New data reveals Australian public servant salaries, job numbers exploded

Salaries of Australia’s dramatically expanding public service have skyrocketed by another seven per cent in the last year, as Treasurer Jim Chalmers is urged to rein in rampant spending driving up inflation.

Australian Bureau of Statistic data, released Thursday, revealed the startling increase in the cost of public sector wages to Australian taxpayers - which is double the level of inflation - with the rising cost “driven by a combination of underlying wage growth and ongoing demand for health and education services within state and territory governments”.

ABS head of labour statistics, Sean Crick, said “health care and social assistance recorded the strongest rate of growth in 2025-26 for both jobs and wages”.

“Wages paid increased by $5.5 billion (+8.5 per cent) to $70.9 billion in 2025-26,” he said. “Education and training jobs increased by 17,400 to 790,800, while wages paid rose by $3.2 billion to $64.6 billion.”

He said public administration and safety jobs also spiked by 4,600 to 883,300, while wages paid rose by $5.6 billion to $96.5 billion in a 6.2 per cent increase.

Following Tuesday’s rate hike, Treasurer Jim Chalmers conceded the conflict in Middle East is “not the only driver” of Australia’s stubbornly high inflation, but denied it was a result of government spending.

“Today’s decision was widely expected, but that doesn’t make it any easier for Australian families and businesses to absorb,” the Treasurer said shortly after the RBA confirmed the fifth interest rate hike for the year.

“Public demand growth has eased quite substantially at a time when private demand has tripled,” the Treasurer told reporters in Canberra.

“Our budgets are not what’s putting upward pressure on inflation, but we can play a helpful role and that’s what we intend to do.

“We’re helping with the cost of living at the same time as we manage the budget responsibly.”