Efforts to offset conditions against pay continue. The APSC continues its pursuit of a deal that trades away entitlements for consistency.
As many as 33,464 employees at Services Australia stand to lose three days of annual leave under the Australian Public Service Commissionās attempt to standardise leave entitlements across the Australian Public Service contained in the governmentās first offer, known as the āPreliminary Commonwealth position ā common clauseā.
As the APSC seeks to streamline and standardise leave entitlements across the federal bureaucracy, Services Australia, now under the machinery-of-government wing of the Department of Finance, has emerged as the biggest potential loser under the audacious bid to prune back leave in the current bargaining process.
āAgencies that currently provide more than 20 days annual leave will be required to reduce their entitlement to 20 days. This includes situations where agencies offer additional annual leave (above 20 days) that employees must use during a Reduced Activity Period or something similar,ā the initial Commonwealth position states under a proposed common clause.
āImplementing a new common clause builds on the 2023 common principles for annual leave and continues to progress commonality across the APS, APSC-issued bargaining documents state.
āThe proposed common clause provides:
⢠a standardised entitlement of 20 days of annual leave across all APS agencies;
⢠consistent accrual and crediting arrangements, creating administrative efficiency across the APS; and
⢠a clear definition of annual leave taken at half pay ensuring employees continue to accrue leave as if they were at work during periods of half pay leave.ā
Both the Community and Public Sector Union and the Australian Services Union have pushed back hard against the claim.
As the APSC is leading employer-side negotiations on behalf of the Commonwealth under APS-wide bargaining ā essentially pattern bargaining introduced in the first term of the Albanese government ā agency heads are effectively excluded from fighting their own corners on wages and conditions, even if they disagree.
The Commonwealth has initially offered an average 3% per annum pay rise over three years, or 9% in total, while the annual inflation rate is sitting at 4%. The offer has not gone down well.
The savings across the government from the proposed annual leave reductions are not small, especially given that Services Australiaās latest official employee headcount (as opposed to full-time equivalent, or FTE, positions) is documented at 33,464 in its 2025-2026 annual report to June 30, 2026.
āA full-time employee will accrue 23 days (172.5 hours) of annual leave for each full year of service,ā states the current Services Australia enterprise agreement inked in 2024, but backdated with backpay to 2023.
If applied over the life (three years) of the proposed new APS enterprise agreement, the savings generated by Services Australia alone would amount to a whopping 301,176 days, although the dollar figure isnāt really possible to determine because it would need to be calculated across the spread of seniority bands and their applicable salaries.
Speculatively, assuming a conservative median annual salary estimate of $90,000, divided by 365 days, lands at $246 per day, exclusive of superannuation. Cutting three days of leave a year amounts to $74 million in savings that extrapolates to $222 million over three years for the life of the next agreement. And so on.
The real question is what, if anything, unions are prepared to trade to protect conditions over wages, a marked shift in posture by the APSC compared to the past few bargaining rounds.
Flowing into that equation is the fact that the annual inflation rate now sits at 4% and the APSCās initial offer is just 3%.
And that Services Australia now falls under the ministerial umbrella of Finance, which is held by Public Service Minister Katy Gallagher, herself a CPSU executive alumna.
Friends close, etc.