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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Part 2: Expense Measures (continued)

Foreign Affairs and Trade

Australia Network — Termination of the ABC Contract

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade ‑10.6 ‑21.6 ‑22.1 ‑22.5

The Government will achieve savings of $196.8 million over nine years by terminating the Australia Network contract with the Australian Broadcasting Corporation.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Australia's Diplomatic Engagement in Afghanistan — continuation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade 49.4
Related capital ($m)
Department of Foreign Affairs and Trade 2.0

The Government will provide $51.5 million (including $2.0 million in capital funding) to continue Australia's diplomatic engagement in Afghanistan. The funding will provide for embassy operating costs and security.

Baghdad Embassy — relocation

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade 27.4
Related capital ($m)
Department of Foreign Affairs and Trade 8.2

The Government will provide $35.6 million (including $8.2 million in capital funding) in 2014‑15 to continue operations of the Australian embassy in Baghdad. The embassy will be co‑located with the United Kingdom embassy to Iraq from 1 January 2015.

International Engagement to Prevent and Disrupt Maritime People Smuggling

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade 3.2 3.2

The Government will provide $6.4 million over two years to enable the Department of Foreign Affairs and Trade to continue initiatives to prevent people smuggling. This measure provides for a dedicated position in Sri Lanka, the continuation of the Ambassador for People Smuggling Issues and annual Bali Process meetings at Ministerial and senior official levels.

International Tourism — Australia Week in China

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Australian Trade Commission 0.2 1.8

The Government will provide $2.0 million over two years to hold an Australia Week in China (AWIC) promotional event in 2016. The AWIC will help to build Australia's reputation in China as a world leading tourism destination and an important trade and investment partner.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Tourism.

International Tourism — China Approved Destination Status Scheme

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Australian Trade Commission

The Government will provide $10.1 million over four years to continue the Approved Destination Status (ADS) tourism arrangement between China and Australia. The ADS supports Chinese tourism in Australia by providing necessary government‑to‑government assurances for organised tour arrangements; performance and quality control mechanisms; and supports Tourism Australia to actively promote Australia as a tourism destination in China.

The cost of this measure will be offset by redirecting funding from the Tourism Industry Regional Development Fund.

International Tourism — Demand Driver Infrastructure

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury 11.0 10.7 10.7 10.7
Australian Trade Commission ‑11.0 ‑10.7 ‑10.7 ‑10.7
Total — Expense

The Government will provide $43.1 million over four years to implement a new Tourism Demand Driver Infrastructure grants programme. The new programme will provide funding to the States and Territories for infrastructure projects that encourage international and domestic tourism.

The cost of this measure will be offset by redirecting funding from the Tourism Industry Regional Development Fund and the T‑QUAL Accreditation scheme.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Tourism.

Official Development Assistance — Global Green Growth Institute

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade

The Government will provide a one‑off payment of $5 million in 2014‑15 for specific projects of the Global Green Growth Institute (GGGI) that will be identified by Australia. The Government will also ratify the agreement on the establishment of the GGGI Fund and formalise Australia's membership.

The cost of this measure will be met from within the existing resources of the Department of Foreign Affairs and Trade.

This measure forms part of the Government's Official Development Assistance Programme.

Official Development Assistance — reprioritised funding

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of the Treasury ‑0.2 ‑0.2 ‑0.3 ‑0.3 ‑0.3
Attorney‑General's Department ‑0.4 ‑0.4 ‑0.4 ‑0.4 ‑0.1
Australian Federal Police ‑10.0 ‑1.6 ‑0.6 ‑0.6 ‑0.6
Department of Foreign Affairs and Trade ‑601.0 ‑599.1 ‑1,221.2 ‑1,687.9 ‑3,519.6
Total — Expense ‑611.6 ‑601.3 ‑1,222.5 ‑1,689.2 ‑3,520.6

The Government will achieve savings of $7.6 billion over five years by maintaining official development assistance (ODA) at its nominal 2013‑14 level of $5.0 billion in each of 2014‑15 and 2015‑16. From 2016‑17 ODA will grow in line with the Consumer Price Index. The savings include $2.0 billion in 2017‑18 by removing the provision previously set aside for ODA spending.

As part of these savings, the Government has decided to reverse previous decisions to join the African Development Bank Group and the International Fund for Agricultural Development, and has introduced a cap on departmental costs for the Department of Foreign Affairs and Trade (DFAT) to administer ODA equivalent to 5 per cent of DFAT's total ODA budget.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Further information can be found in the press release of 18 January 2014 issued by the Minister for Foreign Affairs.

Official Development Assistance — seventeenth replenishment of the World Bank's International Development Association

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade

The Government will provide $748.8 million over nine years from 2013‑14 as part of the seventeenth replenishment of the World Bank's International Development Association (IDA). IDA is the concessional lending arm of the World Bank which aims to reduce poverty in the world's least developed countries by providing interest free credits and grants for programmes that boost economic growth, reduce inequalities and improve people's living conditions.

As part of this replenishment, the Government will provide $582.8 million to maintain Australia's share of international contributions to IDA, of which $483.7 million will comprise a loan component. The provision of loans from the Budget and their repayment affect only the composition of Government assets and as such this loan component has no impact on the fiscal balance.

Also as part of this replenishment, the Government will provide $166.0 million in 2013‑14 to finance Australia's share of contributions to the Heavily Indebted Poor Countries Initiative, the Multilateral Debt Relief Initiative, arrears clearance provided by the World Bank and compensation to the IDA for grants forgone.

Funding for this measure was included as a 'decision taken but not yet announced' in the 201314 Budget.

This measure forms part of the Government's Official Development Assistance Programme.

Smaller Government — Department of Foreign Affairs and Trade — realising efficiencies

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade ‑109.7 ‑101.7 ‑94.9 ‑90.8

The Government will achieve savings of $397.2 million over four years by reducing the Department of Foreign Affairs and Trade's (DFAT's) departmental expenditure to realise the efficiencies gained through merging the former Australian Agency for International Development into DFAT and the identification of more efficient models of Official Development Assistance administration including rationalisation of corporate functions.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Transferring T‑QUAL Accreditation to industry

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Department of Foreign Affairs and Trade 0.6

The Government will provide $0.6 million to transfer the national tourism accreditation scheme, also known as T‑QUAL Accreditation, to industry. This funding will assist an industry provider assume responsibility for T‑QUAL Accreditation.

It is expected that the scheme will be funded entirely by industry contributions once the Government's contribution has been exhausted, consistent with both the Government's and industry's long term expectations for the scheme.

This measure delivers on the Government's election commitment.

Further information can be found in the Coalition's Policy for Tourism.