00:01As state budget day approaches, the Tasmanian government is looking for ways to dig itself out of debt.
00:09We need to make sure that we are supporting Tasmanians, growing our economy and providing cost of living relief.
00:16That's really our focus.
00:17The ABC understands the state's Treasury Department is investigating ways to reduce the state's unfunded superannuation liability,
00:25which is predicted to exceed $7 billion by June.
00:30One option it's considering, shrinking super payments to public servants who get more than $200,000 a year under the
00:37old defined benefit scheme,
00:39which closed to new members in 1999.
00:42This would likely affect a small number of former judges, heads of departments and senior politicians.
00:49Public sector unions aren't impressed.
00:51If you start a job, you sign a contract.
00:54And for a government to be able to use their power 20, 30, 40 years later to change those terms
01:01is really problematic.
01:03Economist Saul Eslake has previously recommended the government consider shifting current public servants out of the scheme.
01:10But he warns changing the rules for already retired workers could be a legal minefield.
01:16The government probably can't go back on those kind of deals without exposing itself to a court challenge which it
01:24may well lose.
01:25There's no doubt they need to take strong action around the budget to repair the budget that they've mismanaged over
01:30the last 12 years.
01:31But we'll need to wait and see what detail they present and what their proposal actually is.
01:35Treasurer Erica Betts has flagged a number of tough decisions will have to be made in the next state budget,
01:41with Tasmania's debt expected to pass $7 billion this year.
01:45The government says a range of options are being considered to get the state's finances back on track.
01:51.
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