1.2.3 Public Sector Reform in Australia
The public sector reforms in Australia aimed to update the government’s
performance, and to develop performance processes rather than performance
outcomes. This reform officially started in 1983, with the following public Sector
reform procedures (Office of Permanent Secretary for Interior, 2005: 52-56):
1) Structural Reform: With organization restructure through
streamlining work processes and promoting business-like organizational performance,
allocating top-down authority of decision-making related to personnel and finance and
decentralizing authority to other related government offices.
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2) Industrial Reform: Adjusting government officials’ payment and
fringe benefits to be compatible with the private sector; promoting security and career
progress and developing performance flexibility with part time work.
3) Human Resource Management Reform: Developing high-ranking
government officials by providing administrative and specialist training, developing
executive officials by providing training related to change management, promoting
progress on women’s and native’s equality and applying performance appraisals to
evaluate and compensate personnel.
4) Financial Reform: Assigning government offices to allocate budget
project by project and approving budget for operational expenses project by project
with evaluation based on performance outcomes regarding project aims and
efficiency, rather than cost saving alone, and approving additional benefits for the
government units which can save costs due to performance efficiency.
5) Commercial reform with use of charges. This follows the concept
that the customers are responsible for all or some expenses arising from services. The
contracting out system was introduced, privatization of state enterprises or
autonomous agencies in the form of private companies was promoted, together with
application of the accounting system which could compare related incomes and
payments.
6) Planning and reporting reform: Assigning all government units to
set up organization planning with objectives, important details of operation and clear
evaluation. Each government unit must specify the period of project evaluation, with
the focus on evaluating outcomes. Each unit must arrange the management system
with correct and updated information, for the follow-up of performance and resource
use, and also the annual performance report.