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 managers”.
“The idea that vets and nurses already at capacity can pick up admin and management tasks beggars belief and shows how little Zoos Vic management understand the work their staff do,” Community and Public Sector Union (CPSU) Victorian branch secretary Jiselle Hanna said.
“Healesville is a world-leading conservation centre of expertise. Cutting any number of staff risks this essential and important work. Leadbeater’s possum – Victoria’s faunal emblem – is critically endangered, and these cuts could put the species at real risk of extinction.”
A spokeswoman for Zoos Victoria rejected this, stressing that several critically endangered species including helmeted honeyeaters had been “brought back from the brink” thanks to the good work of the organisation’s devoted experts.
“This will not change, nor will our actions contribute to species decline in our state – quite the opposite.”
Zoos Victoria has told staff it will consult them and their unions (some employees are members of the United Workers Union) on the rollout of its intended restructure over the next six to eight weeks.
The spokeswoman said there would be no cuts to frontline services, and no ongoing conservation or wildlife rescue roles would be cut.
She did not directly answer whether threatened species programs, emergency response programs, and conservation programs would be exempt from the cuts, but said those programs “are central to our purpose and considered foundational to our organisational priorities”.
“The proposed changes are being considered in order to streamline our structures, reduce duplication, enable clearer accountabilities and drive new ways of working, as opposed to ceasing any of our core programs,” she said.
“The proposed changes to the organisational structure are intended to increase efficiencies, not place administrative burdens upon remaining staff. We expect, encourage and welcome feedback from our staff, given the operating model review was conducted by the senior executive team at a strategic level; there will be operational nuances and valuable detail from staff that we need to consider further through this consultation process.”
Members have told the CPSU that new precinct managers will have an “impossible” workload and be expected to manage multiple teams of zookeepers across several locations.
“These cuts are an awful deal for the workers, and for families, visitors, schools and the animals. The workers who remain will be expected to do more with less. That means increased workloads, higher stress, burnout risks and the loss of decades of collective knowledge and experience,” Hanna said.
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Bianca Hall is The Age’s environment and climate reporter, and has worked in a range of roles including as a senior writer, city editor, and in the federal politics bureau in Canberra.Connect via X, Facebook or email.