The proposal would require the Department of Foreign Affairs and Trade (DFAT) and the Attorney-General’s Department (AGD) to carefully prioritise allocations of "Other grants and contributions" and "Grants" and eliminate (and/or reduce funding to) a small percentage of those grants least urgently needed.

This will be achieved by reducing grant funding by:

• 2% in 2025-26
• 4% in 2026-27 and ongoing.

The proposal would start on 1 July 2025.