The Department of Defence on Monday implemented a moratorium on entering contracts with former staff within 12 months of them leaving the department.
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The moratorium applies to outsourced positions which would normally be undertaken by APS or ADF personnel, known as "Above the Line" roles, rather than outsourced service providers or consultants with specialist skills.
Secretary Greg Moriarty and Defence Force chief Angus Campbell issued the joint directive last week, citing the department's commitment to reducing its reliance on temporary labour.
Analysis by The Canberra Times has revealed the department reported $26 billion worth of contracts last financial year, which includes multi-year contracts.
Defence has committed to cutting 2000 contractor roles by the end of 2024, and plans to save $154 million next financial year by making cuts to external labour, advertising, travel and legal expenses.
It comes ahead of an ABC report on Monday which will focus on the department's use of contracts.
The moratorium will include exceptions where there are compassionate reasons for engaging a recently separated APS or ADF employee, where there is commercial or capability necessity, and pre-existing negotiations.
It will not apply retrospectively.
