“According to newly compiled data from the Parliamentary Library, obtained by the Australian Greens, Labor increased its spending on consulting contracts every year of the last parliament:”

By Andrew Klein

Dedication: To my wife — who told me: never, ever hire a consultant to tell you the fire is fine.

I. The Numbers Don’t Lie (But the Government Does)

The Labor government came to power promising a reckoning. After the PwC tax scandal had laid bare the rot at the heart of the consultancy-industrial complex, Labor vowed to cut $6.4 billion in spending by reducing consulting contracts and outsourced service delivery . They boasted about “savings” every year. They promised transparency. They promised a new way.

They lied.

According to newly compiled data from the Parliamentary Library, obtained by the Australian Greens, Labor increased its spending on consulting contracts every year of the last parliament :

· 2022-23: $622 million

· 2023-24: $653 million

· 2024-25: $968.6 million

That last figure is the most damning. In 2024-25, Labor spent nearly $1 billion on outsourcing work to consulting firms — more than the last year of the “consultant-addicted” Morrison government .

And the trend is accelerating. In the first two weeks of 2025-26 alone, Labor had already spent $76.5 million on 90 consulting contracts — nearly 8% of their total spend for the entire previous year .

Greens Senator Barbara Pocock, the finance and public service spokesperson, put it bluntly:

“Labor has boasted savings on consultants every year it held office in the last parliament. Yet Labor spent more last year on consulting contracts than the final year of the consultant-addicted Morrison government. The numbers speak louder than their empty words.” 

She used a different metaphor: “Arranging deck chairs on the Titanic.”

I prefer mine: Hiring consultants to tell you the fire is fine.

II. The Great Shell Game

Here is where the deception becomes artful.

Labor has reduced its contracts with the Big Four consulting firms (PwC, KPMG, Deloitte and EY). Spending on those contracts fell by 47% between 2021-22 and 2024-25. On its face, this looks like progress. It is not.

What Labor has done is simply shift the money elsewhere. The majority of spending and contracts are now going to consulting firms that are not one of the Big Seven (Accenture, Boston Consulting Group, Deloitte, EY, McKinsey, KPMG and PwC). The government is spending even more money — just on different firms.

As Senator Pocock observed:

“While Labor says they’re spending less on consultants, this data shows that instead of spending as much on the Big 4 consulting firms, the government is spending even more money but just on other firms. What’s clear is that the government has been claiming that it has been reducing spending on consultants, but all they’re doing is arranging deck chairs on the Titanic.” 

The Australian people are not fools. We see the shell game. We see the same money, moving from one pocket to another, while the government claims it has stopped spending.

III. The True Cost: Three Times Higher

We know that outsourcing public service work to the private sector costs three times as much as hiring public servants to do the same work.

Three. Times.

And what do we get for that premium? Not better outcomes. Not innovation. Not efficiency.

According to Senator Pocock, we get “millions of dollars wasted by this government on outsourcing core government work to consultants for rubbish results” — including the Bureau of Meteorology website revamp debacle and Deloitte’s AI bungle .

The public service has been deliberately hollowed out — stripped of expertise, morale, and institutional memory — so that governments have to hire consultants to tell them what their own employees could have said for free. The Australian Public Service numbers fell by 7.5% during the nine years of Coalition government . Labor promised to rebuild. Instead, it has continued the erosion.

“How can the Government promise to rebuild Australia’s public sector while arbitrarily slicing 5% off the public service?” Pocock asked. “Arbitrary cuts of the public sector will fuel renewed spending on big consultants and labour hire, at three times the cost. It makes no sense at all!” 

It makes perfect sense — if the goal is not efficiency, but capture.

IV. The Revolving Door Is Not a Metaphor

The Greens have documented a “revolving door between politics and consultancies” — a system where politicians and public servants move seamlessly into high-paying consulting roles, then back into government, carrying conflicts of interest like loyalty cards.

This is not an accident. It is a business model.

Firms like PremierNational boast openly about their “bipartisan” reach, with partners who have worked for the Labor, Liberal, and National parties. They offer “deep networks across the Labor, Liberal and National Parties” and “access to decision makers that matter.”

The RedBridge Group promises “influence with integrity” — a phrase that, in any honest world, would be an oxymoron.

They do not hide this. They advertise it.

And the government — both parties, let us be clear — rewards them.

V. The Robodebt Horror Show: A Case Study in Capture

The Royal Commission into Robodebt revealed the consultancy-industrial complex at its most grotesque.

When the Commonwealth Ombudsman began investigating, government departments deliberately concealed legal advice that showed the scheme was unlawful . They commissioned new legal advice from the same lawyer who had previously declared it illegal — and this time, magically, she found a way to say it was lawful .

One DHS manager warned that if the scheme was challenged, it would “open up Pandora’s Box”.

They were right. It did.

Tens of thousands of Australians were dragged into unlawful debts. The Commonwealth never appealed a single AAT decision — a strategy Emeritus Professor Terry Carney called “unprecedented” . They simply ignored rulings they didn’t like, because there were no consequences.

And who was in the room? The same consultants. The same revolving door. The same people who would later write reports telling the government how to fix the mess they helped create.

Consider Annette Musolino, the former chief counsel of the Department of Human Services. The Royal Commission found that she kept information about concerns over the scheme’s legality from her superiors because she assumed they did not want to know. Commissioner Catherine Holmes described Robodebt as having been born of “venality, incompetence and cowardice” and referred multiple individuals for possible civil or criminal action.

Musolino was later discovered consulting for an outside firm — AllyGroup — while on unpaid leave from her government job, a firm that provides millions of dollars’ worth of legal services to government every year . When questions were raised, she was allowed to resign.

She is not an outlier. She is the system.

VI. A History of Waste: From Hawke to Albanese

The problem is not new. The use of consultants by successive governments to facilitate reviews of public policy became a key strategy in the Hawke era of the 1980s, as governments faced economic turbulence and turned to external advisers to devise “new directions”.

What was once a strategy for managing complexity has become an addiction. A 1986 parliamentary question revealed that Prime Minister Hawke had engaged consultants like Mr. T.C. Dusseldorp to provide advice on youth policy, at salaries equivalent to Senior Executive Service Level 4. The pattern was set.

Forty years later, nothing has changed except the scale. The money is larger. The firms are more entrenched. The public service is weaker. And the political class has perfected the art of promising reform while delivering more of the same.

VII. The Deeper Rot: Hiding the True Cost

Labor has consistently refused to separate the amount spent on consultants from the overall spend on external contractors, making it impossible to know what proportion of claimed “savings” are real.

“This tactic of hiding the actual amount being spent on consultants means that we have no way of knowing whether the government is actually spending less on consultants or not,” Senator Pocock said. “In fact, it could be the case that the government is on track to spend the same amount on consultants as they did last year. We need a more transparent breakdown of the spending data before we can have confidence in Labor’s claims.” 

The people of Australia have a right to know where their taxes are spent. Where is the transparency?

There is none. Because transparency would reveal the truth: the fire is not fine.

VIII. What This Line Opens Up

“No other species pays consultants to sell its own extinction to the gullible.”

Australia proves the rule. Climate change denial. Robodebt cover-ups. The endless recycling of the same failed policies, wrapped in new reports written by the same firms who failed the last time.

We have outsourced not just our government, but our imagination. Consultants tell us what is possible. They tell us what the numbers mean. They tell us the fire is fine — and we pay them to say it, because their report gives us plausible deniability.

The Pandora’s box is not just about money wasted. It is about capacity destroyed. A nation that cannot think for itself. A public service that has forgotten how to say “no” to a consultant’s proposal. A political class that moves seamlessly from Parliament to the boardroom and back again, serving the same masters throughout.

IX. The Cure

The Greens have called for:

· Ending political donations from firms that receive government contracts

· Stopping the revolving door between consultancies and Parliament

· Cutting consulting spending by 15% each year for 5 years

· Establishing an independent consultancies regulator with teeth 

These are not radical proposals. They are basic hygiene.

The only real cure is to stop buying the lie. Not to hire a different consultant. Not to commission a review of the review. To reinvest in public service. To rebuild institutional knowledge. To learn to trust the people we elected, not the people they hired.

To remember: “The fire is fine” is not a conclusion. It’s a sales pitch.

X. Conclusion

The history of the last forty years — from Hawke to Albanese — is written in consulting contracts and hidden legal advice.

The Royal Commission has the testimony. The Greens have the data. The victims of Robodebt have the scars.

The only question is: Who is brave enough to read it aloud?

Not the politicians. They are too busy hiring consultants to tell them the fire is fine.

Not the consultants. They are too busy billing.

Perhaps it is us. The citizens. The taxpayers. The ones who pay for this racket with every dollar extracted from our pockets and every service stripped from our communities.

We have the right to know. We have the right to demand better.

And we have the right to say: No more.

Andrew Klein

References

1. The Australian Greens. (2025, August 26). Labor’s spending on consultancy firms higher than under Morrison, data reveals. 

2. Australian Broadcasting Corporation. (2024, June 3). Government lawyer at heart of disastrous Robodebt scheme resigns after questions raised about external work. 

3. Martin, J. F. (2018). Reorienting a nation: consultants and Australian public policy. Routledge. (Original work published 1998) 

4. Accounting Times. (2025, August 27). Labor spending more on consultants than the Coalition, Greens say. 

5. Parliament of Australia. (2022, November 7). Questions Without Notice: Pensions and Benefits. 

6. The Australian Greens. (2025, March 24). Labor’s budget savings on consultants don’t go far enough. 

7. Parliament of Australia. (1986, May 20). Answers to Questions: Members of Parliament (Staff) Act 1984: Engagement of Consultants. 

8. The Australian Greens. (2025, November 26). Labor should cut spending big on consultants, not weaken public service. 

9. OpenAustralia.org. (2022, November 7). Pensions and Benefits: House debates.