Major federal agencies have backed a new deal on pay and conditions. 

More than half of the Australian Public Service (APS) have endorsed an 11.2 per cent sector-wide, three-year pay deal that eliminates all restrictions on working from home. 

The decision by the staff of Services Australia, Home Affairs, Defence, and the Australian Tax Office introduces a formal bias towards accepting work-from-home requests, with a stipulation that operational and customer service imperatives will take precedence.

The arrangement, which has drawn sharp criticism from the business sector, marks the federal government as Australia's largest single employer to formally discard work-from-office mandates. 

Ai Group, a lobby for small and medium business employers, has labelled the agreement as “nauseating”, accusing the public service, unions, and the federal government of being disconnected from the realities of the workplace.

Innes Willox, CEO of Ai Group, says there is frustration in the private sector about a perceived gap between public service practices and the needs of businesses that require physical presence, such as truck driving and healthcare. 

Businesses are allegedly concerned that the public sector's embrace of remote work could set a precedent that might not align with broader economic interests.

Melissa Donnelly, national secretary of the Community and Public Sector Union, has defended the flexibility the new agreement offers, arguing it presents an opportunity for both employers and employees. 

Donnelly notes that not all public servants would benefit from this flexibility, citing frontline roles such as Border Force staff at airports as examples where work-from-home arrangements are impractical.

Opposition employment spokesperson Michaelia Cash has called on the government to ensure these new arrangements deliver value for money to Australian taxpayers and do not compromise productivity.

The deal, enhanced by a one-off bonus on top of the 11.2 per cent pay rise over three years, was ratified by CPSU members last year, setting a precedent for future negotiations in public and potentially private sectors.