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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Reducing waste and enhancing public sector efficiency

To deliver more with less the Government is undertaking a range of measures to increase public sector efficiency including trimming down the public sector, consolidating government programmes and bodies and outsourcing some service delivery

The Government will reduce waste and duplication within the public sector by reducing the size of the public service, consolidating government programmes and bodies and examining service delivery options.

Reducing the size of the Australian Public Service

The Australian Public Service will reduce by 16,500 across the four years to 2016‑17, including the previously hidden 14,500 reduction as a result of decisions taken by the previous Government. The Government is streamlining the public service through the ongoing efficiency dividend, line‑by‑line savings within each portfolio, reviewing grants funding, and undertaking efforts to reduce expenditure on staff. A leaner public sector will deliver better value for each taxpayer dollar and ensure resources are directed to policy priorities.

Consolidation of programmes and bodies

The Government has abolished over 230 programmes. It also has an ongoing process that has seen 70 bodies, boards, committees and councils abolished so far to streamline accountabilities and improve efficiency.

Outsourcing and enhanced competition

The Government is systematically assessing whether government functions should be open to competition and outsourced. Over time, this process will lead to new private sector opportunities and more efficient and effective service delivery.

The Government should be active only where it is needed and where the private sector cannot adequately fulfil the function. Outsourcing non-essential functions and enhancing competition will lead to more efficient and effective service delivery and reduced expenditure.

Real spending on wages and salaries for employees in the Australian Government general government sector are declining
Real spending on wages and salaries for employees in the Australian Government general government sector reached its peak in 2013-14 at around $19 billion, and are now forecast to decline to around $17.5 billion by 2017-18.