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