Atlassian defies Victoria criticism with Melbourne expansion

“In tech, you go where the talent is. Melbourne and Seattle are the fastest growing regions of the two Atlas regions in the world,” Cannon-Brookes said. “That’s why we’re investing in growing these areas. We’re very thoughtful about talent, and that’s more important to us than anything else.”

Prime Minister Jacinta Allan attaches great importance to this appetite of the technology sector. in it State of the State Addressing the Australian Economic Development Committee on Thursday, he announced plans to make Victoria the country’s data center hub; with a pipeline that could be worth $25 billion in capital spending, according to government estimates.

The government will spend $5.5 million on a sustainable data center action plan to determine where facilities should be located and $8.1 million on “AI career transformation” to retrain workers displaced by technology.

While Allan said AI advances could add $30 billion to gross state product over the next decade, he acknowledged there was a “delicate balancing act” to protect affected workers.

But tensions remain between the government and business groups over workplace policy. Allan told the CEDA luncheon that he would advance legislation to enshrine working from home as a legal right, despite opposition from some businesses.

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“I listened to your opinions. I respect them. I did not change my mind,” he said. “And I think in the years to come these businesses will change their situation.”

Cannon-Brookes, whose company pioneered remote work through its “Team Anywhere” policy, was not keen on this approach.

“I think any government mandating work from home would be a strange thing. Any government mandating work from the office would be equally strange,” he said. “I think it’s probably best for businesses to make choices.”

Nearly a quarter of Atlassian’s Victorian workforce now comes to the office at least occasionally, and the new 1,848sq m Melbourne space is proving popular. Daily occupancy is around 75 percent on average, and this rate approaches 100 percent in the first weeks.

Rivals’ abandonment of flexible working has only helped Atlassian’s recruitment, the executive said.

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“In a purely selfish way, back-to-work mandates are good for us,” he said. “We would like everyone else to do this but us.”

But he acknowledged that remote working isn’t right for every business. “I totally understand why it’s really hard to work from home if you’re a 10-person startup. You can’t create any culture,” he said.

“It is very important for a business owner, leadership team, management, etc. to choose what will work for them.”

Atlassian’s investment in Melbourne remains modest compared to its flagship project: a 40-storey, $1.4 billion headquarters under construction at Sydney Tech Central and scheduled to open in 2026. Could Victoria attract similar investment?

Cannon-Brookes said it was “entirely possible” but noted the Sydney project was a 15-year journey. And Melbourne’s tech scene lacks the density to make such hubs work.

“All my friends who own companies here seem to all take taxis and go somewhere,” he said. “They don’t look very close to each other.”