Victoria’s WFH push risks driving the economy off a cliff

Media Release: 16 June 2026

The Victorian Government’s move to legislate a right to work from home risks driving the economy off a cliff at a time business confidence is already at dire levels, the Australian Chamber of Commerce and Industry (ACCI) says.

ACCI Chief Executive Officer Andrew McKellar says the legislation is unnecessary, heavy-handed and raises questions about its legal validity.

“The Victorian Government is recklessly endangering the economy with this legislation,” Mr McKellar said.

“Business confidence is already at rock-bottom, with global instability, high interest rates, and an avalanche of red tape smashing businesses, especially in Victoria.

“By legislating a right to work from home, the Victorian Government is kicking businesses while they are down.

“This will be the final straw for many business owners, who will be driven out of the state due to the horrendous business conditions in Victoria, including already unsustainable workplace and union arrangements.”

Mr McKellar said employers and their workers were already using common-sense approaches to working from home, negotiating flexible arrangements that reflect the needs of individual workplaces.

“The Victorian Government is trying to legislate a solution to a problem that doesn’t exist,” he said.

“This proposal erodes businesses’ ability to make core operational decisions and will act as a major handbrake on the economy, discouraging business owners from investing, expanding and creating jobs in such an environment.”

An ACCI survey of more than 360 business owners, directors and HR managers found 82 per cent of respondents said legislating a right to work from home would have a negative impact on workplace culture. More than three quarters (77 per cent) predicted an increase in feelings of resentment among team members who can’t work from home due to the operational requirements of their role.

Mr McKellar said the legislation also raises serious questions about its validity.

“Victoria transferred its industrial relations powers to the Commonwealth decades ago, meaning the Federal Parliament, not the states, sets the rules in this area,” Mr McKellar said.

“The Victorian Government is trying to set a dangerous precedent, which should be emphatically rejected.”