A new report released today shows the progress the Australian Public Service (APS) is making to bring core work back in-house and reducing the reliance on external contractors and consultants.
For more than a decade, the Liberal’s supressed the true size of the public service by outsourcing core public service work to more expensive contractors and maintaining an artificial and arbitrary cap on public service numbers.
In 2023, as part of the Albanese Government’s efforts to rebuild the APS, the Strategic Commissioning Framework was released.
Under the Framework, more than 100 agencies were required to identify the core work that should be done by APS employees - not outsourced - and set targets to begin bringing it in-house in 2024-25.
Minister for the Public Service, Senator the Hon. Katy Gallagher, says the first annual update on implementation shows agencies are committed to bringing over half a billion dollars of outsourced core work back in-house.
“Core work includes developing cabinet submissions, drafting legislation and regulation, and leading policy formulation. It also stops the use of contractors as a member of agency executive teams as we saw under the Coalition.
“When coming to government we set out with an ambitious agenda to reform the APS, and to strengthen capability, to ensure the APS can deliver the services Australians expect.
“This update shows the public service has set a target for more than $527 million worth of work to be brought back in-house in 2024-25.
“This supports the public service’s work to achieve the $4 billion in savings from reducing spending on consultants, contractors, and labour hire that the Government has delivered since the election”, Minister Gallagher said.
The Strategic Commissioning Framework 2024 Update includes an overview of each agency’s 2024-25 target, supporting transparency and public accountability.
When setting targets for 2024-25, agencies identified the core work they would bring in-house, the relevant job family, and the expected reduction in expenditure on external suppliers.
Agencies will also achieve additional savings through reduced external labour spending on non-core work to deliver the Government’s $4 billion saving, but this is outside the scope of the Strategic Commissioning Framework.
APS agencies have started taking steps to embed the framework into their systems and process to deliver on their targets, laying the foundation for enduring change in the way core work is delivered.
The Strategic Commissioning Framework 2024 Annual Update is available on the APSC website.