PM&C Secretary Dr Steven Kennedy: “Highly engaged in driving the government’s agenda” across the Australian Public Service. Photo: PM&C.
The Department of Prime Minister and Cabinet needs to look beyond Canberra to fill its workforce if it is to meet future challenges with the expertise it needs, according to a high-level independent review of the agency.
The just-published capability review of the PM’s own department has found significant rates of burnout and staff turnover; issues with staff empowerment; internal communications; internal and external collaboration; and a scattered approach to risk management.
On the positive side, employees feel their department, which is at the very centre of government policy development and rollout, has a good culture and acts with integrity.
Additionally, the review found external stakeholders expressing optimism about the department’s secretary, Steven Kennedy, whom they find to be “highly engaged in driving the government’s agenda” across the Australian Public Service.
The independent capability review, commissioned by the Australian Public Service Commission, was led by former senior Victorian public servant Helen Silver AO.
As of 30 June 2025, there were 1406 employees at PM&C, of whom 96.9 per cent were located in the Australian Capital Territory.
Some, however, have flexible work arrangements that allow them to work full time from a location outside the ACT.
The department has 43 employees based in New South Wales and one in Queensland.
“To sustain a high-calibre workforce, the department should consider moving beyond its traditional Canberra-centric model to respond to the competitive labour market,” the review recommends.
“This will require enhanced technological and managerial capability to support a dispersed workforce.”
The review found that an “increasing convergence of complex issues” will require the department to work more collaboratively than it currently does and to avoid being siloed within individual policy domains.
“The department will therefore need to have a strong culture of internal and public sector collaboration, and appropriate mechanisms (organisational structure, policies and processes) to produce well-rounded advice to government and ensure delivery, despite complexity,” the report states.
“A mature capability in data analytics and a widespread appreciation for the value of data will be important to ensure the department’s advice is consistently evidence-based and comprehensive.
“Cultivating this capability will require a dedicated focus on performance and development for all policy staff as well as recruitment and retention strategies to ensure a pipeline of data specialists.”
It recommends that staff below the SES level be empowered to take calculated risks and make decisions within their scope of work.
A clearer approach is needed to signal when and how the department will manage risks and opportunities before and as they arise.
“The review recognises that complex or highly sensitive issues may require senior leadership involvement, but there should be clarity about when this is needed,” it states.
The APS Employee Census 2025 found 87 per cent of staff agree that “the culture in my agency supports people to act with integrity”, and a further survey conducted for the review also found that 92 per cent of staff feel “their workgroups uphold the APS values”.
Regarding the recently added APS value of stewardship, 84 per cent of staff agree that “people in their workgroup demonstrate stewardship”, which is 7 percentage points above the APS average.
“In response to a survey conducted for this review, nearly 30 per cent of staff consider ‘quality of the leadership team’ to be one of the areas the department should focus on improving in the future,” the report states.
“Proactive steps are needed to continue to attract, retain and model the high-calibre leadership.
“Staff and external stakeholders, as reflected in review interviews and the APS Employee Census 2025, consider that the department’s leadership could improve prioritisation and direction.
“The review heard from stakeholders that PM&C is spread too thin, covering too many issues and not focusing on the highest priority matters.”
The review stresses that over the next four years, the department’s ability to “lead from the centre, provide cohesive advice, and coordinate action across portfolios” will be essential to ensure the government can respond effectively and deliver outcomes for the Australian people.
The department attracts high-calibre leaders and has recently introduced new governance structures to support decision-making, yet staff and stakeholders report inconsistent communication of priorities and limited delegation of authority.
“PM&C provides high-quality advice but is regarded as reactive and unclear in its approach to strategic prioritisation,” the review says.
Dr Kennedy has responded to the capability review, saying it presents a valuable opportunity to consider PM&C’s strengths and to identify opportunities for action.
“The review acknowledges work already underway to strengthen our capability across a range of critical areas,” he said.
“It also identifies priority areas for us to focus our efforts on: leadership and governance; strategy and priorities; and internal and public sector collaboration … Our people are our greatest strength, and our success in delivering for government relies on our staff.
“I admire their commitment to serving the Australian community, and would like to thank them for their willingness to engage and their insights during the review.”
