Finance Minister Katy Gallagher has confirmed that the federal government has asked departments and agencies to find further efficiencies, a move that has sparked warnings of job losses. Senator Gallagher said she has asked senior bureaucrats to search for 'things we don't need to continue doing' as part of a re-prioritisation effort.
While Senator Gallagher denied the request amounts to a cut, she did not dispute a report that the public service would need to find savings of up to 5 per cent in a single year. 'The budget is in deficit. We have a lot of pressures on it. We can't just keep adding on to everything,' she said.
Labor campaigned against the Coalition's plan to cut 41,000 public service jobs at the last election, arguing that the increase in headcount was necessary to clear backlogs and reduce reliance on consultants. However, the Albanese government has retained the Coalition's efficiency dividend, requiring most agencies to find annual savings of 1 per cent.
Independent Senator David Pocock warned the move could have 'catastrophic impacts on smaller agencies from the AFP to CSIRO to our national cultural institutions'. In response, Senator Gallagher noted that national cultural institutions have been exempted from the current efficiency dividend and that the government is 'not looking to' reduce the total average staffing level in the Australian Public Service.
Liberal finance spokesperson James Paterson said the admission amounts to a Labor plan to cut 22,500 public servants unless offsetting savings are found. Senator Gallagher has not confirmed the timeline for the 5 per cent saving, but the Australian Financial Review reported it would apply within a year.
