Tech contractors buck government push to cut external hires
The Albanese government is cutting outside consultants everywhere. Technology is the exception. It spent $2.1 billion on specialist contractors since 2023-24.
Australian government agencies are shedding non-essential consultants. But one sector is booming: technology.
Tech contractors make up 24 per cent of the $8.8 billion spent on temporary workers across non-Defence agencies since 2023-24. Defence is even more reliant.
It puts nearly 45 per cent of its $252 million temporary staffing budget into technical roles. Agencies need experts to manage digital changes, handle complex data work, and boost cyber security.
The issue is simple: government salaries cannot match what the private sector pays for these skills. The Australian Public Service has hired 3,360 new tech staff in three years.
This expanded the internal workforce by 48 per cent. But demand outpaces supply.
Contractors fill the gap for temporary projects while government builds permanent capacity. Experts say this trend will continue.
Agencies are phasing out old computer systems and adding artificial intelligence.
- $2.1 billion
- Tech contractor spending
- 24 per cent
- Tech share of temp workers budget
- 45 per cent
- Defence tech contractor share
- 3,360
- New tech staff hired in 3 years
Why it mattersThe government spends billions on tech contractors because it cannot attract talent at public service pay. This shows a bottleneck in the government's ability to modernise.
AustraliaAustralian taxpayers are funding a large, ongoing contractor market that could be reduced if government tech salaries were raised to competitive levels.
✓ Claims checked against the source and corrected before publish. checked 1 h ago
