Jim Chalmers flags Labor reform agenda for public service in Treasurers Debate

Dr Chalmers told the National Press Club on Wednesday he believed the Coalition's decision to sideline multiple proposals for change in the 2019 major Thodey review of the Australian Public Service had been a "missed opportunity".

"There are opportunities to pick up and run with some of that agenda," he said.

"But part of that is investing responsibly in people in the public service so they can continue to deliver the high quality of services, the high quality of advice that we need in this country and that Australians deserve for their taxpayer dollars."

The major parties' economic spokesmen were asked at Wednesday's Treasurers Debate about their views on the public service ahead of the election.

Treasurer Josh Frydenberg said the government had relied more than ever before on the advice of departments such as Treasury and Health in the pandemic.

"We've also relied on them to implement the policies in record time, payments that have gone out to the community when they needed it most," he said.

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The public service has grown under recent Coalition budgets.

"But it's about making sure they work most efficiently and effectively because ultimately, they're paid by the taxpayer," the Treasurer said.

Dr Chalmers said it was "one thing to respect and admire the public service" but another thing to invest in its capacity.

He said part of Labor's policy to trim spending on outsourcing in the public service was to invest in the public service, especially where its capacity had been "hollowed out".