SENATOR THE HON KATY GALLAGHER MINISTER FOR FINANCE MINISTER FOR WOMEN MINISTER FOR THE PUBLIC SERVICE
LABOR TO ACHIEVE AN ADDITIONAL 1 billion in savings from reducing spending on consultants, contractors, and labour hire in the 2024-25 Budget. This is part of the Government's commitment to reduce the reliance on external labour and rebuild a fit-for-purpose public service that is resourced to deliver the services Australians expect.
This save is in addition to the 4 billion.
The Government will also undertake a second Audit of Employment to measure and track exactly how the public service is delivering on the Government's commitment to reduce its reliance on external labour.
Since the election, there are around 8,700 roles that were done by contractors or labour hire that are now being performed by public servants. This includes an additional 2,400 conversions to be reported in the 2024-25 Budget.
The use of the biggest consulting firms has significantly reduced under the Albanese Government, dropping by 4 billion external labour save will comprise 375 million over four years from 2024-25.
The first Audit of Employment showed that the former Government spent approximately one in every $4 on external labour in 2021-22. At the same time as reducing the services Australians rely on, the Liberals employed a shadow workforce of tens of thousands of private consultants and contractors to keep the size of public service artificially low.
The actions the Albanese Labor Government is making to rebuild the public service and reduce the reliance on consultants and contractors recognises that delivering outcomes for Australians must be built on the foundations of a strong public service.
