Senate Rural and Regional Affairs and Transport Legislation Committee, , 18:15 to 21:13
Officials explain the 5% deprioritization process and election commitment savings targets, including potential impacts on policy decisions and departmental funding.
Topics: Government spending, Efficiency dividend
Speakers: Speaker 3, Speaker 5, Matthew Gson, Tess Bishop, Mr. Matthew Gson, Ms. Tess Bishop
dividends in 2526 so 26 27
>> senator if I might I I'll pass to Miss Bishop or her team to answer but um I think we're conflating a few different processes so there's the 1% efficiency dividend there's the government savings target which was applied to all government departments which was an election commitment that was applied as at myo uh and then there is um the usual sort of budget discipline applied through the offset requirements in the B paws. Uh and then we have the 5% dep prioritization process. So I just want to be clear about what we're discussing
on specifically mentioning just before we had estimates in December. Uh the treasurer was quoted and there was lots of reporting about the potential need for a 5% efficiency dividend in 2627. So have you received correspondence from the department of finance about an efficiency dividend for 2627?
No, Senator, we've not received further correspondence on the 5% process.
>> I didn't ask about that. I just asked about have you received correspondence about an efficiency dividend for next
financial year? >> So the 1% process is built into budgeting as far as I understand. >> Correct. >> Um correspondence about the 5% related to the dep prioritization process and that was provided to ministers. Um the savings target um was an election commitment and we did receive a proportion of that savings target to apply to our department. Um >> so how much was that?
>> Uh uh it is 15.4 in the current year is disclosed senator in the portfolio
>> 15.4 million >> uh in the current year >> and the 5% process what's that
>> the 5% process has not led to any decisions at this point in time. It's being um considered by government. So
we've put forward >> when does that kick in?
>> Uh I understand it's being considered in the budget context, Senator. >> Okay. So for next financial year, >> it's not it's not necessarily a 5% savings target over the top. It is consideration by government about priorities that add up to effectively 5% of the portfolio >> across the whole of government or across your portfolio. >> Every portfolio I understand was asked to participate in the process. We did but that no decisions have been made
flowing out of that uh consideration. Um so uh to meet a 5% dep prioritization would you have to engage in redundancies
of start? >> It would entirely depend senator on um the the decisions of government. So no uh is the starting proposition um the sorts of things we would put forward would be policy decisions and then if funding was withdrawn for certain activities that may have an impact on staffing but there's a range of other
ways to save money. >> So you can't rule that out at this stage. Okay. No. >> All right. Um uh just moving on I now looking at page 12 um table 1.1 of the PAE um just asking the 12 million additional appropriation departmental appropriation in that table for this financial year.