Budget to slash bureaucracy
Joe Hockey will be slashing dozens of departmental agencies on budget night in a further attempt to streamline government.
Described as the fourth phase of its smaller government program, the treasurer will argue the government shouldn’t duplicate what can be done by the private sector or double up on roles that may be done in other agencies and organisations.
Assistant Treasurer Josh Frydenberg says there was a “toxic increase” in government under Labor.
“When the commission of audit came down last year they said they couldn’t even count the number of agencies and committees,” he told Sky News on Monday.
The Defence Materiel Organisation will be absorbed into the defence department, with further cuts to the health and education departments.
Tuesday’s budget will also include the sale of the Australian Rail Track Corporation. But the Royal Australian Mint and Defence Housing Australia are expected to remain in the hands of government.
Finance Minister Mathias Cormann says the measures are about making sure waste and duplication are eliminated.
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The changes would save about $450 million but are part of what he described as a “rolling reform” which has so far saved $1.4 billion.
“It’s really all about ensuring that the taxpayer gets best value for money,” Senator Cormann said.
The government is also expected to sell some landmark properties in Canberra.
Earlier this year Senator Cormann commissioned scoping studies into the sale of a number properties, including those housing the departments of Treasury and Finance.
