Labor has lost control of public service spending

The Australian Public Service has expanded by about 25% since the Albanese government took office in June 2022.

The budget papers show that staffing costs are expected to be $19.6 billion higher over the next four years than previously anticipated, with further increases expected from upcoming enterprise bargaining wage agreements.

An AFR analysis of the annual reports for the federal government’s biggest departments and agencies has revealed a staffing cost blowout of over $2 billion – or $5.6 million a day. The issue has taken on added significance as the government comes under pressure to restrain spending amid persistent inflation and the prospect of further interest rate rises.