The proposal is to return the Efficiency Dividend (ED) on departmental funding to 2.0 per cent for three years from 2022-23, stepping down to 1.5 per cent in 2025-26, and returning to the base rate of 1.0 per cent in 2026-27.

The proposal is also to increase the Employer Contribution Rate charged to Commonwealth agencies for employees who are members of the defined benefit Public Sector Superannuation (PSS) scheme to 20 per cent from 2022-23 with the additional funds paid returned to Consolidated Revenue.