Story perspectives

ATO Cuts Outsourcing Budget, Senator Calls It Insufficient

12/12/2025

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Summary

Story summary

The Australian Taxation Office will cut outsourced work by $500,000 in the current financial year.
Senator Barbara Pocock called the reduction woefully inadequate amid scrutiny of the ATO’s reliance on external contractors.
The Department of Employment and Workplace Relations (DEWR) has not set similar targets, with 15% of its workforce engaged through external contracts.
Experts say outsourcing often yields lower-quality jobs and services and can affect vulnerable populations.

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Story summary

The Australian Taxation Office will cut outsourced work by $500,000 in the current financial year.
Senator Barbara Pocock called the reduction woefully inadequate amid scrutiny of the ATO’s reliance on external contractors.
The Department of Employment and Workplace Relations (DEWR) has not set similar targets, with 15% of its workforce engaged through external contracts.
Experts say outsourcing often yields lower-quality jobs and services and can affect vulnerable populations.