Businesses Warn of Economic Impact
The Victorian Chamber of Commerce and Industry (VCCI) has issued a strong warning against the Victorian Government’s workplace regulation plans, emphasizing the economic pressures faced by businesses. This caution comes amidst rising operating costs and the impacts of the Middle East fuel crisis.
According to VCCI, the government must conduct a full Legislative Impact Assessment before proceeding with the new workplace regulations. This assessment should include detailed modelling of compliance costs, productivity impacts, and the effects on small businesses.
New data from VCCI indicates that almost half of Victorian businesses report moderate operational disruption due to the ongoing Middle East fuel crisis, with 95 per cent experiencing additional costs ranging from 10 per cent to over 50 per cent.
Legislation and Business Strain
The proposed working from home laws are set to commence on 1 September 2026, with a delayed start for businesses with fewer than 15 employees until July 2027. Concerns about increased compliance burdens and operational complexities persist among businesses.
VCCI highlights that the legislation could create a two-tier workforce, particularly affecting industries unable to offer remote work, such as hospitality and construction, which face heightened economic challenges.
Amelia Bitsis, Acting Chief Executive of VCCI, stated, “Victorian businesses are already under extraordinary pressure. Fuel costs remain elevated, supply chain disruption continues, operating margins are tightening and confidence remains fragile.”
Bitsis further mentioned, “The legislation sends a negative signal to employers and investors, especially when many businesses are successfully implementing flexibility without mandated regulations.”
The VCCI pointed out that more than a third of Victorian workers, including about 60 per cent of professionals, regularly work from home, showing that businesses are adapting to operational needs effectively without legislative intervention.
VCCI survey results indicate that current economic conditions prompt businesses to adjust their delivery models and increase remote work where feasible. However, reports suggest jobs are increasingly being sent offshore, which raises further concerns about the proposed legislation’s unintended consequences.
Analysis of state economic data reveals that Victoria’s business investment growth has lagged behind other states, with growth mainly concentrated among non-employing and low-turnover businesses. The VCCI warns that the new regulations may exacerbate these trends.
