The federal public service has been put on notice about living within its means, prompting fears of more job losses.
Treasurer Scott Morrison has warned governments need to adopt the same philosophy as businesses and households.
They shouldn't be given a "leave pass" not to drive the sort of innovation it is encouraging other industries to deliver, he says.
In the 2015/16 budget the government pledged to return the efficiency dividend to the base rate of one per cent from 2017/18, subject to ongoing monitoring.
But Mr Morrison's comments have unions worried.
The CPSU says previous efficiency dividends have contributed to the government cutting almost 18,000 positions since 2013.
The mid-year budget update last December imposed a separate three per cent efficiency target on cultural institutions, including the National Gallery and National Library.
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