The Australian Public Service Is the Biggest It’s Ever Been. And the Fight Is Over Seven Minutes.

Most small business owners I know would love a problem like this. Imagine your biggest headache being that some of your team might have to work a few extra minutes a day.

That’s the fight happening in Canberra right now.

What’s actually on the table?

The government’s chief negotiator, Alison Stott, has tabled a proposal for a standard 7.5 hour work day across the Australian Public Service. It also includes a four-week cycle to record, balance and settle flex time, and 20 days of annual leave a year as the AUSTRALIAN PUBLIC SERVICE-wide standard.

Here is the most interesting part. About 80 per cent of Australian Public Service employees already work 7.5 hour days. The ATO, for example, kept a 36¾ hour week in the last round.

The union’s response? The CPSU says the changes would weaken access to existing arrangements in some agencies, and that protecting existing conditions is one of its members’ highest priorities this round. The Commonwealth is also proposing paid time off between Christmas and New Year for all Australian Public Service staff, without using annual leave.

Seven and a half hours. Paid flex time. Taxpayer funded. And it’s being treated like an attack.

How big is the Australian Public Service right now?

Bigger than it has ever been.

When Labor came to power in mid-2022, the Australian Public Service had 159,469 employees. By June 2023 it was 170,332. By June 2025, the headcount stood at 198,529, up 7.4 per cent in a single year.

That’s roughly 39,000 extra public servants in three years. A 24% jump.

It dipped slightly by December 2025 to around 195,800. Nobody should mistake that for belt tightening.

How much has their pay gone up?

The last deal delivered 11.2 per cent over three years: 4 per cent in year one, 3.8 per cent in March 2025 and 3.4 per cent in March 2026. With compounding, final salaries end up around 11.6 per cent higher, and more again for anyone moving up a pay point.

Now the CPSU wants more. It has lodged a claim for 5 per cent a year, or CPI, whichever is higher. That’s 15% over three years, minimum. Even the Finance Minister said the claim was probably impossible.

Compare that to the people paying for it. In the year to June 2026, private sector wages rose 3.1% while public sector wages rose 3.4%. Only 10% of private sector jobs saw a wage change that quarter, the lowest proportion since June 2020.

Small businesses are holding wages flat to survive. The public sector is asking for a guaranteed 5% floor.

Are public servants really paid more than the rest of us?

Yes. The research is consistent on this.

One major Australian study found public sector workers earn about 18% more per hour than private sector workers on raw numbers. Once you adjust for things like qualifications and experience, the gap shrinks to about 5.1%. A newer study covering 2001 to 2022 found the premium holds even after controlling for those differences.

Then there’s super. Public servants get a 15.4 per cent employer contribution. The rest of us get 12%.

Add flex time, generous leave, job security and paid Christmas closedown, and the real package gap is bigger than any wage table shows.

What will the other side say?

Let’s be fair about it. Supporters argue much of the growth came from bringing outsourced work back in house and replacing expensive contractors. They’ll say more staff means better services, faster Centrelink calls and fewer consultants.

Maybe. But taxpayers were promised savings from that shift. Where are they? Agencies are now under enough budget strain that voluntary redundancies are sweeping the public service. If the model is working, why are they cutting staff and asking for 15% at the same time?

Why did we need so many of them?

This isn’t about whether public servants work hard. Plenty do.

It’s about value. Nearly 200,000 people. Pay rises that outpace the businesses funding them. Conditions most SME owners could never offer. And a union fighting a standard working day most of its members already work.

Every small business owner in this country has had to ask one hard question in the last few years: do I actually need this role? Canberra should be asking the same thing.

At HR Gurus, we cut through the BS on workplace rules so you can run your business, not babysit red tape. If you’re trying to compete for staff against conditions like these, talk to us.

Frequently asked questions

What is the Australian Public Service proposing on working hours?

The Commonwealth wants a standard 7.5 hour work day across all AUSTRALIAN PUBLIC SERVICE agencies, a four-week cycle for settling flex time, and 20 days of annual leave as the AUSTRALIAN PUBLIC SERVICE-wide standard.

How many people work in the Australian Public Service?

The AUSTRALIAN PUBLIC SERVICE had 198,529 employees at June 2025, its largest ever headcount. It sat at around 195,800 in December 2025.

How much did Australian Public Service pay rise under the last agreement?

AUSTRALIAN PUBLIC SERVICE employees received 11.2% over three years: 4% in year one, 3.8% in 2025 and 3.4% in 2026.

What pay rise is the CPSU asking for now?

The CPSU is claiming 5% a year or CPI, whichever is higher, which works out to at least 15% over three years.

Are public sector workers paid more than private sector workers?

On average, yes. Research puts the raw gap at around 18% per hour and about 5% once skills and experience are accounted for. AUSTRALIAN PUBLIC SERVICE employer super of 15.4% adds to the gap.

Does this affect private sector employers?

Indirectly, yes. Australian Public Service conditions set a benchmark that small businesses compete against when hiring, especially in Canberra and regional centres where AUSTRALIAN PUBLIC SERVICE jobs are growing.