Victoria Plans Legislation to Guarantee “Two Days of Work From Home”

The Victorian government plans to introduce a new law starting in 2025, requiring that jobs suitable for remote work allow employees to work from home at least two days per week. Premier Jacinta Allan emphasized that this policy not only improves work-life balance but can also enhance productivity and workforce participation, while saving individuals commuting costs—an average of over AUD 5,000 per year. She described the reform as a symbol of both “economic policy” and “social progress.”

However, legal experts noted that the federal Fair Work Act already regulates employment relationships and labor rights, and a state law conflicting with it may be invalid under constitutional precedence, potentially triggering prolonged litigation. Critics questioned whether the measure is merely a political gesture and pointed out that many industries—such as healthcare, retail, and education—cannot operate remotely.

Business leaders, including tourism magnate Graham Turner and developer Tim Gurner, argued that mandatory work-from-home policies could weaken team cohesion and significantly increase operational costs. Neighboring states, such as New South Wales and South Australia, may benefit by attracting businesses dissatisfied with Victoria’s policy. Andrew Kay, CEO of the South Australian Chamber of Commerce, publicly encouraged Victorian businesses to consider relocating, highlighting that high taxes and the new regulation may further reduce investment incentives.

Currently, the Victorian government has launched public consultations, including online surveys and forums, to gather input from industry and unions on which sectors and positions should be covered. The legislative bill is expected to be formally introduced in 2026.