NSW Budget 2024: Treasurer Daniel Mookhey wields axe over bloated bureaucracies

After inheriting an $11.9 billion GST hole, the Minns government has set the stage for a Budget of restraint — and bloated bureaucracies will be first to get the chop.

Some of the state’s highest-paid public servants will face the chop as Treasurer Daniel Mookhey sets his sights on bloated bureaucracies in his hunt for Budget savings.

With the Minns government pushing the line that it will be a “tough” Budget thanks to Prime Minister Anthony Albanese and Treasurer Jim Chalmers handing NSW a $11.9 billion GST hole, a host of ­underperforming agencies are vulnerable.

The Sunday Telegraph understands jobs in the NSW Public Service Commission — which has an annual budget of more than $40 million per year — are set to be axed as part of an overhaul of the agency.

The commission, which is charged with overseeing the operations of the NSW public sector and running “wellness” surveys, has grown to be bigger than other oversight agencies with greater responsibilities.

As for its oversight role, there is discontent within the Minns government at the ballooning number of temporary staff across the agencies, and soaring numbers of teachers and health workers quitting.

Despite overseeing annual “people matter” surveys, the number of public servants leaving has also soared from 8.7 per cent in 2017 to 11.2 per cent in 2022 — a trend that has been impacting essential services.

In the health sector, there was a 14 per cent turnover of staff in 2022.

Temporary staff numbers have also soared, from about 44,000 full-time equivalent in 2013 to 70,000 two years ago.

NSW Treasurer Daniel Mookhey will deliver the state budget next month. Picture: Richard Dobson

As for its size, the commission is bigger than the Independent Pricing and Regulatory Tribunal (IPART) — which regulates the energy, water, local government, transport and other industries — and also dwarfs the NSW Crime Commission.

When it comes to funding, the commission costs taxpayers almost as much as the NSW Independent Commission Against Corruption to run, and more than agencies such as the Law Enforcement Conduct Commission, the Independent Casino Commission and Independent Liquor and Gaming Authority.

It is headed by Kathrina Lo, who is on more than $560,000.

Appointed in April 2020, Lo appeared before the high-profile state parliamentary inquiry held two years ago into the ­appointment of former deputy premier John Barilaro as New York trade commissioner.

Lo had been on a selection panel at the time.

There is no suggestion she did anything wrong.

Operating independently from the government, the commission has wide discretion in which of its statutory functions are performed.

It has also come under fire for the government's over-reliance of consultants.

An Auditor General report released last year found more than $1 billion had been spent on consultants over a five-year period.

Mr Mookhey will hand down the budget on June 18.

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Originally published as NSW Budget 2024: Treasurer Daniel Mookhey wields axe over bloated bureaucracies