Savings of $550 million over the forward estimates will be found through pursuing further efficiencies in the way the public service operates.
This saving will not come from targeting jobs. Instead, savings will be found through cutting unnecessary spending in the public service.
The Government has looked carefully at the spending of departments and agencies. From this financial year, departments will be required to find savings through a new targeted savings arrangement that reduces expenditure in non-staffing areas.
Savings across 2012-13 and each year of the forward estimates include:

• Nearly $30 million per year through across-the-board reductions in air travel spending, including restrictions on business class flights.
• Over $60 million in 2012-13 through reducing the public services reliance on external consultants and contractors instead utilising the broad range of skills we already have in the service.
• $2 million per year through moving recruitment advertising online in recognition that more people are now looking for jobs on the internet.
• Reducing printing costs by approximately five per cent through greater reliance on publishing online only, saving about $6 million per year.

To meet the $550 million reduction in expenditure, we will also be looking at further savings that build on these kinds of practical changes.
For example, we expect to save more than $6 million per year in future years from moving publishing online following a further examination of current printing and publication requirements. We will also look at purchasing more services on a whole-of-government basis, leveraging the Commonwealths significant purchasing power.
These measures build on Federal Labors strong record of driving efficiency in the public service.
More than $13 billion in public sector savings have been achieved by the Government since coming to office. We have reduced the wasteful spending on travel and advertising that took place in the past and we capped the senior executive service following the blow-out under the Howard Government.
Our methodical and responsible approach to finding savings in the public service is in stark contrast to the Liberals. State Liberal Premiers had the opportunity to progress considered savings, but instead chose to indiscriminately cut jobs.
We will always find new ways of delivering essential government services, while ensuring value for money to taxpayers and without targeting jobs.
The Department of Defence has been excluded from this arrangement. It also does not apply to the Departments of the Senate or the House of Representatives, reflecting the importance of the chamber departments in the functioning of the Federal Parliament.