Introduction: A New Era for Australian Workplaces
Victoria is poised to become the first Australian state to legislate the right to work from home (WFH), setting a precedent that could influence national policy and reshape employment models across the country. Premier Jacinta Allan’s proposed legislation would guarantee employees the right to work remotely at least two days per week, provided their role can be reasonably performed from home [1].
This move reflects a broader shift in how Australians, particularly Victorian workers, view work, flexibility, and productivity. But it also raises important questions about how businesses will adapt, including a growing trend toward outsourcing and the evolving stance of the federal government.
What the Victorian Legislation Proposes
The proposed law, expected to be introduced in 2026, would apply to both public and private sector employees. It aims to formalise hybrid work arrangements that became widespread during the COVID-19 pandemic.
Key features include:
- A legal right to work from home for roles that can be reasonably performed remotely.
- Applicability across industries and business sizes (pending consultation).
- A focus on reducing commuting time and improving work life balance.
Only employees whose roles are eligible for remote work will be able to exercise this right, based on specific eligibility criteria.
Premier Allan emphasised that the legislation is not up for debate in principle—only the implementation details are open for consultation [[1]](LINK 1).
Why It Matters: Economic and Social Impacts
The Victorian government argues that working from home is not just a lifestyle perk—it’s an economic policy. According to state estimates:
- Australians save over $5,000 annually by working from home.
- Commuting time is reduced by more than three hours per week.
- Productivity and workforce participation increase when flexibility is supported [1].
Many workers now spend several days each month working from home, reflecting a shift in monthly work patterns.
Remote work reduces overall energy consumption, as less energy is used for commuting and office operations. Working from home can also lower household electricity costs, contributing to both personal savings and environmental benefits.
These benefits are particularly relevant in a high-cost-of-living environment, where time and financial savings can significantly improve quality of life and job satisfaction.
What is not accounted for is the impacts on business output, while the above a clear benefits none seem to apply to an increase in production in economic terms.
Federal Government’s Position: A Divided Landscape
While Victoria is leading the charge, the federal government’s position on working form home remains more nuanced. During the 2025 election campaign, the federal Opposition proposed mandating a return to the office for thousands of public servants. The backlash was swift, prompting a reversal of the policy within a week [2].
Prime Minister Anthony Albanese has framed working from home as a cost-of-living issue, recognising its role in reducing household expenses and improving work-life balance [2]. While no federal legislation has been proposed, the political climate suggests growing support for flexible work arrangements, especially among urban and younger voters.
Victoria’s approach to remote work aligns with broader European trends, as both the UK and Ireland reported high rates of remote work during the COVID-19 pandemic, highlighting their significant roles in shaping remote working patterns across the region.
Any future federal legislation would likely undergo regular review to ensure it meets the needs of both employers and employees.
Challenges for Employers with Onshore Remote Work
While many businesses support flexible work, several have voiced concerns about the practical challenges of managing onshore staff remotely.
Effective remote work arrangements require clear communication, appropriate technology, and well-defined policies. Employers must also consider the type of remote work arrangement, such as fully remote, hybrid, or flexible, that best suits their business needs.
Establishing the right systems, processes and SOPs without particular guidance is likely to cause challenges as not all businesses impacted will have the internal capability established to roll out these changes as rapidly as they might like.
Additionally, organisations often sort work arrangements based on the number of days worked remotely versus onsite.
1. Productivity and Accountability
A Fair Work Commission study found that 35% of employers declined working from home requests due to concerns about productivity [3].
Some employers report difficulty in measuring outcomes and maintaining consistent standards across remote teams. Additionally, some employers have observed a decline in employee engagement or feedback quality over time with extended remote work.
To address these challenges, organizations must choose appropriate tools and metrics to effectively monitor remote productivity.
2. Collaboration and Innovation
Remote work can hinder spontaneous collaboration and innovation. Employers argue that creative ideas often emerge from informal, in-person interactions that are difficult to replicate online [4]
Regular video or phone calls are essential for facilitating real-time collaboration and maintaining strong interpersonal relationships in remote teams.
3. Training and Mentorship
Remote environments pose challenges for onboarding and mentoring new staff. Junior employees often bear the brunt of in-office responsibilities, leading to workload imbalances and missed development opportunities [4].
The right systems and tools are required to deliver remote training programs effectively. Employees are often required to log their progress and completed modules to ensure accountability and effective tracking of their development.
4. Workplace Culture and Engagement
Maintaining a cohesive workplace culture is harder when teams are dispersed. Fostering a sense of human connection is crucial for building trust and belonging among remote staff. Employers report that remote staff may feel disconnected, leading to lower engagement and higher turnover, therefore it is critical to have the right support and structure in place to ensure a healthy culture [4].
5. Health and Safety Compliance
Employers are responsible for ensuring remote workspaces meet health and safety standards. This includes ergonomic setups, mental health support, and clear policies—adding complexity to HR and compliance operations [4]. Employers must also ensure that remote workers have access to suitable home office facilities that meet ergonomic and safety standards.
Supporting Remote Workers: Tools, Wellbeing, and Inclusion
As working from home becomes a permanent fixture for many Victorian workers, the focus is shifting from simply enabling remote work to actively supporting remote workers in achieving better work life balance, employee needs, and inclusion.
Premier Jacinta Allan’s commitment to enshrining the right to work from home highlights the importance of not just where people work, but how they are supported in their roles, no matter their location.
For employers, this means adopting a range of tools and strategies designed to help employees stay connected, engaged, and productive. Video conferencing platforms, for example, have become essential for maintaining cohesion and facilitating real-time collaboration, even when employees are spread across different homes or regions.
Project management software helps employers track progress, assign tasks, and manage workloads efficiently, ensuring that everyone remains on the same page.
Beyond technology, supporting remote workers also requires a focus on wellbeing and inclusion. Regular check-ins, virtual meetings, and open channels for feedback help employees feel recognised and valued.
Reducing the risk of isolation that can sometimes come with working remotely. Employers can further promote work life balance by encouraging flexible hours, providing access to mental health resources, and recognising achievements through virtual shout-outs or rewards.
Professional development remains a key priority in the remote world. By offering online training, support programs, and opportunities for skill-building, employers can ensure that remote workers continue to grow in their roles and feel invested in the organisation’s future.
Providing the right equipment such as laptops, secure internet access, and ergonomic home office setups also demonstrates a commitment to employee wellbeing and productivity.
Getting the right mix of development programs and understanding the technology needs of each role requires appropriate planning and internal capability. If this is lacking, reaching out to a third party to seek assistance and support might be the appropriate course of action.
Inclusion is another critical aspect. Employers should strive to create a remote work environment where all employees, regardless of their background or location, feel they have equal access to opportunities, information, and support. This can be achieved through transparent communication, inclusive virtual events, and clear policies that set expectations for remote work.
Ultimately, supporting remote workers is about more than just providing the right software or tools, it’s about fostering a culture of trust, flexibility, and recognition.
When employees feel empowered to manage their time, contribute to their teams, and maintain a healthy work life balance, the result is a more engaged, productive, and satisfied workforce.
The focus then becomes how the management of businesses undertakes the task of maintenance or systems, development of staff and establish the appropriate frameworks with ensure that working from home arrangements, ith on a contract or full-time basis meet what is being laid out by Premier Jacinta Allan.
What a standard work week looks like is changing, with the state of Victoria dictating the contract terms and the way people work.
The Outsourcing Shift: A Strategic Response to Working From Home
As remote work becomes a legal right in Victoria, and potentially beyond, businesses are rethinking how they structure their teams. Based on these changes, a number of businesses have taken the opportunity to review their arrangements and increase the number of jobs done through their outsourced arrangements.
Why Outsourcing Is Gaining Ground:
- Cost Efficiency
Outsourcing reduces overhead costs associated with office space, equipment (including laptops and internet), and full-time salaries. Outsourcing costs related to overheads are generally fixed and don’t vary for businesses based on state, what the working week looks like or the location of any office or delivery of services. - Access to Global Talent
With local labour shortages and rising wages, businesses are turning to offshore professionals, particularly in countries like the Philippines, known for high English proficiency and cultural alignment [5]. It is important to understand the objectives for pursuing an outsourcing strategy, for example, the management structure, facilities and contract terms of each provider will differ, so it is important to have the right strategy in place to avoid any decline in service delivery. - Scalability and Flexibility
Outsourcing allows companies to scale operations quickly and adapt to changing market conditions without the burden of long-term employment contracts [5]. When it’s time to choose the provider, make sure you sort through the noise, as the objective is to make management easier to get the right result. - Focus on Core Business
Delegating non-core tasks enables internal teams to focus on strategy, innovation, and customer experience. As an example, an IT managed service provider may elect to outsource Level 1 support on a full-time basis, a financial planning firm may outsource paraplanning, a fintech may outsource development, so core staff can focus on driving additional revenue through enhancements to their current product offer.
As working from home becomes normalised, the distinction between local and remote workers and offshore teams becomes less significant. If a role can be performed remotely, it can potentially be outsourced, raising both opportunities and challenges.
What This Means for Other States
Victoria’s move could serve as a template for other states and territories. As businesses and workers across Australia observe the outcomes, pressure may mount on other governments to follow suit, especially if the legislation proves successful in boosting productivity and workforce satisfaction.
The UK and Ireland are international examples of where the future of work will be heading on a global scale. In fact, in the recent Global Survey of Working Arrangements [6], it was found that staff in the UK were among those with the highest level of work from home flexibility in the world.
Conclusion: A National Conversation Begins
Victoria’s proposed legislation is more than a state policy; it’s a signal of where the future of work is heading in Australia. As flexibility becomes a legal right rather than a workplace perk, businesses will need to adapt quickly, whether through hybrid models, outsourcing, or new workforce strategies.
For employers, the message is clear: the expectations of the modern workforce have changed. For policymakers, Victoria’s step may be just the beginning of a broader national transformation.
References:
[1] Working from Home, Not a Problem | The Australia Institute’s Centre for …
[2] Remote Work & Working From Home Statistics Australia (2025)
[3] Research report – Working from home surveys
[4] Work-From-Home Policies in Australia: Guidelines for Employers
[5] Working from home still point of disagreement between staff and CEOs …
[6] https://wfhresearch.com/gswadata/
