Angus Taylor, the Opposition Leader, hints at a potential revival of the Coalition's controversial policy to significantly reduce the Australian Public Service (APS). This policy, which was previously proposed by his predecessor, Peter Dutton, and advocated by Mr. Taylor as shadow treasurer, aimed to slash 41,000 public servants, primarily targeting roles based in Canberra. However, the focus on Canberra-based roles was criticized for lacking mathematical coherence, as only a small percentage of federal bureaucrats are based in the ACT.
In an interview with Sky News, Mr. Taylor acknowledged the importance of a government that is "fit for purpose" and effective in delivering the services Australians desire. He emphasized the need to focus on restoring living standards through lower taxes and addressing the cost-of-living crisis, with a particular emphasis on immigration. This stance comes after the Liberal Party's decision to oppose Labor's tax cuts at the 2025 election was deemed a mistake.
The Coalition's previous policy faced criticism for its retraction of a proposal to force public servants back to the office full-time, which was met with public backlash. Mr. Taylor's deputy, Jane Hume, has also faced scrutiny for her comments about "Chinese spies," drawing attention to the challenges of balancing policy implementation and public perception.
Despite the criticism, Mr. Taylor and Senator Hume have committed to addressing the cost-of-living crisis and restoring Australia's living standards. The Albanese government, meanwhile, has not ruled out a reduction in APS headcounts but maintains that the public service is currently "about the right size." However, some economists warn that Labor may have underbudgeted for public sector wages, potentially requiring significant adjustments to the APS.
Finance and Public Service Minister Katy Gallagher has stated that the government is not seeking to reduce the size of the APS and is instead focused on ensuring the public service has the necessary resources to manage the increasing pressures it faces. Department heads have been instructed to find savings by reducing non-wage costs, with a target reduction of $6.8 billion over four years from 2025-26.
