The Housing Industry Association (HIA) has called for a proposed Federal Bill to introduce a legislated right to work from home to be rejected, warning it would increase regulatory pressure on small building businesses already facing rising costs and labour shortages.

“Flexible work arrangements can play an important role in supporting workforce participation and the current laws already provide a clear and functioning framework for employers and employees to establish effective working from home arrangements,” HIA senior executive director of compliance and workplace relations Stuart Collins says.

He argues that mandating a broad right to work from home would create a one-size-fits-all obligation that fails to reflect the realities of industries such as residential construction.

“For housing construction, work-from-home mandates would be impractical as many roles in home building require work that must be done on-site. Supervising construction, managing trades and ensuring safety compliance simply can’t be done remotely,” Stuart says.

The HIA have also raised concerns that the proposed changes would increase compliance costs and disputes, particularly for small businesses, while creating additional work health and safety complications for employers who remain responsible for workplace safety, even when that workplace is an employee’s home.

“Mandating a broad right to work from home risks creating confusion, more disputes and extra compliance costs, particularly for small businesses,” Stuart.

The HIA’s position is supported by the Productivity Commission, which has also questioned the need for a legislated right to work from home. In its submission, the Commission noted that “Australia appears to have arrived at a sensible middle ground” and that “the need for a legislated right to work from home is not clear”.

Stuart says the Productivity Commission’s stance reinforces industry concerns about further regulation at a critical time for housing supply: “At a time when Australia faces a critical housing shortage, policy settings should support productivity and reduce regulatory imposts. Adding another layer of workplace regulation without clear evidence of a problem will only make it harder to focus on what matters most, building more homes for Australians.”