Treasurer Joe Hockey confirmed Saturday's forecast by Finance Minister Mathias Corman in Monday's Mid-Year Economic and Fiscal Outlook (MYEFO) presentation. Mr Corman spoke of a "bloated public service" that is the product of the previous Labor government, and Mr Hockey addressed the issue with further government job cuts to provide the Abbott government with its goal of a public sector reminiscent of the 2007/2008 period.
Mr Corman explained, "The goal is to ensure that the government is as big as it needs to be but as small as it can be", and the manner in which the government intends to reach this goal was clarified by Mr Hockey, who prepared the public sector for 16,500 full-time-equivalent job losses by the end of the financial year. The Community and Public Sector Union (CPSU) said that the time frame has been majorly contracted from the schedule announced in the May budget.
The Education Department received particular attention, as employees were informed that 110 staff will be made redundant over the coming months, after initial job cuts were announced in May. The department, which is responsible for areas such as affordable child care, early childhood education, higher education and academic research, informed the media:
"The Department of Education needs to reduce costs to meet reductions to the departmental budget for 2015-16 associated with programmes which are ending and other measures."
A job swap programme will also be offered to Education Department staff.
Contestability tests, which will require departments to explore the option of outsourcing certain functions, will also be introduced to government departments. A spokesperson for the CPSU told the media in response: "Contestability tests are nothing more than cover for massive outsourcing and privatisation programs that will see jobs and services sold off".
The Age's Phillip Thompson informed readers that the MYEFO indicates that the government has left open the possibility of implementing another job cull after Monday's announcement. Mr Hockey's budget update also featured:
- Extra public service superannuation fees.
- Costs for a new Australian Tax Office building at Gosford.
- The possibility of selling off a Canberra-based inter-departmental communications network.
- A goal to increase the number of indigenous employees.