Media Release

$72.3 Million in Savings Achieved Through Repeal Day Initiatives

MC 109/14

Senator the Hon. Mathias Cormann
Minister for Finance
Acting Assistant Treasurer

29 October 2014

The Government has delivered on its election promise to cut $1 billion in red and green tape each year with its second Repeal Day.

Finance alone has contributed $72.3 million in savings through red tape reduction.

Since 1 July 2014, Finance has introduced:

  • A simplified process for tendering contracts below $200,000, removing the need for businesses to seek external legal and other advice. This saved $45.3 million.
  • A streamlined low risk grant template which reduces the significant administration and legal costs associated with grant agreements. This saved $23 million.
  • A policy which makes credit and debit cards the Government's preferred payment option for purchases under $10,000, making it quicker and easier for small businesses to be paid. This saved $0.9 million.
  • A Defence Housing Australia exemption from Public Works Committee oversight and compliance burden for construction projects on non-Commonwealth land. This saved $3.1 million.

We are now actively reviewing procurement-connected policies. The National Commission of Audit recommended that these policies be abolished as they represent unnecessary green tape and can be an inefficient way of meeting broader policy objectives at high cost to business.

In October 2013, there were 24 procurement-connected policies. The Government has already removed six procurement-connected policies and is reviewing the continued operation of the remaining 18.

The Department of Finance remains committed to making it easier for businesses to supply their products and services to Government.

[ENDS]

Media Contact(s): 

Karen Wu – 0428 350 139