Federal Agencies Report $99 Million in Redundancies
Three Australian government departments paid out nearly $100 million in staff exit costs during the 2025-26 financial year.
Updated on Oct. 23, 2026 in Employment
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The Home Affairs, Education, and Agriculture departments spent a combined $99.3 million on redundancy payments throughout the 2025-26 financial year. The Home Affairs department alone processed 679 employee departures through its voluntary redundancy programme.
Why it matters
These significant exit costs highlight a broader trend of workforce restructuring across the federal public service as agencies work to address shifting budget allocations. The payouts occurred alongside ongoing reliance on external contractors for specific project and programme needs.
Government statistics confirm a combined $99.3 million in staff exit costs across three federal departments during 2025-26, compared to much lower outlays in the prior 2024-25 period. The total impact of these departures on long-term agency operational capacity remains unknown.
The players
Department of Home Affairs
This federal agency is responsible for national security, law enforcement, and border management in Australia.
Department of Education
This government department oversees national policies relating to early childhood, school, and higher education.
Department of Agriculture
This federal body manages policies and programmes to support Australia's agricultural, fisheries, and forestry industries.
National Indigenous Australians Agency
This agency provides advice to the government on whole-of-government policies and programmes for Indigenous Australians.
Datacom Connect
This is a private service provider that holds a multi-million dollar outsourced client inquiry services contract with the government.
The details
The Home Affairs department accounted for the bulk of these expenses, paying $74.9 million in redundancies compared to just $7.9 million the previous year. Meanwhile, the Education department saw exit costs rise to $13 million, and the Agriculture department's expenses reached $11.4 million.
Timeline
2017: Datacom Connect contract signed
2024-25: Prior financial year comparison period
2025-26: Financial year of redundancy payouts
Q1 2026: Home Affairs confirmed single employee departure
mid-2027: Datacom Connect contract expires
Macro View
This wave of redundancy payments follows a pattern set by the Australian Public Service workforce restructuring guidelines. These figures reflect a broader shift in federal personnel management compared to historical trends in public sector hiring.
While these payments represent internal government budget shifts, they signal changing operational priorities within major federal service departments. Taxpayers may monitor how these workforce changes influence the quality and speed of government services in their local area.
The takeaway
Large-scale redundancy programmes are a primary tool for government agencies to align staff numbers with shifting budgetary priorities. Readers should note that such restructurings often occur alongside ongoing reliance on external labour hire for specialist project tasks.
Further reading
For more on the current state of the labour force, read the latest analysis in the Employment section.
Source note: This article includes information reported by The Canberra Times.
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