Tax Office staff want the agency to lift a cap on time spent working from home after it trialled large-scale remote working.
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But the Australian Taxation Office has said under plans to continue hybrid working in 2022, it will expect full-time staff to work a minimum of three days in the office per week.
A new report from the main public sector union, released on Friday, showed broad support for the ATO's work-from-home pilot, as staff reported benefits for their productivity and work-life balance.
The ATO held a pilot this year allowing presumptive approval for staff to work up to 40 per cent of their week at home, however more than 80 per cent of the survey's respondents found the cap restrictive.
Staff with caring responsibilities were more likely than other workers to say they wanted to increase their time working from home beyond the 40 per cent cap for presumptive approval.
The union said ATO public servants were also frustrated at processes to approve requests above the cap, which they believed did not empower workers and leaders to negotiate suitable arrangements.
Several staff reported the processes were unnecessarily invasive.
The CPSU recommended the ATO lift the cap for presumptive approval for working from home to 60 per cent of the week.
It also urged the Tax Office to let local team leaders negotiate arrangements up to a percentage that worked for both employees and the agency.
"Where a compelling operational reason requires an employee to present at the workplace, the supervisor should explore whether the employee's request can be partially approved," the report said.
It follows a rush to end COVID-related work-from-home arrangements at the Agriculture and Education departments after Public Service Minister Ben Morton said the government had a "strong expectation" that bureaucrats would return to the office.
CPSU deputy national secretary Beth Vincent-Pietsch said the ATO hybrid working trial had been a success, and the agency should be commended on its leadership on work-from-home throughout the pandemic.
"The trial demonstrated the significant benefits to working from home including increased productivity, higher job satisfaction, better work-life balance and added flexibility to help carers juggle responsibilities," she said.
"While the union welcomes the ATO commitment to making hybrid work an ongoing option, CPSU members will be working closely with the ATO to review the model and ensure that it is expanded.
"While the 40 per cent model was a good start, it's clear that this model is too restrictive and did not take into consideration both worker and team needs."
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An ATO spokesperson said the agency ran the work-from-home pilot after receiving positive feedback from staff on the benefits of some remote working.
Under the pilot, staff in locations not affected by COVID outbreaks could work up to 40 per cent of their regular hours from home where it was appropriate for the role, the individual and their broader team.
"Building our positive experience to date the ATO executive has now agreed to maintain a level of hybrid working as an ongoing feature of our workplace in 2022," the ATO spokesperson said.
"Full-time staff will be expected to work a minimum of three days in the office per week. Working from home agreements are decided upon between staff and their managers and must satisfy the business requirements of their position. A pro-rata system is available for part-time staff."
The union's report said about 16,000 ATO staff had worked remotely in the last two years.
More than 80 per cent of the 4400 survey respondents had formal work-from-home arrangements in place, and 18 per cent had ad hoc arrangements, some of which were in place due to state lockdowns.
Staff reported major benefits to working from home, including more than 97 per cent who said it gave them better work-life balance and 80 per cent who said their productivity had increased.
More than 58 per cent of staff said it supported their caring responsibilities.
"Expanding access to working from home should play a key role in supporting strategies to improve the workforce participation of women and carers, their capacity for future leadership, and greater gender equality," the CPSU report said.
The union said the ATO should clarify its expectations for staff on work-life balance, by emphasising regular breaks and working sociable hours.
Survey results showed a majority of staff reported working from home improved their wellbeing.
Less than 9 per cent reported decreased wellbeing due to a lack of social contact with colleagues, however they were able to clearly identify the issue and sought a return to the workplace.
The CPSU said the ATO had asked for the union's feedback on the willingness of staff to adopt hot-desking as a possible cost-saving measure.
"While we have not sought feedback via this survey, members may be more amenable towards unallocated seating should they be able to work a majority of the week from home in the future," the report said.
"Pending a positive outcome on the pilot and commitments from the ATO around workplace flexibility, the CPSU is willing to consult with members on unallocated seating."
The ATO spokesperson said flexible working will be critical to creating an innovative and diverse workforce as practices across the labour market shift.
"We are confident we can commit to hybrid working, but will continue to evaluate our working arrangements over time to ensure they are meeting the needs of both our staff and the expectations of the community and government," the spokesperson said.
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