Government struggles to reduce public service outsourcing costs

Major government departments failed to meet ambitious targets to reduce spending on contractors and labour hire, according to an analysis of annual report disclosures, with some agencies not disclosing any savings at all.

Last year, the Albanese government directed agency heads to identify areas to reduce taxpayer expenditure on contractors and consultants as part of Labor's crackdown on "inappropriate outsourcing."

Departments set savings targets worth a combined $527 million despite a handful opting not to include an outsourcing target in their corporate plans.

Agencies with relatively lower levels of outsourcing set far less ambitious targets and met their savings goals, while larger organisations struggled to rein in spending back into the public service.

Services Australia fel