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Treasurer Eric Abetz warns of 'tough' budget as questions mount over frontline job cuts

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Premier Jeremy Rockliff with Treasurer Eric Abetz. Image / File

Treasurer Eric Abetz has refused to rule out cuts to frontline jobs in next week’s state budget, a day after Premier Jeremy Rockliff also stopped short of giving the assurance.

Asked on Friday whether nurses or teachers could be cut, Abetz did not give a guarantee.

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“I’m not going to rule those matters in or out,” Abetz said.

“There’s no doubt it’s going to be a tough budget and we will be focusing very much in relation to those jobs that are behind the scenes.”

He said the government remained focused on service delivery.

Treasurer Eric Abetz refused to rule out cuts to frontline jobs. Image / Pulse (File)

“We will ensure that the important vital services that Tasmanians expect will continue to be delivered,” Abetz said.

“It’s not a binary choice between providing a caring community and a balanced budget.”

He said a balanced budget was needed to protect frontline services in the long term.

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“If we don’t get to that situation of a balanced budget, we all know the interest component will increase and, in these circumstances, the capacity to maintain frontline services will be prejudiced,” Abetz said.

The treasurer’s comments came a day after the premier was twice asked the same question and declined to rule cuts in or out.

The state government confirmed a $506 million bailout for TT-Line. Image / Hype Productions

“We’re continuing to invest in frontline services and that’s what we will do,” Rockliff said on Thursday.

The state government has forecast a $1.01 billion deficit for 2025/26 and ruled out new taxes and asset sales.

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Abetz has asked state agencies to find $150 million in annual savings from 2026/27 and the government has flagged a reduction of 1,800 public sector positions by 2032.

On Friday, the state government also confirmed a $506 million bailout for TT-Line to cover capital cost overruns on the Spirit of Tasmania ferry project.

Independent MP Peter George said the timing of announcements was no accident. Image / Pulse (File)

Independent MP Peter George said the timing of the announcements was no accident.

“The minority Liberal government is getting the bad news out of the way before the budget,” George said.

Independent Clark MP Helen Burnet said health, community services, education and the environment should not pay the price for the bailout.

“The big question is, where is the money going to come from to pay for the massive bailout?” she said.

Greens leader Rosalie Woodruff called for clearer assurances on frontline jobs. Image / Pulse (File)

“Will it mean deeper cuts from the budgets of our state departments or will the government stop one of its other overpriced infrastructure projects?”

Greens leader Rosalie Woodruff said she wanted clearer assurances on frontline jobs.

“It’s deeply disturbing to hear the premier has refused to rule out cuts to frontline jobs in next week’s budget,” Woodruff said.

Treasurer Eric Abetz will hand down the state budget on May 21. Image / Pulse (File)

“When Jeremy Rockliff was asked to rule out any frontline cuts, it would have been simple for him to repeat his past lines and affirm this wasn’t on the table.”

“He failed to do so, which raises real fears about what he is planning.”

The state budget will be handed down on May 21.

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