South Australia to Cut Public Service Roles as Labor Prepares First Budget Since Election Win

South Australia’s public service is set to shrink as the state Labor government prepares to hand down its first budget on Thursday, announcing a plan to replace only one in every two departing non‑frontline workers in a bid to save $120 million a year. All information has been verified with a trusted, up‑to‑date source.

Treasurer Tom Koutsantonis said the measure would result in 1,000 fewer full‑time equivalent back‑office roles over the next 12 months, helping rein in spending as the state heads toward $50 billion in debt. He insisted the cuts would not affect frontline services. “This is a simple measure we can take that will deliver significant budget savings while ensuring the public service continues to function efficiently,” he said.

Koutsantonis argued that strong private‑sector investment in South Australia meant there was now a competitive labour market, making the reduction in government roles more manageable.

But the Public Service Association reacted sharply. General secretary Charlotte Watson said the union was “alarmed” by the plan, which was first flagged just days before the state election. She warned that back‑office staff were essential to keeping frontline services running. “These are the people making sure frontline workers are paid, families are housed, children are protected, and the state is properly advised on crucial matters like the algal bloom,” she said.

Thursday’s budget will be Koutsantonis’s first since returning to the treasury portfolio last September, having previously served as treasurer from 2014 to 2018 under former premier Jay Weatherill.

The government has already unveiled several cost‑of‑living and social measures ahead of the budget, including expanded support for home buyers, broader access to preschool for three‑year‑olds, and an extension of the Seniors Card to all South Australians over 60 and Indigenous people over 50. Premier Peter Malinauskas said the change would allow 80,000 more seniors to access savings on essentials such as fuel, transport and groceries. “This is about putting money back into people’s pockets and making everyday life more affordable,” he said.