For the sake of the budget and productivity, shrink the public service

Wednesday 25 March 2026

Former NSW Senior Trade and Investment Commissioner Mike Newman appeared on John Anderson’s podcast, where he argued convincingly that Australia’s bureaucracy is excessively large compared with other advanced economies.

Newman claimed that Australia employs 2.6 million bureaucrats, costing $250 billion per year.

By comparison, Japan – a nation with 4.5 times the population – has 3.4 million public servants, costing roughly the same amount per year.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.