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VIC: Public service job cuts on cards for state budget, as interest rates bite

Started by #Metro, March 25, 2023, 09:21:37 AM

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#Metro

Public service job cuts on cards for state budget, as interest rates bite

QuoteVictorians have been told to brace for difficult budget decisions as the Andrews government struggles to offset a multibillion-dollar financial hit linked to rising interest rates, with cuts to public service jobs being considered.

Premier Daniel Andrews this week bluntly warned that the upcoming May 23 state budget would involve "very difficult" decisions needed to stop Victoria's "extraordinary" debt levels from hampering the "next big wave of reform".

Public service job cuts on cards for state budget, as interest rates bite
https://www.theage.com.au/politics/victoria/public-service-job-cuts-on-cards-for-state-budget-as-interest-rates-bite-20230324-p5cuzt.html

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Gazza

Ooooh public sector cuts!

That'll get @metro and @verbatim9 excited and posting slabs of text from googled economics articles!

#Metro

Corrections are being shrunk

QuoteThe state government is under fire over staff cuts at Melbourne prisons. Generous early retirement packages have been offered to workers as Spring Street scrambles to contain the state's spiralling debt.


Public servants brace for job cuts as Andrews prioritises Big Build
https://www.theage.com.au/politics/victoria/difficult-decisions-budget-razor-comes-for-victoria-s-human-rights-agency-20230316-p5csk8.html

QuoteVictoria's human rights watchdog has announced looming job cuts ahead of the May budget, and public servants are bracing for further reductions as rising interest costs place further pressure on the state's finances.

Staff at the Victorian Equal Opportunity and Human Rights Commission were informed of a sweeping restructure on Wednesday afternoon, due to a "significantly smaller budget for the foreseeable future".
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#Metro

Victorian government in talks to secure a bailout in upcoming federal budget

https://www.skynews.com.au/australia-news/politics/victorian-government-in-talks-to-secure-a-bailout-in-upcoming-federal-budget/video/3867c24227f1cc01f089711eeb9119c5

QuoteVictorian Premier Daniel Andrews is in talks with Prime Minister Anthony Albanese to secure a bailout in the upcoming federal budget.

After the world's longest COVID-19 lockdowns, Victoria's state debt has climbed to a record $115 billion and is expected to grow to more than $165 billion by 2025-26.

Mr Andrews has already confirmed the public sector can expect cuts of around 10 per cent.
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#Metro

Interesting opinion piece article in Australian Fin Review.

Victoria's state debt the nation's largest: shadow treasurer
https://www.afr.com/politics/victoria-s-state-debt-the-nation-s-largest-shadow-treasurer-20221121-p5c03u

As a proportion of Gross State Product, it's high for VIC.

But there is some good news buried in this graph - QUEENSLAND is doing very well.

Must be all of the rail projects etc. that they are delaying  :fo:



(Note - Graph doesn't include the ACT)

QLD consistently the lowest out of all the states or territories listed. Current rating is AA+.

https://www.qtc.com.au/institutional-investors/credit-ratings/

NSW is currently AAA.

https://www.treasury.nsw.gov.au/nsw-economy/about-nsw-economy/states-credit-rating#

This is despite NSW having a larger debt to Gross State Product Ratio. The ratings process looks at many things not just top-level things like Debt/GSP.

Based on this, Red Team seem to have done well in QLD.  :-c
Negative people... have a problem for every solution. Posts are commentary and are not necessarily endorsed by RAIL Back on Track or its members.

#Metro

Negative people... have a problem for every solution. Posts are commentary and are not necessarily endorsed by RAIL Back on Track or its members.

ozbob

The Age --> Big-ticket transport projects face delays as budget pressures build $

QuoteThe Andrews government has put a high-speed rail service between Geelong and Melbourne on the back burner, an insider says, amid speculation budget pressures are also threatening to delay the big-ticket Melbourne Airport Rail project.

Any delay to the Geelong Fast Rail project will also hold up the long-promised faster train services through Melbourne's west, as the government has repeatedly said the Geelong line needs to be completed before the Western Rail Plan. ...
Half baked projects, have long term consequences ...
Ozbob's Gallery Forum   Facebook  X  Threads  Mastodon  BlueSky

#Metro

:fo:

Victoria's budget pain – 10 years of new taxes, thousands of jobs cut and debt soars | 7NEWS

QuoteVictorians are facing a decade of new taxes to pay off spiralling debt, set to cost taxpayers $21 million a day in interest. It's just part of the pain in a state budget that's under fire for slashing jobs and failing to deliver cost of living relief.

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#Metro

Victoria's budget targets landlords, big business and private schools


Economically, taxes "on businesses" are simply passed on to one of three groups (or a mix):

- Workers (through lower wages)
- Owners/Investors (through lower returns)
- Customers (through higher prices)
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Gazza


#Metro

What drives Daniel Andrews?
Sumeyya Ilanbey has written a tough but fair-minded account of the high-handed premier

Tim Colebatch Books 24 October 2022
https://insidestory.org.au/what-drives-daniel-andrews/

QuoteIlanbey tells us that Andrews developed quickly as a factional warrior: "He became known as Alan Griffin's 'numbers man,' the main go-to guy for the Socialist Left's branch-stacking operation in the south-eastern suburbs, a meticulous and detailed young operative whom Griffin trusted wholeheartedly." Apart from student jobs selling hotdogs and driving trucks, it was his first real job.

His career since has been entirely inside Labor. At twenty-three, branch stacker in an electorate office. At twenty-six, assistant state secretary. At thirty, the new MP for Mulgrave and assistant minister for health. At thirty-four, gaming, consumer affairs and multicultural affairs minister. At thirty-five, health minister. At thirty-eight, Labor leader and opposition leader. At forty-two, premier. He is now fifty.

(bold added)
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#Metro


QuoteThere are growing fears more renters will face homelessness as up to half the state's landlords consider selling their investment properties. Many say they can't afford to keep them after being hit with the [Daniel Andrews] state government's controversial new land tax.

Quote"The purpose of the tax is to pay for the COVID debt"
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Gazza

But if landlords sell their property, the house doesn't disappear into thin air.

Either:

Another landlord buys it and rents it out.

An owner occupier buys it, and therefore no longer needs a rental and their old rental is freed up.

Either way, the effect on housing supply is neutral.

#Metro

Legal Firm Holding Redlich has listed details of the Victorian Tax Increases:

https://www.holdingredlich.com/victorian-state-budget-2023-24-taxing-changes-to-land-tax-payroll-tax-stamp-duty#

QuoteThe 2023 Victorian state budget comes with significant changes to land tax, payroll tax and stamp duty announced as part of the government's "COVID debt levy" which will apply until 30 June 2033.

New revenue raising measures will be imposed in an attempt to recover the $31.5 billion in debt that the state accumulated between 2019-20 and 2022-23.
...

QuoteFrom 1 January 2024, the tax-free threshold for general land tax rates will be reduced from $300,000 to $50,000.
(bold added)

:-w
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#Metro

Victorian Budget 2024/5 released today.

Tonne of projects cancelled or delayed because no money = no project.


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