Government's 20 billion dollar outsourcing policy failed in practice, audit
Policy covered just 3% of the $20 billion external spending while contractor costs surged overall.
An audit found major flaws in the government's Strategic Commissioning Framework. The framework was designed to cut outsourcing.
The policy covered less than 3 per cent of the $20 billion spent on external contractors. Agencies met their targets on paper.
But their total contractor spending rose. Defence and the Australian Taxation Office made up 74 per cent of cost reductions.
Nearly two-thirds of agencies failed to reach their targets. The Health Department cut about 1.5 million dollars in core work outsourcing.
It raised external spending by 86.5 million dollars.
- $20 billion
- Commonwealth external spend
- Less than 3 per cent
- Policy coverage
- $32.7 billion to $35.6 billion in one year
- Sample agencies' expense rise
Why it mattersIt reveals that the government's main outsourcing policy is not delivering promised savings or accountability.
AustraliaAffects how federal agencies spend on contractors and influences budget priorities across government departments.
✓ Claims checked against the source. checked 1 h ago
Open this story in InSnip →
