ISSN: 1836-1838
Date presented to Minister: 25 September 2023
To:
Hon Susan Close MP
Deputy Premier
Minister for Defence and Space Industries
This annual report will be presented to Parliament to meet the statutory reporting requirements of the Public Sector Act 2009 and the Public Finance and Audit Act 1987 and the requirements of Premier and Cabinet Circular PC013 Annual Reporting.
This report is verified to be accurate for the purposes of annual reporting to the Parliament of South Australia.
Submitted on behalf of Defence SA by:
Richard Price Chief Executive
Date 25 September 2023
From the Chief Executive
The defence and space industries continue to be a key driver of South Australia’s economic development, with these industries becoming increasingly crucial in the current geopolitical environment.
The state’s strengths in research and innovation will ensure we are able to develop new technologies that will advance our economic complexity while serving the needs our nation’s Defence Forces.
Several key developments occurred at a national level in 2022-23, including the release of the Defence Strategic Review and the optimal pathway for Australia’s new fleet of conventionally armed, nuclear-powered submarines. This has presented several opportunities for the state’s defence and space industries and throughout the year we have been working to ensure we are primed to take maximum advantage.
Under the optimal pathway, the naval shipyard at Osborne was confirmed as the build location for Australia’s fleet of nuclear-powered submarines, with the build of the shipyard creating up to 4,000 jobs from 2023. Over the coming decade, a further 4,000 to 5,500 direct shipyard jobs will be created.
While the nuclear-powered submarine build will see the first SSN-AUKUS delivered in the early 2040s, work is occurring now to ensure industry and the workforce are suitably skilled and ready to take on such a project, the scale and complexity of which we have never seen in Australia before.
The Defence Strategic Review reaffirmed a commitment to continuous naval with significant work also set for South Australia in the life-of-type extension of the Collins class submarines and combat system upgrades for the Air Warfare Destroyers.
The South Australian Government is working to support local industry to build capability, experience and expertise. In 2022-23 we saw record numbers of companies participating on the Defence State stand at key events including Land Forces and the Avalon Airshow, enabling industry to connect with international companies for export and supply chain opportunities.
The Osborne Naval Shipyard is one of the most digitally advanced of its kind in the world. The digital shipyard revolution for the Hunter class frigate program is being developed in close partnership with state and federal governments, industry and academia. To assist in the transformation, the Factory of the Future at Tonsley Innovation District is being developed as the nation’s first industrial scale, high value research and accelerator facility dedicated to modern naval shipbuilding techniques.
In terms of workforce, the South Australian Government is working closely with the Australian Government, industry and academia to develop the highly-skilled workforce required for future defence projects. A key undertaking, in conjunction with the Australian Government, is the South Australian Defence Industry Workforce and Skills Taskforce, which is due to release its report later in 2023.
The Defence Strategic Review highlighted the need to speed up the translation of innovative defence technology into real world capability for the Australian Defence Force. Launched in June 2023, the Defence Innovation Partnership’s Activator Fund has been created to facilitate this swift transition and provide solutions to the high priority innovation challenges identified by Defence. The Activator Fund is running alongside the Collaborative Research fund which funded four new projects and leveraged $1.9 million in co-contributions from universities, industry and the Department of Defence this financial year.
The South Australian Government’s commitment to the space industry is also unwavering, with the state at forefront of new technology development. This year saw some exciting new developments and growth across the industry, particularly in small satellite manufacturing, earth observation and research and innovation. Work has commenced on South Australia’s $20 million commitment to establish a new space manufacturing facility which will provide industry with access to world-class equipment capable of small satellite and component manufacturing, assembly, integration and test activities.
We are also continuing to inspire the next generation of space industry workers and are committed to outreach and educational activities through support of the Andy Thomas Space Foundation and initiatives such as the national Kids in Space program, with the 2023 program involving 70 students from eight South Australian schools.
South Australia’s defence and space industries have been presented with a number of challenges and opportunities throughout the 2022-23 year. Defence SA, the South Australian Space Industry Centre and Defence Innovation Partnership continue to support the development of these vital industries for South Australia; maximising opportunities to support the Australian Defence Force, the state’s economic development and the sovereign capability of our nation.
Richard Price
Chief Executive
Defence SA
Contents
Our organisational structure. 9
Legislation administered by the agency. 10
Other related agencies (within the Minister’s area/s of responsibility) 10
Agency specific objectives and performance. 12
Corporate performance summary. 26
Employment opportunity programs. 26
Agency performance management and development systems. 27
Work health, safety and return to work programs. 27
Executive employment in the agency. 29
Financial performance at a glance. 29
Other financial information. 32
Risk and audit at a glance. 32
Fraud detected in the agency. 32
Strategies implemented to control and prevent fraud. 32
Public interest disclosure. 33
Reporting required under any other act or regulation. 33
Reporting required under the Carers’ Recognition Act 2005. 33
Number of public complaints reported. 33
Appendix: Audited financial statements 2022-23. 36
Overview: about the agency
Our strategic focus
Purpose:
Defence SA is South Australia’s lead government agency for all defence related matters and is a single point of contact for all defence stakeholders, streamlining their interaction across the South Australian Government. The agency captures valuable investment opportunities in the shipbuilding, defence science and research, information warfare and space domains.
The Defence SA Advisory Board provides high-level strategic advice to promote the growth of the defence industry in South Australia and plays a key role in guiding the state’s defence strategy.
Within Defence SA sits the Defence Innovation Partnership, South Australian Space Industry Centre and Veterans SA.
(note: Veterans SA annual activities will be presented in a separate Annual Report to be submitted to the Minister for Veteran’s Affairs for tabling in the Parliament of South Australia and will therefore not be detailed in this report)
Defence Innovation Partnership – fosters collaboration and engagement between government, universities/research organisations and industry. The Defence Innovation Partnership helps deliver innovative solutions to Defence by creating connections between researchers, industry, and Defence; building and supporting defence-relevant collaborations through the Collaborative Research Fund; attracting research and development funding to South Australia; and supporting the translation of defence and national security research and development.
South Australian Space Industry Centre (SASIC) – provides a whole-of-state-government focal point for local industry and international companies and organisations to drive space industry innovation, research, and entrepreneurial development.
Vision
| Defence SA | By 2030 South Australia will be recognised as an international leader in the defence and space industries by building on its highly skilled workforce, world-leading technology and infrastructure and culture of innovation driven by focused research and development. |
| Defence Innovation Partnership | A trusted, forward-thinking, and sustainable defence-relevant research, development, and innovation ecosystem, supporting Australia’s defence and national security needs. |
| SASIC | A thriving and enduring South Australian space ecosystem, supporting Australia’s national space strategy, building on the opportunities of NewSpace. |
Mission/Values
| Defence SA | To establish and maintain a competitive business environment in the defence sector. |
| Defence Innovation Partnership | Catalyse a trusted and recognised R&D ecosystem that delivers valued outcomes to its stakeholders. |
| SASIC | To grow a thriving and enduring South Australian space sector, in partnership with industry. |
Our functions, objectives and deliverables
| Defence SA | · Implementation of the Defence State Strategy 2030.
· Maximising business opportunities by influencing policy, connecting industry to global supply chains and attracting investment. · Stimulating business capability by aligning local research and development, infrastructure and regulation with industry needs. · Building business capacity by working to attract and retain talent in the state. |
| Defence Innovation Partnership | Stimulating business capability by aligning local research and development, infrastructure, and regulation with industry needs, in support of the Defence State Strategy 2030. |
| SASIC | Implementation of the Space Strategy, by cultivating South Australia as a centre of gravity for space activities:
o Building a capable workforce o Creating an innovating ecosystem o Establishing supportive infrastructure o Being globally competitive o Attracting investment |
Changes to the agency
During 2022-23 there were no changes to the agency’s structure and objectives as a result of internal reviews or machinery of government changes.
Our Minister
The Hon Susan Close MP is the Deputy Premier and Minister for Defence and Space Industries. She is also Minister for Industry, Innovation and Science and Minister for Climate, Environment and Water.
The Minister oversees:
- Defence Industry Development
- Defence Innovation Partnership
- South Australian Space Industry Centre
Our Executive team
As at 30 June 2023, Defence SA’s Executive team comprised:
- Richard Price, Chief Executive, Defence SA, South Australian Space Industry Centre and Veterans SA
Richard is responsible for providing executive and strategic leadership to Defence SA, the South Australian Space Industry Centre, the Defence Innovation Partnership and Veterans SA. The Chief Executive is responsible for the attraction, development and growth of sustainable industry business initiatives to establish a long-term viable Defence presence and promote defence and space industries in South Australia.
- Reg Carruthers, Executive Director, Defence and Space
Reg is responsible for initiatives to support and grow the defence and space industries in South Australia.
- Sumen Rai, Director Defence Innovation Partnership
Sumen is responsible for leading the Defence Innovation Partnership team, which builds and supports collaborative defence-relevant research and development in South Australia.
- Jessica Hernandez, Director Marketing and Communications
Jessica is responsible for the oversight and management of all marketing and communications activities for Defence SA, including media, events and tradeshows.
- Ilona Horan, Director Corporate Services and Projects, Infrastructure and Investment
Ilona oversees the agency’s entire corporate services functions, including the management of human resources, WHS, procurement and contracting, while also supporting defence and space organisations to invest in South Australia.
- Peter Murdock, Director, Finance and Systems
Peter is responsible for overseeing the agency’s financial resources, including budget planning, finance management and legislative reporting and the agency’s cyber security program.
Legislation administered by the agency
Defence SA does not administer any legislation.
Other related agencies (within the Minister’s area/s of responsibility)
Department for Industry Innovation and Science
The agency’s performance
Performance at a glance
- Completed the South Australian Submarine Taskforce report covering state legislation and regulation, stakeholder engagement and industry strategy in preparation for the AUKUS submarine optimal pathway announcement.
- Facilitated across the South Australian Government and Department of Defence for the establishment of the Royal Australian Airforce (RAAF) 737 Aircraft Deep Maintenance and Modification Facility adjacent to RAAF Base Edinburgh.
- Participated in several international events in support of South Australia’s defence and space industry across the United States, Europe and the United Kingdom, including attendance at the Undersea Defence Technology (UDT) Conference in Germany, Sea Air Space Conference in Maryland and the Space Symposium in Colorado Springs.
- Hosted the largest ever South Australian delegations at the Land Forces International Land Exposition in Brisbane and Avalon International Airshow, with more than 50 local organisations participating on the stand at each event.
- Maintained full occupancy of the Defence and Space Landing Pad at Lot Fourteen.
- Participated in the South Australian Defence Industry Workforce and Skills Taskforce in collaboration with South Australian Government partner agencies, the Department of Defence and Australian Government to develop and implement a skills and workforce plan to support the delivery of current and future defence projects.
- Supported 11 students to undertake their defence industry placements under the South Australian Defence Industry Scholarship Program, with 17 South Australian defence industry companies registered to accept placements.
- Funded four new projects under the Defence Innovation Partnership Collaborative Research Fund, leveraging $1.9 million of co-contributions from universities, industry and the Department of Defence.
- Completed Five Collaborative Research Fund projects in 2022-23 with projects previously funded by the Defence Innovation Partnership having received $6.4 million of follow-on funding to further develop their projects.
- Attracted over 260 attendees from universities, industry and government to Defence Innovation Partnership R&D workshops and events.
- Strengthened relationships with potential collaborators and funding bodies in the United States and the United Kingdom.
- Hosted a Defence Science and Technology Group researcher as part of the NAVIGATE program, an initiative designed to support mid-career researchers in Defence to broaden their experience, industry knowledge and networks.
- Hosted international industry and delegates from New Zealand, United Kingdom, France, Japan and the United States.
- Provided support to the Andy Thomas Space Foundation to increase rural student engagement in STEM (1200 students across 13 rural schools).
- Funded the 2022 and 2023 Venture Catalyst Space Program, with a cohort of 10 and seven companies respectively. Of the international/interstate companies, five have now established a presence in Adelaide.
- Supported the establishment of the $90 million Australian Research Council ARC Centre of Excellence in Plants for Space at the University of Adelaide.
- Supported the development of a workforce talent pipeline across defence, cyber and space through university initiatives, including new educational offerings, hackathons and the Australian Rover Challenge.
- Provided scholarships to four South Australian post-graduate students to complete the 2023 Southern Hemisphere Space Studies Program.
Agency specific objectives and performance
The defence and space industries are a key contributor to South Australia’s economic prosperity.
AUKUS
The release of the Defence Strategic Review in April 2023 confirmed the nuclear-powered submarines (AUKUS agreement Pillar 1) as one of the key priority areas for immediate action and a number of other significant opportunities for the state under Pillar 2, Advanced Capabilities.
Pillar 1 – infrastructure and submarine build
- Nuclear-powered construction (SSN-AUKUS) will centre around the Osborne precinct, including a new $2bn submarine shipyard that will employ up to 4,000 workers to build the infrastructure.
- A further 4,000 to 5,000 direct shipyard jobs are expected to be created to build nuclear-powered submarines in South Australia when the program reaches its peak.
Pillar 2 – Advanced Capabilities
- Cooperative development between the AUKUS partners on eight Advanced Capabilities identified by the AUKUS leadership: undersea capabilities; quantum technologies; AI and autonomy; advanced cyber; hypersonic and counter-hypersonic capabilities; electronic warfare; innovation; information sharing.
- South Australia has significant high quality research depth with potential to capitalise on significant opportunities in some of these areas, particularly the quantum sensing technologies, AI and autonomy, Electronic Warfare and advanced cyber streams.
Defence Strategic Review
In early 2023 the Government released the Defence Strategic Review, the most significant report since the last Defence White Paper, which will require a review of current South Australian strategies across defence and space. The initial report resulted in subsequent reviews which will need to be considered in future strategies including:
- surface fleet review
- defence industry policy review
- formation of Advanced Strategic Capabilities Accelerator (ASCA)
The focus on Northern Australia, infrastructure, guided weapons and autonomy will require a re-prioritisation of current and future project support across defence and space sectors.
Workforce and skills
To ensure we have the workforce in place to undertake major Defence projects, including AUKUS Pillar 1 and 2, a number of key initiatives are in place:
- The South Australian Government is investing $208.8 million to develop five technical colleges in metro and regional South Australia. Work is well underway with enrolments open for the first college – Findon Technical College – opening in 2024 in partnership with BAE Systems – prioritising the defence sector.
- The South Australian Government has partnered with the University of South Australia, defence industry and the Australian Industry Group to fast-track a university degree apprenticeship pilot program for the growing defence sector.
- The South Australian Government has committed $450,000 over three years to support the establishment of the software engineering degree apprenticeship.
- The first intake will commence in 2024, with graduates to obtain a Bachelor of Software Engineering (Honours) through a combination of university and workplace learning over the duration of the degree.
- A Defence Industry Workforce and Skills plan will be released by the South Australian Defence Industry Workforce and Skills Taskforce in partnership with the Australian Government.
- The South Australian Government is partnering with the Australian Government, to establish a shipyard skills and training academy and an additional 800 university places over the next four years to prepare the workforce for AUKUS opportunities.
Defence SA:
| Agency objectives | Indicators | Performance |
| Maximise business opportunities by influencing policy, connecting industry to global supply chains and attracting investment. | Local industry participation in global supply chain for major defence projects.
Local industry undertake independent and global supply chain export opportunities. |
In March 2023, Defence SA hosted a contingent of more than 50 defence and space companies at Avalon Airshow, providing opportunities for international engagement and networking.
In October, industry representation on the South Australian stand at Land Forces quadrupled when compared with the 2010 event. A total of 58 local companies showcased their products, services, and capabilities in areas such as electronic warfare, component design, advanced manufacturing, research and education, and more. Defence SA led an industry delegation to attend the Undersea Defence Technology (UDT) Conference in Germany, providing attendees with an insight into global trends in the undersea defence domain. Defence SA led delegations to Sea Air Space in Maryland and Space Symposium in Colorado supporting SA defence and space companies as part of Team Defence Australia and Space Agency. |
| South Australian Submarine Taskforce report | In March 2023 the South Australian Submarine Taskforce completed its report, providing recommendations on:
– Impact on state legislation and regulation – Stakeholder Engagement – Supply chain strategy |
|
| Support of the Line Zero – Factory of the Future facility | The scope and function of Factory of the future continues to develop with additional funding in the SA and federal government budgets. This will broaden access to the Factory of the Future to other advanced manufacturing sectors. | |
| Defence or space industry companies from the Defence and Space Landing Pad establish in South Australia | In 2022-23 two companies from the landing pad established permanent operations in South Australia, while six others have remained in the landing pad assessing opportunities. | |
| Stimulating business capability by aligning local research and development, infrastructure and regulation with industry needs | Local research is aligned with the future needs of the defence industry. | Refer to Defence Innovation Partnership section for specific performance outcomes. |
| 737 Deep Maintenance and Modification facility (DMMF) development | Work continued on the DMMF with an expression of interest campaign to find a development partner commencing in May 2023. Construction is due to begin in early 2024 as part of a partnership between the South Australian Government and the Department of Defence. | |
| South Australia as a centre for information warfare | Establish a sustainable information warfare supply chain through maximising local industry participation, independent exports and global supply chain exports. | Defence SA continued to support the information warfare hub at RAAF Base Edinburgh as part of the workforce working group, supporting Air Warfare Centre projects and preparing to support existing and soon to arrive capabilities including P8 Poseidon, Triton unmanned aerial system, Peregrine electronic warfare aircraft and space and surveillance systems.
Defence SA recruited its inaugural Director Information Warfare. Commencing in July 2023, the newly created role will assist in ensuring South Australia is able to maximise opportunities across the key areas of intelligence surveillance reconnaissance and electronic warfare (ISREW), cyber and ICT for Defence and space. |
| Uplift cyber capability of South Australian industry to increase readiness for participation in global supply chains. | Defence SA is building the local, national and international relationships required to grow the cyber resilience of local defence and space supply chains and optimise opportunities for local industry to participate in international programs including nuclear-powered submarines.
Defence SA will explore a MOU relationship with Maryland US and Colorado (through DPC) supporting these objectives. |
|
| Building business capacity by working to attract and retain talent in the state. | Development of a robust and resilient industry, including a skilled and productive workforce and strong and capable SME sector. | The SA Defence Industry Workforce and Skills Taskforce was established to provide key recommendations on the education, training, employment and other programs necessary to meet industry demand. |
| Deliver Defence Industry Scholarship Program through Ai Group | Defence SA supported 11 students to complete their placements with defence industry in 2022-23. | |
| Deliver the Find Your Place campaign to educate South Australia’s future workforce, skilled workers and influencers on the opportunities in the defence and space industries. | Paid campaign activity occurred between March-June 2023, delivering results above KPIs.
Below the line activity occurred throughout 2022-23 including website, electronic direct mail, ambassador career profiles and news stories, presence at career expos and social media. |
Defence Innovation Partnership:
| Agency objectives | Indicators | Performance |
| Stimulating business capability by aligning local research and development, infrastructure and regulation with industry needs. | Facilitate and support new defence-relevant research and development collaborations in South Australia. | DIP Collaborative Research Fund – Round 6 awarded approximately $600,000 to four collaborative R&D projects involving South Australian university researchers, Defence Science and Technology Group, and defence industry.
The $4.6 million Activator Fund in June 2023 to support larger scale projects which align closely with the Australian Department of Defence’s Innovation, Science and Technology priorities was launched. |
| Increase the number of researchers and industry in South Australia involved in defence-relevant research and development. | DIP provided advice to potential Collaborative Research Fund researchers on the best way to connect with potential collaborators in Defence and made introductions for researchers into Defence Science and Technology Group, other parts of Defence, and defence industry.
An increase in the number of researchers approaching the DIP regarding funding programs occurred as a result of direct referrals from past applicants. Cross sectoral engagement through briefings with Centre of Excellence in Plants for Space, Safeguarding Australia through Biotechnology Response and Engagement (SABRE), MTP Connect, Venture Catalyst Space start-ups and Stone & Chalk start-ups. |
|
| Promote South Australia’s R&D credentials through advocacy and stories of defence-relevant research collaboration. | DIP exhibited at Australian Defence trade shows including: Land Forces, ADSTAR, Australian Space Forum and Avalon Airshow. Overseas representation at Defence events including: Sea Air Space (Washington), Space Symposium (Colorado Springs) and UDT (Germany).
These events were opportunities to promote the capabilities of South Australian researchers and engage with national and international collaborators and funders. Shared stories about researchers and projects through social media platforms Twitter, LinkedIn and YouTube. The audience for these accounts collectively grew by 32.67% to a total of 4,219 in 2022-23. |
|
| Build scale in South Australia’s defence R&D capabilities | DIP fostered transdisciplinary collaborations through the Convergence Series, with sessions on sustainability on Earth and beyond.
Engaged with researchers and organisations from the US and UK around potential joint projects focused on AUKUS Pillar 2 technologies. |
|
| Support a defence R&D workforce through advice and support for early and mid-career researchers and industry professionals | DIP provided support for the IDTC Workshop 2023 and The University of Adelaide Space Society Space and Innovation Hackathon.
Hosted a DSTG NAVIGATE Program researcher (mid-career) for six months as part of the Program’s placement requirement. |
SASIC:
| Agency objectives | Indicators | Performance |
| Maximising business opportunities by influencing policy, connecting industry to global supply chains and attracting investment. | Support the Andy Thomas Space Foundation in the delivery of the Australian Space Forum | In October 2022 and March 2023, the Andy Thomas Space Foundation hosted the 14th and 15th Australian Space Forum, attracting over 1000 attendees in person, including the largest industry exhibition in the event’s history, showcasing over 75 companies. The event continues to grow and increase its international presence. The 15th forum hosted a delegation from JAXA and was the first time the president of the Japanese Space Agency visited Australia. |
| Support investment in local procurement to prioritise local space companies; creating space-flight heritage and increasing international competitiveness of the South Australian industry | South Australia is progressing on a bold mission with industry to design and build a satellite to deliver space-derived services to the state. SASAT1 Space Services Mission will send a locally manufactured small satellite (named Kanyini) to low Earth orbit and employ an Internet of Things data collection service along with an electro-optical payload for Earth observation. SASAT1 is growing South Australian space companies through procurement.
An above the line consultancy was contracted to review SASAT1 design to ensure mission success. |
|
| Stimulating business capability by aligning local research and development, infrastructure and regulation with industry needs. | Support development of local space manufacturing capability to drive collaboration between space manufacturers. | Planning continued toward the $20 million space manufacturing facility which aims to accelerate the development of local space innovation into real world commercial technologies. The project will provide industry with access to world-class equipment capable of small satellite and component manufacturing, assembly, integration and test activities. |
| Delivery of space technology innovation programs. | Managed by Deloitte, SASIC is a key contributor to the GRAVITY Challenge.
GRAVITY Challenge is a space technology innovation program exploring new uses for space data and space capability. Its goal is to activate the space ecosystem by bringing market challenges and global innovators together to create viable solutions, and ultimately accelerate their commercial uptake. In 2022-23 GRAVITY 05 was delivered, with a commitment for continued support for GRAVITY 06 and 07. |
|
| Support Southern Launch through the major projects planning process to obtain approval for Whalers Way as an orbital launch site. | SASIC continues to chair the South Australian Government Southern Launch Taskforce.
The taskforce is coordinating the complex approvals required for the first of type launch facility in South Australia. The major development application was submitted in early 2023 and is currently under review. Extension of the test launch campaign was granted until November 2023. |
|
| Building business capacity by working to attract and retain talent in the state; building a talent pipeline to support sovereign capability. | Support the University of South Australia ICC Venture Catalyst Space program delivery | SASIC supported the delivery of the 2022 and 2023 Venture Catalyst Space program which included a cohort of 10 and seven companies respectively.
Of the interstate or international companies, five have now established an office in South Australia. Venture Catalyst Space attendees also participated in an Australia-India business engagement trip leading to new contracts. |
| Support the Andy Thomas Space Foundation to deliver student engagement activities, including the pilot Kids in Space Program | In partnership with the Australian Space Agency, SASIC supported the delivery of the pilot Kids in Space program, with 10 South Australian schools participating. Building on the Makers Empire program from 2021, Kids in Space involves participating schools each receiving a 3D printer, along with access to a custom designed space-themed virtual challenge course comprising purpose-made videos, quizzes, tutorials and design thinking challenges delivered via the popular Makers Empire 3D design app. |
Corporate performance summary
Defence SA is a government agency of the state of South Australia, established pursuant to the Public Sector Act 2009. Defence SA operations are funded predominantly via appropriation. Secondary income sources are derived from event participation fees.
Defence SA’s net result for 2022-23 was a net cost of service of $8.135 million including net revenue from the South Australia Government of $13.055 million. The budgeted net result was for a net cost of service of $2.273 million. The main reasons for the variation in net result is attributable to the following key factors:
- Reduced grant expenditure as a result of delays on the part of recipients in the achievement of payment milestones for industry assistance grants.
- Increased contractor expenditure as a result of timing in meeting project milestones in the SASAT1 Space Services Mission (Kanyini) project.
- Payments associated with the State Government Cash Alignment policy not included in the original budget.
Employment opportunity programs
| Program name | Performance |
| Aboriginal and Torres Strait Islander Internship Program | The Aboriginal and Torres Strait Islander Internship Program was established to provide the opportunity for participants to gain experience in administration, office and work management through exposure to the defence and space sectors. This assists participants to pursue a career in the South Australian public sector while also providing a better understanding of the opportunities available in the defence and space sectors. The most recent participant commenced in June 2023 and will remain with Defence SA for six months. He is working with the Director Information Warfare to provide exposure to opportunities in cyber in the state. |
Agency performance management and development systems
| Performance management and development system | Performance |
| Chief Executive Performance Agreement | The Chief Executive undertook a mid-cycle performance review of the goals and objectives component of the annual performance agreement on 9 May 2023. |
| Executive Staff Performance Management and Development System | All executive staff participate in an annual performance review process with key deliverables linked to the Chief Executive’s objectives as well as utilising the system to identify training and development opportunities. The performance review process involves, a half-yearly review and an annual review. By 30 June 2023, 100% of executive staff had completed their half-yearly and annual review. |
| Non-Executive Staff Performance Management and Development System | All non-executive staff participate in an annual performance review process linked to training and development. This involves, a half-yearly review and an annual review. By 30 June 2023, 100% of non-executive staff had completed their half-yearly and annual review. |
Work health, safety and return to work programs
| Program name | Performance |
| First Aid | Defence SA has four qualified First Aid Officers who have completed accredited training. |
| Mental Health First Aid | Defence SA has four Mental Health First Aid Officers who have completed accredited training. This complements the existing Employee Assistance Program. A number of staff also completed training on ‘difficult conversations’ which focused on monitoring individual stress levels. |
| Workplace injury claims | 2022-23 | 2021-22 | % Change (+ / -) |
| Total new workplace injury claims | 0 | 0 | 0% |
| Fatalities | 0 | 0 | 0% |
| Seriously injured workers* | 0 | 0 | 0% |
| Significant injuries (where lost time exceeds a working week, expressed as frequency rate per 1000 FTE) | 0 | 0 | 0% |
*number of claimants assessed during the reporting period as having a whole person impairment of 30% or more under the Return to Work Act 2014 (Part 2 Division 5)
| Work health and safety regulations | 2022-23 | 2021-22 | % Change (+ / -) |
| Number of notifiable incidents (Work Health and Safety Act 2012, Part 3) | 0 | 0 | 0% |
| Number of provisional improvement, improvement and prohibition notices (Work Health and Safety Act 2012 Sections 90, 191 and 195) | 0 | 0 | 0% |
| Return to work costs** | 2022-23 | 2021-22 | % Change (+ / -) |
| Total gross workers compensation expenditure ($) | 0 | 0 | 0% |
| Income support payments – gross ($) | 0 | 0 | 0% |
**before third party recovery
Data for previous years is available at: https://data.sa.gov.au/data/dataset/whs-return-to-work-performance-2021-22-defencesa
Executive employment in the agency
| Executive classification | Number of executives |
| EXEC0A | 1 |
| SAES1 | 5 |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/executive-employment-2021-22-defencesa
The Office of the Commissioner for Public Sector Employment has a workforce information page that provides further information on the breakdown of executive gender, salary and tenure by agency.
Financial performance
Financial performance at a glance
The following is a brief summary of the overall financial position of the agency. The information is unaudited. Full audited financial statements for 2022-23 are attached to this report.
The Financial Statements include information relating to the following programs:
- Defence Industry Development
- South Australian Space Industry Centre
- Veterans SA
| Statement of Comprehensive Income | 2022-23 Budget
$000s |
2022-23 Actual
$000s |
Variation
$000s |
2021-22
Actual $000s |
| Total Income | $14,517 | $14.799 | $282 | $23,175 |
| Total Expenses | $16,790 | $22,934 | $(6,144) | $17,119 |
| Net Result | $(2,273) | $(8,135) | $(5,862) | $6,056 |
| Total Comprehensive Result | $(2,273) | $(8,135) | $(5,862) | $6,056 |
| Statement of Financial Position | 2022-23 Budget
$000s |
2022-23 Actual
$000s |
Variation
$000s |
2021-22
Actual $000s |
| Current assets | $8,788 | $9,744 | $956 | $18,046 |
| Non-current assets | $2,324 | $2,371 | $47 | $2,824 |
| Total assets | $11,112 | $12,115 | $1,003 | $20,870 |
| Current liabilities | $3,462 | $1,863 | $1,599 | $2,049 |
| Non-current liabilities | $2,345 | $2,389 | $(44) | $2,823 |
| Total liabilities | $5,807 | $4,252 | $1,555 | $4,872 |
| Net assets | $5,305 | $7,863 | $2,558 | $15,998 |
| Equity | $5,305 | $7,863 | $2,558 | $15,998 |
Consultants disclosure
The following is a summary of external consultants that have been engaged by the agency, the nature of work undertaken, and the actual payments made for the work undertaken during the financial year.
Consultancies with a contract value below $10,000 each
| Consultancies | Purpose | $ Actual payment |
| N/A | N/A | $ Nil |
Consultancies with a contract value above $10,000 each
| Consultancies | Purpose | $ Actual payment |
| N/A | N/A | $ Nil |
| Total | $ Nil |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/consultants-2021-22
See also the Consolidated Financial Report of the Department of Treasury and Finance for total value of consultancy contracts across the South Australian Public Sector.
Contractors disclosure
The following is a summary of external contractors that have been engaged by the agency, the nature of work undertaken, and the actual payments made for work undertaken during the financial year.
Contractors with a contract value below $10,000
| Contractors | Purpose | $ Actual payment |
| All contractors below $10,000 each – combined | Various | $22,499 |
Contractors with a contract value above $10,000 each
| Contractors | Purpose | $ Actual payment |
| Defence Industry Development | ||
| Rasu Film & Stills | Creative services | $37,362 |
| Defence Teaming Centre Inc | Defence and Space Landing Pad concierge service | $41,870 |
| Hollie Doran Consulting | Client engagement services Submarine Task Force | $43,200 |
| Frazer-Nash Consultancy | Technical support Submarine Task Force | $85,437 |
| Ai Group Centre for Education | Management of Defence Export Scholarships program | $110,000 |
| AT Kearney Australia | Industry Development scope Submarine Task Force | $186,364 |
| South Australian Space Industry Centre | ||
| Mews Partners Australia | Satellite Development | $28,800 |
| Smartsat CRC | Satellite Development | $1,448,300 |
| Veterans SA | ||
| Innovate Communicate & Cowork Coplay | Delivery of Veterans Cowork Coplay project | $16,000 |
| Be Sustained | Delivery of veterans mentoring program | $37,000 |
| Total | $2,034,333 | |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/contractors-2021-22-defencesa
The details of South Australian Government-awarded contracts for goods, services, and works are displayed on the SA Tenders and Contracts website. View the agency list of contracts.
The website also provides details of across government contracts.
Other financial information
The Agency administered the Anzac Day Commemoration Fund established under the Anzac Day Commemoration Act 2005.
| Statement of Comprehensive Income | 2022-23 Budget
$000s |
2022-23 Actual
$000s |
Variation
$000s |
2021-22
Actual $000s |
| Total Income | $100 | $100 | $ – | $100 |
| Total Expenses | $100 | $100 | $ – | $82 |
| Net Result | $ – | $ – | $ – | $18 |
| Total Comprehensive Result | $ – | $ – | $ – | $18 |
| Statement of Financial Position | 2022-23 Budget
$000s |
2022-23 Actual
$000s |
Variation
$000s |
2021-22
Actual $000s |
| Current assets | $77 | $97 | 20 | $95 |
| Total assets | $77 | $97 | 20 | $95 |
| Current liabilities | $- | $2 | $(2) | $- |
| Total liabilities | $- | $2 | $(2) | $- |
| Net assets | $77 | $95 | $18 | $95 |
| Equity | $77 | $95 | $18 | $95 |
Risk management
Risk and audit at a glance
Fraud detected in the agency
| Category/nature of fraud | Number of instances |
| N/A | Nil |
NB: Fraud reported includes actual and reasonably suspected incidents of fraud.
Strategies implemented to control and prevent fraud
All staff completed the SA Public Sector Code of Ethics refresher training during June and July 2023. During the year staff undertook Cyber Security Awareness training during September and October 2022 and Fraud and Corruption Awareness training during July and August 2023.
Data for previous years is available at: https://data.sa.gov.au/data/dataset/fraud-detection-2021-22-defencesa
Public interest disclosure
Number of occasions on which public interest information has been disclosed to a responsible officer of the agency under the Public Interest Disclosure Act 2018:
Nil
Data for previous years is available at: https://data.sa.gov.au/data/dataset/whistle-blower-disclosure-2021-22
Note: Disclosure of public interest information was previously reported under the Whistleblowers Protection Act 1993 and repealed by the Public Interest Disclosure Act 2018 on 1/7/2019.
Reporting required under any other act or regulation
Reporting required under the Carers’ Recognition Act 2005
Defence SA is not required to report under the Carers’ Recognition Act 2005.
Public complaints
Number of public complaints reported
| Complaint categories | Sub-categories | Example | Number of Complaints
2022-23 |
| Professional behaviour | Staff attitude | Failure to demonstrate values such as empathy, respect, fairness, courtesy, extra mile; cultural competency | Nil |
| Professional behaviour | Staff competency | Failure to action service request; poorly informed decisions; incorrect or incomplete service provided | Nil |
| Professional behaviour | Staff knowledge | Lack of service specific knowledge; incomplete or out-of-date knowledge | Nil |
| Communication | Communication quality | Inadequate, delayed or absent communication with customer | Nil |
| Communication | Confidentiality | Customer’s confidentiality or privacy not respected; information shared incorrectly | Nil |
| Service delivery | Systems/technology | System offline; inaccessible to customer; incorrect result/information provided; poor system design | Nil |
| Service delivery | Access to services | Service difficult to find; location poor; facilities/ environment poor standard; not accessible to customers with disabilities | Nil |
| Service delivery | Process | Processing error; incorrect process used; delay in processing application; process not customer responsive | Nil |
| Policy | Policy application | Incorrect policy interpretation; incorrect policy applied; conflicting policy advice given | Nil |
| Policy | Policy content | Policy content difficult to understand; policy unreasonable or disadvantages customer | Nil |
| Service quality | Information | Incorrect, incomplete, out-dated or inadequate information; not fit for purpose |
Nil |
| Service quality | Access to information | Information difficult to understand, hard to find or difficult to use; not plain English | Nil |
| Service quality | Timeliness | Lack of staff punctuality; excessive waiting times (outside of service standard); timelines not met | Nil |
| Service quality | Safety | Maintenance; personal or family safety; duty of care not shown; poor security service/ premises; poor cleanliness | Nil |
| Service quality | Service responsiveness | Service design doesn’t meet customer needs; poor service fit with customer expectations | Nil |
| No case to answer | No case to answer | Third party; customer misunderstanding; redirected to another agency; insufficient information to investigate | Nil |
| Total | Nil |
Additional Metrics |
Total |
| Number of positive feedback comments | Nil |
| Number of negative feedback comments | Nil |
| Total number of feedback comments | Nil |
| % complaints resolved within policy timeframes | N/A |
Data for previous years is available at: https://data.sa.gov.au/data/dataset/public-complaints-2021-22-defencesa
| Not applicable. |
Service Improvements
| Not applicable. |
Compliance Statement
| Defence SA is compliant with Premier and Cabinet Circular 039 – complaint management in the South Australian public sector | Y |
| Defence SA has communicated the content of PC 039 and the agency’s related complaints policies and procedures to employees. | Y |
