ACT Government to Table Revised Wage Proposal for Public Servants
Public servants employed by the Australian Capital Territory government are poised to receive a new wage offer in the coming weeks. This development follows the outright rejection of an initial proposal that would have provided a pay increase exceeding 7.5 per cent over a three-year period.
Negotiations Continue in Good Faith Amid Expiring Agreements
ACT Public Service and Finance Minister Rachel Stephen-Smith has confirmed that the government remains committed to negotiating in good faith. However, she emphasised a desire to finalise the enterprise bargaining process as swiftly as possible. A significant number of agreements covering various staff cohorts are scheduled to expire on March 31.
"The unions have agreed, and we are doing a lot of work to ensure that we're negotiating the core elements of the agreements alongside and in parallel to the various streams," Ms Stephen-Smith stated.
Details of the Rejected Offer and Fiscal Considerations
The previously rejected offer outlined a structured pay rise: a 3 per cent increase in the first year, followed by 2.5 per cent in the second year, and 2 per cent in the third year. Minister Stephen-Smith noted that the territory's budget already includes provisions to fund the eventual outcome of these bargaining talks.
She highlighted the government's dual focus during negotiations: understanding the impact of cost-of-living pressures on public servants and their families, while simultaneously maintaining a responsible fiscal approach. "What we're seeking to do is to understand the pressures and the impact of cost of living and inflation on public servants and their families, but also to recognise that we need to take a responsible fiscal approach to this," she explained.
Below-Inflation Concerns and Union Feedback
With the wage price index projected to rise by 3.5 per cent in the 2025-26 financial year and at least 3 per cent thereafter, the initial offer was positioned to be a below-inflation deal. The government has acknowledged this context and is preparing an updated proposal.
"We expect to make an updated offer responding to union feedback and also to respond to the hundreds of claims that we've received over the next few weeks," the Minister added. The revised offer will also consider significant improvements already on the table regarding conditions such as parental leave and bonding leave.
Budgetary Constraints and Efficiency Measures
The recent mid-year budget review identified the resolution of the bargaining process as a potential risk to the fiscal outlook. In response, the government has directed all public service directorates to implement efficiency measures and constrain expenditure growth.
These measures, outlined in the previous budget, are expected to yield savings of $29.5 million in 2025-26 and $282.2 million over the forward estimates period. "It's not about cutting. It is about constraining the rate of growth," Stephen-Smith clarified, noting that spending increases in critical areas like public hospitals and schools would still be necessary to meet community demands.
The government's challenge remains balancing fair remuneration for its workforce with the ongoing task of medium-term budget repair.
