APS agency heads must set targets to reduce contractors, consultants and labour hire, new ASPC instructions say

The targets are part of new instructions, published by the Australian Public Service Commission on Monday, which place the onus on agency heads to reduce contractors, consultants and labour hire.

Public Service Minister Katy Gallagher said this would build on the government's "ambitious plan to reform the APS".

"And this framework will ensure that from now on core work will only be done by APS employees," Senator Gallagher said in a statement.

"Agency heads will lead this work, determining their core work, setting targets to bring it back in house and reporting on their progress."

The Albanese government's audit of the APS workforce in May revealed the former Coalition government spent $20.8 billion on an external workforce of nearly 54,000 throughout 2021-22 financial year.

Senator Gallagher said this contradicted a cap on staffing, which tied APS employment to 2006-07 levels.

The framework, which states it will "wind back excessive outsourcing", will apply to the APS's 102 agencies at first, and then extend to other Commonwealth entities.

APS leaders must start with "rigorous planning" of their workforces, identifying capability needs early on, the framework sets out.

It encourages expanding the definition of core work, which only public servants can carry out. Currently, this applies strictly to work done for cabinet, legislation and regulation, policy work and executive roles.

But other functions such as procurement and managing contracts, standard cost benefit analyses, delivering programs and managing grants "should be brought back in-house as a priority".

External support should only be used in "limited circumstances", where options such as secondments have been exhausted, or there is a need for independent advice.

READ MORE:

And where they are engaged, the agency must also "take steps to build the skills of APS staff, to avoid perpetuating capability gaps".

Agencies will need to collect data on their external workforce and track its reduction, including type of labour, work and the reasons for outsourcing, in order to show they are making progress.

Targets to reduce reliance on inappropriate outsourcing must be set by June 2024, and will be reported on in each agency's corporate plan from 2024-25.

Assistant Minister for the Public Service Patrick Gorman said the framework was pivotal to reform efforts and set "clear expectations to reduce reliance on external workforces".

"Enhanced APS capabilities will benefit both our dedicated public servants, and all Australians, too."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: