New data from Auditor-General’s Office details massive spend on external consultants by Victorian government departments

The Victorian government has spent a staggering amount on consultants in the past five years, with new figures revealing one under-fire firm raked in the second most of any company.

The Victorian government has spent $671m on consultants in the past five years. Picture: Mark Stewart

The Andrews government has spent $671m on consultants in the past five years, with new figures showing under-fire Price Waterhouse Coopers raked in the second most of any firm.

Data released on Thursday by the Victorian Auditor-General’s Office has detailed the massive spend on external consultants by state departments ahead of a report into the topic later in the year.

It shows that between the 2017-18 and 2021-22 financial years these firms collected $671m in taxpayer funds and that more than half of this money, $362m, went to the top five companies.

KPMG was the most popular choice for the state, attracting $117m over this period.

But PwC was second on the list with a combined take of almost $80m.

The release of the figures come as PwC has been engulfed in a major crisis over a tax leak scandal.

The firm advised the Commonwealth government on laws to crack down on multinational tax dodging but then later allegedly shared confidential briefings with staff and corporate clients affected by the changes.

The Australian Federal Police has launched an investigation and the federal government is considering further action.

Premier Daniel Andrews has said his government has sought assurance from Price Waterhouse Coopers that it hadn’t leaked information about Victoria. Picture: Nicki Connolly

Last week, Premier Daniel Andrews said his government had sought assurance from the firm they hadn’t leaked information about Victoria.

But he did not rule out further action and said he would wait until he saw what steps were taken by the federal government.

Victorian Greens deputy leader Ellen Sandell said the Victorian government should pause PwC’s contracts.

“This is a company that has been given huge amounts of Victorian taxpayer dollars to design projects like the Suburban Rail Loop – how can we be sure they aren’t passing on this information to benefit their other clients?” she said.

“There are fundamental conflicts of interest here but the Labor Government keeps burying their heads in the sand, and giving millions of taxpayer dollars to consultants to profit a wealthy few.”

The Auditor-General’s data also shows state spending on consultants is on the rise.

In 2017, $110m in taxpayer funds went to firms and this soared to $167m in 2021 and in 2022.

A state government spokesman said consultant spending increased during the crisis of responding to Covid.

“Now that the worst of the pandemic is behind us we will reduce this spending – as we promised during the election campaign and bolstered with further measures detailed in the budget,” he said.

Community and Public Sector Union state secretary Karen Batt said the data showed that “self-interested consultants” had captured the Andrews government.

“It’s obscene to continue wasting money on consultants while cutting your own workforce which destroys public sector capability and morale,” she said.