Defence and the Tax Office emerged the clear winners of the recent federal budget, while the majority of government agencies were forced to tighten their belts.
More than 60 per cent of agencies had the same or lower staffing level for 2026-27 compared to the previous financial year.
The defence portfolio emerged as the undisputed centrepiece of the government's staffing strategy, commanding a massive workforce expansion that dwarfed all other sectors.
Total resourcing for the portfolio will surge to 112,591 jobs in the 2026-27 financial year from about 109,435, an increase of more than 3100.
The figures are based on average staffing level (ASL) which calculates the average workforce capacity over a specific period by converting all employee hours into full-time equivalents. The metric is used to determine resourcing.
The Department of Defence is expected to absorb an additional 2857 jobs across its military, reserve and civilian branches to fortify national security capabilities.
The budget delivered on the 2026 National Defence Strategy which has provided $53 billion over the next decade beginning 2026-27 and an additional $14 billion over the next four years.
Meanwhile, the Australian Submarine Agency had its staffing levels skyrocket by about 37 per cent, as it continues to be one of the fastest-growing entities in the public service.
The submarine agency received a significant funding boost, as its operating budget for the following financial year jumped by about 33 per cent from $385 million to $512 million.
While the defence portfolio has had historic growth, the veterans' affairs department emerged as a notable exception to the trend. The agency's staffing levels were revised downward from a 2025-26 estimate of 3528 ASL to a 2026-27 projection of 3417 ASL.
In his budget speech, Treasurer Jim Chalmers said, "Economic security, economic resilience, and national security are now one and the same".
The Australian Taxation Office secured one of the federal budget's largest personnel boosts, with 1472 jobs to be added to its workforce.
About $700 million was provided to the tax office to target fraud and system abuse, while reducing red tape and simplifying compliance for everyday workers and small businesses.
Front-line agencies Services Australia and the National Disability Insurance Agency had two of the largest reductions in staffing levels, dropping a combined 1344 positions.
Finance and Public Service Minister Katy Gallagher said staffing levels at Services Australia had originally spiked as the agency was "unable to meet the good outcomes for customers" and required a surge in resources to bring down wait times.
Senator Gallagher said long-term staffing would be reassessed as technology and myGov improvements drive "workflow efficiencies".
"As an exercise in fiscal discipline, we want to make sure that we're not baking in staffing numbers where we're driving workflow efficiencies as well," she said.
Despite the reduction in staffing levels, the government has committed $1.7 billion over two years from 2026-27 to Services Australia specifically to manage claims backlogs and maintain service standards.
The climate department lost 378 positions, even as the government increased staffing for agencies designed to help manage the net-zero transition such as the Clean Energy Regulator by 81 positions.
The drop in core climate department numbers will be balanced by the establishment of the National Environmental Protection Agency, which will absorb significant regulatory responsibilities and personnel from July 1, 2026.
The new independent regulator will consolidate functions currently within the department, taking over responsibility for environmental assessments, project approvals, and law enforcement as part of a $500 million reform package.
The Australian Competition and Consumer Commission had its workforce slashed by nearly 300 roles, with the commission moved to the Australian Energy Regulator which monitors the wholesale and retail energy markets and networks.
