Victoria’s public service sector will lose 1,000 jobs as part of a major cost-cutting initiative aimed at reducing spending in the debt-laden state.
The cuts include 332 executive and senior positions after a review found the workforce to be too “top heavy” and recommended reducing leadership roles.
The cost-saving measures are expected to free up more than $4 billion over the next four years and will be implemented immediately.
Senior VPS5 and VPS6 positions will be reduced, saving an estimated $125 million over the forward estimates.
The government stated that the workforce will be rebalanced to pre-pandemic levels, which will allow for more entry-level positions, including nurses, teachers, and police officers.
Nearly 30 government entities and boards will be merged, wound down, or abolished, including Sustainability Victoria, Cladding Safety Victoria, the Victorian Marine and Coastal Council, and the Road Safety Camera Commissioner and Reference Group.
VicHealth and HealthShare Victoria will also be integrated into the Department of Health to streamline public services following the forensic spending review.
The cuts will also reduce spending on consultants and labour hire.
Premier Jacinta Allan said the measures reflect a commitment to managing public funds responsibly, noting that families expect the government to monitor spending as carefully as they do their household budgets.
She emphasised that the cuts aim to help public service workers remain focused on delivering core services, including education, healthcare, community safety, and cost-of-living support.
Allan clarified that not all recommendations from the Helen Silver review have been accepted, as some would have affected frontline services.
She praised the state’s public service workforce as “strong” and “professional” and said the reforms are about building a public sector prepared for the future.
The state avoided even deeper cuts after Treasurer Jaclyn Symes indicated that the review initially considered reducing 2,000 to 3,000 positions.
As of June 2024, Victoria’s public service comprised approximately 315,000 full-time staff.
