The Government has also released the Review of the Measures of Agency Efficiency report, the central recommendation of which- to apply the efficiency dividend at portfolio level – will be adopted by the Government.


“The Government acknowledges that some agencies have been concerned about the current efficiency dividend having an unequal effect on some agencies. Adopting this recommendation will provide portfolios with more flexibility in applying the efficiency dividend, including to smaller agencies,” Senator Wong said.


The Review was commissioned following the release of the Ahead of the Game: Blueprint for Reform of Australian Government Administration report. The purpose of the Review was to investigate the current efficiency dividend mechanism and scope alternative ways of driving efficiencies in the public service.


Findings of the review include:

  • Although agencies had some concerns about the efficiency dividend they recognised it was a mechanism that is necessary to drive efficiencies.
  • Agencies that participated in the Review could not identify a viable alternative to the efficiency dividend that achieved the same savings. Alternative mechanisms put forward did not receive consensus agreement, nor were they cost neutral.  
  • It is important to develop and promote a long term efficiency agenda for the Australian Government.


The Report of the Review of the Measures of Agency Efficiency is at