Skip to content Skip to menu
Australian Government Coat of Arms

Budget | 2014-15

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

Part 2: Expense Measures (continued)

Cross Portfolio

Administered Programme Indexation Pause

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Various Agencies ‑15.1 ‑34.1 ‑54.9 ‑60.9

The Government will achieve savings of $165.0 million over four years through pausing the indexation of 112 administered programmes. The pause to indexation will apply for three years, commencing from 1 July 2014 or 1 July 2015 depending on the circumstances of the individual programme.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Efficiency Dividend — a further temporary increase of 0.25 per cent

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Various Agencies ‑60.5 ‑118.2 ‑181.1 ‑184.7
Related capital ($m)
Various Agencies ‑2.6 ‑5.4 ‑8.2 ‑8.6

The Government will achieve savings of $569.0 million over four years (including $25.0 million in capital savings) by increasing the annual Efficiency Dividend by 0.25 per cent for the 2014‑15, 2015‑16 and 2016‑17 financial years, with savings to be targeted in areas such as reduced advertising, consultancy and travel costs and deregulation efficiencies.

This measure applies to all Australian Government entities, except those that have been specifically exempted by the Government.

This measure delivers on the Government's election commitment.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Parliamentarians and other public office holder salaries — freeze

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Various Agencies ‑5.0 ‑5.0 ‑5.0 ‑5.0

The Government has made a submission to the independent Remuneration Tribunal proposing to freeze the salaries and allowances of parliamentarians, departmental secretaries and all other public office holders at current levels for 12 months, over the period 1 July 2014 to 30 June 2015. The freeze will also apply to the pensions of former parliamentarians received under the closed Parliamentary Contributory Superannuation Scheme. Subject to a final determination by the Tribunal, this is expected to achieve savings of $20.0 million over four years.

A small loss of revenue associated with the resultant reduction in taxable income has been incorporated into the estimates.

Smaller Government — additional reductions in the number of Australian Government bodies

Expense ($m)
  2013-14 2014-15 2015-16 2016-17 2017-18
Various Agencies ‑0.4 ‑0.5 ‑6.4 ‑12.1

The Government will achieve savings of $19.4 million over four years from 2014‑15 by abolishing some government bodies and merging other government bodies to reduce duplication, improve coordination and increase efficiency in how public funds are used to deliver services to the community.

The Government will also implement the following reforms by 1 July 2015, to reduce the number of government bodies and the costs associated with separate governance arrangements:

  • merging ComSuper with the Commonwealth Superannuation Corporation, so that the management of Commonwealth superannuation schemes will be undertaken by one body;
  • merging the National Blood Authority with the Australian Organ and Tissue Donation and Transplantation Authority;
  • merging the Private Health Insurance Ombudsman into the Office of the Commonwealth Ombudsman;
  • ceasing the Private Health Insurance Administration Council as a separate body, with the merger of private health insurance price monitoring functions into the Australian Competition and Consumer Commission, and the merger of health fund prudential regulation functions to the Australian Prudential Regulation Authority;
  • ceasing the Corporations and Markets Advisory Committee (CAMAC) and the CAMAC Legal Committee;
  • ceasing the Albury‑Wodonga Development Corporation, with remaining property management functions consolidated into the Department of Finance;
  • winding up the Australian River Company Ltd;
  • rationalising committees within the Agriculture portfolio, including ceasing the Abalone Aquaculture Health Accreditation Working Group; merging the AQUAPLAN Working Group with the Aquaculture Committee; merging the Australian Weeds Committee, the Biosafety and Biosecurity Working Group and the Established Pests and Diseases Working Group with the National Biosecurity Committee; and ceasing the Grape and Wine Research and Development Selection Committee and the Wine Australia Corporation Selection Committee; and
  • ceasing the Prime Minister's Indigenous Business Policy Advisory Group, which has been superseded by the creation of the Prime Minister's Indigenous Advisory Council.

The Government will amalgamate all of the Commonwealth merits review tribunals with the exception of the Veterans Review Board, from 1 July 2015. The amalgamated body will take on the functions of the Administrative Appeals Tribunal, the Social Security Appeals Tribunal, the Refugee Review Tribunal and Migration Review Tribunal, and the Classification Review Board. Details of the new arrangements will be developed in consultation with key stakeholders.

In the second half of 2014 the Government will consider, in consultation with the States, further rationalisation of government bodies, including the potential merging of six health care bodies to create a Health Productivity and Performance Commission. As part of its deliberations the Government will take into account the findings of the National Commission of Audit.

See also the related measures titled 'Smaller Government' that include reforms to additional government bodies. Also see the measure 'Rebuilding General Practice Education and Training to deliver more GPs'.

Further information can be found in the press release of 8 November 2013 issued by the Prime Minister, and the press release of 13 May 2014 issued by the Minister for Finance and the joint press release issued by Minister for Health and Minister for Finance.