The federal government is bolstering Services Australia's staffing as it looks to the agency to lead the public service's response to natural disasters, after years of cuts under previous governments.
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Agency chief executive Rebecca Skinner confirmed the increase in an email to staff on Wednesday following the federal budget, saying its additional staff would be involved in delivering emergency welfare support.
The main public sector union welcomed the new government's decision to grow staffing at the agency after years of cuts under the Coalition and the previous Labor government, saying Services Australia needed staffing to deliver government services needed by the nation.
Community and Public Sector Union national secretary Melissa Donnelly also said the union would continue monitoring the agency's staffing levels.
Budget papers released on Tuesday revealed an increase in staffing next fiscal year compared to plans for the agency under the Morrison government.
Ms Skinner told staff the budget included funding for 2400 additional staff, including 2100 employees to respond to emergencies in 2022-23.
The agency will also recruit an additional 200 staff to support customer services around the nation.
"These additional staff will go to where there is the greatest need, including to regional and remote Australia and to support customers experiencing vulnerability," she said.
Services Australia also plans to recruit 100 staff to be based in Cairns.
Ms Skinner told staff the budget reflected "the strong support for your work here at Services Australia and our vision of providing simple, helpful, respectful and transparent services".
Budget papers showed the average staffing level for Services Australia falling in 2022-23, as the agency sheds staff involved in its pandemic response.
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However the budget revealed Labor was setting staffing levels for the agency at 28,500 next year, compared to 26,100 in the last Morrison government budget delivered in March.
Ms Donnelly on Wednesday said the CPSU would keep watching staffing levels at the agency, which sustained major cuts under the Coalition.
"It is going to be an ongoing priority that we assess and ensure that Services Australia has the staff to get the job done," she said.
The CPSU national secretary said the budget, which outlined an 8000-staff increase to the Australian Public Service, was "welcome relief" for the public sector and backed up comments from the new government expressing support for the APS.
"For a range of agencies that are under acute pressure, this will make a really substantial difference," Ms Donnelly said.
She warned the task of rebuild the capability of the public service would take time.
"What we saw last night is really important progress to rebuilding the service and restoring its capacity. But it will, of course, take more than one night as well."
Labor's first budget in nearly a decade also revealed major increases to staffing at other service delivery agencies.
The Department of Veterans' Affairs will grow by 650 staff next fiscal year, as the new government moves to clear a backlog in compensation claims and act on Royal Commission recommendations.
The National Disability Insurance Agency is also set to add 300 staff to its ranks.