The Community and Public Sector Union (CPSU) has warned that removing targets to reduce inappropriate outsourcing under the APS Strategic Commissioning Framework (SCF) will let agencies off the hook and could drive even greater outsourcing of public sector work and reduce accountability.
The union said it’s concerned that the Government is rewarding agencies for not meeting their targets and adds by removing targets, the Government will give agencies a green light to engage labour hire and contracting firms instead of investing taxpayer dollars in trained and trusted public sector employees.
Agencies increased their wasteful spending on temporary personnel services contracts by more than 50 per cent in the financial year timeframe even though they reported in 2025 that they outsource little or no core work.
According to AusTender data, the value of temporary personnel services contracts – namely labour hire and contract jobs – already rose by $1.2 billion from $2.33 billion to $3.53 billion between 2024-25 and 2025-26.
As it stands, certain APS agencies continue to outsource core public service work that the union says should be insourced to public sector employees. For example:
- 1,800 call centre workers employed by multinationals Probe, Concentrix and Serco are still performing core service delivery work for the Australian Taxation Office
- the Department of Home Affairs has outsourced over 100 APS seagoing roles in the National Marine Unit to private contractors, and
- approximately 1,180 labour hire workers remain at the National Disability Insurance Agency as at 30 April 2026, many of whom are employed by Serco as the first point of contact in contact centres.
Last month, the CPSU made a submission to the Australian National Audit Office on ways they could strengthen the effectiveness of the SCF so public sector work is performed by public sector workers wherever possible.
The CPSU is calling on the Albanese Government to investigate why the removal of targets to the APS Strategic Commissioning Framework was made when spending on contractors and labour hire firms is increasing.
QUOTES ATTRIBUTABLE TO REBECCA FAWCETT, CPSU DEPUTY SECRETARY:
“Removing clear targets to reduce wasteful and ineffective outsourcing lets agencies off the hook at a time when we should be strengthening obligations to bring core public service work back in house.
“There are still around 1,200 labour hire workers performing frontline contact centre roles at the NDIA, around 1,800 outsourced call centre workers doing ATO work, and agencies are continuing to shift work in areas like the National Marine Unit to contractors.
“When agencies can look at those numbers and conclude there is little or no outsourced core work left to address, it is clear we cannot simply rely on agencies to mark their own homework.
“The Strategic Commissioning Framework was designed to drive transparency and accountability. Removing targets weakens both, at exactly the time we need stronger safeguards to ensure public sector work is done by public sector workers.”
