This presentation was made by Arthur Camilleri, Australia, at the 14th OECD-Asian Senior Budget Officials Meeting held in Bangkok, Thailand, on 13-14 December 2018

1. 1
Public Sector Transformation in Australia
14th Annual Meeting of the OECD Asian Senior Budget Officials
Session 2: Budget Management and Transformation
13 December 2018

2. 2
Source: Australian Government Budget Papers
The Australian Government Budget
Payments and receipts since 2007-08
21
22
23
24
25
26
27
21
22
23
24
25
26
27
% of GDP % of GDP
Receipts (as a % of GDP) Payments (as a % of GDP)

3. 3
Australia’s current public sector challenge
0.00
0.50
1.00
1.50
2.00
2.50
3.00
0.00
0.50
1.00
1.50
2.00
2.50
3.00
percent
percent
Efficiency Dividend 1987-88 to 2018-19
Ongoing and one-off rates
2008-09 Budget one-off ED 2011-12 MYEFO one-off ED
Base ED Ongoing ED
0.50%
0.55%
0.60%
0.65%
0.70%
0.75%
0.80%
0.85%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Departmental expenses as a percentage
of total Government expenses (a)(b) (LHS)
ASL as proportion of the Australian
population (c)(d) (RHS)

4. 4
APS Transformation and the Modernisation Fund
Transformation & Innovation
21 projects
$350 million
• Investment in initiatives which align with whole-
of-government priorities
• Maximising innovation and collaboration across
the APS
• Projects funded up to 2019-20, however are
expected to continue delivering and capturing
benefits beyond the forward years
• Investment in initiatives which improve the
sustainability of entities
• Supporting entities to transition to more
sustainable operating models while continuing
to deliver high quality services
Agency Sustainability
21 projects
$150 million
Modernisation Fund
$500 million
• Reinvestment of Efficiency Dividend savings
• Transform and modernise the public sector
• Deliver quality Government services at lower cost
and use leading technology and collaborative
approaches to address complex problems facing
society

5. 5
Making better use of data to inform decisions
Data Integration Partnership for Australia, $131 million over three years
Central
analytics
capability
Economic,
business and
industry
analytics
Environment
data analytics
Government
business
analytics
Social, health
and welfare
analytics
Agencies
provide data
for linking
Accredited
Integrating
Authorities
Enduring
integrated
longitudinal
data assets –
housed in a
secure
environment,
using privacy
preserving
linking methods
and best
practice
statistics to link
social policy
and business
data
The Government
Business Analytics
Unit in Finance will
undertake projects
that will support a
more efficient,
productive and
sustainable
public sector

6. 6
Modernising Budgeting Processes
Modernisation Fund project within Finance
The Shared Budget Workflow System (SBWS) will better support
government decision-making.
The current process relies heavily on:
• disparate processes and technologies across agencies,
• extensive use of manual processes, and
• informal communications, introducing risks to content and/or
process.
Extensive resources are required to quality assure content and
deliver information to Ministers.

7. 7
Modernising Budgeting Processes
Modernisation Fund project within Finance
New process will use an integrated system responsive to
changing needs.
• Facilitates information sharing, collaboration and record
keeping.
• Automation enhances efficiency in budget process.
• Data analytics and presentation tools embedded in the
system.
Key benefits:
• Releases resources for more value-adding functions.
• Allows more complex analysis to better inform policy advice.

8. 8
Investing in assets at a whole-of-government level
1. Develop a comprehensive 10 year picture of major
departmental investment needs
2. Look for opportunities to join-up investment
Prioritise investment needs against a set of
agreed whole-of-government criteria
3.
4. Present ‘package options’ to decision makers