South Australia Public Service Faces Job Cuts in Upcoming Budget

South Australia's public service faces cuts as the state Labor government gets set to announce its first budget on Thursday, since its resounding election win in March.

The government says only replacing one in two employees who leave non-frontline positions will save the budget $120 million a year, as the state heads towards a debt of $50 billion.

Treasurer Tom Koutsantonis says the measure will result in 1,000 fewer full-time equivalent back office jobs in the public service that would otherwise be the case over the next 12 months.

"This is a simple measure we can take that will deliver significant budget savings while ensuring the public service continues to function efficiently and without impacting service delivery or frontline services," he said.

Mr Koutsantonis said significant private sector investment in South Australia meant there was a contest for labour.

Public Service Association of South Australia general secretary Charlotte Watson said the union was "alarmed" by the announcement that was flagged two days ahead of the state election.

"The people that they're talking about — these are the people that are making sure that the frontline workers are getting paid," Ms Watson said.

"These are the people that are making sure families are housed, children are protected and that the state is properly advised on crucial matters like the algal bloom."

Announcements ahead of budget

Thursday's state budget will be the first Mr Koutsantonis has delivered since he returned to the treasury portfolio last September.

He was also treasurer under former premier Jay Weatherill between 2014 and 2018.

Already, the government has announced measures to help home buyers and to make preschool available for more three year olds, as well as making the Seniors Card available to all South Australians over 60 years old and Indigenous people over 50 years old.

"From July 1, 80,000 more South Australian seniors will be able to access real savings on essentials like fuel, transport and groceries," Premier Peter Malinauskas said.

"This is about putting money back into people's pockets and making everyday life more affordable."

In a pre-budget announcement earlier this week, Minister for Domestic, Family and Sexual Violence Alice Rolls said wiping stamp duty and making the First Home Owner Grant available to domestic, family and sexual violence survivors would help them re-establish themselves in secure, independent housing, in a move that would cost $4 million.

"Most of the time, victims have to move away from their home when the relationship ends and start again, and what we are looking at is trying to remove barriers for those victims, most of whom are women in trying to purchase a new home," she said.

Another $50 million will be included in the budget to enable infrastructure to accelerate construction of 400 houses for first home-buyers in Munno Para.

Fifty South Australian long day-care centres will provide preschool for three year olds from next month, using funding announced in 2024 but brought forward in Thursday's budget.

An extra 140 centres will offer the service from next January.

Education Minister Lucy Hood said the program could make a significant difference in families' lives.

"So between now and next year, we're going to have an extra 1,500 kids accessing that early, teacher-led, play-based learning," she said.

Push for more effort on debt

Opposition Leader Ashton Hurn said policy and administrative roles were growing faster than frontline positions in the state government and more could be done to rein in debt.

Last year's budget forecast the state debt to rise to $48.5 billion by 2028–29.

Mr Koutsantonis said the Liberals had proposed $1.6 billion in extra spending since the state budget but complained about debt rising, which was already forecast under the Liberal government that was ousted in 2022.

"Despite their election defeat, they have learnt nothing — they are still promising everything to everyone, with no plan to pay for it and no regard for the consequences," he said.