Federal budget 2023: Australian Public Service grows by 10,000 as labour hire conversion gets under way

The figure in the Albanese government's May federal budget marks the single biggest year-on-year increase of the bureaucracy in at least 15 years.

Public Service Minister Katy Gallagher said she was "proud" of the changes but said there was still "more work to do".

Over the weekend, the federal government's audit into the public service revealed a "shadow workforce" of external labour hire workers had reached 53,900 during 2021-22 at a cost of $20.8 billion.

The biggest winner in staffing bumps is Defence with an additional 2610 spots across public servants and military personnel.

The Department of Defence will gain nearly 1000 new public servants, another 400 will go to the Department of Veterans' Affairs while the military will be lifted by 1200 to 59,673.

Under the Climate Change portfolio, the department will get a bump of more than 1400 staff members while the Bureau of Meteorology and the Murray-Darling Basin Authority each gain more than 100.

A total of $18.5 million from the APS Capability Reinvestment Fund will be put toward key initiatives over the next two years.

An in-house consulting service will be set up within the Department of the Prime Minister and Cabinet for $10.9 million while $3.4 million will be directed to boosting First Nations employment within the APS.

The two initiatives will cost the government $14.3 million - a figure which includes $4.2 million in existing resources.

Another $8.4 million will go toward capability improvements, which covers cultural competency training and gender impact analysis training.

Beyond staffing increases and fund initiatives, a number of departments will be given cash injections to cover shortfalls in funding.

The Agriculture Department's looming budget blackhole will be bailed out with a one-off $127 million payment to ensure it can "meet its financial commitments as they fall due, while continuing to deliver its core functions".

Meanwhile the Department of Foreign Affairs and Trade will be given $376.9 million over the next four years, and $77.3 million beyond in each year, to deal with funding shortfalls and improve overseas communications network.

Another $3.1 million will be delivered to the department for its participation in the design and build of the secretive National Security Office Precinct.

The federal government's contracting portal, AusTender, will also get a facelift of sorts to "improve transparency and establish a supplier portal for panels".

A total of $18.1 million will be given to the Department of Finance over the next four years to improve the procurement process for businesses as part of the "Buy Australian Plan".

Within that measure, the federal government's contracting portal, AusTender, will also get a facelift of sorts to "improve transparency and establish a supplier portal for panels".

The federal government's oversight agencies have been thrown funding lifelines after a number were under threat by terminating measures.

In Senator Gallagher's budget opening statement, a "culture of integrity" is being prioritised across the bureaucracy.

Part of the work includes the opening of the National Anti-Corruption Commission on July 1 while the Public Interest Disclosure Act will be further overhauled in a second stage of reforms.

National security watchdogs, such as the Inspector-General of Intelligence and Security, the Independent National Security Legislation Monitor and the Parliamentary Joint Committee on Intelligence and Security, have been handed funding over the next few years to be taken from existing resourcing across the national intelligence community.

The Inspector-General's office gets $12.2 over the next three years, while the legislation monitor will receive $12.4 million over the forward estimates to undertake national security and counter-terrorism law reviews.

The Office of the Special Investigator also receives $115.1 million from Defence's purses in the next two years to continue its investigations into Afghanistan war crime allegations.

A standalone privacy commissioner will be established within the Office of the Australian Information Commissioner at the cost of $44.3 million over four years, with an $8.4 million per year ongoing.

The Australian National Audit Office, best known for its role in revealing the "sports rorts" saga, has also been handed $14.4 million over the next four years to help it deliver 45 performance audits in 2023-24 and 48 the following year.

It will then receive $3.9 million ongoing from 2027-28.