Stats suggest a $9 billion surge in the APS annual wage bill.

The Australian Bureau of Statistics (ABS) has overhauled its wage data collection process by directly tapping into agency payroll software filings, a shift from the previous reliance on agency-provided figures.

The change involves utilising Single Touch Payroll (STP) data from the Australian Taxation Office to compile labour statistics. 

The shift allows the government and Treasury to almost instantaneously track their wage bill, fostering real-time awareness.

The initial release of the experimental STP-powered data, named the Public Sector Employment and Earnings (PSEE), reveals a substantial jump in the Commonwealth's wages and salaries book, reaching $33.484 billion for the 2021-22 financial year. 

In comparison, the preceding Survey of Employment and Earnings (SEE) data reported $24.489 billion for the same period.

Despite the experimental nature of the current figures, ABS emphasises that refinement processes are underway. 

The first official PSEE release is scheduled for 2023, encompassing data from both 2021-22 and 2022-23. 

The newly sourced data from Tax implies a more accurate depiction of wage statistics, with a $9 billion yearly increase anticipated to persist.

The impending release of PSEE data in November is likely to influence budget assumptions and decisions, as highlighted by the Department of Finance's revised estimates for the 2023-24 financial year, standing at $24.254 billion compared to the prior year's $23.572 billion.

This surge in wages has significant implications, especially as negotiations unfold regarding a 20 per cent pay rise demand from the Community and Public Sector Union (CPSU).