(Bloomberg) — The Australian state of Victoria has postponed world-leading working from home laws less than a month before they were due to start, following fierce opposition from business groups and calls for more consultation.
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The proposed laws would give eligible workers the right to work from home two days a week and were due to take effect Sept. 1. New Premier Ben Carroll has delayed their introduction until July 2027, as his Labor government prepares for a November election in which it faces its toughest challenge in years from conservative and right-wing rivals.
“I want to be very clear – I support work from home, I support flexible work. It is good for working families,” Carroll told reporters in Melbourne on Tuesday. “Equally though, we need to make sure that our economy, everyone, knows it’s a partnership between working families and the business community and the government.”
Carroll, who replaced Jacinta Allan as the state’s leader last month, said he still intended to pass the legislation before the election while continuing consultations with the business community.
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The Victorian Chamber of Commerce and Industry pushed back against the original proposal, warning the laws would increase costs, damage hiring, and push jobs and investment interstate. The Council of Small Business Organisations Australia said the proposed changes would have burdened small businesses with more compliance.
Melbourne has struggled to lure workers back to the office since enduring one of the world’s longest lockdowns during the Covid-19 pandemic. The city, home to miners BHP Group and Rio Tinto Group and lenders National Australia Bank Ltd. and ANZ Group Holdings Ltd., has the highest office vacancy rate of any Australian capital.
Victoria also has the largest debt burden of any Australian state, according to S&P Global Ratings, after years of heavy spending on major infrastructure projects.
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