In a heated debate over the state of Australia’s public sector, the Albanese government is standing firm in its defense of the substantial growth in the public service workforce. Over the past three years, the number of public servants has surged by a staggering 30,000, raising concerns among opposition leaders and sparking discussions about the future of government spending.
A Workforce on the Rise
According to the latest State of the Service report from the Australian Public Service Commission, the public service now boasts a workforce of over 185,000 as of June, marking a 9.4% increase compared to the previous year. Since the Albanese government took office in May 2022, the bureaucracy has expanded by around 26,000 positions, representing a 16.4% growth.
Service delivery agencies, such as the National Disability Insurance Agency (NDIA) and Services Australia, have seen some of the most significant increases in their workforce numbers. The NDIA alone gained an additional 2,193 staff members in the 2023-24 financial year, a remarkable 38.8% increase. Meanwhile, Services Australia welcomed an extra 1,149 employees, which Minister for Government Services Bill Shorten attributes to reduced call wait times.
Contrasting Approaches: Labor vs. Coalition
The public service has averaged a 171,000-strong workforce since the Albanese government took power in 2022, a notable increase compared to the approximately 150,000 under previous Coalition governments. Over the past decade, the overall workforce reached a low point of 146,757 in 2019, while non-ongoing staff, including casuals and contractors, peaked at 19,601 in 2021.
Opposition leader Peter Dutton has hinted at potential significant cuts to the public service if the Coalition emerges victorious in the next federal election. Though Dutton has yet to unveil a comprehensive plan to reduce government expenditure, he has expressed his intention to “rein-in wasteful spending” and “eliminate regulatory roadblocks and red tape” to stimulate economic growth.
“In the latest federal budget, Labor confirmed an additional 36,000 public servants in Canberra at a cost of $6 billion a year – all to please the unions,” Dutton stated during a speech to businesses in Melbourne.
-Peter Dutton
The Cost of Cuts: Albanese Government’s Warning
Assistant Public Service Minister Pat Gorman cautioned that a drastic reduction of tens of thousands of public servants, as proposed by the Coalition, would likely lead to “longer wait times and diminished service quality.” Gorman emphasized that “properly staffing our public services can save taxpayers money,” pointing out that the government has saved approximately $4 billion by cutting external labor since coming into power.
“When agencies are understaffed, the reliance on more expensive external contractors becomes necessary. Under Labor, 8,800 public servants are doing work that was formerly outsourced,” Gorman explained.
-Pat Gorman
Shadow Public Service Minister Jane Hume has criticized the Labor government’s spending as “outrageous,” claiming that nearly 50 public servants have been hired daily since Labor took office. Hume argues that this demonstrates a “complete lack of respect” for taxpayers’ money and does not represent wise or prudent spending.
The Outsourcing Dilemma
An Albanese government audit conducted in May 2023 revealed that the former Morrison government had spent $20.8 billion outsourcing more than a third of public service operations. The audit found that nearly 54,000 full-time staff were employed as consultants or service providers for the federal government during the 2021-22 financial year, equivalent to 37% of the 144,300-employee public service.
Gorman argued that a well-resourced public service fosters trust, satisfaction, and efficient service delivery among citizens. He highlighted that under the current government, claims backlogs have been slashed, processing times have improved significantly, and call wait times have dropped. Gorman warned that the nation “cannot afford to return to long wait times and service backlogs, or to the lack of accountability” that plagued previous administrations.
The Future of Australia’s Public Sector
As the debate over public service growth and spending continues, the Albanese government remains steadfast in its belief that a robust, well-staffed public sector is crucial for the nation’s welfare and economic stability. The Labor party contends that the short-term savings promised by the Coalition’s proposed cuts could ultimately cost taxpayers billions in the long run, as service quality deteriorates and reliance on expensive external contractors increases.
The outcome of the next federal election will undoubtedly shape the future of Australia’s public service. As voters weigh the competing visions offered by the Labor and Coalition parties, they must consider the potential consequences of each approach. Will Australia prioritize a strong, efficient public sector, or will it gamble on the promise of reduced government spending, risking the erosion of essential services and the public’s trust? The stakes are high, and the nation’s future prosperity hangs in the balance.
