In a report, the Productivity Commission said the move to large numbers of employees working from home could increase the country's productivity levels.
While fewer than eight per cent of Australians were working from home before the coronavirus outbreak, that number has since increased to 40 per cent.
Commission chairman Michael Brennan said the move to larger numbers of people working from home would be the biggest shift in employment in decades.
“It is inevitable that more Australians will work from home,” he said.
“The forced experiment of COVID-19 has greatly accelerated take-up of technology, including that which assists working-from-home opportunities.”
The report said governments should support the transition to remote work for more employees as jurisdictions emerged from lockdown.
Three-quarters of employees surveyed said they considered themselves as more productive working from home compared to being in the office.
“Working from home won't suit everyone or every business, but for many employees, working from home arrangements will be a factor in deciding which job to take,” Mr Brennan said.
“Some employees have indicated they would be prepared to take less pay in return for the ability to work from home.”
Despite the report mentioning that working remotely reduced levels of physical activity, the commission said overall, working from home represented a positive gain to society.