Bailout backing was offered to Zoos Victoria a year before job cuts

The Allan government provided bailout guarantees for Zoos Victoria, Phillip Island Nature Parks and Alpine Resorts Victoria, a year before Zoos Victoria’s announcement it would axe an estimated 70 jobs.

Zoos staff were briefed last week that a restructure was in progress, this masthead revealed on Wednesday, and would be implemented by October as the loss-making organisation grapples with rising costs and flat-lining government and grant funding.

Documents released under freedom of information laws reveal the treasurer signed an advance application for a “letter of comfort” to the three agencies on June 27, 2025. Financial comfort letters provide assurances to creditors, lenders and suppliers that the government will guarantee funding or prop up an organisation if required.

At least seven other cash-strapped Victorian public entities are reliant on bailout guarantees from Treasury, including Museums Victoria, which has also cut jobs in the past year, and Greater Western Water.

Zoos Victoria posted a net operating deficit of $5.6 million in the 2024-25 financial year, after its operating expenses jumped to $137 million, a $9.3 million increase on the previous year.

A state government spokesman said letters of comfort were a responsible practice “consistent with the government’s fiscal strategy to deliver strong financial management, and the frontline services Victorians rely on”.

“Zoos Victoria is operationally self-sufficient and did not require any additional funding from the government in financial year 2024-25,” he said. He said no additional funding was provided this financial year.

Opposition Leader Jess Wilson said the offer of a bailout for Zoos Victoria was a reflection of the dire state of the state’s finances.

“Zoos Victoria is yet another in a growing list of government agencies reliant on emergency financial support to remain a going concern,” Wilson said.

“This situation is simply unsustainable, and Labor’s financial mismanagement of these agencies ultimately means higher costs and poorer services for Victorians.”

As Zoos Victoria negotiates with its staff on the proposed cuts, conservationists and the CPSU union fear the cuts will undermine critical conservation work including to bring threatened species like Leadbeater’s possums – the state’s fauna emblem – back from the brink of extinction.

The union says staff have been told Life Sciences teams – responsible for overseeing the welfare of animals under their care – will be cut, including all life science manager roles at Healesville Sanctuary, in favour of a few “precinct manag