The COVID-19 pandemic altered the way we live and work in profound and lasting ways. One of the most significant changes has been the widespread adoption of remote work, which has not only reshaped daily routines but also delivered unexpected economic benefits. New figures show that Australian households saved more than $85 billion in transport-related costs since the shift to working from home, a windfall that has improved quality of life for many and changed the face of urban commuting.
As the pandemic prompted businesses to rethink traditional office models, the financial and personal benefits of remote work became increasingly clear. While some governments and corporations push for a return to the office, the data suggests that many Australians have already embraced the flexibility and savings that come with working from home. This new way of working has brought about a lasting transformation in the way people allocate their time and money, and its impact on the economy is undeniable.
The Financial Windfall: Saving on Transport Costs
One of the most striking revelations from the data is the massive savings households have accrued by avoiding daily commutes. Before the pandemic, Australians spent billions of dollars each year on public transport, vehicle maintenance, fuel, tolls, and parking. With remote work reducing the need for travel, those expenses plummeted during the lockdowns of 2020 and 2021.
In New South Wales (NSW), transport service spending fell from $14 billion in 2019 to just $5 billion in 2020 and $3.7 billion in 2021. While spending on public transport has recovered somewhat since the height of the pandemic, it remains below pre-pandemic levels. NSW households, predominantly in Sydney, have saved a staggering $39 billion since the pandemic began, largely due to reduced use of public transport and personal vehicles.
A similar trend is evident in Victoria, where transport service spending collapsed from $10.2 billion in 2019 to just $1.6 billion in 2021. Although spending has gradually recovered, it still lags behind pre-pandemic figures. Victorian households, especially in Melbourne, have saved over $34 billion by cutting back on commuting costs. Together, the savings across NSW, Victoria, Queensland, and Western Australia amount to over $85 billion, reflecting a dramatic shift in spending patterns.
Time is Money: The Value of Extra Hours
In addition to the financial savings, the shift to remote work has given Australians something even more valuable: time. Commuting in major cities like Sydney, Melbourne, and Brisbane used to consume hours of the average worker’s week. In Sydney alone, the Household, Income, and Labour Dynamics in Australia (HILDA) survey found that people spent almost six hours a week commuting. For those in Melbourne and Brisbane, it was around 5.5 hours, and in Perth, nearly five hours.
Working from home has allowed many Australians to reclaim this time, significantly improving their quality of life. The hours once spent stuck in traffic or on crowded trains have been redirected towards more meaningful activities—whether that’s spending time with family, pursuing hobbies, or simply enjoying a slower pace of life. This newfound flexibility has been particularly beneficial for part-time and low-income workers, who often bore the brunt of long and costly commutes.
The ability to work from home has not only freed up time but also reduced stress and increased productivity. Many workers report that they are more focused and efficient when working from home, without the distractions and time-wasting aspects of office life. Fewer meetings, less office politics, and the elimination of daily commutes have made remote work a welcome change for many.
The Impact on Urban Transport
The shift away from daily commuting has also had a profound effect on public transport systems and urban infrastructure. Before the pandemic, NSW residents took approximately 30 million train trips each month. During the height of the pandemic, this number dropped to just 5 million. Even as restrictions eased, train patronage in NSW and Victoria remains significantly below pre-COVID levels. In June 2023, for example, NSW train trips had only recovered to around 25 million, still well short of previous usage.
Similar trends are visible across the bus networks in both states. With fewer people commuting daily, public transport systems have seen a reduction in both ridership and revenue. This decline has prompted concerns about the long-term viability of public transport infrastructure, especially in major cities where investment in new transport projects had been ramping up prior to the pandemic.
However, while public transport ridership may have declined, the reduced strain on these systems has allowed for more efficient operations and less crowding during peak times. The environmental benefits of fewer cars on the road and reduced fuel consumption are also worth noting, as remote work has contributed to lower carbon emissions and less traffic congestion.
The Push to Return to the Office
Despite the clear benefits of remote work, there is growing pressure from some quarters to return employees to the office. Governments and corporations argue that having staff physically present in the office promotes collaboration, innovation, and team cohesion. This argument has been bolstered by concerns about the economic health of central business districts (CBDs), which have suffered from reduced foot traffic as more people work from home.
In cities like Sydney, local governments have called for public servants to return to the office, citing the need to support businesses that rely on the daily influx of office workers. However, this push has not been universally welcomed. Many workers, having experienced the benefits of remote work, are reluctant to return to the old ways of commuting and office life. For them, the trade-off between supporting CBD businesses and enjoying a better work-life balance is clear: the latter wins out.
Moreover, the pandemic has demonstrated that many tasks can be accomplished just as effectively—if not more so—from home. Virtual meetings, cloud-based collaboration tools, and advances in technology have made remote work not only feasible but often preferable for many businesses. As a result, the argument that employees must be in the office to be productive has lost much of its weight.
The Legal Battle for Flexible Work
The ongoing debate about the future of work has now moved into the legal arena. The Fair Work Commission is currently hearing a test case that could give clerical workers the right to work from home without needing to provide a reason. If successful, this case could set a precedent for other industries and potentially lead to a broader shift towards permanent flexible work arrangements.
The test case comes at a time when many businesses are grappling with how to balance the benefits of remote work with the need for in-person collaboration. For employees, the case represents a potential victory in the fight for more autonomy and control over their work environments. For employers, it raises important questions about how to manage teams effectively in a hybrid or fully remote work setting.
Regardless of the outcome, the case highlights a broader trend: workers now expect greater flexibility in how and where they work. The pandemic has upended traditional office norms, and there is little appetite among many employees to return to the rigid structures of the past. Instead, workers are looking for solutions that allow them to enjoy the best of both worlds—flexibility when needed, alongside opportunities for in-person collaboration.
The Economic Stimulus Effect
While the drop in transport spending has hurt sectors like public transport and vehicle-related services, the savings generated by remote work have not simply disappeared from the economy. Instead, much of this money has been redirected into other areas, providing an unexpected stimulus to parts of the economy. Households have used their savings to pay down debt, invest in home improvements, and increase spending on goods and services that enhance their quality of life.
Retailers, online service providers, and the tourism industry have all benefited from this shift in spending. Many Australians have chosen to invest in their homes, whether through renovations or the purchase of home office equipment, as they adapt to the new reality of working from home. Others have used their savings to take holidays, supporting the domestic tourism industry, which has been crucial in offsetting the losses caused by international travel restrictions.
This redistribution of spending has contributed to a more balanced economic recovery, with sectors that were previously overlooked—such as home goods and local tourism—gaining newfound importance. In this way, the work-from-home phenomenon has acted as a kind of economic stimulus, channeling money away from transport and into areas that directly improve the quality of life for many Australians.
A Permanent Shift?
As Australia continues to navigate the post-pandemic world, one question looms large: Is remote work here to stay? While some employers are eager to bring their teams back to the office, it is clear that the work-from-home model has become an integral part of modern life for many Australians. The benefits of time saved, money banked, and improved work-life balance are too significant to ignore.
While a full return to pre-pandemic commuting levels seems unlikely, a hybrid model—where workers split their time between home and the office—may become the new norm. This approach offers the flexibility that employees have come to value while still allowing for the in-person collaboration that businesses seek. The challenge for employers will be finding the right balance that meets the needs of both their teams and their bottom line.
The New Era of Work
The work-from-home revolution has transformed the way Australians live, work, and spend. With $85 billion saved in transport costs and countless hours freed up for more meaningful pursuits, remote work has delivered both financial and life benefits that few could have predicted at the start of the pandemic. As the country moves forward, the challenge will be in finding ways to sustain these benefits while adapting to the evolving demands of the modern workplace.
Whether through hybrid work models, legal protections for remote workers, or continued investments in technology, the future of work in Australia is being reshaped by the experiences of the past few years. What remains clear is that working from home is no longer just a temporary solution—it is a fundamental shift in how we approach work, one that promises to leave a lasting impact on both the economy and our daily lives.
