Secret report on cronyism comes back to bite Labor
A review into political favoritism that has been kept secret for more than two years has forced Labor to backtrack after its leaked recommendations revealed the reason.
The review, commissioned by Finance Minister Katy Gallagher, called for an end to politicized appointments in the public sector and a move to an independent, merit-based process.
But Labor has also appointed a list of former MPs, ministers and political allies to public sector boards and government bodies, as the coalition did when it was in government.
Current and past board appointments were not included in the review, and the process did not involve any specific individual.
The recommendations cover appointments to boards and bodies across all government portfolios, but the government has privately stated that not all recommendations will be accepted.
Senator Gallagher, who also served as public service minister, accused the former government of policing a “jobs for spouses” culture when he announced the review to strengthen the integrity of appointments.
The allegation cited allegations of nepotism and favoritism in public bodies as ministers used their discretionary powers to appoint political allies to key positions.
Senator Gallagher has been sitting on the findings of the review since August 2023 and says while it is not unusual for reports to be published without a government response, they cannot be made public because they are being considered by cabinet.
For example, investigations conducted by the government’s envoys on both Islamophobia and anti-Semitism were published in 2025 and official responses are awaited.
Australia’s former Public Service commissioner Lynelle Briggs has called for merit-based appointments to public sector boards rather than political board appointments, according to public sector sources familiar with the report but who could not speak publicly due to sensitivities involved.
Senator Gallagher’s office declined to comment.
The report has created a political headache for the Labor Party, which has vowed to end the culture of nepotism when it comes to power in 2022.
Senator Gallagher soon announced that he was looking forward to Ms Briggs offering “robust advice” on restoring integrity to public sector appointments.
Catherine Williams, executive director of the Center for Public Integrity, said it was unclear why the government did not make the report public two years later.
“If Ms Briggs has made genuinely robust recommendations, we look forward to the government treating their implementation as a matter of priority so that Australians can have confidence that public appointments are not just spousal jobs,” he told AAP.
One method publicly announced by another former civil service commissioner, Andrew Podger, and supported by independent MP Sophie Scamps, is an advisory committee that presents the minister with a shortlist.
The Minister would have to choose from this list.
Senator Gallagher was forced to publish the report by the end of 2025 at the behest of the Senate, following pressure from all non-government upper house members to punish Labor for keeping the report secret.
The finance minister had previously argued that it could not be published because it could harm cabinet discussions.
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