Abstract: Information and Communication Technology (ICT) has introduced the possibility for change in urban spatial structure. The new applications of ICT for citizens include electronic services which can have separate impacts on such change. However, according to current literature one of the most influential forces for this transformation is the ability to telework. During recent decades, urban spatial change has come with the emergence of different types of “teleworking environments”. These teleworking environments vary regarding the different life/work opportunities and psycho-social situations which provide for teleworkers. This calls for better understanding of the functional roles each teleworking environment can have in the urban context, which is a gap in teleworking literature. Accordingly, the present paper aims to highlight the need for differentiating between teleworking environments in Australian urban planning. In order to do so, the paper begins with a review of the concept of teleworking and current international trends. It overviews the typology of teleworking environments, and introduces existing experiences in Australia. The paper then explains the psychosocial differences between teleworking environments and concludes with a call for deeper understanding and consideration of psychological frameworks.