In a recent audit conducted on the Australian Public Service (APS), it was revealed that the previous government accumulated a staggering $20 billion in spending on consulting and outsourcing in its final year alone.  

Last week, the federal government released the results of its public service audit on employment. The audit revealed that the previous administration spent over $20 billion on expert advice and temporary staff during its final year in power.  

Outsourced service providers are said to account for almost 70 per cent of the total expenditure, while over a quarter of the funds went towards contractors and consultants. 

The audit also revealed that nearly 1,000 full-time equivalent advisors were engaged over the course of the year, amounting to a substantial cost of $563.4 million. 

Following on its firm commitment in the last election to reduce Australia’s consulting and outsourcing bill by $3 billion, the Labor Government has responded to the audit by introducing several measures in its latest budget to address the issue.  

“The Morrison government maintained an artificial cap on public servant numbers, creating an illusion of efficiency, while simultaneously spending nearly $21 billion of public money on a shadow workforce that was deliberately kept hidden,” Minister for Public Services Katy Gallagher said. 

“Labor is committed to rebuilding the APS and ensuring that, when appropriate, jobs that need to be done are carried out by public servants.” 

Following data presented to the Senate inquiry, the current government has already made progress in reducing consulting costs.  

One of these programs is the long-discussed in-house APS consulting function. While the initial funding for it is small compared to the half a billion dollars spent on consulting in 2021-2022, Minister Gallagher emphasizes that the project is still in its early stages and is intended to enhance the utilization of consultants for specific purposes where applicable. 

Another is a one-year investment of $2 billion to upgrade government information and communication technology (ICT) systems and digital delivery infrastructure. The allocated funds are expected to almost double over a four-year period, with a significant portion allocated to major consultancy firms for advisory and implementation services. 

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.

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