Debating the future of working from home

The shift toward remote and hybrid work is not merely a pandemic-era feature. It is a persistent structural and behavioural transformation that continues to shape how Victorians live, work and participate in the economy.

The latest research paper from the Parliamentary Library notes that, as of August 2025, 36.2% of Australian workers were working from home at least some of the time.

That’s a significant rise from before the pandemic, when around 25 per cent worked from home occasionally and just 5 per cent did so most of the time.

Since the pandemic Victorians have embraced hybrid work in particular. ABS data included in the report shows that the most common pattern is one to two days of WFH per week, with an estimated 429,400 Victorian employees adopting this lifestyle.

Meanwhile, the most common reason for WFH, cited by an estimated 293,600 employees, is the ability for an employee ‘to work more flexibly’ or choose their own hours.

However, access to WFH is uneven. By one measure, the report reveals that 39.5% of workers with paid leave entitlements usually work from home, compared with just 10.7% of those without paid leave entitlements.

Ensuring that WFH is accessible to those who can ‘reasonably’ do so is central to the government’s argument for legislating a right to WFH.

“ For many women, carers and people with disability, WFH has been transformative. ”

The consultation process on the proposal highlighted the depth of public interest and the numbers of people who indeed believe they can reasonably work from home. A record‑breaking 36,770 Victorians responded, with 82% reporting they already have some WFH access. Yet nearly 6% said they had been refused WFH despite requesting it — 97% of whom believed the refusal was unreasonable.

As the report summarises, WFH was described as ‘extremely important’ by 74 per cent of respondents and a major factor in job choice and retention.

This availability and appeal of WFH as a flexible working option to employees also has broader social and economic implications. For many women, carers and people with disability, WFH has been transformative.

According to data collected as part of the Household, Income and Labour Dynamics in Australia (HILDA) Survey, between 2019 and 2022 there was an 8.5% rise in workforce participation in WFH-suitable roles among women with young children, while a 6% rise was recorded over the same period for people with disability. Many respondents with disability reported that remote work helped them feel less stressed, more productive and better able to manage their health needs.

At the same time, the report acknowledges concerns from business groups about productivity, CBD vibrancy, and regulatory burden. Some industry bodies, such as the Australian Chamber of Commerce, labelled the proposal ‘overreach’, warning of economic impacts and compliance challenges.

For now, WFH is here to stay, with hybrid working policies a common feature of workplaces across Victoria and more broadly, but how it is implemented is in question. As the report notes, the current body of research observes a range of factors that require balancing. While studies may indicate that two days at home ‘does not damage performance’ and may improve retention, some stakeholders may question a perceived loss of knowledge-sharing and the burden of regulation.

It remains to be seen how legislating a right to work from home would affect the state’s labour market, yet debate around how employers and employees negotiate flexible work, including through WFH, is set remain a feature of workplace conversations.