Real cost of return to work mandates revealed

The shocking sum some Aussies are having to cough up because of return to office mandates has finally been revealed.

Many workers will be several thousands of dollars out of pocket if forced to return to the office full time, as cost of living pressures continue to rise.

According to research by International Workplace Group (IWG), commuters could save up to $5892 a year by switching to local co-working spaces or staying at home compared to travelling into a city centre office each day.

The jaw-dropping amount was calculated by analysing the average commuting costs of office workers – with those heading to work in Sydney CBD totalling $75.60 per day when factoring in public transport fares and local parking.

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Office workers who work locally two to three days a week can save thousands of dollars a year in transport costs. Picture: iStock

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It found a hybrid model of working, with two to three days a week working locally, can potentially save an average of $338.14 per month.

Seventy per cent of Australian office workers said hybrid working arrangements help them manage cost-of-living pressures, the IWG’s Australian Hybrid Workers Survey revealed.

Those commuting to Concord could save up to $3588 per year, while those who work in Lane Cove can keep an extra $3532.80 in their pockets yearly.

Balmain-based workers can save up to $2916 per year and those travelling to Parramatta can keep an additional $960 each year.

International Workplace Group CEO Mark Dixon said that, with rapid advancements in technology, work is “no longer confined” to a single location.

“Companies are empowering their teams to work where they are happiest and most effective, allowing employees to stay productive by working closer to home out of a local coworking space or office,” he said.

“This shift means employees no longer need to commute long distances daily but can instead benefit from the same or higher levels of productivity by working closer to home.

“As a result, company headquarters are evolving to become hubs of creativity, collaboration and socialising.”

According to research by International Workplace Group, commuters could save up to $5892 a year by switching to local co-working spaces or staying at home compared to travelling into a city centre office each day. Picture: IWG

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Data from the Regional Movers Index March 2025 quarter report found 64 per cent of people leaving capital cities are relocating to regional and suburban areas.

This is resulting in an increase in employees wanting remote and hybrid working options, as well as more demand for flexible office spaces outside of major city centres.

In a recent poll run by news.com.au, a whopping 58 per cent of the 6800 voters chose remote working as the best workplace change of the 21st century.

Recruitment specialist Roxanne Calder told news.com.au that the rise of flexible working is one of the many changes that has made work “more human” over the years.

She said working from home has “forever redefined the way we look at productivity”, challenging the myth that you can only perform well if you are sitting at your desk in an office.

She noted this has been a test of trust for organisations, forcing many to shift the way performance is measured, rather than relying on physical presence as a barometer for how much work a person is putting on.

“If done well, remote work can create workplaces that are not only more efficient but also more humane, valuing results and wellbeing together,” she said.

Originally published as Real cost of return to work mandates revealed