Efficiency Dividend And Staff Costs

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This November 2013 ministerial brief to the Finance Minister advised that an additional efficiency dividend would require approximately 4,800 public sector staff reductions across the Australian Government. The analysis was based on 2013-14 data showing that around 55% of departmental appropriations were spent on wages, salaries and superannuation, with the assumption that agencies would seek savings proportionally across these cost categories. The brief was prepared for the Minister by the Finance Department Secretary and circulated to senior departmental leadership including the Deputy Secretary responsible for implementation coordination.