The Minns Labor Government is delivering on its election commitment to cut waste and mismanagement, with new figures showing a spending reduction of $297 million on consultants and contractors.
The figures highlight the Government’s commitment to tackling long overdue reforms that are needed to build a fairer, stronger NSW.
This year’s financial report includes an annual drop in spending of $7 million on consultants who provide specialised advice to government agencies.
This means that consultant spending has been reduced by $78 million compared to 2022-23, the previous Liberal-National Government’s final year in office.
The report also shows the government saved $290 million in labour hire contractor costs in 2024-25, compared to the previous year. These are workers typically brought in by agencies to manage short-term demand or time-limited projects.
This is on top of the $445 million reduction reported in the state’s 2023-24 financial report.
The Minns Labor Government is focused on disciplined fiscal management and closely monitoring agency expenses. It means the government can prioritise delivering the homes, infrastructure and essential services that communities need.
The Minns Labor Government’s Comprehensive Expenditure Review identified $13 billion in budget improvement and reprioritisation measures, ensuring the focus remains on rebuilding the essential services that families and households rely on.
Alongside financial savings, the Minns Labor Government is also delivering reforms to bolster the public service and have core work undertaken by public servants, rather than outsourced to external companies.
The NSW Auditor-General found that the previous Liberal-National Government spent more than $1 billion on external consultants without putting in place adequate procurement and management policies.
Last year, the Minns Labor Government introduced the Core NSW Public Service Work Policy, ensuring critical work is delivered in-house and decisions are made in the public interest. It also launched the Expert Advisory Network in the Premier’s Department to harness in-house expertise and reduce reliance on external consultants.
Quotes attributable to Minister for Finance Courtney Houssos:
“We are restoring the budget to a sustainable footing, and these results show our disciplined approach is working.
“We want to see more of taxpayers’ money getting better outcomes for our students and creating safer communities, and less handed over to external contractors and consultants.
“Reducing spending on contractors and consultants is about more than saving money, it’s about rebuilding capability within the public sector. Initiatives like the Core Work Policy and Expert Advisory Network are ensuring critical work is done in-house.
“Our focus on responsible financial management is delivering real outcomes as we focus on delivering the essential services that families rely on.”
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