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Our operating context

Introduction

The Department of the Prime Minister and Cabinet’s Corporate Plan sets out our role, purpose, strategic priorities and how we will measure our performance over the next 4 years. We focus our efforts on providing impactful and influential advice through judgement, excellence, collaboration, and by keeping our eye on the big picture. We serve the Prime Minister, support the Cabinet and our portfolio ministers; and through them we help to improve the lives of all Australians.

Serving Australia’s 31st Prime Minister

In May this year, the Australian people went to the polls and elected a new Prime Minister, a new government and a new Parliament. On the 23rd of May, the Hon Anthony Albanese, MP was sworn in as Australia’s 31st Prime Minister, with his Ministry and Cabinet sworn in on 31 May.

The makeup of the 47th Parliament reflects the voice and aspirations of the Australian people. It is the role of the Prime Minister’s Department to ensure we have heard this message and support the Prime Minister in delivering on his commitment to the community so that no one is left behind and no one is held back.

Australian democracy is defined by our free and fair elections, and once the Australian people have spoken, a seamless, calm and orderly transition to a new or returned government. An apolitical public service is instrumental in ensuring a smooth transition to a new Government. Trust in our electoral system and public institutions during this time is paramount and a cornerstone of our peaceful democracy, and a successful and cohesive society.

The Department of the Prime Minister and Cabinet plays a pivotal role in supporting the newly elected Prime Minister and their government from the moment an election result becomes clear. Within hours of the election result, PM&C had all necessary travel arrangements in place to support Prime Minister Albanese’s travel to the Quad Leaders’ Summit in Tokyo.

The Prime Minister has set out an ambitious agenda for the next twelve months and has clearly outlined his expectations for the Department, that we ensure the Government’s priorities are delivered to the highest standards, in the timeframes required on behalf of the Australian people. See the Government’s key strategic priorities.

We focus our efforts on providing impactful and influential advice through judgement, excellence, collaboration, and by keeping our eye on the big picture.

Australia’s economic and fiscal outlook

COVID-19 response and recovery has continued to dominate much of the Department’s operating environment over the past year. Australian economic growth continues to be strong and unemployment is at record lows. But there are significant headwinds facing the domestic economy, including higher inflation, rising interest rates and global uncertainty.

The global economic picture is complex, with the International Monetary Fund recently downgrading the global outlook for 2022 and 2023. Major global central banks are rapidly lifting interest rates to avoid high inflation becoming entrenched. Russia’s war in Ukraine is contributing to high food and energy costs and exacerbating global political and economic instability, which will put pressure on the global economy and China’s COVID-19 control measures are adding to supply chain disruptions.

Increased levels of Government debt accumulated due to the COVID-19 pandemic leaves the Government with less fiscal space to respond to future crises. The Budget is also coming under strain from fast growing areas of expenditure and future pressures, including the NDIS, aged care, health and debt servicing costs. We will support the Government to deliver its priorities while progressing Budget repair including by focusing on improvements to the quality of Commonwealth spending.

Since 2010, Australia’s working-age population has been growing at a slower rate than the growth of the population as a whole. This trend is a reflection of Australia’s ageing population. Without government action, the ageing population and persistent low productivity growth would detract from growth in Australia’s living standards. We will support the Government to address this risk through implementation of its productivity agenda and increase the capacity of all working age Australians to participate in secure, well-paid work.

The global context and national security

Keeping Australians safe and our economy prosperous is a key priority. The Prime Minister and Foreign Minister, Senator the Hon Penny Wong, have set out an ambitious program to build and maintain strong and productive strategic partnerships across our region and the globe. PM&C continues to support these partnerships, including through the Prime Minister’s participation in Quad Summits, and multilaterally through key fora like the East Asia Summit, Pacific Islands Forum, United Nations, and the G20.

The Government is committed to Australia’s long-standing alliance with the United States and the enhanced trilateral AUKUS security partnership. PM&C’s role is to support the Prime Minister by working closely with our colleagues across Government to contribute expertise and a whole-of-nation and whole-of-government perspective to protect and advance Australia’s national and global interests.

In our own region, the Department will deliver on the Prime Minister’s commitment to strengthen political, economic, social and political ties across the Indo-Pacific, particularly with our Pacific neighbours and in Southeast Asia.

Domestic security remains the foundation of Australia’s economic prosperity. Strengthening Australia’s social cohesion will be central to the health of our democracy and addressing the persistent threats posed by extremism, terrorism and foreign interference. The Department will also work across Government to promote Australia’s economic prosperity through the facilitation of legitimate trade and travel.

Climate change is an environmental, economic, social and national security issue and the Department will support the Government in delivering a comprehensive plan on climate change. Over the past two years, Australians have experienced unprecedented bushfires, floods and the effects of the ongoing COVID-19 pandemic. PM&C continues to support the Prime Minister and the Government in responding to crises and critical issues and in promoting whole-of-government coordination to emergency management and national resilience. We have expanded our taskforce capability and are able to respond quickly to address emerging issues.

Our operating context
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