Defence strategic policy and risk review informs decision making to ensure strategy, capability and resources are aligned to Government priorities

2019–20 Defence Corporate Plan

Activity 2.1

Portfolio Budget Statements 2019–20

Program 2.1

Achieved

Defence strategic policy and risk review has been regularly reviewed throughout 2019–20 to ensure that strategy, capability and resources are aligned to Government priorities. This has been demonstrated through the development and release of the 2020 Defence Strategic Update and the 2020 Force Structure Plan. The publication of the Defence Planning Guidance and the conduct of Strategic Risk Reviews during the period further ensured that Government direction was implemented across Defence and that policy and risk analysis activities remain timely, relevant and responsive to the needs of Defence leaders and Government decision-makers.

Australia's strategic position is enhanced through international engagement by Defence

2019-20 Defence Corporate Plan

Activity 2.2

Portfolio Budget Statements 2019-20

Program 2.1

Achieved

Although global COVID-19 restrictions had an impact in 2020, Defence continued to strengthen and deepen its engagement in the South-West Pacific, South-East Asia, North-East Asia and the Indian Ocean region. This has occurred across multiple functional domains, including military exercises; bilateral and multilateral dialogues; personnel training and exchanges; information sharing; capability development and cooperation; infrastructure development; defence industry, science and technology; and women, peace and security. The links between military forces were strengthened through other national forces deploying to Australia to help with Operation BUSHFIRE ASSIST 2019–2020 in January 2020.

Some Defence Cooperation Program activities were disrupted by COVID-19. Defence Cooperation Program funding was reallocated to assist Pacific and South-East Asian responses to the pandemic, including provision of air and sea lift to provide medical and food supplies to vulnerable populations, and support for defence organisations in South-East Asia to contribute to their national COVID-19 responses.

In the South-West Pacific, Defence focused on advancing the Government’s Pacific Step-Up initiative, including through ongoing investments in infrastructure development in Papua New Guinea, Fiji, Vanuatu, Solomon Islands and Timor-Leste, both in response to bilateral

security requests and to support the rollout of the $2 billion Pacific Maritime Security Program. Defence delivered new Guardian class Patrol Boats to Samoa, Solomon Islands and Fiji. These vessels are being used, alongside contracted aerial surveillance, to enhance regional maritime security.

In South-East Asia, Defence advanced key relationships in significant ways. Australia set out its vision for engagement with ASEAN at the inaugural ASEAN–Australia Informal Defence Ministers’ Meeting in February 2020. Australia and Indonesia expanded information sharing and exercises and agreed to a UN peacekeeping co-deployment.

Australia and Singapore signed a treaty on military training, which underpins the largest training arrangement Australia has with any country beyond the United States. Defence enhanced cooperation with the Philippines to support vital counter-terrorism efforts; boosted regional peacekeeping capabilities, including through training and airlift support to Vietnam; and increased personnel exchanges with Malaysia.

In North-East Asia, Defence increased bilateral cooperation with Japan, including via major precedent-setting activities such as the first-ever Australia–Japan fighter jet exercise, Bushido Guardian, held in Japan in September 2019. Such activities have added another pillar to enhance interoperability and ultimately improve our capability to respond to regional contingencies. Defence also maintained its contribution to multilateral enforcement of UN Security Council sanctions with respect to North Korea’s illegal nuclear weapons programs; and deepened bilateral cooperation with South Korea, including contributing to the inter-Korean peace process through support activities in the Demilitarized Zone.

In the Indian Ocean region, Defence made significant strides in expanding bilateral ties with India via agreements to expand cooperation in the areas of information sharing, defence industry, access, and defence science and technology.

Defence deepened regional alliance cooperation with the United States. In major activities like the Marine Rotational Force—Darwin, we were able to modify the deployment to mitigate COVID-19 risks and send an important signal about the alliance’s firm commitment to regiona security. Such activities have enhanced our forces’ abilities to confront shared challenges alongside our allies and partners. We conducted the first-ever defence strategy and policy talks as part of a restructured and regularised senior policy dialogue to better inform the annual ministerial-level US–Australia consultations (AUSMIN).

Defence capability is enabled through industry and innovation

2019–20 Defence Corporate Plan

Activity 2.3

Portfolio Budget Statements 2019–20

Program 2.1

Achieved

Defence has increased its engagement with industry during the COVID-19 pandemic. Since March 2020, ministers and senior Defence representatives have held regular teleconferences with state and territory defence industry advocates, prominent industry leaders and industry association groups. These engagements have provided updates on Government support to industry and enabled states and territories to raise issues or concerns on behalf of companies in their jurisdictions.

Defence has fast-tracked invoice payments throughout the pandemic to support industry, sustain jobs and help develop sovereign capability. Additionally, 28 grants with a total value of over $11.5 million (excluding GST) were awarded to Australian small businesses under the Sovereign Industrial Capability Grants program in 2019–20. Implementation plans for the 10 Sovereign Industrial Capability Priorities are progressing, with two plans publicly released and the remaining plans to be released as scheduled by the end of 2020. More than 300 industry representatives were consulted in the development of the implementation plans.

Defence continued to work closely with the Centre for Defence Industry Capability (CDIC) to build industrial capability in the defence sector. In 2019–20 the CDIC awarded 119 Capability Improvement Grants totalling over $3.775 million (excluding GST), an increase of 55 grants over the previous year; and 21 Defence Global Competitiveness Grants totalling over $2.2 million (excluding GST), an increase of 12 grants over the previous year.

In support of the Defence Export Strategy, in 2019–20 the Australian Defence Export Office led Australian defence industry delegations to seven international tradeshows as part of the Team Defence Australia program, and a trade mission to Japan.

In 2019–20 the Defence Innovation Hub continued to invest in developing Australian technologies, awarding 51 innovation contracts totalling more than $95.7 million (excluding GST). The Hub’s portfolio of innovation projects is valued at more than $222 million (excluding GST). Eighty-four per cent of its contracts are with Australian micro, small and medium-sized businesses.

Intelligence services and capabilities are delivered according to Government priorities

2019–20 Defence Corporate Plan

Activity 2.4

Portfolio Budget Statements 2019–20

Program 2.1

Achieved

Over the 2019–20 period, Defence met intelligence priorities and legislated requirements through delivering accurate and timely support to the organisation, the National Intelligence Community and the Government. Defence’s geospatial-intelligence production effort included foundation geospatial and mapping support, hydrographic services, and capability development activities that directly supported the planning and conduct of ADF operations and domestic and regional security priorities, including Defence assistance to bushfire fighting.

While managing the impact of some staff undertaking remote work during the COVID-19 pandemic, Defence maintained mission-critical priorities and increased capability through online training.

In 2019–20 Defence provided timely, high-quality strategic-level intelligence assessments in support of ADF operations, the organisation and whole-of-government policy, and capability development.

From March to June 2020 the organisation produced 19 per cent more intelligence products than in the same period in 2019. This increase is attributed to additional COVID-19 related intelligence tasking combined with reduced international travel and engagement, allowing fewer disruptions to analyst availability.