COSBOA strongly opposes Victorian government’s rushed work from home proposal

Small business peak body condemns lack of consultation on proposed two-day remote work mandate

The Council of Small Business Organisations Australia (COSBOA) today expressed strong opposition to the Victorian Government's proposal to legislate a legal right for employees to work from home two days per week, condemning the government's failure to meaningfully consult with small business representatives before announcing this far-reaching policy.

The proposed legislation, scheduled for introduction to parliament in 2026, would apply to all public and private sector employees in Victoria who can reasonably perform their duties from home.

"This is yet another example of the Victorian Government steamrolling small business without proper consultation," said Matthew Addison, Chair of COSBOA. "Small businesses are the backbone of Victoria's economy, employing millions of Victorians, yet once again we've been completely sidelined in the development of workplace policy that will fundamentally impact how we operate."

Key concerns raised by COSBOA:

Inadequate consultation process: COSBOA and other small business peak bodies were not included in the initial policy development phase. This represents a serious failure in the government's consultation obligations to the small business community.

Disproportionate impact on small business: Unlike large corporations with extensive HR departments and flexible workplace policies, small businesses often operate with minimal administrative capacity and rely on collaborative, in-person work environments. The proposed legislation fails to account for the unique operational needs of small enterprises.

One-size-fits-all approach: The proposed legislation appears to ignore the diverse nature of Victorian businesses, from manufacturing and retail to hospitality and professional services. Many small businesses simply cannot accommodate remote work arrangements due to the nature of their operations, customer service requirements, or security considerations.

Economic uncertainty: With small businesses already facing significant challenges including rising costs, labour shortages, and economic uncertainty, this additional regulatory burden threatens to further strain business viability and job creation capacity.

Workplace flexibility already exists: Current Fair Work legislation already provides employees with the right to request flexible working arrangements, including working from home. Small businesses regularly accommodate these requests where operationally feasible. “Why is the Victorian Government seeking to add complexity to an arrangement that already exists under the Fair Work Act?” Mr Addison said.

COSBOA's position:

"While we support workplace flexibility where it makes business sense, mandating a blanket right to work from home two days per week is regulatory overreach that will harm small business competitiveness," Mr Addison continued. "This policy should be evaluated based on reliable evidence."

COSBOA calls on the Victorian Government to:

• Immediately engage in meaningful consultation with small business peak bodies before proceeding with any legislation

• Conduct a comprehensive regulatory impact assessment specifically examining effects on small and medium enterprises

• Consider exemptions or modified arrangements for small businesses with fewer than 50 FTE employees

• Acknowledge that existing federal workplace laws already provide adequate flexibility mechanisms

"Small businesses need certainty and support, not additional red tape imposed without consultation," Mr Addison stated. "We urge the Premier to step back from this rushed approach and engage properly with the small business community that creates jobs and drives economic growth across Victoria."

For more information, visit www.cosboa.org.au.

-ENDS-

For media enquiries or interviews, please contact Matthew Addison, Chair, COSBOA on chair@cosboa.org.au or call +61 (0) 421 553 613.

About COSBOA

Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.

Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.

For more information, visit www.cosboa.org.au