What the Federal Election means for the Australian Public Sector

The 2025 Federal Election has been run and won with Labor increasing its majority.

The Australian Public Sector was a major talking point during the campaign, with much discussion about staffing levels of the public service and the right of public servants to work from home.

So what does Labor’s election win mean for the public service?

Stability

In his first press conference since being re-elected, Prime Minister Anthony Albanese said he would prioritise steadying government bureaucracy over bigger reforms for the country.

Mr Albanese said his priority would be restoring government departments that he said had previously been neglected, including the Department Of Veterans Affairs and the Department Of Aged Care.

Staffing levels of the public service were a major talking point of the campaign. The opposition had pledged to reduce the commonwealth’s public service headcount by 41,000 if elected.

However, the government says the public service headcount is about right and will remain the same. Data reveals that the public service headcount has increased during the government’s time in office. However, the government has stressed that this has been necessary to improve the quality of services. They have cautioned that any significant reduction in this headcount would impact the quality of services delivered.

Indeed, the government will increase the headcount in the National Disability Insurance Scheme and the Australian Taxation Office. They will add around 1,000 staff to each.

Increased capability

Over recent decades, the government has increasingly relied on the advice of external consultants when making decisions. Between 1988-89 and 2016-17, the use of government consultants in Australia tripled. It then tripled again between 2016-17 and 2022-23. An audit revealed the previous government spent $20 billion outsourcing more than a third of the public service operations. In 2022-23 alone, the government spent $3.2 billion on management advisory services.

Labour hire reform is a major priority for the government. The government has said that it intends to decrease reliance on external consultants and labour hire. Instead, it will focus on restoring the capability of the public service.

The government says in its first term it saved $4.7 billion by insourcing staff across the public service.

Meanwhile, in the last Federal budget, the government promoted a $720 million reduction in budgetary consultancy spending.

Since it came to office, the government has created an additional 8,700 positions in the public service by reducing the use of consultants.

Unveiling its budget costings prior to the election, it promised to fund its election promises by saving $6.4 billion on the use of labour hire consultants and contractors.

The government has commissioned a series of reviews into the capability of the public service, and these will be ongoing.

Right to work from home for the Australian Public Sector

There was much discussion during the election campaign about public servants’ right to work from home. The opposition had pledged to force Commonwealth public servants to return to the office five days per week.

However, Labor’s election win has ensured that Commonwealth public servants’ right to work from home will not change.

In a sign that working from home is here to stay, the government has been rapidly downsizing its office holdings.

With their employment secure and their right to work remotely protected, the future is bright for Australia’s public servants.

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