From one report - "Australia’s annual defense report showed that its Tigers had flown 3,000 hours in the 12-month period, well under the 6,000 hours sought. The Army further said the helicopter’s twin Turbomeca MTR 390s have the highest operating cost of any helicopter engine in its inventory. The service has two squadrons based at Darwin in the far north of Australia. It is concerned about the time it takes for components sent to Europe to be returned, as well as with many unreliabilities. A cabin filling with smoke has caused several forced landings. The first Tiger was delivered in 2004 and the last in 2011 but the type has still not achieved full operational capability. This has now been delayed again, from this year to next.
This sounds like typical Defence Dept - equipment ordered by clowns who have no experience in using it - competing requirements by various depts and sections means they end up with a camel instead of a horse - and a supplier who happens to see Defence Dept orders as a licence to print money, and to load up every component with massive, obscene, and opaque charges.
I can remember one ex-employee telling me how he was involved in the early 1970's with an Indian Air Force contract when he worked for a British aerospace company. Parts that cost the company something like £14, were invoiced out at £1000 to the IAF.
Another factor that grates with me is how all British and European purchases from Australia include the local VAT - in some Euro states, I understand that is around 20%.
Yet, anyone who buys Australian products from an overseas location, gets them completely Australian-tax (GST) free.
20% hidden tax on top of multi-million dollar engines and overhaul costs would be a pretty sizeable additional Defence burden, annually.
I think Malcolm would be well-advised to drop the GST-free status for overseas purchasers of Australian products, to assist in balancing the books.