The Parliamentary Joint Committee on Public Consultancy and Services Contracts Bill 2025 creates the Parliamentary Joint Committee on Public Consultancy and Services Contracts by establishing the Parliamentary Joint Committee on Public Consultancy and Services Contracts Act 2025. Under the Act, the Committee is composed of eight members (four each from the House of Representatives and the Senate) with the Chair drawn from the government and the Deputy Chair from the Opposition. The Committee is empowered to examine and report on public consultancy or services contracts referred by either House or the Minister.
Key provisions include:
The Bill responds to recommendations of the Senate Finance and Public Administration References Committee and aligns the scrutiny of consultancy spending with the existing parliamentary review process for major public works projects under the Public Works Committee Act 1969.
Closing the Oversight Gap. The Australian Government spent approximately 3.272 billion dollars on consultancy and services contracts in the 2022–23 financial year[1]. Unlike major public works, these contracts lack a dedicated parliamentary review process. Establishing a Joint Committee ensures that comparable levels of scrutiny are applied, reducing the risk of wasteful or ill-conceived expenditures.
Enhancing Transparency and Public Confidence. By empowering Parliament to review and report on high-value consultancy engagements, the Bill promotes open government and informed debate. This transparency helps citizens hold the executive to account and fosters trust that taxpayer funds are used effectively.[Judgment]
Promoting Value for Money. Mandatory referral for contracts above 2 million dollars and clear reporting requirements create incentives for agencies to justify the need for external consultants, negotiate better terms, and consider in-house expertise where appropriate, thereby delivering greater overall public benefit.
Explanatory Memorandum, Parliamentary Joint Committee on Public Consultancy and Services Contracts Bill 2025, p. 1.
While accountability is important, the Bill duplicates existing oversight mechanisms such as the Australian National Audit Office and Senate committee inquiries, adding an extra layer of bureaucracy that may not yield commensurate benefits.
The requirement to refer every contract over 2 million dollars to a standing committee and observe a five sitting day review period risks delaying the delivery of critical services, particularly in fast-moving policy areas.[Judgment] Urgent exemptions rely on Chair and Deputy Chair consent, introducing uncertainty and potential politicisation of what constitutes “urgency.”
These procedural hurdles may discourage agencies from engaging specialized external expertise when needed or drive up costs through protracted review processes, ultimately undermining the efficiency the Bill seeks to achieve.
2025-07-30
Senate
Before Senate
COLBECK, Sen Richard
Unspecified
Anti-Corruption, Democratic Institutions, Financial Regulation