Overview
- Jim Chalmers and Katy Gallagher confirmed agencies have been asked to identify savings of up to 5% but stressed this is a reprioritisation exercise, not a directive to cut staff or budgets by that amount.
- Chalmers said the government is not seeking the large-scale job losses proposed by the opposition, while leaving open the possibility of smaller reductions.
- The government has not specified the timing of any savings, and Gallagher did not confirm an Australian Financial Review report that the target could be applied within a single year.
- The CPSU and independent senator David Pocock warned the plan would translate into job losses and harm smaller or specialised bodies, citing agencies such as the AFP, CSIRO and national cultural institutions.
- The existing 1% annual efficiency dividend remains in place with some exemptions, and CSIRO has separately announced about 350 research roles will go due to funding pressures.