Earn
‘At best, short-sighted’: Industry expert hits back at working-from-home tax
Earn
‘At best, short-sighted’: Industry expert hits back at working-from-home tax
Following calls from Deutsche Bank to implement a working-from-home tax, an industry expert has slammed the proposal for creating a less inclusive working environment.
‘At best, short-sighted’: Industry expert hits back at working-from-home tax
Following calls from Deutsche Bank to implement a working-from-home tax, an industry expert has slammed the proposal for creating a less inclusive working environment.
A report commissioned by Deutsche Bank suggests that those who can remain working from home should pay 5 per cent tax each day they choose to work remotely.
The bank argues that it would leave the average employee no worse off due to saving money on commute, going to lunch and purchasing clothing, with the taxes being used to help lower-paid employees.
This is despite people working from home using their own electricity and other essentials when turning a home into an office.
Based on Australian gross average annual full-time salary of $48,360, an Australian who chooses to work from home would be slugged $2,418 a year for the privilege.
However, in an interview with nestegg, Employment Hero’s co-founder and CEO, Ben Thompson, refuted the working-from-home tax.
“Deutsche Bank’s call to tax remote workers is, at best, short-sighted, and at worst, a backwards step on the path to a more inclusive world at work,” Mr Thompson said.
“I cannot think of a worse time than now to threaten people’s chance at employment and, in turn, their livelihoods.”
The CEO pointed to research done by the International Monetary Fund which predicts the global economy will contract 3 per cent within the next year, and that the cumulative loss to the global GDP from 2020 to 2021 will be approximately $9 trillion.
“That’s more than the combined economies of Germany and Japan. Remote work guarantees a large number of people access to a job, and in a once-in-a-lifetime economic depression, that means invaluable security,” he explained.
Mr Thompson said the benefits of working from home also includes creating a more inclusive working environment.
“For some people with disabilities, remote work means a more comfortable day-to-day life, minimising the challenges associated with commuting, set hours and office spaces that are inherently discriminatory. It empowers them to choose a working environment that best suits their needs,” he said.
The CEO also pointed out how many Australians are forced to leave regional areas to work in the city, with working from home breaking down these barriers.
“People in regional towns no longer have to choose between their preferred way of life, and a successful career filled with opportunities – they can have both,” Mr Thompson said.
“Moreover, dispersed workforces mean more people will live and contribute to regional communities, redirecting wealth away from the big cities and into smaller towns that need economic stimulus.”
The economic benefits of working from home
The CEO said the benefits of working from home extend to the broader community.
“I did the maths, and it costs approximately $15,000 a year to employ a full-time worker in an office. Conversely, remote team members account for less than 20 per cent of that cost,” Mr Thompson said.
“Having less overhead expenses, namely inner-city office space leases, opens up a range of opportunities for businesses to redirect resources and funds into things like career development, upskilling opportunities, and wellbeing services like EAP. It gives employers the budget to offer their employees more benefits, in turn, creating a happier and more productive workforce.”
Another big economic benefit for employers is access to global talent pools. Remote work allows companies of all sizes to tap into top-tier talent without having to spend big money on relocation fees and the hiring costs associated with interviewing global prospects.
“For employees, the economic benefits are equally significant. Notably, team members are no longer constrained by geography, meaning they don’t have to pay the exorbitant living costs that come with living close to a CBD. Also, no commute means less money spent on petrol and vehicle maintenance – not to mention the environmental benefits of having fewer cars on the road,” Mr Thompson concluded.
About the author
About the author
Salary
Australia’s employment reaches new milestone
Australia has a new record number of people who are currently employed, new research figures have revealed. ...Read more
Salary
1 in 4 Aussies is now looking to change their job
With the economy beginning its recovery from the COVID-19 downturn, Australian workers are now actively seeking new employment, a survey has revealed. ...Read more
Salary
Aussie workers exceed expectations – but can it last?
Australian workers have adapted to changing working conditions caused by the COVID-19 pandemic, with the majority of bosses saying workers exceeded expectations. ...Read more
Salary
Do business better: The next normal needs older workers
The fallout from the global pandemic is reshaping the way in which people of all ages work. More people are working from home than ever before and many companies have had to adapt their business model...Read more
Salary
Budget must focus on imbalances, says ACTU
Unions are warning the Morrison government ahead of the budget, noting that Australia will judge them based on several key factors, including how they protect the working people and build greater re...Read more
Salary
Is it time to adopt a 4-day working week?
With Spain becoming one of the first countries to trial a four-day work week, calls have increased for Australia to trial similar model, which would see full-timers week reduced to 32 hours at the sa...Read more
Salary
How to survive and thrive in the gig economy
What do Uber drivers, Upworkers and Taskrabbiters have in common? They’re part of what’s often referred to as the “gig economy”, comprising millions of Aussie workers. ...Read more
Salary
Unions call for minimum wage increase as Australians get back to work
The unions are calling for the minimum wage to be increased to help aid the economic recovery from the COVID-19 downturn, as the latest job figures show Australians are getting back to work. ...Read more
Has the property market reached its peak; Biden’s climate summit and our sharemarket, and the upcoming budget
Listen now
Is the market overheating; should ETFs take your fancy, and what’s happening to the low and middle income tax offset?
Listen now
Home values up 30% (or are they); NFTs taking the world by storm, and why Keating thinks Aussies will be ‘poor’ in retirement
Listen now
Raging floods, the tech stock bubble and the ongoing SG debate
Listen now
Salary
Australia’s employment reaches new milestone
Australia has a new record number of people who are currently employed, new research figures have revealed. ...Read more
Salary
1 in 4 Aussies is now looking to change their job
With the economy beginning its recovery from the COVID-19 downturn, Australian workers are now actively seeking new employment, a survey has revealed. ...Read more
Salary
Aussie workers exceed expectations – but can it last?
Australian workers have adapted to changing working conditions caused by the COVID-19 pandemic, with the majority of bosses saying workers exceeded expectations. ...Read more
Salary
Do business better: The next normal needs older workers
The fallout from the global pandemic is reshaping the way in which people of all ages work. More people are working from home than ever before and many companies have had to adapt their business model...Read more
Salary
Budget must focus on imbalances, says ACTU
Unions are warning the Morrison government ahead of the budget, noting that Australia will judge them based on several key factors, including how they protect the working people and build greater re...Read more
Salary
Is it time to adopt a 4-day working week?
With Spain becoming one of the first countries to trial a four-day work week, calls have increased for Australia to trial similar model, which would see full-timers week reduced to 32 hours at the sa...Read more
Salary
How to survive and thrive in the gig economy
What do Uber drivers, Upworkers and Taskrabbiters have in common? They’re part of what’s often referred to as the “gig economy”, comprising millions of Aussie workers. ...Read more
Salary
Unions call for minimum wage increase as Australians get back to work
The unions are calling for the minimum wage to be increased to help aid the economic recovery from the COVID-19 downturn, as the latest job figures show Australians are getting back to work. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
