Public service growth to slow as spending brakes applied

By the Editorial Team · Tuesday, June 23, 2026

Queensland’s government will reduce staff across 13 departments over the next year to help manage its public sector wage bill projected at $40.5 billion by 2026-27, focusing new hires on frontline roles like healthcare, education, and policing. This strategy aims to slow wage growth from 5.4% next year to an average of 2.6% annually through 2029-30 while achieving $500 million in savings through staffing limits and reduced outsourcing.

Queensland’s government plans to reduce staffing levels across half of its departments over the next year in an effort to contain its public sector wage bill, which is projected to reach $40.5 billion in 2026-27. According to state budget documents, 13 departments—including Justice, Housing and Public Works, and Transport and Main Roads—will see staff reductions as the Crisafulli government seeks to limit growth in public service employment.

The administration is targeting savings of $54 million over four years by leaving 49 senior executive vacancies unfilled and capping the number of “non-frontline senior executives” at 793 for the coming year. Additionally, planned cuts to contracting and consulting roles form part of a broader $500 million savings strategy aimed at improving expenditure management.

Following a year in which the government hired approximately 8,693 additional public servants—42% of whom joined the health sector and 34% in corporate roles—Queensland will hire only 2,205 new staff in 2026-27, representing less than 1% growth. Recruitment will prioritize frontline services, including nurses, doctors, police officers, and teachers.

While the public sector wage bill is expected to grow by 5.4% next financial year, growth is forecast to slow to 2.7% in 2027-28 and average around 2.6% annually through to 2029-30. The government has pledged to curb public sector spending growth, nearly halving it from 4.9% in 2025-26. Efforts to achieve this include improved procurement coordination, better asset management, consolidation of office accommodations, and increased reliance on in-house public sector expertise to reduce outsourcing expenses.

The Education Department plans to open 22 new schools over the next four years but will increase staff by only 400 in 2026-27, a modest 0.5% rise. The new hires will focus on administrative roles aimed at reducing teachers’ bureaucratic burden, teacher aides, and chaplains for supporting students. To enhance safety in schools, the government will employ 139 workplace health and safety officers tasked with managing risks posed by violent or threatening individuals.

Police staffing will grow by 222 officers next year, a 1.1% increase following the addition of 1,600 officers in the last 18 months. Queensland Health will add 1,317 staff, a 1% increase to a workforce of 121,477. However, the department faces ongoing challenges as it missed key performance targets this year, including surgical waitlist times and emergency department transfer benchmarks.

The latest State of the Sector report by the Queensland Public Sector Commission highlights that women hold 56% of leadership positions and constitute two-thirds of the public service workforce, which reflects the gender composition of sectors such as education, healthcare, and social services. The workforce expanded at twice the rate of the state’s population this year, with 77% of public servants working from home in 2025, compared to 54% in 2024.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.