In 2018, the government made an election commitment to reduce spending on contractors and consultants. This was in response to its concerns about the Victorian Public Service relying too much on these services, and therefore losing internal skills and knowledge. Targets were introduced in 2 main categories – professional services and labour hire – to assist departments to reduce their spending. 

Despite this commitment, overall public service spending on professional services increased between 2018 and 2022 while spending on labour hire decreased.

We made 5 recommendations to address 3 key issues. The relevant agencies have accepted our recommendations in full or in principle. 

This section summarises our key findings. The following sections detail our complete findings, including supporting evidence. 

When reaching our conclusions, we consulted with the audited agencies and considered their views. The agencies’ full responses are in Appendix A. 

Why we did this audit

Download a PDF copy of Appendix G: Acronyms, abbreviations and glossary.

Download a PDF copy of Appendix F: Financial measures and targets.

Download a PDF copy of Appendix E: VicTrack lease arrangements.

Download a PDF copy of Appendix D: Results of material entity audits.

Download a PDF copy of Appendix C: Audit opinion on the AFR.

Download a PDF copy of Appendix B: About this report, the AFR and our financial audits.

Download a PDF copy of Appendix A: Submissions and comments.