Minister for Finance and Deregulation Senator Penny Wong said the Federal Government has reshaped its approach to public sector spending, to include efficient delivery, improved organisational efficiency, removing duplication and reducing input costs.
The government’s focus on cost savings has helped it achieve its fiscal strategy and return the Budget to surplus in 2012-13, while also delivering on its key social policy priorities.
According to Ms Wong, savings have been driven by major reform to areas of government including travel, property management and ICT.
It includes about $2 billion in savings from 2008-09 to 2015-16 through more efficient and effective management of ICT; revised recruitment advertising guidelines which has reduced expenditure by around $30 million each year since 2009-10; and $204 million less from 2009-10 to 2015-16 through a new Commonwealth Property Management Framework.
Ms Wong said recently, the second phase of whole-of-government travel arrangements were finalised, which means a simpler approach to booking, paying and reporting travel across government.
These savings are in addition to the airline and travel management company arrangements put in place in 2010, which have already delivered $240 million in savings from 2010-11 to 2015-16.
The government also recognises that greater efficiency in the public service is more than cost-cutting and investments need to be made now to secure long-term sustainable gains in the future, Ms Wong said.
Examples of this include:
• A new parliamentary workflow system – the 2012-13 Budget included an investment of $10 million over five years in an electronic parliamentary workflow system, which is expected to deliver savings of $30 million over 10 years.
• New care determination arrangements – in the 2009-10 Budget, the government invested $15 million in new arrangements to ensure that parents only have to participate in one care determination in order to work out their entitlements for child support and family assistance purposes.
This removed duplication of effort and is expected to provide ongoing savings of $10 million per year from 2012-13 onwards.
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