1996-1997
Variations Affecting Most Programmes
The 1996-97 Portfolio Budget Statements, informs Senators and Members of Parliament of the proposed allocation of resources to portfolios outcomes and their objectives and targets including the agencies within the Health and Family Services portfolio.
Application of Efficiency Dividend to Commonwealth Own Purpose Outlays and Specific Purpose Payments of a Running Costs Nature
An efficiency dividend equivalent to that being applied to running costs has been applied to Commonwealth Own Purpose Outlays (COPOs) and Specific Purpose Payments (SPPs) which are of a running costs nature, but which have not been previously required to provide an efficiency dividend. This applies the same efficiency incentives to these elements of outlays as have been applied to other operating costs expenditure.
The efficiency dividend is set at three percent in the first year with an annual one percent efficiency dividend applied cumulatively thereafter. Any COPO or SPP which has been the subject of savings which are equivalent to, or exceed, the level of the efficiency dividend has been excluded from these arrangements.
The new arrangements apply from 1 July 1996, but implementation will be delayed where commitments or agreements have been entered into. In these cases, the new arrangements will apply as soon as practicable.
In recognition of the Government's role of national leadership in medical research, no efficiency dividend will be taken from medical research funding. Hospital funding under the Medicare Agreements has also been exempt at this time. In relation to the latter, it is expected that efficiency gains in the public hospital sector will be determined in the context of renegotiation of the Medicare Agreements before 1 July 1998.
The effect of this change is shown at the Sub-Programme level with the total effect on the portfolio being:
1996-97 $m | 1997-98 $m | 1998-99 $m | 1999-00 $m |
-26.6 | -46.5 | -60.7 | -76.8 |
Other measures are described under the relevant programme in the Programme Analysis section.
Reduction in Running Costs
Across-the-Board Reduction of 2% in Running Costs
Running costs for departments and agencies have been reduced by two percent from 1996-97. This reduction is in addition to the existing annual one percent efficiency dividend which is applied to running costs.The operating expenses component of budget funding for statutory bodies that do not operate on the Public Account has also been reduced by two percent from 1996-97. Bodies are expected to make the reduction in their operating costs rather than in other expenditure.
In the Portfolio Budget Statements for this portfolio, the effects of this decision are shown at the sub-program level. The effects on portfolio agencies are estimated below:
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| 1996-97 $m | 1997-98 $m | 1998-99 $m | 1999-00 $m |
Department | -4.83 | -4.88 | -4.98 | -5.11 |
Australia New Zealand Food Authority | -0.14 | -0.15 | -0.08 | -0.09 |
Therapeutic Goods Administration | -0.39 | -0.39 | -0.40 | -0.40 |
Australian Hearing Services | -1.32 | -1.35 | -1.38 | -1.40 |
Nuclear Safety Bureau | -0.02 | -0.02 | -0.02 | -0.02 |
Australian Institute of Health & Welfare | -0.14 | -0.14 | -0.14 | -0.14 |
Australian Institute of Family Studies | -0.06 | -0.06 | -0.06 | -0.06 |
Professional Services Review Scheme | -0.03 | 0.00 | 0.00 | 0.00 |
Health Insurance Commission | -5.56 | -5.58 | -5.77 | -6.02 |
Health & Community Services Ministerial Council | -0.02 | -0.02 | -0.02 | -0.02 |
Commonwealth Rehabilitation Service | -1.91 | -1.91 | -1.92 | -1.93 |
Portfolio | -14.42 | -14.50 | -14.78 | -15.19 |
Whole of Government Telecommunications Savings Initiatives
Running Costs for departments and agencies have been reduced by estimated minimum savings expected to be generated by Whole of Government initiatives in telecommunications purchasing, Wide Area Voice networks and Wide Area Data networks. The operating expenses component of budget funding for statutory bodies that do not operate on the Public Account has also been reduced by estimates based on the same approach. 1996-97 $m | 1997-98 $m | 1998-99 $m | 1999-00 $m |
-0.39 | -0.92 | -1.12 | -1.22 |
Transfers and Increases in Protection for Ministers and Holders of High Office Funds have been transferred to the Attorney General's Department to provide improved Ministerial security
1996-97 $m | 1997-98 $m | 1998-99 $m | 1999-00 $m |
-0.03 | -0.03 | -0.03 | -0.03 |
Reallocation of Funding for Administration of Re-opening Transfers from Commonwealth Superannuation Scheme to Public Sector Superannuation Scheme
Departments have been attributed a share of the cost of administration, publicity and counselling associated with the re-opening of the option for Commonwealth Superannuation Scheme (CSS) members to transfer to the Public Sector Superannuation (PSS) Scheme. Costs have been attributed on the basis of the number of CSS members in each Department. 1996-97 $m | 1997-98 $m | 1998-99 $m | 1999-00 $m |
-0.15 | 0.00 | 0.00 | 0.00 |
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