5. Assessing savings' impacts

Departments we examined did not actively assess how savings affected either frontline or back-office services. 

Departments’ existing performance measures do not track savings' impacts and do not consistently measure all outputs across all business areas. 

Without targeted metrics or specific monitoring, departments cannot show if savings affected service delivery.

Covered in this section:

4. Delivering and monitoring savings

All departments told us that they delivered their 2023–24 DER savings targets, but only DEECA tracks implementation at the initiative level.

Other departments monitored progress against their overall budgets, which include a mix of savings and other funding decisions.

This means they could not easily show if they delivered the specific initiatives approved in their DER implementation plans.

Covered in this section:

3. Planning savings

Most departments planned to deliver DER savings without reducing frontline roles. 

But DPC and DTF did not give clear guidance to departments on how they should apply the government's commitment to protect frontline roles when departments developed their savings proposals.

Not all departments could show how they applied their frontline worker definitions. 

Covered in this section:

1. Our key findings

What we examined

Our audit followed 2 lines of inquiry: 

1. Were departments' plans to deliver savings and efficiencies consistent with the COVID Debt Repayment Plan?

2. Are departments on track to deliver savings and efficiencies, while maintaining frontline services?

To answer these questions, we examined:

Women's specialist health care

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We are interested in examining the progress of the Victorian Women’s Sexual and Reproductive Health Plan 2022–30. This includes if it is improving access to specialist women's health services such as menstrual health, abortion and menopause treatment.

Urgent care services

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We are interested in examining if non-emergency urgent care services are working as intended to reduce demand on hospital emergency departments. Urgent care services consist of Nurse-on-Call, Virtual Emergency Care and Urgent Care Clinics.

Tobacco licensing

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We are interested in examining the establishment of the new tobacco regulator with powers under the Tobacco Amendment (Tobacco Retailer and Wholesaler Licensing Scheme) Act 2024. This includes how the new licensing scheme is operating. It is important that the new regulator can effectively assess license applications and inspect retailer premises in accordance with the legislation.

State-managed aged care services

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We are interested in examining how the Department of Health manages state-funded aged care services, and if the department is meeting the needs of people living in regional and rural areas who face barriers to accessing appropriate aged care.

Reducing the harm caused by alcohol and other drugs

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We are interested in examining if the Department of Health's alcohol and other drugs services are accessible, meet demand, and are effectively reducing harm. There is opportunity to look at services for Aboriginal and Torres Strait Islander people and people with mental illness, 2 cohorts who experience higher rates of harm caused by alcohol and other drugs.