Survey shows rising concern over costs, hiring and investment
Victorian businesses are warning that proposed work-from-home laws could send more jobs and investment across state borders. New Victorian Chamber of Commerce and Industry research found 47% of businesses are now more likely to start, expand or invest outside Victoria if the legislation goes ahead, while 42% are more likely to hire staff interstate.
Already, flexible work is common across the state. According to the Chamber survey, 77% of businesses already let employees work from home. Even so, 80% expect the proposed laws to hurt their operations.
Business sentiment has worsened since the State Government announced the policy in September 2025. When the Victorian Chamber and Committee for Melbourne surveyed employers in October 2025, 56% said Victoria was harder to operate in than other states. That figure has since climbed to 72%.
Earlier research found more than one in three businesses would look to expand and hire outside Victoria if the laws were introduced. Now, the latest poll shows concerns have deepened on investment, recruitment and daily compliance.
Costs and hiring risks
Costs are a major concern. The survey found 92% of businesses expect extra expenses from the legislation, including legal advice, policy development, technology, equipment, insurance, cyber security and compliance. Among businesses that estimated an annual figure, 25% put the added cost at $50,000 or more.
Employers also flagged risks to hiring in Victoria. The research found 44% would be less likely to recruit new staff based in the state. Another 47% said the proposal would make them less willing to employ younger or less experienced workers who may need more training, supervision or mentoring.
Meanwhile, 72% of businesses expect they would have to offer extra work-from-home arrangements under the proposed rules. The Victorian Chamber has argued from the outset that flexibility is already widespread and that a one-size-fits-all legal right would create costs, complexity and disputes.
Victorian Chamber chief executive Sally Curtain said the results should warn the Government because businesses support flexibility but oppose laws that add cost, uncertainty and complexity.
With the Bill now before Parliament, the Chamber is pushing for major amendments. Its ten-point plan calls for a maximum two-day entitlement that cannot be stacked with existing arrangements, broader reasonable business grounds, clearer employer obligations and cost responsibilities, stronger workplace health and safety rules, better protections for small business, delayed commencement for smaller employers and steps to reduce unnecessary litigation.
