By CAM LUCADOU-WELLS
IT was perhaps a bad omen on the eve of a “heavy-lifting” federal budget.
About 700 staff were evacuated from the Australian Tax Office building in Dandenong due to a lift motor catching fire last Monday morning.
The following night, the Federal Government announced 2329 staff from the ATO were to be cut over three years from its 21,397-nationwide workforce.
According to budget papers, the move will save $142.8 million as part of the government’s quest to “repair the budget”.
Community and Public Sector Union deputy president Alistair Waters said it could mean the loss of about 100 jobs in the Dandenong office – which will “affect 100 families as well as shops in the area and the local community generally”.
Mr Waters said it was likely to include involuntary redundancies.
He said the cuts didn’t make sense, claiming every dollar of tax office resources recouped $100 of collected taxes.
“It’s clearly a win for high-end tax dodgers.
“It’s going to impact on the amount of revenue that’s collected and the tax office’s capacity to ensure everyone is paying their share of tax.”
An ATO spokeswoman said the tax office was “working through” how to meet the “budget targets while positioning us for the future”.
Its planned move into a new building, yet to be constructed, in central Dandenong in late 2015 remained on track, she said.
Its design won’t be amended to accommodate fewer staff.
“Funding for this has been allocated and is not affected by the budget announcements,” the spokeswoman said.
“The ATO is committed to the Dandenong region and has signed a 15-year lease.”