2019-10-22 09:40:121970-01-01 00:00:00


Victorian Treasurer Tim Pallas announced the Victorians public sector wages bill is forecast to spring over 16 percent of the forward estimates, increasing by $2 Billion this financial year, with estimates of increases to $33.1 billion by 2023.

Pallas also announced the government will withdraw just under $2 billion from the state public sector over the next four years, including a further $1.77 billion in new ‘whole of government efficiencies’. Annual wage growth in Victoria is predicted to increase by approximately 3 percent next financial year, higher than the national growth rate of 2.75 percent in the federal budget. The national and Victorian annual wage growth rates are predicted to increase to 3.25 percent and roughly 3.5 percent in the subsequent two years.

Pallas’ further remarks upon the cuts explaining that they would be successfully achieved without any job reductions and any redundancies would be considered as a ‘last resort’. An additional $200 million will be saved through the cuts to spending on consultancies and labour hire, as flagged before last year’s state election. The new enterprise agreements off the back of these budget cuts are due to be renegotiated with paramedics, police, and roughly 40,000 public sector servants potentially forcing the Andrews government to face numerous industrial battles with unions.

Repercussions of the cuts have yielded economic forecasts and indicators towards the underlying balance for the nominal gross state product to increase from $451 billion to Wages: Tipped $548.5 billion, as well as an increase in the unemployment rate from 4.5 to 5.5 percent by the year 2022-23, per Victorian budget papers. The state budget papers further indicated the government employee expenses, including superannuation, were forecast to grow from $26.52 billion last year to $28.57 billion in July. Employee expenses are forecast to grow a further $29.7 billion by July next year to $31.2 billion a year later, and a subsequent $33.1 billion by July 2023. 80 Percent of this year’s public sector wage forecasts are higher than predicted last year, with the wages bill for the 2020-21 financial year expected to increase to $500 million from 12 months ago. CPSU Victorian secretary Karen Batt said the Treasury wage forecasts “Over the forward years augurs well for bargaining next year and beyond”. Last year’s state budget saw the public sector wages bill increase 11.2 percent and the government deviating from previous forecasts by $1.5 billion to finance the pay rises and recruitment of staff ahead of the election. Treasury commented Victorian wages growth had been “below trend” over the current economic cycle, consistent with national and international movements.

Government infrastructure investment has increased just under $8 billion from the financial year 2015 per the Victorian budget papers. Treasury has said the growth reflected increases in the public sector workforce, hospitals, and schools inclusive along with pay rises flowing from renegotiations within enterprise agreements. In opposition Treasury spokeswoman, Louise Staley said public sector wages had “blown out by 42 percent under the Andrews government but critically with no real increase in frontline services”.

Despite unions accepting the government assurance that public sector spending cuts would not result in redundancies, the Greens Treasury spokesman Sam Hibbins said the budget was “built on the back of cuts to public sector jobs and wages’. He further mentioned that nearly $2 billion will be taken away from the public sector, and not being taken away from the large bank profits or property developers, the labor government has gone after public sector jobs and wages. Victorian Chamber of commerce and industry chief executive Mark Stone called for recurrent government spending to be kept in check. “Business wants to see the government commit to keeping public sector wage growth in line with the private sector.

By Alex Shambly

Click here for a 7 days access to our Lotus Blue Portal.

KOSEC does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information provided. KOSEC is intended to provide general information only. Please be aware that investing involves the risk of capital loss. This message is confidential and may be privileged. It is intended only for the use of the addressee named above. If you are not the intended recipient, any unauthorised dissemination, distribution or copying is illegal. We do not guarantee the security or completeness of information hereby transmitted and are not liable in either respect or in respect of any delay. Nothing in this message is intended as an offer or solicitation for the purchase or sale of any financial instrument. Any market prices or data, unless specifically verified and identified as such, are not warranted as to completeness or accuracy. Kodari Securities Pty Ltd (KOSEC) is a Corporate Authorised Representative (No. 399 556) of Longhou Capital Markets (AFSL No. 292464) which is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC wishes to disclose that KOSEC and its staff may hold stock they recommend in their own portfolios and that any decision to purchase recommended stock should be done so after the purchaser has made their own inquires as to the suitability to their own requirements. Click here to view our FSG.

KOSEC Terms & Conditions

Kodari Securities Pty Ltd (CAR 399556) trading as KOSEC is regulated by the Australian Securities and Investment Commission (ASIC). KOSEC is a financial services company and any information provided by its platforms, portals, reports and documents is protected by copyright. Any unauthorised production of this information is prohibited.
KOSEC reserves the right to change or remove any information provided on our website, reports or any documents including these terms and conditions at any time without notice. The change or modification to the terms and conditions will be effective immediately upon posting an updated version on our website, necessary platforms and documents. It is recommended that you review the information provided on our website, including these terms and conditions frequently for any changes.

KOSEC provides general advice only. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. KOSEC recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Please make sure you read our Financial Services Guide (FSG).

KOSEC does not guarantee any returns. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance). Investing in the stock market can incur huge losses. Please also be aware that fees will incur on every transaction regardless of the performance of your investments or returns generated. Employees and or associates of KOSEC may hold one or more of the stocks, securities or investments reviewed by the company.

Your use of information from our website, reports, documents and from talking to our representatives/associates is at your risk. Under no circumstance should the investment be based solely on KOSEC information and general advice. You should seek professional financial planning advice.
KOSEC aims to maintain the accuracy of the data and information provided on this website, by using information prepared from a wide variety of sources, which KOSEC to the best of its knowledge and belief, considers accurate and does not make any representations or warranties of any kind, expressed or implied, about the completeness, accuracy, reliability, suitability or availability of the information provided.

We may at times refer to third parties, which the details of these third parties have been provided solely for you to obtain further information about other relevant products and entities in the market. KOSEC has no control over the information third parties have, or the products or services offered, and therefore make no representations regarding the accuracy or suitability of such information, products or services. You are advised to make your own enquiries in relation to third parties. Our inclusion of any third party content is not an endorsement of that content or the third party.

As a client you will be charged a yearly service fee and a set brokerage fee per transaction. Your service fee will automatically renew at the end of your agreed 12 month period at the same rate advertised at the time. Your credit card or bank account will be charged for a further year following which will again auto renew until you cancel your yearly service fee. You can cancel the auto renewal at any time in advance of the renewal date by contacting us. KOSEC is aware of the need to ensure the security of your credit card details and our payment systems are compliant with the Payment Card Industry (PCI) Data Security Standard.

You consent to receiving email correspondence from KOSEC, as well as companies KOSEC has an association with. These emails will be sent by KOSEC and third party companies. You can opt out of receiving any category of emails at any time by contacting us. We may from time to time inform you of special offers, or even ask your opinion of the services we provide, but your involvement is optional. Should you request us to do so, we will archive your details.

Indemnity and Liability
You indemnify KOSEC from all claims or threatened claims, suits, demands, damages, costs as well as including legal costs incurred in dealing with any threatened claim, expenses made by any person or corporation against KOSEC and any other amounts which is caused by KOSEC providing information, execution and General Advice.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from a decision made by you on the basis of information obtained through the use of our portal, reports, documents or any General Advice given and any transaction taken place.

You hold KOSEC harmless and release it from any liability in respect of any loss, harm or damage arising from delays in executing orders for the client and acknowledges KOSEC makes no guarantees about the time taken to execute an order on behalf of the client. You acknowledge that KOSEC relies on third parties in providing technology and release KOSEC from any harm, loss or damage you may suffer as a result of the failure of such information technology.

Cookies and Links
KOSEC website, and its portal uses cookies, which lets us identify your browser while you are using the site or our portal. Cookies do not identify you personally. They simply allow us to track your usage patterns. If you prefer not to receive cookies, you can configure your browser to reject them or to notify you when they are being used. The functionality of the KOSEC website may be impacted if you restrict the use of cookies.

Fill up the form below and we will get back to you as soon as possible.



KOSEC’s CEO, Michael Kodari’s new book, “Stock Market Success” valued at $39.95, available at Dymocks book stores with all the proceeds going to Dymocks Children’s Charities.


Latest TV Commercial