The Federal Government has announced it will find $550 million in savings from pursuing efficiencies in the operation of the public service.


Special Minister of State, Gary Gray, was at pains to stress that the savings would not be found from targeting jobs, but would rather 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,” Mr Gray said in a statement.


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 service’s 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,” Mr Gray said.