The ACT government has proposed a new deal for public sector workers, offering one-off cost-of-living payments if inflation exceeds certain thresholds.Under the agreement, workers would receive $600 if annual inflation reaches 3.5% and $1000 if it hits 4% over the next three years.However, the government's own forecasts suggest inflation will remain below these thresholds, with the 2026-27 budget projecting 2.5% inflation.The deal includes maintaining 3% annual pay rises, additional parental leave entitlements, and uncapped family violence leave.Unions, however, are seeking higher pay increases and have threatened industrial action if negotiations stall.The proposal will be put to a ballot, with voting open from August 26 to September 8.

The government claims the package balances fiscal constraints with fair compensation, aiming to retain the ACT as one of Australia's highest-paid public sectors.