November 2026

Australia has a serious productivity problem, a government spending problem and a growing army of bureaucrats who are being paid considerably more than the people whose taxes fund their salaries.

And it’s time we did something about it.

Former Prime Minister John Howard has highlighted the problem, warning that Australia’s expanding public service is strangling productivity and damaging the economy.

The National News Network on 27 October reported Howard’s concerns about excessive government spending, rising public sector employment and the increasingly generous remuneration enjoyed by bureaucrats.

Howard’s assessment of Australia’s economic problems was straightforward: too much spending, too much taxation and too little economic reform.

He’s absolutely right.

The figures are extraordinary.

According to ABS data cited in the article, public sector employees earn an average of $2,263 per week, compared with $2,034 for private sector workers.

That’s an 11% premium for working in the public sector.

Public sector wages have also increased faster than private sector wages for six consecutive quarters.

And that’s before we consider the additional benefits.

Australian Public Service employees receive 15.4% superannuation, compared with the standard 12% for private sector workers.

They also receive a minimum of 18 days personal and carers leave, compared with 10 days in the private sector.

At the top end, the remuneration packages become even more extraordinary.

Three senior public servants are receiving annual salaries exceeding $1 million, including the heads of the Department of Prime Minister and Cabinet and Treasury.

Meanwhile, small business owners are battling soaring costs, declining margins, excessive regulation and weakening consumer demand.

Australian Chamber of Commerce and Industry chief executive Andrew McKellar says one in three small businesses has considered closing its doors.

While the people generating economic activity and paying taxes struggle to survive, the taxpayer-funded bureaucracy continues to expand.

Australia now has around 2.6 million public sector employees across federal, state and local governments.

Public sector employment grew another 3.3% in 2025.

Of course, these figures include essential frontline workers such as nurses, teachers and emergency services personnel. Nobody is suggesting we should indiscriminately slash those services.

But there is a fundamental difference between delivering essential services and building ever-larger bureaucracies to administer, regulate and supervise the people who actually deliver them.

We have created an economy where governments constantly invent new rules, reporting obligations, compliance requirements and administrative processes.

Then they employ more bureaucrats to administer them.

Businesses must employ more people and spend more money complying with them.

And the taxpayers ultimately fund the entire exercise.

It’s a vicious cycle of bureaucracy feeding bureaucracy.

The Federal Government argues that higher public service employment is necessary to rebuild capability and reduce reliance on external consultants.

That may justify some positions, but it does not justify unlimited growth in the size and cost of government.

Australia desperately needs a serious program of public sector reform, including reducing administrative headcounts, eliminating duplicated functions and dismantling unnecessary regulation.

We also need governments to demonstrate that taxpayers are receiving value for money.

At a time when inflation remains stubbornly high and interest rates are punishing households and businesses, reducing government expenditure should be an urgent national priority.

Australia doesn’t need more bureaucrats.

It needs fewer bureaucratic obstacles, less government waste and a much stronger private sector.