Melbourne has become Australia’s remote work capital, with nearly two-thirds of employees working from home at least once a week — the highest rate among all major cities.
The findings, released in the 2025 Australian Digital Inclusion Index, show that 64.6 per cent of Melbourne workers regularly log in from home. That’s about seven percentage points higher than in Sydney and Brisbane. In regional Victoria, nearly half of all workers (47 per cent) also reported working remotely. The lowest rate among capital cities was recorded in Canberra, at just 41.1 per cent.
The report comes as the Victorian government advances plans to enshrine the right to work from home for at least two days a week where the nature of employment allows. The proposed reform, however, has drawn criticism from business groups and city leaders who argue it could hurt productivity and slow Melbourne’s post-pandemic recovery.
Victorian Chamber of Commerce and Industry chief executive Sally Curtain said most businesses already provide flexibility without needing new laws. “There is no problem that needs fixing. In other words: we’ve got this,” she said.
Melbourne City Council, led by Labor-aligned Lord Mayor Nick Reece, has also voiced opposition, saying the state should instead encourage more workers back into the city centre to boost local businesses and fill empty office towers. Councillor Rafael Camillo noted that workplace policies “are not one size fits all”.
The index also revealed significant changes in Australia’s digital habits. Almost half of Australians have recently used generative AI tools, with usage particularly high among students (79 per cent) and people aged 18 to 34 (60 per cent).
Professor Julian Thomas from RMIT University, a chief investigator of the study, said AI had the potential to improve access to information and opportunity, but warned that fairness and inclusion must remain central. “People with lower digital skills may be less likely to benefit from AI, while being more exposed to risks like scams, misinformation, and privacy breaches,” he said.
Despite ongoing digital divides, the report found that Australians’ confidence in using technology has improved markedly, rising 8.7 percentage points to 73.6 per cent in just two years — with the strongest gains among those aged over 75.
