C2025-05 Whole of Government Core Work Circular

The work of the NSW Government should be delivered by a highly capable government sector workforce. Government sector employees play a unique role in preserving the public interest and achieving public value. The community expects that government decision-makers are supported by expert and impartial advice.

Core Work is the type of work that the NSW Government must be set up to deliver in house. Overreliance on non-government sector resources poses risks to the long-term strategic capability of the Government Sector to deliver its statutory functions and ensure continuity of services for the people of New South Wales.

The NSW Government is committed to reducing reliance on external resources to deliver government services. The Core NSW Public Service Work Policy has been developed and is issued under this circular to deliver on this commitment and support a range of initiatives to meet community expectations. The Policy provides:

• definitions of the types of work that the NSW government sector must be set up to deliver in-house;

• the type of Core Work that must be done by government sector employees;

• the type of Core Work that should be done by government sector employees, some which should not be done by consultants;

• when agencies should build in-house capability to move away from procuring non-sector resources for core work; and

• clear criteria for when it is appropriate to procure non-sector resources to deliver core work.

The Policy recognises that building capability takes time and allows for an up to 3-year transition period. Some limited use of consultants and contractors for Core Work will be allowed during this period to minimise delivery risks. This Policy does not drive new expenditure and does not alter existing processes for Agency Heads to seek resources, conduct internal reprofiling or realignment to ensure capabilities to deliver Core Work.

Scope

The Policy must be applied by Government sector agencies within the Government Sector, as defined under the Government Sector Employment Act 2013. It does not apply to State Owned Corporations or Separate agencies within the meaning of the Act. The Policy does not affect core legal work, which are managed under Premier’s memorandums M2016-04-NSW Government Core Legal Work Guidelines.

Monitoring requirements

Agency Heads are accountable for monitoring and reporting on Core Work capabilities and must set targets to reduce their agency’s reliance on non-government resources to deliver Core Work.
Data should be published in Annual Reports and must be shared annually with the Premier’s Department to support whole-of-sector strategic workforce planning, and to update the Special Minister of State and the Minister for Finance.

Agency Heads should ensure their agency procurement functions monitor and record any new consultant or contingent labour engagements related to Core Work. This should include the reason for external procurement, detail of the work required, the capability required, estimated start and end date, and estimated contract value.

Consultation

Agencies should comply with their requirements under the C2020-03 Consultative Arrangements Policy and Guidelines 2012. In the course of developing their agency-level plan, agencies should consult employees and their representatives, including unions, and provide a copy of the adopted Agency-Level Plan to employees and their representatives. Consultation should provide a genuine opportunity for people directly affected by proposed changes in the workplace, and wider workforce, to influence the plan.

Reporting timelines

Targets to build internal capability, and to reduce reliance on consultants and non-frontline contingent labour must be included in agencies’ corporate plans for the 2025/26 financial year. Agencies must report those targets and progress against targets to the Premier’s Department annually, with mandatory reporting commencing in December 2025.

Exemptions

If an agency believes they need an exemption, Heads of Government sector agencies should contact [email protected] for support. Exemptions will only be granted up to July 2028 or up to when this Circular is reviewed, whichever is sooner. Ministers may revoke or alter exemption statuses as necessary to achieve the objects of this Policy or the Government. Providing exemption from the Policy does not limit Ministerial direction in the use of consultants or non-frontline contingent labour.