Australian Government, 2011‑12 Budget

Part 2: Expense Measures (Continued)

Cross Portfolio

Coordinated Procurement Contracting — stationery and office supplies

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Various Agencies

The Government will introduce a coordinated procurement arrangement for its stationery and office supplies across Government agencies.

The purpose of the revised arrangement is to reduce whole of government procurement costs. Costs associated with the establishment and ongoing management of the arrangement will be recovered through an administration charge on agencies.

Under this arrangement, agencies will be able to retain savings in the order of $6.0 million per year for price and efficiency improvements. The arrangement is planned to commence from late 2011.

Efficiency dividend — temporary increase in the rate

Expense ($m)
2010‑11 2011‑12 2012‑13 2013‑14 2014‑15
Various Agencies ‑119.6 ‑238.5 ‑294.0 ‑351.3
Related capital ($m)
Various Agencies ‑6.4 ‑12.0 ‑15.0 ‑19.8

The Government will deliver savings of $1.1 billion over four years by increasing the rate of the efficiency dividend to 1.5 per cent in 2011‑12 and 2012‑13, and 1.25 per cent in 2013‑14 and 2014‑15, before reverting back to 1 per cent in 2015‑16.

The efficiency dividend applies to the operational funding of all Australian Government entities, except those that have been specifically exempted by Government. This measure will reduce the level of funding provided to public sector entities to ensure that benefits achieved through efficiency gains are returned to the Budget.

In response to the Review of the Measures of Agency Efficiency, the Government has also increased the flexibility of the efficiency dividend by allowing portfolio Ministers to reallocate the application of the efficiency dividend between entities, particularly small agencies, within their portfolio.

Savings from this measure will be redirected to support other Government priorities.

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