The “work from home” debate has officially moved out of the breakroom and into the halls of Parliament.

The Victorian Government recently confirmed that, starting September 1, 2026, employees who are based in Victoria and whose roles can reasonably be performed remotely will have a legal right to work from home two days a week.

Meanwhile, the Australian Federal Government is currently considering legislation to enshrine the right to work from home in the Fair Work Act 2009 (Cth).

Why the Change?

The Victorian government undertook public consultation on the right to work from home in 2025. The majority of submissions were in favour of establishing a formal right to work from home – rather than an ability to make a request.

The submissions identified benefits to workforce participation, the ability to save families money (an estimated $5,300 per year on average) including in travel costs, and reduce urban congestion, as relevant to making WFH more accessible.

While the legislation will be introduced in July 2026, it is likely to mirror the legislation currently before the Australian Senate, which provides a similar entitlement.

The Key Pillars of the Proposed Laws:

• The “Two-Day” Guarantee: If your job can be done from home, you’ll have a statutory right to do so for at least two days a week. Businesses will only be able to refuse requests to work from home two days a week if the employee is unable to perform the inherent requirements of their role from home.

• Universal Coverage: Unlike previous flexible work rules that often excluded small businesses, the legislation will eventually apply to all workplaces, regardless of size.

• Legal Teeth: Disputes won’t just end at a “no” from a manager. There are avenues for escalation through either the Victorian Equal Opportunity and Human Rights Commission (and then VCAT) or through the Fair Work Commission.

The Employer Perspective

While many businesses are concerned about productivity and culture, the legislation emphasizes “reasonableness.” Under the proposed amendments to the Fair Work Act 2009, employers can still deny requests if they can prove that physical presence is essential for the specific role. However, the burden of proof is shifting: “Because I said so” is no longer a valid business reason.

Looking Ahead

Whether you’re an employer or an employee, 2026 is the year to audit your digital infrastructure and communication styles. Remote work isn’t just a trend anymore—it’s likely to become a protected standard in at least one state before the end of the year.