Shane “Buzz” Sarlin

A lot is being said about the new and updated Commonwealth Procurment rules for SMEs. The fact is, while extending the definition to preclude associated entities is great, the definition of SME still doesn’t align with the ATO definition - a definition based on based revenue and not how many people are employed. We have a government with two definitions of the same thing for the convenience of policy setting. The CPR means a firm with 150 FTE direct employees, an unlimited number of subcontractors who are not employees and a revenue of $800m is an SME, whereas for tax purposes, the ATO holds that and Small enterprise has a revenue of <$10m. This policy and quota for SME participation is hollow without a stronger definition of what an SME really is. I fear not much will change with this CPR revision and its targets. Time will tell. Bottom line: if you’re a reporting entity as defined by Chapter 2M of the Corporations Act 2001 - you’re not an SME and shouldn’t benefit from these changes.

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in 10 key points, SAA's Marcus Hellyer summarises the blizzard of numbers and programs in the National Defence Strategy and Integrated Investment Program. 1. The additional Defence funding announced by the Government ($5.7 billion over the forward estimates, i.e., the next four years, and $50.3 billion over the decade) will be consumed entirely by the nuclear-powered submarine program, the general purpose frigate project and exchange rate compensation. There is no new money for anything else. 2. The growth in funding over the forward estimates is not unusually large by historical standards. 3. The new IIP repeats the failure of previous investment programs, hoping to raise acquisition spending to a wildly implausible 42% share of the total Defence budget. Defence has been trying to reach 40% since the 2016 Defence White Paper but never passed 31%. 4. Put another way, delivering the program requires massive, continual increases in acquisition spending. Defence is unlikely to spend this money since it has underachieved against its acquisition budget by $22.5 billion since the 2016 White Paper. 5. The budget contains no compensation for the loss of buying power caused by three years of extremely high inflation. 6. Consequently the new program only addresses the ‘exploding suitcase’ of the capability program by removing large, previously planned capabilities (either completely or moving them beyond the decade). Little to no explanation is provided for these decisions. 7. The IIP doesn’t address ADF’s fundamental people program, namely that it needs to grow by 20,000 but has achieved virtually no growth over the past eight years. 8. Planned spending on the Maritime domain has grown from 28% to 38% of the investment budget. That’s more than Land (15%), Air (14%) and Cyber (7%) combined. 9. No explanation is provided for why this distorted balance of investment provides better support of the new ‘Strategy of Denial’ than any other mix other than statements that this results in a ‘focused force’. 10. That 38% investment in Maritime capabilities represents $114-145 billion over the decade. However, $75-95 billion of that (65%) is programmed just for two capabilities: nuclear-powered submarines and Hunter-class frigates. Since the first of class of those fleets will only enter service at the end of the decade, two-thirds of the Maritime program’s spending (and 25% of all acquisition spending) provides virtually no sovereign capability over the decade. Read the analysis here:

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The Defence Industry Development Grants Program will fund small to medium enterprises to build Australia’s sovereign capability, global competitiveness, technical superiority and national security. There are four streams within the program, being: ·        Sovereign Industrial Priorities (matched funding grants between $50,000 and $1,000,000) which aims to assist eligible SMEs to purchase manufacturing plant and equipment which is used directly to develop and/or deliver programs that are in-line with the Sovereign Defence Industrial Priorities (SDIPs – see below).  ·        Exports (matched funding grants between $15,000 and $250,000) which aims to provide support for SMEs to overcome export barriers and help defence industry build scale and competitiveness in defence capability priority areas as identified by the SDIPs. ·        Security (matched funding grants between $10,000 and $100,000) which aims to support national security through the provision of Defence capability. Skilling (matched funding grants between $5,000 and $250,000) which aims to support upskilling and / or retraining of staff in defence capability needs.

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Today is R U OK? Day – A Reminder to Check In and Connect 🤝 Today, let's take a moment to ask those around us a simple question: "Are you OK?" Here at Wadsworth Barracks in Bandiana Ventia, Linfox , Defence Australia and the Commonwealth of Australia joined together for morning tea and to take a moment to check in with each other. It’s more than just a question; it’s about being there for each other, fostering an environment where everyone feels safe to share how they truly feel. Whether it's a colleague, a friend, or a family member, reaching out can make all the difference. Here are a few steps to starting a conversation: 💙1. Ask: Be genuine and open. A simple "How are you going?" can start a meaningful conversation. 💚2. Listen: Give them your full attention. Sometimes, listening is the most powerful thing you can do. 💙3. Encourage Action: Suggest next steps, whether it's professional support or just a catch-up later. 💚4. Check In: Follow up after a few days. Show that you genuinely care. Shout out to the RTF for your ongoing support to help make today a success and for the amazing shirts! @nicolewright Jye Zanardo @Matt knight @chantel @mattpower 💙💚Let's look out for one another. 💛 #RUOKDay #MentalHealthAwareness #SupportEachOther #ListenAndSupport #MeaningfulConversations #teamventia

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The growing workforce challenges facing our defence sector come as Australia’s strategic circumstances are becoming more complex. We urgently need more highly skilled professionals to boost defence capability and help meet current and future workforce needs, as the Government’s new strategy recognises. Universities are central to this task. Building this workforce will require the full support of the Government so our universities can continue educating the skilled workers our defence force needs – from engineers and intelligence officers to cyber security professionals and IT specialists. Universities also undertake the research central to how Australia responds to the changing global environment and need to be fully supported to continue this important work. The Australian Universities Accord final report includes a series of recommendations to underpin the expansion of university teaching and research which will support the national defence strategy. We will continue to work with government to support the ongoing and crucial work universities do to deliver for the nation. #auspol #skilledworkforce #defenceworkforce

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Great to see the third in the IPA’s Defence Blueprint Series written up by Steve Kuper over at Defence Connect , highlighting actions that will need to taken in the next terms of government to mobilise Australian industry in behind our urgent need to upgrade ADF capability and national defence more generally. I’ll link to report, Right Here Right Now: Unleashing Australian know-how to grow military power fast, in comments. #defenceaus #defence #nationalsecurity https://lnkd.in/gPitH-ck

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EOI: The Commonwealth is seeking EOIs for a pilot fund project under the Defence Industry Development Strategy (DIDS), announced by the Hon. Pat Conroy, Minister for Defence Industry, earlier this year. The new initiative will focus on engaging venture capital fund managers and investors to help fund eligible Australian businesses with Defence capabilities. Such businesses must have less than 50 employees and a technical readiness level between 3 and 7. This opportunity seeks to financially support small and micro Australian businesses, allow them to access equity or debt products, and enable them to leverage their capabilities into Defence programs in Australia and New Zealand. EOIs close 2nd August at 2pm. Register with AusTender in order to download relevant EOI documentation. EOI responses must be lodged via AusTender as per the instructions contained in the conditions of the EOI. https://lnkd.in/grd95zs #ICN #ICNNSW #EOI #Funding #Defence

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It’s time for the government to spill a secret: whatever happened to its ‘independent review’ of think tanks and universities, and what’s the future for any organisation looking for government funding to continue this work? Back in February, the government appointed Peter Varghese to conduct an independent review of think tanks, universities and others funded by government to ‘inform the public debate’. But the review and any submissions to it have been kept secret. I know from my time at ASPI and now in a tiny think tank that doesn’t seek or receive government money that our Commonwealth bureaucrats only like external ideas when these agree with or support their own. For them, a happy think tank is one they have on a string. Their preferred funding model for think tanks like ASPI or Lowy would be a ‘pay as you play’ approach, where they commission work on specific questions they set. That minimises discomfort and ensures the receiving think tank or uni knows they have to keep the customer happy if they are to get any future work. Government consultancies understand this model well. The only way to get independent analysis & a diverse set of views into the Australian public debate on defence and security is to have some reliable funding to the small number of organisations that do this work - & to ensure that that money is not at the whim of powerful Canberra mandarins. A wealthy backer like Frank Lowy in the case of the foreign affairs-focused Lowy Institute is one model – although there has only been one Frank Lowy for the Australian foreign affairs & security community, making the limited amount of government money that goes to the sector more important. Read the article here:

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Significant developments in Australia's defence strategy have been identified with the release of the National Defence Strategy (NDS) and Integrated Investment Program (IIP). The NDS affirms a defence strategy of denial and will deliver a massive boost to defence funding, with an additional $5.7 billion over the next four years and $50.3 billion over the next decade. It will be interesting to see how this updated strategy and increased spending translate into specific capability enhancements and force posture changes. Read Full Documents here: https://lnkd.in/g_6E3M7N #AustralianDefence #DefenceIndustry #NationalDefenceStrategy #IntegratedInvestmentProgram #Strategy #Investments 

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The founding philosophy and objectives behind WA DEFENCE REVIEW and our Annual Publication concept remain as relevant now as they were eight years ago. Click here to view the interview with WA DEFENCE REVIEW Founder, CEO and Principal Editor, Serge D.: https://lnkd.in/gC3c7G_A Since the launch of our inaugural 2018-19 Annual Publication which is now coming into the 6th edition, WA DEFENCE REVIEW has grown from modest beginnings into a more consolidated and established publisher and media agency. Looking back at our the 2018-19 annual digest launch highlights video, we can ascertain how much has been accomplished since. See: https://lnkd.in/gTR5iPdz Please follow WA DEFENCE REVIEW to receive our updates. #defence #defenceindustry #technology #innovation #Perth #westernaustralia #wadefencereview #wadefence #industry #aukus #australia #manufacturing #engineering #aviation #naval #maritime #aerospace #submarines #policy #strategy #internationalrelations #indianocean #aukus

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Today the Commonwealth released the inaugural National Defence Strategy (NDS) and the Integrated Investment Program (IIP). The NDS outlines the Government’s strategic framework to guide the significant and urgent changes required to address Australia’s challenging strategic circumstances, while the IIP outline the government’s investment priorities. Speaking to 10 News First this afternoon Mike Hartas, Chair of the DTC welcomed the release of the IIP and NDS stating that the recent funding announcement is a positive for industry. “We align closely with these Sovereign Defence Industrial Priorities and are committed to steering our members towards these goals,” Mike said. “However, a significant concern remains the complexity of commercial frameworks within Defence contracting. “Industry is keen on seeing a shift towards contracts that not only prioritise Australian companies but also foster the development of true sovereign capabilities, rather than relying heavily on international procurements, particularly from the United States. “Our members seek the establishment of long-term contracts that not only secure future planning but also minimise the complexity and associated risks. “Specifically, we advocate for a framework where Defence only passes down manageable risks, thereby enabling a more efficient and focused industry response,” Mike added. To read the full NDR and IIP click on the following link - https://lnkd.in/g_6E3M7N

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Really insightful propositions put forward by Simon Ewing-Jarvie for NZDF. Here are some key sound bites: 1. "Defence acquisition has to be quicker and more cost effective". I 100% agree with this. There is A LOT of scope for improvement here. 2. Require "enough weapons for every service member, not the current minimalist sharing arrangement". I somewhat agree with this. However, I would take this a step further and encourage enough individual solider protection systems (eg. body armour, ballistic helmet, night vision, weapon, etc) to be procured and issued to every service member who may be expected to deploy into harms way. Furthermore and relating to Simon's discussion on "sustainment", mechanisms need to be point in place to ensure that the technological solutions that make up the soldier protection system are cycled in such a way to ensure that the NZDF warfighter is able to enter tomorrow's conflicts with solutions that provide them an unfair advantage over their enemy. 3. "Merge Ministry of Defence and New Zealand Defence Force". I mostly agree with this. There are potential efficiencies to be captured here which relate to discussion point number one. Expect a period of "storming" though if this was to occur. 4. "The NZDF will be able to use the Defence Depreciation Account to purchase equipment without reference to Cabinet provided it is in the Capability Plan". I both agree and disagree with this. Whilst this makes sense in principle, Military Capability Inflation makes solely relying on this funding mechanism to sustain essential capabilities untenable. Additional funding mechanisms need to be identified that also align with the intent of discussion point one. 5. "The most urgent need for the NZDF is mass". I mostly agree with this but I think what is equally important is the discussion around "what type of mass". As Simon points out, we "are a small nation that can't afford to waste life on training or operations". Leveraging off this harsh reality and incorporating some economic principles on competition, I would argue that the NZDF needs to focus on specialisation instead of trying to mirror big brother: Australia, USA, UK or Canada. For example, you don't try to defeat Pepsi or Coca Cola by bringing out another cola beverage for consumers. You make entry and gain ground in the hyper competitive beverage market by specialising and offering something with a point of difference. Eg. like "Charlies" did back in the early 2000's.

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Starting on page 252, is an article based on lessons learnt by our WA and NT transport industry on why DEFENCE NEEDS TO THINK BEYOND HARDENING NORTHERN BASES TO HOW IT INTENDS TO SUSTAIN THEM FROM AUSTRALIA'S SOUTHERN INDUSTRIAL HEARTLAND by Cam Dumesny and Louise Bilato Ps it contains a pretty impressive map #transport #defence #resilience

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In a few weeks, the Australian Defence Industry will come together at Land Forces International Land Forces International Land Defence Exposition 2024. For some, they will have attended many of these shows and for others, this will be the first time. It is important to have a robust plan when visiting exhibitions like Land Forces, however more importantly, it is necessary to understand why you are attending and what it is you deliver to your potential customer. If you are a supplier or manufacturer, ask yourself why the soldier would want your equipment in the field over someone else's. Soldiers don't care about cost, they care about ease of use, how much does it weigh on top of all the other kit I am already carrying, how long will it last before I need to resupply it, or can I give it to my 18 year old new recruit and trust they can use it without blowing their own hand off. If your equipment performs well in a lab, take it outside into the bush for a few days and see how it performs then. Operational Test and Evaluation (OT&E) is crucial to field any new equipment, and you want to know what you are proposing is going to past the test. When you are at the conference, take time to talk to the soldiers walking around the show. Generals and Colonels are important as they are the decision makers, but the Diggers are the ones that have to use it, and their feedback is paramount to delivering capability. If you or your company needs any help navigating Defence Industry Conferences like Land Forces, reach out to Golf Whiskey Two to see if we can assist. [email protected] #lfc24 #veteranshelpingveterans #defenceindustry #capability

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We are hosting a panel discussion at Land Forces International Land Defence Exposition analysing #AUKUS Pillar II with a land focus. AUKUS has changed the Australian defence industry landscape. While the scale of the Pillar I nuclear-powered submarines dominates discussion, Pillar II will forge new industrial ties, co-producing and co-delivering next-generation warfighting capabilities across eight advanced technology areas. It presents a significant opportunity for Australian companies but is not without challenges. The panel will analyse AUKUS Pillar II with a land focus; where are we now, what are the specific opportunities for Australian industry and what needs to occur to capitalise on them. Join our CEO Dean Rosenfield, Advanced Strategic Capabilities Accelerator (ASCA) Head Prof Emily Hilder, and Acacia Systems CEO Bob Humphreys as they provide their views and insights on opportunities for Australian industry and what needs to occur to capitalise on them. This event is open to all and will be held at 1530 on day one in the main exhibition hall Theatrette. #WeAreNova #LandForces2024

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Take a PEAP at this… 👀 PEAP is the Partner Employment Assistance Program, which aims to improve employability of eligible Defence partners through support and funding. The program is administered by Defence Member and Family Support and has seen many iterations over the years, including PEEP and SWAPP, as well as many adjustments to the current PEAP funding model. Support includes the reimbursement of professional re-registration fees, as well as Job Search Preparation workshops which are of no cost and can be accessed at any time. The workshops comprise of four modules: 🔍Career insight and planning 📄Personal branding (resume development) 🤝Networking and job search 👩‍💻Preparing for interviews. PEAP funding also includes up to $1,500 per posting for recognised ADF partners who are/have relocated due to an ADF posting which can be used for employment services including: 📄 development of a personalised resume and/or resume coaching 🤝 employment options and job placement advice 🔍 job search techniques and strategies 💻 development of an online employment profile ☑️ application and selection criteria coaching, and 👩‍💻 preparation and presentation coaching for interviews. ⏰There is no longer any time limit to accessing this funding. This means if you are on a posting, and are experiencing employment challenges, you can access this assistance even if you have been in your current location for five years, or longer. Find out more at https://lnkd.in/dNXhNQj6 DFA continues to advocate for family employment, including the ongoing review of PEAP and advocating for changes that will ensure the program meets the employment support needs of ADF families. If you have feedback about family employment initiatives, reach out to us at [email protected] *Before you access any benefits, note there may be fringe benefit tax (FBT) implications. Please refer to the program website and investigate if this may suit your circumstances. 📷: Andrea Piacquadio/ Pexels

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I was in Parliament House yesterday and heard claims that officials appearing before the Budget round of Senate Estimates hearings are deploying tactics from the Albanese estimates playbook to avoid accountability, despite claims to the contrary that no such guide exists. This aligns with my concerns expressed earlier this week: "Senate Estimates kick off this Tuesday, and it looks like PM @AlboMP has come prepared with his guide on evasion! "Evasion Expertise: Labor’s Guide to Political Sidestepping" may not be a bestseller, but it’s certainly headline material. Last month the Liberal Party revealed the existence of a secret manual from the Prime Minister’s Office instructing departments on how to avoid answering questions. This is a new low from the Albanese Labor Government, showing clear contempt for the Senate and a blatant disregard for accountability. Senator Simon Birmingham @Birmo said it best: "The Prime Minister has serious questions to answer about this document. Avoiding transparency and accountability only endorses its contents." If you can dodge a question, you can dodge accountability! Has PM Albanese retracted his manual, or will his government face the Senate with the transparency he promised?" Senate Estimates should be a forum where officials answer questions transparently and provide information for the public record. However, it seems that this critical process is being undermined. If tactics from a "guide on evasion" are being used, it threatens the integrity of Estimates, turning it from a tool for public accountability into one for obfuscation. Transparency and accountability are paramount. We must ensure that Senate Estimates remain a robust mechanism for scrutinising government actions, not a stage for political sidestepping.

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Tough times ahead for NZDF but with an unfailing will to succeed and sound objective thinking, they should be able to pull through this. However, I encourage our military leaders and decision makers to objectively think about what type of Defence Force Aotearoa / New Zealand needs between now and 2030. Air Marshal Tony Davies (CDF) stated in the below that: "the NZDF had a “largely uncontrollable” budget shortfall of more than $130m due to rising costs across the board, with the cost of one type of ammunition rising 600 percent since 2020 and fuel costs per litre almost doubling over the same period." Now this is important. What many may not know is that in 2009 the Office of the Auditor General identified that: "the average rate of military inflation is 3% more than the economic average inflation. The inflation rate for military capital equipment is higher again – it is double the average rate of military inflation." This means, when NZ was experiencing 6% CPI inflation in 2023 (approx.), NZDF was experiencing 9% military inflation and 18% inflation on capital equipment. So What? With the ever diminishing portion of the GDP pie, NZDF cannot afford to continue with its current force design structure. I recommend a complete rethink in regards to what Outputs NZDF needs to achieve and how it can achieve those Outputs within the ongoing budget constraints contributing economic factors.

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