Dubai World Airport. 

DFAT advise that a total of 848 passengers have been transported from Israel by the 
Australian Government contracted and ADF flights. 
 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
 

Over the period 20-21 October, the ADF also assisted 97 persons 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 are no further planned Australian Government assistance flights from Israel due to 
diminishing demand.  

Commercial options are still available. Australians who want to leave are strongly 
encouraged to take the first available option. 

As at 24 October 2023, DFAT has reported 1,858 Australians have now left Israel.  

Further questions on Australia’s assisted departures should be directed to DFAT.  
If pressed: Is Australia sending additional aircraft or personnel to the Middle East?  

The ADF is deploying two additional aircraft and personnel to the Middle East Region as a 
precautionary measure to support contingency planning associated with the rapidly 
changing security situation in the region.   
 
ADF personnel in UN peacekeeping missions around Israel 

Australia’s ongoing commitment of ADF peacekeepers reflects our longstanding 
support for the region’s security and stability. 

ADF personnel in these missions are involved in monitoring peace agreements between 
Israel, Egypt, Lebanon and Syria. 

Australia provides ADF personnel to a number of peacekeeping missions in and around 
Israel including:  

Operation PALADIN is the ADF contribution of approximately 14 personnel to the 
United Nations Truce Supervision Organisation, spread across Egypt, Israel, 
Jordan, Lebanon and Syria.  

Operation MAZURKA is the ADF contribution of approximately 27 personnel to 
the Multinational Force and Observers in Sinai. 

Operation FORTITUDE is the ADF contribution of 1 personnel to the United 
Nations Disengagement Observer Force in Syria. 

All Defence personnel are accounted for and safe.  

The United Nations and Multinational Force and Observers are responsible for the 
safety of ADF personnel in their missions.  
 
 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
 
Australia’s Defence relationship with Israel 

Since 2018, Australia and Israel have expanded our bilateral defence cooperation, 
including establishing an Australian Defence Attaché to Tel Aviv in 2018.  

Australia and Israel's defence cooperation includes: 

An annual Australia-Israel Strategic Dialogue since 2018.   

A long-standing framework with Israel to share intelligence. 

In 2018, Israel’s Prime Minister, Benjamin Netanyahu, said Israeli 
intelligence shared with Australian security agencies helped foil a planned 
Islamic State attack on a flight to Sydney. 

Maintaining a resident Defence Attaché to the Australian Embassy in Tel Aviv.  

Defence personnel attending conferences and training courses in Israel on the 
topics of cyber security, legal, and health.  
If asked: When was the Deputy Prime Minister notified of Hamas’ attack against Israel? 

Defence officials first provided advice to the Office of the Deputy Prime Minister by email 
at 0730 AM 08 October 2023.  

Following initial notification of the attacks in Israel, a series of conversations and updates 
between Office of the CDF, Joint Operations Command, Military Strategic Commitments, 
and Office of the Deputy Prime Minister occurred.   

In accordance with normal practice associated with crises, Defence provides daily updates 
to the Office of the Deputy Prime Minister.   

On 13 October, the Chief of the Defence Force discussed the Hamas-Israel conflict with the 
Deputy Prime Minister.  

On the 13 October, the Defence Minister received a formal request from the Foreign 
Minister for the ADF to assist DFAT with the movement of Australian citizens and their 
families, and other approved foreign nationals to depart Israel.  

Following the 13 October request Operation BEECH was established, Defence’s 
support to the DFAT-led whole-of-government response to the Hamas-Israel conflict. 

On the 16 October, Senior Defence officials verbally briefed the Deputy Prime Minister, 
primarily in relation to an operational update of Operation BEECH.  

On 21 October, the Chief of the Defence Force discussed the Hamas-Israel conflict with the 
Deputy Prime Minister.  

On the 21 October, the Defence Minister received a further formal request from the 
Foreign Minister for Defence assistance for planning and support for potential future 
contingency operations.  

On the 22 October the Defence Minister responded to the Foreign Minister 
accepting the request for support. 
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
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Phone:  
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
If pressed: Visits by Defence and/or Defence portfolio Ministers to Israel?

The last Ministerial visit to Israel was by then Minister for Defence Industry, Christopher 
Pyne, in July 2018.  

From Defence:  

Dr Clare Murphy, Assistant Secretary Defence Innovation Hub, attended the 
Australia-Israel Industry Cooperation Group meeting in Tel Aviv in September 2022.  

MAJGEN Toohey represented Chief of Defence Force at a Chiefs of Defence (CHODS) 
meeting at the International Military Innovation Conference in Tel Aviv in September 
2022.   

Any further questions should be taken on notice. 
 
If pressed: Israeli events Defence has supported the Minister to attend 

Defence has provided briefing to support keynote addresses by the Deputy Prime 
Minister in Australia, at:  

Embassy of Israel’s Independence Day Reception on 31 May 2023,   

Australian Strategic Policy Institute (ASPI) Be’er Sheva Dialogue 2022 on 21 
November 2022.  
If pressed: Defence exports to Israel [please refer to Brief 36 – Export Controls] 

As at 18 October 2023, Defence has issued 41 export permits to Israel.  

Defence assesses each export application on its own merits against 12 legislative criteria. 
The criteria address foreign policy, human rights, national security, regional security and 
Australia’s international obligations.  

Permits are required for a broad range of goods and technologies, and should not be 
ĐŽŶĨƵƐĞĚǁŝƚŚǁĞĂƉŽŶƐƐĂůĞƐ͘о&ŽƌĞdžĂŵƉůĞ͕ƉĞƌŵŝƚƐĂƌĞƌĞƋƵŝƌĞĚĨŽƌŵƵŶŝƚŝŽŶƐ;ŝŶĐůƵĚŝŶŐ
sporting firearms and munitions under Australian unilateral controls), radios, computing 
components, software, and chemicals that have legitimate civilian and commercial 
purposes. 

Australia maintains a robust export control regime that is consistent with our international 
obligations and commitments [refer any specific questions on export control processes or 
permits to Stephen Moore, First Assistant Secretary, Defence Industry Policy]     
 
If pressed: Why did it take over a week after the conflict started for Royal Australian Air Force 
flights to assist people to leave? 

Since the conflict began the Government has been undertaking extensive contingency 
planning, including for military-assisted departures by air.  

Tel Aviv Ben Gurion International airport has remained open and commercial flights 
have continued to operate since the conflict started.  
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
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& 
s22
 
 
Phone:  
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& 
s22
 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 

Since 13 October 2023 as the availability and reliability of commercial flights decreased, 
the Government began providing both commercial (Qantas and Adagold) and military 
options.  
If pressed: Explosion at Al-Ahli Hospital in Gaza 

This is a conflict zone and assessments are difficult. 

The US National Security Council’s current assessment is that Israel is not responsible 
for the explosion at al-Ahli Arab Hospital in Gaza. 

The strike on Al-Ahli Arab Hospital in Gaza is shocking and deeply upsetting.   

Australia’s position is always that the protection of civilian lives and respect for 
international humanitarian law is paramount.  
If pressed: What is Iran’s involvement in the conflict  

It is well established that Iran has provided Hamas with support over many years. 

Australia is not aware of any direct evidence that Iran was involved in the Hamas attack 
on Israel starting on 7 October, either planning it or carrying it out. 

Australia maintains a range of sanctions against Iran. 
Background  

On 7 October Hamas and other militant groups, including the Palestinian Islamic Jihad, 
launched a surprise attack against Israel from Gaza. Large numbers of soldiers and 
civilians were taken hostage (estimated at close to 200). Some of those taken were 
foreign nationals – from the US, Thailand, Nepal, UK, Canada, Mexico, France and 
Germany. On 20 October, two US captives were released by Hamas. On 24 October, 
two more hostages were released by Hamas.   

The government of Israel declared a state of emergency and war in response to the 
attacks. Launching ‘Operation Iron Swords’, Israel responded with a barrage of air 
strikes on targets in the Gaza strip. 
Australian Government Assisted Departure Flights  

Prime Minister Albanese announced Australian Government assisted departure flights 
on 11 October 2023. Since 14 October (AEDT) eight (five military) Australian 
Government flights have departed Tel Aviv.   

DFAT also facilitated onward travel to Australia for Australian’s arriving in Dubai from 
Tel Aviv. Three flights have landed in Sydney on chartered flights operated by Qantas, 
Qatar and Emirates with an additional Defence flight arriving into Perth. 
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
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Phone:  
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s22
 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
Blast at hospital in Gaza 

At roughly 4:00am Canberra time on 18 October, a blast at the Al-Ahli Arab hospital in 
Gaza City killed an estimated 500 people and injured hundreds more. International 
condemnation has been swift. The Israeli Defence Force has claimed the explosion is 
the result of a failed Palestinian Islamic Jihad rocket launch, rather than an Israeli strike. 
United States President Joe Biden has said, ‘Based on the information we've seen to 
date, it appears the result of an errant rocket fired by a terrorist group from Gaza’. 
Supporting Information 
Questions on Notice 
˜
No QoNs asked. 
Freedom of Information (FOI) Requests 
˜
On 18 October 2023, an individual sought access to records relating to the Deputy 
Prime Minister’s statement that Israel is acting within the rules of law. Defence is 
currently preparing a response. 
˜
On 16 October 2023, an individual sought access to records relating to legal advice 
regarding the fighting, bombing and blockade of Gaza in October 2023. Defence is 
currently preparing a response. 
˜
On 16 October 2023, an individual sought access to records relating to military export 
permits to Israel since 1 June 2022. Defence is currently preparing a response. 
˜
On 15 October 2023, an individual sought access to records relating to the provision of 
support to Israel since 7 October 2023, and war crimes against the citizens of Gaza. 
Defence is currently preparing a response. 
Recent Ministerial Comments  
˜
On 16 October, the Minister for Immigration, Citizenship and Multicultural Affairs made 
a statement to the House of Representatives regarding the Israel-Hamas conflict.  
˜
On 16 October the Assistant Minister for Defence and Veterans’ Affairs and the 
Republic, made a statement to the House of Representatives regarding the Israel-
Hamas conflict.  
˜
On 16 October, the Minister for Early Childhood Education and Minister for Youth 
made a statement to the House of Representatives regarding the Israel-Hamas conflict. 
˜
On 16 October, the Assistant Minister for Foreign Affairs made a statement to the 
House of Representatives regarding the Israel-Hamas conflict. 
˜
On 16 October, the Minister for Industry and Science made a speech to the House of 
Representatives regarding the Israel-Hamas conflict. 
˜
On 16 October, the Minister for Home Affairs and Cyber Security made a speech to the 
House of Representatives regarding the Israel-Hamas conflict.  
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
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& 
s22
 
 
Phone:  
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& 
s22
 
 
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Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
˜
On 16 October, the Prime Minister issued a motion to the House of Representatives 
regarding the Israel-Hamas Conflict.   
˜
On 16 October, the Foreign Minister made a joint media release with the Deputy Prime 
Minister and the Minister for Government Services regarding Defence support for 
assisted-departures for Australians in Israel.  
˜
On 16 October, the Foreign Minister made a speech to the Senate regarding Hamas 
attacks on Israel. 
˜
On 16 October, the Deputy Prime Minister issued a motion regarding the Hamas 
attacks on Israel and the ongoing conflict. 
Relevant Media Reporting  
˜
On 21 October, The West Australian (and syndicated outlets) reported Israel war: 
Repatriation flight with 99 evacuees from conflict zone touches down at Perth Airport,  
with 99 Jewish-Australians rescued from the conflict zone arriving at Perth 
International Airport on a military plane on Saturday afternoon., joining the almost 
2000 who have been evacuated to Australia. 
˜
On 20 October, Sky News reported 'Very relieved to be home': Emotional scenes at 
Sydney International Airport ahead of final repatriation flight to Australia from Israel, 
with The final repatriation flight from Israel will leave for Perth on Friday night, with the 
Australian government now turning its efforts to those in Lebanon amid heightened 
tensions in the Middle East.  
˜
On 17 October, Riotact reported RAAF takes over evacuation of Australians from Israel  
with The Royal Australian Air Force has now conducted four evacuation flights of 
Australian and other foreign nationals from Israel. 
˜
On 16 October, theGuardianreported that 255 Australian citizens travelled from Israel to 
Dubai. The passengers travelled on three charter flights, two Royal Australian Air Force planes 
and one privately contracted flight.
˜
On 16 Oct 2023, The Advertiser reported, 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 16 Oct 2023, The Newcastle Herald reported, Multiple Aussie evacuation flights due to 
leave Israel. There were fresh hopes for Australians stranded in Israel, after the 
Government announcing further evacuation flights.  
˜
On 15 Oct 2023, The West Australian (and syndicated papers) reported, 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. 
˜
On 15 Oct 2023, NCA Newswire reported, Aussies warned to leave. dŚĞĂƌƚŝĐůĞ mentions 
ADF-assisted flights out of Israel while also noting Minister Wong’s advice on Lebanon. 
 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
s47E(d)
& 
s22
 
 
Phone:  
s47E(d)
& 
s22
 
 
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ĞĨĞŶĐĞ&K/ϯϴϵͬϮϯͬϮϰ
OFFICIAL 
Supplementary Budget Estimates October 2023 
PDR No: SB23-000995 
Last updated: 24 October 2023 
 
 
 
 
 
                              Israel 
Key witness: Hugh Jeffrey, Air Vice Marshal Stephen Chappell 
Division: Vice Chief of the Defence Force Group  
 
PDR No: SB23-000995 
 
Prepared by: 
Cleared by Division Head:  
Commodore Don Dezentje  
Air Vice Marshal Stephen Chappell 
Director General 
Head Military Strategic Commitments 
Military Strategic Commitments 
 
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Mob:  
s22
 
 
Ph: 
s47E(d)
 
Date: 24 October 2023 
Date: 24 October 2023    
Consultation:  
Date: 23 October 2023 
Department of Foreign Affairs and Trade  
Mob: s22
      
s47E(d)
 
Acting Director 
Middle East and Africa Division 
Consultation:  
Date: 24 October 2023 
International Policy Division  
Mob: s22
 
Michelle Manson 
Acting Assistant Secretary Global Partners  
Cleared by CFO / DPG / DSR: N/A 
 
Cleared by: 
Date: 24 October 2023   
Air Vice Marshal Stephen Chappell 
Head Military Strategic Commitments 
Military Strategic Commitments 
Vice Chief of the Defence Force Group 
܈ I confirm that all information in this brief is suitable for public release 
 
 
Prepared By: 
Cleared By:  
 
Name: Commodore Donald Dezentje 
Name: Air Vice Marshal Stephen Chappell 
Position: Director General Military Strategic Commitments 
Position: Head Military Strategic Commitments 
Division: Military Strategic Commitments  
Group: Vice Chief of the Defence Force Group 
Phone:  
s47E(d)
& 
s22
 
 
Phone:  
s47E(d)
& 
s22
 
 
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