It is expected to reduce administration and tendering efforts across departments and increase transparency through improved data and reporting. The new reporting requirements will begin by July 2021, starting with spending on financial management advisory services.
“The government has introduced new rules to require reporting on the total spend on contracts and consultancies from the 2020-21 year onwards, as well as to report the amount spent on the largest such contracts, to ensure consistency across all agencies,” Senator Cormann said.
Government agencies will also have to standardise the way they report on their spending on consultants and contractors in their annual reports.
The big four consulting firms booked more than $600 million in federal government contracts last financial year, with KPMG outpacing rivals to take about a third of the spend.
Defence was the biggest spender, entering into contracts worth $286 million with the big four in 2019-20. This was