In brief
This year’s budget contained measures related to employment and workplace relations, including funding for the Fair Work Commission and the Government’s plan to reduce spending on external consultants.
Key takeaways
The Australian Federal Government has announced in this year’s budget that it will:
- Reduce its spending on external consultants, contractors and labour hire;
- Provide funding of AUD 1.3 million to the Fair Work Commission; and
- Provide funding of AUD 5.3 million to the Construction, Forestry and Maritime Employees Union (CFMEU).
In more detail
Impact for businesses who contract to the government
The Federal Government has announced that it plans on achieving savings of AUD 2.7 billion by reducing its spending on external consultants, contractors and labour hire.
This is likely to have an impact on businesses who contract to the Federal Government, particularly in relation to travel, hospitality and property, which the government has specifically identified.
Funding for the Fair Work Commission
The Government has announced in this year’s budget that it will provide additional funding of AUD 1.3 million in 2026-27 to the Fair Work Commission to provide specailised support to small businesses navigating the fair work dispute and resolution system and Commission processes.
This may assist the Commission, who in February 2026, indicated that:
- Lodgments of claims for 2025-26 had increased by 40% over the previous three year average; and
- The increasing use of AI was leading to a significant increase in workload.
Funding to the Administrator of the CFMEU
In addition, the Federal Government will provide AUD 5.3 million over two years from 2026-27 to support the Administrator of the Construction, Forestry and Maritime Employees Union.
A copy of the Federal Budget papers can be found here.
Jeremy Hyman, Head of Communications, and Sky Friend, Business Development Consultant, have contributed to this legal update.