A government agency established to address Australia's housing crisis has spent nearly $13 million on consultants over a two-year period, according to documents released under Senate order. Housing Australia disbursed $12,884,942 on consulting services between June 2024 and February 2026.
Major Consulting Firms Benefit
The bulk of the expenditure went to large firms. Ernst & Young received over $4.3 million, while Deloitte earned $2.6 million. Mid-tier and specialist companies also secured substantial contracts: Paxon Consulting Group was paid $1.2 million, and MinterEllison Consulting received $1.08 million. Engineering firm ConnellGriffin billed $671,830, Coxswain Alliance earned $586,329, and Bevington Consulting was paid $553,775.
Smaller operators also benefited. Forvis Mazars received $315,055, Andefena Group $190,700, and O'Connor Marsden & Associates $131,281. Dozens of boutique consultancies, individual advisers, and communications firms were engaged, with minor contracts starting at $10,000 and miscellaneous deals adding $42,548. Overall, the agency spent more than $600,000 per month.
Contradiction with Government Promises
The spending contradicts the Albanese government's pledge to reduce consultant use and rebuild in-house capability, redirecting funds to frontline delivery. Housing Australia administers key policies, including the Housing Australia Future Fund and national programs for social and affordable housing.
Government sources noted that the $13 million spent is small compared to Housing Australia's total $23 billion housing expenditure. Labor promised before the 2022 election to curtail consultant use, but broader figures show spending remains high. Documents from 2024–25 indicate Labor spent nearly $1 billion on consulting contracts, exceeding the Morrison government's spending in 2021–22.
The Greens highlighted recent spending, claiming $76.5 million was committed to 90 consulting contracts in the first fortnight of the 2025–26 financial year, about eight percent of the previous year's total.
Government Response
The government insists it is reducing reliance on external advisers. A spokesperson for Finance Minister Katy Gallagher stated, "The Government is reducing the use of consultants for core public service work by rebuilding capability within the APS and bringing more work back in-house. We have established Australian Government Consulting as a new capability in the public service, attracting talented people into the APS and providing agencies with another option before they look to external consultants." The spokesperson added, "This budget reduces agency appropriations by a further $2.7 billion on non-wage related expenditure to continue pressure on the APS to reduce expenditure on external labour."
Opposition Criticism
Opposition housing spokesperson Andrew Bragg slammed the spending, arguing it exposed failings in Labor's housing policy. "Labor's $80 billion housing policy has failed. It builds 30,000 fewer homes than the last Coalition Government each year. Its main bureaucracy, Housing Australia, has wasted millions of taxpayer funds. Between June 2024 and February 2026, there was a staggering $12.9 million spent on consultants. This is just the latest salvo. Consultant fees totalled $7.1 million in 2023–24."
Housing Market Data
New ABS data released Tuesday show building approvals fell to 16,710 dwellings in April 2026, down 3.4 percent on the previous month and well below the National Housing Accord target of 20,000 approvals per month. Houses made up 61 percent (10,215), with apartments and other dwellings at 39 percent (6,495).
The government points to commencements data as a better measure of activity. In the December quarter of 2025, new private sector house commencements hit 28,469, down 0.9 percent on the previous quarter but up 7.6 percent year-on-year. "Other residential" commencements, including apartments, soared to 23,849, up 23.4 percent quarter-on-quarter and 63.7 percent year-on-year.
Bragg claims Housing Australia itself has failed to build homes. "The taxpayer is not getting value for money. It seems core Housing Australia functions are being continually outsourced to consultants for little in return - and without any cost-benefit analysis," he said. "Since its inception in 2023, Housing Australia has only built a handful of houses. Labor claims it may be over 1,000, but most of these are existing homes purchased rather than new builds. Labor has built bureaucracy, not houses."
