Appendix A: Expense Measures (Continued)
Reducing the cost of Government administration — one‑off efficiency dividend
The Government will apply an additional one‑off efficiency dividend of 2.5 per cent in 2012‑13 to departmental appropriations excluding departmental capital funding. This measure will not apply to: public sector entities already exempt from the ongoing efficiency dividend, the Australian Communications and Media Authority or to specific cultural agencies; courts and tribunals; and Aboriginal and Torres Strait Islander organisations exempted by the Government. This will result in savings of $1,490.0 million over the forward estimates.
Savings will be delivered through a range of efficiency reforms including by efforts in reducing use of consultants and contractors; reducing spending on hospitality and entertainment; reducing legal expenses; replacing international and domestic travel with use of the Government's telepresence facilities and other communication tools; reducing media buy; reducing recruitment advertising expenditure in line with Guidelines on Non‑Campaign Recruitment Advertising; reducing printing and publication expenditure; delivering more efficient training and in any other specific areas identified by the Minister for Finance and Deregulation. Entities will report annually to Government on their reduced spending. As part of its wider reform process, the Government will establish a working group of stakeholders to advise on issues relating to implementation of the one‑off efficiency dividend and Senior Executive Service reforms.
This measure builds on a sustained program of efficiency reforms already being delivered by this Government. This Government is already realising significant savings from procurement reforms, including through establishment of whole‑of‑government arrangements for air travel, major office machines and stationary and office supplies, advertising, as well as a range of ICT supplies including software, desktop computers and internet services and improved property management.
Savings from this measure will be redirected to support other Government priorities.
Social and Community Services — Equal Remuneration
The Government has committed to provide $2.1 billion over the phase‑in period for its share of funding for the costs to the non‑government Social and Community Services sector of an Equal Remuneration Order that may be granted by Fair Work Australia in response to the current pay equity claim on behalf of certain workers in the sector. This commitment reflects the Government's support for gender pay equity.
Funding for this measure has been included in the contingency reserve as Fair Work Australia has yet to table a decision.
The Government will work with the sector, and State and Territory Governments on appropriate funding mechanisms.
The estimates assume that pay rises and supplementation would begin from 1 December 2012 and continue until 1 December 2018. Included in the estimates is $1.2 million over 2 years from 2011‑12 for an information and education program to assist providers and employees with transition during the proposed implementation period.
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