New Victorian Premier Ben Carroll has delayed the start of the state’s new work-from-home laws.

Carroll said – when the law passes Parliament – its provisions would now come into effect from July 1, 2027.

The WFH changes had been due to come into effect from September 1 this year for all businesses, except for ones with fewer than 15 employees, which had a start date set of July 1, 2027. 

Debate on the law was expected in the upper house on Thursday, which was delayed. 

Carroll said he still plans to pass the legislation before the November state election.

Despite delaying the policy, he said his door would remain open to the business community. 

‘I want to be very clear, I support work from home,’ Carroll said. ‘I support flexible work. It is good for working families.

‘Equally, though … everyone knows it’s a partnership between working families and the business community and the government.

‘That is why I’ve delayed these changes, and it’s why I’m going to continue to work with the business community and make sure this policy is right.’

He said he would also ‘study, listen and consult on any commonsense amendments’.  

The new laws would allow full-time, regular casual and part-time employees the legal right to work from the comfort of their own home for two days a week. 

Employers would have the right to deny working-from-home requests due to productivity, supervision, professional development, customer service and workplace safety reasons.

They would also have to pay any ‘reasonable costs’ needed for staff to do their job properly, whether it be essential equipment, software or secure access to company information systems. 

The legislation was widely criticised when announced by former Premier Jacinta Allan, with Property Council of Australia chief Mike Zorbas saying on Monday the bill would ‘bomb business back into the Stone Age’. 

Tim Piper, the head of the Australian Industry Group Victoria, was also against the legislation, branding it ‘unnecessary’ and ‘burdensome’.

‘The only reasonable conclusion is that this legislation is politically motivated ahead of the next election, rather than designed to strengthen the Victorian economy or encourage investment,’ Mr Piper said.

The Victorian Chamber of Commerce and Industry (VCCI) found that it would likely push 47 per cent of businesses to start, expand or invest in another state.

It also revealed that hiring decisions would also be affected, with 42 per cent of businesses more likely to look interstate for staff while 44 per cent would be less likely to hire employees located in Victoria.

Another 47 per cent of businesses said they would be hesitant to hire younger and less experienced workers needing more training and guidance, VCCI Chief Executive Sally Curtain deemed those findings to be a ‘wake-up call for the government’.

‘Last year, we warned these laws risked driving jobs and investment out of Victoria and the latest data shows those warnings are becoming more serious, not less,’ she said.

She also said that many employers already allowing their staff to work from home felt the changes would cause them financial and logistical issues, with close to 92 per cent also expecting extra costs, including legal advice, policy development, technology and equipment.

‘Businesses are not rejecting flexibility — 77 per cent already allow their employees to work from home,’ Ms Curtain said.

‘They are rejecting legislation that adds cost, complexity and uncertainty without solving a genuine problem.’