Efficiency dividend
In today's world, Efficiency dividend has acquired unprecedented relevance, becoming a topic of interest to a wide range of people and disciplines. Whether it is Efficiency dividend as a prominent figure in history, as a key concept in a field of study, or as a significant event today, his impact is undeniable. In this article, we will delve into the universe of Efficiency dividend, exploring its origins, evolution and its influence on various aspects of society. From its appearance to its contemporary relevance, Efficiency dividend has been the subject of analysis and debate, generating a vast wealth of knowledge that deserves to be explored in detail.
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An efficiency dividend is an annual reduction in resources available to an organization. It is usually applied as a percentage of operational (running) costs.
It has been used by the Australian Government on Australian Public Service departments and agencies since 1987. Some departments and agencies have been exempted.
History
A 1.25% efficiency dividend was introduced by the Bob Hawke Government in 1987–88. It was reduced to 1% from 1994–95 to 2004-2005 then increased to 1.25% from 2005 to 2006. For 2008-09 a one-off 2% efficiency dividend on top of the ongoing efficiency dividend was applied. In 2011-12 it was 1.5% and in 2012-13 another extra one-off 2.5% was applied.
Controversy
Proponents of the efficiency dividend argue that it improves the cost effectiveness of the public sector, allows managerial flexibility in the allocation of resources, and is a good way to generate savings in the cost of public sector administration. Critics have described the efficiency dividend as a blunt instrument, a false economy, and lazy budgeting. Smaller agencies have also highlighted the difficulty in finding such savings.
References
- ^ "efficiency dividend". www.businessdictionary.com. WebFinance Inc. Archived from the original on 30 December 2014. Retrieved 5 January 2015.
- ^ "Agencies exempt from the boosted efficiency dividend". The Canberra Times. Fairfax Media. 29 November 2011. Retrieved 5 January 2015.
- ^ Horne, Nicholas. "The Commonwealth efficiency dividend: an overview". www.aph.gov.au. Retrieved 5 January 2015.
- ^ "REPORT 413: The Efficiency Dividend: Size does matter". www.aph.gov.au. Commonwealth of Australia. Retrieved 5 January 2015.
- ^ Stone, Christopher (1 July 2014). "In government, small isn't always efficient". The Canberra Times. Fairfax Media. Retrieved 5 January 2015.
- ^ Hutchens, Gareth (2 January 2015). "Why this obsession with cutting public service jobs?". The Canberra Times. Fairfax Media. Retrieved 5 January 2015.
- ^ J, Samuel. "The Government's efficiency dividend". catallaxyfiles.com. Retrieved 5 January 2015.
- ^ "Australian Public Service Commission Submission to the Joint Committee of Public Accounts and Audit: Inquiry into the effects of the ongoing efficiency dividend on smaller public sector agencies" (PDF). www.aph.gov.au. Retrieved 7 January 2015.