Abbott Cuts Hit S.A. Budget
Federal Government budget cuts particularly in the health sector has forced the South Australian Government to propose further job losses in the State sector. The Government proposes 4105 jobs to be cut, by 2018 comparing to their pre-election statement of 3,815 by 2017. Wage growth has been budgeted at 2.5% p.a. for all Public Sector workers, with any increases negotiated above this needing to be offset by productivity improvements. Further efficiency dividends on agencies of 1% in 2015-16 and 1% in 2017-18 will also apply. The Premier will head a Task Force to determine how best to achieve the Government's objectives of reversing cuts and the PSA remains committed to campaigning against the Federal Government cuts that have had such a major impact on the State Budget. The Treasurer's announcement regarding tenure ceasing is identical to the statement in last year's Budget and the PSA is currently negotiating a redeployment process with a view to retrenchments not becoming necessary. In the interim the PSA has secured an extension of tenure. The S.A. State Government proposes that their Budget will return to surplus in 2015-16.