Consultancy firms working for the Department of Defence, the National Disability Insurance Scheme and the Australian Taxation Office will be hardest hit by a new plan to cut more than $500 million in jobs from the struggling consultancy sector this financial year.

The revelation is contained in a new report detailing for the first time the value of work carried out by external parties, which is considered the foundation of the public service that will be brought back to government departments and agencies. It includes activities such as foundational work, policy development, and drafting laws and regulations.

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