Mike Nahan

The WA budget asks 54 agencies to cut back on spending to stretch declining state revenue even further. While the hiring freeze has thawed, wages have been capped as the state projects its largest ever operating deficit.

CORRECTED: Victorian public servants have been offered a generous service-wide enterprise bargaining agreement — the union is urging a “yes” vote. But it’s to the barricades in other jurisdictions, where austerity dominates.

It didn’t work for the federal government, but now Western Australia has vowed to cap public sector pay rises to 1.5% in another blow to bureaucrats who have borne the brunt of cost-cutting austerity.

The Western Australian budget hinges on “best practice” public service cuts which the Treasurer says the public and business owners will barely feel, as well as big reductions in the IT spend.

After acting in the role for 14 months, Michael Barnes has been appointed the head of WA’s Treasury. More vacant positions can now be backfilled as the state enters its toughest budget since the iron ore mining boom.

Budget cuts across the WA public service will lead to workforce renewal, the government says. But others worry it will just reduce capacity and capability.