Labor's spending on external consultants hit record high despite vow to cut
The Albanese government spent $860 million on external consultants in 2025-26. KPMG's contracts nearly doubled.
The Federal Government paid $860 million to external consultants in 2025-26. KPMG faced major scandals in March 2026.
KPMG's contracts nearly doubled from $32 million to $59 million. More than 30 KPMG contracts worth over $20 million were awarded after the firm's unethical behaviour became public.
The firm works with the Department of Industry, Science and Resources. It also works with Services Australia, Defence, the Australian Securities and Investments Commission and the Bureau of Meteorology.
Parliamentary Library data shows Labor continues heavy reliance on outsourcing despite saying it would reduce it. Barbara Pocock from the Greens said the government's response to KPMG's scandals was to hand over more money, not less.
The Australian National Audit Office found government entities spend about $20 billion yearly on labour hire, contractors, consultants and outsourced services.
- $860 million
- External consultants spending 2025-26
- $32 million to $59 million
- KPMG contracts increase
- More than 30 contracts over $20 million
- KPMG contracts sealed after scandals
- About $20 billion
- Annual government outsourcing spend
Why it mattersTaxpayers are funding consultants at three times the cost of keeping work in-house. Little has changed despite public scandals or government reform promises.
AustraliaAustralian taxpayers are footing an $860 million bill for external consultants, with record spending on a firm the government says should face investigation.
✓ Claims checked against the source and corrected before publish. checked 3 h ago
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