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Australian Federal Budget October 2022-23: Defence

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The Government is committed to ensuring the Australian Defence Force is well positioned to meet Australia’s security challenges over the next decade and beyond, with defence funding increasing beyond two per cent of GDP over the forward estimates - the highest level in decades.  In this Budget, the Government has earmarked an extra $213m over 5 years for additional assistance to Ukraine and has delivered on its election commitment to provide long-term support to Australian veterans and their families. 

Additional Assistance to Ukraine

The Government will provide $213.3 million over 5 years from 2021–22 to deliver additional assistance to Ukraine following the invasion by Russia. Funding includes:

  • $185.6 million over two years from 2021–22 in military assistance, including Bushmaster Protected Mobility Vehicles, armoured personnel carriers, lightweight towed howitzers and other military equipment, and a contribution to NATO’s Ukraine Comprehensive Assistance Package Trust Fund.
  • $18.4 million over 4 years from 2022–23 to allocate additional 3 year Temporary Humanitarian Concern Visas (subclass 786) to Ukrainians in 2022–23, and extend access to Medicare for a 12 month period for Ukrainians, including their immediate family members, who hold a Bridging Visa E.
  • $8.7 million in 2022–23 to assist Ukraine’s Border Guard Service to upgrade border management, improve cyber security and enhance border operations in the field.
  • $0.6 million in additional funding in 2022–23 for the Ukrainian Community and Settlement Support program to provide further support for the ongoing settlement and integration needs of those arriving in Australia from Ukraine.

This measure extends the 2022–23 March Budget measure titled Assistance to Ukraine.

Pacific Security and Engagement Initiatives

The Government will provide $147.5 million over 4 years from 2022–23 (and $23.9 million per year ongoing) to expand Australia’s engagement with Pacific partners and increase support to regional security priorities. Funding includes:

  • $45.7 million over two years from 2022–23 to support the Australian Federal Police’s deployment in Honiara through the Solomons’ International Assistance Force.
  • $32.0 million over 4 years from 2022–23 to expand the Australian Broadcasting Corporation’s regional transmission.
  • $30.4 million over 4 years from 2022–23 (and $14.5 million per year ongoing) to upgrade the aerial surveillance capability under the Pacific Maritime Security Program.
  • $22.3 million over 4 years from 2022–23 (and $6.4 million per year ongoing) to establish a network of Australian Border Force (ABF) officers across the Pacific.
  • $6.9 million over 4 years from 2022–23 to establish an Australia Pacific Defence School to provide enhanced integrated training for members of Pacific defence and security forces.
  • $5.4 million over 4 years from 2022–23 (and $1.5 million per year ongoing) to increase Australia’s diplomatic footprint in the Pacific.
  • $4.8 million over 4 years from 2022–23 (and $1.4 million per year ongoing) to enhance the capacity of the ABF College to provide training to Pacific security forces.

This measure delivers on the Government’s election commitments as published in the Plan for a Better Future.

Increasing the Totally and Permanently Incapacitated Payment for Veterans

The Government will provide $97.9 million over 4 years from 2022–23 (and $28.7 million per year ongoing) to increase the Special Rate of Disability Compensation Payment, Temporary Special Rate Payment, and the Special Rate Disability Pension by $1,000 per year.

This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.

Modernisation to Reduce Wait Times to Access Support and Services

The Government will provide $87.0 million over two years from 2022–23 to improve the administration of the claims processing system and improve veterans’ services.

This measure will enhance ICT systems, including MyService and myGov to better support veterans and their families. This measure also supports the development of business cases to replace and modernise at risk legacy ICT systems.

This measure supports the Government Response to the Royal Commission into Defence and Veteran Suicide Interim Report.

Veterans’ Wellbeing Package

The Government will provide $70.7 million over 4 years from 2022–23 (and $0.4 million per year ongoing) to support veterans and their families and improve veterans’ wellbeing. Funding includes:

  • $46.7 million over 4 years from 2022–23 to establish 8 new Veterans’ and Families’ Hubs (Hubs) and support work already underway for Hubs in 2 existing locations.
  • $24.0 million over 4 years from 2022–23 to improve veteran employment opportunities through supporting recognition of prior learning for training undertaken by Australian Defence Force personnel and supporting employers to attract and retain veterans.

This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.

Improving Home Ownership for Defence Personnel and Veterans

The Government will provide $46.2 million over 4 years from 2022–23 (and approximately $17.8 million per year ongoing) to expand access to the Defence Home Ownership Assistance Scheme to support Australian Defence Force (ADF) personnel and veterans to purchase their own home. The expansion will reduce the minimum service periods for subsidised mortgage interest payments and remove the current post separation timeframe to allow veterans to access the scheme any time after they leave the ADF.

This measure is estimated to increase receipts by $23.8 million over 4 years from 2022–23.

This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.

Support for Defence and Manufacturing Industries

The Government will provide $37.3 million over 3 years from 2022–23 to the Department of Defence to support the development of defence and fuel manufacturing industries. Funding includes:

  • $32.2 million over 3 years from 2022–23 to support the construction of the North Queensland Simulation Park in Townsville, Queensland to support the development and growth of defence industry in the region.
  • $5.1 million over 3 years from 2022–23 to support the development of sovereign capacity in renewable fuel manufacturing, particularly for the Australian Defence Force.

This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.

Expanding the Demand Driven Funding Model

The Government will provide $24.3 million over 4 years from 2022–23 (and $2.0 million per year ongoing) to improve the capacity of the Department of Veterans’ Affairs (DVA) to model increased demand for services and to support its operations. Funding includes:

  • $13.2 million in additional resources to DVA in 2022–23 to provide increased support to veterans who are having claims processed
  • $11.1 million to improve DVA’s demand modelling, including improvements to its data sharing arrangements with the Department of Defence and predictive and data analytics modelling capabilities.

This measure supports the Government Response to the Royal Commission into Defence and Veteran Suicide Interim Report.

Support for Veterans

The Government will provide $8.4 million over 4 years from 2022–23 to support Australian Defence Force personnel and veterans. Funding includes:

  • $4.7 million over 4 years from 2022–23 to support the development and trial of an online tool to assist Australian Defence Force personnel with their transition to civilian life
  • $3.6 million over two years from 2022–23 to support the Council of Australian Veterans to develop the Scott Palmer Services Centre (the Centre). The Centre will provide temporary accommodation in Darwin to deliver crisis services to veterans experiencing homelessness in the Northern Territory.
  • $0.1 million in 2022–23 to fund research into the history of soccer matches between Australia and New Zealand that were held between 1923 and 1954 (the Soccer Ashes).

This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.

Legislative Pathway to Support Veterans and Families

The Government will provide $9.5 million over two years from 2022–23 to develop, and consult on, a pathway to simplify and harmonise veteran rehabilitation and compensation legislation.  

This measure supports the Government Response to the Royal Commission into Defence and Veteran Suicide Interim Report.

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