March 5, 2025

Back to the Future?

An all-time favourite movie for many is Back to the Future. Ever since the trilogy wrapped up, some have clamoured for a fourth instalment or even a remake. But let’s face it, those ideas primarily appeal to producers dreaming of box office gold. Robert Zemeckis and Bob Gale, the masterminds behind the films, have consistently shut down any talk of sequels or reboots. Zemeckis himself has said the story has been told, and a good story doesn’t need a reboot. In other words, no amount of wishful thinking is bringing Marty McFly back to the big screen.

If only we could solve office vacancies with the same kind of wishful thinking.

Yet some property industry leaders seem convinced that the answer is simple: drag the Australian Public Service (APS) back to the office full-time, scrap hybrid and regional workforce models, and pretend the last few years never happened. Never mind that these models have expanded significantly post-pandemic or that workforce expectations have permanently shifted – just get everyone back to their desks, ad the problem is solved.

But here’s the thing: this isn’t just about Canberra, where vacancy rates have actually decreased since 2019, ad it’s certainly not just about property. It’s about the future of government, how they attract and retain talent, and whether they are making smart, data-driven decisions – or just clinging to an outdated playbook.

While much of this debate focuses on Canberra as the APS home, consideration should extend far beyond Canberra, it’s about rethinking a nationwide shift, and the topic should be given a far more strategic and forward-thinking lens.

For those who are truly committed to redefining government efficiency, enhancing talent retention, and adapting to the evolving nature of work, it’s time to set aside outdated notions and build a model together (Government, Property Advisors and Landlords) that propels us into the future and enhances the way that property services the APS.

The missing considerations

The question isn’t whether the APS should return to traditional office structures, it is how we collectively build a model that ensures government workplaces remain fit for purpose.

Notably, much of the push for increased attendance is being driven by commercial landlords and their representatives. Since the pandemic, it has become clear that office demand is changing, and forward thinking landlords are already responding by reimaging office spaces to align with the needs of a modern, flexible workforce. While higher office occupancy rates undoubtedly benefit commercial property interests, these arguments often lack nuance, oversimplifying a more complex topic of discussion, and in many cases ignoring key economic and operational realities. There are several critical factors that often go unmentioned – or perhaps deliberately dismissed – in this debate.

Organisational priorities come first

The APS has a structured approach to workforce planning, and a dedicated Workforce Strategy Taskforce, under the Australian Public Service Commission (APSC), that is responsible for developing and implementing an APS workforce strategy that positions the APS as an employer of choice 1 .

Under this framework, agencies determine workforce arrangements based on its strategic priorities, while ensuring that service delivery, operational efficiency, and workforce engagement remain at the forefront. Workforce arrangements – whether it’s hybrid, regional, in-office or remote, are not based solely on individual preferences but are informed by rigorous analysis and approval processes at senior levels.

These decisions consider a wide-range of benefits to the agency which include how the arrangement will support the operational needs of the agency, including retaining critical skills. Post-pandemic, these processes have become more sophisticated, making the APS an increasingly attractive employer for professionals seeking flexibility and regional opportunities.

The APS exists to serve the public

The APS is responsible for delivering services to the public, using resources in the most effective, efficient, and economically rational way. The primary cost for most government departments is personnel, meaning the focus should be on fostering an engaged, supported, and productive workforce – not on artificially inflating demand for commercial office space – which does not demonstrate efficient use of taxpayer dollars.

The Commonwealth Property Management Framework reinforces this, requiring agencies to minimise the office footprint and utilise space more efficiently, supported by an occupational density target of 14m 2 pe occupied work-point. It wasn’t long ago that commentators were actively calling for the government to reduce and better utilise space and work arrangements – which they have done. According to the most recent Australian Government Office Occupancy Report (2023), there was a 4.3% increase in agencies meeting this target, indicating that the APS is actively reducing unnecessary office space – which is a positive sign.

Expanding beyond Canberra benefits the Nation

While Canberra will always be the APS home, expanding its presence across Australia is a net positive. The APS Location Framework 2 recognises that employing staff in varied locations and allowing flexibility helps address a critical skills shortage across the APS – this is a growing concern, with 88% of APS agencies reporting critical skills gaps in 2024. Flexibility increases the APS’s accessibility, broadens its talent pool, enhances stakeholder engagement, and contributes to regional economies, many of which are experiencing growth far exceeding that of traditional CBDs. This decentralisation also strengthens intergovernmental collaboration, improving service delivery at all levels.

  1. APS Workforce Strategy 2025 | Australian Public Service Commission
  2. APS Location Framework
  3. State of the Service Report 2023-24 | Australian Public Service Commission

Further, investment in regional infrastructure is at an all-time high, and workforce mobility trends indicate a strong preference for flexibility, livability, and work-life balance. Many professionals now prioritise these factors over traditional career pathways – and the APS – like any forward-thinking employer, acknowledges and adapts to these shifts to remain competitive in attracting and retaining top talent.

Workforce preferences have changed – and that’s okay!

The employment landscape has evolved and forcing a return to a pre-pandemic workforce model ignores the realities of modern employment preferences and limits the ability for the APS to attract and retain highly skilled professionals.

In 2024, 67% of APS staff cited access to flexible work arrangements as a key reason for considering the APS as an employer of choice. Instead of asking why the APS isn’t mandating a return to work, perhaps the real question should be: What does Canberra need to do to remain competitive and attractive?

The answer isn’t pushing the APS employees to be back in the office but to reframe thinking and office designs to embrace a new way of working.

Employee choice matters

Currently 47% of all APS employees work remotely at least some of the time, but only 6% of staff are fully remote (APSC State of Service Report, 2023-24). As previously indicated, this demonstrates that working remotely is considered in accordance with an overarching lens on all aspects of service delivery and while the APS does not work under a fully remote model, nor does it intend to – it reflects the shift in workplace flexibility.

It’s 2025 and employees have more say than ever in where and how they work. If organisations return to a ‘traditional’ workplace model that mandates rigid location policies, it risks losing high-value staff and driving new, emerging and high-quality talent away.

This is something many have experienced which has ultimately drove experienced professionals with a wealth of institutional knowledge to leave a role. Organisations that fail to adapt to evolving workforce expectations will ultimately struggle to retain skilled and valuable talent, in an increasingly competitive job market – which will only result in a loss of taxpayer’s money trying to recruit and re-train.

A more sustainable, efficient APS is the future

More than a decade ago, the APS embarked on a major office rationalisation program to reduce surplus office space, improve office utilisation, increase density rates, and upgrade building quality.

Now, with the drive toward Net Zero, a smaller office footprint and a distributed workforce contribute directly to lower emissions, reduced congestion, and improved sustainability. The APS is pioneering a modern, adaptable workforce – something that should be embraced, not resisted.

As property advisors, our role is to support the APS in delivering its objectives – not to dictate where and how it should operate. Our role should include helping with the evolution of a modern workplace that supports the critical factors outlined above.

Of course, robust discussions and differing perspectives are essential to our industry. However, to suggest that the APS are making staffing and operational decisions lightly – without careful analysis – is not only inaccurate but also a short-sighted argument.

Looking back is the Back to the Future sequel no one asked for or needs. Bob Gale has a standard response when asked about this possibility.

The world of work has changed. The answers to the modern workforce aren’t going to be found looking backwards to what was, it will be found working with organisations in order to understand their specific requirements and helping them get there.