An audit shows the previous federal government spent a staggering $20.8 billion outsourcing more than a third of public service operations.

The equivalent of 54,000 full-time staff were employed from third-party firms by the federal government in 2021-22, or 37 per cent of the actual workforce

The Australian Public Service (APS) has been relying on outsourcers and contractors for so long that there is now little prospect of attracting permanent talent, according to an audit by the Department of Finance. 

The $21 billion “shadow workforce” is made up of around 54,000 IT contractors, working for up to $100,000 per year than they would if they were employed directly by the departments. 

In exchange for the massive spend, the previous government was able to understate Australian Public Service headcount numbers, appearing to have reduced their ranks. 

Audit results were used by Minister for Finance and the Public Service Katy Gallagher to characterise the previous regime’s treatment of APS talent as a “cash cow” to give support to union-busting outsourcers and labour-hire firms. 

The Audit of APS Employment Numbers revealed that between a quarter to a third of APS headcount have become some variation of a tech contractor. 

A detailed breakdown is accessible here.