VICTORIA must scrap its contentious Work From Home (WFH) bill to create jobs, lift living standards, and turn around the state’s flagging economy.

Australia’s leading employer and business groups have said the focus by the Victorian government should be on the economy.

In a joint statement, 12 groups said they are urging the Victorian government “to listen to employers, scrap the WFH bill, and work in partnership with business on the reforms needed to turn the Victorian economy around”.

“Victoria has the highest unemployment rate in the nation and at a time when households and businesses are under pressure, Victoria cannot afford policies that take the state further backwards,” the group statement said.

“The Victorian government said it wants a genuine partnership with business, focused on restoring confidence and attracting investment, and scrapping this bill would demonstrate this commitment.”

In response, Victorian premier Ben Carroll said he would delay the WFH reform to July 1 next year.

It was to start on September 1 this year.

The premier said that this pause was to allow further consultation over the proposed bill.This is the second time the WFH bill has been roundly criticised by key Victorian and Australian industry bodies.

In March, the VACC was successful in countering a proposal by the then Victorian premier – Jacinta Allan – and delayed the bill for 10 months.

In response to the latest government announcement, VACC CEO Peter Jones said: “Delaying this legislation is a sensible first step, and it shows the government is prepared to listen to the concerns our members have raised.

“Our position has not changed. We support genuine workplace flexibility arrangements agreed between employers and employees at the workplace level — not those imposed through rushed and inappropriate legislation,” he said.

“A mechanic cannot repair a vehicle from home, and many dealership parts, towing and customer-facing roles rely on people being on site.

“Flexible arrangements already exist across Victorian workplaces without this bill. Our concern has always been the added cost, administration and legal uncertainty passage of the bill would create for businesses already managing rising operational costs, skills shortages and growing regulatory burden.

“We strongly encourage the premier to engage meaningfully with industry to achieve a workable outcome for both our members and the broader Victorian community.”

The new Carroll government has copied the Allan plan with the same July 1, 2027 start date.

At the time, the VACC’s CEO said Ms Allan’s plan was “a slap in the face” to every automotive business owner in the state.

Mr Jones said in March that for the automotive industry “where the overwhelming majority of roles require physical presence in workshops, showrooms, and parts counters, this decision is both impractical and potentially devastating”.

“We warned the government in the strongest possible terms that this legislation would be unworkable for our industry,” he added.

“We submitted a comprehensive industry submission. We surveyed our members. And it’s now clear that every word of it was ignored. 

“The government claims to have consulted extensively – but not with us, and not with the industries that will be most affected.”

Now the same proposal is back with a different premier’s signature on the bottom of the page.

VACC CEO Peter Jones

The latest incarnation of the bill, which would give employees the right to work from home for two days a week, has already passed through the state’s lower house.

This week one of the groups, the Victorian Automotive Chamber of Commerce (VACC), said that it “has been clear from the outset that this legislation fails to recognise the practical realities facing many Victorian businesses — particularly those in the automotive industry”.

VACC CEO Peter Jones said workshops, dealerships, and many other automotive workplaces rely on people being physically present to service vehicles, use specialised equipment, support customers, and train the next generation of skilled workers.

“Flexible working arrangements already exist and can be agreed between employers and employees where they are practical and appropriate,” he said.

“What businesses do not need is another layer of regulation, administration, and uncertainty.

“At a time when Victorian businesses are already managing rising costs, workforce shortages, and increasing regulatory obligations, the focus should be on creating the conditions for businesses to invest, employ, and grow.”

In its submission, the group said that the bill was “a solution trying to find a problem that does not exist”.

“Flexible work is already widely available across Victorian workplaces,” it said.

“Employers and employees already negotiate flexible arrangements that reflect the needs of individuals, their roles and their workplaces.

“This is significant legislation with far-reaching economic consequences, yet there has been inadequate consultation and limited opportunity for proper public scrutiny.”

The statement to the Victorian government said that investment was vital to Victoria because it creates jobs and higher wages. 

“When Victorians have secure jobs and confidence in the economy, that flows through to retailers, hospitality businesses and communities across the state,” it continued.

“The government should be focused on attracting investment, creating jobs, strengthening household confidence, and lifting living standards – not passing legislation that risks pushing investment and jobs out of Victoria.”

The VACC said it would continue to stand alongside Victoria’s business community and advocate strongly for its members.

“Our message to the Victorian government remains clear: scrap the bill and work with business on the reforms Victoria needs,” added Mr Jones.

The group includes the Business Council of Australia, the Australian Industry Group, the small business organisations of Australia, and the Australian Chamber of Commerce and Industry.