Victoria may be labeled as the least business-friendly state in Australia, but Atlassian co-founder Mike Cannon-Brookes insists this criticism did not influence his company’s decision to significantly expand its presence in Melbourne. The $60 billion software giant has grown its Victorian workforce from virtually none before the COVID-19 pandemic to 650 employees today, making Melbourne one of its fastest-growing global hubs alongside Seattle and Bangalore.
On Thursday, Atlassian inaugurated its first permanent office in Melbourne, located on Queen Street, marking a vote of confidence in a state that has faced persistent criticism for being inhospitable to business investment. “It’s a testament to the progress we’ve made in this part of the world,” Cannon-Brookes told the press. “Why is that? Because of the talent. There’s lots of talent here.”
Victoria’s Business Climate Under Scrutiny
The expansion comes despite the Business Council of Australia (BCA) ranking Victoria last among all states and territories for doing business in its Regulation Rumble 2025 report for the second consecutive year. The BCA cited uncompetitive payroll tax rates, the nation’s highest land tax for foreign owners, and onerous licensing requirements as key deterrents.
When asked about the perception that Victoria is a challenging place for investment, Cannon-Brookes was dismissive. “I’ll leave that for others to have a fight about,” he said. “From our point of view, I don’t think I have heard it as an issue, and I don’t think it’s been a major issue for us. That doesn’t mean it’s not for other people and other industries.”
Talent Acquisition Drives Expansion
For Atlassian, which develops collaboration tools used by hundreds of thousands of organizations worldwide, access to skilled workers is paramount. “In tech, you go to where the talent is. Melbourne and Seattle are growing the fastest of any two Atlassian regions in the world,” Cannon-Brookes noted. “That’s why we’re investing in growing those areas. We are very thoughtful about the talent, and that’s more important for us than anything else.”
Meanwhile, Premier Jacinta Allan is capitalizing on the tech sector’s appetite for growth. In her State of the State address to the Committee for Economic Development of Australia on Thursday, she revealed plans to transform Victoria into the country’s hub for data centers, with a projected pipeline worth $25 billion in capital expenditure.
Government Initiatives and Business Reactions
The government plans to invest $5.5 million in a sustainable data center action plan to identify optimal locations for facilities and $8.1 million in “AI career conversion” to retrain workers displaced by technology. Allan stated that AI advancements could add $30 billion to the gross state product over the next decade, while acknowledging the need for a “delicate balancing act” to protect affected workers.
However, tension persists between the government and business groups over workplace policy. Allan announced her intention to push forward with legislation to enshrine working from home as a legal right, despite opposition from some businesses. “I’ve listened to their views. I respect them. I haven’t changed my mind,” she said. “And in the years to come, I think those businesses will change theirs.”
Remote Work Policies and Industry Trends
Cannon-Brookes, whose company pioneered remote work through its “Team Anywhere” policy, expressed skepticism about government mandates on work locations. “I would think that any government mandating work from home seems like an odd thing. Any government mandating working from an office would equally be odd,” he commented. “I think it’s probably best if businesses choose.”
Currently, about a quarter of Atlassian’s Victorian workforce visits the office at least occasionally, and the new 1,848-square-meter Melbourne space is proving popular. Daily occupancy averages around 75 percent, with early weeks peaking close to 100 percent.
“In a purely selfish way, return-to-work mandates are good for us,” Cannon-Brookes said. “We’d like everyone to do them, except for us.”
He acknowledged that remote work isn’t suitable for every business. “I totally get why, if you’re a 10-person start-up, working from home is really hard. Can’t build any culture,” he said.
The move represents a significant endorsement of Melbourne’s potential as a tech hub, despite ongoing debates about Victoria’s business environment. As Atlassian continues to expand, the focus remains on leveraging local talent and adapting to industry trends, setting a precedent for other tech companies considering similar growth strategies.
