A damning independent review has exposed a workforce in crisis within the Prime Minister's own department, citing widespread burnout, rapid staff exodus, and a damaging over-reliance on Canberra-based expertise.
Strain and Splintering in the Heart of Government
The capability review of the Department of Prime Minister and Cabinet (PM&C), made public on Thursday, paints a picture of an agency under severe strain. The department, which employs more than 1400 staff to advise the Prime Minister and cabinet, is struggling with direction and retention.
The team managing critical cabinet processes was highlighted for particularly high staff turnover. Overall satisfaction within the cabinet support division plummeted to 79 per cent last year, a sharp fall from 91 per cent in 2024.
Reviewers found that key functions had "splintered off" from the Cabinet Division, leading to poor coordination and inconsistent processes. "Instead of providing strategic oversight, Cabinet Division has defaulted to a compliance role," the report stated.
An Unrelenting Workload and a Top-Heavy Structure
The pressure on staff is intense. Around 40 per cent of PM&C employees reported feeling burnt out, blaming an "unrelenting" volume of urgent work. The 2025 APS Employee Census revealed that 35 per cent of the department's staff plan to leave within the next year—a rate 14 percentage points above the Australian Public Service average. More than 10 per cent want to leave "as soon as possible".
This churn, ranging from 8 to 55 per cent in some divisions, creates a vicious cycle. It burdens remaining staff with extra training and prevents vital institutional knowledge from being retained.
The review also identified a major structural flaw: PM&C is "very top-heavy" compared to the broader APS, with no clear path for career progression below the Senior Executive Service level. Staff complained that promotions often rewarded technical skill over management ability, leading to poor leadership that hampered their work.
A Prescription: Look Beyond the Capital
To address these deep-seated issues, the review delivered a clear prescription: the department must break out of the "Canberra bubble". It recommended actively recruiting more staff to be based outside the ACT over the next four years.
Currently, a staggering 90 per cent of PM&C's workforce is located in Canberra. Diversifying its geographical footprint is seen as essential not only for sustaining operations but also for addressing critical skill gaps, particularly in digital expertise.
Department Secretary Dr Steven Kennedy, who earns an annual salary of $1,035,680, welcomed the findings. The former Treasury chief, appointed after Labor's 2025 election win, said the department was already acting on the review's recommendations.
"The review acknowledges work already underway to strengthen our capability across a range of critical areas," Dr Kennedy said.
