Around 1,000 jobs have been cut as part of a Services Australia contractor cull.

Services Australia has confirmed that at least 1,000 IT project-related roles are being cut before the end of this year as part of the Albanese government’s pledge to reduce the use of labour hire in the public sector. 

Centrelink and Services Australia have been reliant on contractors amid structural systemic work on core systems, including the massive Welfare Payments Infrastructure Transformation. 

“A number of commercial ICT contracts recently reached the end of their requirements. The contracts were for the provision of specialist ICT expertise to support Services Australia’s response to the COVID pandemic and the delivery of major projects such as the Welfare Payment Infrastructure Transformation and the Residential Aged Care Funding Reform,”  Services Australia General Manager Hank Jongen has told reporters.

“These projects have now come to an end.

“The contractors impacted by this change have provided specialised expertise and advice through a challenging few years. They’ve supported us to significantly bolster our ICT systems to meet unprecedented demand on our systems and services during emergencies such as the pandemic, and we thank them for their work.

“These contractors are highly skilled professionals, working in a high-demand field in the current tight employment market.”

Meanwhile, the Australian Tax Office (ATO) is expected to have to bring in around 1,000 specialists in coming months for a $1 billion compliance and assurance boost announced in the last Budget.