While the federal government champions a "Future Made in Australia," its own lucrative advertising contracts are bypassing the national capital, a new analysis shows.
Capital Firms Missing from Key Panel
A Canberra Times investigation has found that not a single agency based in the ACT is listed on the federal government's primary panel for high-value advertising campaigns. This creates what critics describe as a "closed shop" system, where the vast majority of taxpayer-funded advertising expenditure flows to suppliers headquartered in Sydney and Melbourne.
The gateway for major campaigns is the Government Communications Campaign Panel (GCCP). This panel is mandatory for any campaign valued at more than $500,000. Of its 20 approved suppliers, 11 are based in New South Wales, eight in Victoria, and one in Queensland. There are no ACT-based suppliers listed.
A spokesperson for the Department of Finance defended the process, stating the tender was an "open approach to market" with no geographical restrictions. The department said suppliers were selected based on "demonstrated capability and capacity" to ensure "the highest standard and best value for money."
Where the Millions Are Spent
In the 2024-25 financial year, the Australian government spent a total of $265.3 million on campaign advertising. The analysis reveals that contracts for creative development and strategy are heavily concentrated among a small group of multinational agencies located outside Canberra.
The most significant expenditure involves Universal McCann, which acts as the sole supplier for the government's Central Advertising System. The company won the initial tender in 2018 and secured the subsequent contract in 2024, locking in a single-supplier monopoly on federal media buying for a decade. In 2024-25 alone, the agency managed $204.1 million in media placement.
Beyond media buying, other major contracts included:
- The Monkeys (part of Accenture Song): Secured about $7.6 million, including $3.2 million for the Future Made in Australia campaign.
- VML: Received $7.1 million for creative services for Defence Force Recruiting in 2024-25.
- Clemenger BBDO: Awarded multiple contracts for campaigns like National Primary Care Health Workforce and Fee-Free TAFE.
The department stated that large external contracts were necessary because "specialist communications capabilities" were "not available at scale across the Commonwealth."
Local Industry Reaction and Future Changes
Representatives from several Canberra-based companies, who spoke anonymously to protect future commercial prospects, expressed mixed views. Some questioned whether the focus on Sydney and Melbourne firms was based on perception rather than an actual capability gap. Others argued that simply being located in Canberra should not guarantee a contract.
However, they uniformly rejected the idea that the national capital lacks the skills to deliver large Commonwealth campaigns.
The Department of Finance confirmed it is progressing a new whole-of-government arrangement to supersede the current panel, with tenders having closed in August 2025. However, the new model will retain the same five service categories—market research, creative, PR, multicultural, and First Nations communications—suggesting the structural bias towards larger agencies may continue.
The data also showed a continued shift to digital platforms, with spending on social media like Instagram, Facebook, and YouTube reaching $97.5 million in 2024-25, a 28 per cent increase from the previous year.
