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Benita Kolovos

Victorian opposition proposes hiring freeze to tackle state debt

The Victorian opposition leader, Jess Wilson, will announce a plan to implement an indefinite hiring freeze across all back-office public service roles if elected in November, in an effort to bring down the state’s ballooning debt.

Wilson will announce the plan at a Liberal party fundraiser today, which she will say could save taxpayers $22bn over a decade.

She said the hiring freeze would affect 46 government departments and agencies but excludes frontline roles such as teachers, nurses and police. She said the savings would be achieved through “natural attrition,” which involves not hiring replacements when people leave their positions.

The opposition said the hiring freeze will remain in effect until Victorian public service staffing levels return to the population-adjusted equivalent of 2014-15 levels.

Wilson said in a statement:

double quotation markRightsizing back-office public service roles is a difficult, but necessary measure I am willing to take to guarantee essential services and repair Victoria’s finances.

Tuesday’s budget showed a $727m operating surplus this financial year and forecasts further surpluses each year across the forward estimates.

But it also forecasts that debt will grow from $165.3bn in June 2026 to $199.3bn in 2029-30. By then, interest payments on state debt are forecast to total $11.82bn – or $32m a day.

About 35% of the government’s revenue in the coming financial year – $41.13bn – is expected to be spent on public sector wages. This is despite the government committing in December to a plan to slash 1,000 public sector jobs in December, including 300 executives, and merge several entities.

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