2016 DEFENCE WHITE PAPER﻿

3`` Table of Contents
Minister’s Introduction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9Executive Summary. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
Strategy. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
Australia’s strategic outlook.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 14
Australia’s defence strategy .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
Capability.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
A more capable, agile and potent future force.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 18
Australian defence industry and innovation.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 20
Shipbuilding .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 21
Defence posture – more active and internationally engaged .  .  .  .  .  .  .  .  . 21
International engagement.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22
Defence preparedness .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22
People.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 23
Resources.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 24
Reform. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 24
Funding.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 24
Implementation .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 25
Chapter One: The Government’s Approach to Defence.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 29
The purpose of this Defence White Paper.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 29
Why now?.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 30
Managing strategic risk.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 32
Chapter Two: Strategic Outlook.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 39
Australia’s security environment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

2016 DEFENCE WHITE PAPER

4

TABLE OF CONTENTS

The United States and China. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 41
The rules-based global order.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 44
The threat of terrorism and foreign terrorist fighters.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 46
State fragility.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 48
Military modernisation. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 49
Cyber and space .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 51
Regional security environments.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 53
Australia’s borders and offshore territories .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 53
Our immediate neighbourhood.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 54
South East Asia .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 56
Indonesia.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 59
North Asia.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 60
South Asia and the Indian Ocean Rim.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 61
The Middle East.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 63
Weapons of Mass Destruction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 64
Chapter Three: Australia’s Defence Strategy. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 67
Australia’s Strategic Defence Framework.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 68
Strategic Defence Interests .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 68
A secure, resilient Australia, with secure northern approaches andproximate sea lines of communication.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 68
A secure nearer region, encompassing maritime South East Asiaand the South Pacific.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 69
A stable Indo-Pacific region and a rules-based global order .  .  .  .  .  .  .  .  . 70
Strategic Defence Objectives.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 71
Deter, deny and defeat attacks on or threats to Australia and its national
interests, and northern approaches.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 71﻿5Make effective military contributions to support the security of maritime
South East Asia and support the governments of Papua New Guinea,
Timor-Leste and of Pacific Island Countries to build and strengthen
their security .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 74
Contribute military capabilities to coalition operations that support
Australia’s interests in a rules-based global order.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 75
Implications for force structure and force posture.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 77
Chapter Four: The Future Australian Defence Force .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 83
Designing the future force.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 84
Capability priorities.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 86
Intelligence, Surveillance and Reconnaissance, Space, Electronic
Warfare, and Cyber Security.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 86
Maritime Operations and Anti-Submarine Warfare Forces.  .  .  .  .  .  .  .  .  .  . 89
Strike and Air Combat .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 94
Land Combat and Amphibious Warfare.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 97
Key Enablers .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 100
Air and Sea Lift. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 106
Industry, innovation, research and development.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 108
A new approach to Australian defence industry policy.  .  .  .  .  .  .  .  .  .  .  .  . 108
A new approach to defence innovation .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 111
Shipbuilding .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 113
Chapter Five: Positioning Defence for Tomorrow’s Challenges.  .  .  .  .  .  .  .  .  .  . 117
International engagement. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 117
International defence relationships.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 120
The Australia-United States Alliance.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 121
New Zealand .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 124
Indonesia.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 125

2016 DEFENCE WHITE PAPER

6

TABLE OF CONTENTS

The South Pacific.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 126
Timor-Leste .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 128
South East Asia .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 128
North Asia.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 132
South Asia.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 134
Global relationships.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 135
Defence preparedness .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 140
Current operations.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 141
Chapter Six: People. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 145
Growing the integrated Defence workforce.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 146
Permanent Australian Defence Force. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 146
Reserves .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 148
Australian Public Service . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 149
Recruiting the people we need.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 150
Developing our people. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 152
Retaining our people.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 153
Defence culture.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 154
Looking after our people .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 156
The Defence community .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 159
Delivering the future workforce. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 160
Chapter Seven: Reform of Defence .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 165
The First Principles Review – The Government’s reform program.  .  .  .  .  . 165
A strong strategic centre. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 168
Capability development life cycle.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 170
Corporate and military enablers .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 172
Implementing the First Principles Review. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 174

﻿7

Chapter Eight: Funding Defence .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 177
The Government’s plan for funding Defence.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 177
The funding model .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 177
How will Defence funding be spent? .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 181
Budgeting in Defence .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 182
Chapter Nine: Implementing this Defence White Paper. .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 185

2016 DEFENCE WHITE PAPER

8

﻿

9

`` Minister’s Introduction
The 2016 Defence White Paper represents the Government’s firm commitment
to the Australian people that we will keep our nation safe and protect our way oflife for future generations. This is a fundamental responsibility of the AustralianGovernment; the safety and security of the Australian people and the defence of
our territory and interests is our first and abiding priority.
The 2016 Defence White Paper is the most rigorous and comprehensive inAustralia’s history – it is the culmination of a thorough process of review andassessment of Australia’s security environment spanning the next 20 years.
Over the next two decades, we face greater security uncertainty and complexity,
globally. This White Paper, together with the accompanying 2016 Integrated
Investment Program and 2016 Defence Industry Policy Statement, sets out theGovernment’s vision to enhance Australia’s defence capability, deepen ourinternational security partnerships and collaborate with defence industry andscience and technology research partners in support of our nation’s security.
The Defence White Paper presents the strong strategic argument for Australia’s
future defence based on seizing opportunities while managing strategic
challenges. An important part of the Government’s strategy is to continue tostrengthen our alliance with the United States, as well as our other regional
and international partnerships, to meet shared security challenges such as thepervasive threat of terrorism.
We have been careful in this White Paper to match our strategy and capability
plans with appropriate resources. This is the first Defence White Paper tobe fully costed, with external private sector assurance of the White Paper’s
investment plans. The Government will fund the White Paper goals by
increasing the defence budget to two per cent of Australia’s Gross Domestic
Product by 2020–21, providing an unprecedented investment in Australia’s
defence capability of approximately $195 billion over ten years.

2016 DEFENCE WHITE PAPER

10

MINISTER’S INTRODUCTION

The Australian Defence Force is already highly capable and respected forits professionalism world-wide. Our challenge is to maintain our capability
edge and prepare for the more complex and high-tech conflicts of the future.
To achieve this, the Government has prioritised the development of a morecapable, agile and potent force structure. We will invest in modern space andcyber capabilities and the infrastructure, information and communications
systems that support defence capability. Australian Defence Force personnel
will continue to be appropriately trained, equipped and supported to undertake
their diverse, critical roles.
The 2016 Defence White Paper sets out the most ambitious plan to regenerate
the Royal Australian Navy since the Second World War. The White Paper
reaffirms the Government’s commitment to a strong, internationally competitiveand sustainable Australian naval shipbuilding industry.
Key to the successful delivery and sustainment of our enhanced defence
capabilities will be a new level of collaboration with Australian defence industry
and science and technology research organisations. Positive new opportunities
for enhanced collaboration and partnering between Defence and Australian
defence industry will allow us to harness the leading-edge Australian innovationand technological expertise that can provide unique capability advantages
for the Australian Defence Force. The Defence Industry Policy Statement
accompanying this White Paper transforms the framework for effective
engagement between Defence and defence industry.
The Defence organisation is undergoing a once in a generation level of change
through implementation of reforms recommended by the First Principles Reviewof Defence. Successful implementation of this significant reform program,including a genuine commitment to effective cultural reform across Defence,
will be critical to realising the Government’s White Paper goals. Defence has
made good progress in implementing cultural change and there is more to be
done. A more diverse and inclusive workplace, with a focus on gender equality
in professional development and progression opportunities, will be important toenhance the Defence organisation’s capability and improve its standing as an
employer of choice within the Australian community.

﻿11

Our highly dynamic and interconnected world enables the Government toadopt an active and engaged approach in ensuring security and defence policy
remains relevant and responsive. We will review our policy to meet the pace ofchange, through regular national security statements and defence updates to
the Parliament. We will also ensure the availability and accessibility of current
information on Defence’s capability and industry plans and programs.
I am optimistic about Australia’s future prosperity and security; the Government
will continue to provide the direction and resources to protect and promote
our nation and its interests, including through an enhanced capacity to shape
Australia’s security environment. I look forward to continuing an open dialogue
with the Australian people as we implement this important White Paper.

Marise Payne
Minister for Defence

2016 DEFENCE WHITE PAPER

12

﻿

13

`` Executive Summary
This Defence White Paper explains how the Government is investing inAustralia’s defence capabilities to strengthen Australia’s security in the more
complex strategic environment Australia will face in the years ahead.
The Government’s policy is to align Australia’s defence strategy withcapabilities and resourcing, grow our international defence partnerships to
support shared security interests and invest in the partnership with Australian
defence industry to develop innovative technologies and deliver essential
capabilities.
Because decisions about our defence capabilities taken now will determine ourcapacity to manage the challenges of the future, it is important that defence
decision making and planning take a clear long-term view. This Defence
White Paper looks out to 2035 to identify where and what sorts of security
challenges are likely to arise and what capabilities Defence – the Australian
Defence Force (ADF) and the Department of Defence – will need to meet them.
While Australia has effective defence capabilities to draw on to meet current
security challenges, significant under-investment in Defence in the past andthe deferral of decisions about future major capabilities need to be fixed.
Defence’s capability plans have become disconnected from defence strategy
and resources, delaying important investments in Australia’s future security andfrustrating Australian defence industry.
In April 2014, the Government announced that it would deliver a new Defence
White Paper to align Defence’s strategy, capability and resources.
This Defence White Paper is based on a comprehensive review of Australia’s
strategic environment, including the changes underway in the Indo-Pacificregion, encompassing the Indian Ocean to the Pacific Ocean, and across theworld and the implications of these changes for Australia and for Defence. This
includes an assessment of the different challenges created by the complex

2016 DEFENCE WHITE PAPER

14

EXECUTIVE SUMMARY

dynamics between states and the ongoing threat posed by non-state actors,
including terrorists that seek to launch attacks internationally, regionally andwithin Australia.
A fully-costed Force Structure Review underpins the Defence White Paper.
The Force Structure Review assessed Defence’s future capability needs anddeveloped the force structure required to achieve Australia’s defence objectives.
An Expert Panel supported the development of the Defence White Paper
together with a comprehensive consultation process which incorporated input
from across Government, Australian defence industry, the Australian public, theUnited States, New Zealand and our other international partners.
The Defence White Paper sets out in three sections the elements of theGovernment’s defence policy in response to this comprehensive analysis andconsideration: Strategy, Capability, and Resources.

Strategy
Australia’s strategic outlook
Australia and the Indo-Pacific region are in a period of significant economictransformation, leading to greater opportunities for prosperity and development.
Rising incomes and living standards across the Indo-Pacific are generating
increased demand for goods and services. By 2050, almost half the world’s
economic output is expected to come from the Indo-Pacific. This presents
opportunities to increase Australia’s economy and security as the Indo-Pacificregion grows in economic and strategic weight.
The growing prosperity of the Indo-Pacific and the rules-based global orderon which Australia relies for open access to our trading partners are based on
the maintenance of peace and stability. Over the last 70 years that peace andstability has been underpinned by a strong United States presence in our region
and globally as well as active engagement by regional states in building arules-based order.

Strategy

15

Australia’s strategic outlook to 2035 also includes a number of challenges
which we need to prepare for. While there is no more than a remote prospectof a military attack by another country on Australian territory in the foreseeable
future, our strategic planning is not limited to defending our borders. Our
planning recognises the regional and global nature of Australia’s strategicinterests and the different sets of challenges created by the behaviours ofcountries and non-state actors such as terrorists.
The roles of the United States and China and the relationship between them willcontinue to be the most strategically important factors in the Indo-Pacific region
to 2035. A strong and deep alliance is at the core of Australia’s security anddefence planning. The United States will remain the pre-eminent global military
power and will continue to be Australia’s most important strategic partner.
Through this Defence White Paper, Australia will seek to broaden and deepen
our alliance with the United States, including by supporting its critical role inunderpinning security in our region through the continued rebalance of UnitedStates military forces.
The stability of the rules-based global order is essential for Australia’s security
and prosperity. A rules-based global order means a shared commitment by
all countries to conduct their activities in accordance with agreed rules which
evolve over time, such as international law and regional security arrangements.
This shared commitment has become even more important with growinginterconnectivity, which means that events across the world have the potential
to affect Australia’s security and prosperity. The Government is committed
to making practical and effective military contributions to global security
operations to maintain the rules-based order and address shared security
challenges where it is in our interest to do so.
Australians will continue to be threatened by terrorism at home and abroad. The
spread of extremism and violence will be worsened by foreign terrorist fighters
returning from conflicts to their countries of origin, including Australia andother countries in our region, and terrorist attacks by individuals inspired andradicalised by extremist messages. Over the next 20 years, it can be expected2016 DEFENCE WHITE PAPER

16

EXECUTIVE SUMMARYSECTION ONE STRATEGY

that terrorism will continue to evolve in ways which threaten Australia’sinterests.
Australia is one of the most successful and most harmonious multiculturalsocieties in the world. The highest priority of the Government is to keep theAustralian community safe. To do this, the Government is working with ourinternational partners and with Australian state and territory governments. The
Government is committed to contributing to international efforts to meet thethreat of terrorism, including maintaining Australia’s significant contribution
to the United States-led coalition to disrupt, degrade and ultimately defeat theterrorist threat from Daesh. Within Australia, Defence will provide importantcapabilities as part of our national counter-terrorism arrangements.
Instability in our immediate region could have strategic consequences forAustralia and we will continue to take a leading role in providing humanitarian andsecurity assistance where required. Within the South Pacific, variable economic
growth, crime and social, governance and climate change challenges will all
contribute to uneven progress and may lead to instability in some countries.
Maintaining Australia’s technological edge and capability superiority overpotential adversaries is an essential element of our strategic planning. The
capability superiority that Australia has traditionally maintained in the wider
region will be challenged by military modernisation. Over the next 20 years alarger number of regional forces will be able to operate at greater range and withmore precision than ever before. The growth in the capability of China’s militaryforces is the most significant example of regional military modernisation, butother countries are also undertaking extensive modernisation programs.
New and complex non-geographic security threats in cyberspace and space
will be an important part of our future security environment. The cyber threat
to Australia is growing. Cyber attacks are a real and present threat to the ADF’s
warfighting ability as well as to other government agencies and other sectors ofAustralia’s economy and critical infrastructure.

Strategy

17

Australia’s defence strategy

Our most basic Strategic Defence Interest is a secure, resilient Australia. The
first Strategic Defence Objective is to deter, deny and defeat any attempt by ahostile country or non-state actor to attack, threaten or coerce Australia. The
Government is providing Defence with the capability and resources it needs tobe able to independently and decisively respond to military threats, including
incursions into Australia’s air, sea and northern approaches.
Our second Strategic Defence Interest is in a secure nearer region,encompassing maritime South East Asia and the South Pacific. The second
Strategic Defence Objective is to support the security of maritime South East
Asia and support the governments of Papua New Guinea, Timor-Leste and ofPacific Island Countries to build and strengthen their security. In South East
Asia, Defence will strengthen its engagement, including helping to build theeffectiveness of regional operations to address shared security challenges,
and the ADF will have increased capabilities to make contributions to any suchoperations. The Government will continue its commitment to strengthened
regional security architectures that support transparency and cooperation.
Australia will continue to seek to be the principal security partner for Papua New
Guinea, Timor-Leste and Pacific Island Countries in the South Pacific.
Our third Strategic Defence Interest is in a stable Indo-Pacific region andrules-based global order which supports our interests. The third Strategic
Defence Objective is to provide meaningful contributions to global responses

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGYThe Government’s defence strategy will ensure that Defence is prepared torespond if the Government decides the pursuit of Australia’s interests requires
the use of military force. This strategy sets out three Strategic Defence Interests
which are of fundamental significance for strategic defence planning. To provide
more detailed guidance for planning, each Strategic Defence Interest is linked
to a Strategic Defence Objective which sets out the activities the Government
expects Defence to be able to conduct if it decides to use military power insupport of the Strategic Defence Interests.

18

EXECUTIVE SUMMARY

to address threats to the rules-based global order which threaten Australia andits interests. Australia will work closely with our ally the United States and otherinternational partners to play an important role in coalition operations whereverAustralia’s interests are engaged.
Recognising the interconnected nature of the global environment and the factthat Australia’s security and prosperity is directly affected by events outside
our region, all three Strategic Defence Objectives will guide force structure andforce posture decision-making in, and flowing from, this White Paper.

Capability
A more capable, agile and potent future force
The Government will ensure Australia maintains a regionally superior ADF
with the highest levels of military capability and scientific and technologicalsophistication. The future force will be more capable, agile and potent. The
future force will be more capable of conducting independent combat operations
to defend Australia and protect our interests in our immediate region. This force
will also enhance Australia’s ability to contribute to global coalition operations.
More emphasis will be placed on the joint force, bringing together different
capabilities so the ADF can apply more force more rapidly and more effectively
when required.
To provide our forces with comprehensive situational awareness, theGovernment is strengthening Defence’s intelligence, surveillance andreconnaissance capabilities. Defence’s imagery and targeting capacity will
be enhanced through greater access to strengthened analytical capability,
enhanced support and space-based capabilities.
The Government will strengthen the Defence cyber workforce and systems todeter and defend against the threat of cyber attack.

Capability

19

Modernising our maritime capabilities will be a key focus. The submarine force
will be increased from 6 to 12 regionally superior submarines with a high degreeof interoperability with the United States. The surface naval capability will include
three Hobart Class Air Warfare Destroyers and a new class of nine future frigates
supported by new replenishment vessels. Defence’s ability to contribute toborder protection will be enhanced with the introduction of more capable offshore
patrol vessels, new manned and unmanned aircraft and a new large-hulled
multi-purpose patrol vessel, the Australian Defence Vessel Ocean Protector.
The ADF will be equipped with a potent air combat and air strike capability
centred around the F-35A Lightning II and the E/A-18G Growler that builds
on its current fleet of F/A-18 Super Hornet, Wedgetail Airborne Early Warning
and Control and air-to-air refuelling aircraft. More air-to-air refuellers will beacquired to support future combat, surveillance and transport aircraft.
The land force will be equipped with new personal equipment for soldiers anda new generation of armoured combat reconnaissance and infantry fighting
vehicles, as well as new combat engineering equipment. A new long-range
rocket system will further enhance fire power, and armed medium-altitude
unmanned aircraft will enhance surveillance and protection for the land force.
The ADF’s capacity for amphibious operations will be strengthened by the
introduction of new weapons and equipment for our amphibious ships. New
light helicopters will be acquired to support Special Forces operations.
To ensure the ADF is able to perform at the highest level of effectiveness, theGovernment will fix the underinvestment in the vital enabling capabilities thatbind military capabilities together. The Government will upgrade ADF bases
and logistics systems, including fuel and explosive ordnance facilities, andupgrade training and testing facilities, health services and information andcommunications technology.
The ADF’s air lift capability will be increased to comprise 8 heavy lift C-17A
Globemasters with additional heavy lift aircraft to be considered in the longer
term, 12 upgraded C-130J Hercules, 10 C-27J Spartans and 10 CH-47F2016 DEFENCE WHITE PAPER

20

EXECUTIVE SUMMARY

Chinook helicopters. Sea lift capability will be strengthened by extending thelife of and upgrading our current logistics ship.
With this Defence White Paper the Government has released for the first time a
10-year 2016 Integrated Investment Program, a detailed capability investment
plan for the future force covering all of its major elements. It includes major
acquisitions of new weapons, platforms and systems and investment in
information and communications technology, infrastructure and the enabling
workforce. The Integrated Investment Program is underpinned by a rigorous
cost assurance program undertaken by private sector experts to provide higher
levels of confidence that our plans are affordable.

Australian defence industry and innovation
The Government recognises the vital contribution to defence capability
provided by Australian defence industry and science and technology researchorganisations. Australian defence industry provides a range of critical direct
and support services and is a fundamental input to Defence capability.
Innovation drives the development of defence capability. Defence, Australian
defence industry and our national research community have a proven record ofcollaborating on leading-edge innovation that enhances the ADF’s capability.
This includes developing new technologies and transforming the maintenanceof Defence capabilities.
The Government is committed to forming a new partnership with Australian
defence industry to ensure Defence gets the equipment, systems and personnel
it needs on time and on budget. The Government will strengthen Defence’s
collaboration with Australian defence industry, cut red tape and invest in
new technologies to help build Australian defence industry competitiveness,create economic opportunity for Australians and support our nation’s defence.
The Government will better link our capability needs with Australian defence
industry’s capacity to deliver, and ensure that the decisions we make about
defence capability take proper account of Australian defence industry.

Capability

21With this White Paper the Government is releasing a new 2016 Defence Industry
Policy Statement focused on maximising the defence capability necessary toachieve the Government’s defence strategy. Fragmentation of current Australian
defence industry programs will be addressed by consolidating numerous
industry and innovation initiatives into two key initiatives that have clear andmeasurable outcomes for defence capability. The Government will streamline
its approach to tendering and contracting to reduce red tape and make it easierfor Australian defence industry to support Defence.

Shipbuilding
The Government’s shipbuilding plans are based on long-term continuous builds
of surface warships, commencing with construction in Australia of offshore
patrol vessels from 2018 and future frigates from 2020. These plans willtransform Australia’s naval shipbuilding industry, generate significant economic
growth, sustain Australian jobs over the coming decades and assure thelong-term future of this key Australian defence industry.
The Government will ensure that the future submarine project provides aregionally superior capability and value-for-money for Australian taxpayers
while maximising the involvement of Australian defence industry. The
competitive evaluation process, which is underway, will provide a clear pathway
for Australian defence industry to maximise its involvement in the project,
without compromising capability, cost or the project schedule. More detail on
the Government’s shipbuilding plans are set out in Chapter Four.

Defence posture – more active and internationally engaged
The Government will reshape Defence’s posture to ensure Defence is best
positioned to protect Australia’s security and prosperity. This includes
strengthening Defence’s international engagement and international defence
relationships and arrangements, enhancing the ADF’s preparedness andinvesting in upgrades to the ADF’s basing and infrastructure.

2016 DEFENCE WHITE PAPER

22

EXECUTIVE SUMMARY

International engagement
As Australia’s strategic environment becomes more complex it is importantto further develop our international partnerships including with our allies
the United States and New Zealand, and with Japan, Indonesia, India,
Singapore, the Republic of Korea, China and other key partners. Defence’s
international engagement is an important part of the Government’s approachto building international partnerships, which also includes trade, diplomacy,
foreign aid and economic capacity building in a range of government andnon-government sectors.
Defence will increase its investment in international engagement over the next
20 years to help reduce the risk of military confrontation, build interoperability
with key partners and improve the coordination of responses to sharedinternational challenges including terrorism and humanitarian assistance anddisaster relief.
International engagement will become an integrated core function acrossthe entire Defence portfolio, aligned with the Strategic Defence Objectives.
The Defence Cooperation Program, currently providing defence assistanceto 28 countries, will be enhanced to build the confidence and capacity of
our important regional partners. The ADF will participate more regularly inmultinational exercises and the overseas presence of Defence personnel will
be gradually increased over time.

Defence preparedness
Higher levels of Defence preparedness will be required to support increased
ADF activity in the region, while maintaining the ADF’s ability to makemeaningful contributions to global security operations where our interests areengaged. The Government has directed an increase in the ADF’s preparedness
level, based on raising its overall capability and improving its sustainability on
operations. More funding is being provided to ensure that the ADF has greater
capacity and agility to respond to strategic risks.

Capability

23

PeopleThe quality of our people is the foundation of Defence’s capability, effectivenessand reputation. Defence is an integrated workforce with military and civilian
personnel working together across the spectrum of Defence activities. All
parts of the Defence workforce will need to upgrade their skills as part ofbuilding a more capable, agile and potent future force. To meet the demandsof the higher‑technology future force set out in this Defence White Paper,
the Government will undertake the largest single rebalance of the Defence
workforce in a generation.
The Permanent ADF workforce will grow to around 62,400 over the next decadeto return it to its largest size since 1993. A new contemporary workforce
management model will increase the ability of ADF members to move between
the Permanent ADF and Reserves to better meet their individual circumstancesand best harness their skills and expertise. This will provide ADF members withmore opportunities to contribute to Australia’s defence.
This Defence White Paper provides for a future Australian Public Service(APS) workforce of around 18,200 Full Time Staff Equivalent (FTE), down from22,300 FTE in June 2012. This workforce will be rebalanced with around 1,200
new APS positions in areas critical to Defence’s future capability, including
intelligence, cyber security and space-based capabilities, offset by ongoing
reductions elsewhere in the APS workforce.
The strength of Defence’s leadership, and its ability to adapt and embrace amore diverse and inclusive culture, will be critical to attracting and retaining
the workforce it needs for the future. Gender equality and increasing female
participation in the Defence workforce and in senior leadership roles isfundamental to achieving Defence capability now and into the future. Defence
has confronted the need for behavioural and attitudinal change with the releasein 2012 of Pathway to Change: Evolving Defence Culture. The cultural change
program continues to strengthen Defence’s capability through creating anorganisational climate focused on diversity and inclusion that will attract thebest people for the job. Further details can be found in Chapter Six.

2016 DEFENCE WHITE PAPER

24

EXECUTIVE SUMMARYThe Government is committed to investing in better health care systems for
ADF members, including more medical personnel, and we will improve thelinks between Defence and the Department of Veterans’ Affairs to better support
current and former ADF members. Additional resources will provide more
specialist mental health care, including for ADF Reservists and their families.

Resources
ReformIn August 2014, the Government commissioned the First Principles Review
to ensure that Defence is appropriately structured and organised to meetthe challenges of the future. Implementing the Review will ensure Defence
becomes an integrated organisation driven by a stronger strategic centre
rather than a federation of separate parts. The strategic centre will set priorities,
manage resources and be responsible for steering the whole organisation
to implement the Government’s defence plans. The reforms are essential
to delivering the Government’s plans to implement the substantial force
modernisation program set out in this Defence White Paper.

Funding
Central to the development of this Defence White Paper has been the
Government’s direction to align defence strategy, capability and resources.
Addressing the growing gap between planning and resourcing by increasing
defence funding will provide a sustainable basis for future investment andprocurement decisions.
To deliver the capabilities set out in this Defence White Paper, the Government’s
long-term funding commitment provides a new 10-year Defence budget model
to 2025–26, over which period an additional $29.9 billion will be provided
to Defence. Under this new budget model, the Defence budget will grow to$42.4 billion in 2020–21, reaching two per cent of Australia’s Gross Domestic
Product (GDP) based on current projections.

Resources25

The long-term nature of defence force structure planning, acquisitions andsustainment means this long-term funding commitment is critical to executing
the Government’s plans for Defence. The 10-year funding model is based on a
fully costed future force structure, including its equipment, infrastructure andworkforce, with external validation of those costs by private sector experts. Thisis the first time this has been done for a Defence White Paper. This programof external validation has provided assurance that our defence strategy isaffordable and achievable within the budget that has been allocated.

Implementation
Implementation of this Defence White Paper will be driven by Defence’s
stronger strategic centre. The Minister for Defence will consider a formal
strategic assessment of the alignment between Defence’s strategy, capability
and resources every six months to drive the Government’s annual Defence
budgeting and priority setting. These biannual reviews of our defence
strategy and plans, including First Principles Review and cultural reform
implementation, will ensure the Government and Defence have the flexibility to
seize opportunities and manage risks as our strategic circumstances change.

2016 DEFENCE WHITE PAPER

26'

SECTION ONE
Strategy
CHAPTER ONE

The Government's Approach to Defence

CHAPTER TWO

Strategic Outlook

CHAPTER THREE

Australia's Defence Strategy

28

1

29

The purpose of this Defence White Paper
1.1

This Defence White Paper explains how the Government is strengthening
Australia’s defence capabilities to meet the challenges of the more
complex strategic environment Australia is likely to face in the years
ahead. The Government’s plan is for a more capable, agile and potent
future force that has greater capacity to respond to strategic risk
wherever Australia’s defence interests are engaged.

1.2This Defence White Paper provides the right balance between investment
in modern warfighting capabilities and the critical enabling infrastructureand services needed to support and maximise the effectiveness of thejoint force. To support these decisions, the Government has determinedthat substantial new investment is required to ensure Defence is fully
equipped for the challenges of the future.

1.3

Because decisions made today determine our capacity to manage thechallenges of the future, it is important that defence decision-making
and planning takes a clear long-term view. Some of the new capabilities
discussed in this White Paper will not come into service until the next
decade and beyond, and some will still be operating beyond the middleof this century. The decisions in this White Paper are the culminationof a rigorous process of review and assessment of Australia’s future
security environment spanning the next 20 years.

1.4

The White Paper explains how the Government will ensure that Australia
has the critical industrial, scientific, technological and innovation
capabilities outside of Defence that will be necessary to underpin

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY`` Chapter One: The Government’s
Approach to Defence

30

CHAPTER ONE: THE GOVERNMENT’S APPROACH TO DEFENCESECTION ONE STRATEGY

Australia’s security. A sustainable national support base that enables
and sustains Defence and adds to Australia’s resilience will befundamental to our future security and prosperity.
1.5

The Government will meet its commitment to increasing defence spending
to two per cent of GDP by 2023–24, and will reach this target in 2020–21.
The Government’s plans for new investment have been fully costed andsubjected to the most comprehensive private sector cost assurance of any
Defence White Paper. The plans set out here are affordable and achievable
within the budget that Defence has been allocated.

Why now?
1.6

Events during the three years since the release of the last Defence White
Paper in 2013 demonstrate how rapidly Australia’s security environment
can change. The relationship between the United States and China
continues to evolve and will be fundamental to our future strategic
circumstances. Territorial disputes between claimants in the East China
and South China Seas have created uncertainty and tension in our region.
The Democratic People’s Republic of Korea continues to be a source ofinstability. State fragility has helped enable the rise of Daesh (also known
as Islamic State of Iraq and the Levant) terrorists in the Middle East,
incidents across the world have demonstrated the pervasive nature of thethreat of terrorism, and a violation of international law led to the deaths ofAustralians in the skies over Ukraine. Some matters that previous Defence
White Papers have described as longer-term issues, such as the impactof military modernisation in our region, now fall to this White Paper to
respond to.

1.7

While Australia has a range of very effective defence capabilities to draw
on to meet current security challenges, significant under investment andthe deferral of decisions about future major capabilities need to be fixed.
Defence’s capability plans have become disconnected from defenceWhy now?

31

strategy and budget, delaying important investments in Australia’s future
security and frustrating Australian defence industry.
Defence’s capability planning will be reformed by implementing
the recommendations of the First Principles Review to establish asingle end-to-end capability development function within Defence.
The capability planning process will be strengthened through theintroduction of strong contestability to ensure that the acquisition of
military capability is aligned with strategy and resources and is deliveredon time and on budget.

1.9

In the past, the capability investment planning process has been too
heavily focused on individual military platforms such as ships, aircraft
and vehicles. This has often been at the expense of funding the vital
enabling and integrating systems that allow the ADF to bring capability
elements together to deliver more potent and lethal joint combat effects.
Enabling and integrating systems – such as intelligence, surveillance
and reconnaissance systems, information and communications
technology, facilities and workforce – ensure we get maximum
performance from the ADF’s military platforms.

1.10 In line with the recommendations of the First Principles Review, thisDefence White Paper and accompanying Integrated Investment Programprovide a single, coherent vision of Defence’s future investment
strategies across the major elements that make up defence capability.
The Integrated Investment Program brings together, for the first time,the major capability-related investments, including weapons systems
and platforms, facilities such as military bases, information andcommunications technology, and workforce. This will ensure that the fullcost of all major defence capability proposals are managed within one
investment portfolio. The fully costed Integrated Investment Program,coupled with the Government’s long-term funding commitment toincrease Defence spending to two per cent of GDP, will give much neededclarity and certainty to Defence in implementing this White Paper.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

1.8

32

CHAPTER ONE: THE GOVERNMENT’S APPROACH TO DEFENCESECTION ONE STRATEGYManaging strategic risk
1.11 Australia is one of the most prosperous and secure countries in theworld. Our economy will continue to benefit from the economictransformation in the Indo-Pacific. There is no more than a remotechance of a military attack on Australian territory by another country.
This does not mean that the Government can be complacent about our
responsibility to protect Australia and its national interests. Australia’s
strategic circumstances can change quickly, and we must be prepared torespond quickly and effectively when our interests are threatened, either
by state or non-state actors.
1.12 Competition between countries and major powers trying to promote
their interests outside of the established rules-based global order have
implications for free and open trade and can lead to uncertainty andtension, raising the risk of military confrontation. The 13 November
2015 attacks in Paris, along with the international urban attacks of2015 and early 2016 in cities around the world, have demonstrated thatterrorist groups continue to have the willingness and ability to launch
attacks anywhere, including in Western countries such as Australia.
1.13 We can expect greater uncertainty in Australia’s strategic environment
over the next two decades as a consequence of: the changes in the
distribution of power in the Indo-Pacific and globally; the continuing
threat of terrorism from groups like Daesh and from foreign terrorist
fighters; the modernisation of regional military capabilities; theintroduction of new military technologies such as cyber systems; andthe proliferation of weapons of mass destruction and ballistic missile
technology. Chapter Two discusses the strategic outlook that forms the
backdrop for our future plans for Defence.
1.14 Chapter Three sets out Australia’s Defence Strategy, based on a new
strategic framework which sets out three Strategic Defence Interests.

Managing strategic risk

33

1.16 We cannot effectively protect Australia if we do not have a securenearer region, encompassing maritime South East Asia andSouth Pacific (comprising Papua New Guinea, Timor-Leste andPacific Island Countries), our second Strategic Defence Interest.
Australia must play a leadership role in our immediate neighbourhood
spanning Papua New Guinea, Timor-Leste and Pacific Island Countries
in support of our national interests. We must strengthen our defence
engagement with regional countries with interests in the security ofmaritime South East Asia, particularly Indonesia, including helping
to build the effectiveness of regional operations to address sharedsecurity challenges, including the threat of terrorism, and increasing thecapability of the ADF to make contributions to any such operations.
1.17 Australia has global interests across a broad range of strategic,
economic and foreign policy issues. Our security and prosperity depend
on a stable Indo-Pacific region and a rules-based global orderin which power is not misused, and threats to peace and stability fromtensions between countries can be managed through negotiations basedon international law and the threat from terrorism can be addressedby concerted international action. This is our third Strategic Defence
Interest. In the Indo-Pacific region Australia must continue to work with
the United States and regional partners to make a positive contribution
to security and stability in ways that advance our national interests.
Australia must continue to play its part in responding to challenges to
the global rules-based order beyond the Indo-Pacific, as Australia iscurrently doing in Iraq, Syria, Afghanistan and in maritime security andpeacekeeping operations in the Middle East and Africa.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

1.15 A secure, resilient Australia, with secure northern approaches
and proximate sea lines of communication is Australia’s first
Strategic Defence Interest. The self-reliant defence of Australia’s territory
remains the highest priority for this Government, and protecting Australia
from the threat of armed attack or coercion is the primary mission for
Defence.

SECTION ONE STRATEGY34

CHAPTER ONE: THE GOVERNMENT’S APPROACH TO DEFENCE

1.18 The new strategic framework set out in Chapter Three explains why thesethree Strategic Defence Interests are of significance for Australia, what
they mean for the roles the Government expects the ADF to undertakeand the shape of the future Defence force structure.
1.19 In line with the Strategic Defence Interests, the Government hasdetermined that Defence must be better prepared to meet a broader
range of security challenges in the coming years. Defence must be
prepared to: defend our territory, borders and sovereign rights in
our Exclusive Economic Zone; provide domestic counter-terrorism
support when necessary and contribute to domestic disaster relief
and other peacetime national support to the states and territories;
contribute to regional stability and global security; manage the security
consequences for Australia of non-geographic threats in cyberspace
and in space; and undertake humanitarian assistance and disaster relief
operations in the Indo-Pacific and beyond.
1.20 Defence must have the capability, agility and potency required to meetthis broad range of contingencies. Australia cannot afford to equip, train
and prepare our military forces solely for the unlikely event of a major
attack on our territory. This would leave Defence much less capable ofaddressing the wide range of more likely threats and challenges we faceto 2035. The ADF must have higher levels of preparedness so that it canquickly and effectively respond to emerging circumstances and be better
able to manage strategic risk.
1.21 The Government’s plans for developing the more capable, agile andpotent set of military capabilities Australia needs for the future are
explained in Chapter Four.
1.22 Chapter Four also deals with the critical supporting capabilities
provided by Australian defence industry, academia and others. The
Government recognises that Australian defence industry and scientificand technological research and development institutions have a critical

Managing strategic risk

35role in providing the national support base upon which Defence relies tomanage strategic risk.

1.24 Australia has the capability to make a difference in the world wherever
our Strategic Defence Interests are engaged. Australia cannot expect
others to bear, on our behalf, the burden of ensuring that the world is asafe and secure place. While the Government will increase Australia’s
capability to undertake independent operations in our region, we willcontinue to need to work with other countries to protect and further our
global interests. Australia must work in partnership with our alliancepartners the United States and New Zealand, friends and like-mindedcountries to address common threats and security challenges.
1.25 Chapter Five sets out the Government’s plan to deepen our partnershipwith the United States, including enhancing our already high levelsof military integration and interoperability, cooperation in intelligencesharing, continuing the implementation of the United States Force
Posture Initiatives in northern Australia and participating in UnitedStates-led operations against shared challenges such as the global
threat of terrorism.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

1.23 Australia’s armed forces have also relied on technology and innovation
to maintain their capability edge. The contribution of Australian defence
industry to that technological and innovative edge has been an importantpart of our national security over many years. Into the future, a highly
skilled and internationally competitive Australian defence industry basewill continue to be an essential enabler of our defence capability. To
have the most effective military force, Defence must improve the way
its capability requirements are linked with Australian defence industry’s
capacity to deliver. This Defence White Paper is accompanied by a
new Defence Industry Policy Statement. The Statement focuses on amore direct and earlier role for Australian defence industry in capability
development and sustainment, a collaborative approach to innovation,
and a strategic and closer relationship between Australian defence
industry and Defence.

SECTION ONE STRATEGY36

CHAPTER ONE: THE GOVERNMENT’S APPROACH TO DEFENCE

1.26 The Government will increase Defence’s international engagement,
particularly with the countries of the South Pacific and South East
Asia, to support our collective capacity to address common threats
and security challenges. The Government will increase the pattern ofregular ADF deployments into the region, enhance the ADF’s program ofinternational exercises, and support increased capacity building and the
security architecture of the region.
1.27 Defence is able to respond to the unexpected when it operates as anintegrated organisation of accountable, professional and capable ADF
and Australian Public Service personnel, supported by contractors andAustralian defence industry. Defence must be underpinned by culturalreform, sound business processes and strong information flows. The
recommendations of the First Principles Review, released by theGovernment in April 2015, provide the means by which Defence willreform its business processes and structures to achieve an organisation
capable of implementing this Defence White Paper. Chapters Six andSeven discuss how the Government’s reforms will create a more agile
Defence organisation.
1.28 The Government’s commitment to a 10-year funding model provides
the certainty needed to deliver the long-term plan outlined in thisDefence White Paper. The long-term nature of defence planning means
budget certainty is essential to achieve the Government’s objectiveof strengthening Australia’s defence capabilities in a more complex
strategic environment. The 10-year funding model set out in thisDefence White Paper will not be subject to any further adjustments asa result of changes in Australia’s GDP growth estimates. Chapter Eightdetails the Government’s funding model for Defence. Finally, Chapter
Nine outlines how the Government will implement this White Paper.

37

Intentionally blank2016 DEFENCE WHITE PAPER

38

2

39
`` Chapter Two: Strategic Outlook
Australia’s security, and the future challenges we must be prepared
for, are intimately tied to developments in both our regional and theglobal environment. This chapter describes Australia’s strategic outlook
for the next two decades based on a comprehensive analysis of the
security challenges most likely to affect defence planning and capability
decisions in the coming years. Chapter Three outlines the Government’s
strategic defence policy in response to these challenges.

2.2

Our nearer region, which encompasses Australia’s borders and offshore
territories, Papua New Guinea, Timor-Leste and Pacific Island Countries
and maritime South East Asia, is of most immediate importance forAustralia’s security. The wider Indo-Pacific region, from the Indian
Ocean to the Pacific Ocean connected by South East Asia, through andwithin which most of Australia’s trade activity occurs, will be central
to our national security and economic prosperity. Beyond our region,
Australia’s security and prosperity depends on a stable rules-based
global order and the flow of goods, services and finance free fromthreats such as terrorism.

Australia’s security environment
2.3

Australia is well placed to benefit greatly from the economic growthin the Indo-Pacific region. We are a major advanced economy withstrong bilateral and regional ties, and we are building those ties toprovide more economic opportunities for Australia. Three Free Trade
Agreements, with Korea, Japan and China, have entered into force since
December 2015. The Trans Pacific Partnership between 12 regional
nations, which account for 40 per cent of global trade, including theUnited States, Japan and Australia, has great potential to further drive
opportunities for growth in Australia. Beyond the Indo-Pacific the global

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.1

40

CHAPTER TWO: STRATEGIC OUTLOOKSECTION ONE STRATEGY

economy presents opportunities for Australia to build and deepen
partnerships to pursue economic development.
2.4

In order for Australia and other countries to take advantage of theunprecedented economic growth of the Indo-Pacific region and beyond,
we must be willing and able to meet the threats to the peace andstability that has underpinned these positive developments. Chapter
Five provides more detail on how we will continue developing ourinternational partnerships to cooperate in meeting these threats.

2.5

While there is no more than a remote prospect of a military attack
on Australian territory by another country in the period to 2035, theenvironment within which Australia pursues its objectives of security
and prosperity will see new complexities and challenges over the
next 20 years. Our strategic planning recognises the regional andglobal nature of Australia’s strategic interests and the different sets ofchallenges created by the behaviours of states and non-state actors
such as terrorists.

2.6

Six key drivers will shape the development of Australia’s security
environment to 2035:``

the roles of the United States and China and the relationshipbetween them, which is likely to be characterised by a mix ofcooperation and competition``

challenges to the stability of the rules-based global order,
including competition between countries and major powers trying
to promote their interests outside of the established rules``

the enduring threat of terrorism, including threats emanating fromungoverned parts of Africa, the Middle East and Asia. Australians
will continue to be threatened by terrorism at home and abroad.
The spread of extremism and violence is likely to be worsened byforeign terrorist fighters returning from conflicts to Australia andother countries in our region

Australia’s security environment

state fragility, including within our immediate neighbourhood,caused by uneven economic growth, crime, social, environmental
and governance challenges and climate change``

the pace of military modernisation and the development of morecapable regional military forces, including more capable ballistic
missile forces``

the emergence of new complex, non-geographic threats, including
cyber threats to the security of information and communications
systems.

The United States and China
2.7

The roles of the United States and China in our region and therelationship between them will continue to be the most strategicallyimportant factors in the security and economic development of the
Indo-Pacific to 2035.

2.8

The United States will remain the pre-eminent global military power overthe next two decades. It will continue to be Australia’s most important
strategic partner through our long-standing alliance, and the active
presence of the United States will continue to underpin the stabilityof our region. The global strategic and economic weight of the UnitedStates will be essential to the continued stability of the rules-based
global order on which Australia relies for our security and prosperity.
The world will continue to look to the United States for leadershipin global security affairs and to lead military coalitions that support
international security and the rules-based global order. The UnitedStates is committed to sustaining and advancing its military superiority
in the 21st century, including through its Defense Innovation Initiative.

2.9

Australia welcomes and supports the critical role of the United Statesin ensuring stability in the Indo-Pacific region. Australia’s relationshipwith the United States is broadly based and we build on that relationship2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY``41

SECTION ONE STRATEGY42

CHAPTER TWO: STRATEGIC OUTLOOK

on a day to day basis across many joint endeavours, discussed further
in Chapter Five. The levels of security and stability we seek in the
Indo-Pacific would not be achievable without the United States. The
United States is committed to enhancing collaboration with its allies andpartners. Australia will continue to work with the United States under theAustralia, New Zealand and United States (ANZUS) Treaty to support theUnited States' strategy of focusing resources and attention towards the
Indo-Pacific through its strategic rebalance, which includes strengthening
its alliances and ties with countries in the Indo-Pacific. The rebalance
demonstrates the commitment of the United States to the long-term
security of the Indo-Pacific.
2.10 While China will not match the global strategic weight of the UnitedStates, the growth of China’s national power, including its militarymodernisation, means China’s policies and actions will have a major
impact on the stability of the Indo-Pacific to 2035.
2.11 China’s Navy is now the largest in Asia. By 2020 China’s submarine
force is likely to grow to more than 70 submarines. China also
possesses the largest air force in Asia, and is pursuing advanced
fifth-generation fighter aircraft capabilities. China’s militarymodernisation includes more-capable special forces, aviation andcommand and control networks and it is also investing in newtechnologies including space and cyber capabilities.
2.12 As China grows, it will continue to seek greater influence within theregion. As a major power, it will be important for regional stability that
China provides reassurance to its neighbours by being more transparent
about its defence policies. In that regard the Government notes the
publication in May 2015 of China’s Defence White Paper.
2.13 China’s military modernisation means it has greater capacity to share
the responsibility of supporting regional and global security. The
Government welcomes China’s growing participation in United Nations

Australia’s security environment

43

peacekeeping, humanitarian assistance, disaster relief and anti-piracy
operations. Australia will expand its defence relationship with China overcoming years, as outlined in Chapter Five.

2.15 In recent years the United States and China have also increased
senior-level dialogue on defence matters and have developed arange of bilateral mechanisms to increase transparency, reducemisunderstanding, and de-escalate tension. This includes the November
2014 agreement on rules of behaviours for safe military encounters at
sea and in the air. Both countries also actively participate in the evolving
regional security architecture, including the East Asia Summit, theAssociation of South East Asian Nations (ASEAN) Regional Forum andthe ASEAN Defence Ministers’ Meeting-Plus (ADMM-Plus).
2.16 While major conflict between the United States and China is unlikely,
there are a number of points of friction in the region in which differences
between the United States and China could generate rising tensions.
These points of friction include the East China and South China Seas,
the airspace above those seas, and in the rules that govern international
behaviour, particularly in the cyber and space domains.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.14 The relationship between the United States and China is likely to be
characterised by a mixture of cooperation and competition dependingon where and how their interests intersect. The United States and China
share important interests in deepening their economic integration.
The governments of both countries have publicly committed to a
constructive relationship and it is not in the interests of either country
to see an unstable international environment in which the free and open
movement of trade and investment is compromised. The United States
and China already cooperate in many security areas where their interests
intersect, demonstrated by their joint exercises in search and rescue,
counter-piracy, humanitarian assistance and disaster relief operations.

SECTION ONE STRATEGY44

CHAPTER TWO: STRATEGIC OUTLOOK

2.17 For Australia, our relationships with both countries will remain crucial
in different ways. The way the Government approaches our defence
strategy reflects these differences. Australia’s alliance with the UnitedStates is based on shared values and will continue to be the centrepieceof our defence policy. The Government will continue to strengthen thealliance including by supporting the United States’ role in underpinning
the stability of our region through its rebalance. The Government will
also continue to work closely with the United States and coalitions oflike-minded countries to address common global security challenges,
such as in Iraq, Syria and Afghanistan.
2.18 Australia welcomes China’s continued economic growth and theopportunities this is bringing for Australia and other countries in
the Indo-Pacific. Formally elevating Australia and China’s bilateralrelationship to a Comprehensive Strategic Partnership during President
Xi Jinping’s visit to Australia in 2014 was a reflection of the importanceboth countries attach to our expanding political, economic, strategic andpeople-to-people ties. The Government will seek to deepen and broaden
our important defence relationship with China while recognising that
our strategic interests may differ in relation to some regional and global
security issues.

The rules-based global order
2.19 Australia’s security and prosperity relies on a stable, rules-based global
order which supports the peaceful resolution of disputes, facilitates free
and open trade and enables unfettered access to the global commons to
support economic development.
2.20 The current global environment is more interconnected than ever before,
including communications, trade, global supply chains and the mobilityof finance and labour around the world. Interconnectivity means thatevents in our immediate neighbourhood, the Indo-Pacific region more
broadly and in more distant places like the Middle East, Afghanistan

Australia’s security environment

452.21 While Australia is the world’s twelfth largest economy and has
sophisticated and growing military capabilities, Australia does nothave the capacity to unilaterally protect and further our global security
interests. This means we will be working with our alliance partner theUnited States, ASEAN countries, the North Atlantic Treaty Organization(NATO), the United Nations and other partners to achieve our common
goals in protecting and promoting a stable rules-based global order.
2.22 Underpinning the rules-based global order is a broad architecture ofinternational governance which has developed since the end of theSecond World War. This governance framework, including the United
Nations, international laws and conventions and regional security
architectures, has helped support Australia’s security and economic
interests for 70 years.
2.23 The framework of the rules-based global order is under increasingpressure and has shown signs of fragility. The balance of military andeconomic power between countries is changing and newly powerfulcountries want greater influence and to challenge some of the rules in
the global architecture established some 70 years ago.
2.24 While it is natural for newly powerful countries to seek greater influence,
they also have a responsibility to act in a way that constructively
contributes to global stability, security and prosperity. However, some2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

and Ukraine can affect Australia’s security and prosperity. The global
nature of the challenges we face have been demonstrated by the rise ofDaesh in Iraq and Syria. Daesh’s violent extremism has attracted foreign
terrorist fighters from around the world including Australia. Terrorists
acting in the name of Daesh have perpetrated attacks in several
countries including Australia. Never before has there been a time when
external threats so distant from our shores have had the capacity to soquickly affect our direct interests. In the decades ahead, we are likely toface new challenges to our interests across the globe.

46

CHAPTER TWO: STRATEGIC OUTLOOKSECTION ONE STRATEGY

countries and non-state actors have sought to challenge the rules thatgovern actions in the global commons of the high seas, cyberspace andspace in unhelpful ways, leading to uncertainty and tension.
2.25 Refusal to act in ways consistent with international law and standardsof behaviour, such as Russia’s coercive and aggressive actions in
Ukraine, and the Democratic People’s Republic of Korea’s proliferationof weapons of mass destruction, creates international uncertainty,
endangers populations and impacts economic activity.
2.26 In addition to the actions of countries, non-state actors have the growing
ability to adversely impact the global commons through activity such as
terrorism, piracy and people smuggling and the use of readily available
and highly disruptive technology including cyber capabilities. Terrorist
forces have demonstrated an ability to conduct coordinated attacks
with relatively unsophisticated planning such as took place in Paris in
November 2015, as well as one-off acts of mass violence though the useof small arms, suicide bombs and improvised explosive devices, as seenin the urban attacks of 2015 and early 2016 in cities around the world.
2.27 It is important that the existing rules-based global order be able to adapt
and respond to these challenges. The coercive use of economic or
military power can diminish the freedom of countries such as Australia
to take independent action in our national interest. The Government iscommitted to working with the United States and like-minded partners
to maintain the rules-based order by making practical and meaningful
military contributions where it is in our interest to do so. Australia has along history of contributing to international efforts to maintain the rulesbased global order and address shared security challenges including thethreat of terrorism and state fragility.

The threat of terrorism and foreign terrorist fighters
2.28 The threat of terrorism and terrorist groups to Australia’s security andour interests in a stable international order is growing. There are nowAustralia’s security environment

47

2.29 The rise of Daesh in Iraq and Syria and the group’s rapid spread
across the Middle East, North Africa and South and South East Asia
has resulted from Daesh’s ability to exploit weak central government
authority and local ethnic, social and economic grievances toundermine stability and expand the group’s extremist ideology. The
violent extremist ideology promoted by Daesh is rejected by the vast
majority of Muslims, and it is Muslims who have suffered the most at
the hands of Daesh. Daesh’s control of territory challenges the territorial
integrity of some Middle Eastern states and undermines the international
system of rules and cooperation. Daesh uses its control of territory
to train fighters, spread its propaganda message, foster international
terrorism and ferment conflict.
2.30 These conflicts, particularly in Iraq and Syria, will continue to attract
foreign terrorist fighters, including from Australia and countries in our
region. As these foreign terrorist fighters return from conflicts with new
skills and networks, the risk of instability and attacks in their homecountries will rise.
2.31 The terrorist threat extends to individuals motivated and radicalised byextremist narratives, often via the internet, who do not themselves travel
overseas. Daesh, and other terrorist groups such as al-Qa’ida and BokoHaram, are becoming increasingly adept at using the internet and social
media to promote their narratives of hate, build support and engage with

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

more extremists fighting for terrorist causes in more countries thanever before. Terrorist attacks around the world increased by 35 per centfrom 2013 to 2014. The United States State Department has estimatedthat more than 32,000 people were killed in terrorist attacks in 2014.
The major threat we are currently facing is from violent extremism
perpetrated or motivated by terrorist groups such as Daesh, al-Qa’ida
and others that claim to act in the name of Islam. The anti-Western
narrative of terrorists means that Australians will continue to be targetedat home and abroad.

48

CHAPTER TWO: STRATEGIC OUTLOOKSECTION ONE STRATEGY

disaffected people in Western countries. This propaganda machine iseffective and inexpensive and has contributed to the radicalisation ofindividuals and groups throughout the world, including in Australia.
2.32 Radical groups have the potential to pose a wider threat to the domestic
fabric of countries, potentially resulting in tensions between ethnic andreligious groups.
2.33 The lack of capacity in some countries to take action against terrorism
will continue to require intervention by countries willing to provide
military, intelligence, political, diplomatic, economic and humanitarian
support to deny terrorists safe haven. Australia’s participation in theinternational coalitions fighting terrorism in Afghanistan, Iraq and Syria
are examples of such interventions.

State fragility
2.34 The ability of terrorist organisations to organise, train, spread theirpropaganda and mount operations is supported by state fragility, weakborders and an increasing number of ungoverned spaces through partsof North Africa, sub-Saharan Africa, the Middle East and Asia including
in Libya, Iraq, Syria and elsewhere. State fragility in North Africa and theSahel is also leading to the widespread distribution of weapons which
are used in conflicts in other parts of Africa.
2.35 The South Pacific region will face challenges from slow economic
growth, social and governance challenges, population growth andclimate change. Instability in our immediate region could have strategic
consequences for Australia should it lead to increasing influence byactors from outside the region with interests inimical to ours. It is crucial
that Australia help support the development of national resilience in theregion to reduce the likelihood of instability. This assistance includes
defence cooperation, aid, policing and building regional organisations
as set out in Chapter Five. We will also continue to take a leading role inproviding humanitarian and security assistance where required.

Australia’s security environment

49

Military modernisation

2.37 Asia’s defence spending is now larger than Europe’s. In 2014,
military spending in Asia increased by five per cent, reaching around$439 billion in total, compared to spending in Europe which in 2014
grew by 0.6 per cent, reaching around $386 billion in total.

China

USA
2014

Figure 1:Japan

Australia

Indonesia

2035

Indicative Defence Spending to 2035

2.38 Military modernisation in our region will not be directed against
Australia, but it will mean the defence capability edge we have enjoyedin the wider region will significantly diminish.
2.39 Successive Governments have identified maintaining the ADF’s
technology and capability superiority over potential adversaries as an
essential element of our strategic planning. Our ability to do this has been
based in a large part on our access to the advanced capabilities developedby the United States. However, our future ability to maintain this superiority
will be challenged by the growth towards more-capable and modern
military forces in the Indo-Pacific region to 2035 and beyond.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.36 It is natural for countries in the Indo-Pacific, including Australia,
to modernise their military capabilities as their economies grow,technology develops and new capabilities become available. The paceof military modernisation in the Indo-Pacific is underpinned by the very
positive economic transformation of the region.

SECTION ONE STRATEGY50

CHAPTER TWO: STRATEGIC OUTLOOK

2.40 As a result of this military modernisation, a larger number of regional
forces will be able to operate at greater range, and with more precision,
especially in the maritime and air environments supported by moreadvanced intelligence, surveillance and reconnaissance networks.
2.41 Within the broader Indo-Pacific region, in the next two decades, halfof the world’s submarines will be operating in the region. Within thesame period, at least half of the world’s advanced combat aircraft armed
with extended range missiles and supported by highly sophisticatedinformation networks, will be operated by Indo-Pacific countries.
2.42 Some regional countries will acquire longer-range precision-guided
missiles, including ship-based missiles, over the period to 2035.
Advanced intelligence, surveillance and reconnaissance systems,
including both space and high altitude capabilities, will be prevalent,
reducing the effectiveness of stealth capabilities. The region will see
more autonomous systems, such as unmanned combat vehicles, inoperation in the sub-surface, surface and air environments.
2.43 Over the next two decades, other technological advances such as
quantum computing, innovative manufacturing, hypersonics, directedenergy weapons, and unmanned systems are likely to lead to theintroduction of new weapons into our region.
2.44 While the threat of an intercontinental ballistic missile attack onAustralia is low, the quality and quantity of cruise and short and medium
range ballistic missile forces in the Indo-Pacific is rising and relevant
technologies are spreading. By 2035, more countries in our region
will have access to ballistic missile technology and it is possible morecountries may have acquired them. The difficulty of countering ballistic
missiles increases their threat, including to deployed Australian forces.
2.45 To respond to these developments we must increasingly develop
capabilities which can protect our forces when they are deployed
across large geographic areas, particularly in air and missile defence

Australia’s security environment

51

and anti-submarine warfare, and better link the ADF’s individual
capabilities to each other.

2.47 Military modernisation also has the potential to increase strategiccompetition as countries seek military advantages over theirneighbours and the likely consequences of conflict in the event of any
miscalculation.
2.48 Sustained and genuine commitment by all countries in our region totransparency and to cooperation through strengthened regional security
architectures is essential to ensure that strategic competition does not
escalate through miscalculation or misadventure into tension and conflict.

Cyber and space
2.49 Beyond the increasing regional military modernisation, the strategic
environment over the next 20 years will be shaped by complex nongeographic threats, such as the threats in cyberspace and space. The
security environment of the future, both in peacetime and during armed
conflict, will feature increased threats from offensive cyber and spacebased capabilities.
2.50 Cyber attacks are a direct threat to the ADF’s warfighting ability given its
reliance on information networks. State and non-state actors now haveready access to highly capable and technologically advanced tools totarget others through internet-connected systems and we are seeing
greater use of offensive cyber operations. This trend is likely to continue.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.46 As countries in the Indo-Pacific continue to develop their militarycapabilities, opportunities will emerge for increasingly sophisticatedpractical military cooperation. The more advanced technologies beingbrought into service will improve the ability of regional countries,
including Australia, to share situational awareness, communicate andcooperate in response to shared security challenges.

SECTION ONE STRATEGY52

CHAPTER TWO: STRATEGIC OUTLOOK

2.51 Cyber threats also have impacts well beyond Defence, with the potential
to attack other Australian government agencies, all sectors of Australia’s
economy and critical infrastructure and, in the case of state actors,
conduct state-based espionage including against Australian defence
industry. The Australian Signals Directorate detected over 1,200 cybersecurity incidents in 2015, including attacks on government agencies
and non-government sectors. Australian defence industry was one of
the key non-government sectors targeted in that period, along withenergy, banking and financial services, communications and transport.
Cyber attacks also threaten Australia’s secure access to the global
communications system which is critical to Australia’s prosperity.
2.52 The next 20 years will see the continuing expansion of space-based andspace-enabled capabilities, including military capabilities.
2.53 The ADF and our partners are reliant on space-based satellite systems to
support our networked capabilities and to communicate and fight when
deployed on operations. Some countries are developing capabilities totarget satellites to destroy these systems or degrade their capabilities,
threatening our networks.
2.54 Space-based capabilities also offer potential state adversaries advanced
information gathering opportunities, including imagery gathering. The
availability of commercial space-based systems also means that smaller
countries, private interests and non-state actors can access sensitive
information about our security arrangements, such as imagery of
Defence bases.
2.55 To ensure the security of our space-enabled capabilities, theGovernment will strengthen Defence’s space surveillance and situationalawareness capabilities, including through the space surveillance radar
operated jointly by Australia and the United States, and the relocationof a United States optical space surveillance telescope to Australia.

Regional security environments

53

Limiting the militarisation of space will also require the international
community to work together to establish and manage a rules-based
system – a prospect that does not seem likely in the immediate future.
SECTION ONE STRATEGY

Regional security environments
Australia’s borders and offshore territories
2.56 Safeguarding Australia’s maritime approaches, offshore territories andborders is essential for Australia’s national security. Over the next 20
years, we expect the threats to our maritime resources and our borders
to grow in sophistication and scale. Australian fisheries remain relatively
abundant, particularly in the Southern Ocean, making them appealing
targets for long-range illegal fishing fleets.
2.57 Conflict, insecurity and economic factors will continue to dispossessmillions across the world, and our borders are likely to continue to bechallenged by international criminal syndicates seeking to smuggle
illegal migrants. Criminal elements will also continue to seek ways of
smuggling other cargoes, such as illegal drugs and guns across ourborders.
2.58 Defence will continue to share responsibility with other government
agencies, principally the Department of Immigration and Border
Protection, for the security and defence of our maritime domain andborders. Operation Sovereign Borders is a military-led border security
operation to stop people smuggling and is supported and assisted by awide range of government agencies. Defence’s ability to contribute toborder security operations will be enhanced with the acquisition of
new and more-capable offshore patrol vessels, a new large-hulled
multi-purpose patrol vessel, the Australian Defence Vessel Ocean
Protector, and through enhancements to our maritime surveillancecapabilities including manned and unmanned aircraft.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY54

CHAPTER TWO: STRATEGIC OUTLOOK

2.59 These enhancements to Defence’s maritime capabilities will provide
Australia with enhanced situational awareness of activities in our
maritime domain, earlier detection of emerging threats to our bordersecurity and faster responses to deter and defeat any such threat.
2.60 The Australian Antarctic Territory faces no credible risk of being
challenged in such a way that requires a substantial military response
for at least the next few decades. It is in our interest to work withlike-minded countries to prevent any militarisation of Antarctica which
could threaten Australia’s sovereignty over the Australian Antarctic
Territory and its sovereign rights over its offshore waters. Australia
is a strong supporter of the Antarctic Treaty System, which expressly
prohibits any mining in Antarctica. Australia also strongly supports theConvention on the Conservation of Antarctic Marine Living Resources,
which regulates fishing activity in Antarctic waters.
2.61 Defence will continue to support maritime resource protection operations,particularly in the fisheries of our Heard and McDonald Islands Exclusive
Economic Zone, and will provide niche support to the Australian Antarctic
Division’s operations, including Royal Australian Air Force heavy air lift
missions in support of Australia’s stations in Antarctica.

Our immediate neighbourhood
2.62 Geography, shared history, business and interpersonal links tie
Australia’s interests closely to stability and prosperity in our immediateneighbourhood spanning Papua New Guinea, Timor-Leste and PacificIsland Countries in the South Pacific.
2.63 Australia places a high priority on our defence relationship with ourclosest neighbour, Papua New Guinea, with which Australia has anincreasingly broad-based relationship. The Government plans toincrease our cooperation with the Papua New Guinea Defence Forceand Department of Defence in the decade ahead.

Regional security environments

55

2.65 Pacific Island Countries have demonstrated a commitment to practicalcooperation on regional security, such as contributing to the Regional
Assistance Mission to Solomon Islands. The Pacific Islands Forum’s
Biketawa Declaration of 2000 authorises regional action to address
security crises.
2.66 Countries such as Papua New Guinea, Fiji and Tonga have demonstrated
a willingness to make important contributions to maintaining therules-based global order, including in our region through theircontributions to the Regional Assistance Mission to Solomon Islands
and more broadly through commitments to United Nations or othermultinational peacekeeping operations.
2.67 Some Pacific Island Countries are well placed to benefit from thegrowth in South East Asian economies and have the opportunity toharness natural resources to support economic development. Despite
this opportunity, the next two to three decades will bring increasing
challenges to Pacific Island Countries. These challenges include
population growth, ethnic tensions, political instability, governancecapacity, environmental degradation and natural disasters, which can set
back progress and development by many years. Countries from outside
the South Pacific will seek to continue to expand their influence in theregion, including through enhanced security ties.
2.68 Climate change will be a major challenge for countries in Australia’s
immediate region. Climate change will see higher temperatures,2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.64 Recent years have seen a commitment by Pacific Island Countries
to collaborate to address shared challenges. The region’s security
architecture has been strengthened, including through the Pacific Islands
Forum, the Forum Fisheries Agency and the South Pacific Defence
Ministers’ Meeting. This security architecture provides Pacific Island
Countries with mechanisms to discuss and agree how to respond toregional security threats.

SECTION ONE STRATEGY56

CHAPTER TWO: STRATEGIC OUTLOOK

increased sea-level rise and will increase the frequency and intensity of
extreme weather events. These effects will exacerbate the challenges of
population growth and environmental degradation, and will contribute tofood shortages and undermine economic development.
2.69 To help countries in our immediate neighbourhood respond to thechallenges they face, Australia will continue to play an importantregional leadership role. Our strategic weight, proximity and resources
place high expectations on us to respond to instability or natural
disasters, and climate change means we will be called on to do so more
often. We will continue to play that role in close collaboration with New
Zealand, France, the United States, Japan and other partners.
2.70 Australia is committed to further strengthening the capabilities of PacificIsland Countries so they can act in support of shared interests. The
Government will invest in providing more practical assistance throughthe Defence Cooperation Program, especially the Pacific Maritime
Security Program, and we will work with regional countries to strengthen
the regional security architecture.

South East Asia
2.71 Australia has deep strategic security and economic interests in South
East Asia. The geography of the archipelago to Australia’s immediate
north will always have particular significance to our security. Any
conventional military threat to Australia is likely to approach through thearchipelago as are other threats involving transnational crime including
people smuggling and drug trafficking. The strong cooperation we have,and continue to build, with our close northern neighbours is crucial toguard against such threats.
2.72 Australia also has deep economic security interests in South East Asia.
The region’s growth presents significant opportunities for Australia’s
economy and prosperity. Two-way trade with ASEAN countries wasworth over $100 billion in 2014. The waters of South East Asia carry

Regional security environments

57

2.73 Proximity and economic interests mean that instability in South East
Asia, whether internal to countries or between countries, has thepotential to affect Australia’s security. The return of foreign terrorist
fighters from conflicts in the Middle East to their countries of origin
in South East Asia exacerbates internal instability and raises risks toAustralians living in or travelling to that region.
2.74 South East Asia’s stability is underpinned by the pivotal role of theUnited States in supporting stability and promoting economic growth,
including through its close defence partnerships with Thailand andthe Philippines. Australia strongly supports the contribution of theASEAN-led regional security architecture to security and stability inSouth East Asia. This includes continued progress in fostering practicaldefence cooperation within the ADMM-Plus framework.
2.75 Major region-wide interstate instability is unlikely over the next
20 years, but competing claims for territory and natural resourcesin South East Asia will continue to provide a potential source oftensions that could undermine stability. Over the next 20 years, as theireconomies continue to grow, South East Asian countries will continue
the natural process of military modernisation currently underway, albeit
at differing paces across the region.
2.76 This combination of competing territorial claims and growth in militarycapability has the potential to destabilise the region and threaten
Australia’s interests. Australia has a strong interest in the maintenanceof peace and stability, respect for international law, unimpeded tradeand freedom of navigation and overflight. It is important that disputes areresolved peacefully and in accordance with international law.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGYthe great majority of Australia’s international trade including to our threelargest export markets in China, Japan and the Republic of Korea. Nearly
two thirds of Australia’s exports pass through the South China Sea,
including our major coal, iron ore and liquefied natural gas exports.

SECTION ONE STRATEGY58

CHAPTER TWO: STRATEGIC OUTLOOK

2.77 Australia does not take sides on competing territorial claims in theSouth China Sea but we are concerned that land reclamation andconstruction activity by claimants raises tensions in the region. Australia
opposes the use of artificial structures in the South China Sea for
military purposes. Australia also opposes the assertion of associatedterritorial claims and maritime rights which are not in accordance withinternational law, including the United Nations Convention on the Law of
the Sea (UNCLOS).
2.78 Australia has called on all South China Sea claimants to halt land
reclamation and construction activities, which involves the dredging
of sea floor material for use as landfill in creating artificial structures.
Australia has also called on all claimants to exercise self-restraint, takesteps to ease tensions and refrain from provocative actions that could
increase tension and uncertainty in the region. Australia is particularly
concerned by the unprecedented pace and scale of China’s land
reclamation activities.
2.79 It is important that claimant countries are open and transparent about
the end state purposes of land reclamation activities. The absence ofan agreed framework for managing the competing claims in the South
China Sea highlights the importance of ASEAN and China agreeing to a
Code of Conduct for the South China Sea as soon as possible.
2.80 Australia is committed to working with the countries of South East Asia,
and with the United States, Japan, the Republic of Korea, New Zealand,
India and China to support security, development and growth. The
further development of regional forums, including the East Asia Summit,
as mechanisms for supporting security and facilitating transparency andcooperation will be important for future stability. We will also continue
to work with the United States to support its strategic rebalance which
is an essential part of the enduring role the United States will play as astabilising force in the Indo-Pacific.

Regional security environments

59

Indonesia

2.82 With continued economic growth Indonesia has the potential toincrease its regional and global influence. Over the same period, andcommensurate with its economic growth, Indonesia will probably
become the largest defence spender in South East Asia. Australia andIndonesia share many common security interests, including a sharedmaritime border, a commitment to combatting terrorism, promoting
peace and stability in our region and working to strengthen the regional
security architecture.
2.83 The modernisation of the Indonesian armed forces and Indonesia’s
growing influence are positive developments that will add to Indonesia’s
security, and that of the region. A secure Indonesia is in Australia’sinterests and its growing military capabilities will offer Australia andIndonesia opportunities for more effective cooperation to respond toregional challenges, including terrorism, transnational crime such as
people smuggling and humanitarian disasters as well as search andrescue operations.
2.84 Australia will continue to broaden our defence cooperation in waysthat benefit both countries. More information on Australia’s defence
cooperation with Indonesia is provided in Chapter Five.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.81 As our near neighbour, Australia’s relationship with Indonesia is vital. By
2035, Indonesia should be a major world economy. Its rapid economic
development has seen it become the largest economy in South East
Asia, with a growing middle class and increased demand for goods andservices. This growth presents opportunities to build prosperity for both
Australia and Indonesia.

60

CHAPTER TWO: STRATEGIC OUTLOOKSECTION ONE STRATEGY

North Asia
2.85 Australia has a deep and abiding interest in peace, stability and securityin North Asia. More than half of Australia’s exports are to North Asia,with China, Japan and the Republic of Korea being three of Australia’s
four biggest trading partners. Almost all of that trade, by volume, moves
by sea. While our interests in peace and security in North Asia are vital,
our capacity to influence events acting alone is limited. Our defence
engagement in North Asia will continue to be based on partnerships,
including with Japan, the Republic of Korea, and our alliance with theUnited States. The Government will seek to enhance Australia’s growing
defence relationship with China.
2.86 Over the next 20 years, economic interdependence, particularly
in maritime trade and energy security, will provide incentives forcountries in the region to cooperate with each other. But economic
interdependence does not guarantee stability and political and historicalissues will remain sources of tension.
2.87 North Asia is home to some of the largest military forces in the
Indo-Pacific. The Korean Peninsula is one of the most heavily militarised
environments in the world, and will probably remain so to 2035.
2.88 The Democratic People’s Republic of Korea will continue to be a major
source of regional instability. North Korea’s threatening behaviour
includes its nuclear weapons program, its ballistic missile tests, and its
proliferation of weapons of mass destruction and their delivery systems.
North Korea’s behaviour especially threatens its immediate neighbours,
particularly South Korea and Japan. Frequent cycles of inter-Koreantensions are likely to continue as Pyongyang seeks to engineer crises,
often using threats of nuclear escalation or ballistic missile tests, to try
to extract aid and concessions from the international community.

Regional security environments

61

2.90 Australia welcomes positive developments in North Asia to improve
relations, including meetings between the Chinese President andJapanese Prime Minister, and between the foreign ministers of China,
Japan and South Korea. Enduring commitment to such efforts, toavoiding provocative behaviour and to transparency about strategic
intentions and military modernisation will be essential to resolving thestatus of territorial and other disputes peacefully.
2.91 Japan is a major power in North Asia with advanced self-defence forces
and is an important contributor to regional and global security. Australia
welcomes the prospect of Japan playing a larger role in international
security and will continue to deepen and broaden our growing security
cooperation with Japan. More details on the Australia-Japan relationshipcan be found in Chapter Five.

South Asia and the Indian Ocean Rim
2.92 The Indian Ocean has become an important focus for Australian strategic
policy in recent years. Vital trade and energy routes for Australia andmany of our most important economic partners transit the Indian
Ocean. Half of the world’s container traffic and one-third of bulk cargo
traverses the Indian Ocean. Around 40 per cent of the world’s offshore
oil production comes from the Indian Ocean. Over the next 20 years, theIndian Ocean will see a substantial increase in intra-regional maritime
trade, including in energy, food and other natural resources. The
Indian Ocean region is also likely to become a more significant zone

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.89 Unresolved territorial disputes also contribute to tensions in the area.
China’s 2013 unilateral declaration of an Air Defence Identification
Zone in the East China Sea, an area in which there are a number ofoverlapping Air Defence Identification Zones, caused tensions to rise.
Australia is opposed to any coercive or unilateral actions to change thestatus quo in the East China Sea.

62

CHAPTER TWO: STRATEGIC OUTLOOKSECTION ONE STRATEGYof competition among major powers, with China, India and the UnitedStates all increasing their levels of military activity in this region.
2.93 India is an increasingly important economic and security partner forAustralia and we share key interests in regional stability and order.
India’s modernisation of its armed forces and participation in theregional security architecture, particularly through the Indian Ocean
Naval Symposium and Indian Ocean Rim Association, supports Australia
and India’s shared interests in Indian Ocean security. India is also
increasing its security partnerships, including with Australia, the UnitedStates, Japan, Indonesia and Vietnam.
2.94 In addition to having a stronger role in the Indo-Pacific region, India
is also likely to become a more active and influential global power,
supported by its economic growth. India could be the world’s
third-largest economy before 2030. India’s relationships with othermajor powers including China, the United States and Japan will help
shape the global security environment out to 2035.
2.95 Over the next two decades, Pakistan is likely to continue to face a
range of security challenges as it struggles with an internal insurgency.
Following the historic elections in 2013, it will be important that
Pakistan continues to strengthen its democratic institutions. The
institutional strength of Pakistan’s armed forces will continue to play animportant role in the Pakistani state.
2.96 The India-Pakistan relationship remains one of the region’s major pointsof tension. The fact that both India and Pakistan are nuclear powers
underscores the continuing need for mutual dialogue and restraint.
Tensions between India and Pakistan, potentially fuelled by terrorist
activities, could have a wider regional and possibly global impact thatwould affect Australia’s security.

Regional security environments

63

The Middle East
2.98 Instability and threats to global security in the Middle East haveengaged Australia’s interests since the First World War. Australia has
long-standing strategic interests in preventing the spread of violent
extremism from the Middle East to our region and globally and insupporting stability and the security of vital trade and energy flows
through the Middle East.
2.99 Turbulence in the Middle East will continue to be a feature of the global
strategic environment to 2035, with implications for countries aroundthe world including Australia. Sectarian tensions are worsening, internal
and regional dynamics are in flux and ungoverned spaces are spreading
across the Middle East and North Africa and the Sahel. Current conflicts
in the Middle East and North Africa and the Sahel are significant sourcesof global insecurity promoting terrorism and threatening global trade andenergy flows.
2.100 Australia is committed to supporting the Government of Iraq with its
efforts to defeat Daesh. Daesh has proven to be a resilient and adaptive
fighting force. While the extreme nature of Daesh appears medieval,
Daesh has proven to be adept at attracting foreign terrorist fighters to
Iraq and Syria and at using the internet and social media to encourage
terrorist activities in countries around the world including in Australia.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.97 Since 2001, Australia has made an important contribution to
Afghanistan’s security, to help prevent Afghanistan again becoming
a safe haven for terrorism that threatens Australia and the wider
world. After more than a decade of ADF commitment, Afghan security
institutions continue to make progress. But the security environment in
Afghanistan will remain challenging and international assistance willcontinue to be required to solidify security gains.

SECTION ONE STRATEGY64

CHAPTER TWO: STRATEGIC OUTLOOK

2.101 Russia’s involvement in the Syrian conflict increases the complexity of
the United States-led international coalition’s effort to disrupt, degrade
and ultimately defeat the terrorist threat from Daesh. Australia has said
consistently that the crisis in Syria requires a political solution and it isimportant that all countries, including Russia, play a constructive role inachieving such a solution.

Weapons of Mass Destruction
2.102 Over coming decades, the challenges of weapons of mass destruction
will continue to be of concern to the international community.
2.103 While the number of countries with declared weapons of mass destruction,
particularly nuclear weapons, has remained relatively stable, weak or
fragile countries may resort to using weapons of mass destruction, as
demonstrated by the use of chemical weapons in Syria by the Syrian
Regime. Terrorists will also continue to seek the means to conduct a masscasualty chemical, biological, radiological or nuclear attack.
2.104 The international community has a track record of unified action toaddress the threat associated with the proliferation of weapons of mass
destruction. Australia has historically been a prominent supporter ofthis international effort, which includes the Non-Proliferation Treaty,
the Chemical Weapons Convention, the Australia Group which seeks tocontrol the export of chemical or biological weapons and the Proliferation
Security Initiative framework aimed at preventing the illicit trade ofsensitive weapons of mass destruction technologies. The international
community’s actions to remove Syria’s chemical arsenal under United
Nations Security Council Resolution 2118 demonstrates the resolve
against the possession and proliferation of chemical weapons.
2.105 Australia welcomes the comprehensive plan of action negotiatedbetween the Permanent Five members of the United Nations Security
Council (the United States, Russia, China, France and the United
Kingdom) plus Germany and Iran, on Iran’s nuclear program.

Regional security environments

65

Compliance by Iran to the terms of the comprehensive plan of action
could be a critical factor in safeguarding long-term non-proliferation
regimes and Middle East and global security.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

2.106 The international community must continue to bring together defence,law enforcement, export control, customs and counter-proliferation
agencies to manage the security challenge posed by weapons of mass
destruction. Australia will continue to play its part by contributing tointernational counter-proliferation initiatives and by controlling theexport of technologies, goods or services which could contribute to thedevelopment of weapons of mass destruction.

66

3

﻿

67

3.1

As outlined in Chapter Two, over the next two decades Australia’s
strategic outlook will change as the shift in global economic andpolitical power to the Indo-Pacific continues. Australia is fortunate to bepart of the most dynamic region in the world and we are benefiting fromthe economic transformation in the Indo-Pacific and the opportunities
it is bringing to build Australia’s prosperity. In order for Australia
to continue to benefit from our region we will need to address thechallenges of a more complex and uncertain strategic environment.

3.2

In response to this complex and uncertain strategic environment, theGovernment’s strategic defence policy is to manage strategic challenges
by: developing Defence’s capabilities and agility to take a more activerole in shaping regional affairs and to respond to developments which
threaten our interests; while strengthening our alliance with the UnitedStates and developing our partnerships with other countries. This policy
is articulated in the Government’s new strategic framework for Defence toensure the ADF is better prepared to respond if the Government decides
the pursuit of Australia’s interests requires the use of military force.

3.3

The new strategic framework is set out in the table below and explainedin the rest of this chapter. The strategic framework explains why
Australia’s Strategic Defence Interests are of fundamental significancefor Defence planning, what they mean for strategic defence planning– Strategic Defence Objectives – and how they will be reflected in the
future Defence force structure.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY`` Chapter Three: Australia’s
Defence Strategy

68

CHAPTER THREE: AUSTRALIA’S DEFENCE STRATEGYSECTION ONE STRATEGY

Australia’s Strategic Defence Framework
Strategic Defence Interests
A secure, resilient
Australia, with securenorthern approaches andproximate sea lines ofcommunication.

A secure nearer region,encompassing maritime
South East Asia and theSouth Pacific.

A stable Indo-Pacificregion and arules-based global order.

Strategic Defence Objectives
Deter, deny and defeat
attacks on or threats toAustralia and its national
interests, and northern
approaches.

Make effective militarycontributions to support
the security of maritime
South East Asia andsupport the governmentsof Papua New Guinea,
Timor-Leste and of PacificIsland Countries to build
and strengthen theirsecurity.

Contribute militarycapabilities to coalition
operations that support
Australia’s interests in arules-based global order.

Strategic Defence Interests
3.4

The Strategic Defence Interests drive Australia’s defence strategy.
They set out that sub-set of Australia’s national interests in a secure
and prosperous Australia for which the Government may want to use
its military power and guide the future development of Defence’s
capabilities.

A secure, resilient Australia, with secure northern approaches
and proximate sea lines of communication
3.5

Our most basic Strategic Defence Interest is a secure, resilient Australia.
This means a nation protected against attack or the threat of attack

Strategic Defence Interests

69

3.6

Our interest in a secure, resilient Australia also means an Australia
resilient to unexpected shocks, whether natural or man-made, andstrong enough to recover quickly when the unexpected happens.

A secure nearer region, encompassing maritime South East Asiaand the South Pacific3.7

Our second Strategic Defence Interest is in a secure nearer region.
Australia cannot be secure if our immediate neighbourhood including
Papua New Guinea, Timor-Leste and Pacific Island Countries becomes asource of threat to Australia. This includes the threat of a foreign military
power seeking influence in ways that could challenge the security of
our maritime approaches or transnational crime targeting Australianinterests.

3.8

Instability or conflict in South East Asia would threaten Australia’s
security and our vital and growing economic relationships in that
region. Stability in South East Asia is important to countering otherthreats including transnational crime and terrorism. Australia’s relianceon maritime trade with and through South East Asia, including energy
supplies, means the security of our maritime approaches and traderoutes within South East Asia must be protected, as must freedomof navigation, which provides for the free flow of maritime trade ininternational waters.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

and coercion and where Australia exercises full sovereignty over its
territories and borders. A secure, resilient Australia extends into ournorthern approaches, our Exclusive Economic Zone, and our offshore
territories, including our Southern Ocean and Antarctic territories. A
secure, resilient Australia includes protection from non-geographic
threats such as cyber attack, anti-satellite weapons and ballistic
missile systems.

70

CHAPTER THREE: AUSTRALIA’S DEFENCE STRATEGY

A stable Indo-Pacific region and a rules-based global order
SECTION ONE STRATEGY

3.9

Our third Strategic Defence Interest is in a stable Indo-Pacific region
and rules-based global order which supports Australia’s interests. The
Indo-Pacific includes North Asia, the South China Sea and the extensive
sea lines of communication in the Indian and Pacific Oceans that
support Australian trade. A stable rules-based regional order is critical toensuring Australia’s access to an open, free and secure trading system
and minimising the risk of coercion and instability that would directly
affect Australia’s interests. A stable rules-based global order serves todeal with threats before they become existential threats to Australia, andenables our unfettered access to trading routes, secure communications
and transport to support Australia’s economic development.

SOUTH KOREA 29.7
CHINA 107

INDIA 11.9

JAPAN 69.8

TAIWAN 11.2

USA 25.2

MALAYSIA 12.8

SINGAPORE 20.8
INDONESIA 12.1
NEW ZEALAND 12.0

Bilateral Sea Freight (AUD $billion/year)

Figure 2:

Heavy

Light

International Shipping Density

Sea Freight: Australia's top ten trading partners

Strategic Defence Objectives

71

Strategic Defence Objectives

3.11 The Strategic Defence Objectives are to:``

Deter, deny and defeat attacks on or threats to Australia and its
national interests, and northern approaches.

``

Make effective military contributions to support the security ofmaritime South East Asia and support the governments of Papua
New Guinea, Timor-Leste and of Pacific Island Countries to build
and strengthen their security.

``

Contribute military capabilities to coalition operations that support
Australia’s interests in a rules-based global order.

Deter, deny and defeat attacks on or threats to Australia and its
national interests, and northern approaches
3.12 In support of a secure, resilient Australia, the first Strategic Defence
Objective is to deter, deny, and defeat any attempt by a hostile state or
non-state actor to attack, threaten or coerce Australia.
3.13 While there is no more than a remote chance of a military attack onAustralian territory by another country, Australians rightly expectthat our military force be capable of the self-reliant defence of ourterritory from attack or coercion by another country. The Government is2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

3.10 To ensure Defence has the necessary force structure and force posture
to defend and further Australia’s Strategic Defence Interests, theGovernment has agreed to three equally-weighted high-level Strategic
Defence Objectives to guide the development of the future force set
out in this White Paper. The Strategic Defence Objectives outline theactivities the Government expects Defence to be able to conduct if theGovernment decides to use military power in support of Australia’s
Strategic Defence Interests.

SECTION ONE STRATEGY72

CHAPTER THREE: AUSTRALIA’S DEFENCE STRATEGY

providing Defence with the capability and resources it needs to be able
to decisively respond to military threats to Australia, including incursions
into our air, sea and northern approaches. Investment in Australia’s
military bases will be increased so they can support new capabilities
that would be used to defeat any attack on our territory. Investment in our
national defence infrastructure – including the Army, Navy and Air Forcebases in northern Australia, including in Townsville and Darwin, as wellas the Air Force bases Tindal, Curtin, Scherger and Learmonth – will be afocus of this Defence White Paper.
3.14 The Government is also providing Defence with enhanced domestic
security capabilities to help respond to the threat of complex terrorist
attacks within Australia. Australian states and territories lead the
response to any attacks within their jurisdictions, but can request
assistance from the Commonwealth as required, including the provisionof specialist Defence support to prevent, assist in response to, andrecover from a terrorism incident.
3.15 This specialised support includes: protection of Australia’s offshore oiland gas infrastructure; special forces Tactical Assault Groups, which can
rapidly deploy to support local law enforcement operations; explosive
detection and disposal; contributing to security at major events (suchas the G20 Leaders Summit in Brisbane in 2014); chemical, biological,
radiological and nuclear response operations; and intelligence
cooperation with other government intelligence and law enforcement
agencies, to identify and disrupt foreign terrorist threats.
3.16 The Government will invest in the ADF’s capabilities to ensure that it
can continue to effectively contribute to domestic counter-terrorism
operations. This includes enhancing the weapons, equipment,
tactical mobility, and situational awareness of our Special Forces andstrengthening Defence’s intelligence and air lift capabilities.

Strategic Defence Objectives

73

3.18 Defence will continue to support the states and territories to respond tonational disaster relief efforts. ADF personnel work alongside emergency
response personnel in providing disaster relief. The Government
will ensure the provision of specialist equipment, including air liftand supplies and coordination activities, to enable a close working
relationship between Defence and state and territory emergency
response services.
3.19 To counter the growing threat of cyber attack, the Government is
improving our national cyber security capabilities. Defence’s cybersecurity capabilities will be strengthened to protect the ADF’s
warfighting and information networks. Defence will contribute to theGovernment’s enhanced national cyber security efforts, which include
better coordinated cyber security capabilities and working with industry
and academia to counter the threat of cyber attack.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY

3.17 Defence shares its responsibility for safeguarding the security of ourmaritime borders with other agencies, particularly the Department
of Immigration and Border Protection. This Defence White Paper will
provide Defence with the capabilities necessary to ensure its maritime
border security responsibilities can be met. Defence will also need
to be prepared to help protect Australia’s offshore resource extraction
activities, maintain Australia’s sovereignty over our offshore territories
and Exclusive Economic Zone and fulfil our international search andrescue obligations. The Government has acquired a new large-hulled
multi-purpose patrol vessel, the Australian Defence Vessel Ocean
Protector, in addition to HMAS Choules, to provide further capability tosafeguard the security of our maritime borders.

SECTION ONE STRATEGY74

CHAPTER THREE: AUSTRALIA’S DEFENCE STRATEGY

Make effective military contributions to support the securityof maritime South East Asia and support the governments ofPapua New Guinea, Timor-Leste and of Pacific Island Countries
to build and strengthen their security
3.20 The second Strategic Defence Objective is to work with the governmentsof South Pacific Island Countries to support stability in the South Pacificand to support the security of maritime South East Asia.
3.21 Australia will continue to seek to be the principal security partner
for Papua New Guinea, Timor-Leste and Pacific Island Countries, bydeepening our security partnerships, including through our Defence
Cooperation Program. The most significant element of this program, thePacific Maritime Security Program, will provide replacement patrol boats
to 12 Pacific Island Countries from 2018.
3.22 The Government will work with Pacific Island Countries to strengthen
their ability to manage internal, transnational and border security
challenges, including natural resource protection, and to build theirresilience to natural disasters. This includes working to limit the
influence of any actor from outside the region with interests inimical to
our own.
3.23 Protecting the lives of Australians abroad in our region is a priority
for the Government. Defence must have the capability to conduct
evacuation operations for Australians under threat in our immediate
region and other areas as directed, whether in response to natural
disasters or as a consequence of instability.
3.24 Defence must also be prepared to cooperate with Pacific Island
Countries to conduct humanitarian assistance and disaster relief,
security or stabilisation operations in our immediate region as it hasdone successfully in Solomon Islands and in Bougainville and in
response to the devastation of Tropical Cyclone Pam in Vanuatu in

Strategic Defence Objectives

75

3.25 Australia has a strong foundation of longstanding bilateral and multilateral
partnerships with countries in South East Asia which have an interestin maritime security in the region. This includes Indonesia, Singapore,
Malaysia, Brunei, the Philippines, Thailand and Vietnam. Defence will
have enhanced capability to make meaningful contributions to operations
addressing shared regional security challenges and humanitarianassistance and disaster relief efforts. Defence will help build the capacityof regional countries to respond effectively to security challenges throughcontributions to bilateral and multilateral activities such as exercises,
training activities and the Defence Cooperation Program.
3.26 The Government will help shape security in the South East Asia
maritime environment through a strengthened commitment to a strong
security architecture that supports transparency and cooperation. Thisarchitecture includes the East Asia Summit, the ADMM-Plus and theASEAN Regional Forum. Australia’s Defence contributions to theseforums will reflect the importance we place on the value of being
active in regional institutions such as Australia’s participation in all
six ADMM-Plus Experts’ Working Groups.

Contribute military capabilities to coalition operations that
support Australia’s interests in a rules-based global order
3.27 The third Strategic Defence Objective is to work closely with our ally
the United States and other international partners to provide meaningful
contributions to global responses to emergent threats to the rules-based
global order that threaten Australia and its interests.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGYMarch 2015. The ADF’s enhanced maritime forces and amphibious
capability set out in this White Paper means the ADF will have morecapability and will be more responsive and flexible in providing
assistance to our neighbours when requested.

SECTION ONE STRATEGY76

CHAPTER THREE: AUSTRALIA’S DEFENCE STRATEGY

3.28 While Australia has sophisticated and growing military capabilities,
Australia does not have the capacity to unilaterally protect and further
our interests in maintaining a rules-based global order. Our current
military contribution to the multinational United States-led Combined
Maritime Forces in the Middle East region, targeting terrorism, piracy
and drug smuggling, is an example of how we can address security
threats to Australia by working with other like-minded partners. The
ADF will continue to play an important role in coalition operations
where Australia’s Strategic Defence Interests are engaged including ourrole in international efforts to prevent the spread of weapons of mass
destruction.
3.29 Australia will continue contributing to coalition operations withlike-minded countries to combat terrorism. Our Special Forces, Air
Task Group and Building Partner Capacity training mission will continue
their role in the international coalition to defeat Daesh, with progress tobe regularly reviewed. Future contributions to combat terrorism could
draw on a range of defence capabilities, including combat capabilities,
command, intelligence, communications or logistics.
3.30 Within the Indo-Pacific, future operations could include contributing
to security in North Asia and helping to protect the extensive sea lines
of communication that support Australian trade where our interests are
sufficiently engaged. Australia will make important contributions to theprovision of humanitarian assistance and disaster relief at short notice in
the Indo-Pacific region or further afield when required.
3.31 Australia remains one of the most active supporters of the United
Nations and Defence will continue to make tailored contributions
to United Nations operations in the future where it is in Australia’sinterest to do so. In addition to possible contributions to peacekeeping
operations, Defence will continue working with the United Nations
to build its capacity to lead international efforts to respond to globalImplications for force structure and force posture77

security challenges. Our efforts will include providing targeted funding
and expertise to help the United Nations develop standards and training
for its future peacekeeping operations.
SECTION ONE STRATEGY

Implications for force structure andforce posture3.32 To ensure Defence is capable of achieving the Strategic Defence
Objectives, this White Paper sets out the types of forces that Australia
will develop – the force structure – and the disposition and deploymentof those forces – the force posture.
3.33 The Government has directed Defence to use all three Strategic Defence
Objectives to guide force structure and force posture decision making.
The Government recognises the interconnected nature of the global
environment and the fact that Australia’s security and prosperity is
directly affected by events outside our region and is not just linked to ourgeography or confronting threats solely in our maritime approaches. The
direction to use all three Strategic Defence Objectives to guide decision
making also recognises the reality that Australia has the responsibility
and the capability to respond to threats to the rules-based global order.
Over many decades, the ADF has deployed and will continue to deploy
outside of our immediate region in concert with the United States andother like-minded partners, to pursue Australia’s Strategic Defence
Interests and in response to shared global challenges.
3.34 To be able to achieve the Strategic Defence Objectives, Defence willneed to be more agile and adaptable with a broader set of capabilities
from which to draw so that it is able to conduct the full range of tasks
which might be required by Government. The ADF will also needto maintain a high degree of interoperability with the sophisticatedcapabilities which the United States deploys when it leads international
coalitions to address global security challenges.

2016 DEFENCE WHITE PAPERSECTION ONE STRATEGY78

CHAPTER THREE: AUSTRALIA’S DEFENCE STRATEGY

3.35 The Government expects Defence to be able to achieve the three
Strategic Defence Objectives with the force structure and funding set out
in this White Paper. This will require a balanced joint force structure andincreased international cooperation and engagement. The Government’s
specific force structure decisions – based on the Strategic Defence
Objectives – are outlined in Chapter Four. The priority placed oninternational defence cooperation and engagement to meet the Strategic
Defence Objectives is discussed further in Chapter Five.

79

Intentionally blank2016 DEFENCE WHITE PAPER

80

SECTION TWO
capability
CHAPTER FOUR

The Future Australian Defence Force

CHAPTER FIVE

Positioning Defence for Tomorrow's Challenges

CHAPTER SIX

People

82

4

83
`` Chapter Four: The Future
Australian Defence Force
A more capable, agile and potent future force supported by an effective
Defence organisation is essential to protect Australia’s security andprosperity over the coming decades. Through this Defence White
Paper the Government will provide Defence with the funding necessary
to develop a more potent and capable set of options to respond to
emerging and unexpected challenges to Australia’s three Strategic
Defence Interests.

4.2

To ensure Australia maintains an ADF with the highest levels of militarycapability, the Government is making a significant long-term investment
in Defence’s warfighting equipment and supporting systems, researchand development, and the skills and training of our Defence people.

4.3

With this new level of capability, the future ADF will be better able toachieve the three Strategic Defence Objectives. The future ADF will
be more capable of operations to deter and defeat threats to Australia,
operate over long distances to conduct independent combat operations
in our region, and make more effective contributions to international
coalitions that support our interests in a rules-based global order. The
increased capabilities of the ADF will also enhance our ability to operatewith the United States.

4.4

A major investment will be made in modernising and enhancing
the potency, range and capacity of our maritime capabilities. New
investments will include the next generation of submarines, surface
warships, surveillance aircraft and support vessels. Our Army will havemore firepower, mobility and amphibious capabilities, while soldiers
will receive more lethal weapons and improved protection. Our Air Forcewill operate new strike, reconnaissance and transport aircraft with newinvestments focusing on better integrating their capabilities.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.1

SECTION TWO CAPABILITY

84

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

4.5

There will be more emphasis placed on the joint force – bringing
together different land, air, sea, intelligence, electronic warfare, cyberand space capabilities so the ADF can apply more force more rapidly
and more effectively when called on to do so. A new permanent futureforce design function in Defence will strengthen Defence’s capacity todeliver joint and integrated capabilities.

4.6

As well as investing in high-end warfighting equipment, the Government
will increase investment in the vital enabling capabilities that bindmilitary capabilities together to maximise Defence’s operational
effectiveness. Key enablers include ADF bases, logistics systems(including fuel and explosive ordnance facilities), upgraded training andtesting facilities, health services and information, communications andtechnology equipment.

4.7

The Government will recognise the fundamental input to defence
capability provided by Australian defence industry to ensure it delivers
the support Defence needs.

Designing the future force
4.8

The Government’s plans described in this White Paper will build on thestrong foundation of the current ADF to deliver a more capable, agile
and potent high-technology force that can achieve the Strategic Defence
Objectives.

4.9

The Government will strengthen Defence capability in six capability
streams:``

the Intelligence, Surveillance, Reconnaissance, Space, Electronic
Warfare and Cyber capabilities that ensure our forces have superior
situational awarenessDesigning the future force

the Maritime and Anti-Submarine Warfare capabilities that will
enable our forces to operate in more challenging maritime threat
environments``

the Strike and Air Combat capabilities that will provide our forces
with greater flexibility in responding to threats independently or as
part of coalition operations``

the Land Combat and Amphibious Warfare capabilities that will
provide our forces with greater capacity to conduct both combat
and non-combat operations``

the Key Enablers essential to supporting the operation andsustainment of Defence``

the Air and Sea Lift capabilities that will help overcome the huge
distances over which the ADF is deployed and has to be supplied.

Air and Sea Lift 6%

ISR, EW, Space and Cyber 9%

Key Enablers 25%
Maritime and Anti-Submarine
Warfare 25%

Strike and Air Combat 17%

Land Combat andAmphibious Warfare 18%

Enabled, Mobile and Sustained

Figure 3:

Decision Superiority

Potent and Agile Offensive Capabilities

Ten Year Division of Investment by Capability Stream to FY 2025–26

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

``

85

86

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

Capability priorities

SECTION TWO CAPABILITY

4.10 The Government’s major capability priorities against each of thesix capability streams are outlined below. A more detailed accountof the ADF’s capabilities and equipment is provided in the 10-year
Integrated Investment Program accompanying this Defence White
Paper. The Integrated Investment Program allocates approximately$195 billion in the decade to 2025–26 for investment in new andenhanced capabilities. The significant investment in new capabilities
means that Defence will also need to increase the numbers and skillsof ADF and Australian Public Service personnel. The Defence personnel
implications are explained in Chapter 6.

Intelligence, Surveillance and Reconnaissance, Space,
Electronic Warfare, and Cyber Security
Intelligence, Surveillance and Reconnaissance
4.11 To ensure our forces can continue to operate effectively and safely in
our region and globally, they need a comprehensive understanding,or situational awareness, of what is happening around them. Having
situational awareness is essential to making sure our forces havedecision-making superiority – knowing more about a situation andknowing it sooner than an adversary does so that our forces have an
advantage in planning and conducting operations.
4.12 To ensure the ADF has decision-making superiority and to enhance
the ADF’s ability to effectively and safely conduct operations, theGovernment will make a substantial new investment to strengthen
Defence’s intelligence, surveillance and reconnaissance capabilities.
This includes upgrading our current air defence network (including theVigilaire air surveillance system and the Jindalee Operational Radar
Network) and introducing new, modernised all-source intelligencesystems supported by enhanced information processing capabilities.

Capability priorities

87

4.13 The Government will increase the capacity of the ADF to monitor theapproaches to Australia with the P-8A Poseidon maritime surveillance
and response aircraft and the high altitude MQ-4C Triton unmanned
aircraft. Short-range maritime tactical unmanned aircraft will be acquired
to improve the situational awareness of our ships on operations.
Space

4.15 Satellite systems are vulnerable to space debris, which could damage
or disable satellites, and advanced counter-space capabilities, such as
anti-satellite missiles, which can deny, disrupt and destroy our spacebased systems. It is therefore important to be able to detect and track
objects in space so Defence can plan to manage the effects of any
possible damage to our space-based capabilities.
4.16 In cooperation with the United States, Australia is strengthening its
space surveillance and situational awareness capabilities. At the centreof this work is the establishment of the space surveillance C-band radar
operated jointly by Australia and the United States, and the relocationof a United States optical space surveillance telescope to Australia.
Both assets will be located at the Harold E. Holt Naval Communications
Station near Exmouth in Western Australia. The radar and telescope will
increase our capacity to detect and track objects in space, including
space debris, and predict and avoid potential collisions. Additional

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.14 Space-based systems for intelligence collection, communications,navigation, targeting and surveillance play a vital role in all ADF andcoalition operations. Defence’s imagery and targeting capacity will beenhanced through greater access to allied and commercial space-based
capabilities, strengthened analytical capability and enhanced support
systems. Enhancements to our imagery capacity will provide the basis
to further develop our intelligence, surveillance and reconnaissancecapabilities in the longer term, including through potential investment inspace-based sensors.

88

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

investment is planned in ADF space capability, including space-based
and ground-based intelligence, reconnaissance and surveillancesystems.
Electronic Warfare

SECTION TWO CAPABILITY

4.17 The ability of our forces to control the electromagnetic environment can
provide a decisive tactical advantage. Defence must be able to protect
and defend electronic systems, such as radar, command and control andthe communications and intelligence systems that the ADF relies on to
conduct operations, while denying or degrading the electronic systemsof an adversary.
4.18 The Government will enhance command and control, and other spectrum
management systems, to support a joint approach to electronic defence
and attack. The Government will strengthen electronic warfare support
to naval, air and land forces for operations in hostile electromagnetic
environments including through the introduction of new long range
electronic warfare support aircraft based on a long-range commercial
business jet in the early 2020s. The fleet of 12 E/A-18G Growler
electronic warfare aircraft to enter service from 2018 will be periodicallyupgraded over their operational lives to maintain commonality with theGrowler fleet operated by the United States.
Cyber Security
4.19 The Government is committed to ensuring that Australia can address
the growing cyber threat including through enhanced cooperation with
the United States and our other international partners. Defence makes acritical contribution to Australia’s whole-of-government cyber-security
efforts, ensuring the integrity of Australian government information andsystems. This includes the invaluable work of the Australian Signals
Directorate. Defence will continue to work closely with other agencies toprotect Australian interests in the cyber domain, including through themulti-agency Australian Cyber Security Centre.

Capability priorities

89

4.20 The Government will strengthen Defence’s cyber capabilities to protect
itself and other critical Australian government systems from malicious
cyber intrusion and disruption. Enhancing the resilience of Defence
networks, including networks used by our deployed forces, and thecapability of the Australian Cyber Security Centre are key areas of focus instrengthening Australia’s cyber defences. This will include considerable
new investment in strengthening the Defence cyber workforce, including
new military and APS positions and training programs.
4.21 The Government will also establish a research and development
capability to help strengthen the defences of the ADF’s military
information systems against cyber attack.

Maritime Operations and Anti-Submarine Warfare Forces

4.23 Modernising our maritime capabilities will be a key focus for Defence
over the next 20 to 30 years. Our maritime forces will become morepotent through the acquisition of more capable submarines, ships
and aircraft and better integration of combat and supporting systems
across Defence. These forces will help to protect our maritime borders,secure our immediate northern approaches and proximate sea lines
of communication and enable us to project force in the maritime

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.22 Highly capable and versatile naval and maritime forces are vital to our
defence strategy. Australia’s naval and maritime forces must be able toundertake a wide range of activities in support of the Strategic Defence
Objectives and operate across huge distances. The area of Australia’s
maritime zones, including our Exclusive Economic Zone, is one of thelargest in the world, with a total marine area of around 10 million square
kilometres. Australia is also responsible for covering one of the largest
search and rescue areas in the world, some 53 million square kilometresof the Indian, Pacific and Southern Oceans. Our naval and maritime
forces deploy around the world for training, exercises and to participate
in coalition operations to support the rules-based global order.

90

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

environment. Increasingly, these capabilities will provide an ability toundertake anti-submarine warfare throughout the maritime environment.
4.24 Defence’s ability to contribute to border protection will be enhancedwith the introduction of larger, more capable offshore patrol vessels
with greater range, endurance and improved carrying capacity and a
new large-hulled multi-purpose patrol vessel, the Australian Defence
Vessel Ocean Protector. The Government will invest in enhancements
to multiple layers of the maritime surveillance system including newmanned and unmanned aircraft.

SECTION TWO CAPABILITY

Submarines
4.25 Submarines are an essential part of Australia’s naval capability, providing
a strategic advantage in terms of surveillance and protection of ourmaritime approaches. The Government has determined that regionallysuperior submarines with a high degree of interoperability with theUnited States are required to provide Australia with an effective deterrent,
including by making a meaningful contribution to anti-submarine warfare
operations in our region. The key capabilities of the future submarine
will include: anti-submarine warfare; anti-surface warfare; intelligence,
surveillance and reconnaissance; and support to special operations.
4.26 The Government will increase the size of the submarine force from six
to 12 boats. The doubling in size of the submarine fleet recognisesthat Australia will face a more challenging maritime environment in thedecades ahead. By 2035, around half of the world’s submarines will
be operating in the Indo-Pacific region where Australia’s interests aremost engaged. Australia has one of the largest maritime domains in theworld and we need the capacity to defend and further our interests fromthe Pacific to the Indian Oceans and from the areas to our north to theSouthern Ocean. Submarines are a powerful instrument for deterring
conflict and a potent weapon should conflict occur.

Capability priorities

91

4.27 Australia’s new submarines will be supported by upgrades to enablers
and facilities such as wharves and port facilities, as well as simulators,
training and submarine rescue systems. The key strategic requirements
for the future submarines include a range and endurance similar to the
Collins Class submarine, sensor performance and stealth characteristics
which are superior to the Collins Class, and upgraded versions of the
AN/BYG-1 combat system and Mark 48 MOD 7 heavyweight torpedo
jointly developed between the United States and Australia as thepreferred combat system and main armament. The new submarines will
have advanced communications systems to link with other Navy ships
and aircraft to conduct anti-submarine warfare operations.

4.29 During the long life of the new submarines, the rapid rate oftechnological change and ongoing evolution of Australia’s strategic
circumstances will continue. As part of the rolling acquisition program, areview based on strategic circumstances at the time, and developments
in submarine technology, will be conducted in the late 2020s to
consider whether the configuration of the submarines remains suitable
or whether consideration of other specifications should commence.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.28 The acquisition of the 12 future submarines will commence in 2016 withthe first submarines likely to begin entering service in the early 2030s.
Construction of the 12 new submarines will extend into the late 2040s to
2050 timeframe. The length of the construction process will mean that
Australia will need to be planning the follow-on submarine well before
the last new submarine enters service. To ensure no capability gap andthe ability to progress development of a replacement submarine in the
2050s, the Government has decided to implement a rolling acquisition
program for Australia’s submarine fleet. A rolling acquisition program
will ensure that Australia is able to maintain a fleet of 12 regionallysuperior submarines as submarine and anti-submarine technologies
develop over the coming decades.

92

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

4.30 The future submarine program is the largest defence procurement
program in Australia’s history. The Government has already committed tomaximising Australian industry involvement in the submarine program,without compromising cost, capability, schedule or risk. The Government
will announce the results of a Competitive Evaluation Process in 2016.

SECTION TWO CAPABILITY

4.31 The Government will also continue to make appropriate investmentsin the existing Collins Class fleet, including priority capability
enhancements, obsolescence management and fleet sustainment, toensure Australia’s potent and agile submarine capability is maintained
until the introduction of the future submarine fleet. This will include
upgrades to the Collins Class communications and sensor capabilities.
4.32 This investment will build on recent improvements to Collins Classavailability. In 2011–12, Collins Class availability was about half thatof the international benchmark and in the past there had been up to
three submarines undergoing long-term maintenance. Following the2012 Coles Review and implementation of a comprehensive andinnovative transformation plan, there has been a major improvementin the availability of the Collins Class, and Defence is on track to reachthe international benchmark for submarine availability by mid-2016.
By mid-2016, the submarine HMAS Farncomb will have completed thefirst two-year full cycle docking in Adelaide – a maintenance activity
that formerly took over three years to complete. From then onwards only
one Collins Class submarine will be in Adelaide for full cycle docking.
Defence will continue to work closely with industry to implement
reforms to optimise Collins Class availability, reliability and capability.
Surface Vessels
4.33 Surface vessels will continue to play a critical role in protecting oursovereignty, maintaining presence and projecting force into the region
and beyond. They are an important component of our joint force and will
operate as a highly integrated part of our force with enhanced situationalawareness, communications and data sharing between maritime, air andCapability priorities

93

land-based systems. Our surface vessels must be capable of independent
Australian operations, as well as operating in coalition taskforces. They
must also contribute to a wide range of whole-of-government priorities,
including border security, search and rescue, and humanitarian assistanceand disaster relief operations.

4.35 The Government will acquire 12 new offshore patrol vessels that will
provide greater reach and endurance than the existing Armidale Classpatrol boat fleet. The new vessels will be capable of undertaking
several different roles including enhanced border protection and patrol
missions over greater distances than is currently possible with theexisting patrol boat fleet, with construction to start in 2018. All 12
offshore patrol vessels will be delivered by 2030. The Armidale Class
will be supplemented by additional patrol craft as required until they
are replaced by the offshore patrol vessels, to ensure there is no gap inNavy’s border protection capability.
4.36 The mine countermeasures and military hydrography capability will
be updated to support the future force. The life of four of the current
Huon Class mine hunters will be extended while new technologies aredeveloped to counter the threat of maritime mines. Defence will seek
to replace the hydrographic capability with an efficient combinationof military and commercial hydrographic and oceanographic survey
capabilities.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.34 Key elements of new naval capability will include 12 major surface
vessels. The three Hobart Class Air Warfare Destroyers to enter into
service in the early 2020s will provide Australian or coalition maritime
task groups with defence against air and missile attack. The Hobart
Class will be equipped with new advanced surface to air missiles toenter service by the middle of the next decade. Nine new future frigates
optimised for anti-submarine warfare will be introduced into service
from the late 2020s to replace the existing fleet of eight Anzac Classfrigates, with construction to start in 2020.

94

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

Maritime Aviation

SECTION TWO CAPABILITY

4.37 Eight P-8A Poseidon maritime surveillance and response aircraft will
be introduced in the early 2020s, with seven additional aircraft to beacquired in two tranches to bring the total to 15 aircraft by the late
2020s. These aircraft have a range of over 7,500 kilometres, and canbe refuelled in the air by Australia’s KC-30A air-to-air refuelling aircraft,
extending their range even further. In addition to being able to undertake
sophisticated surveillance operations at great distances, the P-8A canundertake offensive operations against submarines and ships, as well as
supporting search and rescue operations.
4.38 To complement the surveillance capabilities of the Poseidon, theGovernment will acquire seven high altitude MQ-4C Triton unmanned
aircraft from the early 2020s as part of the Intelligence, Surveillance
and Reconnaissance capability stream. The Triton is an unarmed,
long-range, remotely piloted aircraft that will operate in our maritime
environment, providing a persistent maritime patrol capability andundertaking other intelligence, surveillance and reconnaissance tasks.
Short-range maritime tactical unmanned aircraft will be acquired to
improve the situational awareness of our ships on operations.
4.39 Currently entering into service, 24 MH-60R Seahawk naval combat
helicopters will enhance the anti-ship and anti-submarine warfare
operations undertaken by our destroyers and frigates. Navy will also
employ MRH-90 utility helicopters, and will work closely with Army foramphibious operations.

Strike and Air Combat
4.40 A potent strike and air combat capability is essential to our ability todeter attempts to coerce or attack Australia and our national interests,
including the ability to seize the initiative, and defeat potential threats as
far from Australia as possible.

Capability priorities

95

4.41 The ADF must be prepared to carry out offensive strike operations
against the military bases and in-transit forces of a potential adversary.
It will achieve this through strategic strike capabilities, including air
strike and special operations capabilities. More potent strike capabilities
allow Australia flexibility in rapidly responding to threats against
Australia and providing military contributions to coalition operations in
our region and globally.
Strike and Air Combat

4.43 The Government will increase investment in capabilities to better
connect the communications, sensor and targeting systems of various
ADF platforms, including the Joint Strike Fighters, Wedgetail, Hobart
Class Air Warfare Destroyers and Growlers. Being able to quickly
exchange information, such as the location of threats, means the ADF
can combine its already potent individual capabilities more effectively
during joint operations – generating greater combat weight and lethality.
4.44 The Government will acquire advanced air defence and high-speed,
long-range strike weapons for the air combat fleet capable of attacking
land and maritime targets. Two additional KC-30A air-to-air refuellers

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.42 The ADF will be equipped with a potent and technologically advanced
strike and air combat capability over the next decade, building on thecurrent fleet of 24 F/A-18F Super Hornets, six E-7A Wedgetail Airborne
Early Warning and Control aircraft and five KC-30A air-to-air refuelling
aircraft. In addition to 12 EA-18G Growler Electronic Attack aircraft
which will enter service from 2018, 72 F-35A Lightning II Joint StrikeFighters will begin to enter operational service from 2020 to replace
the Classic Hornets. Options to replace the Super Hornets in the late
2020s will be considered in the early 2020s in light of developments intechnology and the strategic environment and will be informed by ourexperience in operating the Joint Strike Fighters. The Government will
also acquire new air combat training systems as part of the Key Enablers
capability stream.

96

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

will be introduced into service before the end of this decade, for a totalof seven, to extend the range and endurance of our combat aircraft
and surveillance platforms. Consideration will be given to a follow-on
acquisition of further air-to-air refuellers, to take the refueller fleet tonine aircraft, to support new aircraft types such as the P-8A Poseidon
maritime surveillance aircraft.
4.45 To enhance the defences of our deployed forces against attacks, newdeployable short range ground-based air defence weapons will enter
service by the early 2020s to replace the existing RBS-70 system. New
medium-range ground-based air defence weapons will be acquiredin the mid to late 2020s to help protect valuable assets, including
deployed airfields and command centres.
SECTION TWO CAPABILITY

Other Strike Capabilities
4.46 The Government will ensure that our maritime and land forces have
improved strike capabilities. This will include acquisition of new
deployable land-based anti-ship missiles to support operations toprotect deployed forces and vital offshore assets such as oil and natural
gas platforms.
Missile Defence
4.47 The Government is concerned by the growing threat posed by ballistic
and cruise missile capability and their proliferation in the Indo-Pacificand Middle East regions. While the threat of an intercontinental
ballistic missile attack on Australia is low, longer-range andsubmarine-launched ballistic and cruise missiles could threaten
Australian territory, and shorter-range ballistic and cruise missiles posea threat to our deployed forces.
4.48 Australia is committed to working with the United States to counterthe ballistic missile threat. Australia and the United States haveestablished a bilateral working group to examine options for potential
Australian contributions to integrated air and missile defence in theCapability priorities

97

region. Australia’s priorities for the working group are to develop a
more detailed understanding of options to protect our forces which are
deployed in the region from ballistic missile attack.
4.49 The Government will upgrade the ADF’s existing air defence surveillancesystem, including command, control and communications systems,
sensors and targeting systems, which could be used as a foundation
for development of deployed, in-theatre missile defence capabilities,
should future strategic circumstances require it. The Government
will also acquire new ground-based radars from around 2020 andwill expand Australia’s access to situational awareness information,
including space-based systems.

Land Combat and Amphibious WarfareLand Forces
4.51 The soldier is at the heart of land force capability. The last decadeof operations has seen substantial investment in equipping soldierswith leading-edge equipment to help them to achieve their missions.
The Government will invest in a program for continuously improving
the personal equipment soldiers use, including their weapons andtargeting equipment, digital communications systems, body armour
and self protection equipment (including for chemical, biological andradiological threats), and night fighting equipment.
4.52 Soldiers in the future Army will be supported by new vehicles andmanned and unmanned aircraft with increased firepower, protection,
mobility, situational awareness and logistics support. The Government

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.50 Achieving Australia’s Strategic Defence Objectives requires land forcesthat have the mobility, firepower, protection and situational awarenessto deploy quickly to where they are needed, achieve their missions
and return home safely. The Government will make significant newinvestments in our land forces, including new combat vehicles,
long-range fire support, amphibious capabilities and Special Forces.

98

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCESECTION TWO CAPABILITY

will replace the Army’s current ageing fleet of mobility andreconnaissance vehicles with a new generation of armoured combat
reconnaissance and infantry fighting vehicles, as well as tank upgrades
and new combat engineering equipment. New general purpose andProtected Mobility Vehicles will be acquired, including 1,100 Australiandesigned and manufactured Hawkei vehicles. The Hawkei’s innovative
design will provide improved protection for soldiers and the vehicle canbe transported by helicopter and will include advanced communications
systems. A replacement for the Bushmaster Protected Mobility Vehicle
will be introduced from around 2025.
4.53 The Government will enhance Army’s firepower with a new long-range
rocket system in the mid-2020s to complement Army’s existing artillery
capability. The new system will be capable of providing fire support todefeat threats to our personnel at ranges of up to 300 kilometres.
4.54 A riverine patrol capability will be re-established from around 2022,
based on a fleet of lightly armed small patrol boats to allow mobility in awide range of riverine environments.
4.55 The Government will introduce enhanced intelligence, surveillance
and reconnaissance capabilities, including armed medium-altitude
unmanned aircraft in the early 2020s, with regular capability upgrades tofollow. The new armed medium-altitude unmanned aircraft will provide
enhanced firepower and intelligence, surveillance and reconnaissance
support to a range of missions including counter-terrorism missions
overseas, while augmenting our surveillance capability for search andrescue, humanitarian assistance and disaster relief and other tasks.
4.56 The Government will replace the 22 Tiger Armed Reconnaissancehelicopters with a new armed reconnaissance capability from themid-2020s.

Capability priorities

99

Amphibious Capability
4.57 The ADF’s capacity for amphibious operations will be substantiallystrengthened. This will be centred on the two Canberra Class large
amphibious ships, HMAS Canberra and HMAS Adelaide, and enhanced
amphibious capabilities. The Canberra Class provides the ADF with thecapability to undertake a range of operations, including supporting thesecurity of maritime South East Asia and Pacific Island Countries andaddressing emergent threats in the broader Indo-Pacific region.

Special Forces
4.59 Australia’s Special Forces are able to undertake complex tacticaloperations across a range of combat environments. This includes arange of specialist response options while deployed overseas, including
supporting air strikes, reconnaissance and rescue missions. Special
Forces are also responsible for domestic counter-terrorism roles whenrequired.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.58 The Army’s restructuring and development over the last decade has
provided a foundation for further enhancement so that our land force iscompatible with amphibious operations involving the Canberra Classamphibious ships. The Canberra Class ships provide Australia with ahighly capable and sophisticated amphibious deployment capability.
Capable of transporting over 1,000 personnel, their weapons, vehicles
and stores, and deploying these forces by helicopter and watercraft,
the Canberra class vessels have highly capable medical facilities,
including a primary casualty reception facility, as well as an ability tocommand and control forces ashore. The Government will further invest
in enhancements to the ADF’s amphibious capability, including to thesensors, countermeasures and weapons on board the Canberra Classships. This capability will be developed further over time, taking accountof our experience in operating the Canberra Class.

100

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

4.60 Australia’s Special Forces will draw on a range of new capabilities
from across the capability streams. Special Forces will be provided
with new weapons and situational awareness, communications andtarget acquisition equipment for combat operations. A new capability
for the ADF will be introduced with the acquisition of dedicated lighthelicopters to support Special Forces operations. These light helicopters
can be rapidly deployed in C-17s, and can insert, extract and provide
fire support for small teams of Special Forces undertaking tasks ranging
from tactical observation through to counter-terrorism missions, or
hostage recovery.

SECTION TWO CAPABILITYKey Enablers
4.61 Enabling capabilities include critical infrastructure (such as bases,
training ranges, ports and airfields), information and communications
technology, logistics, science and technology and health services.
These capabilities are fundamentally essential to the effective operationof the ADF’s most potent and capable combat systems, including its
ships, aircraft, land forces and other systems.
4.62 Funding cuts in recent years have led to under-investment in the enablers
essential to building a joint and networked force. The Government’s
decisions in this Defence White Paper recognise the importance ofbalanced investment in modern advanced technology warfighting
systems and the enablers needed to operate and sustain them.
Defence Bases
4.63 Reliable access to essential military bases, wharves, ports, airbases,
training ranges and fuel and explosive ordnance infrastructure underpins
the ADF’s ability to conduct and sustain operations in Australia andinto the region. Defence also requires secure facilities to support thedevelopment of sensitive new technologies and capabilities, such as the
Woomera Prohibited Area, the largest weapons testing land range in theCapability priorities

101

world. The Government will implement a range of Defence infrastructure
initiatives to support future ADF operations.
4.64 Over the next 10 years HMAS Stirling (Western Australia) will beenhanced though wharf upgrades and new training and support facilities.
Garden Island (New South Wales) will also be upgraded to enable it
to continue to support an expanded fleet and accommodate larger
platforms such as the Canberra Class amphibious ships and Hobart
Class Air Warfare Destroyer.
4.65 New and upgraded facilities and infrastructure will be establishedover the course of this decade at RAAF Bases Williamtown, Tindal,
Townsville, Darwin, Curtin, Scherger, Learmonth, Pearce and Edinburgh,
and Defence Establishment Myambat, including in support of theoperation of the Joint Strike Fighter.

4.67 The Government will complete the Defence Logistics Transformation
Program in 2016 that provides a once in a generation opportunity
to transform Defence’s logistics contracts, facilities and systems todrive efficiency. The project is modernising and enhancing Defence’s
wholesale storage, distribution and land materiel functions andproviding enhanced logistics facilities at Moorebank (New South Wales),Bandiana (Victoria), Amberley and Townsville (Queensland), Palmerston(Northern Territory), Edinburgh (South Australia) and Guildford and
HMAS Stirling (Western Australia).
4.68 Defence fuel installations are critical enablers for the generationof defence capability. The Government will continue to remediate
Defence’s fuel storage and distribution installations and improve2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.66 The Government will similarly upgrade RAAF Bases Edinburgh, Darwin,
Pearce, and Townsville and the airfield at Cocos (Keeling) Island tosupport introduction of the new P-8A Poseidon maritime surveillance
and response aircraft.

102

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

Defence’s fuel resilience and capacity to transport bulk fuel to support
our bases and operations. This will include upgrades to existing Defence
fuel infrastructure as well as improvements to our ability to utilise
commercial fuel supplies.

SECTION TWO CAPABILITY

4.69 As previous reviews have highlighted, basing requirements to support
the larger and heavier ADF to be introduced over the coming decades
will place significant pressure on Defence and civilian infrastructure inAustralia. Climate change will also place pressure on the Defence estate,with sea level rises having implications for Navy bases and more extreme
weather events more frequently putting facilities at risk of damage.
4.70 Beyond 2025, the Defence estate footprint will need to be further
developed to accommodate our new high technology capabilities
and ensure that Defence is appropriately postured for future strategic
requirements and the implications of climate change. This will involve
developing new bases, wharves, airfields and training and weapons
testing ranges. It will also include considering the long-term futureof some Defence bases, such as Garden Island in Sydney Harbour,
as issues such as urban development, encroachment and capacity
constraints within existing infrastructure affect the ADF’s ability to safely
and effectively execute its mission.
4.71 Effective environmental management is an important part of successfully
managing and ensuring the long-term sustainability of the Defence
estate. The Government expects Defence to take its environmental
stewardship responsibilities seriously, and to comply with relevant
environmental legislation and regulations, including the protection of
biodiversity on Defence bases.
4.72 Further details on the Government’s major capital facilities plans areincluded in the Integrated Investment Program accompanying thisWhite Paper.

Capability priorities

103

Northern Australia
4.73 As outlined in the White Paper on Developing Northern Australia
released on 18 June 2015, the Government is committed to astrengthened Defence presence in northern Australia.
4.74 Defence’s presence and investment in northern Australia over the next
decade will gradually increase to support the needs of the more capable,high technology future force that Defence will bring into service and amore active defence posture.

4.76 Infrastructure works at RAAF Tindal and Cocos (Keeling) Islands will beneeded to ensure airfields and associated facilities can support the newfleet of P‑8A maritime surveillance and response aircraft.
4.77 In support of Australia’s Strategic Defence Objectives, Navy requires
access to secure bases in northern Australia. As Navy’s fleet becomeslarger over the years, both in the number and size of ships, Navy bases
in northern Australia will require significant upgrades. This includes
upgrades to support the introduction of the larger and more capable
offshore patrol vessels. Consideration will be given to constructing aroll-on/roll-off wharf in Darwin to support our amphibious capability
based around our two Canberra Class amphibious ships.
4.78 A number of ADF training areas in northern Australia will receive upgradesby 2020, including Shoalwater Bay (Queensland), Bradshaw Field
Training Area (Northern Territory) and Yampi Sound (Western Australia)

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.75 Investment in infrastructure in northern Australia to support the ADF’s
strike and air combat capabilities, including Joint Strike Fighters,
Wedgetail airborne early warning and control aircraft and air-to-air
refuellers, will include upgrades to RAAF Tindal in the Northern Territory,
RAAF Scherger in Queensland, and RAAF Bases Learmonth and Curtin in
Western Australia.

104

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

along with a range of ADF bases such as Lavarack Barracks (Townsville),
Robertson and Larrakeyah Barracks (Darwin) and RAAF Darwin.

SECTION TWO CAPABILITY

4.79 These investments will support the future force’s heightened programof international engagement, including the annual rotation of UnitedStates military forces under the United States Force Posture Initiatives.
The Government will expand the range of training, exercises and otheractivities with our international defence partners in northern Australia.
4.80 The Government will upgrade facilities at the Harold E. Holt
Communications Facility in Exmouth, Western Australia to support ourenhanced space situational awareness and communications capabilities,
and will similarly upgrade the Jindalee Operational Radar Network andother surveillance and air-defence related facilities in northern Australia
over the next decade.
4.81 In the longer-term, the Government will consider a new Northern
Advanced Joint Training Area to support large‑scale, joint and combined
amphibious training and a potential rail link to RAAF Tindal to support
the transporting and handling of explosive ordnance and bulk fuel.
The Government will carefully consider the positioning of major
Defence bases in northern Australia, commensurate with operational
requirements in the north and as broader development places greaterpressure on Defence facilities.
Information and Communications Technology
4.82 The Defence information and communications technology system is
one of the largest in Australia. Modern, secure, and highly effective
information and communications technology is critical to maximise thecombat effects of an integrated and networked ADF. This includes thedispersed, fixed, deployable and mobile networks that underpin ADF
operations and the information that enables intelligence, surveillance,
reconnaissance, communications, logistics, command and control andenterprise management.

Capability priorities

105

4.83 Underinvestment in information and communications technology overthe last decade, coupled with the lack of a coherent enterprise-levelstrategy for Defence’s complex and rapidly evolving information andcommunications requirements, has led to serious degradation across theinformation and communications capabilities of Defence. Key capabilities
need urgent remediation, in particular to address the shortcomings ofout-dated, and in some cases obsolete, systems that inhibit the conductof day-to-day business within Defence, with overseas allies and partners,
and with industry and the community more broadly.

4.85 The Government will modernise the Defence information andcommunications technology architecture that supports war-fighting andsecure Defence communications, which will involve a challenging digitaltransformation effort. Defence will work with the Digital Transformation
Office to ensure that Defence's plans to modernise its information andcommunications technology architecture reflect best practice.
4.86 Defence networks will be made more secure and key information
management and operational communications and command andcontrol systems will be upgraded. Priority will be given to strengthening
the resilience and redundancy of satellite-based communications.
4.87 The Government will make a significant new investment in information
management capabilities to ensure that the right information is available
to Defence decision makers, at the right time. These investments will
ensure that our armed forces are able to respond quickly to emerging
threats, as well as ensuring Defence’s business processes become more
effective and efficient.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.84 Defence will need to be more agile and flexible if it is to meet its
information and communications requirements in the decade ahead.
As technology life cycles continue to shorten, Defence must beable to move more quickly to acquire contemporary information andcommunications systems; this will ensure that Defence maintains atechnological edge, while also simplifying maintenance and security.

106

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

Training Systems

SECTION TWO CAPABILITY

4.88 The ability of the ADF to successfully conduct operations is underpinned
by its world class training. The introduction of new high technology
capabilities into the ADF in the coming decades, and the more complex
strategic and operational environment of the future, means it is critical toinvest in new training systems to prepare ADF members to operate thesesystems and conduct complex missions.
4.89 To support the new types of equipment and weapons systems being
acquired, our simulators, training ranges and testing facilities will
be upgraded. Advanced joint training systems will include platform
simulators and systems that link multiple real-life activities andsimulators together to allow for large-scale joint training and mission
rehearsal. Training ranges and testing facilities such as experimentationand proofing ranges will be upgraded.
Strategic and International Policy
4.90 Defence’s strategic and international policy capabilities and international
engagement are an important part of building Defence capability andensuring Defence’s posture protects Australia’s security and prosperity.
More information on how the Government will reshape Defence’s
posture, including international engagement, is set out at Chapter Five.

Air and Sea Lift
4.91 The ADF operates over vast distances wherever Australia’s interests areengaged at home or overseas. The transit from Sydney to Perth alone isalmost as far as the transit from Bangkok to Beijing. Australia’s maritime
zones, one of the largest in the world, are greater in size than Australia’s
land mass. The ADF must be able to operate over even greater distances
into our region and across the world to protect Australian interests.

Capability priorities

107

4.92 The long distances over which the ADF is required to operate means
capable, flexible and high endurance air lift and sea lift capabilities tolift, move, and sustain the ADF are an essential force element. The ADF
also needs to have the lift capacity to be highly mobile within any areaof operations.
4.93 The ADF’s air lift capability will comprise eight heavy lift C-17A
Globemasters with additional heavy lift aircraft to be acquired later,
12 upgraded C-130J Hercules, 10 C-27J Spartans, and 10 CH-47F
Chinook helicopters (involving the acquisition of an additional three
Chinooks in the near term) which will complement the Army’s MRH-90
battlefield lift capability. The future acquisition of two additional KC-30A
air-to-air refuellers, for a total of nine, will provide substantial additional
air lift support.

4.95 Sea lift capability will be strengthened by upgrading the logistics
support ship HMAS Choules, including improved command andcommunications equipment and new self-defence systems forprotection against torpedoes, anti-ship missiles and fast attack craft.
HMAS Choules and the two Canberra Class amphibious ships will offer
flexible options to conduct sea lift and support amphibious operations.
We have also acquired a new large-hulled multi-purpose patrol vessel,
the Australian Defence Vessel Ocean Protector, in support of borderprotection and resource security operations.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.94 Currently, the ADF does not have a dedicated capability for combat
search and rescue, and has limited battlefield aero-medical evacuation
capabilities. The Government will acquire enhanced aero-medical
evacuation and search and rescue capabilities, commencing with
upgrades to Chinook helicopters to improve their ability to conduct
aero-medical evacuation. In the longer-term, the Government will
investigate options to enable the ADF to undertake combat search andrescue tasks more speedily and at longer range.

108

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

4.96 The surface fleet will be supported by two new replenishment vessels to
be introduced into service by the early 2020s. These vessels will replace
the current mixed fleet of one replenishment ship and one oiler which
carries fuel only. A third replenishment or additional logistics vessel will
follow in the late 2020s.

Industry, innovation, research and development

SECTION TWO CAPABILITY

4.97 Defence’s ability to achieve the Strategic Defence Objectives relies on
its access to high levels of capability and technology. This requires afocus on critical support from Australian defence industry to deliverwarfighting equipment and partnering with Defence to deliver
leading-edge innovation and research.
4.98 Australian defence industry is a fundamental input to the Government’s
plan to strengthen defence capability. Australian defence industry
provides a range of critical direct and supporting services to defence
capability and operations. Australian defence industry builds andservices Defence equipment and bases, and provides and supports
Defence’s information and communications technology. Australian
defence industry underpins our national defence support base,delivering logistics services, health support, fuel, energy and othersupport that enable the ADF to operate effectively. Australian defence
industry is a major contributor to innovation in how defence equipment
is employed and upgraded.

A new approach to Australian defence industry policy
4.99 The Government’s approach to Australian defence industry andinnovation policy aims to maximise the defence capability necessary
to achieve the Government’s defence strategy supported by aninternationally competitive and innovative Australian industrial base. The
focus will be on the small to medium enterprises that are the incubators
for advanced defence capability in Australia.

Industry, innovation, research and development

109

4.100 The Government recognises that Australian defence industry has faced
major challenges as a result of underinvestment in Defence, and theaccompanying volatility in Defence funding. This Defence White Paper,
the Defence Industry Policy Statement and the Integrated Investment
Program provide Australian defence industry with a comprehensive
policy framework to inform the contribution industry will need tomake to Australia’s long-term security, including the development ofcapability, infrastructure and skills for the future.

4.102 Recognising that an internationally competitive Australian defence
industry is a Fundamental Input to Capability means that it will bemandatory to consider Australian defence industry in the formal
capability development process, helping to better match thedevelopment of new capabilities with Australian defence industry’s
ability to deliver them. Australian defence industry will be given thesame consideration as the existing Fundamental Inputs to Capability:
Personnel; Organisation; Collective Training; Major Systems; Supplies;
Facilities and Training Areas; Support; and Command and Management.
4.103 The Government requires Defence to be a smart buyer to maximise
Defence capability and value for money for the Australian taxpayer.
Defence’s ability to be a smart buyer relies on a stronger relationshipwith Australian defence industry to provide expertise in managing
projects. The Government has strengthened Defence’s relationship2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.101 The Government will better link our capability needs with Australian
defence industry’s capacity to deliver and we will ensure that thedecisions we make about defence capability take proper account ofAustralian defence industry. For the first time, the Government willrecognise the vital role of an internationally competitive Australian
defence industry as a Fundamental Input to Capability. The Fundamental
Inputs to Capability are those essential inputs which together combine
to achieve capability – reflecting that it requires more than simply
purchasing equipment to achieve capability.

110

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

with Australian defence industry and cut red tape by creating the new
Capability Acquisition and Sustainment Group, and will streamline
tendering and contracting processes and create more opportunities totailor and fast track projects.

SECTION TWO CAPABILITY

4.104 The Government is replacing the previous Priority Industry Capability
and Strategic Industry Capability framework with a clearer and simpler
framework to prioritise and direct Defence’s support to Australian defence
industry. We have streamlined the numerous industry and innovation
programs operating in Defence into two key initiatives that have clear andmeasurable outcomes for defence capability – a new Centre for Defence
Industry Capability and a new approach to Defence innovation.
4.105 The Centre for Defence Industry Capability, funded at about $230 million
across the decade to 2025–26, will connect Defence needs with theinnovation and expertise of Australian defence industry, as well as help
grow a competitive, sustainable Australian defence industry base. The
Centre for Defence Industry Capability will be co-chaired by a seniorprivate sector representative and a senior executive from Defence. The
Centre for Defence Industry Capability will help build defence capability
and promote Australian defence industry competitiveness by providing:``advice and funding to help Australian defence industry build its
skills and capabilities``

development support for small to medium enterprises, including
assisting industry to access global supply chain markets``

information about Defence’s innovation requirements, to support
the development of innovative capabilities by Australian defence
industry.

4.106 Australian defence industry will have a critical part to play in building
a new relationship with Defence, delivering world-class capabilities
and enhancing competitiveness. Defence industry will be responsible

Industry, innovation, research and development

111

for achieving globally competitive productivity, quality and process
benchmarks, including through participating in the programs run by
Defence and the Centre for Defence Industry Capability.
4.107 The Government is committed to providing a clear and transparent
framework for its partnership with Australian defence industry. The
Defence Industry Policy Statement sets out a clear link between
Defence’s capability needs and the industrial base that is an integral
part of achieving capability.

A new approach to defence innovation

4.109 Australia must continue to harness and maximise the use of technology,
people skills and novel solutions if we are going to meet the strategic
challenges in the years ahead. The Government is committed tobetter supporting our industry and research community to promote,harness and translate innovative ideas into practical capability. We will
collaborate with Australian defence industry, cut red tape and invest
in new technologies to help build industry competitiveness, create
economic opportunity for Australians and support our nation’s defence.
4.110 As described in Chapter Two, some of the technological advantages
the ADF has traditionally enjoyed in the region will be challenged over2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.108 Innovation drives defence capability. Defence, Australian defence
industry and our national research community have a proven record ofcollaborating on leading-edge innovation to raise the ADF’s capability.
This record includes providing enhanced combat potency by extending
the range of RAAF weapons, increasing protection for our personnel
by providing Bushmaster and Hawkei vehicles and building situationalawareness through the Jindalee operational radar network. Innovation
also includes developing new and more efficient ways of maintaining
ADF equipment, such as transforming the management of the Collins
Class submarines to maximise their availability for operations.

112

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

the period to 2035. Defence will better harness Australian expertiseby working with Australian defence industry and academic partners toprovide the ADF with the best technological edge when it needs it tomeet the range of new and evolving threats and challenges.

SECTION TWO CAPABILITY

4.111 The Government’s new approach to Defence innovation is focusedon promoting the strong partnerships and collaboration necessary to
maximise the benefit for Australia’s capability. The Defence Science andTechnology Group will expand its collaboration with partners here andoverseas for this purpose.
4.112 A new virtual Defence Innovation Hub, with funding of around$640 million across the decade to 2025–26, will replace existing
separate programs to help deliver a capability edge to Defence throughinnovative technologies. The Hub will enhance the ability of Defence,
the Commonwealth Scientific and Industrial Research Organisation,
academia and key industry partners to work collaboratively to accelerate
the transfer of innovative technologies into Defence capability. The Hub
will be managed by Defence to focus innovation activities on priority
capability development requirements, some of which require high levelsof security classification.
4.113 In addition to the priority capability development focus of the virtual
Defence Innovation Hub, Defence will invest $730 million over the
decade to 2025–26 to better position Defence to respond to strategic
challenges and develop the next generation of game-changing
capabilities. The Defence Science and Technology Group will leadthis research in collaboration with academia, publicly funded research
agencies, Australian defence industry – especially small to medium
enterprises – and its international counterparts. Should this researchlead to the potential for promising new capabilities, the relevant projectwill be transferred to the Defence Innovation Hub.

Industry, innovation, research and development

113

Shipbuilding
4.114 A strong, viable, and sustainable Australian naval shipbuilding industry
is a vital element of Australia’s defence capability to manage Australia’s
strategic challenges to 2035. The Government is delivering a long-termplan for Australia’s naval shipbuilding industry to ensure the retention ofa sovereign Australian shipbuilding industry and the jobs that go with it.

4.116 The Government is bringing forward the future frigate program to replace
the Anzac Class frigates. A continuous build of the Navy’s future frigateswill commence in 2020. The future frigates will be built in South
Australia following completion of a Competitive Evaluation Process.
4.117 The Government is establishing a continuous build production line forsmaller navy vessels. This will commence with construction of a fleetof 12 offshore patrol vessels to replace the Armidale Class patrol boats,with construction to start in 2018 following a Competitive Evaluation
Process.
4.118 This strategy will transform Australia’s naval shipbuilding industry,generate significant economic growth, sustain Australian jobs over the
coming decades and assure the long-term future of this key Australian
defence industry. The acceleration of the future frigate and offshore

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

4.115 For the first time in the history of Australian naval shipbuilding, theGovernment has committed to a permanent naval shipbuilding industry.
The Government’s strategy is centred on a long-term continuous buildof surface warships in Australia, involving construction of our futurefrigates and offshore patrol vessels in Australia. A continuous build of
our major warships and minor naval vessels will see Defence better
manage the demand for naval vessels to ensure continuous construction
over the long term. This will end the boom-bust cycle for shipbuilding,lower the costs of acquiring naval vessels and provide a long-term,
sustainable plan for the shipbuilding industry.

114

CHAPTER FOUR: THE FUTURE AUSTRALIAN DEFENCE FORCE

patrol vessel projects will sustain around 1,000 jobs over the next
few years, as the Air Warfare Destroyer project winds down and thepreliminary work on these two shipbuilding projects is undertaken, before
construction work commences in 2018 for the offshore patrol vessels
and 2020 for the future frigate. Over the long term the Government’s
shipbuilding plans will guarantee around 2,500 Australian surface
shipbuilding jobs for decades to come. The Government has alreadyannounced 500 dedicated jobs in the new submarine program for combat
system integration, design assurance and land-based testing.

SECTION TWO CAPABILITY

4.119 The Government is committed to delivering this long-term strategy andis prepared to invest in the skills and knowledge base of the Australiannaval shipbuilding industry to help build a strong and sustainable naval
shipbuilding industry.
4.120 The Government is confident in the ability of Australian defence industry
to play its part in building a sustainable shipbuilding industry. Moving
to a continuous build program will require unprecedented reformof the Australian naval shipbuilding industry focused on significant
improvements in productivity. This will require industry to embrace thenecessary changes and institutionalise the reforms that will lead to anindustry that is structured to operate effectively and efficiently.
4.121 France, Germany and Japan, are participating in the future submarine
Competitive Evaluation Process, which will assess their ability topartner with Australia to deliver the future submarines. These potential
international partners have been invited to provide options for an
overseas, Australian or hybrid build program, and to seek opportunities
for Australian defence industry participation in the future submarine
Program. A decision on which international partner will be selected will
be made in 2016.
4.122 The Government will also ensure a long-term industrial capability todeliver support to Australia’s submarines in both construction andIndustry, innovation, research and development

115

sustainment. A rolling acquisition program for the submarine fleet means
managing the acquisition of submarines to ensure Australia maintains,
over the long term, a fleet of 12 regionally superior boats that are fit for
purpose in the period in which they will be operating. A rolling programof acquiring submarines will provide long-term planning certainty forAustralian industry, allowing those Australian companies involved in thesubmarine program to invest in the capabilities needed to support theirinvolvement in the construction and sustainment activities.

SECTION TWO CAPABILITY

2016 DEFENCE WHITE PAPER

116

5

117
`` Chapter Five: Positioning
Defence for Tomorrow’s
Challenges
As outlined in Chapter Two, Australia’s security and prosperity are
intimately tied to developments in the strategic environment of ourimmediate neighbourhood, the broader Indo-Pacific and across the globe.

5.2

Defence must be postured to help shape our strategic environment
so it supports our security and prosperity, including strengthening
our contribution to security and stability in the South Pacific andmaritime South East Asia. Defence posture is the foundation of how theGovernment’s strategic defence policy will be achieved. This White Paper
provides for a more active and internationally engaged Defence posture.

5.3

Defence’s posture includes: its international engagement, relationships
and arrangements; the ADF’s preparedness (how ready the ADF is toundertake and sustain a range of operations at the same time); the ADF’s
basing and infrastructure (addressed in Chapter Four); our overseas
operations; and Defence funding arrangements (addressed in Chapter
Eight). Australia’s significant presence in northern Australia, as outlined
in Chapter Four, is an important part of Defence’s posture.

5.4This chapter addresses how the Government will reshape Defence’s
posture to ensure Defence is best positioned to protect Australia’s
security and prosperity.

International engagement
5.5

Australia can better pursue its objectives of growth and prosperity
and protect its interests in our region and globally by working with

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.1

118

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

others, bilaterally, regionally and multilaterally. Defence’s international
engagement – its physical footprint overseas and pattern of collaborative
activities such as joint exercises and training – is an integral componentof Defence’s posture. Defence’s international engagement also
contributes significantly to Australia’s strategic weight – our perceived
global standing and our ability to exert influence in pursuit of ourinterests. Our strategic weight is also built on our economic and trade
links with other countries, our diplomatic ties around the world and our
extensive network of other government-to-government linkages such as
law enforcement.
Defence’s international engagement builds the relationships andcooperation which Australia requires to contribute to a more stable
and secure international environment and to respond to strategicrisk. Effective international engagement maximises the effectivenessof our contributions to coalition operations, including in Iraq and
Afghanistan. Defence’s international engagement will continue to beclosely coordinated with other government agencies, especially the
Department of Foreign Affairs and Trade, which support the developmentof Australia’s strategic weight.

5.7

Defence will increase its investment in international engagement overthe next 20 years to build cooperation with key partners and improve thecoordination of responses to shared challenges such as terrorism andhumanitarian disasters and help reduce the risk of military confrontation.
International engagement will become an integrated core function
across the entire Defence portfolio, aligned with the Strategic Defence
Objectives.

5.8

The Government will increase investment in the Defence Cooperation
Program to build confidence and the capacity of countries in the
Indo-Pacific region to contribute to our collective security, including
by doubling the training Defence provides in Australia for international
military students over the next 15 years.

SECTION TWO CAPABILITY

5.6

International engagement

5.9

119

The Government will increase the number of multinational exercises the
ADF participates in across our immediate region and the broader IndoPacific, working closely with the United States, Japan and other regionalcountries and international partners. This will result in a more regularsurface and airborne Australian maritime presence in the South Pacific,
South East Asia, North Asia and the Indian Ocean and an increase inland-based exercises.

5.10 The Government will increase the number of Defence personnel
overseas to conduct more liaison, capacity building, training andmentoring with partner defence and security forces. We will also seek
to increase the number of liaison personnel from other countries inAustralia in areas such as strategic policy development, intelligence
analysis and operational coordination.

5.12 This enhancement to our international defence engagement is based onfour objectives.
``

To enhance ADF capability by maintaining access to high-end
intelligence, technology and military capability from our alliancepartner the United States, and by maintaining the ADF’s ability tooperate effectively with the United States and other partners in our
region and further afield.

``

To generate and sustain Australia’s regional and global
influence, that is, our ability to influence international security
outcomes and to maintain our status internationally as a respected
and capable security actor.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.11 To support these initiatives, Defence will increase investment in training
ADF and Australian Public Service personnel responsible for undertaking
international engagement. This will increase our capability to operate
in the region and to work with a wider range of international partners.
Defence will provide more opportunities for its personnel to train in
different environments and better develop and sustain the skills needed
to respond to security contingencies.

120

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES``

To generate active and effective security partnerships thatenable Defence to quickly and effectively deploy in our region andfurther afield, sustain these operations, and to support the capacityof partners to operate in concert with the ADF.

``

To enhance international security resilience by supportinga rules-based global order, including strong regional andinternational security architectures, which protects Australia’sinterests by minimising the risk of coercion, instability, tensions or
conflict and resolving conflicts through lawful and peaceful means.

SECTION TWO CAPABILITY

5.13 These objectives will also inform our approach to our international
defence relationships over the next two decades as addressed below.

International defence relationships
5.14 To achieve the Strategic Defence Objectives, Defence will maintain andbuild on Australia’s security relationships, including existing bilateraldefence relationships and multilateral security arrangements.
5.15 The benefits of practical defence engagement were demonstrated by
the cooperation between Australia and countries including the UnitedStates, Japan, China, Malaysia, the Republic of Korea, New Zealand andthe United Kingdom during the search for the missing Malaysia Airlines
flight MH370 in the Southern Indian Ocean in 2014. Our investment indeveloping our relationships with these partners meant we could move
more easily into operational cooperation.
5.16 Efforts to strengthen our ability to cooperate in responses to security
challenges will provide further opportunities for collaboration with
regional partners. Military modernisation within the Indo-Pacific will
improve the ability of regional countries to cooperate in areas such ascounter-terrorism, shared maritime awareness, science and technology,
capability development, intelligence, surveillance and reconnaissance,
and integrated air and missile defence.

International defence relationships

121

5.17 The Government’s highest priority will continue to be our alliancewith the United States. We will look to mature and deepen practicalengagement with partners across the Indo-Pacific, particularly Indonesia,
Japan, South Korea, New Zealand, India and China. We will also maintainglobal partnerships including with NATO to respond to threats which
engage Australia’s interest in a stable rules-based global order.

The Australia-United States Alliance5.19 The Government is committed to meeting our obligations under theTreaty. The ANZUS Treaty was invoked by Australia in response to the
9/11 terrorist attacks. In 2011, the Governments of Australia and theUnited States agreed that the mutual obligations in the ANZUS Treaty
would be extended to apply to cyber attacks.
5.20 Australia’s security is underpinned by the ANZUS Treaty, United States
extended deterrence and access to advanced United States technology
and information. Only the nuclear and conventional military capabilitiesof the United States can offer effective deterrence against the possibilityof nuclear threats against Australia. The presence of United States
military forces plays a vital role in ensuring security across the
Indo-Pacific and the global strategic and economic weight of theUnited States will be essential to the continued effective functioningof the rules-based global order.
5.21 Access to the most advanced technology and equipment from theUnited States and maintaining interoperability with the United States iscentral to maintaining the ADF’s potency. Australia sources our most2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.18 A strong and deep alliance is at the core of Australia’s security anddefence planning. The ANZUS Treaty, signed in 1951, provides theformal basis for our relationship. The ANZUS Treaty recognises that anarmed attack in the Pacific Area on Australia or the United States would
be dangerous to both countries and obliges each country to act to meetthe common danger.

122

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

important combat capability from the United States, including fighterand transport aircraft, naval combat systems and helicopters. Around
60 per cent of our acquisition spending is on equipment from the UnitedStates. The cost to Australia of developing these high-end capabilities
would be beyond Australia’s capacity without the alliance.

SECTION TWO CAPABILITY

5.22 The Government will continue to invest in capabilities that maintain highlevels of interoperability with the United States. Interoperability allows
our forces to integrate when they are working together on operations
and enhances the effectiveness of our combined capabilities. We
will emphasise capabilities that allow us to operate more seamlessly
with United States forces in maritime sub-surface and surface and air
environments, as well as across the electro-magnetic spectrum.
5.23 The Australia-United States Defence Trade Cooperation Treaty represents
a significant contribution to our bilateral relationship in achieving
and sustaining interoperable forces, and also represents significant
opportunities for the partnership between our respective defence
industries and defence organisations.
5.24 The alliance, and Australia’s membership of the Five-Eyes intelligencecommunity (comprising Australia, the United States, New Zealand,
the United Kingdom and Canada) provides Australia with information
superiority and intelligence cooperation that is a vital input into our
defence planning. The Joint Defence Facility Pine Gap makes a criticalcontribution to the security interests of Australia and the United States,delivering information on intelligence priorities such as terrorism, theproliferation of weapons of mass destruction, and military and weapons
developments, while contributing to the verification of arms control
and disarmament agreements. All activities at Pine Gap are governedby the Australian Government’s long-standing policy of full knowledge
and concurrence, ensuring that all activities at the Joint Facility are
consistent with Australia’s interests.

International defence relationships

123

5.25 Australia welcomes and supports the critical role of the United States inensuring stability in the Indo-Pacific region. The levels of security andstability we seek in the Indo-Pacific would not be achievable without theUnited States.
5.26 The United States’ strategic rebalance to the Indo-Pacific region,strongly supported by Australia including through the United States
Force Posture Initiatives, will be an essential ingredient in preserving
stability and security over the coming decades. The United States Force
Posture Initiatives in northern Australia are being implemented under
the legally-binding Force Posture Agreement signed at the 2014
Australia-United States Ministerial Meeting. They will expand ourcooperation, increase opportunities for combined training and exercisesand deepen the interoperability of our armed forces.

5.28 The United States Force Posture Initiatives will also provide
opportunities for broader collaboration between the United States,
Australia and partners in the Indo-Pacific, including Japan, improving
the response to contingencies in the Indo-Pacific region such as
humanitarian assistance and disaster relief operations.
5.29 United States leadership of international coalitions to respond to global
challenges provides the strategic weight, combat power and influence
to bring countries together to effectively address these challenges. The
United States will continue to look to other partners, including Australia,

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.27 Under the Force Posture Agreement, Australia and the United States
will continue to work towards the full United States Marine Air-Ground
Task Force of around 2,500 personnel and equipment rotating throughAustralia by 2020, during the six month dry season, while at the sametime expanding our Air Force cooperation. We expect more rotations ofUnited States aircraft through northern Australia and increased combined
training and exercises. We will also continue to build our already strong
naval cooperation through increased training and exercises.

124

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

to share the burden of international security and make meaningful
contributions to international coalitions. Australia’s shared interest
with the United States in a stable rules-based global order has seen us
operate side by side in every major conflict since the First World War.
In recent years Australia has worked with the United States: in combat
operations in Iraq and Afghanistan to respond to the global threatof terrorism; to uphold maritime security; and to respond to natural
disasters in the Philippines, Japan and Pakistan.

SECTION TWO CAPABILITY

5.30 While the interests of Australia and the United States will not alwaysalign, the capabilities outlined in this White Paper will allow us tocontinue contributing meaningfully to United States-led operations
in response to regional and global security challenges wherever ourinterests are engaged.

New Zealand5.31 Australia’s defence relationship with New Zealand is built on deep
mutual security interests, shared values and long-standing people topeople linkages. We share our immediate region, the South Pacific, areliance on the stable rules-based global order for our prosperity anda willingness to make positive contributions to regional and global
security and stability operations. We are close partners and ANZUS
allies. Our close defence relationship is reflected in regular Ministerialand senior officials strategic dialogues, personnel exchanges, exercises
and cooperation to meet regional and global security challenges.
5.32 The deployment of a combined Australia-New Zealand Task Group to thecurrent Building Partner Capacity mission in Iraq, and our cooperation in
the Regional Assistance Mission to Solomon Islands and humanitarianassistance and disaster relief operations, underscores the sharedregional and global interests of both countries. Our ability to cooperate
so closely with New Zealand in these operations reinforces our highlevels of interoperability. This interoperability includes close cooperation
on strategic planning and intelligence.

International defence relationships

125

5.33 We recognise that New Zealand will make its own judgements on its
national interests, and that New Zealand’s military capability choices may
not always reflect Australia’s. Despite this, we will continue to coordinate
our efforts with New Zealand in the South Pacific and in supporting ourshared interests in a secure region and a rules-based global order.

Indonesia

5.35 The strength of our security relationship with Indonesia is built ona framework set out in the 2006 Lombok Treaty, the 2012 Defence
Cooperation Arrangement, and the 2014 Joint Understanding on
intelligence cooperation. The relationship is underpinned by strategic
dialogue, including combined Defence and Foreign Affairs 2+2
Ministerial talks, the Chief of the Defence Force-led High Level
Committee, Indonesia-Australia Defence Strategic Dialogue, and Navy,
Army and Air Force talks.
5.36 Through our long-standing defence relationship Australia works withIndonesia to counter mutual security threats. Key areas for cooperation
include counter-terrorism, maritime security, humanitarian assistanceand disaster relief, peacekeeping and intelligence. Our training andprofessional military education partnership includes staff college
exchanges, mobile training teams and English language courses whichbuild common approaches and mutual understanding.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.34 A strong and productive relationship with Indonesia is critical toAustralia’s national security. Australia and Indonesia share maritime
borders and enduring interests in the security and stability of South East
Asia. We are neighbours in a dynamic region. We have a mutual andabiding interest in the security and stability of the maritime domainsthat we share, the free movement of trade and investment through these
domains, and countering terrorism and people smuggling in our region.
Australia welcomes Indonesia’s increased focus on maritime affairs andAustralia will seek greater cooperation on maritime security activities
that contribute to a stable and prosperous region.

126

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

5.37 Australia will build on the strong foundation of our defence relationshipto support Indonesia as it modernises its defence forces. Opportunities
for more sophisticated training will become available as this happens.
We will continue to deepen our defence partnership with Indonesia
through: navy, army and air force cooperation; expanding ourcomprehensive pattern of training, exercises, and operations; more
frequent policy and planning dialogue; and intelligence exchanges.
Recent activities have included navy, army and air force exercises andtraining, including counter-terrorism exercises, and enhancing defence
industry cooperation. Our joint efforts to increase cooperation willcontinue in 2016, including a new joint humanitarian assistance anddisaster relief exercise.

SECTION TWO CAPABILITYThe South Pacific5.38 Maritime security cooperation remains a cornerstone of Australia’s
defence engagement across the South Pacific. Australia is committed
to supporting Pacific Island Countries to protect their security andresources. We will achieve this by contributing to the developmentof shared maritime domain awareness and by strengthening thecapabilities of the defence and security forces of Pacific Island Countries
to act in support of shared interests.
5.39 We will coordinate our efforts, particularly in relation to maritime
security and disaster relief, with New Zealand, France, the United States
and Japan.
5.40 Through the Pacific Maritime Security Program, the follow-on to thehighly successful Pacific Patrol Boat Program, Australia will provide
replacement patrol boats to 12 Pacific Island Countries from 2018.
The Program will also expand upon the scope of the Pacific Patrol Boat
Program by including enhanced aerial surveillance and support for theregional security architecture. This will help maximise the best useof the patrol boats by Pacific Island Countries to protect their national

International defence relationships

127

sovereignty and resources. Current Pacific Maritime Security Program
partners include Papua New Guinea, Solomon Islands, Palau, theFederated States of Micronesia, Kiribati, Samoa, Vanuatu, Fiji, Tuvalu,
Tonga, Cook Islands and the Republic of the Marshall Islands.

5.42 A constructive bilateral defence relationship with Fiji will support
Australia’s interests in a secure immediate region and a stable IndoPacific. Following the lifting of sanctions against Fiji in 2014, Australia
will seek to rebuild defence cooperation with Fiji at a pace both countries
are comfortable with, including establishing links between the ADF and
the Republic of Fiji Military Forces, including through providing training
and through Fiji’s participation in the Pacific Maritime Security Program.
5.43 Australia welcomes Tonga’s participation in regional and global security
operations, including in Solomon Islands and in Afghanistan. The
Government will continue to support the development of Tonga’s armed
forces, such as the gifting in late 2015 of a landing craft to improve thecapacity of Tonga’s military forces to conduct supply and humanitarianassistance and disaster relief missions.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.41 Geographical proximity means the security, stability and cohesionof Papua New Guinea contributes to a secure, resilient Australia
with secure northern approaches. Our relationship is underpinned by
the 2013 Joint Declaration for a New Papua New Guinea-Australia
Partnership, which recognises that Australia and Papua New Guinea
have a proud history of working closely to address common security
challenges. Defence will continue to support the development of a more
professional and capable Papua New Guinea Defence Force that can act
in support of the interests which Papua New Guinea and Australia share.
Australia’s Defence Cooperation Program with Papua New Guinea isalready our largest. The Government will further increase this program,in particular by assisting with the rebuilding of the Papua New Guinea
Defence Force’s maritime security capability, including through its
participation in the Pacific Maritime Security Program and strengthening
our relationship with the Papua New Guinea Department of Defence.

128

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

Timor-Leste

SECTION TWO CAPABILITY

5.44 Timor-Leste has achieved considerable social and economic progresssince the Australian-led International Stabilisation Force concluded
operations in 2013. Our proximity, historical links, and shared stake inregional stability means Australia retains an enduring strategic interestin supporting Timor-Leste’s growing capacity to meet its own security
needs. The key objective of our substantial defence cooperation
partnership will be to provide continued support to the development of acapable and responsive Timor-Leste Defence Force and Ministry that areable to contribute to the country’s growth and stability.
5.45 Maritime security is a growing focus of our partnership, given ourmutual interest in addressing illegal fishing, transnational crime, andrelated security challenges. Timor-Leste has been invited to participate
in the Pacific Maritime Security Program. Under this program,Australia has offered Timor-Leste two new patrol boats packaged withsustainment, training for Timor-Leste naval personnel, and advisory
support. Defence will also continue to work with the Timor-Leste
Defence Force land component, through cooperative activities including
exercises and its extensive English language training program, tostrengthen the ability of the Timor-Leste Defence Force to operate
effectively and professionally.

South East Asia
5.46 As well as our important defence relationship with Indonesia, Australia
has strong and longstanding bilateral and multilateral partnerships
with countries in South East Asia, founded on a history of practicalcooperation and dialogue. The Government considers that the security
architecture of the region and our strong bilateral partnerships withcountries in South East Asia can be strengthened further.
5.47 Military modernisation has increased the ability of South East
Asian countries to contribute to shared security responsibilities andInternational defence relationships

129

provided opportunities for increasingly sophisticated practical military
cooperation with Australia. The Government will build on thesedevelopments to strengthen our security partnerships and support
regional responses to shared security challenges. In particular, we
will work with regional partners to develop shared maritime domainawareness capabilities that provide a basis for greater maritime security
cooperation.

5.49 Participation in the FPDA increases habits of cooperation andinteroperability between its members and makes a practical contribution
to regional security resilience. Australia will continue to seek to promote
military interoperability through the conduct of complex, high-end
combined FPDA exercises that have the greatest benefit for Australia andthe FPDA’s other members.
5.50 Singapore is Australia’s most advanced defence partner in South
East Asia and shares Australia’s interest in a secure maritime trading
environment. We have a long history of defence engagement, including
supporting Singaporean military training in Australia and cooperating as
partners in operations in Afghanistan.
5.51 The Comprehensive Strategic Partnership signed on 29 June 2015 setsout how Australia and Singapore will further strengthen our relationship,including our economic, security, foreign policy and people to people
links. Under the Comprehensive Strategic Partnership, our expanding
defence cooperation will be based on five areas: more exchanges of2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.48 The Five Power Defence Arrangements (FPDA) with Malaysia,
Singapore, New Zealand and the United Kingdom is the longest standing
regional security mechanism for Australia. The FPDA is the only
multilateral security agreement focused on practical cooperation of its
kind in the South East Asian region. Since 1971, the FPDA has beenan enduring and important feature of Australia’s efforts to advance its
interests by working with partners to promote security in South East Asia.

130

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGESSECTION TWO CAPABILITY

military and civilian personnel; new training initiatives and greatercollaboration on shared challenges including terrorism and cybersecurity; greater intelligence and information sharing; expanding scienceand technology cooperation; and co-development of training areas.
The Government will also seek to cooperate with Singapore in
multilateral forums to promote practical regional security cooperation
and a rules-based regional order.
5.52 The Government will prioritise enhancing our participation in the ASEAN
Defence Ministers’ Meeting-Plus (ADMM-Plus). The ADMM-Plus
focuses on practical measures to build better understanding and topromote practical cooperation on security challenges including
counter-terrorism, maritime security, humanitarian assistance andpeacekeeping. Australia will continue to make substantive contributions
to multilateral practical exercises to help increase interoperability
between ADMM-Plus members to address these challenges. Australia
is also helping to build the region’s collective capacity to combat
terrorism as the current co-chair with Singapore of the ADMM-Plus
Counter Terrorism Experts’ Working Group. We will continue to engage
in security dialogue through other multilateral security frameworks,
including the ASEAN Regional Forum, to discuss cooperation to address
regional security issues.
5.53 Australia and Malaysia have a long standing defence relationship basedon shared interests in promoting regional security cooperation and arules-based regional order. Malaysia is an important member of ASEAN, acapable partner in the ADMM-Plus framework and a member of the FPDA.
Malaysia hosts the Integrated Area Defence System which coordinates
FPDA activities. Defence’s presence at Royal Malaysian Air Force base
Butterworth is an important part of our commitment to the FPDA.
5.54 Under the Australia-Malaysia Joint Declaration of Strategic Partnershipagreed by Prime Minister Turnbull and Prime Minister Najib in
November 2015, both countries agreed to ongoing collaboration onInternational defence relationships

131

defence matters, including their commitment to the FPDA and to the
Malaysia Australia Joint Defence Program.
5.55 The Government will seek to enhance our cooperation with Malaysia
including through maintaining the level of access we have to Butterworth
to support efforts to maintain security and stability in maritime South
East Asia. Defence will continue to build on its extensive program of
dialogue, education and training with Malaysia’s armed forces.

5.57 Australia and Vietnam are continuing to build our defence relationship.
We conduct regular strategic dialogue to exchange views on issuesof regional security. Our practical Defence Cooperation Program with
Vietnam includes professional military education, peacekeeping,maritime security, and Special Forces cooperation. Australia welcomes
Vietnam’s increased role in multilateral security cooperation, including
its contributions to United Nations peacekeeping operations.
5.58 The Philippines is an important regional partner due to its strategic
location in South East Asia and similar approach to security issues,
including our shared interest in countering terrorism in our region.
Australia’s engagement with the Armed Forces of the Philippines andthe Department of National Defense will focus on the fields of maritime
security, counter-terrorism, law and leadership, airworthiness andlogistics. Australia will also support Philippines capability development
through targeted training and capacity assistance, such as the current
program to gift two amphibious vessels and offering an additional three
for sale to the Philippines.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.56 Australia has a long-standing defence cooperation program withThailand in the fields of counter-terrorism, countering Improvised
Explosive Devices, peacekeeping, maritime security, logistics,
capability development, aviation safety and airworthiness, law
and leadership, and English language training. The Government iscommitted to continued defence cooperation, subject to progress inThailand’s return to democracy.

132

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

North Asia

SECTION TWO CAPABILITY

5.59 Japan is a major power in North Asia with advanced military forces
and an increasingly active approach to regional security. Australia andJapan have a deep and broad relationship. We share democratic values,
have been close economic partners for decades and more recently wehave become close strategic partners. We each have alliances with theUnited States and we have common strategic interests in secure andfree-flowing trade routes, a stable Indo-Pacific region and a rules-based
global order. We welcome the Japanese Government’s recent decision
to adopt policies that will enable it to contribute more directly toregional and global security and stability.
5.60 Australia has a growing security relationship with Japan. In recent
years we have signed treaty-level agreements on cooperation in
defence science and technology, information sharing and logistics
support. These agreements provide the basis for further developing ourdefence cooperation based on the 2007 Joint Declaration on Security
Cooperation.
5.61 Australia and Japan are implementing a broad range of initiatives tofurther enhance practical defence cooperation. These initiatives will
strengthen defence cooperation in a number of areas including: increased
training and exercises between all three Services, increased personnel
exchanges, deepening cooperation on humanitarian assistance anddisaster relief, maritime security, peacekeeping, capacity building
and increasing trilateral cooperation with our common ally the UnitedStates. We will enhance strategic dialogue between Australia and Japan,
which includes joint Defence and Foreign Affairs 2+2 dialogue heldat Ministerial level, as well as senior officials’ level dialogue. We willcontinue to explore opportunities to expand cooperation with Japan inareas such as intelligence, developing common capabilities like the Joint
Strike Fighter, air and missile defence and maritime warfare technologies.

International defence relationships

133

5.62 To underpin our growing cooperation, we will work towards anagreement with Japan that improves our administrative, policy, and legal
procedures to facilitate joint operations and exercises.
5.63 We will continue to expand trilateral defence cooperation between
Australia, Japan, and the United States for our mutual benefit. This
includes practical trilateral activities such as the Southern Jackeroo
exercise and strategic dialogue including the Security and Defence
Cooperation Forum.

5.65 The Government is committed to continuing the development ofAustralia’s defence relations with China, and working to enhancemutual understanding, facilitate transparency and build trust. We will
do this through increased personnel exchanges, military exercises,
and other practical cooperation in areas of mutual interest, such as
humanitarian assistance and disaster relief and countering piracy. We
will continue to build on the positive outcomes of Exercise Kowari, theAustralia‑China‑United States military exercise first held in the Northern
Territory in October 2014. A second iteration of Exercise Kowari washeld in August and September 2015.
5.66 Australia and the Republic of Korea have had shared interests inregional security since the Korean War. The April 2014 bilateral Vision
Statement for a Secure, Peaceful and Prosperous Future highlights ourshared intention to further develop our patterns of bilateral exercises and2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.64 China has a central role to play in contributing to the peace and stabilityof North Asia and the Indo-Pacific. Australia and China have built a
productive defence relationship based on our annual Australia‑China
Defence Strategic Dialogue, working-level exchanges, strategic
policy discussions, practical exercises, maritime engagement andpeacekeeping. Our cooperation in the search for missing Malaysia
Airlines flight MH370 in the Southern Indian Ocean reinforced thepractical benefit of our defence cooperation.

134

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

to strengthen practical cooperation. Australia will look to strengthen our
strategic dialogue, training and exercising as well as our cooperation incapability development and defence materiel acquisition.

SECTION TWO CAPABILITY

5.67 Our strong defence relationship is underpinned by a mutual interestin working together with the United States and Japan to contributeto security in North Asia and shared concern about the threat posedby the Democratic People’s Republic of Korea’s nuclear and ballistic
missile programs. Australia has increased its participation in Republicof Korea-United States led multilateral exercises and will maintain thiscommitment. Australia will continue to collaborate with the Republic ofKorea on non‑proliferation, disarmament and arms control measures that
uphold the rules-based global order, including through the Proliferation
Security Initiative.

South Asia
5.68 India is a rising major power and Australia welcomes its increasingly
active role in Indo-Pacific security. Our shared interests with India
in areas such as Indian Ocean maritime security, regional stability
and countering terrorism – in addition to our shared democraticvalues – form a solid basis for engagement.
5.69 Australia sees India as a key security partner in the Indian Ocean andbroader Indo-Pacific region. The Framework for Security Cooperation
announced in November 2014 reflects the deepening and expanding
security and defence engagement between Australia and India.
5.70 In line with the Framework for Security Cooperation, the Government
will seek to further mature our defence relationship with India in
support of our shared strategic interests. This will include pursuing a
regular program of strategic dialogue, bilateral training, and exercise
opportunities – including our first major bilateral maritime exercise
which was conducted in 2015. We will strengthen our cooperation in
maritime security, counter-terrorism, capability acquisition and defence
science and technology.

International defence relationships

135

5.71 India’s ‘Act East’ policy provides opportunities for greater bilateral andmultilateral cooperation in the Indo-Pacific particularly through ourcommon membership of the East Asia Summit and ADMM-Plus. We
will also deepen our cooperation in the Indian Ocean Naval Symposium
and Indian Ocean Rim Association.

5.73 Sri Lanka’s location on a vital maritime corridor in the Indian Ocean
has seen Australia gradually increase defence cooperation, including
establishing a resident Defence Adviser in Colombo. The focus of ourengagement will be on maritime security, maritime policy, emergency
management and humanitarian assistance and disaster relief.
5.74 Australia attaches great importance to the development of regional
security architectures among Indian Ocean countries to create astronger framework for the region’s stability and security. Australia willcontinue to be a key contributor to institutions like the Indian Ocean
Rim Association and the Indian Ocean Naval Symposium, which provide
mechanisms for advancing common security objectives, providing
transparency and building confidence in the Indian Ocean region.

Global relationships
5.75 Chapter Two noted that the rules-based global order on which Australia
relies for its security and prosperity is being increasingly challenged,
including in areas such as cyber and space.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.72 Pakistan’s potential to influence security dynamics in the Middle
East, Central and South Asia, and its proximity to key Indo-Pacific sealines of communication engages our interest in a stable Indo-Pacificregion and a rules-based global order. Australia has a long-standing
defence relationship with Pakistan focused largely on capacity building,enhancing professionalism and strategic dialogue. We will continue
to expand our engagement on building Pakistan’s counter-terrorism
capacity, including expanding collaboration on countering Improvised
Explosive Devices.

136

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGESSECTION TWO CAPABILITY

5.76 Working with partners around the globe, Australia will continue topursue security and stability, wherever our interests are engaged.
Through partnerships with like-minded countries, we generate andsustain defence capabilities with a far greater reach than we could
achieve alone. Australia contributes to multinational responses to threatsaround the world to prevent terrorists from establishing and maintaining
safe havens and to counter piracy, proliferation of weapons of mass
destruction, transnational crime and people smuggling.
5.77 We actively cooperate with international security organisations, suchas the North Atlantic Treaty Organization (NATO) in order to bolster
the rules-based global order. Australia’s willingness to contribute toNATO operations to address shared challenges, including in Afghanistan
and counter-piracy operations in the Indian Ocean has seen NATO
recognise Australia as an Enhanced Partner. Being an Enhanced
Partner will improve Australia’s strategic engagement with NATO andstrengthen Australia’s ability to partner with NATO in the future toaddress shared security challenges. The Government will ensure that our
relationship with NATO continues to grow on the basis of reciprocity andcollaboration where the interests of NATO members and Australia align.
5.78 We will continue to work with the United Nations as a demonstrationof our commitment to multilateral action to maintain a rules-based
global order. Defence will make appropriate contributions to United
Nations missions, including our contributions of ADF personnel to theUnited Nations Mission in South Sudan and to the United Nations Truce
Supervision Organisation in the Middle East. Our support to the United
Nations includes providing strategic airlift support to United Nations
peacekeeping operations in crisis situations where and whenever wecan. In addition to our United Nations commitments, we will maintainour contribution to the Multinational Forces and Observers mission in
the Sinai.

International defence relationships

137

5.79 Defence will continue to support United Nations training and education
activities and will provide expertise to support the Australian National
Action Plan on Women, Peace and Security 2012–2018 that implements
United Nations Security Council Resolution (UNSCR) 1325. UNSCR
1325 recognises that security, stability and peace can only be achieved
through a gender inclusive approach to conflict resolution and peacebuilding. Defence is responsible for implementation of 17 of the 24
actions in the National Action Plan. The National Action Plan sets out
what Australia will do, at home and overseas, to integrate a gender
perspective into its peace and security efforts, protect women and girls’
human rights and promote their participation in conflict prevention,
management and resolution. Under the National Action Plan, ADF
women are playing a more prominent and influential role on operations
in which the ADF is involved.

5.81 The relationship between Australia and the United Kingdom is basedon deep historical and cultural ties, which have been reinforced overtime, most recently in Afghanistan and Iraq. We share common interestsin supporting and defending a stable rules-based global order and ourapproaches to global security issues are closely aligned. We cooperate
closely as members of the FPDA and the Five-Eyes intelligencecommunity. The United Kingdom has global military reach and thecapacity to help respond to global security challenges.
5.82 Australia and the United Kingdom will continue to work together toaddress common threats to a peaceful, prosperous and rules-based
global order, including terrorism, the instability in the Middle East and2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.80 Australia is promoting the active participation and integration of Afghan
women in Afghanistan’s national security institutions. In recent years,
ADF personnel have performed the role of Gender Adviser to the
NATO-led Resolute Support Mission in Afghanistan, providing guidanceon the provision of safe and appropriate facilities and equipment for
women serving in Afghan security forces, and training for men andwomen in the prevention of gender-based violence and harassment.

138

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGESSECTION TWO CAPABILITY

violent extremism. Australia is committed to growing our partnership
through strategic dialogue led by the Australia-United Kingdom
Ministerial Consultations (AUKMIN) and cooperation on intelligence,science and technology and high-end defence capabilities.
5.83 Australia and France share a longstanding and close defence
relationship with a shared commitment to addressing global security
challenges such as terrorism and piracy. We are strong partners in the
Pacific where France maintains important capabilities and we also work
closely together to support the security of our respective Southern
Ocean territories. Under the FRANZ Arrangement between France,
Australia and New Zealand the three partners coordinate humanitarianand disaster relief operations in the Pacific. Australian and French
defence forces worked alongside each other to provide life-saving
humanitarian assistance to Vanuatu in the wake of Tropical Cyclone Pam.
5.84 Following the 13 November 2015 terrorist attacks in Paris, Australia has
expressed its unwavering solidarity with the people of France. Australia
will continue to work with France and other like-minded countries tocombat Daesh as part of the fight against terrorism.
5.85 The defence forces of Australia and Canada are of comparable
size, and we share a willingness to respond to global challenges,
such as our contributions in Iraq. Australia and Canada cooperate
closely as members of the Five-Eyes intelligence community.
Although geographically distant, our strategic outlook and approach
towards security and defence matters is similar and is reflected in a
growing relationship, including: intelligence cooperation, operational
cooperation, working level exchanges, senior-level dialogue andscience, technology and materiel cooperation.
5.86 Australia will also work with other partners, where cooperation isrequired to improve global security wherever Australia’s interests
are engaged, including in the Middle East. Only through concerted

International defence relationships

139

international action can we defeat threats such as those posed byterrorists in Iraq and Afghanistan. This includes cooperation with abroad coalition of concerned countries, including countries such as the
Netherlands, Spain and Germany.
The Middle East
5.87 Australia will have strategic interests in the Middle East for theforeseeable future, including preventing the spread of violent extremism,
supporting stability and the security of vital trade and energy flows.
To support these interests, in addition to our current operations in theregion (discussed below), Australia will continue to build relationships
with countries in the region including providing targeted capacity
building support where it is in our interest to do so.

Africa5.89 The African continent engages Australia’s interests in upholding therules-based global order and promoting the stability of the Indo-Pacific,
including maritime security. Australia has sustained contributions to anumber of United Nations operations in Africa, including to the current
United Nations mission in South Sudan. Defence activities in Africa
will continue to be proportionate to our interests in the continent. Our
ongoing contribution to United States-led Combined Maritime Forces
operations will help address terrorism, piracy, drug smuggling and otherchallenges to maritime security off the north-east coast of Africa.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.88 Australia has a strong defence relationship with the United ArabEmirates. Our defence engagement with the United Arab Emirates
will continue to grow and will include increased training, personnel
exchanges and high-end exercises, including Special Forces and air
combat exercises.

140

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

Defence preparedness
5.90 A more active and internationally engaged regional and global posturerequires an appropriate Defence presence in Australia and overseas
and suitable ADF preparedness levels. Preparedness is about having
forces that can be deployed and sustained on operations in a timely
and effective way. Higher levels of ADF preparedness will be required
to support greater activity in the region and to make meaningful
contributions to global security activities where our interests are engaged.

SECTION TWO CAPABILITY

5.91 The Government has directed an increase in the ADF’s preparedness
level, based on raising its overall capability and improving its
sustainability on operations. This will require an increase in training andmore funding to support increased activity.
``

The overall capability of the ADF will be raised through the
new more capable, agile and potent force structure set out in
Chapter Four.

``

New transport and logistics capabilities, including new aircraft andnavy support ships mean the ADF will be better supported with
supplies and more easily reinforced when deployed on operations.

``

ADF personnel will receive enhanced training opportunities, withinvestment in advanced training enabling capabilities, including
training and testing ranges, equipment and simulation systems.

``

The ADF will be more active, including through the increased
defence engagement activities set out earlier in this chapter suchas regional exercises and other engagement activities. Our more
active international engagement will contribute to building theskills of our people. Dedicated funding has been allocated forthe additional costs associated with higher preparedness such as
more fuel being used on exercises as well as more frequent repairs
and maintenance of equipment.

Current operations

141

5.92 Increased preparedness will ensure that the ADF has greater capacity
and agility to respond to strategic risks and to undertake a range of
operations at the same time.

Current operations
5.93 ADF operations are critical to the Government’s strategy forprotecting Australia’s security and prosperity. Around 2,500 ADF
personnel are currently deployed on operations overseas and on
border protection duties.

5.95 Defence will continue to make a major contribution to Operation
Sovereign Borders to stop people smuggling, along with a wide range ofGovernment agencies, including providing maritime patrol aircraft, patrolboats and large Navy ships, including a new large-hulled multi-purpose
patrol vessel, the Australian Defence Vessel Ocean Protector. Defence
also helps protect Australia’s maritime area from other threats, such as
illegal exploitation of our natural resources, including illegal fishing.
The ADF’s maritime area of operations covers approximately 10 per centof the surface of the world, and includes Christmas, Cocos (Keeling),
Norfolk, Heard, Macquarie and Lord Howe Islands.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

5.94 Since coming to office, the Government has deployed ADF personnel
to protect our borders as part of Operation Sovereign Borders, to theSouthern Ocean to protect our natural resources, to the Indian Ocean
to search for flight MH370 and to Iraq, Afghanistan and Ukraine aswell as on peacekeeping missions. The ADF has also been deployed
to a number of humanitarian assistance and disaster relief missions inAustralia, providing support to the Australian community in the wake ofstorms, floods and bushfires. In our immediate region, the ADF provided
a significant contribution to humanitarian assistance and disaster relief
and recovery efforts in Vanuatu following Tropical Cyclone Pam in March
2015, in Nepal following the earthquake in April 2015 and in Myanmar
following floods in August 2015.

SECTION TWO CAPABILITY

142

CHAPTER FIVE: POSITIONING DEFENCE FOR TOMORROW’S CHALLENGES

5.96 The Government is fully committed to maintaining Australia’s substantial
contribution to the United States-led coalition effort to disrupt, degrade
and ultimately defeat the terrorist threat from Daesh. Daesh threatens
stability in Iraq and the Middle East and the security of Australians
at home and in our region. Our contribution supports our direct
security, and our commitment to counter the global terrorist threat. The
Government will maintain Australia’s contribution of an Air Task Group
conducting air combat and support operations in Iraq and Syria and our
joint contribution to the Build Partner Capacity training mission withNew Zealand in Iraq. The Build Partner Capacity mission is focusedon training Iraqi forces to defeat Daesh and restore Iraqi territory to thecontrol of the Iraqi Government. Our Special Operations Task Groupwill continue providing military advice and assistance to theCounter-Terrorism Service of the Iraqi Security Forces.
5.97 Australia is committed to working as part of the international community
to provide long-term support to the Government of Afghanistan as
it seeks to consolidate the hard-won security and governance gains
since 2001. Australia is one of the largest non-NATO contributors in
Afghanistan. Australia will continue to contribute to the NATO train,
advise and assist Resolute Support Mission in key roles, including
providing training and mentoring to develop the future leadership of the
Afghan National Defense and Security Forces at the Afghan National
Army Officer Academy in Kabul. We are also providing embedded
personnel in NATO headquarters and in critical force protection, medical
and logistics roles. Australia is committed to providing funding to theAfghan National Defense and Security Forces through our contribution of
US$100 million a year from 2015 to 2017.
5.98 Australia will continue to contribute a Navy vessel to support the UnitedStates-led Combined Maritime Forces. The Combined Maritime Forces
is a multinational effort to prevent terrorism, piracy and drug smuggling,encourage regional cooperation and promote a secure maritime
environment in the Middle East and off the north east coast of Africa.

143

Intentionally blank2016 DEFENCE WHITE PAPER

144

6

145
`` Chapter Six: People
The quality of our people is the foundation of Defence’s capability,
effectiveness and reputation. Defence has an integrated workforce of
ADF and Australian Public Service (APS) personnel who work together
to deliver defence capability.

6.2

Within Australia, this integrated workforce conducts a diverse range ofessential activities to help defend Australia and its national interests.
This includes planning, preparing and training for future security
challenges, producing intelligence, conducting scientific research,developing and maintaining high-technology capabilities and systems,
contributing to national cyber security operations and delivering criticalenabling services.

6.3

Since 1999, over 76,000 ADF members have deployed on domestic,
border security, humanitarian and international operations, with someindividual members deploying on multiple occasions. Today, around2,500 ADF personnel are deployed on operations defending Australia’sinterests in Iraq, Afghanistan, in the Middle East, on peacekeeping
missions and domestically to help keep our borders secure. APS
personnel also deploy on operations with their ADF colleagues.

6.4

Defence also supports state and territory emergency response personnel
to help communities respond to natural disasters such as floods andbushfires.

6.5

One of the most important and challenging jobs Defence will have in the
coming decades will be maintaining the capability of the ADF and APS
workforce to achieve the Strategic Defence Objectives set out in thisDefence White Paper. This chapter sets out Defence’s plans to develop
and support its integrated workforce to meet this challenge.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.1

146

CHAPTER SIX: PEOPLESECTION TWO CAPABILITY

Growing the integrated Defence workforce
6.6

Defence’s total workforce is currently made up of around 58,000
Permanent members of the ADF, around 19,500 paid and active
Reservists, and around 17,900 full-time equivalent APS employees.
This integrated workforce has a diverse range of skills, including incombat and combat support, capability development and sustainment,
technical, strategy, policy, intelligence and planning, and engineering,scientific and language skills.

6.7

As Defence adopts new and more complex capabilities, the demandson the integrated workforce will increase. New technologies will
require new skills and will rely even more than now on the diverse
range of skills of the integrated workforce. To meet these demands, theGovernment will undertake the largest single rebalance of the integrated
Defence workforce in a generation through the implementation of theFirst Principles Review.

Permanent Australian Defence Force
6.8

Under the plans in this Defence White Paper, the Permanent ADF
workforce will grow to around 62,400 personnel over the next decade.
This is an increase of around 2,500 over previous plans and will support
the introduction of new capabilities. The new ADF positions will coverair, land and sea combat roles as well as intelligence, cyber security andenabling capabilities. This will return the Permanent ADF to its largest
size since 1993. In addition to overall growth, the transition to the futureforce will require the reallocation of around 2,300 existing ADF positions
to higher priority activities as new capabilities are delivered in thisdecade and beyond.

6.9

The scale of the rebalance of the ADF workforce reflects the importanceof continually reviewing and matching our people to the highest priority

Growing the integrated Defence workforce

147

tasks for our country’s future defence. The changes will occur overthe next decade and beyond across all six warfighting and enabling
capabilities outlined in Chapter Four.
Enhancements in intelligence, space and cyber security will
require around 900 ADF positions, including in intelligencecollection and analysis, communications, supporting theinformation requirements of new platforms like the Joint StrikeFighter, surveillance aircraft and navy ships, and to better support
Special Forces and cyber security. The significant growth in ADF
personnel reflects the White Paper’s emphasis on strengthening
intelligence, space and cyber security capabilities to meet our
future challenges.

``

The larger maritime and anti-submarine force will require an
increase of around 800 ADF positions, with further growth beyond
the decade to operate the larger submarine fleet in particular. The
generation of crews with the appropriate mix of skills and experiencemust be carefully managed to meet the challenging growth needed
to operate Navy’s new submarines and surface ships.

``

The strike and air combat workforce will increase by around
500 ADF positions to support the acquisition of deployableground-launched air defence capabilities and advanced
command and control for Integrated Air and Missile Defence.

``

Around 700 additional ADF positions will support enhancements
to capabilities in land combat and amphibious warfare, including
unmanned aircraft, the new long-range rocket capability for land
forces and combat support systems.

``

Enabling capabilities will require around 1,100 additional ADF
positions. This includes logistics, operational support, training
systems and ranges, enhanced support to Navy engineering, force

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

``

148

CHAPTER SIX: PEOPLE

design, analysis and assurance and strategic and international
policy. Defence will gradually increase the number of overseas
military attaches to support the program of enhanced international
engagement.

SECTION TWO CAPABILITY``

Enhancements to the current and planned air and sea lift fleets will
result in the need for around 800 additional ADF positions.

6.10 Defence will undertake further work to identify the ADF positions thatwill be reallocated from lower priority roles to support the operationof new or enhanced capabilities. This work will be informed by the
implementation of the First Principles Review, as discussed in the next
chapter, which will help maximise efficient use of the ADF workforce
within Defence. This will include ensuring that ADF members are only
employed in roles outside of the Navy, Army and Air Force within
Defence when it is critical to achieving the Strategic Defence Objectives.
6.11 Further reshaping and growth of our military workforce is likely to berequired beyond the next decade to operate the new capabilities theGovernment will acquire during this time. This reshaping will take
into account the implications of new technologies, such as increasing
automation and the introduction of more unmanned systems.

Reserves
6.12 The ADF is increasingly drawing on the skills and expertise of Reservists
to deliver defence capability. Many Reservists have critical specialist
expertise not readily available within the Permanent ADF, such as
specialist medical and technical skills. Reservists are an important partof the ADF’s deployed capability on operations within Australia andoverseas. Around 14,000 members of the Reserves have deployed on
operations within Australia and overseas since 1999, around 18 per centof all ADF personnel deployed.

Growing the integrated Defence workforce

149

6.13 The Government is committed to maintaining the role of the Reservesin the ADF’s force structure. This will be achieved through a new more
flexible contemporary workforce model, Project Suakin. Project Suakin
will increase the ability of members to move between the Permanent
ADF and Reserves to better meet their changing needs as they progress
through their working life and as their personal circumstances change.
The new workforce model will better support the employment ofReserves in roles suited to their skills and knowledge across the ADF.
Project Suakin is being implemented through legislation passed in 2015
which introduced a new category of flexible service in the permanent
ADF, and cultural reform and business process reform to make it easierto transition between the Permanent ADF and Reserves.

Australian Public Service
6.15 Defence has a professional APS workforce which fills roles critical todelivering Defence’s capability. Around 43 per cent of the intelligenceworkforce in Defence are APS employees. Other important roles filled by
APS employees include engineers developing and maintaining defence
capabilities, air traffic controllers at RAAF bases, psychologists andsocial workers supporting ADF members and their families, capability
project managers, strategic policy advisers providing advice on planningand executing operations and managers and planners in a range ofcorporate roles including financial, personnel, information management
and facilities.
6.16 The APS workforce in Defence will be rebalanced in accordance with
the Government’s First Principles Review and the future force structure.
The Defence White Paper provides for a future Australian Public Service

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.14 The Government has reformed the ADF Reserve Allowance structure
to reflect the increasing integration of reservists within the total ADF
workforce.

150

CHAPTER SIX: PEOPLE(APS) workforce of around 18,200 Full Time Staff Equivalent (FTE),
down from 22,300 FTE in June 2012.
6.17 Within this total workforce of around 18,200 FTE, enhancements tointelligence, space and cyber security capabilities will involve 800
new APS positions. Four hundred new positions will be created in
information technology support, simulation, support to Navy engineeringand logistics, security, force design and analysis, and strategic andinternational policy, including civilian policy officers posted overseas.

SECTION TWO CAPABILITY

6.18 These new APS positions in areas of high priority will be offset byongoing reductions elsewhere in the APS workforce, including throughthe reform of service delivery areas of Defence’s business, as part of theimplementation of the Government’s First Principles Review.

Recruiting the people we need
6.19 As our defence capabilities become more technologically complex,
recruiting Australians with the right skills mix for these capabilities will
be even more important. It is not enough to have the best equipment – itneeds to be operated and supported by the best people.
6.20 Attracting and retaining the future Defence workforce will be a major
challenge. Being an employer of choice for Australians in a morecompetitive labour market will require fundamental changes to how
Defence plans, manages, and supports its people. A concerted programof recruitment, training and targeted retention will be required to support
this growth.
6.21 Attracting young Australians to an ADF career is a vital investment in ourcountry’s future. The Government reintroduced the ADF Gap Year Programin 2015 and it will continue to grow. In 2015, the ADF Gap Year wasavailable for Army and Air Force and it is also available for Navy in 2016.

Recruiting the people we need151

6.22 Defence is expanding programs focused on recruiting and retaining
Australians with the science, technology, engineering and mathematics
skills it needs. Defence is reintroducing the Defence Technical
Scholarships program for Year 11 and 12 students to support ADF
recruitment and expanding APS cadetships to provide a career pathway
in Defence for science and technology professionals. Defence willseek to attract people with the skills it needs in this area with enhanced
employment offers. These programs will have a particular focus on
attracting and recruiting women and Indigenous Australians.

6.24 Women are under-represented in Defence. Presently, 15 per cent of
the ADF workforce and 41 per cent of the APS workforce are women.
Increased female participation in the Defence workforce, and in seniorleadership, will continue to be a focus in order to broaden Defence’s
access to the considerable skills and capabilities within the Australiancommunity. To grow and advance the female workforce in Defence,
the organisation is focusing on attraction, recruitment and retentionof women, the removal of barriers to progression, and facilitating
development through mentoring and development opportunities.
Defence APS graduate recruitment will continue to include a focus on
increasing the representation of women at this important entry point to
the APS.
6.25 Defence will increase the attractiveness of a military career for women,
including through targeted recruitment initiatives, retention measuresand career support. Defence will improve the representation of womenacross Defence, including in leadership and technical areas, and has
already removed the gender-based barriers preventing women from2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.23 There is strong competition to recruit people with the technical, analytic,
and project management skills and experience needed for important
intelligence and security roles within Defence. Defence will continue tocreate flexible new initiatives to compete effectively for people such as
those needed for intelligence and security roles.

152

CHAPTER SIX: PEOPLESECTION TWO CAPABILITY

serving in ADF combat roles. This commenced with the opening up
of combat roles that have previously been restricted to women alreadyserving in the ADF. From 2016, all ADF combat roles will be open
to new female recruits and Defence Force Recruiting will market all
Defence roles to all prospective ADF members.
6.26 Defence will also seek to enhance the recruitment of Indigenous
Australians and Australians from culturally and linguistically diverse
backgrounds in both the ADF and APS. A specialist recruiting teamhas been introduced to support Indigenous Australians and targeted
initiatives are being introduced for Australians from culturally andlinguistically diverse groups seeking an ADF career. The Defence APS
has increased its annual intake of Indigenous trainees and is making
greater use of special measures to attract Indigenous staff. These
initiatives will be complemented with retention measures, including
career development and mentoring programs.
6.27 Defence has developed a number of additional strategies to enhance
its ability to attract Australians from culturally and linguistically diverse
backgrounds. Defence will improve its future marketing strategies
and engagement in communities that are more diverse. Defence isinvestigating expanding its ADF cadet and short-term Defence work
experience programs for students from a range of diverse backgrounds
to gain exposure to a range of ADF and APS jobs.

Developing our people
6.28 Our rapidly changing strategic environment requires us to continuallybuild the skills of our people. Defence will improve its comprehensive
program of professionalisation and development to support careers in
the ADF and the APS.

Retaining our people

153

6.29 Joint military education across the ADF is growing in importance.
Defence must ensure that our Defence colleges and educational
institutions are best equipped to develop the future leaders of the ADF.
Specific priorities for the APS are to professionalise the workforce inroles that are critical to delivering and sustaining Defence’s capabilities,
and to build greater leadership capability in the executive level
workforce. Defence APS graduate development and training will bringmore emphasis to improving policy skills.

6.31 Defence will expand cultural and language capabilities to increase
its effectiveness in operating in the region and collaborating withinternational partners. Defence will develop higher levels of cultural
understanding of our region, including more intensive training for those
who work routinely with regional partners. Defence will increase thenumber of personnel with intermediate and advanced language skills
to support our enhanced international engagement, with a focus on
languages in the Indo-Pacific region.

Retaining our people
6.32 Retaining the high-quality, experienced staff that Defence has developed
over time is as important as attracting new talent. The Government is
not complacent about the challenges in retaining and growing the highly
skilled workforce Defence needs to deliver the plans set out in thisWhite Paper.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.30 Defence will continue partnering with accredited academic institutions
so that Defence personnel are provided the best education in relevant
specialised fields such as national security policy analysis, intelligence,capability development, engineering and a range of technical training.
Defence will ensure personnel who need to acquire new skills can doso efficiently through improved technology to enhance flexibility andinnovation in training, education, and skilling.

154

CHAPTER SIX: PEOPLESECTION TWO CAPABILITY

6.33 We will continue to ensure that the employment offers to Defence staff
remain competitive to attract and retain the right number of people withthe skills Defence requires. Should particular critical skills requirements
emerge, Defence will use targeted employment strategies to ensure thatit recruits and retains people with those critical skills. Defence must also
ensure that the employment conditions it offers are relevant to people
who are currently under-represented in Defence, including women,
Indigenous Australians, and people from culturally and linguisticallydiverse backgrounds. Defence should seek to represent the community
it protects and from which it recruits.
6.34 Further, as set out earlier in this chapter the Government will introduce
a contemporary workforce model for the ADF to provide greaterorganisational flexibility and agility, and provide ADF members with more
options and mobility. It will enable the whole ADF workforce to be used
more effectively, drawing on both Permanent and Reserve workforce
components and skills more flexibly in the delivery of defence capability.

Defence culture
6.35 Defence is rightly proud of its mission-focused mindset. Unwavering
service to our country underpins the ADF’s reputation as a worldclass fighting force. At the same time, Defence must operate to thehighest ethical standards in leadership and management for all people
in Defence. This means acting with fairness and integrity, promoting
diversity and inclusion, and maintaining a zero tolerance stance towards
unacceptable behaviour. The strength of Defence’s leadership modeland its ability to adapt and embrace a more diverse and inclusive culture
will be critical to attracting and retaining the workforce it needs forthe future. Pathway to Change drives and reinforces Defence’s culturalchange, and its theme – we are trusted to defend, proven to deliver
and respectful always – is being delivered across Defence. In 2016,
Pathway to Change marks its fourth year of implementation. Over the last

Defence culture155

four years, Defence has established the Sexual Misconduct Prevention
and Response Office; released the ADF Alcohol Management Strategy;
established mechanisms to increase diversity and inclusion within
leadership groups and Defence more broadly; conducted Defence-wide
discussions on values and behaviours; delivered Defence educationand training programs informed by agreed values and behaviours; andenabled expedited corrective processes by simplifying responses to,and management of, unacceptable behaviour.

6.37 Considerable work remains to address the very serious issues raised
through the Defence Abuse Response Taskforce. Defence must care forits people, particularly those affected by abuse, and continue to makethe systematic and cultural changes necessary to deliver a safer andmore professional workplace.
6.38 Defence will continue to implement initiatives such as the Restorative
Engagement Process, and the Sexual Misconduct Prevention andResponse Office. This work is guided by the requirement that any process
should not traumatise victims. Defence will continue to identify ways tosupport our people who have been affected by abuse to move forward

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.36 Defence has made substantial progress in addressing a range of culturalissues, but the organisation cannot become complacent. Throughcontinued and visible commitment from Defence’s senior leadership,
and a number of supporting cultural programs, efforts are ongoing toincrease diversity and inclusion in Defence. Defence will continue to
implement its Pathway to Change strategy, supported by Navy, Armyand Air Force programs, and culture initiatives across the APS. This
will give further attention to career opportunities for women, people
from culturally and linguistically diverse backgrounds and people withdisabilities. Accountability for cultural reform will be required across alllevels of leadership in Defence. Additionally, Defence will continue its
four-year collaboration with the Australian Human Rights Commission toprogress cultural change throughout Defence.

156

CHAPTER SIX: PEOPLE

with their lives. Defence understands that actions against perpetrators ofabuse are a clear indication of the organisation’s commitment to defend
the rights of Defence members. There will be a continued emphasis on
identifying and dealing with perpetrators of abuse.

Looking after our people

SECTION TWO CAPABILITY

6.39 The Government is committed to providing members of the ADF withleading health care. The Government recognises that new approaches
are needed to properly care for our ADF members throughout theircareer, in particular those who have been wounded or injured or who fall
ill in the course of their service to our country.
6.40 A new $133 million Defence eHealth System has been launched, linking
ADF members’ health data from recruitment to discharge and enabling
better continuity of health care for all Defence personnel. Defence will
improve the operation of this system by incorporating the pre-2014
paper-based health records of ADF members into the new electronicsystem, making them accessible wherever they serve. This process
will take a number of years to complete. To support improved healthservices, additional military medical officers will be available at major
ADF bases.
6.41 The mental health of our people in Defence is as important as their
physical health. We now better understand the impact Post TraumaticStress Disorder is having on serving members, their families and loved
ones. This impact can affect members and their families both during
and following their service. Defence will continue to improve the use of
screening, education and awareness programs to care for and support
Defence members seeking help as early as possible, and will provide
additional resources for more specialist medical mental health care.
6.42 In 2014, the Government established a program where the Department
of Veterans’ Affairs will pay for treatment for any ADF member with

Looking after our people

157

at least three years continuous full-time service who is experiencing
diagnosed Post Traumatic Stress Disorder, anxiety, depression or alcoholor substance abuse without the need to establish that their mental healthcondition is related to their service.
6.43 The Government has launched the innovative ‘High Res’ smart phone
app that will help serving and ex-serving ADF members manage stressand build their psychological resilience. High Res is particularly
designed to improve mental health outcomes for the current generationof ADF members and younger veterans who engage with health services
differently to older veterans.

6.45 The Government will continue to improve linkages between the
Departments of Defence and Veterans’ Affairs in support of our veteransand ADF members as part of our strategy to provide a continuumof support. Defence and the Department of Veterans’ Affairs havedeveloped a joint program of work, the Support for Wounded, Injured
and Ill Program, which is improving and simplifying the way in whichgovernment supports wounded, injured and ill members. Further
improvements will include improved electronic systems to better share
information, on the service of ADF members, between Defence andthe Department of Veterans’ Affairs and building closer ties between
Defence and the Department of Veterans’ Affairs.
6.46 The Government has extended access to the Veterans and Veterans
Families Counselling Service to include current and ex-serving
members who have served on border protection duties, in a disasterzone in Australia or overseas, and for members medically discharged
from the ADF.

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.44 A pilot of the Reserve Assistance Program is underway. This programprovides confidential, cost-free, professional counselling services tohelp Reserve members and their immediate families who have mental
health issues, regardless of whether those issues are directly related tomilitary service.

158

CHAPTER SIX: PEOPLESECTION TWO CAPABILITY

6.47 To inform the way we support members of the ADF and veterans, theGovernment is conducting the Transition and Wellbeing Research
Program. This is the largest and most comprehensive study of its typeundertaken in Australia. This research program is examining the impactof military service on the mental, physical and social health of serving
and ex-serving personnel, who have deployed to recent conflicts, andtheir families.
6.48 Defence will partner with the Department of Veterans’ Affairs, Australian
defence industry, and other ex-Service organisations to support those
who have been affected by their service to our country to find a new
career, ensuring that they are treated with the respect and dignity that
their service deserves. Finding a new career will enable our veteransto continue making valuable contributions to their communities once
their military service is completed. The Government will make available
to all ADF members the current Army initiative that supports wounded
or injured soldiers, who can no longer remain in service, transition to a
new career.
6.49 The Government will enhance the existing Career Transition Assistance
Scheme to better support members transitioning out of the ADF, withless than 12 years service, to find new employment.
6.50 The Government has made changes to the indexation of the Defence
Forces Retirement Benefits and Defence Force Retirement and Death
Benefits superannuation schemes to ensure pensions keep pace with thecost of living.
6.51 The Government will introduce a contemporary superannuation scheme
for new ADF members from July 2016. The new superannuation
arrangements will provide additional flexibility for members of the ADF.
The new scheme will allow ADF members to join the superannuation
fund of their choice and will improve flexibility and portability of thebenefits provided.

The Defence community

159

6.52 The Government will continue to support the activities of ex-Service
organisations that assist current and former ADF members who have
served our country.

The Defence community
6.53 The Government understands the pressures that ADF members, and theirfamilies, face during and after their service to Australia. The Government
will ensure that Defence families receive enhanced health care support
during periods of transition and high-quality housing.

6.55 In January 2014, the Government introduced the National Australian
Defence Force Family Health Program, providing free General
Practitioner and basic allied health care to all ADF dependants, as wellas the ability to claim up to $400 a year for health services, such as
physiotherapy, dentistry and mental health support.
6.56 We will continue to support ADF families who relocate because the ADF
member is posted and while their loved ones are deployed. We willcontinue to assist spouses with finding new work, particularly where
their employment has been affected through a posting or deployment of
their serving partner.
6.57 The Government recognises the importance of quality housing for ADF
families. Helping to ensure Defence members and their families are
suitably housed when they are posted to a new location is a key part of
supporting mobility and retention within the ADF. The Government will

2016 DEFENCE WHITE PAPERSECTION TWO CAPABILITY

6.54 For family members of current and former ADF members theGovernment will deliver improved electronic access to information on
the range of services and support available to them from government
agencies as well as the broader community. This measure will buildon the implementation of improved on-line support, services andinformation for ADF members, including Reservists.

160

CHAPTER SIX: PEOPLE

ensure that Defence Housing Australia continues to provide
high-standard housing that delivers the best outcome for ADF
members and their families.
6.58 The Government, in partnership with the community, will continue tosupport the ADF cadet program. This personal development programfor young people builds personal skills including leadership andteamwork, and promotes Defence as a potential career pathway for its
participants. Cadets are an important element of Defence’s engagementwith the community and the program plays an important role in building
community awareness of Defence and the roles of the ADF.

SECTION TWO CAPABILITY

Delivering the future workforce
6.59 To deliver the White Paper’s plans for the future workforce, Defence
will develop a 10-year Strategic Workforce Plan in 2016. The Strategic
Workforce Plan will set out the skills Defence needs and detail how
Defence will attract, retain and develop its people. The Strategic Workforce
Plan will provide workforce priorities, practical initiatives and resources for
attracting, growing, and retaining the people Defence needs.

161

Intentionally blank2016 DEFENCE WHITE PAPER

162

SECTION THREE
REFORM,RESOURCING &IMPLEMENTATIONCHAPTER SEVEN

Reform of Defence

CHAPTER EIGHT

Funding Defence

CHAPTER NINE

Implementing this Defence White Paper

164

7

165
`` Chapter Seven: Reform of
Defence
7.1

The more complex future strategic environment Australia faces will place
greater demands on Defence, particularly its ability to adapt to change,
to innovate and to integrate reform into its core business processes.

7.2

The Government’s plans to deliver a more capable, agile and potent
future force involve bringing strategy, capability, and resources backinto alignment through this White Paper and the Integrated Investment
Program, and by reforming the Defence organisation to deliver theseplans through implementation of the First Principles Review.

The First Principles Review – The Government’s
reform program
In August 2014, the Government commissioned the First Principles
Review to ensure that Defence is appropriately structured and organised
to meet the challenges of the future.

7.4

The challenges Defence will face over the period to 2035 require ahighly professional, well-governed and agile organisation that can
respond to changing environments, seize opportunities and manage
increasing strategic, political, cultural and technological complexity.

7.5

The Review directly addressed the need for a unified Defence
organisation, including a joint force that is more consistently linked
to its strategy. In the past, reform has been difficult because theorganisation has not been unified in the way it conducts business.
Despite the reforms that Defence has undertaken over the last few
decades, the First Principles Review found:2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.3

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

166

CHAPTER SEVEN: REFORM OF DEFENCE``

An organisational model that is complicated, slow and inefficient
operating as a loose federation with a weak centre.

``

A proliferation of structures, processes and systems with unclear
accountabilities.

``

External stakeholders portraying Defence as inward looking,complicated and difficult to deal with.

``An organisational culture that is risk averse and resistant tochange.

7.6

The Review focused on looking forward and on designing an integratedorganisational model to address these issues so that Defence as a whole
can shape and respond quickly to changing strategic circumstances
over the period to 2035. The fundamental tenet of the Review is that
Defence needs to operate as One Defence, a unified and integratedorganisation that is more consistently linked to its strategy and clearly
led by its centre.

7.7

Through the Review’s implementation, the Government is undertaking
a once in a generation redesign of the way Defence does business.
A fundamental redesign must be implemented now – an incremental
approach will not deliver the Defence organisation Australia needs toachieve the long-term plans in this Defence White Paper including themore capable, agile and potent ADF.

7.8

The Review made 76 recommendations for reform. The Government has
agreed, or agreed in-principle, to 75 of these recommendations. The
Government did not agree to the integration of the Defence Science andTechnology Group into the new Capability Acquisition and Sustainment
Group, but will further consider this recommendation after the first yearof implementation.

7.9

Implementing the Government’s reforms will ensure Defence will
become an integrated organisation driven by a strong strategic centre
rather than a federation of separate parts.

The First Principles Review – The Government’s reform program

167

7.10 This single integrated organisation will be agile and able to manage
greater complexity, while delivering its outcomes in a more effective andefficient way. It will be more capable of adapting quickly to changing
circumstances, including in response to further technological or socialchanges of relevance for Australia’s strategic defence interests.
7.11 Substantial changes across Defence will be made to ensure deliveryof the future requirements outlined in this Defence White Paper. Thechanges involve organisation-wide structural, system and processchanges, combined with clearer personal accountabilities and arequirement for a significant shift in business culture, particularly in the
behaviours of leaders at every level.

7.13 The two year implementation timeframe for the First Principles
Review drives a focus on tangible actions that address workplace
behaviour. This is called the One Defence Behavioural Model and its
focus on changing workplace behaviours is consistent with the core
longer-term cultural change goals of Pathway to Change, particularly
improving personal accountability. Defence will institute a performance
management system that links employees’ roles and actions to
Defence’s goals and deliverables. This will be supported by effective
learning and development programs, and improved performancemeasures that support a high performing organisation.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.12 As Defence implements the First Principles Review, it will focus
on developing leadership, accountability and behaviours to driveorganisational performance. The business culture will focus on building
a workforce that explores opportunities, solves problems, builds teams
and at every level makes judgements that are in the best interest of
Defence. The performance of Defence’s senior leaders will be measured
not only in terms of outcomes delivered but the effectiveness of theirleadership behaviours and alignment with Defence’s values. A unified
leadership team, willing to take individual accountability for improving
organisational outcomes will be fundamental to Defence’s success.

168

CHAPTER SEVEN: REFORM OF DEFENCE

7.14 A new and simplified business model for Defence will be introduced
which focuses on its core business. It has three key features:``

A stronger strategic centre able to provide clear direction,
contestability of decision-making as well as enhanced control ofresources and monitoring of organisational performance.

``

An end-to-end approach for capability development. Capability
Managers will be assigned clear authority and accountability
for the delivery of capability outcomes to schedule and budget,
supported by an integrated capability delivery function and subject
to stronger direction setting and contestability from the centre.

``

Enablers that are integrated and customer-centric with greater useof cross-functional processes, particularly in regional locations.
Major Business
Processes

Direction setting
and contestability

Defencecapability

Policy & Strategy

Military Command

Force Design & Joint
Capability Authority

Enterprise
Perfomance & Risk

Needs & requirements

AcquirePrepareOperateIntellience

Joint Operations

Capability Managers
Army

Capability
development
Capability delivery

Joint
Navy

Policy development
and advice

Air Force

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

Capability Acquisition & Sustainment
Science & Technology

Enablers

Control

Security

Finance

Facilities &EstateInformation
management &ICTInternal Audit

Figure 4:

Human
Resources

Inspectors General

Legal

Security

Service delivery

Judge Advocate

Governance andassurance

One Defence Business Model

A strong strategic centre
7.15 The Government will strengthen accountability and top-level decision
making in Defence by creating a stronger strategic centre. The strategic
centre is the senior management structure in Defence that sets

The First Principles Review – The Government’s reform program

169

priorities, manages resources and is responsible for steering the wholeorganisation to implement the Government’s defence policies. The
strategic centre includes the Secretary of the Department of Defence,
the Chief of the Defence Force and the Vice Chief of the Defence Force,the Associate Secretary, the Deputy Secretary Strategic Policy andIntelligence and the Chief Finance Officer. This group forms the Defence
Committee which is the primary decision-making committee in Defence.
7.16 The stronger strategic centre will have more power and authority to set
direction for all of Defence’s activities and will maintain close oversightof the delivery of the strategy, capability, and resources set out in thisDefence White Paper.
7.17 Defence will reduce top-level management and the number ofcommittees, while strengthening its planning and performance monitoring
to improve accountability. These reforms will fundamentally change theway Defence makes decisions and implements them, positioning Defence
to better manage the threats and challenges for Australia to 2035.
7.18 The Government has made legislative changes to recognise thecommand authority of the Chief of the Defence Force over the ADF and
its three Service Chiefs and the command and administrative authority of
the Vice Chief of the Defence Force.

7.20 Defence will establish a permanent future force design function, under
the Vice Chief of the Defence Force, to strengthen Defence’s capacity todeliver the joint and integrated ADF outlined in Chapter Four. The Vice

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.19 The Government will ensure the accountabilities of the Secretary of
the Department of Defence reflect the Secretary’s responsibility for
managing the Defence budget and overall investment management.
The Secretary will have primary accountability for coordinating theprovision of timely advice to Government, including on policy aspects ofoperational deployments.

170

CHAPTER SEVEN: REFORM OF DEFENCE

Chief will be empowered to ensure new projects proceed on the basis of
relevance and importance to the joint force.
7.21 A strong internal contestability function will be built and led by the
Deputy Secretary Strategic Policy and Intelligence with responsibility
for strategic, scope, technical and cost contestability. Strong internal
contestability will ensure that Defence expenditure is aligned with theStrategic Defence Objectives.
7.22 The Associate Secretary’s role as the integrator of Defence’s corporate
enterprise functions and as the central authority to deliver strategic
centre-led enterprise planning and performance monitoring will bestrengthened. Making the right decisions means getting the rightinformation to decision-makers in a timely way. The Associate Secretaryof Defence will be empowered to strengthen enterprise-wide information
management. Stronger information management outcomes will help
ensure Defence is better managed.

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.23 Defence will improve the quality of its strategy and policy advice
to Government. Defence’s policy and intelligence functions will
be consolidated under the Deputy Secretary Strategic Policy andIntelligence.

Capability development life cycle
7.24 Under the plans set out in this Defence White Paper, Defence will
implement a substantial force modernisation program, which will bringmajor organisational and cultural challenges. This modernisation will
introduce new capabilities that will carry within them the requirement
for new ways of working, particularly as Defence integrates complex
and globally networked systems into the joint force. The reforms
being implemented under the First Principles Review are essential todelivering these plans.

The First Principles Review – The Government’s reform program

171

7.25 Proper planning for the acquisition of complex equipment and systems
takes years of analysis and careful decision-making before acquisitions
can commence. This is only proper for the expenditure of billions ofdollars involving decades of effort. New submarines and frigates, forexample, will be brought into service from the 2020s until well into the2040s and will operate into the second half of this century. It is therefore
essential that Defence planning for the future force is consistent andpredictable and is supported by consistent and adequate budgets.
7.26 The Defence Materiel Organisation has been disbanded and its core
responsibilities in relation to capability delivery have been transferredto the new Capability Acquisition and Sustainment Group. The newGroup is led by a Deputy Secretary reporting to the Secretary of the
Department of Defence. The number one priority for the new Group is towork cooperatively with other parts of Defence to ensure the ADF has thenecessary capabilities to fulfil its missions and operations.

7.28 Defence’s acquisition processes will be improved to introduce
more rigour and agility. Defence will introduce greater rigour to thedevelopment of projects before they enter the approval process tomake sure they are aligned with the Strategic Defence Objectives.
Defence will capitalise on the work done to cost assure this White
Paper by introducing more fidelity of cost estimation into the capability
development process, including ongoing independent external
assurance of Defence project costs.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.27 The establishment of the 10-year Integrated Investment Programprovides the framework for capability development and delivery
functions in Defence. This will be reinforced by the strategic direction,
force design, and contestability functions addressed earlier in thischapter to ensure an integrated capability development life cycle. Thisapproach will enable Defence to better manage investment, set priorities
and allocate resources in accordance with this White Paper.

172

CHAPTER SEVEN: REFORM OF DEFENCE

7.29 The Government will revise the current process for approving new
projects to ensure a proportional approach is taken depending on
the cost, schedule, technical complexity and overall risk of projects.
Through these changes, Defence will be able to tailor the acquisition
process to the capability being sought. This will give Defence moreagility to acquire rapidly evolving technology and speed up lesscomplex acquisitions. Efficient capability planning and procurement
processes within Defence will ensure that the ADF has the capability itneeds when it needs it, and the value for money Australia receives fromits investment in Defence is maximised.
7.30 As highlighted in Chapter Four, the Government will ensure that
Australian defence industry is considered as an early and core elementof Defence’s capability. Decisions about defence capability will takeproper account of Australian defence industry at all stages of thecapability life cycle.

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

Corporate and military enablers
7.31 The Government’s investment in enablers, set out in this White Paper,
such as information management and the Defence estate, includingbases, wharves and runways, reflects how critical they are to theeffective and efficient delivery of defence capability. Without theseenablers Defence cannot generate the combat effects required to achieve
the Strategic Defence Objectives. The First Principles Review will ensurethat these enablers are fully integrated within a single Defence service
delivery system.
7.32 Through the Integrated Investment Program accompanying this White
Paper, the Government has clearly articulated its requirements of the
Defence estate and facilities to support defence capability and the futureforce. We will invest the resources needed to ensure that the estate
can support future ADF operations and capability. Estate rationalisation
will continue to be considered on a case by case basis as part of theThe First Principles Review – The Government’s reform program

173

implementation of this White Paper and the First Principles Review. Anysavings realised through the sale of Defence bases will be reinvested in
Defence capability.
7.33 Under the accountability of the Associate Secretary, the Chief
Information Officer is the single authority for all Defence-wide
information networks, including their design and management. The
Chief Information Officer will have a mandate to ensure warfighting
and corporate information management projects comply with required
standards. All proposals for new information systems are to be agreed
with the Chief Information Officer.
7.34 Information management providing common situational awarenessand information superiority is essential to our war fighters. It is
becoming even more important with the growing information needsof new sophisticated capabilities like the Joint Strike Fighter. Within
the framework and standards set by the Chief Information Officer, theVice Chief of the Defence Force will oversee the implementation of an
information system which will better meet the needs of the joint force,
including providing enhanced command and control, communications,and intelligence, surveillance and reconnaissance information.

7.36 Defence will further consolidate its other enabling corporate services
such as finance, human resource management and administration tominimise duplication and strengthen service delivery.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.35 Defence will establish more effective geospatial intelligence
management with the Australian Geospatial-Intelligence Organisation
having central control of all geospatial functions within Defence. This
will strengthen the collection, analysis and distribution of geospatial
information across Defence.

174

CHAPTER SEVEN: REFORM OF DEFENCE

Implementing the First Principles Review
7.37 Implementation of the First Principles Review has commenced within
Defence, based on an Implementation Plan, which sets out the specificinitiatives and milestones to ensure the reforms are delivered.
7.38 The Secretary of the Department of Defence and the Chief of the Defence
Force are leading implementation of the Review. This reflects thefundamental tenet of the Review that Defence needs to operate as a more
unified and integrated organisation, which is led by a strong strategic
centre. Implementation of the Review commenced on 1 July 2015 and isbased on a two-year plan with key milestones.

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

7.39 Implementation is being supported by an external Oversight Board which
is providing advice on implementation and regular independent reports
to the Minister for Defence. The Minister will make annual reports on
progress to the National Security Committee of Cabinet.
7.40 The Government recognises that implementation of this once in a
generation complex and transformational reform process will taketime. The Government will not initiate any additional reviews of theorganisational issues covered by the First Principles Review for a periodof five years. In addition, with the exception of Pathway to Change, theFirst Principles Review will supersede all past Defence reviews andreform initiatives. This will ensure that Defence implements a single,
consolidated reform program moving forward.
7.41 The Government’s reforms will establish a single, integrated Defence
organisation that has the capacity and agility to manage the threats andchallenges Australia will face to 2035.

175

Intentionally blank2016 DEFENCE WHITE PAPER

176

8

177
`` Chapter Eight: Funding Defence
The Government’s plan for funding Defence
8.1

Previous chapters have addressed Australia’s strategic challenges to2035, the defence strategy we need to protect our nation’s security
and prosperity, and the transformation in our defence capabilities
and Defence organisation required to achieve the Strategic Defence
Objectives.

8.2

This chapter outlines the Government’s long-term funding commitment,
which is critical to executing the Government’s plans for Defence. A new
10-year funding model will see Defence funding increasing to two percent of Australia’s Gross Domestic Product (GDP) by 2020–21. Central
to the development of this funding model has been the Government’s
direction to align defence strategy, capability and resources.

The funding model
Defence must have confidence in its funding so it can develop andimplement long-term plans. Australian defence industry also needs
funding certainty to confidently invest in infrastructure, skills andcapabilities so that it can play its part as a fundamental input to defence
capability.

8.4

Between 2009–10 and 2013–14, $18.8 billion of Defence funding
was handed back to Government, resulting in the deferral of theacquisition of new capabilities. This has led to ageing equipment andunderinvestment in critical enablers, including information technology,
and the Defence estate such as military bases.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

8.3

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

178

CHAPTER EIGHT: FUNDING DEFENCE

8.5

The Government has introduced a new 10-year funding model for
Defence which gives Defence the long-term funding certainty it needs.
The Government’s long-term funding commitment to Defence will see
the Defence budget grow to $42.4 billion in 2020–21, reaching two percent of Australia’s GDP based on current projections.

8.6

Substantial progress has already been made towards meeting thislong-term commitment to grow the Defence budget. In the 2014–15
Commonwealth Budget, the Government delivered on its promise to not
cut the Defence budget. In 2015–16, the Defence budget grew with anincrease of $9.9 billion over the forward estimates. The Defence budget
in 2015–16 is $32.3 billion.

8.7

The Government will continue to increase the Defence budget to reach$42.4 billion, which is two per cent of GDP, in 2020–21. Across the
10-year Defence budget model Defence will be provided with$29.9 billion more than was previously planned in the period to2025–26. This provides Defence with long-term planning certainty it
has not had since the Defence White Paper in 2000.

8.8

This 10-year funding model is based on a fully costed future force
structure, with external validation of these costs by experts in cost
assurance from private sector companies which are globally recognised
for their cost analysis and assessment services. This is the mostcomprehensive cost assurance that has been undertaken for a Defence
White Paper. The external cost assurance process included investigating
the acquisition and sustainment costs for potential new capabilities,
as well as significant existing equipment, facilities and information
technology projects, the Defence workforce and the cost of ourenhanced program of international defence engagement.

8.9

Collectively, around 80 per cent of the Defence budget has beenexternally cost assured by private sector experts, with the remaining
budget subject to internal cost analysis and assurance. This has

The funding model

179

provided assurance that our defence strategy is affordable andachievable within the budget that Defence has been allocated.
8.10 To strengthen Defence’s long-term budget and planning certainty, theGovernment has decided that the 10-year funding model will be not be
subject to any further adjustments as a result of changes in Australia’s
GDP growth estimates. This de-coupling from GDP forecasts will avoid
the need to have to regularly adjust Defence’s force structure plans in
response to fluctuations in Australia’s GDP.
8.11 The funding growth path to reach two per cent of GDP by 2020–21
will be aligned with the organisational and capability priorities in thisDefence White Paper. Over the next two years, while the First Principles
Review is being implemented and reforms are being institutionalised,
the Defence budget will grow gradually. After this period of reform, therate of funding growth will increase towards the end of this decade todeliver the capabilities set out in the White Paper.

8.13 The Government’s 10-year Defence budget model is illustrated in
the table below, which shows the increase in Defence funding overprevious plans.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

8.12 As Chapter Four and the Integrated Investment Program accompanying
the White Paper highlight, substantial new investment will be requiredin the first half of the 2020s, including for the acquisition of the futuresubmarines and frigates, which will be major drivers of Defence
expenditure. The majority of the additional funding to 2025–26 will be
provided from 2019–20 to meet these requirements.

SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

180
Total
2016–2017to2025–2026$m
Funding Excluding Operations(Pre-ERC 2016–17)
Increased Funding
2016 White Paper Funding
Excluding Operations
Operations(Pre-ERC 2016–17)
2016 White Paper Funding
Including Operations

31,532

34,18036,70938,486

40,58542,58845,19347,33749,47751,540417,627

700

0

60

600

1,800

3,200

4,500

5,540

6,256

7,202

29,85832,232

34,18036,76939,08642,38545,78849,69352,87755,73258,742447,485

142

19

0

0

0

0

0

0

0

0

161

32,37434,19936,76939,08642,38545,78849,69352,87755,73258,742447,646

Table 1: 2016 White Paper Funding Profile 2016–17 to 2025–26

CHAPTER EIGHT: FUNDING DEFENCE

2016–2017 2017–2018 2018–2019 2019–2020 2020–2021 2021–2022 2022–2023 2023–2024 2024–2025 2025–2026

How will Defence funding be spent?

181

How will Defence funding be spent?
8.14 The Defence budget, not including its funding for overseas operations,comprises four major categories of costs: capital investment in new
equipment; sustainment of capabilities; employees; and operating costs.
Balancing these costs is essential to maintaining the ADF’s capabilities.
It is not enough to invest in sophisticated and costly equipment alone.
Defence must also invest in the skills of our people to support the ADF’s
capabilities and in maintaining our equipment to the highest standards
to maintain its overall capability. At the same time, Defence must spend
the money it is provided efficiently and effectively to maximise thecapabilities it can provide.
Over the period to 2025–26, capital investment will grow from
29 per cent of the Defence budget ($9.4 billion) to 39 per cent in2025–26 ($23.0 billion), recognising the priority the Government
places on reinvesting in defence capabilities for the future. This
includes major new capabilities like the Joint Strike Fighters,armoured vehicles, maritime surveillance aircraft and essential
enablers such as information technology, Defence bases andcommunications equipment.

``

Investment in sustainment costs will grow from 25 per cent of
the Defence budget ($8.1 billion) to 28 per cent by 2025–26($16.4 billion). This funding will support the more active andregionally engaged ADF of the future, including increased
expenditure on fuel, maintenance and other support costs
associated with a higher tempo of ADF operations and exercises.

``

Investment in Defence’s people capability, as set out in
Chapter 6, will grow from $12.0 billion in the Defence budget to$15.3 billion in 2025–26. The proportion of the Defence Budget
allocated to personnel will reduce from around 37 per cent toaround 26 per cent.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

``

182

CHAPTER EIGHT: FUNDING DEFENCE``

Defence’s operating costs, such as freight, travel and contractors
will remain at around seven to nine per cent of the budget, and willgrow from $2.8 billion in 2016–17 to $4.0 billion in 2025–26.

8.15 The breakdown of the new funding model by these major categories is
illustrated in the chart below.
70 00050 0002025–26: 7%

40 0002025–26: 26%

Total Sustainment Guidance

Total Operating Expenditure Guidance

Total Appropriation

Figure 5:

6

5

–2
25
20

4

–2
24
20

–2
23

3

Total Capital Investment Guidance

20

2

–2
22
20

–2

–2
19

8

–1

20

18
20

–1
17
20

–1
16
20
SECTION THREE REFORM, RESOURCING & IMPLEMENTATION

2025–26: 39%

21

2016–17: 29%

1

0

20

2016–17: 25%–2

10 0002025–26: 28%

20

2016–17: 37%

0

20 00020

2016–17: 9%930 0007$ million

60 000Total Employees Guidance

Guidance Expenditure by Category

Budgeting in Defence
8.16 The Government is determined that this Defence White Paper
re-establish an affordable, achievable, and sustainable basis for our
nation’s defence and to rebuild our capabilities.
8.17 The commitments in this White Paper, and its supporting Integrated
Investment Program, provide consistency and predictability in thedesign of the future ADF and the Defence budget. Defence must
implement these plans effectively and efficiently.

Budgeting in Defence

183

8.18 Implementation of the Government’s First Principles Review will deliver
a new and simplified business model for Defence, which focuses on its
core business. This includes a stronger strategic centre with enhanced
control of resources and monitoring of organisational performance.
8.19 The First Principles Review will deliver fundamental reforms to thecapability development life cycle to ensure that Defence capability isplanned, delivered, and sustained more effectively. Lessons from theexternal cost assurance of this White Paper will also be embedded in the
new capability development process and in Defence budget planning todeliver the plans set out in this White Paper.
8.20 Transforming Defence into an organisation that is strongly focused on
its core business and outcomes will lead to efficiencies. Any savings
obtained through these efficiencies will be reinvested in the capabilities
outlined in this White Paper. The First Principles Review assessed that
there are efficiencies to be obtained by:
Improving the efficiency and effectiveness of the capability
development and acquisition processes, as set out in Chapter
Seven.

``

Integrating the Defence Materiel Organisation into Defence,
which will reduce the number and costs of financial and othertransactions and support the full implementation of sharedcorporate services within Defence.

``

Reducing middle management spans and layers to improve thestructure of the enabling workforce. Savings will be generated
as managers are given more responsibilities and the number ofmanagement roles is reduced.

8.21 The Government will periodically review our capability and funding plansto ensure that they remain appropriate to our strategic circumstancesand objectives.

2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

``

184

9

185
`` Chapter Nine: Implementing thisDefence White Paper
The Government’s decisions in this Defence White Paper will be
implemented in the same deliberate, rigorous, and methodical way
that we have approached the development of the White Paper. We haveprovided the budget certainty and consistency required by Defence,
Australian defence industry and our domestic and international partners
to deliver the long-term plans set out in this White Paper to safeguard
the future security and prosperity of our country.

9.2

To deliver the Government’s long-term plans, implementation must
start now. To set Defence on the path to implementing the plans set
out in this White Paper, Defence will develop an integrated two-year
White Paper implementation strategy to be finalised within one monthof release of this White Paper. The implementation strategy will ensure
Defence maintains tight alignment of strategy, capability and resources.

9.3

Implementing the Government’s direction in this White Paper will require
strong coordination and sustained priority and energy. Implementation
will be driven by Defence’s stronger strategic centre. The Defence
Committee has been repositioned to provide the Secretary of the
Department of Defence and the Chief of the Defence Force with aneffective strategic forum to make major organisational, capability andresourcing decisions. The Defence Committee will be responsible forleading and coordinating White Paper implementation across Defence.

9.4

The implementation strategy will be aligned with First Principles Review
and cultural reform implementation. Under the First Principles Review
we have directed the most sweeping structural and business process
reforms since the 1990s so that we have an organisation capable of2016 DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

9.1

186

CHAPTER NINE: IMPLEMENTING THIS DEFENCE WHITE PAPERSECTION THREE REFORM, RESOURCING & IMPLEMENTATION

meeting the challenges set out in this White Paper. This comprehensive
reform program will be implemented in full.
9.5

The Minister for Defence will meet with the Defence Committee every
six months to consider a formal strategic assessment of the alignment
between Defence’s strategy, capability and resources, together with First
Principles Review and cultural reform implementation. These six-monthly
reviews will be an important element in ensuring that implementation ofthis Defence White Paper is on track. The outcomes of these Ministerial
reviews will drive the Government’s annual Defence budgeting and priority
setting, including through the four-year Defence Corporate Plan and the
Defence Business Plan, which set out Defence’s priorities.

9.6

These regular reviews of our strategy and plans, and implementationof business and cultural reforms, will ensure that the Government andDefence are positioned to adjust our plans to seize opportunities andmanage risks as our strategic circumstances change.

187

Intentionally blank2016 DEFENCE WHITE PAPER

188

Intentionally blank