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
‘Dictator’ Qantas called out for forcing workers to choose between pay and a jab
Qantas has been accused of forcing workers to give up pay in order to get a vaccination, as the airline awaits the decision on whether they can legally offshore 2,500 jobs. ...Read more
Salary
Why a salary bump is not a now-or-never scenario
After a decade of low inflation and low wage growth, the bargaining power workers have to negotiate better conditions are starting to grow, but whether or not it leads to stronger wages remains to be ...Read more
Salary
Treasurer to reassess COVID payments as 1m Aussies are locked out, but JobKeeper is ruled out
With over 1 million Australians currently in lockdown without additional support, the Treasurer has conceded he will assess the current payment packages, but has blatantly refused to yield to pressur...Read more
Salary
Apply to me directly: ANZ boss
Following a call to get older Aussies back into the workforce, ANZ boss has gone a step further telling potential workers they should apply directly to him. ...Read more
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
The Olympic effect on property and equity investors; COVID-19 Disaster Payments and super
Listen now
Do lockdowns boost property prices? Are short-sellers levelling the playing field? Did you lodge your tax returns early?
Listen now
Will lockdowns halt the housing boom? Is the metaverse taking over? And the cons of lodging your tax returns early
Listen now
Are you being priced out of the market? Have you got the Tuesday blues? And are you ready for the upcoming super changes?
Listen now
Salary
‘Dictator’ Qantas called out for forcing workers to choose between pay and a jab
Qantas has been accused of forcing workers to give up pay in order to get a vaccination, as the airline awaits the decision on whether they can legally offshore 2,500 jobs. ...Read more
Salary
Why a salary bump is not a now-or-never scenario
After a decade of low inflation and low wage growth, the bargaining power workers have to negotiate better conditions are starting to grow, but whether or not it leads to stronger wages remains to be ...Read more
Salary
Treasurer to reassess COVID payments as 1m Aussies are locked out, but JobKeeper is ruled out
With over 1 million Australians currently in lockdown without additional support, the Treasurer has conceded he will assess the current payment packages, but has blatantly refused to yield to pressur...Read more
Salary
Apply to me directly: ANZ boss
Following a call to get older Aussies back into the workforce, ANZ boss has gone a step further telling potential workers they should apply directly to him. ...Read more
Salary
Qantas workers warned of stand-downs as unions rehash calls for ‘Aviation Keeper'
Workers at the national airline have been warned that the COVID-19 border closures could mean the airline will stand down employees again, as the unions call for government support. ...Read more
Salary
Struggling to find staff? Your inaction on social issues could be to blame
Australian employees are increasingly likely to call it quits with a company that has a poor record on social issues or mental health, new research has shown. ...Read more
Salary
Job losses rise as $155m in disaster payments is deposited into accounts
Australia’s decade-low unemployment rate is set to spike just as the country’s efforts were being celebrated, with key stakeholders questioning whether current government support goes far enough i...Read more
Salary
Time to get older Aussies back in the workforce: ANZ
A big four bank CEO is encouraging older Australians to return to the workforce, as the country continues to battle skill shortages led by the closure of international borders. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
