Budget to include government garage sale

The budget will contain the closure of dozens of agencies, property sales and potential privatisations down the track.

Australian Federal Treasurer Joe Hockey.

Treasurer Joe Hockey (AAP)

The Abbott government is holding a garage sale of sorts as it tries to balance the books.

It will be slashing almost three dozen agencies while undertaking a sweeping review of departments as part of its continual efficiency drive.

Described as the fourth phase of its smaller government program, Treasurer Joe Hockey will argue in Tuesday's budget the government shouldn't be seeking to duplicate what can be done by the private sector or doubling up on roles that may be done in other agencies and organisations.

"It's really all about ensuring that the taxpayer gets best value for money," Finance Minister Mathias Cormann said on Monday.

Other savings will come from efficiencies in the departments of Health, Education, Attorney-General's and Immigration.

The changes will save about $450 million, but are part of what Senator Cormann described as a "rolling reform" that so far has saved $1.4 billion.

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 said.

But opposition finance spokesman Tony Burke said the government must show the public service cuts do not negatively affect the ability of any agency to perform its tasks.

It must also demonstrate any privatisation of public assets represents value for money to taxpayers.

Opposition Leader Bill Shorten questioned the government's election promise of creating one million new jobs.

"Its only plan to deal with unemployment is create more unemployment ... by cutting thousands of public service jobs," he told reporters in Canberra.

While the government won't proceed with the privatisation of Defence House Australia and Royal Mint Australia as previously suggested, it will be consulting further on the possible sale of Australian Hearing.

It is also undertaking a scoping study into the potential sale of Australian Rail Track Corporation.

At the same time, the government is selling four properties within the prestige parliamentary triangle, but the buildings that house the departments of Treasury and Finance will stay in public hands for now.


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Source: AAP


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