Australia's public service faces widespread cuts amid rising wage bill

Various agencies, departments confirm planned cuts through voluntary redundancies

Australia's public service faces widespread cuts amid rising wage bill

Various government departments and agencies are reportedly cutting down their workforce through voluntary redundancies and hiring freezes amid a soaring public service wage bill for public services.

According to reports, the government agencies seeking voluntary redundancies include the Department of Prime Minister and Cabinet, the Department of Climate Change and Energy, the Department of Home Affairs, the Commonwealth Scientific and Industrial Research Organisation, the Department of Education, the Department of Social Services, the National Indigenous Australians Agency, the Australian Bureau of Statistics, and the Fair Work Ombudsman.

Some of these organisations are also implementing hiring freezes for non-essential roles, according to the report.

The government is looking to cut up to 28,000 public sector jobs, with employees earning more than $100,000 likely to be targeted, The Sydney Morning Herald reported.

According to the AFR's report, the cuts are also targeting middle managers, with long-serving officials eligible for six-figure payouts to leave the public service.

Some of the agencies in the report have confirmed their plans to seek voluntary redundancies, including the Department of Climate Change and Energy.

The Australian Bureau of Statistics, the Department of Social Services, the National Indigenous Australians Agency, and the FWO also confirmed these plans.

The job cuts in the public service come amid rising headcounts and a growing public service wage bill, according to the reports.

Australia's public service headcount has grown by 41,000 to reach around 213,000 since the Labor Party was elected four years ago.

But this comes with a major public service wage bill, which the reports claim has reached $31 billion, and is projected to soar to $41.6 billion in 2025-26 amid higher compensation costs.

Minister for Finance and the Public Service Katy Gallagher has denied that the government is implementing widespread job cuts. 

"As with all budget processes, agencies are working through their settings and priorities, and decisions will be reflected in the budget in the usual way," Gallagher said.

"As is always the case, agencies manage their staffing levels within their existing budgets and in line with changing priorities."

Melissa Donnelly, national secretary of the Community and Public Sector Union, said that they are concerned by the job cuts and hiring freezes in the public sector.

Donnelly previously said late last month that there is a "growing unease" among public sector workers as some agencies implement job cuts and hiring freezes.

"The CPSU is calling on the government to direct agencies to stop cutting jobs, and to start being bold and ambitious with the way they approach their obligations under the Strategic Commissioning Framework," she said in her opinion piece.

"At a time of geopolitical challenges, cost of living pressures and the fuel crisis, at a time when Australians are already doing it tough, communities need and deserve to have effective and efficient public services in their corner. It would be devastating, and out of step with all their public pronouncements, if this Government undid the important work it started on public sector jobs and capacity."

LATEST NEWS