2023-2024 Federal Budget - National Security

National Security

Nuclear-Powered Submarine Program - initial implementation

The Government will provide $4.5 billion over 10 years from 2023-24 (and $482.7 million per year ongoing) to support the initial steps in Australia's acquisition of a conventionally-armed, nuclear-powered submarine capability. This forms part of the whole-of-program costs over the decade and funding includes:

• $4.2 billion over 10 years from 2023-24 (and $482.7 million per year ongoing) to support the establishment and ongoing operation of a new Australian Submarine Agency (the Agency), within the Defence portfolio to manage Australia's nuclear-powered submarine program. This includes $15.3 million over 10 years from 2023-24 (and $1.5 million per year ongoing) to establish an Independent Monitor and Adviser to provide independent assurance for the nuclear-powered submarine program through periodic health checks and proactive advice. The Agency will be funded through the Department of Defence until the Agency has been formally established
• $127.3 million over 4 years from 2023-24 for 4,000 additional commencing Commonwealth-supported places at universities and other higher education providers for courses that support the skills requirements of the nuclear-powered submarine program, including STEM and management disciplines. Of these places, at least 800 will be allocated to South Australian universities with the remainder to be allocated through a competitive process
• $87.2 million over two years from 2023-24 to support initial regulatory activities and the development of regulatory standards and frameworks, and non-proliferation and safeguards arrangements for the nuclear-powered submarine program including:
  • $25.2 million over two years from 2023-24 for the Australian Radiation Protection and Nuclear Safety Agency to conduct nuclear licencing activities and provide advice and services
  • $21.9 million over two years from 2023-24 for the Australian Safeguards and Non-Proliferation Office to support the establishment of non-proliferation and safeguard arrangements with the International Atomic Energy Agency
  • $16.3 million over two years for the Australian Nuclear Science and Technology Organisation to support radiological baselining and monitoring, and provide advice on the safe implementation of nuclear technology
  • $7.9 million in 2023-24 for the Agency to support the establishment of the Australian Nuclear-Powered Submarine Safety Regulator and develop associated nuclear regulatory standards and frameworks
  • $7.6 million over two years from 2023-24 for the Department of Climate Change, Energy, the Environment and Water to conduct the environmental regulation and assessments required under relevant environmental legislation
  • $5.2 million over two years from 2023-24 for the Australian Radioactive Waste Agency within the Department of Industry, Science and Resources to support the development of radioactive waste management, storage and disposal arrangements with the Department of Defence and the Agency
  • $3.1 million over two years from 2023-24 for the Department of Health and Aged Care to provide radiation health and safety advice, and support the review national of regulatory arrangements
• $52.7 million over two years from 2023-24 for the Department of Foreign Affairs and Trade to provide international policy advice and diplomatic support for the nuclear-powered submarine program
• $11.1 million over two years from 2023-24 for the Department of Finance to provide commercial, financial and investment program management advice in support of the delivery of the nuclear-powered submarine program
• $3.9 million over two years from 2023-24 for the Department of Employment and Workplace Relations to establish a dedicated task force to support the development and delivery of skills and training initiatives for the nuclear-powered submarine program
• $2.4 million over two years from 2023-24 for the Attorney-General's Department to provide legal and policy advice for the nuclear-powered submarine program, including for the development of relevant treaties and international agreements
• $1.1 million over two years from 2023-24 for the Department of Education to support the development and delivery of education, skills and training initiatives for the nuclear-powered submarine program.

The Government will also provide Australian Naval Infrastructure Pty Ltd with an equity injection over 5 years from 2023-24 to commence early construction and design works for a submarine construction yard and to design the Skills and Training Academy, in South Australia. The financial implications of this component of the measure are not for publication (nfp) due to commercial sensitivities. This measure forms part of the Government's nuclear-powered submarine program announced on 14 March 2023. This measure will support the implementation of the Government's response to the Defence Strategic Review (2023). This measure will be offset through a broader reprioritisation within the Defence Integrated Investment Program.

Budget Speech p 9
Budget Paper No 2 p 94
Budget Overview p 37
Media Release

Advanced Strategic Capabilities Accelerator

The Government will provide $3.4 billion over 10 years from 2023-24 to establish the Advanced Strategic Capabilities Accelerator within the Department of Defence to lift capacity to translate disruptive new technologies into Defence capability rapidly, in close partnership with Australian industry. The cost of this measure will be met from within the existing resourcing of the Department of Defence. This measure delivers on the Government's election commitment Advanced Strategic Research Agency as published in the Plan for a Better Future, and implements a key priority in line with the recommendations of the Defence Strategic Review.

Budget Paper No 2 p 91
Budget Overview p 37
Media Release

Enhancing Pacific Engagement

The Government will provide $1.9 billion over 5 years from 2022-23 to expand Australia's engagement with Pacific Island countries. Funding includes:

• $370.8 million over 4 years to expand and improve the Pacific Australia Labour Mobility scheme, to support sustainable scheme growth and improve support for workers in line with Australian and Pacific aspirations
• $1.4 billion over 4 years to build Pacific peace and security, to support Pacific family priorities and the relevant commitments under the 2050 Strategy for the Blue Pacific Continent including:
  • Defence's expansion of Australia's engagement with Pacific Island countries including through the provision of security infrastructure and maritime security capability including in support of the Government's response to the Defence Strategic Review, with Defence expenditure to be met from within existing resources
  • Australian Federal Police and the Attorney-General's Department's strengthening of Pacific law enforcement and criminal justice cooperation with partners in the Pacific
• $114.3 million over 4 years to support a stronger, more united Pacific region, including supporting regional architecture, taking a regional approach to humanitarian relief and disaster preparedness, and improving diplomatic capability
• $89.5 million over 4 years to deepen Pacific connections by strengthening cultural and people-to-people ties with the region and promoting shared values.

Expansion and improvement of the Pacific Australia Labour Mobility scheme is estimated to increase receipts by $300.0 million over 4 years from 2023-24. The cost of this measure will be partially met from within the existing resourcing of the Department of Employment and Workplace Relations and the Department of Defence. This measure will also be partially offset by redirecting funding from the 2022-23 March Budget measure titled Support to the Pacific and Timor-Leste - additional support. This measure builds on the 2022-23 October Budget measures titled Pacific Security and Engagement Initiatives and Enhancing the Pacific Australia Labour Mobility.

Budget Paper No 2 p 119
Budget Overview p 37
Media Release

Australian Secret Intelligence Service - additional funding

The Government will provide $468.8 million over 4 years from 2023-24 (and $185.6 million per year ongoing) to modernise the Australian Secret Intelligence Service. Funding for this measure has already been provided for by the Government.

Budget Paper No 2 p 118

Recognising the Australian Defence Force's Unique Service to the Nation

The Government will provide $397.4 million over two years from 2023-24 to support the retention of Defence personnel and the achievement of Defence's workforce growth targets. Funding includes:

• $395.4 million over two years from 2023-24 to pilot a $50,000 continuation bonus that would be offered to Australian Defence Force (ADF) personnel nearing the completion of relevant initial periods of service
• $2.0 million in 2023-24 to conduct a defence housing feasibility review aimed at reducing the housing burden on ADF personnel, encouraging home ownership and ensuring Defence housing meets future needs.

The cost of this measure will be met from within the existing resourcing of the Department of Defence.

Budget Speech p 9
Budget Paper No 2 p 96
Budget Overview p 37
Media Release

Maintaining Support for an Effective Foreign Service

The Government will provide $376.9 million over 4 years from 2023-24 (and $77.3 million per year ongoing) to maintain and improve delivery of core activities of the Department of Foreign Affairs and Trade. Funding includes:

• $250.2 million over 4 years from 2023-24 (and $69.8 million per year ongoing) to address a funding shortfall in overseas property expenses
• $90.2 million over 3 years from 2023-24 for improvements to assure the reliability of DFAT's International Communications Network at overseas posts
• $29.8 million over 4 years from 2023-24 (and $6.6 million per year ongoing) to continue the administration of the Foreign Arrangements Scheme to ensure that arrangements between state or territory governments (and their entities) and foreign entities are consistent with Australia's foreign policy
• $3.1 million over 4 years from 2023-24 ($5.7 million over 7 years from 2023-24) for the Department of Foreign Affairs and Trade's participation in the design and build of, and transition to, the new National Security Office Precinct
• $3.6 million over 4 years from 2023-24 (and $0.9 million per year ongoing) to sustain nuclear monitoring activities undertaken by Geoscience Australia.

Budget Paper No 2 p 121
Media Release

Additional Assistance to Ukraine

The Government will provide $189.6 million over two years from 2022-23 to deliver additional assistance to Ukraine following the invasion by Russia. This includes the provision of Bushmaster Protected Mobility Vehicles and unmanned aerial vehicles, infantry training to the Ukrainian Armed Forces and 155-millimetre artillery ammunition to Ukraine as part of a joint initiative between France and Australia. The cost of this measure will be met from within the existing resourcing of the Department of Defence and funding already provided for by the Government.

This measure extends the 2022-23 October Budget measure titled Assistance to Ukraine.

Budget Paper No 2 p 91

Enduring Funding Mechanism for AusCheck

The Government will provide $164.8 million over 4 years from 2023-24 to establish enduring funding arrangements for AusCheck, providing funding stability for background checking and card issuing services, recovered through charging regulated sectors. AusCheck's services will also be extended to the migration service industry through a strengthened 'fit and proper person' assessment for Registered Migration Agents, subject to the passage of legislation. The Government will also finalise arrangements for the transition to a single Government issuing body for aviation and maritime security identification cards from 2025. Under this measure, the Government will introduce charges for background checks and card issuance for major events and biological hazard checks. Combined with updated existing charges, this measure is estimated to increase receipts by $164.9 million over 4 years from 2023-24.

Budget Paper No 2 p 158

Strengthening Australia's Arrangements for High-Risk Terrorist Offenders

The Government will provide $130.1 million over two years from 2023-24 to continue to protect the Australian community from the threats posed by convicted high-risk terrorist offenders, including through the assessment of ongoing risks and seeking and implementing post-sentence supervision orders after the completion of custodial sentences. Ongoing funding from 2025-26 for this measure will be held in the Contingency Reserve until a review of arrangements with jurisdictions is completed.

Budget Paper No 2 p 63
Media Release

Office of the Special Investigator Operations and Downstream Impacts Funding - extension

The Government will provide $129.4 million over two years from 2023-24 to continue the work of the Office of the Special Investigator (OSI) and support the prosecution of alleged war crimes by Australian Defence Force troops in Afghanistan. Funding includes:

• $115.1 million over two years from 2023-24 to enable the OSI to continue investigations
• $8.8 million over two years from 2023-24 for the Attorney-General's Department to provide support to the OSI, including legal advice and requests for evidence from foreign jurisdictions
• $5.5 million over two years from 2023-24 for the Office of the Director of Public Prosecutions to consider and prosecute briefs of evidence received from the OSI.

This measure will be offset by redirecting funding from the Department of Defence.

Budget Paper No 2 p 62

Visa and Migration System

The Government will provide $125.8 million over 4 years from 2023-24 to continue implementing outcomes from the Jobs and Skills Summit to strengthen the migration system in order to ease critical skills shortages across the economy and build a more productive workforce. Funding includes:

• $75.8 million over two years from 2023-24 to extend the current surge in visa processing resources to ensure timeliness of visa processing and improve existing visa processing systems
• $50.0 million over 4 years from 2023-24 (and $15.3 million per year ongoing) for additional enforcement and compliance activities to maintain the integrity of the migration system. Funding from 2025-26 will be held in the Contingency Reserve, pending an evaluation of the effectiveness of the activities.

This component builds on the 2022-23 October Budget measure titled Outcomes of the Jobs and Skills Summit. In addition, the Government will return funding of $163.2 million over two years from 2022-23 to the Department of Home Affairs to continue its visa processing capabilities, recognising the cancellation of the Global Digital Platform, associated with the 2016-17 Budget savings measure titled Reforming the Visa and Migration Framework, by the former Government. The Government will also provide a permanent visa pathway for a Temporary Protection (subclass 785) visa (TPV) and Safe Haven Enterprise (subclass 790) visa (SHEV) holders who held or applied for a TPV or SHEV before 14 February 2023. The pathway to permanent residency is estimated to increase payments for government services and benefits by $732.5 million over 5 years from 2022-23. This measure is estimated to have a negligible impact on receipts over the 5 years from 2022-23.

Budget Paper No 2 p 161
Media Release

Cyber Security - additional funding

The Government will provide $101.6 million over 5 years from 2022-23 (and $11.8 million per year ongoing) to support and uplift cyber security in Australia. Funding includes:

• $46.5 million over 4 years from 2023-24 (and $11.8 million per year ongoing) to establish the Coordinator for Cyber Security to ensure that the Commonwealth's cyber security efforts are strategic, coordinated, timely and effective. The Coordinator will be supported by the National Office of Cyber Security and dedicated resources from within the Department of Home Affairs and other Commonwealth entities, with capacity to surge further in the event of a cyber incident
• $23.4 million over 3 years from 2023-24 to the Department of the Treasury for a small business cyber wardens program delivered by the Council of Small Business Organisations Australia, to support small businesses to build in-house capability to protect against cyber threats
• $19.5 million in 2023-24 to continue work to improve the security of critical infrastructure assets and assist owners and operators to respond to significant cyber-attacks
• $12.2 million in 2023-24 to sustain the cyber resilience of Commonwealth entities currently serviced by the Cyber Hubs pilot program and to continue assessment and certification of service providers used by the Commonwealth entities to host data.

The cost of this measure will be partially met from within the existing resources of the Department of Home Affairs and by redirecting funding provided to the Australian Taxation Office for Cyber Hub pilot activities.

Budget Speech p 9
Budget Paper No 2 p 156
Budget Overview p 39