The Victorian Premier has proposed to enshrine WFH rights into law in her state. We believe this is completely unnecessary and removes control of the business away from the employer. Our CEO, Andrew Kay had this to say in his column in The Advertiser this week, calling on our Premier to confirm that SA would not follow suit – which he did on Adelaide radio.
Andrew Kay’s column in The Advertiser — Tuesday 5th August
It’s not a revelation that the Victorian economy is in a world of pain, with spiralling debt levels on track to reach 25% of the state’s economy by 28/29, against a backdrop of weak GDP growth and low productivity.
Their government’s response has been to tax its way out of trouble with payroll tax, land tax, property transfer duties and special levies now constituting around 40% of state tax revenue and growing at close to 7.6% per annum.
It’s created an environment where business insolvencies are growing faster than the rest of the country and what ANZ CEO Shayne Elliot has called “one of the toughest” places to do business.
Conditions have led to senior Australian executives publicly calling out Victoria’s fiscal policies as smashing business confidence and driving capital investment out of the state.
At the South Australian Business Chamber, we have seen this firsthand with companies from across the border requesting meetings to gain insight into the business networks and supply chains in SA.
It is one of the reasons why we should consider the Victorian Premier Jacinta Allan’s announcement that her government will enshrine the right to work from home in law with a mix of anticipation and trepidation.
Under the proposal — which will apply to both the public and private sectors — legislation would guarantee workers who are “reasonably able” to work from home the right to do so at least two days a week.
I use the word anticipation, in the sense of what this might mean for further investment into South Australia. Victorian businesses already burdened by an excessive tax régime and low productivity may struggle with the idea that legislating working from home is a priority for their ailing economy and look to grow elsewhere.
This opportunity for capital flow into our state is tempered by the concern that Ms Allan’s Labor counterparts around the country — including our Premier – might follow suit.
Premier Malinauskas must send a clear message to businesses in South Australia — and Victoria — that he will not entertain such an idea.
This is not a debate about the merits of working from home. The flexibility it offers can improve workforce participation and managed well, bring benefits for both employees and business.
In 2025 working from home is an accepted part of negotiations between workers and their employer and that’s exactly how it should stay, not as a legal requirement.
The number of workers who can work from home is a relatively small proportion of the total workforce and this law has the potential to create inequality between those who can and those who are left behind.
More importantly this announcement has come at a time when the Federal Government has declared a focus on driving productivity in its second term with its Economic Reform Roundtable to be convened later this month.
Removing the scope for an employer to negotiate appropriate employment agreements with their staff to deliver results is a productivity killer.
For Victoria’s sake, let’s hope this plan does not make it to the finish line, but until then we need our Premier to confirm this will not be the South Australian way and that our state remains open for business.
