Jul 15, 2026 – 5.37pmTreasurer Jim Chalmers’ budget bakes in the equivalent of more than 41,000 public service job cuts over the next decade – the same number Peter Dutton proposed before the last election – despite economists arguing the reductions are unlikely to ever occur.The Parliamentary Budget Office on Tuesday warned the federal budget’s return to surplus in 2034-35 hinged on a series of potentially unrealistic assumptions, including unprecedented restraint in NDIS spending, no further income tax cuts, a shrinking public service and the termination of all temporary government programs.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Chalmers’ budget hinges on 41,200 public service job cuts
The cut is similar to what the Coalition pledged at the 2025 federal election, but economists don’t believe the government will follow through.
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