Budget 2022: Audit ‘finds’ $22bn to mark Labor policy turf

The Albanese government has gutted programs established by the former Coalition government and is using $22bn in savings to put its stamp on the policy agenda.

Finance Minister Katy Gallagher has highlighted $10bn in direct savings, adding nearly $12bn has been repurposed. Picture: Getty Images

The Albanese government has gutted programs established by the former Coalition government and is using $22bn in savings to put its stamp on the policy agenda, as Finance Minister Katy Gallagher concedes “there’s no easy save”.

After vowing to crack down on “waste and rorts”, the October budget reveals the long list of measures announced by the Morrison and Turnbull governments that Labor has axed altogether or partially scrapped.

Some of the big-ticket savings found through the government’s “spending audit” include $4.6bn from the national water grid fund, $1.6bn by not proceeding with measures announced over the past five years but not legislated, and $746.9m from the climate change, energy, environment and water portfolio.

Another $3.6bn will be saved from reducing private consultancy, advertising, travel and legal expenses for the public service.

Hundreds of millions of identified savings will go towards climate measures, including $224.3m to deploy 400 community batteries across the country, $102.2m to deploy solar and clean-energy technologies and $71.9m to deliver a new green hydrogen hub in the Townsville region.

Setting up a fight with Coalition MPs, the budget confirms savings from abolishing regional grants schemes such as round six of the Building Better Regions Fund ($252m), Community Development Grants program ($920m), Urban Congestion Fund ($671m) and Modern Manufacturing Initiative ($304m).

A total of $22bn in savings over the forward estimates was identified across 10 portfolios. Senator Gallagher said there was $10bn in direct savings and nearly $12bn being repurposed.

“There’s no easy save,” she told The Australian as she defended the audit.

“There are always arguments you can put around anything to say it’s good.

“We’ve put some analysis around it – do business cases exist, was there a proper process, was there a delivery agreement for how this (should) be done and where that’s had some holes, that’s fed into our thinking.

“There are 760 regional measures in this budget, of which 220 are new. There is a huge focus in the regions in climate, even in our skilled migration policy, housing, in some of the work (Climate Change and Energy Minister) Chris Bowen’s doing about powering the regions, in some of the funds (Infrastructure and Regional Development Minister) Catherine (King) is delivering.

“It’s about putting much more rigour around these things and where there wasn’t, we returned that money and we’ll keep the discussions going.”

Lesser-known Programs such as the Agricultural Shows Development Grant scheme and Safer Communities Fund are also on the chopping block, while gas or carbon capture and storage pipeline investments that lack a case for government support will not go ahead.

Where there are double-ups in Coalition and Labor promises, the government has opted to cancel the Coalition program and redirect any uncommitted funds to its scheme to avoid duplication.

For example there will be a “partial reversal” of the Coalition’s respectful relationships women’s safety program, saving the government $5.9m over four years. The money will be redirected to Labor’s consent and respectful relationships education measure.

Even Covid measures will go, with the government decommissioning the CovidSafe app, Coronavirus Australia app and Covid-19 WhatsApp channel, and $50.4m will be redirected from training for authorised nurse immunisers in residential aged care.