Our response to the National Commission of Audit report
JOINT MEDIA RELEASE
Hon J.B. Hockey
Treasurer
Senator the Hon. Mathias Cormann
Minister for Finance
The National Commission of Audit report released earlier this month shows that the spending trajectory we inherited from Labor is unsustainable and needs to be addressed.
After the last election we inherited $123 billion in projected deficits with Government debt heading for $667 billion.
The 2014-15 Budget contains the structural reforms to address this and put Australia on a believable path to surplus.
The National Commission of Audit identified opportunities for structural reforms needed to ensure Government lives within its means.
The National Commission of Audit was an important input to the Government’s considerations and many of the policy issues raised in the National Commission of Audit have been considered by Government when preparing the 2014-15 Budget.
The attached table outlines our response to each of the Commission’s recommendations, including those that will be considered after the Budget or through other processes.
We will continue to methodically consider and review the issues raised in the National Commission of Audit report that are not addressed in the 2014-15 Budget.
Our efforts to repair the Budget are a critical part of our Economic Action Strategy to build a stronger, prosperous economy and a safe and secure Australia.
The National Commission of Audit report is available online at www.ncoa.gov.au.
Treasurer - Gemma Daley - 0418 148 821
Minister Cormann - Karen Wu - 0428 350 139
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2014 COMMISSION OF AUDIT RECOMMENDATIONS - Phase 1 |
Status |
|---|---|
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1. Fiscal Framework and Rules |
The Government's fiscal strategy is in the 2014-15 Budget |
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2. Reporting against fiscal rules |
Reporting against fiscal rules will be considered following the 2014-15 Budget |
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3. Better Balance Sheet Management - Unfunded Super |
Structural reforms to manage unfunded superannuation liabilities are in the 2014-15 Budget |
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4. Better Balance Sheet Management - Loans and Guarantees |
The approach to loans and guarantees has been improved in the 2014-15 Budget |
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5. Better Balance Sheet Management - Equity Investments |
Balance sheet equity investment issues will be considered following the 2014-15 Budget |
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6. Budget Reporting and Charter of Budget Honesty |
Improvements to budget reporting are included in the 2014-15 Budget |
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7 – 11. Reforming the Federation |
Reforms to the Federation will be considered in the Federation White Paper |
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12. Age Pension – Establishing a new benchmark |
Structural reforms to the Age Pension commencing in 2017-18 are in the 2014-15 Budget |
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13. Age Pension- Tighter targeting of eligibility |
Structural reforms to the Age Pension commencing in 2017-18 are in the 2014-15 Budget |
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14. Superannuation preservation age |
The superannuation system is being considered by the Financial Systems Inquiry and will be considered by the Tax White Paper process. |
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15. CSHC |
Reforms to the CSHC are in the 2014-15 Budget |
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16. NDIS |
The Government remains committed to the National Disability Insurance Scheme. The independent board of the National Disability Insurance Agency has commissioned work on the optimal rollout which will be available following the 2014-15 Budget |
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17. Short to medium term health reforms |
Structural reforms to Health are in the 2014-15 Budget |
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18. A pathway to reforming health care |
Further Health reforms will be considered following the 2014-15 Budget |
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19. PBS |
Initial structural reforms to the PBS are in the 2014-15 Budget, with other reforms to be considered following the Budget |
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20. FTB |
Structural changes to the Family Tax Benefit system are in the 2014-15 Budget |
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21. PPL |
The PPL will be implemented from 1 July 2015 as per the Government’s policy. |
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22. Childcare |
Childcare reforms will be considered following the Productivity Commission Review of Childcare |
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23. Schools |
Schools Funding arrangements will be further considered in the Federation White Paper |
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24. Defence |
Defence reforms will be further considered in the First Principles Review of Defence. |
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25. Aged Care |
Reforms to Aged Care arrangements are in the 2014-15 Budget |
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26. Carer Payments |
Reforms to Carer arrangements will be considered following the welfare review. |
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27. Unemployment benefits |
Reforms to Unemployment Benefits are in the 2014-15 Budget |
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28. Minimum Wage |
Issues around the Minimum Wage will be considered following the 2014-15 Budget |
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29. DSP |
Reforms to the DSP are in the 2014-15 Budget |
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30. Higher Education |
Reforms to Higher Education are in the 2014-15 Budget |
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31. Reforming Foreign Aid |
Reforms to Foreign Aid are in the 2014-15 Budget |
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32. Industry Assistance |
Reforms to Industry Assistance are in the 2014-15 Budget |
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33. Assistance to Exporters |
Reforms to Assistance to Exporters will be considered following the 2014-15 Budget |
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34. Research and Development |
Initial reforms to the Research and Development are in the 2014-15 Budget, with other reforms to be considered following the Budget including through the Tax White Paper |
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35. Indigenous Programs |
Initial reforms to Indigenous Programs are in the 2014-15 Budget, with further reforms to be considered following the Budget along with the Forrest Review |
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36. Resourcing Diplomacy and Consular Activities |
Initial reforms to diplomacy and consular activities are in the 2014-15 Budget, with other reforms to be considered following the Budget |
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37. Drought Assistance |
Government support to drought affected farmers is in the 2014-15 Budget |
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38. Housing Assistance |
Reforms to housing assistance are in the 2014-15 Budget |
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39. Vocational Education and Training |
Reforms to Vocational Education and Training are in the 2014-15 Budget |
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40. Mental Health |
Mental Health reforms will be considered in the Mental Health Review |
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41. Natural Disaster Relief |
Initial reforms to Disaster Relief are in the 2014-15 Budget, with further reforms to be considered following the Budget |
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42. Community Investment Programme |
Reforms to Community Development Programmes will be considered in the Federation White Paper |
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43. Visa Processing |
Reforms to Visa processing will be considered following the 2014-15 Budget |
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44. Employment Services |
Reforms to employment services are in the 2014-15 Budget |
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45. Efficiency of Public Broadcasters |
Efficiency reforms for public broadcasters are in the 2014-15 Budget |
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46. Containing IMA costs |
Reforms to IMA costs are in the 2014-15 Budget |
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47. Fair Work Entitlements |
Reforms to Fair Work Entitlements are in the 2014-15 Budget |
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48. Medical Indemnity |
Reforms to Medical Indemnity will be considered following the 2014-15 Budget |
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49. Grant Programmes |
Initial reforms to the Grant Programmes are in the 2014-15 Budget with further reforms to be considered following the Budget. |
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50. Reduce Number of Government Bodies |
Initial reforms to reduce Government bodies are in the 2014-15 Budget, with further reforms to be considered following the Budget |
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51. Consolidation of Border Protection Services |
Consolidation of Border Protection Services is in the 2014-15 Budget |
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52. Consolidated Crime Intelligence Capability |
Consolidation of crime intelligence capabilities will be considered following the 2014-15 Budget |
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53. Consolidate Health Bodies |
Consolidation of Health Bodies is in the 2014-15 Budget |
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54. Single civilian merits review tribunal |
Single civilian merits review tribunal is in the 2014-15 Budget |
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55. A central register and new guidelines for establishing bodies |
A central register and new guidelines for establishing bodies will be considered following the 2014-15 Budget |
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56. Reduce number of boards, committees and councils |
Initial reforms to reduce the number of boards, committees and councils are in the 2014-15 Budget, with further reforms to be considered following the Budget |
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57. Privatisations |
Scoping studies for further privatisations are included in the 2014-15 Budget |
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58. Management of the Commonwealth Estate |
Reforms to the Management of the Commonwealth Estate are in the 2014-15 Budget |
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59. Outsourcing, competitive tendering and procurement |
Further reforms to outsourcing, competitive tendering and procurement will be considered following the 2014-15 Budget |
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60. Outsourcing of DHS payments system |
Options for major Commonwealth payments systems will be considered following the 2014-15 Budget |
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61. Data |
Data reforms will be considered following the 2014-15 Budget |
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62. e-Government |
e-Government reforms will be considered following the 2014-15 Budget |
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63. Cloud Computing |
Cloud Computing reforms will be considered following the 2014-15 Budget |
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64. Corporate Services and Systems |
Initial reforms to Corporate services are in the 2014-15 Budget, with other reforms to be considered following the Budget |
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2014 COMMISSION OF AUDIT RECOMMENDATIONS - Phase 2 |
Status |
|---|---|
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1. Improved management of Commonwealth Infrastructure |
Reforms to internal management of Commonwealth property were agreed as part of the 2014-15 Budget considerations |
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2. Commonwealth Investment in Infrastructure |
Major Infrastructure, alternative financing and asset recycling initiatives are in the 2014-15 Budget |
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3. Road User Charging |
Some projects with road user charging are in the 2014-15 Budget, further road user charging reforms will be considered following the Productivity Commission Review |
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4. Improving National Transport Regulation |
Reforms to national transport regulation will be considered following the 2014-15 Budget |
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5. Infrastructure Funding for the States and Local Governments |
Funding mechanisms for States and Local Governments will be considered in the Federation White Paper |
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6. Role of the APSC |
The role of the APSC will be considered following the 2014-15 Budget |
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7. Public Sector Efficiency – Improved Spans of Control |
Further public sector efficiency measures will be considered following the 2014-15 Budget |
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8. Public Sector Efficiency – Corporate Services |
Further public sector efficiency measures will be considered following the 2014-15 Budget |
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9. Improving Information on Government Programmes and Public Sector Performance |
Information on Government performance on Government programmes will be considered following the 2014-15 Budget |
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10. Programme Evaluation – Systematic Review as part of the Budget Process |
Reforms to programme evaluation will be considered following the 2014-15 Budget |
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11. Programme Evaluation – Rolling Strategic Reviews of Major Spending Programmes |
Reforms to programme evaluation will be considered following the 2014-15 Budget |
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12. Performance Evaluation – Rolling ‘Audits’ of Agencies |
Reforms to programme evaluation will be considered following the 2014-15 Budget |
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13. Clearer Delineation between Policy and Service Delivery |
The relationship between policy and service delivery will be considered following the 2014-15 Budget |
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14. Reduce the Number of Non-Principal Government Bodies |
Initial reforms to reduce the number of non-principal government bodies are in the 2014-15 Budget, with further reforms to be considered following the Budget |
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15. Further Action on Principal Government Bodies |
Initial reforms to reduce the number of non-principal government bodies are in the 2014-15 Budget, with further reforms to be considered following the Budget |
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16. Commonwealth Grant Programmes |
Initial reforms to grants are in the 2014-15 Budget, with further reforms to be considered following the Budget |
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17. Parenting Payment Single – Establishing a New Benchmark |
Reforms to parenting payments are in the 2014-15 Budget |
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18. Better Targeting Assistance to Students |
Reforms to student assistance are in the 2014-15 Budget |
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19. Better Aligning Working-Age Payments |
Alignment of working-age payment will be considered following the welfare review |
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20. Reforming Education Supplements |
Reforms to the education supplement are in the 2014-15 Budget |
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21. Housing Help for Seniors |
Reforms to housing help for seniors is in the 2014-15 Budget |
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22. Payments to Local Government |
Payment to local governments will be considered in the Federation White Paper |