Labor Says Coalition’s Cuts Target Nearly 60 Percent of Canberra’s Public Service Workforce

Opposition Leader Peter Dutton is standing firm on the Coalition’s plan to slash 41,000 public service jobs in Canberra.

Leader of the Opposition Peter Dutton at the Liberal Party Campaign Launch at the Liverpool Catholic Club in Prestons, western Sydney on day 16 of his 2025 Federal Election Campaign in the seat of Werriwa, Sunday, April 13, 2025. AAP Image/Mick Tsikas

Opposition Leader Peter Dutton is standing firm on the Coalition’s plan to slash 41,000 public service jobs in Canberra if the party wins power.

The comments come as the pledge comes under criticism from opposing MPs who there are 70,000 public servants in the national capital, and cutting 41,000 out of that workforce would not be feasible.

“We’ve been very clear about that,” Dutton said during a press conference in Tasmania.

“Some of those positions of course have not been filled yet, so they’re projected numbers. They are not even positions yet.”

The Coalition argues that billions can be saved.

Nationals leader David Littleproud backed that claim during his speech at the National Press Club.

“There are many public service jobs with funding attached that were vacant. They’re on the budget, but in fact, we won’t be putting those jobs on. So that means that there is saving, so we’ve been very clear about that.”

Labor Says Only 37 Percent of the Public Service in Canberra

Labor has warned that such deep cuts would devastate the Australian Public Service.

“ASIO, the Australian Signals Directorate, all of our security and intelligence agencies—where does Peter Dutton think they are based? They are based in Canberra,” Prime Minister Anthony Albanese told reporters in Perth.

“The Department of Defence. Do they think that the [Chief of the Defence Force] and the senior defence leadership in this country aren’t based at [the suburb of] Russell in Canberra? Where does he think they are?”

Finance Minister Katy Gallagher said about 36.9 percent of the Australian Public Service was based in the Australian Capital Territory, nearly 70,000 workers, and that current staffing levels were “about right.”

“Look, there may be some changes across departments and agencies as programs finish and other priorities ramp up,” she said.

“But I think, roughly, the public service is the appropriate size, and I actually think that’s an important part of fiscal discipline.”

Pocock Calls it ‘Canberra Bashing’

ACT independent Senator David Pocock described the plan as “Canberra-bashing” and called on Dutton to walk it back “imminently.”

“You can’t cut 41,000 public servants from Canberra without touching defence, intelligence and frontline services, and still run the country effectively–it simply isn’t possible,” he told ABC news.

Labor MP Andrew Leigh called the policy “insane”, arguing the numbers don’t even add up if the Coalition shuts down entire departments.

“Even if Dutton closed the head offices of 12 departments ... he’d still have less than 41,000 job cuts,” he said. “Dutton makes DOGE look restrained.”

Dutton Says Services Won’t be Impacted

Dutton is saying the move would not affect government services.

“We’re not reducing the public service, only in Canberra,” he told reporters. “We’ve been clear about that from day one.”

The Coalition later clarified that the numbers would be spread out over five years, and that frontline and national security roles would be protected.

The opposition has also ruled out forced redundancies, saying reductions would come through natural attrition, voluntary exits, and a hiring freeze.