{"id":307126,"date":"2025-11-25T06:17:09","date_gmt":"2025-11-25T06:17:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/307126\/"},"modified":"2025-11-25T06:17:09","modified_gmt":"2025-11-25T06:17:09","slug":"labor-to-squeeze-public-service-sparking-warnings-of-job-losses","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/307126\/","title":{"rendered":"Labor to squeeze public service, sparking warnings of job losses"},"content":{"rendered":"<p class=\"paragraph_paragraph__iYReA\">Katy Gallagher and Jim Chalmers have put the squeeze on the federal public service to avoid a budget blowout, asking departments and agencies to save as much as 5 per cent of their costs in a move that has sparked warnings of further public service job losses.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The finance minister confirmed a report in the Australian Financial Review that she had asked senior bureaucrats to search for &#8220;things we don&#8217;t need to continue doing&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It&#8217;s an exercise in discipline,&#8221; she told ABC Canberra.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;The budget is in deficit. We have a lot of pressures on it. We can&#8217;t just keep adding on to everything.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Asked about the reported 5 per cent figure, Senator Gallagher said it was a &#8220;re-prioritisation&#8221; rather than a &#8220;cut&#8221; but did not dispute the magnitude. Re-prioritisations balance out other new spending, rather than reducing funding in absolute terms.\u00a0<\/p>\n<p class=\"paragraph_paragraph__iYReA\">But that still leaves agencies needing to find 5 per cent of their current activities to discontinue.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;We&#8217;ve asked agencies to think about all the things they&#8217;re doing and make room for re-prioritisation within budget,&#8221; the minister said.<\/p>\n<p>Efficiencies bipartisan despite election brawl<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Labor campaigned against the Coalition&#8217;s plan to cut 41,000 public servants at the last election. The Coalition argued Labor added that many jobs during its first term and that this was unsustainable, with cuts to come from voluntary redundancies and attrition.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Peter Dutton [has] said that he&#8217;s going to cut. He just won&#8217;t tell you until after the election,&#8221; Senator Gallagher said at the time. &#8220;Jobs will go and services will go as well.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Labor argued its boost to the public service headcount, including to clear social service and visa backlogs and reduce reliance on consultants, would need to be backed by new resources and could not simply be re-prioritised.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2025-04-24\/dutton-confirms-public-service-cuts-limited-to-canberra\/105211946\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Labor calls Dutton public service cuts &#8216;impossible&#8217;<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Peter Dutton said some of the 41,000 cuts would be achieved by not proceeding with unfilled vacancies, but political opponents and experts say the numbers don&#8217;t add up.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;I think we have to be realistic that if you are adding new functions \u2026 then you need to resource that to deliver those outcomes. And this nonsense that you just sack 41,000 jobs and you can still deliver that is just crazy,&#8221; Senator Gallagher said in April.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">But the Albanese government had also pursued its own efficiencies, retaining the Coalition&#8217;s efficiency &#8220;dividend&#8221;, which requires most departments and agencies to find savings of 1 per cent per year.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">And there was a hint that more efficiencies would come after the election when the mid-year budget papers last December showed the government had not allocated extra funding to meet billions of dollars of new wage agreements with public servants.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;This is a matter that departments manage,&#8221; she said of the wage rises. &#8220;They live within their budgets. Their budgets are indexed \u2026 we didn&#8217;t supplement the first pay increase over and above the indexation that departments get.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">After the election, Liberal finance spokesperson James Paterson said this admission amounted to a Labor plan to cut 22,500 public servants, unless it could find other offsetting savings.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Labor also took a commitment to the last election to cut the [Australian Public Service] \u2026 I will be watching with interest to see how the government squares this circle,&#8221; he said in July.<\/p>\n<p><img decoding=\"async\" alt=\"James Paterson looks serious past the camera.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/fff1d3ab1e5f8f567f67e44b8830cdda\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">After the election, James Paterson accused Labor of its own implicit policy to cut public service jobs. (ABC News: Matt Roberts)<\/p>\n<p>Union warns of job losses<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Senator Gallagher has not confirmed the timeline for the 5 per cent saving, although the AFR reported it would apply in a single year.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Independent David Pocock said the move would have &#8220;catastrophic impacts on smaller agencies from the AFP to CSIRO to our national cultural institutions&#8221;, such as the National Gallery of Australia.<\/p>\n<p><img decoding=\"async\" alt=\"A close-up of David looking into the distance, wearing a blue shirt.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/11\/d572c7f85bff699bf75005c758c32797\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">David Pocock said the move would devastate smaller agencies. (ABC News: Ian Cutmore)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Being careful with public resources is one thing, but potentially decimating key parts of the public service with a blunt measure like this is another,&#8221; he said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In response to a question from Senator Pocock during Question Time, Senator Gallagher noted the federal government had exempted national cultural institutions, including the gallery, from the current efficiency dividend and said the government was &#8220;not looking to&#8221; reduce the total average staffing level in the Australian Public Service.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2025-11-20\/tomago-smelters-science-csiro-funding-cuts\/106026312\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Government playing down impact of CSIRO job cuts <\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The prime minister, when in opposition, accused the Coalition of &#8220;hollowing out&#8221; the CSIRO. Now, following the announcement 350 research positions at the organisation will be cut, he is being accused of being &#8220;worse than Abbott&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The 1 per cent efficiency dividend applies to most agencies. The ABC and SBS, which have their funding set over three-year periods, and the Australian Nuclear Science and Technology Organisation, have full exemptions.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Last week, peak science agency <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2025-11-18\/csiro-cuts-350-research-jobs\/106024498\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/106024498\" rel=\"nofollow noopener\" target=\"_blank\">CSIRO separately announced it would cut 350 research positions<\/a> to meet its ongoing funding squeeze, prompting accusations from CSIRO&#8217;s staff association that the Albanese government was &#8220;worse than Abbott&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Melissa Donnelly, national secretary of public sector union the CPSU, said the move was &#8220;extremely concerning&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Arbitrary budget cuts across the public service hurt public services and inevitably result in job losses \u2026 The government&#8217;s stated support for the public service must be matched by what it actually delivers,&#8221; she said.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Environment Minister Murray Watt told Sky News that ministers had been asked &#8220;to think about, within our individual budgets, what could we prioritise&#8221; but repeated Senator Gallagher&#8217;s distinction that re-prioritising did not amount to &#8220;cuts&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"Katy Gallagher and Jim Chalmers have put the squeeze on the federal public service to avoid a budget&hellip;\n","protected":false},"author":2,"featured_media":307127,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[43,42086,9618,114203,44,10943,174770,174771,41,39,42,40],"class_list":["post-307126","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-jim-chalmers","tag-job-losses","tag-katy-gallagher","tag-news","tag-peter-dutton","tag-public-service-cuts","tag-public-service-jobs","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/307126","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=307126"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/307126\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/307127"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=307126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=307126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=307126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}