Victorian government preparing to cut thousands of public service jobs in budget ‘bloodbath’
A state government has been smashed for “pretending to care” as whispers over a plan to cut thousands of jobs spread like wildfire.
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The Victorian government is preparing to cut thousands of public service jobs, sparking a wave of backlash from Liberal politicians and the public sector union.
Premier Jacinta Allan announced an independent review into the state’s public service on Thursday, with Treasurer Jaclyn Symes confirming up to 3,000 jobs could be slashed as part of a broader budget overhaul.
The move has already attracted comparisons to Elon Musk’s Department of Government Efficiency (DOGE) under US President Donald Trump, however the magnitude of Victoria’s proposed clear-out is far from the libertarian upheaval being witnessed in the US.
Opposition figures have already branded the review a “hoax” designed to shield the public from “the truth of the budget overspend.”
While the government maintains the cuts will not affect frontline services, senior public sector sources say the true figure could be as high as 6,500 roles — equating to a 12.5 per cent reduction in the 55,000-strong workforce.
The looming cuts come amid revelations of a $3 billion blowout in the state’s wages bill over the past year.
Victoria’s public service has grown disproportionately compared to population increases and other states, with the government’s wages bill nearly doubling from $18.8 billion in 2014 to a projected $37.52 billion this financial year.
‘Difficult decisions’ ahead
Ms Symes said the review, which has been described as a “budget bloodbath”. would focus on and ensuring taxpayer dollars are directed to the “priorities of Victorian communities.”
“There will be some difficult decisions to make, but they are important decisions,” she said, per the Herald Sun.
Premier Allan added the review would have a “laser focus on every dollar of expenditure.”
The review will be led by Helen Silver, a former Department of Premier and Cabinet secretary under the Brumby and Baillieu governments, with a final report due in June.
‘Waste, inefficiency and duplication’
Premier Jacinta Allan said the government is targeting “waste, inefficiency and duplication”, claiming the proposed cuts will save “several billion dollars” of taxpayers’ money.
“This review is about helping to make sure that the public services delivered here in Victoria continue to be focused on those frontline services, on those priorities of working people and Victorian families,” she said.
“Like households are focusing on every dollar they spend, so too is the Victorian government.”
Meanwhile, the state’s opposition has dismissed the review as a political stunt.
Shadow Minister for Public Sector Innovation, Brad Rowswell accused Labor of “pretending to care” about efficient use of taxpayer dollars.
“After a decade of wage bill blowouts, financial mismanagement, and excessive public sector executive growth, Labor is now pretending to care about delivering value for taxpayers’ money.”
Shadow Treasurer James Newbury was just as scathing.
“They’ve found themselves in quicksand again,” Newbury said. “All of these figures the government has tried to throw out today are more smoke and mirrors.”
Mounting fiscal pressure
Victoria’s debt is forecast to hit $188 billion by 2028, with concerns it could balloon further in May’s budget due to rising wages and escalating costs of major infrastructure projects.
Leading credit agencies Moody’s and S&P Ratings have repeatedly warned of a potential downgrade if spending is not curbed, which would lead to higher interest payments and exacerbate the state’s debt crisis.
Last week, more than 70 fisheries officer roles were cut, replaced by just 36 fisheries engagement officers—signalling the start of broader cuts.
Community and Public Sector Union secretary Karen Batt warned against “crazy, ill-thought-through proposals,” suggesting they could end up costing the government more in the long run.
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