Victoria’s public service sector could face drastic cuts with as many as 3,000 jobs axed as the government tries to curb spending in this year’s budget.
The government announced on Thursday an independent review would be established with the aim of saving billions of dollars on “waste, inefficiency and duplication”.
Between 2,000 to 3,000 public sector jobs – or 5 per cent to 6 per cent of the workforce – could go, Victorian Treasurer Jaclyn Symes said, adding: “There will be some difficult decisions to make.”
As of June 2023, the Victorian Public Service employed approximately 54,000 public servants.
Headed by Helen Silver – a former secretary of the Victorian Department of Premier and Cabinet – the review will prioritise public services that focus “on working people and Victorian families,” Victorian Premier Jacinta Allan said.
Frontline workers – nurses, teachers, and police – will continue to be invested in and supported, stressed Allan.
Silver’s remit is to reduce the Victorian public sector towards pre-pandemic levels and identify programs that can be rationalised or cut altogether. “It’s needed to address the budget recurrent problem we have – this is the purpose of what the review is all about,” Symes said.
Escalating public service costs has seen the government face significant budgetary challenges in recent years. Indeed, since Labor gained power in 2014, the state’s public sector wages bill has almost doubled – from $18.8 billion to $37.52 billion in 2023/24. Consultancy firms and executives are likely to be in Symes’ sights as she commits to slashing spending. “I’m determined this process will deliver results,” she said.
The Community and Public Sector Union said it will fight any job cuts and accused the government of “public service bashing for cheap votes”.
The review’s final report – which will be made public – will be handed down on 30 June ahead of the state budget on 20 May.
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