The AI-Accelerated Exit: How Victoria’s Work From Home Laws Reshape Local Employment
Jamal Khan, Managing Partner, Amrop Carmichael Fisher
As Victoria’s work from home laws take effect on 1 September, a broader shift is emerging for the Victorian workforce. For many SMEs, the choice is no longer simply between the office and the spare bedroom. Policies designed to expand workplace flexibility may also accelerate structural changes already underway in the labour market. The result is a more fundamental discussion about how work will be organised in the years ahead. It also opens a broader discussion about the future of work in Australia and what flexible work in Victoria will mean for employers, employees and local economies.
For business leaders, the challenge is not simply adapting to policy change, but understanding how technology, talent and economics are reshaping the structure of work itself.
The Automation Ultimatum
Workplace policy is now colliding with a larger structural shift. For many small business owners, the debate is both ideological and practical. If work can be done remotely two days a week, business leaders will inevitably reassess what needs to be done locally, what can be digitised and what may no longer need to be tied to a high cost local workforce.
If It’s Remote, It’s Potentially Replaceable
Industry analysts note that defining work as “reasonably performed from home” will highlight which functions are most suited to automation, AI integration or global delivery models. For some businesses this creates opportunity.
For others, it introduces uncertainty about what work will look like in the years ahead and the economic and social consequences that may follow.
The Productivity Question
With Victorian businesses already facing ongoing viability challenges, AI and global talent models are no longer viewed purely as innovation initiatives. Many SMEs now see them as practical levers for navigating operational complexity and managing costs. Digital tools allow organisations to redesign processes and access specialised capability beyond local markets. This is no longer only an operational issue. It is becoming part of a much larger conversation about the future of work in Australia and how businesses structure capability for long term competitiveness.
The Cost of Compliance
Entry-level administrative and workflow roles are already being automated at speed. Recent data suggests around 80 per cent of Australian SMEs are adopting AI tools to streamline workloads. Changes to workplace regulation may further accelerate that shift.
Work From Home, Return to Office and the Local Economy
As debates around return to office in Victoria continue, the conversation extends beyond workplace flexibility and into the broader shape of Melbourne’s business ecosystem.
Some observers suggest the city could gradually evolve into a more segmented workforce. On one side are knowledge-based roles that can operate remotely with relative ease. On the other are sectors built around physical presence such as hospitality, retail, manufacturing and local services. It also raises important questions around remote work talent retention, particularly as organisations try to balance flexibility, development opportunities and cultural connection across different types of roles.
For many small business owners, reduced office activity has already affected the economic vitality of central business districts. Balancing workplace flexibility with vibrant commercial centres remains an ongoing policy and business challenge.
As one Melbourne hospitality operator recently noted, many local businesses are navigating a difficult environment shaped by rising costs, shifting workforce expectations and evolving economic conditions.
Ultimately, the issue is not simply where work happens. It is how organisations design work for long-term competitiveness.
The Leadership Response
Regardless of the policy outcome, the broader trend is clear. Advances in AI, digital collaboration and global talent pools are reshaping how work is organised. This places greater emphasis on hybrid work leadership, especially for organisations trying to maintain productivity, accountability and cohesion across dispersed teams.
For CEOs and boards, the conversation now extends beyond where employees sit. It is about how organisations design work, deploy technology and build sustainable talent strategies that support both performance and culture.
Leaders must balance flexibility with productivity, maintain the social cohesion that comes from human interaction and ensure organisational structures keep pace with an increasingly digital and globally connected economy.
Key Takeaways
What could Victoria’s work from home laws accelerate?
They could accelerate structural changes already underway in the labour market, particularly in roles that are more easily automated, digitised or delivered through global talent models.
Why does this matter for SMEs?
For many SMEs, AI and global talent models are no longer viewed purely as innovation initiatives. They are increasingly being considered as practical responses to cost pressure, operational complexity and changing workforce expectations.
What is the leadership challenge?
For CEOs and boards, the challenge is no longer simply where work happens. It is how organisations design work, deploy technology with intention and build talent strategies that sustain performance, culture and long-term competitiveness. It is also a test of how organisations approach flexible work in Victoria while responding to broader shifts in the future of work in Australia.
Photo by Ales Nesetril on Unsplash
Contact Jamal Khan
