Labor's Bureaucrat Black Hole

Media Release

Friday, 10 January 2025

Independent analysis has found a $7.3 billion black hole in Labor’s Budget, after Finance Minister Katy Gallagher failed to fund Labor’s binge on new bureaucrats and higher public service wages.

Minister Gallagher has failed to explain why she has not budgeted for a public service wages policy she championed and Australian taxpayers have to pay.

Not only has Minister Gallagher increased the size of the public service by 36,000 in under three years, but she has also agreed to an 11.4% increase in their wages.

Yet the Budget Papers she signed off in December show a flat line in public sector wages growth.

Stephen Smith from Deloitte Access Economics has said the only way that the Minister’s explanation could be correct would be a reduction in public servants - something she has explicitly ruled out.

Shadow Minister for Finance and the Public Service, Senator the Hon Jane Hume, said that Minister Gallagher must explain how she plans on paying for this massive unfunded wage rise.

“Minister Gallagher has questions to answer on her budget credibility. But when asked how this stacks up her answers made as much sense as her budget papers.

“Even leading budget economists can’t understand the claim by the Minister.

“Minister Gallagher can’t get her story straight because there is never a good reason for putting forward dodgy numbers.

“This questions the credibility of Labor’s entire Budget. What else are Jim and Katy trying to hide?”