Victoria's Premier Ben Carroll announced Tuesday that controversial work-from-home legislation won't take effect until July 2027, delaying the mandate by roughly 12 months after intense lobbying from the state's business community. The reversal marks a significant retreat on a policy that business leaders warned would impose substantial costs on employers already grappling with the nation's highest unemployment rate.
Carroll confirmed he'd spoken directly with Victorian Chamber of Commerce and Industry chief executive Sally Curtain and Australian Industry Group head Tim Piper to inform them the laws wouldn't proceed on September 1 as planned. "It will proceed on the 1st of July, 2027," he said, while insisting the legislation would still pass before the November state election.
Business Community Claims Victory
The Victorian Chamber of Commerce and Industry welcomed the delay but didn't back down from its demand that the legislation be scrapped entirely. Curtain said the bill posed a "profound risk" to the state's economy. "The Victorian Chamber maintains that the Bill must be scrapped, as it is completely unnecessary, costly and burdensome for Victorian businesses," she said.
Business Council of Australia chief executive Bran Black acknowledged the government was taking "the first steps" in listening to business concerns, but he too argued for complete abandonment of the policy. "Already, Victoria has the highest unemployment rate in the country and the Victorian economy cannot afford another policy that drives investment and jobs away, which only hurts Victorians through lower living standards," Black said.
Business leaders have raised specific concerns about lack of flexibility in the legislation and the economic burden of home office costs on smaller businesses. The premier's decision to delay represents a marked shift from the government's previous timeline, which would've imposed sweeping changes across the entire economy within weeks.
Premier Promises Partnership Approach
Carroll framed the delay as an opportunity for consultation and amendments, saying he'd listen to "common-sense" proposals while maintaining his support for the underlying policy. "It is good for working families," he said. "Equally though, we need to make sure that our economy — everyone knows its a partnership between working families and the business community and the government."
In an exclusive ABC interview last week, Carroll identified resetting his relationship with Victoria's businesses as a top priority. "I'll roll the red carpet out for them. I want to grow our economy. We've got the best workforce in the nation, the most skilled. This is my focus," he said. "I think it's about a rhetorical reset, making sure that business knows I'm in their corner."
Curtain said the premier had indicated willingness to meet directly. "We hope to persuade him to abandon this destructive course," she said.
Opposition Supports Delay, Greens Condemn It
Shadow Attorney-General James Newbury said the opposition had announced proposed amendments to the legislation and supported the delay. "Rolling out a change of this nature within three weeks across an entire economy is difficult," he said. "I think it's only reasonable that there's understandable delay."
The opposition is also seeking amendments to remove provisions allowing unions to enter the private property of people working from home.
Greens leader Ellen Sandell slammed the government's decision, accusing Carroll of prioritizing business interests over workers. "Workers were weeks away from finally getting these hard-earned rights. Then the corporate lobby came knocking and the new Labor premier rolled over," Sandell said. "Women, carers and disabled people might now be forced back into commuting full-time for at least another 10 months because the new premier has decided keeping big business happy matters more than making working people's lives easier."
Other Law Reforms Announced
At Tuesday's press conference, Carroll also flagged law reforms aimed at protecting victim-survivors of domestic violence. "We spend too much time talking about perpetrators, we need to spend more time talking about the victims," Carroll said.
The government will move forward with legislation making coercive control a standalone criminal offence. Victoria will also scrap the use of "good character" references in the sentencing process.
The Carroll government announced it would work to limit the use of suppression orders, preventing convicted rapists from using court orders to protect their identities. The proposal follows cases involving convicted rapists Ralph Carr and Tom Silvagni, who used suppression orders to keep their identities hidden from the public. The government stopped short of guaranteeing the suppression order changes, saying the reforms would be contingent on Labor winning a fourth term at the state election in November.
Why This Matters:
The delay represents a significant acknowledgment that government mandates can't ignore economic reality, particularly when Victoria already carries the nation's highest unemployment rate. Business leaders' warnings about driving investment and jobs away from the state aren't abstract concerns — they reflect the competitive pressures that determine where companies locate and expand. The premier's willingness to extend consultation suggests recognition that imposing sweeping workplace changes within weeks could've triggered unintended consequences for the very workers the policy aims to help. Whether the additional time produces meaningful amendments that address business concerns about flexibility and compliance costs will determine if this legislation becomes a model for balancing worker preferences with economic competitiveness, or another regulatory burden that disadvantages Victorian employers. The contrast between the government's retreat on economic policy and its advancement of victim protection reforms also illustrates the political calculation that law-and-order measures face less resistance than workplace mandates.