Accounting For The Cost Of Going To Work

Time spent in peak hour traffic, unreliable (and crowded) public transport, the cost of petrol and the ever-elusive quest for a parking spot — the daily commute has long been synonymous with inconvenience and expense.

But as companies urge their employees to reclaim their desks, a fresh wave of calculations has entered the scene and many are now meticulously tallying up the cost of heading into the office compared with working from home.

“Getting back into the office can be great for productivity but it comes at a cost to workers,” says Angus Kidman, money expert at comparison website Finder.

“Whether it’s paying for parking or fares to catch public transport, commuting into the office can be a hefty cost for consumers travelling into the office every day.

“But while remote work eliminates the need for commuting and transport costs, there are still plenty of other costs to be considered working from home.”

It’s no secret that patterns of work have changed drastically since the early days of 2020.

Where once we were content with the daily trip into the office — complete with full corporate wardrobe, coffees, lunch and drinks after work — the pandemic highlighted the ease with which many of us were able to work from home. Fast forward a few years and hybrid work arrangements are now more commonplace. However, in recent months we’ve seen many larger companies beginning to put their foot down on flexible working arrangements.

The truth is that thanks to the rising cost of living and those unrelenting interest rates many Australians are now paying more regardless of where they choose to work. But it seems a conservative estimate of around $10,000 per year to go to the office is the norm when you consider travel, food and your work wardrobe.

Research from Finder reveals consumers spend $122 per week on the commute which amounts to $5,856 over a 48-week work year.

Once we’re at work the spending doesn’t stop, with data indicating Australian workers spend around $1548 a year in their lunch hour — and that doesn’t include your morning coffee.

Commutes and coffees aside, the other big expense with working from the office is undoubtedly the corporate wardrobe although, according to experts, these days it’s more acceptable to be a little less corporate than we may have been used to pre-pandemic.

“Even prior to COVID we were witnessing a more relaxed workplace dress code and now that people have had a taste of dressing more casually, we won’t be in a rush to get back to the corporate that we used to know,” says stylist and corporate image consultant Caitlin Stewart.

“Designers have amended their offerings to reflect greater comfort and versatility in their garments so when curated carefully additional comfort elements can be implemented and still look professional.”

Stewart says a corporate wardrobe update can cost anywhere between $3000-$5000.

She also says while most men are still opting for suits in a corporate environment, the days of office heels and a full face of makeup for women are definitely over.

“A woman can look exceptionally polished in professional, flat loafers and a light face of makeup or just a clean and fresh face.”

Naturally, the actual costs people incur in the office or at home will depend on their specific circumstance but for Simon Kuestenmacher, co-founder of The Demographics Group, the bottom line is clear.

“There’s no question working from home is a cheaper option for many employees — especially in the capital cities,” he says.

Corporate image consultant Caitlin Stewart says comfort dressing can still be professional for women as well as men.

“There’s no tolls, no public transport fees, cheaper lunch, and you can get away with a smaller work wardrobe. Of course, working from home can incur extra costs but these are minimal compared with what it costs to actually physically go into the office each day.”

Undoubtedly, the biggest out- of-pocket expense in the current economic climate when working from home is increased electricity usage and associated bills.

Data from Finder estimates the extra electricity used when working from home will add between $324 in summer and $340 in winter to the average quarterly electricity bill — or an average of around $110 per month.

“You can claim a portion of those costs through tax, but the rules around that are being tightened this year,” warns Kidman.

According to figures from the ATO, almost nine million Australians claim about $22 billion worth of work-related expenses, many relating to working from home.

Other costs to consider in an home office include furniture, equipment, and software. However, according to Kuestenmacher, companies will often foot part of that bill for employees.

Further, experts say the savings associated with working from home are not just financial.

“One of the drivers for people to continue working from home is the cost of lost time that many people experience because of long commutes,” says Dr Penelope Williams from QUT’s Business School and the Centre for Decent Work and Industry.

“For many, the extra time they get back by not travelling to and from another workplace, not only helps them achieve better work-life balance, but also increases their productivity.

“It’s important to consider the financial aspect just as much as the impact of social connections, career advancement, networking and development opportunities.”

That being said, Williams points out that there are physical and mental benefits and challenges for both office and WFH environments.

“It’s really dependent on the needs of the individual and the requirements of the workplace.”

Private-equity firm Paine Schwartz Partners is backing BERO, a nonalcoholic beer brand launched by British actor and “Spider-Man” star Tom Holland.

A person familiar with the transaction said it values New York-based BERO at more than $100 million and will help support the brand’s ambitious growth plans.

BERO co-founder and Chief Executive John Herman said the company aims to more than double its sales team and significantly expand distribution to roughly triple sales this year.

BERO, which Holland and Herman launched in late 2024, reached nearly $10 million in sales in its first year and expects sales to reach almost $30 million this year, said Herman, who previously served as president of C4 Energy brand drink maker Nutrabolt.

“We weren’t just looking for capital,” Herman said. “We were looking for great partners that could help us grow.”

Paine Schwartz is investing through BetterCo Holdings, a portfolio company in the firm’s sixth flagship fund that it formed late last year to hold non-control investments in better-for-you food and beverage businesses, Paine Schwartz CEO Kevin Schwartz said.

Ultimately, Schwartz said he expects BetterCo to hold five to 10 investments.

BERO, BetterCo’s third investment, falls within the firm’s typical growth investment range of $10 million to $25 million, he said.

Earlier BERO backers include leading talent agency William Morris Endeavor Entertainment and venture-capital firm Imaginary Ventures, which also participated in the latest investment.

“This first external raise is not just a milestone, but a validation of what’s been achieved in a single year,” said Logan Langberg, a partner at Imaginary Ventures.

When they started BERO, Holland and Herman tapped as brewmaster Grant Wood, a past Boston Beer executive who went on to found Revolver Brewing, now part of Tilray Brands.

The brand currently offers four types of beer, including two IPAs. Its products are sold at Target stores, on Amazon.com and at other retail locations, such as supermarket chains Sprouts Farmers Market and Wegmans Food Markets in the U.S. and Morrisons in the U.K. BERO is also available at a number of liquor stores and bars and restaurants.

The company also offers a $55 a year premium membership that offers such perks as free shipping and access to member-only products and limited-edition releases.

To help build the brand’s name, BERO has struck a series of partnerships, becoming the official nonalcoholic beer partner of luxury sports-car maker Aston Martin and fitness studio chain Barry’s.

Nonalcoholic beers, which generally contain less than 0.5% of alcohol by volume, have become increasingly popular and account for the biggest share of alcohol-free drink sales, according to the Beer Institute, a national trade association.

Sales of such drinks are growing at a more than 20% annual rate and were expected to exceed $1 billion in 2025, according to market-research firm NielsenIQ, citing so-called off-premise channel sales it tracks, such as sales at liquor stores and grocery stores. But the bulk of those sales come from the top five brands, such as Athletic Brewing, co-founded by a former trader at Steve Cohen’s hedge fund Point72 Asset Management, NielsenIQ said.

Alcohol-free drinks, the market-research firm said, have emerged as a lifestyle choice—one based not on quitting alcohol but expanding options, with most non-alcohol buyers also buying alcoholic drinks.

“There’s a pendular swing in behaviours that [is] happening right now when it comes to people’s relationship with alcohol,” Herman said.

Corrections & Amplifications undefined Nonalcoholic beer brand BERO offers its fans a premium membership for $55 a year. An earlier version of this article incorrectly said the membership costs $50. (Corrected on Jan. 20.)

Accounting For The Cost Of Going To Work

It’s the last piece in the puzzle as employers entice fiscally conscious staff to return to the office

Paine Schwartz joins BERO as a new investor as the year-old company seeks to triple sales.