SA budget axes 1000 public sector jobs in major recruitment freeze
A public sector hiring freeze will cut nearly 1,000 jobs next year, South Australia’s state budget has revealed.
In a move that hopes to save $120 million a year, sweeping cuts to non-frontline positions have been included in the Malinauskas Labor government’s first budget since its decisive election victory in March.
However, the budget also included new measures aimed at dealing a blow to the state’s housing sector, investments in educational facilities and efforts to combat ambulance ramps.
These measures included stamp duty relief programs for victims of domestic abuse and those downsizing, and a $50 million housing development funding commitment for first-time buyers only.
Finance Minister Tom Koutsantonis introduced the budget to parliament on Thursday afternoon, announcing a raft of new measures at a time when government debt is approaching the $50 billion mark.
As well as announcing a hiring freeze and stamp duty changes, Mr Koustantonis pledged $8.5 million in funding over the next four years to set up a treaty commission to be chaired by Aboriginal leaders.
The commission will focus on improving the health, education and economic conditions of Aboriginal and Torres Strait Islander people in the state.
The budget includes:
• $174 million over four years to eliminate public school tuition.
• $50 million pledged to build 400-unit first-home owner-only housing development at Munno Para, north of Adelaide
• A $250 million loan plan to reduce the number of ambulances and create 650 new aged care beds
• Stamp duty relief for victims of domestic violence and people over 60 who downsize to a property worth up to $2 million
• Expanding the seniors card program to all people aged 60 and over and Aboriginal and Torres Strait Islander people aged 50 and over
• Funding dozens of extended day care services that will allow three-year-olds to attend kindergarten.
• $210 million over six years to redevelop and improve 37 public schools
• $28 million for the mental health assessment unit at the Royal Adelaide Hospital.
“The 2026-27 budget is within its means, surpluses are real and debt-to-revenue ratios are lower than previously budgeted,” Mr Koustantonis said.
“The Malinauskas government continues to provide the certainty that allows risk-takers, entrepreneurs and business leaders to continue their business, while the government continues to deliver the services and cost-of-living assistance we committed to in the state election.”
Speaking ahead of the budget, Prime Minister Peter Malinauskas said: “The amount of commitments we made in terms of spending during the election campaign were actually quite modest, and when you see them all calculated out, you’ll see how it works out in terms of results.
“It also ensures that we have the ability to deliver on the commitments we make within our budget.
“No new taxes, no surprises for business here.
“As we restrict our spending, we are honoring our commitment not to create new taxes to justify spending.”
More to come
