Public Sector Savings Hit $13 Billion

13 July 2012

Over $13 billion in public sector savings have been achieved since Labor came to government in 2007, with more efficiency measures still to take effect.
Minister for Finance and Deregulation Senator Penny Wong today released a report card on the efficiencies and savings that have been found in the public sector through new and improved government practices.
Savings have been driven by major reform to areas of government including travel, property management and ICT. They include:
  • Over $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;
  • Spending $100 million a year less, for four years in a row, than the Howard Governments 2007 campaign advertising spend of $254 million; and,
  • $204 million less from 2009-10 to 2015-16 through a new Commonwealth Property Management Framework.
The Gillard Government will continue to look for more innovative and efficient ways of delivering essential government services, while delivering value for money to taxpayers.
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.
This will deliver savings in the future and ensure all government agencies can expect consistent services and pricing.
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 efficiencies the Gillard Government is making are important decisions that contribute to the fiscal sustainability of government finances, and the effectiveness of the public service into the future.
The publication can be accessed at http://www.financeminister.gov.au/publications/index.html