COSBOA: Victorian WFH proposal adds unnecessary complexity for small business

The Council of Small Business Organisations Australia (COSBOA) has reiterated its opposition to the Victorian Government’s renewed push to legislate work-from-home (WFH) rights, warning the proposal would duplicate existing federal laws and impose additional compliance burdens on small businesses already under significant strain.

COSBOA CEO, Skye Cappuccio, said small business is not opposed to flexible work arrangements, including working from home. However, the Victorian proposal risks creating confusion, duplication and unnecessary red tape.

“Small business already operates under the federal Fair Work framework, which requires employers to genuinely consider reasonable requests for flexible work, including working from home.

“This proposal duplicates existing federal legislation, adds another layer of compliance, and creates further uncertainty for small business owners who are already spending almost a day each week on regulatory paperwork,” said Ms Cappuccio.

Reports suggest the Victorian plan would introduce a default entitlement to work from home in certain circumstances, potentially including a minimum number of days per week for eligible employees.

“A one-size-fits-all model simply does not reflect how small businesses operate.

“Many small businesses rely on in-person collaboration, supervision, mentoring and on-the-job training to build skills and maintain productivity. Turning work-from-home into a legally enforceable state-based entitlement, rather than a negotiated arrangement, risks undermining those dynamics,” said Ms Cappuccio.

COSBOA’s position is clear – the proposal would disproportionately affect small businesses, particularly those without in-house HR or legal teams to navigate complex new rules and dispute processes.

“In a small business, it is often the owner making these decisions personally. If there is a disagreement about what is ‘reasonable’, whether a role can be performed remotely, or how many days are appropriate, it is unclear how that would dispute would be resolved under a separate Victorian regime and who ultimately determines the outcome.

“That uncertainty alone creates risk, cost and hesitation for small employers.,” said Ms Cappuccio.

COSBOA first raised concerns in August 2025 about the Victorian Government’s rushed work-from-home proposal, warning against unnecessary duplication of the national workplace relations framework. Ms Cappuccio said COSBOA’s position remains unchanged.

“Small business supports genuine, negotiated flexibility. What we do not support is unnecessary duplication of federal law and the creation of a standalone state regime that adds confusion, compliance burden and cost,” she said.

“We urge the Victorian government to work within the national framework – designed to balance the needs of employers and employees – rather than create additional layers of regulation that disproportionately impact small businesses.”

-ENDS-

Notes to Editors:

Media contacts:

• Debbie Bradley, Group Account Director, Zadro | debbie@zadroagency.com.au | +61 420 761 189.

• Marlise Beasley, General Manager & Account Director, Zadro | marlise@zadroagency.com.au | +61 423 624 013

About Skye Cappuccio, CEO, COSBOA

Skye Cappuccio was appointed Chief Executive Officer of the Council of Small Business Organisations Australia (COSBOA) in February 2026. She brings extensive experience in stakeholder engagement and strategic advocacy, having worked across multiple peak professional and industry bodies to deliver practical reform outcomes. Skye is focused on ensuring small business voices are embedded in Australia’s economic and regulatory decision-making.

About COSBOA

Founded in 1977, and incorporated 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.

www.cosboa.org.au