Victorian Premier Ben Carroll’s controversial work-from-home legislation is now unlikely to pass before the November state election after the government suffered a narrow defeat in the upper house.
The Legislative Council voted 18 to 17 on Thursday to refer the bill to a parliamentary committee for further scrutiny, effectively pushing debate on the proposed laws beyond the current parliamentary term.
The motion was moved by Shooters, Fishers and Farmers MP Jeff Bourman, who argued the legislation required greater examination because of concerns from employer groups about additional costs, red tape and restrictions on workplace flexibility.
“There are a lot of employer associations that are concerned that the extra burden and extra problems that this may cause will make it harder for businesses to flourish and even harder to start,” Mr Bourman said before the vote.
“There’s a lot of extra bureaucracy. A lot of extra time and effort … and businesses are nervous. We’re still coming out of the COVID period.”
Mr Bourman said the referral was not intended to permanently block the legislation, noting the government could recall parliament for an additional sitting if it wanted the bill reconsidered before the election.
However, Mr Carroll later indicated he was unlikely to do so.
The Premier said when asked whether the government would bring MPs back for an additional sitting period,
“I’ve already added one week to the parliamentary sitting”
The result represents a major setback for Labor, which had expected the bill to clear the upper house after making a series of concessions in response to strong opposition from business groups.
The legislation was originally announced by former premier Jacinta Allan at Labor’s state conference in 2025 as part of a plan to give eligible Victorian workers a legal right to work from home.
Ms Allan had pledged to have the protections in place before the 2026 state election.
The proposal quickly became politically contentious, with business groups warning the laws could create new compliance costs, reduce flexibility for employers and discourage investment.
Legal experts also questioned how the state-based proposal would interact with existing federal workplace laws.
After becoming premier, Mr Carroll sought to reset Labor’s relationship with the business community and delayed the planned commencement of the work-from-home laws by almost a year to allow further consultation.
The government had hoped those changes would be enough to secure parliamentary support.
Instead, the bill was referred to a committee that will examine its economic impact on Victoria, meaning it is now unlikely to return to the chamber before voters go to the polls in November.
The decisive vote was assisted by independent MP Adem Somyurek, the former Labor minister who returned to parliament after a lengthy absence and supported the referral.
Following the vote, Mr Carroll lashed out at Opposition Leader Jess Wilson and those who voted to delay the legislation.
“What we have seen tonight is anti-family [and] anti-worker,” he said.
The government has argued that formal work-from-home protections would give workers greater certainty and help families better manage caring responsibilities, commuting times and the cost of travelling to work.
Business groups, however, welcomed the upper house decision.
Property Council of Australia Victorian executive director Cath Evans described the referral as “the only correct choice”.
“The Victorian Parliament has seen sense,” she said.
“Instead of forcing rushed legislation through parliament, it has made the right call by sending the bill to a committee to properly examine its operation, implications and legal validity.”
Ms Evans said the government should instead focus on housing, jobs, investment and restoring business confidence.
“This decision should be the clearest signal: the Victorian government needs to be focused on the things that will actually drive growth — building more homes, creating jobs, attracting investment and restoring confidence in the state.”
Business Council of Australia chief executive Bran Black went further, urging Labor to abandon the policy entirely before the election.
“This referral should be the final nail in the coffin for this economy-wrecking legislation,” Mr Black said.
“The bill is not needed, it hurts jobs and adds costs to businesses at the worst time.”
The Victorian Greens criticised Labor from the opposite direction, accusing the government of failing to deliver on its promise to workers.
Greens leader Ellen Sandell called on Mr Carroll to recall parliament and push ahead with the laws.
“Workers were promised a right to work from home. Labor delayed it, gutted it and then completely botched getting it through Parliament,” Ms Sandell said.
“Labor had the opportunity to pass a bill, and through sheer political incompetence and kowtowing to big corporations, they’ve now left workers with nothing.”
The defeat leaves work-from-home arrangements set to become another major election issue, with Labor likely to campaign on its promise to legislate protections while the opposition and business groups argue the policy would impose unnecessary burdens on employers.
The political stakes are particularly high for Mr Carroll, who has made rebuilding Labor’s relationship with the business sector one of his priorities since taking over as premier.
The referral gives the government an opportunity to argue the policy needs further consultation, but it also means one of Labor’s most prominent workplace promises is effectively on hold until after the election.
Unless parliament is recalled, Victorian voters will now likely decide the future of the proposal at the ballot box in November.
Support our Journalism
No-nonsense journalism. No paywalls. Whether you’re in Australia, the UK, Canada, the USA, or India, you can support The Australia Today by taking a paid subscription via Patreon or donating via PayPal — and help keep honest, fearless journalism alive.
