Deputy Premier Ben Carroll has effectively ruled out mounting a leadership challenge against Premier Jacinta Allan, reducing the likelihood of a spill in the coming days amid ongoing unrest within the Victorian Labor Party. Carroll’s public commitment on Monday not to seek the top job followed speculation of factional manoeuvring and calls from some party members for a change in leadership.

At a joint press conference staged by Allan’s office, Carroll was repeatedly asked about his leadership ambitions. He emphasized contentment with his current role, stating, “We have a Premier and she is working harder than anyone every day.” He further clarified his position by rejecting the possibility of challenging Allan at a caucus meeting scheduled for Tuesday and declined requests to ask her to step aside. Carroll notably affirmed to Allan in person that he would not contest her leadership.

Sources within the party suggested that Carroll might be awaiting a coordinated message from both Right and Left faction MPs indicating that Allan’s leadership is untenable, rather than directly initiating a challenge himself. Nonetheless, a segment of the Labor caucus continues to push for leadership change, perceiving this week as the optimal moment before parliament adjourns for six weeks and the state election approaches in less than six months. Others believe a challenge could still arise in late July or early August if the party’s polling figures fail to improve.

Premier Allan, for her part, rejected any suggestion she might resign, stating her focus remains on governing and confronting political opponents. She pointed to the rise of One Nation as a significant factor disrupting the political landscape, accusing the Liberal and National parties of being unable to govern without One Nation’s support.

In a strategic move to refocus public attention, Allan announced that her government’s landmark work-from-home legislation will take effect on September 1. The new law enshrines the right for Victorian workers who can perform their duties remotely to work from home two days per week, including casual and part-time employees. The legislation will amend the state’s Equal Opportunity Act to protect this right, marking a significant shift in workplace regulation.

While proponents such as Industrial Relations Minister Jaclyn Symes have hailed the policy as beneficial for productivity, economic growth, and workforce participation—particularly aiding families and parents—the plan has drawn criticism from business groups and legal experts. Opponents argue the law is economically risky, difficult to implement, and potentially beyond Victoria’s legislative authority, given industrial relations powers are largely controlled by the federal government since the 1990s.

The legislation includes provisions for guidance on pro-rata entitlements and delays its application to small businesses until July 1, 2027, reflecting concerns about its impact on this sector. Most casual roles in Victoria involve on-site work, such as retail and healthcare, meaning the law’s scope will primarily affect workers in roles adapted to remote work.

As internal tensions simmer within the Victorian Labor Party, Allan’s public stance and the forthcoming legislation signal her intent to maintain her leadership and advance her government’s agenda despite factional unrest and external opposition.