An additional $600 million will be provided to help the Australian Defense Force attract and retain personnel, following the release of a major report finding it needs to almost double its annual workforce over the next decade.
The Defense Personnel Plan 2024, to be published on Tuesday, will set out targets for workforce growth to enable the ADF to reach its target of 69,000 personnel by the early 2030s, and a combined ADF and public service target of around 100,000 by 2040.
Junior personnel will also soon have access to a $40,000 bonus to boost recruitment and retention in the Australian Army.
“The highly competitive national labor market across all sectors and record high unemployment will continue to put pressure on Defense’s ability to attract and retain the right people,” the report said.
“To stabilize, restore and grow ADF’s permanent workforce, intake must increase from approximately 5,500 per year to 9,000 per year over the next ten years.
“At the same time, the average duration of permanent ADF service should increase from approximately seven years to approximately 12 years.”
The Albanian government said the $600 million funding would help achieve this.
“Our ADF personnel are our greatest capability and therefore it is critical that defense personnel have the people they need to help protect Australia’s strategic interests,” Defense Minister Richard Marles said.
The Albanian government will announce $600 million in new funding to help the ADF increase its recruitment and retention of personnel.
“The 2024 workforce plan will ensure Defense can recruit, retain and grow the highly specialized and skilled workforce needed to meet capability needs.
“The Albanian government is committed to making the necessary investments to support and grow our current defense workforce for the future.
Tuesday’s new $600 million funding includes an expansion of the two-year pilot with a follow-on bonus of $50,000 for junior Permanent Forces personnel, plus additional investments to meet the target for operational reservists.
Personnel are entitled to the bonus if they remain with the force for a further three years after completing their initial four-year service obligation.
While the bonus incentive will be reduced to $40,000 to accommodate the expansion from the 2025-26 financial year, the scheme will be extended to eligible permanent members who are at the end of their initial four-year service obligation.
A second cohort of members approaching seven to nine years of service will also access the initiative to encourage career progression into the middle ranks of the ADF and continued service.
The defense workplace plan says the follow-on bonus has recorded a take-up rate of almost 80 percent and boosted the continued service of more than 3,100 junior ADF personnel.
“These retention bonuses are short-term initiatives to ease pressure on the ADF’s lower and mid-level management and address the void in the force,” the report said.
Defense Secretary Richard Marles will announce expanded access to a $40,000 continuation bonus to boost workforce retention
Defense Minister Matt Keogh said the initiatives would help “deliver lasting institutional change to improve the defense culture and the health, safety and wellbeing of our people and ADF families”.
“The Defense Workforce Plan sets out a transformation and sets out how we will deliver the right number of people with the right skills, while continuing to shape a positive and effective working environment for our people,” he said.
According to figures in the 2024 budget documents, the ADF’s total workforce was estimated at 76,290 in 2023-24, while the estimated permanent ADF workforce for 2024-25 was expected to be 58,600, almost 5,000 personnel below the budgeted figure.
Difficulties in recruiting were related to the high separation rate and lower than expected achievement of recruitment targets.
The number of ADF reservists will also need to be increased by 1,000 by 2030, to improve the ‘readiness of the Navy, Air Force and Joint Capabilities Group’.
On Tuesday, Mr. Marles will also announce an additional $14 million to boost Ukraine’s maritime and coastal defense capabilities through 14 rigid-hulled boats.
Since Russia illegally invaded Ukraine on February 22, 2022, Australia has provided more than $1.3 billion in military support to Ukraine, plus another $1.5 billion in aid to its government.
Mr Marles reiterated Australia’s “proud” continued support for the eastern European country.
“Australia remains committed to supporting Ukraine in its fight against Russian aggression. This is in Australia’s best interests and it is the right thing to do,” he said.
“Ukraine has demonstrated its ability to thwart Russia’s continued attacks from the Black Sea.