Joint Media Release

Our response to the National Commission of Audit report

MC 46/14

Hon J.B. Hockey
Treasurer

 

Senator the Hon. Mathias Cormann
Minister for Finance

13 May 2014

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.

[ENDS]

Media Contact(s): 

Treasurer - Gemma Daley - 0418 148 821
Minister Cormann - Karen Wu - 0428 350 139


2014 COMMISSION OF AUDIT RECOMMENDATIONS - Phase 1

Status

1. Fiscal Framework and Rules

The Government's fiscal strategy is in the 2014-15 Budget

2. Reporting against fiscal rules

Reporting against fiscal rules will be considered following the 2014-15 Budget

3. Better Balance Sheet Management - Unfunded Super

Structural reforms to manage unfunded superannuation liabilities are in the 2014-15 Budget

4. Better Balance Sheet Management - Loans and Guarantees

The approach to loans and guarantees has been improved in the 2014-15 Budget

5. Better Balance Sheet Management - Equity Investments

Balance sheet equity investment issues will be considered following the 2014-15 Budget

6. Budget Reporting and Charter of Budget Honesty

Improvements to budget reporting are included in the 2014-15 Budget

7 – 11. Reforming the Federation

Reforms to the Federation will be considered in the Federation White Paper

12. Age Pension – Establishing a new benchmark

Structural reforms to the Age Pension commencing in 2017-18 are in the 2014-15  Budget

13. Age Pension- Tighter targeting of eligibility

Structural reforms to the Age Pension commencing in 2017-18 are in the 2014-15  Budget

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.

15. CSHC

Reforms to the CSHC are in the 2014-15 Budget

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

17. Short to medium term health reforms

Structural reforms to Health are in the 2014-15 Budget

18. A pathway to reforming health care

Further Health reforms will be considered following the 2014-15 Budget

19. PBS

Initial structural reforms to the PBS are in the 2014-15 Budget, with other reforms to be considered following the Budget

20. FTB

Structural changes to the Family Tax Benefit system are in the 2014-15 Budget

21. PPL

The PPL will be implemented from 1 July 2015 as per the Government’s policy.

22. Childcare

Childcare reforms will be considered following the Productivity Commission Review of Childcare

23. Schools

Schools Funding arrangements will be further considered in the Federation White Paper

24. Defence

Defence reforms will be further considered in the First Principles Review of Defence.

25. Aged Care

Reforms to Aged Care arrangements are in the 2014-15 Budget

26. Carer Payments

Reforms to Carer arrangements will be considered following the welfare review.

27. Unemployment benefits

Reforms to Unemployment Benefits are in the 2014-15 Budget

28. Minimum Wage

Issues around the Minimum Wage will be considered following the 2014-15 Budget

29.  DSP

Reforms to the DSP are in the 2014-15 Budget

30. Higher Education

Reforms to Higher Education are in the 2014-15 Budget

31. Reforming Foreign Aid

Reforms to Foreign Aid are in the 2014-15 Budget

32. Industry Assistance

Reforms to Industry Assistance are in the 2014-15 Budget

33. Assistance to Exporters

Reforms to Assistance to Exporters will be considered following the 2014-15 Budget

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

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

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

37. Drought Assistance

Government support to drought affected farmers is in the 2014-15 Budget

38. Housing Assistance

Reforms to housing assistance are in the 2014-15 Budget

39. Vocational Education and Training

Reforms to Vocational Education and Training are in the 2014-15 Budget

40. Mental Health

Mental Health reforms will be considered in the Mental Health Review

41. Natural Disaster Relief

Initial reforms to Disaster Relief are in the 2014-15 Budget, with further reforms to be considered following the Budget

42. Community Investment Programme

Reforms to Community Development Programmes will be considered in the Federation White Paper

43. Visa Processing

Reforms to Visa processing will be considered following the 2014-15 Budget

44. Employment Services

Reforms to employment services are in the 2014-15 Budget

45. Efficiency of Public Broadcasters

Efficiency reforms for public broadcasters are in the 2014-15 Budget

46. Containing IMA costs

Reforms to IMA costs are in the 2014-15 Budget

47. Fair Work Entitlements

Reforms to Fair Work Entitlements are in the 2014-15 Budget

48. Medical Indemnity

Reforms to Medical Indemnity will be considered following the 2014-15 Budget

49. Grant Programmes

Initial reforms to the Grant Programmes are in the 2014-15 Budget with further reforms to be considered following the Budget.

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

51. Consolidation of Border Protection Services

Consolidation of Border Protection Services is in the 2014-15 Budget

52. Consolidated Crime Intelligence Capability

Consolidation of crime intelligence capabilities will be considered following the 2014-15 Budget

53. Consolidate Health Bodies

Consolidation of Health Bodies is in the 2014-15 Budget

54. Single civilian merits review tribunal

Single civilian merits review tribunal is in the 2014-15 Budget

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

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

57. Privatisations

Scoping studies for further privatisations are included in the 2014-15 Budget

58. Management of the Commonwealth Estate

Reforms to the Management of the Commonwealth Estate are in the 2014-15 Budget

59. Outsourcing, competitive tendering and procurement

Further reforms to outsourcing, competitive tendering and procurement will be considered following the 2014-15 Budget

60. Outsourcing of DHS payments system

Options for major Commonwealth payments systems will be considered following the 2014-15 Budget

61. Data

Data reforms will be considered following the 2014-15 Budget

62. e-Government

e-Government reforms will be considered following the 2014-15 Budget

63. Cloud Computing

Cloud Computing reforms will be considered following the 2014-15 Budget

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

 

2014 COMMISSION OF AUDIT RECOMMENDATIONS - Phase 2

Status

1. Improved management of Commonwealth Infrastructure

Reforms to internal management of Commonwealth property were agreed as part of the 2014-15 Budget considerations

2. Commonwealth Investment in Infrastructure

Major Infrastructure, alternative financing and asset recycling initiatives are in the 2014-15 Budget

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

4. Improving National Transport Regulation

Reforms to national transport regulation will be considered following the 2014-15 Budget

5. Infrastructure Funding for the States and Local Governments

Funding mechanisms for States and Local Governments will be considered in the Federation White Paper

6. Role of the APSC

The role of the APSC will be considered following the 2014-15 Budget

7. Public Sector Efficiency – Improved Spans of Control

Further public sector efficiency measures will be considered following the 2014-15 Budget

8. Public Sector Efficiency – Corporate Services

Further public sector efficiency measures will be considered following the 2014-15 Budget

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

10. Programme Evaluation – Systematic Review as part of the Budget Process

Reforms to programme evaluation will be considered following the 2014-15 Budget

11. Programme Evaluation – Rolling Strategic Reviews of Major Spending Programmes

Reforms to programme evaluation will be considered following the 2014-15 Budget

12. Performance Evaluation – Rolling ‘Audits’ of Agencies

Reforms to programme evaluation will be considered following the 2014-15 Budget

13. Clearer Delineation between Policy and Service Delivery

The relationship between policy and service delivery will be considered following the 2014-15 Budget

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

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

16. Commonwealth Grant Programmes

Initial reforms to grants are in the 2014-15 Budget, with further reforms to be considered following the Budget

17. Parenting Payment Single – Establishing a New Benchmark

Reforms to parenting payments are in the 2014-15 Budget

18. Better Targeting Assistance to Students

Reforms to student assistance are in the 2014-15 Budget

19. Better Aligning Working-Age Payments

Alignment of working-age payment will be considered following the welfare review

20. Reforming Education Supplements

Reforms to the education supplement are in the 2014-15 Budget

21. Housing Help for Seniors

Reforms to housing help for seniors is in the 2014-15 Budget

22. Payments to Local Government

Payment to local governments will be considered in the Federation White Paper