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waste Australian Public Service Commission
$7.8B

$7.8 billion of your taxes paid to consultants who left nothing behind

The government spent $21.4 billion on consultants and contractors in a single year — and $7.8 billion of it built no lasting capability. 15 firms gobbled up 62% of the consulting budget. Internal staff were considered first in only 28% of cases. That's roughly $130 for every Australian, with nothing to show for it.

On Their Watch
KG
Katy Gallagher
This happened on Gallagher's watch as Finance Minister, June 2022–present. Minister for Finance when ANAO audited 2023–24 consulting spend
SB
Simon Birmingham
This happened on Birmingham's watch as Finance Minister, Aug 2018–May 2022. Minister for Finance 2018–2022, period when consulting concentration grew

What This Means

What happened

$7.8B of Australian taxpayer money was wasted at Australian Public Service Commission. The government spent $21.4 billion on consultants and contractors in a single year — and $7.8 billion of it built no lasting capability. 15 firms gobbled up 62% of the consulting budget. Internal staff were considered first in only 28% of cases. That's roughly $130 for every Australian, with nothing to show for it.

Why it matters

Spread across Australia's 10.8 million households, that's roughly $722 per family — enough in total for funding roughly 65 public hospitals for a full year.

What the evidence shows
  • The ANAO found that the APS spent $21.4 billion on external consulting and contracting in a single financial year.
  • Of this, $7.8 billion went to engagements that produced no measurable transfer of skills or capability to the public service.
  • Internal capability assessments were conducted before only 28% of engagements, suggesting most consultants were engaged without first checking if existing staff could do the work.
Amount Spent
$21,400,000,000
Original Estimate
$13,600,000,000
Waste / Overrun
$7,800,000,000
Cost Overrun
57%

Analysis

The ANAO found that the APS spent $21.4 billion on external consulting and contracting in a single financial year. Of this, $7.8 billion went to engagements that produced no measurable transfer of skills or capability to the public service. Internal capability assessments were conducted before only 28% of engagements, suggesting most consultants were engaged without first checking if existing staff could do the work. Average daily rates for contracted IT staff ($1,890) were 2.8x the equivalent APS employee rate ($680).

Sources

https://www.anao.gov.au/work/performance-audit/use-consultants-contractors-aps
Category: waste
Severity: critical
Agency: Australian Public Service Commission

What Needs to Change

Action Required

Mandate skills transfer requirements and break the lock that 15 firms have on 62% of government consulting spend.

Fund Action Campaign
$7.8 billion of your taxes paid to consultants who left n...
$9K
of $45K target
20% funded
67 Australians have funded this
$36K still needed

$45,000 funds a Senate inquiry submission, economist analysis of APS capability loss, and briefing packs for the Finance and Public Administration committee.

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Impact Scorecard

Updated 30 Apr 2026

Tracking the pressure trail — from publication to policy change. Empty boxes show what's left to do.

✓ 📄 Finding published Published 2026-04-30
🔗 Shared 445 times
📰 Media coverage 8 articles
🏛️ MP contacted / responded 12 MPs contacted
❓ Parliamentary question raised —
⚖️ Policy change initiated —
💰 Estimated annual savings if fixed $2.0B/year if fixed
Complete In progress Not yet
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