WWTFBudget

Budget Paper

Agency Resourcing (BP4)

Public-service capability rebuild — 13,200 in-house roles since 2022, $14.8B saved on external labour

Modern public-sector workplace
Modern public-sector workplace

Budget Paper No. 4 — Agency Resourcing

Source: Budget Paper No. 4: Agency Resourcing (PDF, 5.92 MB) — local: source-docs/bp4_2026_27_consolidated.pdf, text: source-docs/bp4_2026_27_consolidated.txt Circulated by the Minister for Finance (Sen. the Hon. Katy Gallagher).

BP4 documents the resourcing of every Australian Government agency for 2026–27 — special appropriations, special accounts, staffing levels, and agency outcomes. Where BP2 lists what is being funded, BP4 lists who is doing it and with how many people.

Hierarchy

BP4 Agency Resourcing
├── Preface  ........................ p. 3   (public service capability narrative)
├── Introduction & Guide  .......... p. 19
├── Part 1 — Agency Financial Resourcing  ........... p. 27
│   ├── Agency Resourcing Table              p. 32
│   ├── Special Appropriations Table         p. 119
│   └── Special Accounts Table               p. 132
├── Part 2 — Staffing of Agencies  .................. p. 161
├── Part 3 — Expenses and Net Capital Investment .... p. 175
└── Appendix A — Agency Outcome Statements .......... p. 185

Headline narrative (Preface)

The Government continues to rebuild public-service capability and reduce reliance on external labour.

  • Average Staffing Level (ASL) cap abolished in Term 1; staffing now set by capacity needs rather than an arbitrary cap.
  • 13,200 new public-service roles created since 2022 by converting outsourced work in-house — about one-third of the total increase in public-service staffing since 2022.
  • 2026–27 Budget adds another ~1,400 in-house roles (including 1,250 frontline service-delivery roles at Services Australia) replacing external labour.
  • ASL across the whole public sector is forecast to remain broadly steady in 2026–27 vs 2025–26. Increases concentrated where Government has chosen to invest:
    • Defence capability
    • Fraud reduction and integrity strengthening
    • National Environmental Protection Agency (NEPA) stand-up
    • Cost-recovered services in agencies such as DAFF
  • Total ASL as a share of the Australian population and of total employment is still below 2006–07 levels (Chart 1, p. 4).

Savings from reduced external labour

MetricFigure
Additional savings delivered in 2029–30$2.7 billion
Total savings from reducing external labour & non-wage expenses since 2022-23$14.8 billion
Non-wage expenses targetedTravel, hospitality, property

Australian Government Consulting (AGC) — Box 1

In-house consultancy housed in PM&C.

  • 40+ projects for 16 agencies since launch in 2023.
  • Client satisfaction: ~90%.
  • 80% of clients rate AGC "better" or "much better" than private external consultants.
  • Estimated $10M in external consultancy spend already displaced.
  • Made permanent at 2025–26 MYEFO and now operates as enduring whole-of-APS capability.

What BP4 contains in detail (for analysts)

  • Agency Resourcing Table (p. 32) — for every Commonwealth entity: appropriations from Annual Acts, special appropriations, capital, equity injections.
  • Special Appropriations Table (p. 119) — every legal authority allowing money to be drawn outside the annual Appropriation Bills (Age Pension, NDIS, Medicare, etc.).
  • Special Accounts Table (p. 132) — hypothecated balances held outside the Consolidated Revenue Fund (Future Fund, MRFF, etc.).
  • Staffing of Agencies (Part 2, p. 161) — ASL by agency.
  • Expenses and Net Capital Investment (Part 3, p. 175) — accrual breakdowns.
  • Agency Outcome Statements (Appendix A, p. 185) — the outcome statement each entity commits to deliver.

Cross-references