There has been substantial change in industrial relations systems at federal and state level in Australia and this has had dramatic implications for public sector wage‐fixing arrangements. This article outlines the main features of current systems for wage determination in the Australian public service and the public services of each state. While a complex and diverse set of regulations and wage‐fixing mechanisms are in place in these seven jurisdictions, two models are emerging: one a collectivist two‐tiered model and the other a de‐collectivist model which includes provision for individual agreements. The authors discuss the implications of the current wage‐fixing systems and the two emerging models.