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The Guardian
a day ago
- Business
- The Guardian
Victorian public servants hit back at Labor's planned job cuts with push to curb ‘executive bloat' instead
fb9a0a9052 A group of public servants vying for union leadership roles are pushing back against the Victorian government's mooted public sector job cuts with a cost-saving plan of their own, calling instead for reductions in 'executive bloat', halving consultant spending and reducing office space. The group, known as the Voice for Members (AVFM), will on Tuesday release an 89-page report, dubbed the Gold Review – a nod to the government's review into the Victorian public service (VPS) led by Helen Silver – outlining $13bn in cost-saving and revenue-generating measures. The report argues that large-scale job losses can be avoided in part by 'culling' 450 executive-level roles, which they estimate would save $123m in the 2025–26 financial year and $530.1m over the forward estimates to 2029–30. The report said the number of senior executives at the VPS had 'spiralled out of control', growing from 647 in 2014 to 1,887 in 2024. Over the same period, median executive salaries rose from $190,000 to $269,426 annually. It also recommends halving consultant use, which it says would save $134.9m in 2025–26 and $584.7m by 2029–30, and consolidating government office space, citing the move to hybrid work. The move would save $100m in 2025–26 and $430.9m over the forward estimates. In addition, it calls for an end to fossil fuel subsidies and switching all government banking to a public option, saving $282.1m over the forward estimates. Sign up for Guardian Australia's breaking news email To raise revenue, the group proposes introducing a new 0.05% levy on major banks operating in Victoria, which would generate $6.13bn over the forward estimates, and increasing the online betting tax from 15% to 20%, raising $800.6m by 2029–30. Resourcing the State Revenue Office more efficiently to collect existing taxes would also generate $415.6m in 2025–26 and $1.85bn over the forward estimates. The AVFM claims its plan would deliver up to five times the savings expected from the Silver review, which was announced by Jacyln Symes just months after she became treasurer. Symes has said the review aims to reduce duplication and return the VPS to its pre-pandemic size, with anticipated workforce cuts of between 5% and 6% – roughly 2,000 to 3,000 jobs. Frontline roles won't be impacted. In her budget last month, she announced $3.3bn in savings from cutting 1,200 jobs, with more expected following Silver's recommendations, due on 30 June. The Gold Review, however, said the VPS as a proportion of the pubic sector was 'now smaller than its pre-pandemic size'. While it made up 17% of public sector employment in 2021, it was now 14.98%, which is also lower than 15.72% in 2019. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion They also argue that every dollar cut from the public service may yield only 60 cents in 'real savings', once costs from redundancies, increased consultant use and impacts on frontline services are considered. AVFM candidates are running for leadership roles in the Community and Public Sector Union's Victorian branch. For the first time in many years, all positions are being contested, including state secretary, a role Karen Batt has held for more than 30 years. Mitch Vandewerdt-Holman, AVFM candidate for assistant secretary, said the report was complied by a group of public servants over six weeks using public data and 'in their own time'. 'On weekends, weeknights – some people took a little bit of annual leave,' he said. It would be a 'sample of the work' the group would do if elected to convince the government to take a different approach, Vandewerdt-Holman said. 'There are alternatives to public job cuts, and our plan actually achieves what the government's setting out to do in a much better way that doesn't cut jobs, that doesn't make people unemployed.' Ballots for the election will be sent out on 10 June and must be returned by 8 July.
The Age
21-05-2025
- Business
- The Age
Public services face $3b cut, 1200 jobs to go, but state's debt just keeps climbing
The budget also outlines $3.3 billion in savings to come over the forward estimates as the state government reduces duplication and 'back of house' functions. Loading Some of this comes from early work implementing a review by Helen Silver, whose full findings will be unveiled in June and include plans to streamline Victoria's more than 500 entities and 3400 public boards and committees. The treasurer said she was expecting about 1200 full-time positions to go as part of this effort. However, this could include vacant roles. 'Government had been put on notice, particularly when I announced the Silver review about reduction across the Victorian public service,' Symes said. 'When people have been leaving, positions haven't been filled, people have moved around, and the like.' The budget papers show that taxation revenue in 2025-26 will hit $41.7 billion, and increase $6.2 billion over the next four years. Jaclyn Symes has released her first budget. Credit: Aresna Villanueva Payroll taxes such as the COVID debt levy and the mental health and wellbeing levy will reach $11.9 billion this financial year, growing at an average of 5.1 per cent per year over the next four years. Land taxes are forecast to hit $7.6 billion, growing by an average of 5.7 per cent, and stamp duty is expected to reach $9.6 billion this financial year, forecast to grow at an annual rate of 5 per cent. Urban Development Institute of Australia chief executive Linda Allison said the budget was a missed opportunity to seriously tackle the housing crisis with tax relief large enough to spur more supply. Loading 'The industry was looking for some courage from the government, instead it has received crumbs,' she said. 'Victoria is now the highest-taxed state in Australia when it comes to property. The government's overreliance on property taxes is making projects unfeasible to proceed and keeping first home buyers from making the first step on the property ladder.' Total spending is set to grow from $107.7 billion in 2025-26 to $115.4 billion in 2028-29, increasing by an average of 2.4 per cent. Treasury expects a rare increase in Victoria's share of GST funding to wind down, meaning the state's surpluses will rely on the increased state revenue. A slim operating surplus of $600 million is forecast to rise to $1.9 billion in the 2026-27 financial year, then $2.4 billion in 2027-28, then $1.5 billion in 2028-29. However, net debt is expected to continue to rise from $167.7 billion this year to $194 billion in 2028-29, sitting at 24.9 per cent of gross state product. Symes said the government was meeting its target of stabilising debt and reducing its share of the total economy. 'If you've got more money, it's easier to pay your mortgage,' she said. 'Reducing net debt as a proportion of [gross state product] is the measure that we're focused on. It's a measure that a lot of the world focuses on as well. By the end of the forwards, the total interest that we pay is 1.35 per cent of GSP.' S&P Global's Melbourne-based analyst, Rebecca Hrvatin, said reining in Victoria's growth of public spending was strengthening its finances, but these goals had proven difficult. 'Fiscal discipline is important, especially in the lead-up to the 2026 state election because we have seen many Australian state governments lose control of their budgets in the lead-up to an election,' she said. Unemployment is expected to rise to 4.75 per cent next financial year and wages are forecast to grow at 3.25 per cent, which is above inflation. The consolidation of public services is projected to save $544.6 million over the next year as it is phased in, rising to more than $1 billion in 2027-28. The diminished public service will also need less space, allowing for the 'consolidating of accommodation' of physical workspaces within the Treasury Place precinct. The number of business regulators will also be halved, from 37 to 18 or fewer, by 2030. Loading In addition to trimming its own workforce, the government expects that regulator mergers will save businesses $500 million over the next four years by eliminating duplication, accelerating processes and reducing the number of permits needed to do business. Victoria will add $9.3 billion to hospitals' operating budgets as part of an $11.1 billion increase in health funding. A $100 power-saving bonus will be available to people on concession cards. Shadow treasurer James Newbury said Labor had failed to live up to promises to rein in expenditure. 'This is a government that borrows more, spends more and achieves less. Labor's addiction to reckless spending is driving down our services and driving up the cost of living,' he said. Newbury said Victoria was approaching 'dangerous' levels of debt as it moved towards $200 billion. 'The amount we pay in interest will soon be 10 per cent of the total budget spend,' he said. Funding for decisions not yet announced, typically used for election war chests, will be $591 million this financial year, rising to $2.37 billion, $3.98 billion and $5.7 billion each year thereafter. However, the budget papers state this pool has also been set aside for additional demand and price pressure in areas such as health and education. State employee expenses will rise from $38.8 billion in the 2025-26 financial year to $42.4 billion over the next four years. Get alerts on significant breaking news as it happens. Sign up for our Breaking News Alert.
