Cutting public service jobs undermines capability

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Peter Dutton says he will cut the Australian Public Service by the same amount it has grown under the Albanese government – 41,000 employees. 

He and Bridget McKenzie say they will work out which jobs need to be cut when they are in government.

Australians – particularly the thousands who would lose their jobs – deserve better than a slogan without a shred of evidence that it will achieve anything.

Australia Institute research shows:

  • The Australian Public Service is not large in historical terms or by any international comparison.
  • Keeping public service employment numbers low is not efficient. Experience shows service delivery suffers and/or money is spent on contractors, consultants and labour hire workers to meet demand.
  • When the Albanese government took office, there was recognised under-investment in the public service. More staff were needed.
  • Underinvestment in the Australian Public Service was due to previous governments keeping public service numbers artificially low by placing a cap on staffing.

“Public service bashing without any detail is nothing more than cheap, nasty politics,” said Fiona Macdonald, Director of The Australia Institute’s Centre for Future Work.

“Data from Services Australia reveals the recruitment of 5000 staff between 2023 and 2024 cut call waiting times to Centrelink by six minutes and calls to Medicare by nine minutes.

“It also resulted in cutting processing times for Paid Parental Leave claims from 25 days to four days, Job Seeker claims from 22 days to six days and online Medicare claims from 11 days down to two days.

“These are just a few examples of how properly resourcing the public service provides real, measurable improvements for Australians.”

“History has shown us that when you cut public service jobs, you don’t save the nation a single cent,” said Lisa Heap, Senior Researcher at The Australia Institute’s Centre for Future Work.

“In fact, it costs the country more because essential work is then carried out by expensive contractors, consultants and labour hire workers.

“The Coalition’s ‘policy’ simply does not stand up to scrutiny or reality.”

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