Targeted spending cuts

Ensuring balance

We are returning the budget to surplus through targeted spending cuts, which retain fairness, place the budget on firmer ground and achieve better value for taxpayers' money.

Over $33.6 billion in saves have been identified in this Budget with less than half being tax. This builds on the over $100 billion of savings we identified over the last four Budgets.

In making these decisions we have applied our core values of protecting the most vulnerable in our community and the frontline services Australian families rely on.

We remain committed to providing the skills for tomorrow's workforce

and continuing to improve our health and education systems.

By focusing on fairness and value for money the Government has been able to prioritise spending to people most in need.

Putting the budget on firmer ground

The Government is seeking greater efficiencies from the Australian Public Service. As announced in MYEFO an additional efficiency dividend of 2.5 per cent will apply to most Commonwealth agencies in 2012–13.

The Government has agreed to changes to the Pharmaceutical Benefits Scheme which will see more competitively priced medicines

and the listing of new items that can be used in place of more expensive medicines.

This will save $163.5 million, which is on top of the $1.9 billion in savings we have negotiated with the sector.

The Government is also better targeting the safety net arrangements under the Medicare Benefits Schedule including reducing opportunities for practitioners to charge excessive fees. This will save $96.5 million over four years.

We are better targeting support under the Family Tax Benefit system by limiting access to FTB–A to children under 18 or in full time secondary school.