Australian Government, 2013-14 Budget

Part 2: Expense Measures (Continued)

Cross Portfolio

Improving Government Efficiency — Better Procurement Price Outcomes

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Department of Finance and Deregulation 0.2 0.4 1.1 1.1
Various Agencies ‑15.7 ‑18.1 ‑9.2
Total — Expense 0.2 ‑15.4 ‑17.0 ‑8.1
Department of Finance and Deregulation 3.8 3.7
Various Agencies
Total — Capital 3.8 3.7

The Government will achieve net savings of $68.4 million over four years through better procurement pricing outcomes for public sector agencies. This measure expands the Government's online procurement system (AusTender) to support agencies' online tendering and purchasing activities associated with panels and multi‑use lists, including co‑operative arrangements. This will reduce the contract management overheads for suppliers and government in undertaking these procurements, and in turn lead to improved supplier pricing. Funding for implementation includes operating funding of $2.8 million over four years, capital funding of $3.8 million in 2013‑14 and $3.7 million in 2014‑15.

A portion of the net savings ($13.4 million in 2015‑16 and $22.3 million a year from 2016‑17) contributes towards the cross portfolio savings measure Targeted Savings — public service efficiencies published in the Mid‑Year Economic and Fiscal Outlook 2012‑13.

Public Service efficiencies

Expense ($m)
  2012-13 2013-14 2014-15 2015-16 2016-17
Various Agencies ‑20.0 ‑41.1 ‑71.0 ‑94.9

The Government will achieve savings of $226.8 million over four years through new and amended operational efficiencies across the Australian Public Service.

Savings of $148.4 million over four years will be achieved by implementing more efficient management structures in the Australian Public Service, through a reduction in expenditure on staff across the Executive Level (EL) 1 and 2, and Senior Executive Service (SES) levels. Further whole of government savings of $63.8 million over four years will be achieved through revising down the occupational density target for all new leases, buildings and major fit‑outs undertaken by agencies subject to the Financial Management and Accountability Act 1997 from 16 square metres per occupied workpoint down to 14 square metres. These savings have been reflected in the contingency reserve, pending determination of the final allocation of savings across agencies.

Savings of $14.6 million over four years will also be achieved from the rationalisation of corporate functions resulting from the transfer of the functions of the former Department of Climate Change and Energy Efficiency to the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education and the Department of Resources, Energy and Tourism.

These initiatives, alongside the Improving Government Efficiency — Better Procurement Price Outcomes, and Australian Government Grants System in the Finance and Deregulation portfolio, continue the Government's commitment to increasing efficiency in the way the public service operates.

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