Key facts
- Deloitte received A$2.2 million to administer grants for child care workforce upskilling.
- The Australian government's policy defines grant management as core work for public servants.
- The contract was initially signed in May 2024 and has been extended.
- The Australian Greens and the Community and Public Sector Union criticized the outsourcing.
- Deloitte was praised for using automation to fulfill the contract.
Deloitte was awarded a contract worth A$2.2 million to administer grants aimed at upskilling the child care workforce, a function that the Australian government's policy designates as core work for public servants. This contract has drawn criticism from the Australian Greens and the Community and Public Sector Union, who argue that the Albanese government is not adhering to its commitment to reduce reliance on external contractors.
The government had previously implemented new rules in 2024 defining program delivery and grant management as essential in-house functions. Despite this, Deloitte secured the deal, which was initially inked in May 2024 and subsequently expanded. The contract's duration has been extended, with the latest agreements pushing its completion date to September 2027 or 2029.
An independent review acknowledged Deloitte's effective use of automation in fulfilling the contract. However, critics contend that such outsourcing remains costly and unnecessary, contradicting the government's stated platform. Records from AskTender show that Deloitte has secured a total of six contracts with Comcare, amounting to A$6.2 million.