Melbourne’s hospitality and events sector has received some breathing space following the Victorian Government’s decision to delay its proposed work-from-home laws until July 2027
New Premier Ben Carroll has postponed the legislation championed by former premier Jacinta Allan, which was due to mandate that eligible Victorian employees have a legal right to work from home two days a week from September 2026. Carroll said the delay would allow further consultation with business and consideration of amendments before the legislation proceeds.
The decision follows sustained opposition from business groups concerned that legislating WFH could further reduce activity in Melbourne’s CBD.
For hospitality operators, the issue is particularly significant. Melbourne Lord Mayor Nick Reece said in 2025 that average daily office attendance in the CBD remained at only around 61 per cent of pre-pandemic levels, putting pressure on the daytime economy. He has since acknowledged that the shift to working from home has caused “a lot of pain” for central-city businesses.
There are no official figures outlining exactly how much WFH has cost Melbourne hospitality. However, with office attendance still substantially below 2019 levels, the cumulative loss of weekday spending on coffees, lunches, after-work drinks and business entertaining is likely to run into hundreds of millions of dollars since COVID. With fewer people in the CBD opportunities for corporate functions, networking events and after-work gatherings have reduced.
Whether the legislation is ultimately implemented is uncertain. Carroll says he remains committed to WFH rights, but business groups including the Victorian Chamber, Business Council of Australia and Property Council are continuing to argue that the bill should be withdrawn entirely.