Victoria’s public sector wage bill growing at twice the rate of other states
The state’s public sector wage bill will surge to a record $36b next financial year — growing at twice the rate of any other major city.
Victoria
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Victoria’s public sector wage and super bill will have grown by twice the rate of other major states since the Andrews government came to power when it surges to a record $36bn next financial year.
Victorians are also shelling out $1768 more each year to cover a ballooning public sector wage bill which has risen from $3606 for every person in the state in 2013-14 to a forecast $5374 in 2021-22.
The findings flow from an analysis of budget papers by the Herald Sun and follow Victorian Treasurer Tim Pallas admitting the public sector’s wage trajectory is unsustainable.
Victoria’s public sector wage and super bill came in at $20.7bn in 2013-14.
It is now forecast to hit $35.9bn next financial year.
That is a hefty 73 per cent jump in nine years and equals an annual growth rate of 6.3 per cent.
In contrast the collective wage and super bill of New South Wales, Queensland, South Australia and Western Australia weighed in at $73.1bn in 2013-14.
Their most recent budget papers show it is projected to rise to $96.7bn in 2021-22 — a much more subdued 32 per cent rise running at an annual growth rate of 3.2 per cent.
The public sector wage and super bill New South Wales has risen from $31.4bn in 2013-14 to a forecast $41.8bn in 2021-22, a 33 per cent rise and annual growth rate of 3.2 per cent.
Queensland is the major state with the fastest rising public wage bill after Victoria.
Its bill stood at $21.2bn in 2013-14 and will hit $30.3bn in 2021-22, a 43 per cent rise running at an annual growth rate of 4 per cent.
South Australia’s wage bill is forecast to rise 18 per cent to $10bn over the nine years to 2021-22 — an annual growth rate of 1.8 per cent — while Western Australia will notch up a 22 per cent rise to $14.6bn with a 2.2 per cent annual growth rate.
Commenting on the rise, Mr Pallas said the government would “continue to invest in the services that Victorians need, and employ the Victorians needed to deliver those services.”
Shadow Treasurer Louise Staley said the government had doubled the money it throws at public servants but failed to generate better outcomes.
“Hospital waitlists, ambulance response times and numbers of vulnerable kids in child protection continue to grow,” she said.
“Every budget delivered by this government has had optimistic forecasts about its ability to manage growing employee expenses and every year the actual growth in employee expenses blows these forecasts out of the water.”
Institute of Public Affairs research fellow Cian Hussey said the government had overseen an unsustainable expansion in the public sector.
“It is the wealth-producing private sector that must pay for these increases, but the budget will actually drive this sector away by increasing taxes and making Victoria less competitive,” he said.
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