Something for new Treasurer Frydenberg to consider. Read this letter from US President Trump to Speaker of the House of Reps and the President of the Senate. Here is a snippet:
Under current law, locality pay increases averaging 25.70 percent, costing $25 billion, would go into effect in January 2019, in addition to a 2.1 percent across-the-board increase for the base General Schedule. We must maintain efforts to put our Nation on a fiscally sustainable course, and Federal agency budgets cannot sustain such increases. Accordingly, I have determined that it is appropriate to exercise my authority to set alternative across-the-board and locality pay adjustments for 2019 pursuant to 5 U.S.C. 5303(b) and 5304a.
Specifically, I have determined that for 2019, both across‑the‑board pay increases and locality pay increases will be set at zero. These alternative pay plan decisions will not materially affect our ability to attract and retain a well‑qualified Federal workforce.
President Donald Trump said he’s canceling pay raises for most federal workers that were to take effect in January, citing “serious economic conditions” and the strain that the raises would place on the federal budget.
Through this action, the US Federal budget will save $25 billion. This would be a real save as in a reduction of expenditure rather than a Swan-Save which would be an increase in taxes.