New premier Ben Carroll backs away from tipped work-from-home changes, giving business only a minor set-up cost concession
New Victorian premier Ben Carroll has confirmed the state's contentious work-from-home (WFH) laws will proceed largely unchanged, resisting weeks of pressure from business groups to unwind the reforms following his rise to the top job. The one concession employers have secured is that they will no longer be required to cover employees' remote set-up costs.
The outcome will surprise many in the HR sector. As HRD Australia reported when Carroll first flagged a rewrite of the bill, business groups had been pushing for exemptions, including the removal of employer set-up cost obligations and changes to the "stacking" clause that lets employees with existing flexible arrangements claim extra WFH days. Carroll had told business leaders he heard their concerns; many assumed that meant substantive change was coming.
Instead, Carroll told The Australian Financial Review he remains committed to "sticking to the promise" the government made on legislating a right to work from home at least two days a week, while remaining open to amendments as the bill moves through the upper house.
What's changing – and what isn't
The substance of the legislation is untouched. Eligible Victorian employees – including casual and part-time workers on a pro rata basis – will retain the right to request two remote working days a week where their role can "reasonably" be performed from home, under amendments to the Equal Opportunity Act 2010 (Vic) that HRD Australia detailed when the bill was introduced. Employers must respond to a WFH request within 21 days and propose alternatives if a request is refused.
The only confirmed change is to employer cost obligations: businesses will no longer have to fund the "essential equipment and secure access" previously required under the bill. Carroll has left the door open to further amendments in the upper house, but has not committed to any.
Business reaction has been swift and unimpressed. Australian Industry Group Victorian head Tim Piper argued the government had a "perfect way" to support business by scrapping the laws altogether, warning they would hurt the state's economy.
What this means for HR teams
Gazelle Kalk, associate director – content and training at workplace consultancy Peninsula Australia, told HRD Australia the lack of a small-business carve-out is the biggest unresolved question for employers ahead of the law's 1 September 2026 start date.
"If you have a blanket right to work from home two days a week ... it just creates this disproportionate burden on a small business," Kalk said, pointing to employers with a mix of roles – some that can be done remotely, others requiring in-person client contact or specific equipment.
Kalk said she expects Carroll to eventually carve out an exemption for businesses with fewer than 15 employees, given the sympathy shown to small business during recent consultation, but cautioned nothing is confirmed.
In the meantime, Kalk urged employers – regardless of size – to move now rather than wait for the bill's final form. She recommends businesses map which roles can reasonably be performed from home, document any decision to refuse a WFH request to maintain procedural fairness, and train managers to apply the "reasonableness" test consistently across staff. Reviewing existing flexible work policies, including expectations around performance and cybersecurity for remote staff, should also be a priority, she said.
Kalk added that inconsistent application of the test carries its own risk. "You're not saying, yep, [one employee] can work from home, but ... [another] can't. Why? What is kind of the criteria that you are applying?" she said, warning that unclear decision-making can erode team morale as much as the law itself.
The bigger picture
Carroll's limited concession lands as HRD Australia's coverage of the bill's passage through parliament has tracked mounting employer unease, with legal analysts separately warning of a rise in workplace disputes once the laws take effect. With just over three weeks until the 1 September start date, and Victoria's state election looming in November, employers have a narrow window to prepare – and little certainty about whether further changes are still to come.
