Chandler MacLeod wins big as Department sheds internal workers
The DSS shed staff in 2025-26 while hiring more contractors, shrinking permanent jobs by 38.3 percent.
The Department of Social Services reduced permanent staff in 2025-26 while hiring more contractors, budget documents show. The department's headcount decreased by 38.3 percent to 2475.
Contractor numbers grew from 259 to 283, pushing them from just under 7% to over 10% of the department's workforce. Labour hire company Chandler MacLeod received a $17.2 million contract extension for labour hire on June 18.
Two other firms, DFP Recruitment and Gillian Beaumont Recruitment, also landed multi-million dollar deals at the end of the financial year. Chandler MacLeod faced scrutiny in 2021 when the NDIA paid the company $37.1 million over three years but had no visibility of what their workers were actually paid.
Last year, the Fair Work Commission found Chandler MacLeod staff at BHP earned substantially less than permanent employees doing the same work.
- 38.3 percent decrease to 2475
- DSS headcount cut
- $17.2 million, approved June 18
- Chandler MacLeod extension
- $37.1 million over three years
- NDIA earlier payment
Why it mattersRelying on labour hire contractors costs taxpayers more and creates jobs with lower pay and less job security than permanent roles.
AustraliaThis affects Australian federal government service delivery and how welfare payments and community support are administered across the country.
✓ Claims checked against the source and corrected before publish. checked 4 d ago
