ACT public service bosses will be able to access funding and offer voluntary redundancies in a bid to meet stricter budgets as the government sets a tighter limit on staff growth.
The public service will not be allowed to grow faster than the ACT population under a new fiscal target set in the released 2026-27 budget, which follows a 30 per cent rise in the number of government workers since 2018-19.
Public Service Minister Rachel Stephen-Smith said it was up to public service bosses how many jobs would be cut and that "many public servants actually jump at the opportunity to take a voluntary redundancy when it's available".
The number of full-time equivalent staff in the ACT public service is set to reach 30,224 in 2026-27, up from an estimated 29,883 in 2025-26, which was almost 400 more than budgeted for.
An updated fiscal strategy, released with the ACT budget on Wednesday, committed the government to ensuring "growth in general government employment does not exceed growth in the ACT population".
The budget includes funding for a restructure program that will offer funding for voluntary redundancy packages across the ACT public service.
The program is expected to cost $35.4 million over four years but produce savings so the program delivers an expected net saving of $6.4 million.
"Staff participation will be voluntary, and decisions will be guided by the need to maintain delivery of priority government work and essential services," the budget said.
Ms Stephen-Smith said the heads of the ACT's directorates could choose to access the restructure fund if they thought voluntary redundancies were needed to meet their budgets.
"We know that many public servants actually jump at the opportunity to take a voluntary redundancy when it's available. But the commitment that we have made to the unions and to our existing staff is that this isn't about our public servants doing more with less," Ms Stephen-Smith said.
"This is about delivering services as efficiently as possible. And many teams have put forward ideas about how things could be done more efficiently in bringing together City and Environment Directorate, bringing together Health and Community Services Directorate, for example.
"Teams have already worked together to identify where they can do things more efficiently."
Ms Stephen-Smith said directors-general would make decisions about whether or not they need to offer voluntary redundancies or could manage costs with natural attrition.
"Each of the directors-general is currently working through what their final budget outcome is, and each of them will make their own decisions in consultation with staff," she said.
"But also in consultation with ministers to ensure that essential services are maintained and that staff aren't expected to do more with less, creating a psychosocial workplace hazard, which we are very, very conscious that we know that staff are under pressure."
The Community and Public Sector Union warned the "time-limited restructure program" was code for massive job cuts and said workers were now waiting to see what services would be cut.
The union called on public service bosses and ministers to rule out job cuts in their directorates.
"Make no mistake, if directors-general rollout voluntary redundancies across directorates in the same way the City and Environment Directorate has, this will have grave consequences for public services our community relies on every single day," the union's regional secretary, Maddy Northam, said
The government's employee expenses are projected to increase by $223.5 million to $3.9 billion in 2026-27, compared to the 2025-26 estimated outcome.
"This growth is largely driven by higher staffing costs associated with government policy decisions and the ongoing impact of enterprise agreements," budget papers read.
Employee expenses are expected to decline slightly to $3.8 billion in 2027-28 and $3.88 billion in 2028-27.
Canberra Health Services is set to gain an additional 460 full-time-equivalent staff, as part of a transition to insource cleaning and food services as well as the implementation of the acute palliative care unit.
Transport Canberra will also gain 87 full-time-equivalent staff, the majority due to new initiatives and increased weekend services.
The City and Environment Directorate announced between 3 and 5 per cent of the workforce, or roughly 130 roles, would be cut to "manage current budget pressures" on May 28.
Treasurer Chris Steel previously said voluntary redundancies would be among the tools agencies could use to meet stricter, front-line-focused budgets.
