On the eve of the election, the Coalition has said it will impose a higher “efficiency dividend” on public service agencies over the next four years in an effort to cut public service spending and address the budget deficit.
An efficiency dividend is a measure, first introduced by Labor in the late 1980s, that reduces the budgets of public sector agencies by a certain percentage.
The current efficiency dividend is 1.5%, but the Coalition has promised to boost the figure to 2% for the next three years, with Treasurer Josh Frydenberg saying:
