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ARTICLE · 01 APRIL 2025

Federal Budget 2025-26 – proposal to ban non-compete clauses

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Albanese commits to banning non-compete clauses in employment contracts for workers earning less than the high-income threshold.

AustraliaEmployment and HR
Megan Cant
Megan Cant
Julia Wyatt
Julia Wyatt
Annelise Harper
Annelise Harper
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On 25 March 2025, the federal government released its budget for the 2025/26 fiscal year. Following the release of its Issues Paper in April 2024, which considered the impact of non-competes and other employment restraints, it is clear that promoting job mobility in the labour market remains a focus for the government.

If re-elected, the government has committed to banning non-compete clauses in employment contracts for workers earning less than the high-income threshold (currently $175,000 per year). At present, around 3 million employment contracts in Australia contain non-compete clauses which restrict these workers from moving to work for a competitor or setting up a competing business within a certain geographical area for a set time period after ceasing employment with their former employer.

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This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.

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