The Albanese government will take an axe to costly private consultancy fees as it continues a blitz on "wasteful" spending ahead of its first budget.
The government plans to set up an internal consulting hub to provide more of its needs in-house.
Speaking at the Institute of Public Administration Australia, Finance Minister Katy Gallagher said the model would give public servants the opportunity to develop their expertise further as well as reduce costs.
In the lead up to the election, Labor said spending on private consultants had ballooned and promised to slash spending on contractors and labour hire.
It expects a 10 per cent reduction in external labour will save $3 billion over four years.
Labor also promised to reinvest more funds back into the public service and hire more frontline staff.
Meanwhile, Treasurer Jim Chalmers has confirmed there will be no changes to stage three tax cuts in the federal budget.
The cuts are legislated for introduction in 2024, taxing all income between $45,000 and $200,000 at 30 per cent.
The government is being urged to scale back or scrap them because the greatest benefits go to high income earners.
Anglicare Australia research also shows that for the cost of the tax cuts, the government could lift welfare recipients above the poverty line.
Lifting payments for job seekers to $88 from $46 a day would cost $128.1 billion over 10 years - considerably less than the $243.5b set to disappear from government coffers over the decade if the stage three tax cuts go ahead.
The analysis also found for the cost of the tax cuts the government could fund the 36,000-dwelling social housing shortfall and increases to the parenting and carer payments.
Collectively, the organisation says these poverty-eradicating measures would cost $208b.
