Since the pandemic, many Australians have split their week between home and the office. Here’s what the law says about working from home, what the evidence shows, and why some bosses want everyone back.
Before 2020, working from home was relatively uncommon. During COVID-19 lockdowns, millions of office workers had no choice.
When restrictions ended, many didn’t want to go back to the office full-time. Hybrid work, splitting the week between home and the office, has become common, especially in professional jobs.
Around a third or more of Australian workers regularly work from home, according to the Australian Bureau of Statistics.
What the law says
There’s no general legal right to work from home in Australia.
Under the Fair Work Act, some employees, including parents of school-age or younger children, carers, people with disability, those aged 55 or older, and people experiencing family and domestic violence, can request flexible working arrangements, including working from home, once they’ve worked for their employer for 12 months.
Since 2023, employers must respond in writing within 21 days, discuss the request with the employee, and can only refuse on reasonable business grounds. The Fair Work Commission can resolve disputes.
Some enterprise agreements and awards include working-from-home arrangements, and the Victorian Government has announced plans to give many workers in the state a legal right to work from home two days a week.
The productivity debate
Research on productivity is mixed.
Some studies have found working from home can increase productivity, as workers save time commuting and face fewer distractions. Others have found fully remote work can make it harder to collaborate, train junior staff and build relationships.
Many researchers have concluded that hybrid work has little effect on productivity overall, while making workers happier and more likely to stay in their jobs.
Back to the office
Some large employers, including banks and tech companies in Australia and overseas, have ordered staff back to the office for more days a week, arguing it improves collaboration, culture and mentoring.
Workers and unions argue working from home saves time and money, helps with caring responsibilities, and should be protected.
The bigger impact
Working from home has changed cities. Office occupancy in central business districts remains below pre-pandemic levels on some days, particularly Mondays and Fridays, hurting cafes and shops that rely on office workers.
It’s also affected property, with lower demand for some office buildings, and contributed to people moving further from city centres.
Tax
Workers who work from home can claim some costs, such as electricity and internet, as tax deductions, either by using a fixed rate per hour set by the Australian Taxation Office or by calculating actual costs. They must keep records of the hours they work from home.
