The Coalition government would expand the federal public service if re-elected, as its budget reveals plans to grow staffing in defence and national security agencies amid warnings of threats to international stability.
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Staff numbers would grow across the public service to their highest level since the Coalition was elected in 2013 as the government tasks the bureaucracy with sustaining the nation's pandemic recovery efforts and shoring up its defences.
The budget also revealed plans, costing $15 million over seven years, to create up to four hubs letting Australian Public Service staff work in regional locations under a rebooted decentralisation plan.
Services Australia would also undergo another drastic reduction in staffing, falling by 2700 staff, continuing years of cuts that have shrunk the welfare agency by thousands of staff over the last decade.
Average staffing levels across the public service would reach 173,600 in 2022-23, up 400 compared with the previous year, as Finance Minister Simon Birmingham flagged the government would need the bureaucracy to deliver programs sustaining the COVID recovery and responding to the changing national security environment.
It follows decisions in last year's budget to lift portfolio-level staffing caps in areas including aged care and veterans' affairs.
"The government considers that in some instances a temporary continuance of peak average staffing level resources is necessary to support measures which sustain Australia's strong recovery from the COVID-19 pandemic, bolster Australia's national security, support jobs creation and improve essential services," Senator Birmingham said in budget papers released on Tuesday.
The Finance Minister also said the increase in public service staffing would be below the original expected peak forecast in last year's budget, reflecting difficulties some agencies faced in recruiting due to the strong labour market and COVID lockdowns in 2021.
The Defence portfolio, led by minister Peter Dutton, would undergo the greatest expansion under the Coalition's budget, a decision Senator Birmingham said reflected changes to Australia's strategic environment.
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Under plans revealed in the budget costing $9.9 billion over 10 years, the government would bolster Australia's intelligence and cyber muscle by doubling the size of the Australian Signals Directorate, creating 1900 new jobs.
The Defence Department's civilian staffing would grow by about 1000, while Defence Housing Australia (130 staff) the Veterans' Affairs Department (90 staff) would also grow their ranks of public servants.
Among other portfolios the Coalition would grow are Home Affairs, receiving 800 more staff, an increase Senator Birmingham said would address risks posed by high risk terrorist offenders and strengthen Australia's defences against transnational, serious and organised crime.
The Industry, Science, Energy and Resources portfolio would grow by 570 staff, driven mainly by an increase to staff at the CSIRO, which is receiving funding for programs to investigate building resilience in flood-devastated regions, and for translating lab research to markets.
The Health Department would shrink by about 400 staff, although the government said it would continue supporting the delivery of the COVID vaccine program, and extend the National Incident Centre as it plans for coronavirus cases in winter 2022.
The government revealed new plans to "regionalise" the public service with APS Hubs, saying they would respond to labour market changes and keep the bureaucracy competitive in attracting and keeping staff.
The APS Hubs would provide multi-agency work spaces giving regional public servants access to technology and shared facilities.
Senator Birmingham said the hubs would locate staff closer to communities, break down siloes and broaden the perspectives of public servants.
"Growing the APS footprint, particularly in regional areas, will build stronger linkages with local communities and facilitate closer engagement across arms of government, supporting better policies and services for Australians," he said.
Senator Birmingham defended the public service's use of consultancies, saying the cost of new consultancy contracts would be dwarfed by the $23 billion wages bill for the APS in 2022-23.
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Doug Dingwall
Twice weekly
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