Labor Defends Consultant Cuts as It Takes Aim at Coalition’s Public Service Slashes

Pressed on the contrast, Albanese said Labor’s cuts were about value for money.

Australian Prime Minister Anthony Albanese takes questions during a visit to Pacific Link Housing in the electorate of Robertson in Gosford, Australia, on April 28, 2025. Asanka Ratnayake/Getty Images

While Labor targeted Coalition’s plan to cut 41,000 public servants as a point of contention, it has also defended its own move to slash 54,000 private consultants.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers argue Labor is targeting waste, not essential services.

Albanese added that Labor’s cuts were about value for money.

“We are cutting on wasteful spending,” he said. “A public service officer works for a reasonable wage—$200,000 for a senior role—but a consultant for the same role works half the time, getting paid double the amount under the Coalition.”

He said the Coalition’s reliance on consultants had real consequences.

“The consultant culture led to 42,000 veterans being denied their entitlements—men and women who had served our nation in uniform, some of whom passed away before they got the entitlements they had earned,” he said.

“We are backing Australians. Peter Dutton is sacking Australians.”

Impact on Vital Agencies

Albanese warned the Coalition’s cuts would gut key public services, including Services Australia, the Australian Defence Force, the Department of Foreign Affairs and Trade, and the National Emergency Management Agency.

He questioned what would happen to critical agencies if 41,000 public service jobs were lost.

“What happens with ASIO, with Operation Sovereign Borders, with the Australian Signals Directorate?” he asked.

“These security and defence agencies represent more than 20,000 of the 68,000 public servants currently in Canberra; 41,000 of them are going to be sacked. That will have a devastating impact on Australian services.”

Billions in Savings Defended

Chalmers said Labor had already saved billions by cutting back on consultants, and would continue reducing waste.

“We are making billions of dollars of savings, investing in the capacity of the Australian Public Service, while winding back outrageous levels of spending on contractors and consultants,” he said.

He dismissed claims that the figures were “creative accounting.”

“When we came to office, the public service was hollowed out. Too much spending on contractors and consultants,” he said.

Chalmers accused Dutton of borrowing policies from overseas.

“He wants the Americanisation of health, the public service, and education,” he said.

“He draws his inspiration from U.S. politics and slogans. We believe in the capacity of the Australian Public Service.”

Coalition: No Forced Job Losses

Opposition Leader Peter Dutton has downplayed the fallout from the proposed cuts, saying that no jobs would be lost outside Canberra.

“We’ve been very clear about that,” Dutton said, adding that some of the 41,000 positions could come from existing vacancies.

Nationals Leader David Littleproud said many of the positions were already vacant and would simply not be filled.

The Coalition confirmed frontline and national security roles would be protected, and there would be no forced redundancies.

The projected $7 billion in savings is to be delivered over five years through voluntary exits, unfilled vacancies, and a freeze on new hiring.