Insiders have spoken on what to expect within state and federal governments this year.

Current and former leaders of public offices say there are a range of new challenges facing elected governments, and the departments that have to carry out their policies.

They spoke to online news outlet The Mandarin about what might be in store for 2015.

Redefining the roles of government departments and the people that work there featured heavily in responses from the authorities.

“The most crucial challenge facing all governments in Australia is the uncertain outlook for the economy and the future state of the labour market,” former top Victorian bureaucrat Helen Silver said.

Silver said that the tight fiscal environment on state and federal levels could drive wider structural reform.

“This situation should encourage a more mainstream debate about the role of the different levels of government in influencing industry and employment outcomes,” she said.

The upcoming white papers on tax and reforming the federation will help the debate, and could help cash-strapped state governments too.

Ms Silver said the papers should provide “realistic options for a long-term realignment of appropriate roles and responsibilities between the states and territories and the Commonwealth with matching revenue flows”.

“It will be interesting to watch how the different jurisdictions work — or do not — together prior and at any COAG and HoTs [heads of treasuries] meetings,” she said.

David Gilchrist, an outspoken former bureaucrat in Western Australia, says dealing with efficiency dividends will occupy a lot of the decision-making time among department bosses.

“The key issue... will be to make discerning decisions such that the fabric of the sector is maintained and the governments’ policy intent can be achieved, today and into the future,” he said.

“This is an increasingly important management issue for public servants and their capacity to deal with such blunt instruments will be incredibly important for the future of public administration in our country beyond 2015.”

‘Contestability’ and ‘strategic commissioning’ will be the keys to success in 2015, according to Helen Dickinson, Associate Professor in Public Governance at the University of Melbourne.

“Commissioning got quite a few mentions in the federal Commission of Audit and budget and many of the states have now also started to talk about this. Victoria, for example, has now made commissioning skills one of the core skills for the Victorian public service framework,” she said.

“One of the things I will be interested in watching is how these attempts are implemented and whether this is in a more expansive approach to strategic commissioning — or just more outsourcing.”

As always, Helen Silver says, no effective change or progress can be made without good leadership.

She says; “ensuring the prioritisation and enhancement of public sector human resource management” should be at the centre of executive decisions.

“For example... in the development and implementation of policies and processes for the identification and management of high-performing officials at all key levels, and the continued implementation of innovative diversity programs.”

Department of Employment boss Renée Leon, driving force behind efficiency through shared services at the federal Shared Services Centre, said that combining administrative functions of multiple agencies to save costs will become ever more important.