The Coalition has retracted its previous policy to restrict work-from-home arrangements and terminate 41,000 government employees, derailing plans to significantly reform the public service. Opposition leader Peter Dutton has acknowledged his error and is now relying on natural attrition to shrink the public service’s size, rather than forced redundancies. Instead of axing 41,000 workers, the Coalition will now decrease the public service through attrition over five years. Dutton clarified that there will be no mandated minimum number of office days, and current flexible working arrangements will be upheld in future workplace agreements. Labor’s Anthony Albanese dismissed the Coalition’s reversal, arguing that Dutton would still undo flexible work arrangements and cut essential services if given the chance. The Coalition had previously stated that reducing the public service would generate $24 billion in savings over four years, some of which was to be allocated to match the government’s Medicare policy. However, there’s uncertainty about how much the Coalition would save by avoiding redundancies.

Source: https://www.theguardian.com/australia-news/2025/apr/07/peter-dutton-coalition-backflip-wfh-work-from-home-public-service-cuts-policy