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Australian DOD confirms 12-month contractor crackdown

Outgoing Commanding Officer HMAS Canberra, Captain Jace Hutchison, RAN speaks to ship’s company of HMAS Canberra during a change of command ceremony onboard the ship while alongside Fleet Base East, NSW. Photo: LSIS Matthew Lyall.

The Australian Department of Defence has confirmed an internal moratorium on contracting personnel who have recently separated from Defence.

The Australian Department of Defence has confirmed an internal moratorium on contracting personnel who have recently separated from Defence.

The move follows a widely publicised investigation by the ABC Four Corners program into alleged continual inflated invoicing and billing by consulting firms for Defence projects. That program alleged consulting giant KPMG charged the department more than $1.8 billion over the past decade.

The new moratorium, confirmed by a Defence spokesperson, will restrict Defence managers from contracting any Defence Australian Public Service employee or part or full-time Australian Defence Force member who has separated from Defence within a 12-month period, into roles that should be undertaken by Defence people.

“Defence is committed to supporting the government’s plan to invest in the public service by identifying where work can be done more efficiently and effectively by public servants,” the Defence spokesperson said.

“The moratorium does not prevent recently separated personnel from employment with Defence industry partners, consultancies or outsourced service providers that work with Defence, just the return of those personnel to Defence into roles that would normally be performed by the APS.”

It’s understood the restriction, introduced on 7 August, will not apply to Reserves but will have a focus on contracting personnel who have recently separated from Defence into “above-the-line” contractor roles. Above-the-line roles are those undertaking work that could be performed by an Australian Public Service employee.

It’s understood it will also not be applicable to existing “above-the-line” contracting arrangements, commercial necessity and defence capability needs, compassionate measures, outsourced service providers or consultants with specific skillsets. A register will also be established to assist transitioning ADF members and veterans who are interested in APS roles.

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