Austerity hits NSW with “horrible” budget looming

Advertisement

Just as the federal government is looking to pump $5 billion of stimulus into the Australian economy to ward off recession, their counterparts are looking to freeze public sector wages as part of a “horrible” budget:

A one-off wage freeze for all public sector workers is on the table as the NSW government weighs a range of controversial options to limit a likely budget deficit caused by the summer bushfire crisis and the growing coronavirus threat.

Three cabinet sources told The Sun-Herald a wage freeze was being discussed by colleagues as a means of avoiding a large deficit, and had been suggested by several departmental secretaries.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.