Victoria’s peak business organisations are calling on the State Government to substantially amend its proposed work-from-home legislation, warning the reforms could increase business costs, discourage employment and drive investment to other states.
The Victorian Chamber of Commerce and Industry (VCCI) and the Victorian Congress of Employer Associations (VCEA) have jointly argued that while workplace flexibility is already widely available, the Equal Opportunity Amendment (Work from Home) Bill 2026 would impose unnecessary complexity on employers without addressing a genuine gap in workplace practices.
According to new research released by the VCCI, 77 per cent of Victorian businesses already allow employees to work from home. However, 80 per cent believe the proposed legislation would negatively affect their operations, while 92 per cent expect it to create additional costs through legal advice, policy development, technology, insurance, cyber security and compliance requirements.
The survey also found business confidence has deteriorated since the legislation was first proposed, with 72 per cent of respondents now saying Victoria is harder to operate in than other states. Nearly half indicated they would be more likely to invest outside Victoria, while 42 per cent said they would be more inclined to hire interstate rather than employ Victorians.
The legislation particularly presents difficulties where it is impossible for some employees to work from home – such as those who work on the tools in a workshop compared to administration staff – creating a divide between colleagues within the same business.
The VCEA has proposed a 10-point plan designed to make the legislation more practical for employers while retaining workplace flexibility. Among the recommendations are limiting the legislated work-from-home entitlement to two days a week, delaying commencement for businesses with fewer than 200 employees and broadening the grounds on which employers can refuse or review remote working arrangements.
The employer group is also seeking clearer guidance on employer cost responsibilities, stronger occupational health and safety provisions, faster dismissal of unmeritorious complaints and greater certainty around how the legislation would operate in practice. It has urged the Government to delay implementation until at least 1 March 2027 to give businesses sufficient time to prepare.
VCCI chief executive officer Sally Curtain said businesses were not opposed to flexible work but to legislation that increased costs and uncertainty.
“These results should be a wake-up call for the Government,” Curtain said.
“Businesses are not rejecting flexibility… They are rejecting legislation that adds cost, complexity and uncertainty without solving a genuine problem.”
Both organisations say the Government still has an opportunity to amend the Bill so it supports workplace flexibility while protecting productivity, investment, jobs and Victoria’s business competitiveness.