Government to slash 1,700 jobs as Abetz looks to rein in Tasmanian spending

Treasurer Eric Abetz is attempting to rein in the state's debt. (ABC News: Hamed Akrami) Treasurer Eric Abetz has outlined around $1.5 billion in budget cuts over the next four years to balance the state's budget. Tasmania will run a $596.7 million operating deficit in 2026-27, and surpluses in the following years. The state's debt is expected to hit $8.4 billion in the first year of this budget and peak in 2028-29. Link copiedShareShare articleTasmania's government departments will be tasked with finding $1.5 billion in cuts over four years, as part of Treasurer Eric Abetz's second budget. The treasurer is promising a return to a more "sustainable" financial footing, but has not outlined exactly which services will be affected — only that the focus will be on the bureaucracy. One thousand seven hundred jobs are on the chopping block, with the government aiming to slash the workforce through natural attrition, negotiated voluntary redundancies and workforce renewal. It is unclear where those jobs are, and what services may be affected, with the cuts under the banner of 'operational efficiencies'. Eric Abetz referred to the Bible in his speech following the budget lock-up. (ABC News: Jake Grant) In 2026-27, the state will record a $596.7 million net operating deficit. When capital expenditure is included, it equates to a $1.057 billion fiscal deficit. But that is the only operating deficit in the four years projected, with a surplus of $192.3 million projected the following year, increasing to $622 million by 2029-30. "As the good book reminds us — there is a season for most things," the treasurer said, referencing the Bible, in his speech to parliament. "There was a season for deficit budgeting, and now is the season for balancing the budget." Mr Abetz praised Premier Jeremy Rockliff for cutting back on staff in his office. (ABC News: Kate Nickels) Cuts to spending do the heavy lifting in returning the finances to the black, with $1.47 billion in "operational efficiencies" identified. While operating expenses in the 2026-27 year will be $10.788 billion, a small increase on this financial year, they are reeled back to $10.394 billion the following year, before slowly ticking up once again. "Continuing with these necessary measures will require discipline and a capacity to look beyond the immediate and self, and to look to the future," said Mr Abetz. Revenue will increase steadily from $10.191 billion in 2026-27 to $11.603 billion in 2029-30. With no new taxes in this budget, the increase is down to greater payments from the federal government for health and GST share, and higher revenue from current payments. The West Coast Wilderness Railway has been given a $28.3 million boost. (West Coast Wilderness Railway: Ness Vanderburgh) "We, as a government, believe that, especially with the cost of living pressures as they are, that we should seek to quarantine the people of Tasmania from new taxes, and we are very pleased that we've been able to do so," he said. By the end of 2026-27, the state's net debt is set to hit $8.4 billion, and climb to just under ten billion two years later, before the state begins to pay it off. Next year, the state will spend $441 million supporting its debt. By 2029-30, the cost of doing so will rise to $638.4 million per year. The state will also pay around $400 million in superannuation to retired state servants on the defined benefit scheme. When all government businesses are added in, the state will have $14.9 billion in debt at the end of the next financial year. Targets of $1.47 billion in "operational efficiency" are set across government, with individual amounts for each government department, with bigger departments urged to find the greatest slices. The treasurer has said there will be a focus on the back end of departments, and that it will be enacted through natural attrition, negotiated voluntary redundancies and workforce renewal. Health is the state's biggest priority, taking up 34 per cent of the budget. (ABC Radio Perth: Emma Wynne) Around $216 million in operational efficiencies are brought in for this year, with health expected to find $131 million. By 2029-30, departments will need to save $441 million in total. The treasurer said the government had "absolute dedication to the task". "If you want an example of how that can be done, and in fact has been done, it is in the Premier's own department [of Premier and Cabinet] where he has led by example, a reduction of 82," Mr Abetz said. The government says its goal of cutting 1,700 jobs by 2029-30 will help support "a more efficient and productive state service, while maintaining the capacity to deliver essential services and respond to future priorities". The government projects replacing the Department of State Growth with its new Building Tasmania department will slash 250 full-time jobs. (ABC News: Luke Bowden) The government has not said exactly where the jobs will come from, or

Government to slash 1,700 jobs as Abetz looks to rein in Tasmanian spending

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