The US Department of Government Efficiency (DOGE), formerly led by Elon Musk and Vivek Ramaswamy, has sparked global buzz by claiming to unearth billions in wasteful spending, from grants for pineapple juice marketing in Benin to Social Security payments to the deceased. With Australia's federal budget hovering around $700 billion annually and a public debt approaching $1 trillion, what might a similar initiative, an "Aussie DOGE" reveal down under? From bloated consultancies to runaway mega-projects, the potential for savings is massive, but so are the political landmines. Let's explore the scale of waste an Aussie DOGE could target, why it matters, and whether it's the right fix for Australia's fiscal woes.
Australians have long grumbled about governments splashing cash on big accounting firms. You might've heard the figure, $20 billion, tossed around for consultancy spending. That's close to the mark: federal outlays to the big firms surged 1,270% from 2013 to 2023, peaking at $2-3 billion annually before recent cuts trimmed it way down to $1.5 billion. Add state governments, and the total over a decade could easily hit $20-30 billion. These firms often provide advice the public service could handle, creating a "shadow workforce" that's ballooned as bureaucracy outsources its brain.
An Aussie DOGE could zero in on this. For example, in 2023, three large firms pocketed $470 million for vague "management advisory services." Why pay external consultants to duplicate internal expertise? Recent slashes saved $624 million in one year, but that's a drop in the bucket. A ruthless audit could save $1-2 billion annually by bringing expertise in-house and scrutinising every contract for value. The catch? These firms have cosy ties with Canberra, expect fierce pushback from vested interests.
Australia's history of infrastructure blowouts reads like a tragicomedy. The National Broadband Network (NBN) ballooned from a $4.7 billion estimate to $51 billion, delivering patchy internet that frustrates users daily. The 2021 cancellation of the French submarine deal cost $5.5 billion in penalties, only to pivot to AUKUS, now projected at $368 billion over decades. Snowy Hydro 2.0, initially pegged at $2 billion, is now $12 billion and counting, with delays piling up. These aren't isolated flops, cost overruns and cancellations have squandered tens of billions.
An Aussie DOGE could enforce stricter cost-benefit analyses and contestability reviews, potentially saving $10-20 billion by halting or rethinking projects before they spiral. The challenge is political: mega-projects are often tied to jobs or regional votes, making cuts a hard sell. Plus, the AUKUS deal's geopolitical weight means savings might take a backseat to strategic posturing.
Australia's public sector has swelled, with federal staffing up 20% since 2019 to over 160,000, costing $25-30 billion yearly in wages alone. Add state bureaucracies, and the bill grows. Duplication between federal and state roles, think health or education admin, wastes an estimated $10-20 billion annually. The National Disability Insurance Scheme (NDIS), projected at $50 billion this year, is riddled with fraud (up to $2 billion yearly) and over-servicing, far exceeding initial estimates. Welfare overpayments and inefficient grants, like the 1,258 Indigenous corporations failing to report millions in taxpayer funds, add to the mess.
An Aussie DOGE could streamline agencies, cut overlap, and crack down on fraud, potentially saving $15-25 billion a year. But slashing headcounts or sacred programs like NDIS risks public backlash, especially when frontline services are hit. The US DOGE's mass layoffs led to delays and dysfunction, Australia would need a smarter scalpel to avoid the same.
The push for Net Zero has sparked spending sprees on renewables, with the Capacity Investment Scheme funnelling taxpayer cash into solar and wind projects, often with shaky transparency. A "tsunami of solar waste" looms as panels from the rooftop boom hit landfills, with recycling infrastructure lagging, cleanup costs could reach hundreds of millions. Critics like @MRobertsQLD on X call these "rorts," pointing to subsidies for unproven tech like green hydrogen. An Aussie DOGE could save billions by auditing these programs for commercial viability and long-term liabilities, but green ideology runs deep in Canberra, making cuts a political minefield.
Healthcare, at $230 billion federally plus state contributions, is a behemoth. Up to 30%, $20-30 billion, may be lost to "technical inefficiencies" like unnecessary tests or meds. Aged care scandals and NDIS blowouts highlight poor oversight, while childcare costs keep climbing despite reforms. An Aussie DOGE could target these inefficiencies, saving $10-15 billion annually through better procurement and fraud detection. But cutting here risks harming vulnerable groups, and progressives would cry foul, as seen in US DOGE debates where defenders of social programs resisted blanket cuts.
Australia's fiscal outlook is grim: a $1.83 trillion US deficit dwarfs our $900 billion debt, but our spending pressures, NDIS, aged care, pensions, are growing faster than past efficiency drives like Tony Abbott's 2013 audit could handle. An Aussie DOGE could save $50-100 billion annually by targeting consultancies, project overruns, bureaucratic duplication, and poorly vetted programs. But unlike the US, where DOGE's $170 billion in savings fell short of its $2 trillion goal, Australia's smaller scale demands precision, not a sledgehammer.
The US DOGE faced criticism for short-term cuts that spiked long-term costs, like gutting health programs that prevent costly diseases. Australia must avoid this trap, savings should fund prevention, not just pad budgets. Political resistance is another hurdle: unions, consultants, and green advocates will fight tooth and nail. And as Ludwig von Mises noted, government lacks the market's profit-loss feedback, so "efficiency" isn't just about cuts, it's about redefining what government should do.
An Aussie DOGE could expose billions in waste, $20-30 billion from consultancies, $10-20 billion from infrastructure flops, $15-25 billion from bureaucratic bloat, and more from poorly managed health and green initiatives. But it's not a silver bullet. Without clear priorities, say, protecting essential services while slashing fat, cuts could spark chaos, as US workers reported delays from DOGE's red tape. Transparency, like DOGE's promise to post all savings online, would help Aussies hold reformers accountable. Ultimately, an Aussie DOGE could force a reckoning with our bloated system, but only if it balances fiscal discipline with the public's real needs.