SA public service faces cuts as state budget to be handed down

Treasurer Tom Koutsantonis will hand down his fifth budget on Thursday. (ABC News: Ashlin Blieschke)

About 1,000 full-time equivalent jobs in the South Australian public service will not be filled over the next 12 months.

New funding has also been announced to establish an SA commission for truth-telling and treaty.

Cuts to South Australia's public service and new funding for a treaty commission have been announced as the state Labor government gets set to reveal its budget on Thursday.

The government says that only replacing one in two employees who leave non-frontline positions will save the budget $120 million a year, as the state heads towards a debt of $50 billion.

The budget will also include $8.5 million over four years to establish a commission to undertake truth-telling and progress treaty activities, after SA became the first Australian jurisdiction to form a state-based Voice to Parliament.

The commission will be headed by Aboriginal leaders, with the government announcing appointments will begin in the 2026–27 financial year.

"This investment will support further work toward treaty, a formal agreement between the state government and Aboriginal South Australians, aiming to close the gap and improve outcomes in health, education, economic development and other areas," Aboriginal Affairs Minister Kyam Maher said.

Victoria is the only state to have a formal treaty, while First Nations leaders have renewed calls for a federal process to get underway.

Treasurer Tom Koutsantonis says the measure will result in 1,000 fewer full-time equivalent back office jobs in the public service that would otherwise be the case over the next 12 months.

"This is a simple measure we can take that will deliver significant budget savings while ensuring the public service continues to function efficiently and without impacting service delivery or frontline services," he said.

Mr Koutsantonis said significant private sector investment in South Australia meant there was a contest for labour.

Union leader Charlotte Watson says the cuts will affect frontline services. (ABC News: Will Hunter)

Public Service Association of South Australia general secretary Charlotte Watson said the union was "alarmed" by the announcement that was flagged two days ahead of the state election.

"The people that they're talking about — these are the people that are making sure that the frontline workers are getting paid," Ms Watson said.

"These are the people that are making sure families are housed, children are protected, and that the state is properly advised on crucial matter