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Australia's new high commissioner to the UK, Stephen Smith, says becoming a republic is inevitable" even if Australians are proud to have the British monarch as their head of state.

In his first interview since taking up the post, Smith told the Times newspaper that most British people would be indifferent" to Australia getting rid of the monarchy and it would not damage the countries' relationship.

There is a lot of affection and respect for the monarchy in Australia.

That affection and respect hasn't gone away because of Australia contemplating from time to time what it should do about its constitutional arrangements.

My personal view is it's inevitable. But how that's progressed is entirely a matter for the Australian government of the day.

Our public-sector workers do a great job serving their fellow Victorians and we're proud to support them. In addition to wage increases, workers will be able to obtain a sign-on bonus while productivity improvements will bring the potential for further advancement of conditions.

The policy provides fair outcomes for employees while being responsible as we deal with the types of budget challenges faced by families, businesses and governments across the world.